[Federal Register Volume 59, Number 13 (Thursday, January 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1309]


[[Page Unknown]]

[Federal Register: January 20, 1994]


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Part IV





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner



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NOFA for Federally Assisted Low Income Housing Drug Elimination 
Grants--FY-1994; Notice
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner
[Docket No. N-94-3696; FR-3576-N-01]

 
NOFA for Federally Assisted Low Income Housing Drug Elimination 
Grants--FY-1994

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner, HUD.

ACTION: Notice of Funding Availability (NOFA) for Fiscal Year (FY) 
1994.

-----------------------------------------------------------------------

SUMMARY: This NOFA announces HUD's FY 1994 funding of $12,306,000 for 
Federally Assisted Low Income Housing Drug Elimination Grants.

    (Note: This NOFA does not apply to the funding available under 
the statute for Public and Indian Housing.)

    In the body of this document is information concerning the purpose 
of the NOFA, applicant eligibility, available amounts, selection 
criteria, financial requirements, management, and application 
processing, including how to apply, how selections will be made, and 
how applicants will be notified of results.

DATES: No applications will be accepted after 4 p.m. (local time) by 
the HUD Regional Office on March 7, 1994. This application deadline is 
firm as to date and hour. In the interest of fairness to all competing 
applicants, the Department will treat as ineligible for consideration 
any application that is received after the deadline. Applicants should 
take this practice into account and make early submission of their 
materials to avoid any risk of loss of eligibility brought about by 
unanticipated delays or other delivery-related problems. A ``FAX'' will 
not constitute delivery.

ADDRESSES: (a) Application Form. An application form may be obtained 
from the HUD Regional Office having jurisdiction over the location of 
the applicant project. The Regional Office will be available to provide 
technical assistance on the preparation of applications during the 
application period.
    (b) Application Submission. Applications (original and one copy) 
must be received by the deadline at the appropriate HUD Regional Office 
with jurisdiction over the applicant project, Attention: Director of 
Housing Management. It is not sufficient for the application to bear a 
postage date within the submission time period. Applications submitted 
by facsimile are not acceptable. Applications received after the 
deadline will not be considered.

FOR FURTHER INFORMATION CONTACT: For application material and project-
specific guidance, please contact the Office of the Director of Housing 
in the HUD Regional Office having jurisdiction over the project(s) in 
question. These are listed as follows:

    Region I, Boston, Kenneth Salk (617) 565-5101.
    Region II, New York, Edwin Sprenger, (212) 264-4771.
    Region III, Philadelphia, Sidney Severe, (215) 597-2645.
    Region IV, Atlanta, Kenneth Williams, (404) 331-4127.
    Region V, Chicago, Michael Kulick, (312) 353-6950.
    Region VI, Fort Worth, Robert Creech, (817) 885-5531.
    Region VII, Gary Hayes, (913) 236-3812.
    Region VIII, Denver, Ronald Bailey, (303) 844-4959.
    Region IX, San Francisco, Keith Axtell, (415) 556-0796.
    Region X, Seattle, Diana Goodwin Shavey, (206) 553-4373.

    Policy questions of a general nature may be referred to Lessley 
Wiles, Office of Multifamily Housing Management, Department of Housing 
and Urban Development, room 6166, 451 Seventh Street, SW., Washington, 
DC 20410. Telephone (202) 708-0216. TDD number (202) 708-4594. (These 
are not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The information collection requirements contained in this final 
rule have been approved by the Office of Management and Budget, under 
section 3504(h) of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-
3520), and assigned OMB control number 2502-0476.

