; or (B) if no community action agency described in subparagraph (A) is available, a private, nonprofit organization (which may include an eligible entity) that is geographically located in, or is in reasonable proximity to, the unserved area and that is capable of providing a broad range of programs, projects, or services designed to achieve the purposes of this subtitle as stated in section 672. (2) Requirement In order to serve as the eligible entity for the service area, an entity described in paragraph (1) shall agree to ensure that the governing board of directors of the entity will meet the requirements of subsection (c). (3) Community A service area referred to in this subsection or a portion thereof shall be treated as a community for purposes of this subtitle. (b) Merger, combination, or privatization of eligible entities (1) In general If an eligible entity receiving subgrant funds makes a determination described in paragraph (2) and notifies the State, the State— (A) shall assist in developing a plan for implementing such merger, combination, or privatization, including a budget for transitional costs not to exceed 2 years in duration; and (B) upon approving such plans, may notify the Secretary that the entities are in need of and eligible for funds from the merger incentive fund established under section 682(a)(2). (2) Covered merger, combination, or privatization This subsection applies when— (A) 2 or more eligible entities determine that the geographic areas of a State that they serve can be more effectively served under common control or shared management