[Federal Register Volume 59, Number 77 (Thursday, April 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9690]


[[Page Unknown]]

[Federal Register: April 21, 1994]


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Part V





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Secretary



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NOFA for Lead-Based Paint Hazard Control in Priority Housing; Notice
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary--Office of Lead-Based Paint Abatement and 
Poisoning Prevention
[Docket No. N-94-3735; FR-3643-N-01]

 
NOFA for Lead-Based Paint Hazard Control in Priority Housing

AGENCY: Office of the Secretary--Office of Lead-Based Paint Abatement 
and Poisoning Prevention, HUD.

ACTION: Notice of funding availability.

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SUMMARY: This notice announces the availability of funding of $142 
million for a grant program for States and local governments to 
undertake lead-based paint hazard control in priority housing. 
Approximately 25-30 grants of $1 million-$6 million each will be 
awarded in FY 1994. The grant sum requested by applicants must be based 
on the total for all years of the proposed project. This document 
includes information concerning the following:
    (1) The purpose of the NOFA, eligibility, available amounts, and 
selection criteria;
    (2) Application processing, including how to apply and how 
selections will be made; and
    (3) A checklist of steps and exhibits involved in the application 
process.
    Appendices to the NOFA identify relevant regulations and guidelines 
referenced throughout the NOFA, define ``administrative costs'', 
provide a sample diagram for showing an applicant's sources and uses of 
the grant funds, set forth requirements for a State certification 
program, list eligible HUD housing programs, provide requirements for 
the Comprehensive Housing Affordability Strategy (CHAS), and set out a 
relevant statutory provision. (Note: Responsibility for Category II 
grants as described in the previous NOFA has been transferred to the 
Environmental Protection Agency.)

DATES: An original and two copies of the completed application must be 
submitted no later than 3:00 P.M. (Eastern Time) on July 5, 1994. The 
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 its 
deadline. Applicants should take this factor into account and make 
early submission of their materials to avoid loss of eligibility 
brought about by unanticipated delays or other delivery-related 
problems. Section 5 of this NOFA provides further information on what 
constitutes proper submission of an application.

ADDRESSES: Application kits may be obtained from the Office of Lead-
Based Paint Abatement and Poisoning Prevention, Department of Housing 
and Urban Development, room B-133, 451 Seventh Street, SW., Washington, 
DC 20410, or by phoning 1-800-RID-LEAD (1-800-743-5323). Completed 
applications should be submitted to this same address, and may not be 
faxed.

FOR FURTHER INFORMATION CONTACT: Ellis G. Goldman, Director, Program 
Management Division, Office of Lead-Based Paint Abatement and Poisoning 
Prevention, room B-133, 451 Seventh Street, SW., Washington, DC 20410, 
telephone 1-800-RID-LEAD (1-800-743-5323). TDD numbers for the hearing-
impaired are: (202) 708-9300 (not a toll-free number), or 1-800-877-
8339.

SUPPLEMENTARY INFORMATION:

Table of Contents:

Section 1. Paperwork Reduction Act Statement
Section 2. Definitions
Section 3. Purpose and Description
    3.1  Purpose and Authority
    3.2  Background
    3.3  Allocation Amounts
    3.4  Eligibility
    3.5  Limitations of the Use of Assistance
    3.6  Environmental Review
    3.7  Objectives and Requirements
Section 4. Application Process
    4.1  Submitting Applications
    4.2  Threshold Requirements
    4.3  Rating Factors
Section 5. Checklist of Application Submission Requirements
    5.1  Applicant Data
    5.2  Proposed Activities
    5.3  Certifications and Assurances
Section 6. Corrections to Deficient Applications
Section 7. Administrative Provisions
    7.1  Obligation of Funds
    7.2  Increases of Awards
    7.3  Deobligation
    7.4  Reports
Section 8. Other Matters
Appendix A. Relevant Federal Regulations and Guidelines
Appendix B. Explanation of ``Administrative Costs''
Appendix C. Source and Use of Funds (Sample)
Appendix D. Eligibility of HUD-Associated Housing Units
Appendix E. Elements of a State Certification Program
Appendix F. CHAS: Statement of Requirements
Appendix G. Section 215 of NAHA, Pub. L. 101-625

Section 1. Paperwork Reduction Act Statement

    The information collection requirements contained in this notice 
have been approved by the Office of Management and Budget (OMB), under 
section 3504(h) of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-
3520), and assigned OMB control number 2539-0005.

