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Needful Provision, Inc. (NPI) Grant Application for CFDA 14.250, Rural Housing and Economic Development (RHED) Program (Applications due: 13 June 2007)
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The following application for $297,000.00 (for a 36-month RHED project) is made by
Needful Provision, Inc. (NPI), a 501 (c)(3) charity founded on 12 June 1995, dedicated
primarily to rural economic development and self-help housing for impoverished and/or
disadvantaged rural populations. (EIN: 85-0433956) (DUNS: 07-853-9710)
Contact: David A. Nuttle, President; NPI; P.O. Box 1595, Tahlequah, OK 74465 USA
Tel. 1-918-868-5710 Fax 1-918-868-5709 Email:
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Responses to Rating Factors are given in the last section of this NPI Proposal, the information presented before that section (and as follows) is a discussion of those factors, and other factors.
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Project Title: “Green, Self-Help Housing & Entrepreneurship for Rural
Areas (in the Ozarks)”
Project Summary: Needful Provision, Inc. (NPI), will undertake an $877,000.00 effort,
over a 36-month time period, to assist impoverished rural residents of the Ozarks ---to
include refugees, immigrants, minorities, and all rural poor. (Stakeholders, living in rural
“pockets” of less than 2,500 people each, are generally all very low-income.) Subject
assistance will be focused on teaching green self-help housing techniques and related
creative financing, as well as assorted, appropriate microenterprise development to
provide jobs and income while facilitating economic development for target areas (NE
Oklahoma, NW Arkansas, and SW Missouri). A $297,000.00 grant is hereby being
requested from HUD’s Office of Rural Housing & Economic Development. NPI is
providing $580,000.00 cash (from royalty income) as well as $1,470,000.00 of in-kind/
microenterprise technology support. (The total leveraging ratio is: 1 to 6.9.)
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Needs/ Target Population(s): Impoverished individuals/ families living in “pockets”
of extreme rural poverty, in areas of the Ozarks, having populations of less than 2,500
w/ shortages of safe housing --and a general lack of adequate income opportunities. Any
impoverished rural resident of NE Oklahoma, NW Arkansas, and SW Missouri may be
assisted, but a major focus will be on 364 Hmong (Asian) refugee/ immigrant families
generally having a known poverty rate five times the national average (NPI survey data
for 2006 – 2007, and USDA/ ERS income data for contract poultry growers).
NPI’s APPROACHES/ SOLUTIONS
1)Affordable/ Safe Housing Plans: NPI plans to construct a model self-help, low-
cost, “zero net-energy” home to be used in training subject population in constructing
their own homes with the help of creative financing ---as well as USDA/ RD’s Section
502 Mutual Self-Help Housing Loan Program. During construction of this model, a
series of training films will be made to teach related self-help construction, operations,
and maintenance techniques to subject populations (using the appropriate language for
sub-groups such as the Hmong). Subject model will teach and demonstrate: 1) Passive
solar design; 2) Alternative construction methods using straw bale, cordwood, & earth-
block; 3) Attached sunspaces; 4) Solar attics for heating & natural lighting; 5) Solar
hot water & cooking; 6) Alternative energy systems; 7) Energy efficient appliances;
8) Composting toilets; 9) Greywater recycling; 10) Home industries; and 11) Edible
landscaping and home gardens. NPI will work w/ individual stakeholders (project
participants) to facilitate creative financing options --- and provide technical support
during self-help construction of their own homes. (Subject model will also be used to
teach a series of microenterprise opportunities related to green construction industries.)