I. Purpose and Substantive Description

(a) Authority
    These grants are authorized under Chapter 2, Subtitle C, Title V of 
the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 et seq.), as amended 
by Section 581 of the National Affordable Housing Act of 1990 (NAHA), 
approved November 28, 1990, Pub. L. 101-625, and Section 161 of the 
Housing and Community Development Act of 1992 (HCDA 1992) (Pub. L. 102-
550, approved October 28, 1992).
(b) Allocation Amounts
    (1) Federal fiscal year 1994 funding. The amount available for 
funding under this NOFA is $12,306,000. Section 581 of NAHA expanded 
the Drug Elimination Program to include federally assisted, low-income 
housing. The Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1994, 
(approved October 28, 1993, Pub. L. 103-124), (94 App. Act) 
appropriated $265 million for the Drug Elimination Program and made not 
more than $13,250,000 of the total Drug Elimination Program 
appropriation available for federally assisted, low-income housing. Of 
the total $265 million appropriated, $233,814,000 will fund the Public 
and Indian Housing Drug Elimination Program; $13,250,000 will fund the 
Youth Sports Program; $5 million will fund drug elimination technical 
assistance and training; and $630,000 will fund drug information 
clearinghouse services. The remaining $12,306,000 is being made 
available under this NOFA.
    HUD is distributing grant funds under this NOFA to each of its 10 
Regional Offices on the basis of a formula allocation. This formula 
allocation is based upon the relationship of the number of eligible 
federally assisted low-income housing units per Region and the level of 
drug-related crime within each Region, based on statistics compiled by 
the U.S. Department of Justice, Federal Bureau of Investigation 
(``Uniform Crime Reports for Drug Abuse Violations--1990'').
    (2) Maximum grant award amounts. The maximum grant award amount is 
limited to $175,000 per project.
    (3) Reallocation. Any grant funds under this NOFA that are 
allocated to a Region, but that are not reserved for grantees, must be 
released to HUD Headquarters for reallocation. HUD reserves the right 
to fund portions of full applications. If the Regional Office 
determines that an application cannot be partially funded and there are 
insufficient funds to fund the application fully, any remaining funds 
after all other applications have been selected will be released to HUD 
Headquarters for reallocation. Amounts that may become available due to 
deobligation will also be reallocated to Headquarters.
    All reallocated funds will be awarded on a nationwide basis in the 
following manner: HUD Regional Offices will submit to Headquarters the 
applications that would have been funded had there been sufficient 
funds in the Regional allocation to do so. Headquarters will select 
applications from those submitted by the Regional Offices, using the 
ranking factors identified in section I.(d), below, of this NOFA, and 
make awards from any available reallocated funds.
    (4) Reduction of requested grant amounts. HUD may award an amount 
less than requested where:
    (i) HUD determines the amount requested for an eligible activity is 
unreasonable;
    (ii) Insufficient amounts remain under the allocation to fund the 
full amount requested by the applicant and HUD determines that partial 
funding is a viable option;
    (iii) HUD determines that some elements of the proposed plan are 
suitable for funding and others are not; or
    (iv) For any other reason where good cause exists.
    (5) Distribution of funds. HUD is distributing grant funds under 
this NOFA to its 10 Regional Offices, in accordance with the following 
schedule: 

------------------------------------------------------------------------
                        HUD region                           Allocation 
------------------------------------------------------------------------
Region I..................................................      $627,600
Region II.................................................      $922,900
Region III................................................    $1,501,300
Region IV.................................................    $2,498,100
Region V..................................................    $3,002,600
Region VI.................................................    $1,218,200
Region VII................................................      $590,600
Region VIII...............................................      $295,300
Region IX.................................................    $1,427,900
Region X..................................................      $221,500
                                                           -------------
    Total.................................................   $12,306,000
------------------------------------------------------------------------