Section 2. Definitions

    The following definitions apply to this grant program:
    Abatement--Any set of measures designed to eliminate lead-based 
paint hazards permanently in accordance with standards established by 
appropriate Federal agencies. The term includes:
    (1) The removal of lead-based paint and lead-contaminated dust, the 
permanent containment or encapsulation of lead-based paint, the 
replacement of lead-based painted surfaces or fixtures, and the removal 
or covering of lead contaminated soil; and
    (2) All preparation, cleanup, worker protection, disposal, and 
post-abatement clearance testing activities associated with such 
measures.
    Administrative Costs--(See Appendix B of this NOFA for a detailed 
definition.)
    Applicant--A State or a unit of general local government with an 
approved Comprehensive Housing Affordability Strategy (CHAS) that 
applies for funding under this NOFA.
    Certified Contractor--A contractor, inspector, or supervisor who 
has successfully completed a training program certified by the 
appropriate Federal agency and has met any other requirements for 
certification or licensure established by such agency or who has been 
certified by any State through a program which has been found by such 
Federal agency to be at least as rigorous as the Federal certification 
program outlined in Appendix E. All lead-hazard detection or reduction 
work shall be performed by workers and supervisors who have passed a 
Federal training program or a State training program found by such 
Federal agency to be at least as rigorous as the Federal program.
    Certified Inspector--Included in the definition of ``certified 
contractor,'' above.
    Clearance Testing--A HUD-required testing procedure that must be 
passed before a dwelling unit may be reoccupied. The unit must undergo 
a wipe test showing that it has lead dust levels below HUD's maximum 
allowable standards for floors (200 g/sq. ft. (micrograms/
square foot)), window sills (500 g/sq. ft.), and window wells 
(800 g/sq ft.).
    Encapsulation--A method of abatement that involves the coating and 
sealing of surfaces with durable, surface coatings specifically 
formulated to be elastic, able to withstand sharp and blunt impacts, 
long-lasting, and resilient, while also resistant to cracking, peeling, 
algae, fungus, and ultraviolet light, so as to prevent any part of 
lead-containing paint from becoming part of house dust or otherwise 
accessible to children. Paint is not an encapsulant.
    Enclosure--The resurfacing or covering of surfaces with durable 
materials such as gypsum board or paneling, and sealing or caulking the 
edges and joints so as to prevent or control chalking, flaking, 
peeling, scaling, or loose lead-containing substances from becoming 
part of house dust or otherwise accessible to children.
    Federally Assisted Housing--Residential dwellings receiving 
project-based assistance under programs including:
    (1) Section 221(d)(3) or section 236 of the National Housing Act;
    (2) Section 1 of the Housing and Urban Development Act of 1965;
    (3) Section 8 of the United States Housing Act of 1937; or
    (4) Sections 502(a), 504, 514, 515, 516, and 533 of the Housing Act 
of 1949.
    Hazardous Waste--Liquid or solid waste, or combination of solid 
wastes, which because of its quantity; concentration; or physical, 
chemical, or infectious characteristics may:
    (1) Cause, or significantly contribute to, an increase in mortality 
or in serious, irreversible, or incapacitating illness; or
    (2) Pose a substantial current or potential hazard to human health 
or the environment, when improperly treated, stored, transported, 
disposed of, or otherwise managed.
    HEPA--(High efficiency particulate accumulator)--A vacuum cleaner 
fitted with a filter capable of filtering out particles of 0.3 microns 
or greater from a body of air at 99.97 percent efficiency or more.
    Interim Controls--A set of measures designed to reduce temporarily 
human exposure or likely exposure to lead-based paint hazards, 
including specialized cleaning, repairs, maintenance, painting, 
temporary containment, ongoing monitoring of lead-based paint hazards 
or potential hazards, and the establishment and operation of management 
and resident education programs.
    Interim Guidelines--HUD's manual of lead-hazard control practices: 
``Lead-Based Paint: Interim Guidelines for Hazard Identification and 
Abatement in Public and Indian Housing,'' published 55 FR 14556 (April 
18, 1990), and revised 55 FR 39874 (September 28, 1990) and 56 FR 21556 
(May 9, 1991).
    Laboratory Accreditation--A laboratory that has been approved by a 
State or other accrediting agency to perform analyses of lead in paint 
and dust and whose approval is consistent with any criteria established 
by the Environmental Protection Agency.
    Lead-Based Paint Hazard--Any condition that causes exposure to lead 
from:
    (1) Lead-contaminated dust;
    (2) Lead-contaminated soil;
    (3) Lead-based paint that is deteriorated;
    (4) Lead-based paint present in accessible protruding surfaces that 