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2) Rural Economic Development Approach: Once completed, NPI will use the above
said self-help home model as a rural development/ microenterprise incubator to train and
coach subject stakeholders in an assortment of value-added products, farm income
diversification, and rural area microenterprises. NPI already has training models for
aquaculture, aquaponics, algalculture, mushrooms, sustainable crop and livestock
systems, and related innovative microenterprises. (Most stakeholders own small farms,
and are engaged in contract poultry farming to obtain a poverty-level income. The
impoverished rural areas where they live have very few employment opportunities for
supplemental off-farm income.) NPI’s staff ---with support from Langston University
extension specialists--- will provide training, distance education (via training DVDs),
business planning support, and technical assistance. Microloans (directly from NPI, or
from supporting local lenders such as ARVEST Bank) will be used to help start new
stakeholder enterprises. “Target area” economic development occurs by assisting
stakeholders with the objective of making them very successful rural area entrepreneurs.
NPI’s Relevant Organizational Experience: NPI and NPI’s staff have been engaged in
the development of self-help housing, as well as rural economic development, since
1995. The attached NEPW project, for India, provides a good example of how NPI uses
its innovative technologies for successful rural development. In addition, NPI is engaged
in the research, development, demonstration, and teaching of several unique technologies
---such as NPI’s U.S. Patent No. 5,121,708--- designed to support the above said efforts.
NPI’s founder, David A. Nuttle, has undertaken unique self-help housing/ rural economic
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development projects, worldwide, since 1959. NPI’s recent self-help housing efforts
were in Iraq and Indonesia. At present, NPI has rural economic development projects in
Kenya, India, and Mexico, as well as the U.S. (NPI’s QL2 project, for Kenya, is attached
as an example of NPI uses social enterprises to support rural development efforts.)
Qualifications of “Key” Staff: David A. Nuttle, NPI’s founder and President, has a
BS degree in agriculture, and nearly five decades of experience, worldwide, in self-help
housing and entrepreneurship projects for rural populations (as noted above). Nuttle also
has several inventions created to support these efforts. For two years, in Laos, and three
years, in the U.S., he has previously undertaken such work with Hmong refugees ---the
primary stakeholders in this project. Charles A. Gourd, Ph.D., is a specialist in unique
technology transfer to poor tribal and rural populations. Dr. Gourd has two years prior
work with Hmong refugees, and he has been a consultant to the United Nations on rural
development issues related to poor tribal and rural populations, worldwide. Karen M.
Lees, NPI’s Director of Training, has an MA degree in Special Education, and three
decades of quality experience in planning, writing, delivering, and managing training/
education programs for minority youth and adults. Ms. Lees has three years experience
in working with Hmong refugees in the Ozarks. Tou Vang, NPI’s Hmong-English
language interpreter/ translator, assists with instruction and helps to prepare training
DVDs. Mr. Vang is currently in the process of completing a business degree, but will
return to NPI before the start of subject project. (Resumes are attached.)
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N.B. Participating Langston University personnel, and their resumes, are shown with
Langston University’s letter approving support for subject project.
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Analysis of the Problem(s): Urban areas of the Ozarks are generally prosperous with
few people living at, or below, the poverty level. These urban areas also have many
job opportunities for persons with the qualifications desired. The above described target
group(s) live in somewhat isolated and impoverished rural “pockets” of the Ozarks. In
nearly all cases, these stakeholders (project participants) lack the education, valid work
experience, and English language skills needed to find work in said urban areas. Thus,
these populations attempt to make a living farming or contract poultry farming. In the
case of the Hmong, they generally paid far too much for farms purchased with support
from USDA/ FSA guaranteed farm loans. In order to justify the inflated farm purchase
prices, lender banks typically inflated farm income data to justify guaranteed farm loans
at the level requested. The Hmong accepted this inflated farm income data because they
had no prior farming experience or agricultural training ---and they therefore incorrectly
believed that they would have sufficient farm income to provide debt service and also pay
basic living expenses.
In actual fact, said Hmong farmers have a poverty level five times the national average.