(c) Eligibility
    Following is a listing of eligible activities, ineligible 
activities, eligible applicants, and general grant requirements under 
this NOFA:
    (1) Eligible activities. Please note that the maximum term of the 
grant is 12 months.
    It is the goal and intent of the Federally Assisted Low-Income 
Housing Drug Elimination Grant Program to foster a sense of community 
in dealing with the issues of drug-related criminal activity. Programs 
which foster interrelationships between the tenants, the housing owner 
and management, the local law enforcement agencies, and other community 
groups impacting on the housing are greatly desired and encouraged. 
Tenant participation in the determination of programs and activities to 
be undertaken is critical to the success of all aspects of the program. 
Working jointly with community groups, the neighborhood law enforcement 
precinct, tenants of adjacent properties and the community as a whole 
can enhance and magnify the effect of specific program activities and 
should be the goal of all applicants.
    (i) Physical improvements to enhance security. Physical 
improvements that are specifically designed to enhance security are 
eligible for funding under this program. The improvements may include 
(but are not limited to) systems designed to limit building access to 
project residents, the installation of barriers, lighting systems, 
fences, bolts, locks; the landscaping or reconfiguration of common 
areas to discourage drug-related crime; and other physical improvements 
designed to enhance security and discourage drug-related activities. In 
particular, the Department is seeking plans that provide successful, 
proven and cost effective drug crime deterrents designed to address the 
realities of low-income assisted housing environments. All physical 
improvements must also be accessible to persons with disabilities. For 
example, some types of locks, buzzer systems, etc., are not accessible 
to persons with limited strength, mobility, or to persons who are 
hearing impaired. All physical improvements must meet the accessibility 
requirements of 24 CFR part 8.
    (ii) Programs to reduce the use of drugs. Programs designed to 
reduce the use of drugs in and around federally-assisted low-income 
housing projects including drug-abuse prevention, intervention, 
referral, and treatment programs are eligible for funding under this 
program. The program should facilitate drug prevention, intervention 
and treatment efforts, to include outreach to community resources and 
youth activities, and facilitate bringing these resources onto the 
premises, or provide resident referrals to treatment programs or 
transportation to out-patient treatment programs away from the 
premises. Funding is permitted for reasonable, necessary and justified 
leasing of vehicles for resident youth and adult education and training 
activities directly related to ``Programs to reduce the use of drugs'' 
under this section. Alcohol-related activities/programs are not 
eligible for funding under this NOFA.
    (A) Drug Prevention. Drug prevention programs that will be 
considered for funding under this NOFA must provide a comprehensive 
drug prevention approach for residents that will address the individual 
resident and his or her relationship to family, peers, and the 
community. Prevention programs must include activities designed to 
identify and change the factors present in federally assisted low-
income housing that lead to drug-related problems, and thereby lower 
the risk of drug usage. Many components of a comprehensive approach, 
such as refusal and restraint skills training programs or drug-related 
family counseling, may already be available in the community of the 
applicant's housing projects, and the applicant must act to bring those 
available program components onto the premises. Activities that should 
be included in these programs are:
    (1) Drug Education Opportunities for residents. The causes and 
effects of illegal drug usage must be discussed in a formal setting to 
provide both young people and adults the working knowledge and skills 
they need to make informed decisions to confront the potential and 
immediate dangers of illegal drugs. Grantees may contract (in 
accordance with 24 CFR part 85.36) with drug education professionals to 
provide appropriate training or workshops. The drug education 
professionals contracted to provide these services shall be required to 
base their services upon the program plan of the grantee. These 
educational opportunities may be a part of resident meetings, youth 
activities, or other gatherings of residents.
    (2) Family and Other Support Services. Drug prevention programs 
must demonstrate that they will provide directly or otherwise make 
available services designed to distribute drug education information, 
to foster effective parenting skills, and to provide referrals for 
treatment and other available support services in the project or the 
community for federally-assisted low-income housing families.
    (3) Youth Services. Drug prevention programs must demonstrate that 
they have included groups composed of young people as a part of their 
prevention programs. These groups must be coordinated by adults with 
the active participation of youth to organize youth leadership, sports, 
recreational, cultural and other activities involving housing youth. 
The dissemination of drug education information, the development of 
peer leadership skills and other drug prevention activities must be a 
component of youth services. Activities or services funded under this 
program may not also be funded under the Youth Sports Program.
    (4) Economic/Educational Opportunities for residents and youth. 
Drug prevention programs should demonstrate a capacity to provide 
residents the opportunity for referral to established higher education 
or vocational institutions with the goal of developing or building on 
the residents' skills to pursue educational, vocational and economic 
goals. The program must also demonstrate the ability to provide 
residents the opportunity to interact with private sector businesses in 
their immediate community for the same desired goals.
    (B) Intervention. The aim of intervention is to identify federally-
assisted low-income housing resident drug users and assist them in 