can be chewed or mouthed by children under six;
    (5) Lead-based paint present in friction surfaces; or
    (6) Lead-based paint present in impact surfaces, such that the 
exposure would result in adverse human health effects as established by 
the Environmental Protection Agency.
    Lead-Contaminated Soil--Bare soil on residential real property that 
contains lead at or in excess of the level determined to be hazardous 
to human health by the appropriate Federal agency.
    Lead-in-dust--Interior house surface dust that contains an area 
concentration of lead that may pose a threat of adverse health effects 
in pregnant women or young children. A hazard exists if concentrations 
exceed the maximum acceptable standards: 200 g/sq. ft. on 
floors, 500 g/sq. ft. on window sills, and 800 g/sq. 
ft. on window wells.
    Priority Housing--Target housing that qualifies as affordable 
housing under section 215 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12745). (See Appendix D for a list of HUD's 
programs and their eligibility or ineligibility as priority housing.) 
The term does not include any public housing (whether Federal or 
locally supported), any federally owned housing, or any federally 
assisted housing except tenant-based housing that receives assistance 
under sections 8(b) or 8(o) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(b) or (o)).
    Replacement--A strategy of abatement that removes components such 
as windows, doors, and trim that have lead-based painted surfaces, and 
installs new or de-leaded components free of lead-based paint.
    Residential Dwelling--This term means either:
    (1) A single-family dwelling, including attached structures, such 
as porches and stoops; or
    (2) A single-family dwelling unit in a structure that contains more 
than one separate residential dwelling unit, and in which each unit is, 
or is intended to be, used or occupied, in whole or in part, as the 
home or residence of one or more persons.
    Risk Assessment--An on-site investigation to determine and report 
the existence, nature, severity, and location of lead-based paint 
hazards in residential dwellings, including:
    (1) Information gathering regarding the age and history of the 
housing and occupancy by children under age 6;
    (2) Visual inspection;
    (3) Limited wipe sampling or other environmental sampling 
techniques;
    (4) Other activity as may be appropriate; and
    (5) Provision of a report explaining the results of the 
investigation.
    State Certification Program--(See Appendix E for extended 
discussion.)
    Substrate--The material to which a coating such as paint is 
applied. Residential substrates are usually wood, plaster, masonry, 
gypsum board, or metal, including components such as doors and door 
frames, windows and window trim, other trim, walls, ceilings, cabinets, 
and other built-in storage.
    Surface--The outer or topmost boundary of a substrate.
    Target Housing--Any housing constructed prior to 1978, except 
housing for the elderly or persons with disabilities (unless any child 
who is less than 6 years of age resides or is expected to reside in the 
housing for the elderly or persons with disabilities) or any 0-bedroom 
dwelling. In the case of jurisdictions that banned the sale or use of 
lead-based paint prior to 1978, the Secretary, at the Secretary's 
discretion, may designate an earlier date.
    Testing--The measurement of lead in painted surfaces by Federal- or 
State-certified personnel using a portable X-ray fluorescence analyzer, 
laboratory analysis of paint samples, or other method approved by HUD.
    Title X--The Residential Lead-Based Hazard Reduction Act of 1992 
(title X of Pub. L. 102-550, approved October 28, 1992).
    Trained Worker--A worker who has successfully completed a Federal 
or State-accredited lead-based paint training program that is at least 
as protective as the Federal Certification Program Standards outlined 
in Appendix E.
    Wipe Test--The testing of a surface for the presence of lead dust 
by the patterned wiping of the surface, followed by analysis of the 
wipe by atomic absorption spectroscopy, giving the result in micrograms 
of lead per square foot of surface. For clearance purposes, a sample of 
floors, window sills and window wells shall be tested in accordance 
with HUD's Interim Guidelines. The guidelines also require that for 
clearance all surfaces shall have less than the maximum allowable 
concentration standard of 200 g/sq.ft on floors, 500 
g/sq.ft on window sills, and 800 g/sq.ft on window 
wells. Also see the definition for ``Clearance Testing.''
    XRF Analyzer--A portable instrument that determines lead 
concentration in milligrams per square centimeter (mg/cm2) using the 
principle of x-ray fluorescence. The instrument may measure mean lead 
content or lead content plus a spectrum of other elements. The 
instrument shall be used in accordance with the rules for 
interpretation of the XRF sampling data for multifamily or scattered-
site housing, as provided in the HUD Interim Guidelines.