Public records indicate that 17 of these Hmong farmers have declared some form of
bankruptcy ---and NPI’s survey of stakeholders indicates that another 21 of these Hmong
farmers are planning to declare bankruptcy. USDA/ FSA contributed to said problems by
not requiring the Hmong to have any farming experience (or agricultural training) before
buying farms. Ozark area bankers did not demand that Hmong borrowers have prior
farming experience because they were “fully” protected by FSA’s farm loan guarantees.
Other stakeholders, in subject rural area, have extreme financial problems because
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contract poultry farming seldom provides a living wage ---and most area farmers are so
engaged. According to USDA/ ERS data, over 70 percent of contract poultry farmers
make less than a poverty-level income for the areas in which they reside. Thus, most of
the subject stakeholders have needs similar to Hmong farmers in the Ozarks. NPI’s
proposed project will seek to provide affordable safe housing and improved job/ income
opportunities, for all low-income rural residents in the target area.
Work Plan & Timing: Initial efforts (during the first 8-month period) will be on the
planning, design, engineering, permitting, and construction of a green (zero net-energy),
self-help home model as described under paragraph 1 (one) ---of the above Approaches/
Solutions section. During this same period, stakeholders will be trained in self-help
home construction techniques and related creative financing, as well as creation of green
construction microenterprises (of various sorts). Training DVDs, for self-help housing
will also be made during this period. Planning for the funding and construction of 55
self-help, green homes shall be another activity featured during this time.
During the remaining 28-month period, NPI’s model green (ZNE) home becomes a rural
business/ microenterprise center to train 13 stakeholders per month in customized and
specific entrepreneurial subjects ----and rural microenterprise subjects---- as listed under
papragraph 2 (two) of the above Approaches/ Solutions section. Every trainee who has
the desire to do so, will be assisted in writing business and finance plans. NPI will then
provide technical support, and arrange for microloans to help start the stakeholder
business being planned. For those stakeholders with small farms, there is expected to be
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a focus on value-added enterprise development utilizing existing farm resources. Each of
the new business owners shall be assisted with expansion plans, and encouraged to
provide quality jobs for others in the community. NPI will assist with product
development and marketing to help assure the economic success of these new, rural area
entrepreneurs. As part of the training efforts, NPI shall provide a wide variety of DVDs
With relevant instructional materials to supplement classroom and OJT (on-the-job)
training. NPI will be using its 50-acre, Cherokee County, Oklahoma, training facility and
assorted entrepreneurial training models to assist in this instruction.
Training Details: The total training period is 36-months. There will be 364 total
trainees (stakeholders): 110 each from NE Oklahoma and SW Missouri, and 144 from
NW Arkansas (the Ozarks). All training will take place on NPI’s 50-acre instructional
and OJT (on-the-job) facility in Cherokee County, Oklahoma (in the target-area). The
training staff are as identified herein. Hmong trainees will be nominated by Hmong
America, Inc. (HAI), with final selection being made by NPI’s staff. Over 420 persons,
who are potential stakeholders, are expected to make an application for training. Once
selected, trainees may receive transportation and other essential support if they have no
means of providing this for themselves. Training shall take place in classrooms, via OJT,
by distance learning, in a rural enterprise incubator, and on their farms/ ranches, or in
their places of business (for technical coaching).