modifying their behavior and in obtaining early treatment, if 
necessary. The applicant must establish a program with the goal of 
preventing drug problems from continuing once detected.
    (C) Drug Treatment.
    (1) Treatment funded under this program shall be in or around the 
premises of the federally-assisted low-income housing projects proposed 
for funding.
    (2) Funds awarded under this program shall be targeted towards the 
development and implementation of new drug referral treatment services 
and/or aftercare, or the improvement of, or expansion of such program 
services for residents.
    (3) Each proposed drug treatment program should address the 
following goals:
    (i) Increase resident accessibility to drug treatment services;
    (ii) Decrease criminal activity in and around federally-assisted 
low-income housing projects by reducing illicit drug use among 
residents; and
    (iii) Provide services designed for youth and/or maternal drug 
abusers, e.g., prenatal/postpartum care, specialized counseling in 
women's issues, parenting classes, or other drug supportive services.
    (4) Approaches that have proven effective with similar populations 
will be considered for funding. Programs should meet the following 
criteria:
    (i) Applicants may provide the service of formal referral 
arrangements to other treatment programs not in or around the project 
when the resident is able to obtain treatment costs from sources other 
than this program. Applicants may also provide transportation for 
residents to out-patient treatment and/or support programs.
    (ii) Provide family/collateral counseling.
    (iii) Provide linkages to educational/vocational counseling.
    (iv) Provide coordination of services to appropriate local drug 
agencies, HIV-related service agencies, and mental health and public 
health programs.
    (v) Applicants must demonstrate a working partnership with the 
Single State Agency or State license provider or authority with drug 
program coordination responsibilities to coordinate, develop and 
implement the drug treatment proposal. In particular, applicants must 
review and determine with the Single State Agency or State license 
provider or authority with drug program coordination responsibilities 
whether:
    (A) The drug treatment provider(s) has provided drug treatment 
services to similar populations, identified in the application, for two 
prior years; and
    (B) The drug treatment proposal is consistent with the State 
treatment plan and the treatment service meets all State licensing 
requirements.
    (vi) Funding is not permitted for treatment of residents at any in-
patient medical treatment programs/facilities.
    (vii) Funding is not permitted for detoxification procedures, short 
term or long term, designed to reduce or eliminate the presence of 
toxic substances in the body tissues of a patient.
    (viii) Funding is not permitted for maintenance drug programs. 
Maintenance drugs are medications that are prescribed regularly for a 
long period of supportive therapy (e.g. methadone maintenance), rather 
than for immediate control of a disorder.
    (iii) Resident Councils (RCs). Providing funding to resident 
councils to strengthen their role in developing programs of eligible 
activities involving site residents is eligible for funding under this 
program.
    (2) Ineligible activities. Funding is not permitted for any 
activities listed below:
    (i) Any activity or improvement that is normally funded from 
project operating revenues for routine maintenance or repairs, or those 
activities or improvements that may be funded through reasonable and 
affordable rent increases;
    (ii) The acquisition of real property or physical improvements that 
involve the demolition of any units in the project or displacement of 
tenants.
    (iii) Costs incurred prior to the effective date of the grant 
agreement, including, but not limited to, consultant fees for surveys 
related to the application or its preparation;
    (iv) Reimbursement of local law enforcement agencies for additional 
security and protective services;
    (v) The employment of one or more individuals--
    (A) to investigate drug-related crime on or about the real property 
comprising any federally-assisted low-income project; and
    (B) to provide evidence relating to such crime in any 
administrative or judicial proceeding; and
    (vi) The provision of training, communications equipment and other 
related equipment for use by voluntary tenant patrols acting in 
cooperation with local law enforcement officials.
    (3) Eligible Applicants. The applicant must be the owner of a 
federally assisted low-income housing project under:
    (i) Section 221(d)(3), section 221(d)(4) or 236 of the National 
Housing Act. (Note however, section 221(d)(4) and section 221(d)(3) 
market rate projects without project-based assistance contracts are not 
considered federally assisted low-income housing. Therefore, section 
221(d)(4) and section 221(d)(3) market rate projects with tenant-based 
assistance contracts are not considered federally assisted low-income 
housing and are not eligible for funding.)
    (ii) Section 101 of the Housing and Urban Development Act of 1965, 
or
    (iii) Section 8 of the United States Housing Act of 1937.
    (4) General Grant Requirements. The following requirements apply to 
all activities, programs, or functions used to plan, budget and 
evaluate the work funded under this program.
    (i) After applications have been ranked and selected, HUD and the 
applicant shall enter into a grant agreement setting forth the amount 
of the grant, the physical improvements or other eligible activities to 
be undertaken, financial controls, and special conditions, including 
sanctions for violation of the agreement.
    (ii) The policies, guidelines and requirements of this NOFA, 48 CFR 
part 31, other applicable OMB cost principles, HUD program regulations, 
HUD Handbooks, and the terms of grant/special conditions and subgrant 
agreements apply to the acceptance and use of assistance by grantees 
and will be followed in determining the reasonableness and allocability 
of costs. All costs must be reasonable and necessary.
    (iii) The term of funded activities may not exceed 12 months.