Section 3. Purpose and Description

3.1  Purpose and Authority

    Hazard-control grants are to assist States and local governments in 
undertaking programs for the evaluation and reduction of lead-based 
paint hazards in priority housing for rental occupants and owner 
occupants. (Appendix D lists HUD-associated housing programs that may 
have dwellings that meet the definition of priority housing.) One-
hundred forty-two million dollars ($142 million) will be available to 
fund 25-30 grants of $1 million to $6 million, each. The amounts are 
for the total, multiyear work of a proposed project. Grants are 
authorized under section 1011(a-f) of Title X.
    The purposes of this program include: (a) Implementation of a 
national strategy, as defined in Title X, to build the infrastructure 
necessary to eliminate lead-based paint hazards in all housing, as 
widely and expeditiously as possible;
    (b) Encouragement of effective action to prevent childhood lead 
poisoning by establishing a workable framework for lead-based paint 
hazard evaluation and reduction;
    (c) Expeditious mobilization of national resources, involving 
cooperation among all levels of government and the private sector, to 
develop the most promising, cost-effective methods for evaluating and 
reducing lead-based paint hazards; and
    (d) Promoting job training, employment, and other economic lift 
opportunities for lower income residents of the project neighborhoods.

3.2  Background

    Lead is a powerful toxicant that attacks the central nervous system 
and is particularly damaging to the neurological development of young 
children. Pregnant women can transfer lead through the placenta to the 
fetus. Lead-based paint (LBP) is one of the major sources of lead in 
the environment. In addition to paint, lead may be found in dust, soil, 
drinking water, food, emissions from leaded gasoline combustion, and 
industrial emissions. Human exposure to lead is found by testing blood 
for the presence of lead.
    Based upon a national survey conducted in 1990 for HUD's 
Comprehensive and Workable Plan for the Abatement of Lead-Based Paint 
in Privately Owned Housing report (see Appendix A), approximately 57 
million privately owned and occupied housing units built before 1980 
have some lead-based paint inside or outside the dwelling. The 57 
million units represent just over half of the nation's existing housing 
stock, and 74 percent of the dwellings built before 1980. The figures 
for dwellings having lead-based paint rise to 80 percent of dwellings 
built before 1960, and to 90 percent of those built before 1940. In 
addition, the older homes show both a greater concentration of lead in 
the paint and more areas with lead-based paint.
    An estimated 9.9 million of the 57 million units are occupied by 
families with children under the age of six, who are most at risk. Of 
these, about 3.8 million units have hazards requiring prompt attention, 
such as peeling lead-based paint, excessive amounts of lead dust, or 
both. Approximately half of these units are occupied by families with 
incomes lower than the national median.
    HUD has been actively engaged in a number of activities relating to 
lead-based paint as a result of the Lead-Based Paint Poisoning 
Prevention Act, 42 U.S.C. 4801-4846 (LBPPPA). The recently enacted 
Title X provides major new initiatives and more detailed requirements 
for this NOFA. (Appendix A identifies relevant Federal regulations and 
guidelines referred to in this NOFA.)
    The Comprehensive and Workable Plan described the magnitude of the 
problem of lead hazards in private housing and set forth a 
comprehensive strategy for reducing this threat. Also in 1990, HUD 
developed the first set of guidelines to be used nationally for abating 
lead paint in public housing (see Interim Guidelines, Appendix A). The 
guidelines are now being used in the Department's public housing 
modernization program, and an update to account for new knowledge and 
technology is underway.
    In April 1989, HUD and the Environmental Protection Agency (EPA) 
executed a Memorandum of Understanding (MOU) on Lead-Based Paint. This 
MOU has become the basis for interagency cooperation, including a HUD-
EPA Interagency Task Force on Lead-Based Paint. As another result of 
interagency cooperation, EPA, with assistance from HUD and the Centers 
for Disease Control (CDC), operates a National Clearinghouse and 
Tollfree Hotline on lead poisoning 1-800-LEADFYI (1-800-532-3394).

3.3  Allocation Amounts

    (a) Amounts. Under the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act of 
1994 (Pub. L. 103-124 approved October 28, 1993) (Appropriations Act), 
$150 million was appropriated for this program, including small set-
asides for research and development.
    (b) Residual Funds. In the selection process, once available funds 
have been allocated to meet the full requested amounts of the top 
eligible applicants, HUD reserves the right, successively, to offer any 
residual amount as partial funding to the next eligible applicant. Such 
applicant(s) shall have not more than 48 hours to accept, or to decline 
and reapply in the next round, provided HUD, in its sole judgment, is 
satisfied that the residual amount is sufficient to support a 
creditable, though reduced effort by such applicant(s).
    (c) Geographic Diversity. Because lead-based paint is a national 
problem, it is critical that these funds be used in a manner that 
maximizes the number of housing units in which lead-hazard control 
occurs, that stimulates cost-effective State and local approaches that 
can be replicated in as many settings as possible, and that disperses 
the grants as widely as possible across the nation. HUD expects to 
award 25 to 30 grants of $1 million to $6 million each. Grantees shall 
be reimbursed, in accordance with a schedule to be included with the 
applicant's proposal and approved by HUD.