During the first 8-months, the 364 trainees will have on-the-job training for self-help
construction of homes. A total of 12 teams, with 30/ 31-men per team, will receive two
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4-hour blocks of instruction/ OJT shifts per week, in each aspect of construction for a
model green (zero net-energy) self-help home. (Instruction/ OJT occurs 16-hours a day,
for 6-days per week.) A total of 20-hours of training includes creative financing and 502
Mutual Self-Help Housing. At the end of the 8-month training period, these teams will
then start their own self-help green homes, and/or assist other Hmong families in self-
help construction of their own homes. The remaining 28-month period will be used to
instruct/ coach/ tutor 13 Hmong per month, and provide OJT, related to development of
entrepreneurship and microenterprise skills needed to become self-employed ---and
thereby provide a high level of income. (If trainees elect to work for others, rather than
to start their own enterprise, they will have sufficient new skills to earn a good income
from an hourly wage.) NPI will assist trainees in writing business plans, and in actually
starting new enterprises using microloans from NPI or cooperating local banks such as
ARVEST. In addition, NPI will provide direct technical support to help these trainees be
successful rural entrepreneurs. Some of the microenterprises to be started may include:
1)Aquaponics for organic food coops and school lunch programs; 2) Aquaculture
for local Asian supermarkets as well as the above outlets; 3) Algalculture for food/ feed
supplements, and algal-biodiesel; 4) Mushrooms for Asian supermarkets; 5) Humane,
outdoor, organic, livestock production/ products for local organic food coops; 6) Unique,
organic crops like Grain Amaranth; 7) Outdoor poultry production; 8) Cottage industrial
items; and 9) Various value-added products based on the above, or derived from current
production.
Management Plan: MBO (management-by-objective) techniques will be used, with an
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individual management effort for each aspect of the work plan. Benchmarks and specific
performance indicators will be used, and adjustments will be made to the work plan as
may be necessary. Accounting, audit, reporting, and other management techniques will
be as required by HUD. (Specific benchmarks and performance indicators are as detailed
in the attached Logic Model.)
HUD Policy Priorities Addressed: a) Provides increased home ownership for low-
income rural residents; b) Improves a U.S. rural community; c) Includes accessible
design features for homes; d) Facilitates HUD program implementation via a rural area
charity; e) Will help to end chronic, target-area homelessness within 10-years; f)
Removes some barriers to affordable housing; and g) Promotes energy efficiency and
the “Energy Star” effort.
Coordination w/ Others: NPI is a member of the Rural Refugee Initiative (RRI), and
coordinates all efforts to assist rural area refugees/ immigrants with that the many
members of that organization ---to include HHS/ ACF/ ORR (Office of Refugee Relief).
In addition, NPI coordinates with stakeholder groups like Hmong America, Inc., and
groups dedicated to assisting the rural poor; e.g. Rural Advancement Foundation Intl.
Soundness of Approach: Within the next few months, an estimated 38 stakeholder
families will have lost their homes along with their farms and income to foreclosures/
bankruptcies. The $297,000.00 grant requested is obviously inadequate to directly
provide the number of homes and new jobs needed for the known demand, not to even
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mention the anticipated demand. By teaching self-help housing techniques, along with
creative financing, subject families can provide their own safe, affordable housing. At
the same time, teaching of microenterprise development techniques will allow subject
populations to become self-employed, and provide their own income at above poverty
levels. Hmong farmers who have survived financially will be asked to provide two
acres of land to Hmong individuals/ families who have lost everything. Hmong customs
would encourage such mutual support efforts, and local zoning would not prevent these
land transfers. This land would then be used for the self-help housing and microenterprise
projects. The two-acres would be paid for in labor, or other support, for the donor
(typically another stakeholder farmer). In many cases, donors may want to become part
of new microenterprises so they can soon increase their own income. As a part of this
project, NPI will be creating innovative microlending programs to help microenterprises
start after planning is completed.
Output Measurements: The subject project will provide--- a) 1 (one) green, self-help,
model/ training home; b) 36 new, green, self-help homes for low-income populations; c)
Not less than 364 stakeholders/ participants trained; d) 70 or more unique/ innovative
microenterprises created to provide self-employment for the poor; plus d) An estimated
210 new jobs created for economic development in an impoverished rural area. (A
predicted 97 percent of the participants trained (353 stakeholders) will find jobs, or
become self-employed.) Participants will more than triple their typical incomes, and
family savings are expected to more than double ---just from energy savings alone.
Target area organizational resources shall show a dramatic increase as a result of adding
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NPI’s microenterprise incubator, and related microlending activity.
Leveraging Resources: The subject project is made possible because NPI has already
expended of $1.1 million on related technology development, plus another $370,000.00