    (iv) Owners must ensure that any funds received under this program 
are not commingled with other HUD or project operating funds.
    (v) To avoid duplicate funding owners must establish controls to 
assure that any funds from other sources, such as Reserve for 
Replacement, Rent Increases, etc., are not used to fund the physical 
improvements to be undertaken under this program.
    (vi) Employment preference. A grantee under this program shall give 
preference to the employment of residents, and comply with section 3 of 
the Housing and Urban Development Act of 1968 and 24 CFR Part 135, to 
carry out any of the eligible activities under this part, so long as 
such residents have comparable qualifications and training as non-
housing resident applicants.
    (vii) Termination of funding. HUD may terminate funding if the 
grantee fails to undertake the approved program activities on a timely 
basis in accordance with the grant agreement; adhere to grant agreement 
requirements or special conditions; or submit timely and accurate 
reports.
    (viii) Subgrants (subcontracting).
    (A) A grantee may directly undertake any of the eligible activities 
under this NOFA or it may contract with a qualified third party, 
including incorporated Resident Councils (RCs). Resident groups that 
are not incorporated RCs may share with the grantee in the 
implementation of the program, but may not receive funds as 
subgrantees.
    (B) Subgrants or cash contributions to incorporated RCs may be made 
only under a written agreement executed between the grantee and the RC. 
The agreement must include a program budget that is acceptable to the 
grantee, and that is otherwise consistent with the grant application 
budget. The agreement must obligate the incorporated RC to permit the 
grantee to inspect and audit the RC financial records related to the 
agreement, and to account to the grantee on the use of grant funds, and 
on the implementation of program activities. In addition, the agreement 
must describe the nature of the activities to be undertaken by the 
subgrantee, and the scope of the subgrantee's authority; and the amount 
of insurance to be obtained by the grantee and the subgrantee to 
protect their respective interests.
    (C) The grantee shall be responsible for monitoring, and for 
providing technical assistance to, any subgrantee to ensure compliance 
with HUD program requirements, including OMB Circular Nos. A-110 and A-
122, which apply to the acceptance and use of assistance by private 
nonprofit organizations. The procurement requirements of Attachment O 
of Circular A-110 apply to RCs. The grantee must also ensure that 
subgrantees have appropriate insurance liability coverage.
(d) Selection Criteria and Ranking Factors
    HUD will review each application to determine that it meets the 
requirements of this NOFA and to assign points in accordance with the 
selection criteria. A total of 200 points is the maximum score 
available under the selection criteria. An application must receive a 
score of at least 131 points out of the maximum of 200 points that may 
be awarded under this competition to be eligible for funding. After 
assigning points to each application, HUD will rank the applications in 
order by Region. HUD will select the highest ranking applications whose 
eligible activities can be fully funded within each Region. Grants 
under this program are categorically excluded from review under the 
National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321). 
However, prior to the award of grant funds under the program, HUD will 
perform an environmental review to the extent required under the 
provisions of 24 CFR 50.4. Each application submitted will be evaluated 
on the basis of the following selection criteria:
    (1) The quality of the plan to address the problem (maximum points: 
70).
    In assessing this criterion, HUD will consider the following 
factors:
    (i) The quality of the applicant's plan to address the drug-related 
crime problem, and the problems associated with drug-related crime, in 
the projects proposed for funding, and how well the activities proposed 
for funding fit in with the plan. (points: 20)
    (ii) The anticipated effectiveness of the plan and the proposed 
activities in reducing or eliminating drug related crime problems over 
an extended period. (points: 20)
    (iii) How the activities identified in the plan will affect and 
address the problem of drug related crime in adjacent properties. 
(points: 20)
    (iii) Evidence that the proposed activities have been found 
successful in similar circumstances in terms of controlling drug-
related crime. (points: 10)
    (2) The support of local government/law enforcement agencies. 
(Maximum Points: 20).
    In assessing this criterion, HUD will consider the following 
factors:
    (i) Evidence that the project owner has sought assistance in 
deterring drug-related crime problems and the extent to which the owner 
has participated in programs that are available from local governments 
or law enforcement agencies; (points: 10) and
    (ii) The level of support by the local government or law 
enforcement agency for the applicant's proposed activities. (points: 10 
)
    (3) The extent of the drug-related crime problem in the housing 
project proposed for assistance (maximum points: 70).
    In assessing this criterion, HUD will consider the degree of 
severity of the drug-related crime problem in the project proposed for 
funding, as demonstrated by the information required to be submitted 
under section III.(h) of this NOFA.
    (4) The support of residents in planning and implementing the 
proposed activities (maximum points: 20).
    In assessing this criterion, HUD will consider the following 
factors:
    (i) Evidence that comments and suggestions have been sought from 
residents to the proposed plan for this program and evidence that the 
owner carefully considered the comments of residents and incorporated 
their suggestions in the plan, when practical. (points: 10)
    (ii) Evidence of resident support for the proposed plan. (points: 
10)
    (5) Capacity of owner and management to undertake the proposed 
activities: (maximum points: 20).
    In assessing this criterion, HUD will consider the following:
    (i) The most recent Management Review completed by the HUD Office.