3.4  Eligibility

    Title X specifies the following eligibility requirements for grants 
to evaluate and reduce lead-based paint hazards in priority housing:
    (a) Eligible Applicants. A State or unit of local government that 
has an approved Comprehensive Housing Affordability Strategy (CHAS) 
under section 105 (42 U.S.C. 12705) of the Cranston-Gonzalez National 
Affordable Housing Act (NAHA) is eligible to apply for a grant. (See 
Appendix F) However, applicants are advised that in selecting grantees 
under this NOFA, the Secretary is unlikely to select applicants that 
were previously funded under the FY 1993 NOFA, issued June 4, 1993 (58 
FR 31848). This selection decision will be pursuant to the Secretary's 
authority to ensure geographic distribution, to ensure available funds 
are used effectively to promote the purposes of Title X. (See Section 
4.3, Rating Factors, for additional discussion of this consideration 
for selection.)
    (b) Certified Performers. Funds shall be available only for 
projects conducted by contractors and inspectors who are certified, and 
workers who are trained, through a federally or State-accredited 
program that is at least as protective as the Federal certification 
program standards outlined in Appendix E to this NOFA.
    (c) Eligible Activities. The following direct and support 
activities are eligible under this grant program:
    (1) Direct Project Elements (whether activities of the grantee or 
subgrantees or other subrecipients):
     Inspection and testing of housing constructed prior to 
1978 to determine the presence of lead-based paint, lead dust, or 
leaded soil through the use of portable X-ray fluorescence analyzers or 
approved laboratory analyses and lead dust through wipe testing.
     Abatement of lead-based paint hazards, including soil, by 
means of removal, enclosure, encapsulation, or replacement methods.
     Less-than-full-abatement techniques for programs that 
apply a differentiated set of resources to each unit, dependent upon 
conditions of the unit and the extent of hazards.
     Temporary relocation of families and individuals during 
the period in which hazard control is conducted and until the time the 
affected unit receives clearance for reoccupancy.
     Blood testing of children under the age of six residing in 
units undergoing inspection or hazard control.
     Blood testing and air sampling to protect the health of 
the hazard-control workers, supervisors, and contractors.
     Other housing rehabilitation activities under this program 
that are specifically required to carry out effective abatement and 
without which the abatement could not be effected. Grant funds from 
this program may also be used for the lead-based paint hazard-control 
component in conjunction with other housing rehabilitation programs.
     Pre- and post-hazard control dust-wipe testing and 
analysis.
     Engineering and architectural costs that are necessary to, 
and in direct support of, abatement.
     Interim control of lead-based paint hazards priority 
housing.
     Establishment of a community education program on lead 
hazards.
     Liability insurance for lead-hazard control activities.
     Data collection, analysis, evaluation, and preparation of 
a case study at the conclusion of grant activities. This direct project 
activity includes compiling and delivering such data as may be required 
by HUD's independent evaluation and research program. For estimating 
purposes, an applicant must devote 3 percent of the total grant sum for 
this purpose (this 3 percent does not include the testing costs 
required). Note that this function is not included in administrative 
costs, for which there is a separate 10 percent limit.
     Performing risk assessments and inspections in priority 
housing.
    (2) Support Elements:
     Administrative costs of the grantee (maximum of 10%; (see 
Appendix B for definition).
     Program planning and management costs of subgrantees and 
other subrecipients.
     For Local Governments only (for States, the following 
activities may be undertaken as direct project elements):
    (i) Contributions to the State for the establishment of State data 
collection mechanisms to collect and publish data on the extent of all 
public and private lead-hazard control activities in the State, 
including numbers and dollar volume of activities and number and kinds 
of certified performers;
    (ii) Contributions to the State for the establishment of State 
funding mechanisms to assist testing and abatement efforts, with 
particular emphasis on assistance to priority housing; and
    (iii) Contributions to the State and/or County for the State and/or 
County Government to design and develop standard land-record mechanisms 
to be used by county governments to record permanently, property-by-
property, the completion and approval of lead-hazard testing and 
reduction activities, so that future occupants or purchasers may be 
better informed of the lead-hazard condition of the property. The land-
record mechanism is likely to need some means of record compression, 
mass storage, and ease of user access, as well as an identification of 
the lead-hazard control method (permanent abatement, partial abatement, 
or interim control), and should trigger a notice to housing inspection 
officials upon the occurrence of the expected expiration of the 
effectiveness of a less-than-permanent abatement method.
    (d) Ineligible Activities. Grant funds shall not be used:
    (1) To purchase capital equipment, except for XRF analyzers when it 
can be demonstrated that there are no XRF analyzers available locally. 
If purchased, the XRF analyzers shall remain the property of the 
grantee at the conclusion of the project. Funds may be used, however, 
to rent equipment specifically for the abatement project. If leased 
equipment, other than XRF analyzers, becomes the property of the 
grantee as the result of a lease arrangement, the leased equipment 
becomes the property of the Federal government at the end of the grant 
period. However, that form of lease arrangement should be avoided 
whenever a less expensive, straight-lease arrangement is possible; or
    (2) For chelation or other medical treatment costs. Funds used to 
cover these costs may be counted as part of the required local matching 
contribution, but must be obtained from other sources.

3.5  Limitations on the Use of Assistance

    (a) Grant funds are to be used to evaluate and reduce the hazards 
of lead-based paint in residential units constructed prior to 1978. 
However, if the jurisdiction has banned the sale or use of lead-based 
paint prior to 1978, the applicant jurisdiction may request the 
Department to designate an earlier date. These units must be priority 
housing, as defined in this NOFA.
    (b) Pursuant to the Coastal Barrier Resources Act (16 U.S.C. 3501), 
grant funds may not be used for properties located in the Coastal 
Barrier Resources System.
    (c) Under the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4001-4128), grant funds may not be used for construction, 
reconstruction, repair or improvement of a building or mobile home, 
including lead-based paint abatement that involves permanent 
containment or encapsulation of lead-based paint or replacement of 
lead-painted surfaces or fixtures or interim control measures that 
involve repairs, on properties located in an area identified by the 
Federal Emergency Management Agency (FEMA) as having special flood 
hazards unless:
    (1) The community in which the area is situated is participating in 
the National Flood Insurance Program in accordance with the applicable 
regulations (44 CFR parts 59-79), or less than a year has passed since 
FEMA notification regarding these hazards; and
    (2) Flood insurance on the property is obtained in accordance with 
section 102(a) of the Flood Disaster Protection Act (42 U.S.C. 
4012a(a)). Applicants are responsible for assuring that flood insurance 
is obtained and maintained for the appropriate amount and term.
    (d) The National Historic Preservation Act of 1966 (16 U.S.C. 470) 
(NHPA) and the regulations at 36 CFR part 800 apply to the abatement 
activities that are to be undertaken pursuant to this NOFA. HUD is 
responsible for satisfying the obligation to make a historic 
preservation finding under section 106 of the NHPA and the regulations. 
Recipients are to assist HUD in making the required findings by 
providing information to document the determination. This information 
includes the address of the property, and either a complete description 
of the activities to be carried out or an indication that no external 
changes are proposed and the property is not listed on the National 
Register of Historic Places or eligible for inclusion on the National 
Register (as required by section 106 of the NHPA). In the alternative, 
the recipients may provide evidence of consultation with the State 
Historic Preservation Officer (SHPO).
    (e) The applicant shall comply with the requirements of the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970 (URA) (42 U.S.C. 4201-4655). These policies are described in HUD 
Handbook 1378, Tenant Assistance, Relocation and Real Property 
Acquisition. No displacement (a permanent, involuntary move) is 
anticipated. However, to preclude avoidable claims for relocation 
assistance, all occupants (owner and tenants) shall, as soon as 
feasible, be notified in writing that they will not be displaced by the 
lead-based paint hazard-control program. In most cases tenants and 
owner-occupants will be required to relocate temporarily to permit the 
lead-based paint hazard-control program to be carried out. All 
conditions of the temporary relocation must be reasonable. The policy 
regarding temporary relocation costs for owner-occupants who elect to 
participate in hazard-control is a matter of grantee discretion. With 
respect to tenants who will be required to relocate temporarily, at a 
minimum the tenant shall be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporarily occupied housing and any 
increase in monthly rent/utility costs at that housing; and
    (2) Appropriate advisory services, including reasonable advance 
written notice of the date and approximate duration of the temporary 
relocation; the address of the suitable, decent, safe, and sanitary 
dwelling to be made available for the temporary period; the 
reimbursement provisions of paragraph (g)(5)(A) of this section; and 
information on a resident's rights under the Fair Housing Act.
    (f) The Resource Conservation and Recovery Act of 1976 (42 U.S.C. 
6901 et seq.) (RCRA), administered by the EPA, shall govern all waste 
disposal resulting from abatement.
    (g) The applicant shall observe the procedures for worker 
protection established in Chapter Eight of the Interim Guidelines. To 
the extent that the Occupational Health and Safety Administration 
(OSHA) requirements at 58 FR 26590 (May 4, 1993), or any other OSHA 
requirements published prior to the start of actual abatement work at 
any individual project site, are more stringent than the Interim 
Guidelines, those more stringent OSHA standards shall govern.
    (h) Abatement methods that will not be allowed are: open-flame 
burning, dry scraping, uncontrolled abrasive blasting, machine sanding 
without HEPA attachments or use of chemicals containing methylene 
chloride. The applicant is cautioned that methods that generate high 
levels of lead dust, such as abrasive sanding, shall be undertaken only 
with requisite worker protection, containment of dust and debris, and 
suitable clean-up.