    (Note: The HUD Field Office will conduct another management 
review after application submission if the most recent management 
review is more than nine months old). (points: 10)

    (ii) Submission of evidence that project owners have initiated 
other efforts to reduce drug-related crime by working with tenant/law 
enforcement groups (e.g. establishment of ``Tenant Watches'' or similar 
efforts). (points: 5)
    (iii) Submission of evidence that project management carefully 
screens applicants for units and takes appropriate steps to deal with 
known or suspected tenants exhibiting drug-related criminal behavior. 
(points: 5)

II. Application Process

(a) Application Form
    An application form may be obtained from the HUD Field Office 
having jurisdiction over the location of the applicant project. The 
Field Office will be available to provide technical assistance on the 
preparation of applications during the application period.
(b) Application Submission
    A separate application must be submitted for each project. An 
application (original and one copy) must be received by the deadline at 
the appropriate HUD Regional Office with jurisdiction over the 
applicant project, Attention: Director of Housing. It is not sufficient 
for the application to bear a postage date within the submission time 
period. Applications submitted by facsimile (``FAX'') are not 
acceptable and will not be considered. Applications received after the 
deadline will not be considered. No applications will be accepted after 
4 p.m. (local time) for the Regional Office on March 7, 1994. This 
application deadline is firm as to date and hour. In the interest of 
fairness to all competing applicants, the Department will treat as 
ineligible for consideration any application that is received after the 
deadline. Applicants should take this practice into account and make 
early submission of their materials to avoid any risk of loss of 
eligibility brought about by unanticipated delays or other delivery-
related problems.
(c) Application Notification
    HUD will notify all applicants whether or not they were selected 
for funding.

III. Checklist of Application Submission Requirements

    To qualify for a grant under this program, an applicant must submit 
an application to HUD that contains the following:
    (a) Application for Federal Assistance form (Standard Form SF-424 
and SF-424A). The form must be signed by the applicant.
    (b) A description of the applicant's plan for addressing the 
problem of drug related crime in the projects for which funding is 
sought, which should include the activities to be funded under this 
program along with all other initiatives being undertaken by the 
applicant. The description should also include a discussion of:
    (1) The anticipated effectiveness of the plan and the proposed 
activities in reducing or eliminating drug related crime problems over 
an extended period.
    (2) How the activities identified in the plan will affect and 
address the problem of drug related crime in adjacent properties.
    (3) Other efforts that project owners have initiated to reduce 
drug-related crime by working with tenant/law enforcement groups (e.g. 
establishment of ``Tenant Watches'' or similar efforts).
    (4) Procedures that project management uses to screen applicants 
for units and steps taken to deal with known or suspected tenants 
exhibiting drug-related criminal behavior.
    (c) Each applicant for funding for physical improvements must 
submit a written plan fully describing the physical improvements to be 
undertaken with per unit dollar costs for each item. This plan must be 
signed by the owner.
    (d) Each applicant must submit a letter from the local government 
or police (law enforcement) agency that describes the type of drug-
related crime in the project proposed for grant funding and its 
immediate environs, and expresses a commitment to assist the owner in 
taking steps to reduce or eliminate the drug-related crime problems of 
the project.
    (e) A description of the procedure used to involve residents in the 
development of the plan and written summaries of any comments and 
suggestions received from residents on the proposed plan, along with 
evidence that the owner carefully considered the comments of residents 
and incorporated their suggestions in the plan, when practical.
    (f) A description of the support of residents for the proposed 
activities and their willingness to assist the owner in implementing 
the plan. Letters of support from tenants may be used.
    (g) A copy of the most recent management review performed by HUD 
and evidence supporting the capacity of the owner and management to 
undertake the proposed activities.
    (h) Detailed information, such as local government and police 
reports, evidencing the degree of drug-related crime in the project and 
adjacent properties to demonstrate the degree of severity of the drug-
related crime problem. This information may consist of:
    (1) Objective data. The best available objective data on the 
nature, source, and extent of the problem of drug-related crime, and 
the problems associated with drug-related crime. These data may include 
(but not necessarily be limited to) crime statistics from Federal, 
State, tribal or local law enforcement agencies, or information from 
the applicant's records on the types and sources of drug-related crime 
in the project proposed for assistance; descriptive data as to the 
types of offenders committing drug-related crime in the applicant's 
project (e.g., age, residence, etc.); the number of lease terminations 
or evictions for drug-related criminal activity; the number of 
emergency room admissions for drug use or drug-related crime; the 
number of police calls for drug-related criminal activity; the number 
of residents placed in treatment for substance abuse; and the school 
drop-out rate and level of absenteeism for youth. If crime statistics 
are not available at the project or precinct level, the applicant may 
use other reliable, objective data including those derived from the 
owner's records or those of private groups that collect such data. The 
crime statistics should be reported both in real numbers, and as a 
percentage of the residents in each project (e.g., 20 arrests for 
distribution of heroin in a project with 100 residents reflects a 20% 
occurrence rate). The data should cover the past three-year period and, 
to the extent feasible, should indicate whether these data reflect a 
percentage increase or decrease in drug-related crime over the past 
several years. Applicants must address in their assessment how these 
crimes have affected the project, and how the applicant's overall plan 
and strategy is specifically tailored to address these drug-related 
crime problems.
    (2) Other data on the extent of drug-related crime. To the extent 
that objective data as described under paragraph (1)(i) of this section 
may not be available, or to complement that data, the assessment may 
use relevant information from other sources that have a direct bearing 
on drug-related crime problems in the project proposed for assistance. 
However, if other relevant information is to be used in place of, 
rather than to complement, objective data, the application must 
indicate the reason(s) why objective data could not be obtained and 
what efforts were made to obtain it. Examples of other data include: 
Resident/staff surveys on drug-related issues or on-site reviews to 
determine drug activity; the use of local government or scholarly 
studies or other research conducted in the past year that analyze drug 
activity in the targeted project; vandalism costs and related vacancies 
attributable to drug-related crime; information from schools, health 
service providers, residents and police; and the opinions and 
observations of individuals having direct knowledge of drug-related 
crime problems concerning the nature and extent of those problems in 
the project proposed for assistance. (These individuals may include law 
enforcement officials, resident or community leaders, school officials, 
community medical officials, drug treatment or counseling 
professionals, or other social service providers.)
    (i) If applying for drug treatment program funding, a certification 
that the applicant has notified and consulted with the relevant Single 
State Agency or other local authority with drug program coordination 
responsibilities concerning its application; and that the proposed drug 
treatment program has been reviewed by the relevant Single State Agency 
or other local authority and that it is consistent with the State 
treatment plan; and that the relevant Single State Agency or other 
local authority has determined that the drug treatment provider(s) has 
provided drug treatment services to similar populations, identified in 
the application, for two prior years.
    (j) Drug-free workplace. The certification with regard to the drug-
free workplace required by 24 CFR part 24, subpart F and appendix C.
    (k) Disclosure of Lobbying Activities. If the amount applied for is 
greater than $100,000, the certification with regard to lobbying 
required by 24 CFR part 87 must be included. See section VI.(g), below, 
of this NOFA. If the amount applied for is greater than $100,000 and 
the applicant has made or has agreed to make any payment using 
nonappropriated funds for lobbying activity, as described in 24 CFR 
part 87, the submission must also include the Disclosure of Lobbying 
Activities Form (SF-LLL).
    (l) Form HUD-2880, Applicant/ Recipient Disclosure/Update Report.