3.6  Environmental Review

    Because it is likely for many applicants that at the time of 
application submission, only neighborhoods or other locators of the 
housing to be abated will be known, rather than specific properties, 
the Department has determined that it will perform an environmental 
review in accordance with 24 CFR part 50 at the time each property is 
proposed for abatement under the grant, rather than before HUD approval 
of the grant.
    HUD's environmental review will be limited to satisfying its 
obligation to make an historic preservation finding under section 106 
of the NHPA and the implementing regulations. HUD has determined that 
lead-based paint abatement falls within a categorical exclusion (see 24 
CFR 50.20(c)) from review under the National Environmental Policy Act 
and is not subject to the remaining authorities listed in 24 CFR 50.4, 
with the exception of the funding limitations under the Coastal Barrier 
Resources Act and the flood insurance purchase requirements of the 
Flood Disaster Protection Act of 1973. The applicant is responsible for 
compliance with these funding limitations and flood insurance purchase 
requirements.

3.7  Objectives and Requirements

    (a) Generally. Grantees will be afforded considerable latitude in 
designing and implementing the methods of lead-based paint hazard 
control to be employed in their jurisdictions. HUD is interested in 
promoting innovative and creative approaches that result in the 
reduction of this health threat for the maximum number of low- and 
moderate-income residents, and that demonstrate replicable techniques 
that are better, faster, less expensive, or more effective than current 
practices. Flexibility will be allowed within the parameters 
established below. It is critical that procedures for all phases of 
testing and abatement be clearly established in writing in the planning 
stage, and then adhered to by all applicants, recipients, and their 
contractors. It is only in this manner that research and evaluation of 
the safety and cost-effectiveness of the methods employed can be 
undertaken.
    Proposed methods requiring a variance from the standards or 
procedures cited below will be considered on their merits in a separate 
HUD review and approval process after the grant award is made and a 
specific justification has been presented. If a grant application is 
dependant on a variation from the procedures cited below, but otherwise 
is of award quality, it will be made as a conditional grant, subject to 
approval of the request for variation. When such a request is made, 
either in the application or during the planning phase, HUD intends to 
consult with experts from both the public and private sector as part of 
its final determinations and will document its findings in an 
environmental assessment. Approval of any proposed modifications will 
not involve a lowering of standards that would have a potential to 
affect adversely the health of residents or workers.
    (b) Testing--data collection. Grantees will be required to collect 
the data necessary to document the various methods employed in order to 
determine the relative cost and effectiveness of these methods in 
reducing lead-based paint hazards. Pre- and post-abatement 
environmental sampling and blood testing of children under the age of 
six shall be a major determinant of effectiveness.
    (c) Testing--schedule. In developing the application cost proposal, 
applicants shall include costs for the testing cycle for each dwelling 
that will undergo lead-based paint detection and hazard control, as 
follows:
    (1) XRF on-site (or supplementary laboratory) testing: Pretest 
every room or area in each dwelling unit planned for hazard abatement;
    (2) Blood testing: Of each occupant who is a child under six years 
old, according to the following schedule:
    (A) Pretest before abatement work begins;
    (B) Test within 4 weeks of reoccupancy after completion of work, 
and at 6- and 12-months after reoccupancy is optional.
    (3) Dust testing: Of every room or area in each unit, according to 
the following schedule:
    (A) Pretest before abatement work begins;
    (B) Clearance testing before reoccupying an abated unit; and
    (C) Test at 12-months after the unit is reoccupied.
    (d) Testing--guidance. (1) Generally. All testing and sampling 
shall conform to the HUD Interim Guidelines. Note that it is 
particularly important to provide this full cycle of testing for less-
than-full-abatement hazard control, even though the testing itself may 
become a substantial part of the cost per unit. It will be from this 
testing that the Department will be able to establish standards and 
expectations for the effective period of lead-safe conditions before 
the potential recurrence of any active lead hazard.
    (2) Required Thresholds for Hazard control. While the Department's 
Interim Guidelines (see Appendix A) employ two hazard-control 
thresholds, one milligram per square centimeter (1.0 mg/cm\2\) or 0.5 
percent by weight, applicants may utilize other thresholds, provided 
that the alternative threshold is justified adequately and is accepted 
by HUD. The justification must state why the applicant believes the 
proposed approach will provide satisfactory health protection for 
occupants, and must discuss cost savings and benefits expected to 
result from using the proposed approach.
    (3) Surfaces to be abated. HUD's Interim Guidelines are under 
revision, but currently require the abatement of all interior and 
exterior painted or varnished surfaces having a lead content above the 
permitted threshold. In accordance with the new guidance from Title X, 
there are now six defined hazards: lead-contaminated dust, lead-
contaminated soil, lead-based paint that is deteriorated, lead-based 
paint present in accessible surfaces that can be chewed or mouthed by 
children, lead-based paint present in friction surfaces, and lead-based 
paint present in impact surfaces. The applicant may choose to treat 
fewer surfaces or apply any other partial-abatement or hazard- control 
techniques, provided that an adequate rationale, including periodic 
monitoring, is presented to and accepted by HUD. The rationale must 
state why the applicant believes the proposed approach will provide 
satisfactory health protection for occupants and at the same time, 
provide cost savings or other benefits, and therefore would support the 
new Title X concept.
    (4) Clean-up. The applicant may employ post-abatement clean-up 
procedures that differ from the procedures in the HUD Interim 
Guidelines, provided that an adequate justification is established and 
accepted by HUD. The justification must state why the applicant 
believes the proposed approach will provide satisfactory health 
protection for occupants, and must discuss cost savings and benefits 
expected to result from using the proposed approach.
    (5) Grantees shall be required to meet the post-abatement wipe-test 
clearance thresholds contained in the HUD Interim Guidelines (see 
Appendix A). Wipe tests shall be conducted by a certified inspector who 
is independent of the abatement contractor. Dust-wipe samples must be 
analyzed by an accredited laboratory. Units shall not be reoccupied 
until acceptable clearance levels are achieved.