IV. Corrections to Deficient Applications

    HUD will notify the applicant within ten (10) working days of the 
receipt of the application if there are any curable technical 
deficiencies in the application. Curable technical deficiencies relate 
to minimum eligibility requirements (such as certifications, 
signatures, etc.) that are necessary for funding approval but that do 
not relate to the quality of the applicant's program proposal under the 
selection criteria. The owner must submit corrections in accordance 
with the information provided by HUD within 14 calendar days of the 
date of the HUD notification.

VI. Other Matters

(a) Environmental Impact
    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR part 50 that 
implement section 102(2)(C) of the National Environmental Policy Act of 
1969, 42 U.S.C. 4332. The Finding of No Significant Impact is available 
for public inspection and copying from 7:30 to 5:30 weekdays in the 
Office of the Rules Docket Clerk, room 10276, 451 Seventh Street, SW., 
Washington, DC 20410.
(b) Federalism Impact
    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the 
provisions of this NOFA do not have ``federalism implications'' within 
the meaning of the Order. The NOFA announces the availability of funds 
and provides the application requirements for federally Assisted Low 
Income Housing Drug Elimination Grants focusing on activities designed 
to deter drug-related crime. Deterring drug-related crime is a 
recognized goal of general benefit without direct implications on the 
relationship between the national government and the states or on the 
distribution of power and responsibilities among various levels of 
government.
(c) Family Impact
    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that the policies announced in 
this Notice would not have a significant impact on the formation, 
maintenance, and general well-being of families except indirectly to 
the extent of the social and other benefits expected from this program 
of assistance.
(d) Section 102 HUD Reform Act Applicant/Recipient Disclosures

Accountability in the Provision of HUD Assistance

    HUD has promulgated a final rule to implement section 102 of the 
Department of Housing and Urban Development Reform Act of 1989 (HUD 
Reform Act). The final rule is codified at 24 CFR part 12. Section 102 
contains a number of provisions that are designed to ensure greater 
accountability and integrity in the provision of certain types of 
assistance administered by HUD. On January 14, 1992, HUD published at 
57 FR 1942 additional information that gave the public (including 
applicants for, and recipients of, HUD assistance) further information 
on the implementation of section 102. The documentation, public access, 
and disclosure requirements of section 102 are applicable to assistance 
awarded under this NOFA as follows:
    Documentation and public access. HUD will ensure that documentation 
and other information regarding each application submitted pursuant to 
this NOFA are sufficient to indicate the basis upon which assistance 
was provided or denied. This material, including any letters of 
support, will be made available for public inspection for a five-year 
period beginning not less than 30 days after the award of the 
assistance. Material will be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15. In addition, HUD will include the 
recipients of assistance pursuant to this NOFA in its quarterly Federal 
Register notice of all recipients of HUD assistance awarded on a 
competitive basis. (See 24 CFR 12.14(a) and 12.16(b), and the notice 
published in the Federal Register on January 16, 1992 (57 FR 1942), for 
further information on these requirements.)
    Disclosures. HUD will make available to the public for five years 
all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this NOFA. Update reports (also Form 2880) will be made 
available along with the applicant disclosure reports, but in no case 
for a period less than three years. All reports--both applicant 
disclosures and updates--will be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15. (See 24 CFR subpart C, and the notice 
published in the Federal Register on January 16, 1992 (57 FR 1942), for 
further information on these disclosure requirements.)
(e) Section 103 HUD Reform Act
     HUD's regulation implementing section 103 of the Department of 
Housing and Urban Development Reform Act of 1989 was published May 13, 
1991 (56 FR 22088) and became effective on June 12, 1991. That 
regulation, codified as 24 CFR part 4, applies to the funding 
competition announced today. The requirements of the rule continue to 
apply until the announcement of the selection of successful applicants.
    HUD employees involved in the review of applications and in the 
making of funding decisions are limited by part 4 from providing 
advance information to any person (other than an authorized employee of 
HUD) concerning funding decisions, or from otherwise giving any 
applicant an unfair competitive advantage. Persons who apply for 
assistance in this competition should confine their inquiries to the 
subject areas permitted under 24 CFR part 4. Applicants who have 
general questions about what information may be discussed with them 
during the selection may contact the HUD Office of Ethics (202) 708-
3815. (This is not a toll-free number.)
(f) Section 112 HUD Reform Act
    Section 13 of the Department of Housing and Urban Development Act 
contains two provisions dealing with efforts to influence HUD's 
decisions with respect to financial assistance. The first imposes 
disclosure requirements on those who are typically involved in these 
efforts--those who pay others to influence the award of assistance or 
the taking of a management action by the Department and those who are 
paid to provide the influence. The second restricts the payment of fees 
to those who are paid to influence the award of HUD assistance, if the 
fees are tied to the number of housing units received or are based on 
the amount of assistance received, or if they are contingent upon the 
receipt of assistance.
    Section 13 was implemented by final rule published in the Federal 
Register on May 17, 1991 (56 FR 22912). If readers are involved in any 
efforts to influence the Department in these ways, they are urged to 
read the final rule, particularly the examples contained in Appendix A 
of the rule.
(g) Prohibition Against Lobbying Activities
    The use of funds awarded under this NOFA is subject to the 
disclosure requirements and prohibitions of section 319 of the 
Department of Interior and Related Agencies Appropriations Act for 
Fiscal Year 1990 (31 U.S.C. 1352) (The ``Byrd Amendment'') and the 
implementing regulations at 24 CFR part 87. These authorities prohibit 
recipients of federal contracts, grants, or loans from using 
appropriated funds for lobbying the Executive or Legislative branches 
of the federal government in connection with a specific contract, 
grant, or loan. The prohibition also covers the awarding of contracts, 
grants, cooperative agreements, or loans unless the recipient has made 
an acceptable certification regarding lobbying. Under 24 CFR part 87, 
applicants, recipients, and subrecipients of assistance exceeding 
$100,000 must certify that no federal funds have been or will be spent 
on lobbying activities in connection with the assistance. Indian 
Housing Authorities (IHAs) established by an Indian tribe as a result 
of the exercise of their sovereign power are excluded from coverage, 
but IHAs established under State law are not excluded from coverage.

    Authority: 42 U.S.C. 11901 et seq.

    Dated: January 6, 1994.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 94-1309 Filed 1-19-94; 8:45 am]
BILLING CODE 4210-27-P