Section 4. Grant Application Process

4.1   Submitting Applications for Grants

    To be considered for funding an original and two copies of the 
application must be physically received in the Office of Lead-Based 
Paint Abatement and Poisoning Prevention (OLBPAPP), Department of 
Housing and Urban Development, room B-133, 451 Seventh Street, SW., 
Washington, DC 20410, no later than 3 p.m. (Eastern Time) on July 5, 
1994. Electronic (FAX or equivalent transmittal) application is not an 
acceptable transmittal mode.
    The above-stated 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 factor into 
account and make early submission of their materials to avoid any risk 
of loss of eligibility brought about by unanticipated delays, equipment 
breakdown, or delivery-related problems.
    HUD will review each application to determine whether it meets all 
of the threshold criteria established under Section 4.2 of this NOFA. 
Nonresponsive applications will be declared ineligible for further 
consideration. Applications that meet all of the threshold criteria 
will be eligible to be scored and ranked, based on the total number of 
points allocated for each of the rating factors in Section 4.3 of this 
NOFA.
    HUD intends to fund the highest ranked applications within the 
limits of funding availability, but reserves the right to advance other 
eligible applicants in funding rank, if necessary, to assure geographic 
diversity, to promote the purposes of Title X, broaden the range of 
hazard-control alternatives to be tested, or enhance data reliability.

4.2  Threshold Requirements for Category I Grants

    (a) Purpose. The application must be for funds to evaluate and 
reduce lead hazards in priority housing (see Appendix D for program-by-
program listing of eligible HUD-associated housing programs).
    (b) Eligible Applicants. An applicant must be a State or unit of 
local government that has an approved Comprehensive Housing 
Affordability Strategy (CHAS) under section 105 of the NAHA (42 U.S.C. 
12705) that includes a lead-hazard control element. Current CHAS 
regulations were published in the Federal Register on September 1, 
1992, at 57 FR 40038, as amended, in part, on March 12, 1993 at 58 FR 
13686. Applicants under this NOFA are permitted to use an abbreviated 
housing strategy, as set forth in Sec. 91.25 of the CHAS regulations). 
(See Appendix F for guidance on submitting an abbreviated CHAS.)
    (c) Matching Contribution. Each applicant shall provide a matching 
contribution of at least 10 percent of the requested grant sum. This 
may be in the form of a cash or in-kind contribution.
    (d) Contractor certification program requirement. Each applicant 
must carry out its hazard control program under an operational State-
accredited or Federal certification/training program that is at least 
as protective as the Federal Certification Program standards outlined 
in Appendix E. The standard completion time for non-conditional 
grantees is 24 months. The following additional provisions apply to 
this requirement:
    (1) To receive a grant an applicant must use contractors certified 
and workers trained within a State that currently has a lead-based 
paint certification/training program acceptable to HUD and the EPA. If 
the State in which the applicant is located has such a program, the 
applicant should furnish copies of the enabling statutes and 
regulations, as well as other appropriate documentation (e.g., 
certificates and licenses), as proof of the program.
    (2) Other applicants may be approved for a conditional grant with 
funding subject to the following provisions:
    (A) An applicant shall furnish at the time of application, letters 
of intent to establish and implement a certification program. The 
enabling legislation shall be enacted within 12 months of the Category 
I application deadline date, and the designated agency implementing the 
program shall have completed initial training sessions within 18 months 
from the deadline date of the Category I application date. Letters of 
intent shall be from the Governor of the State and an authorized 
representative of the legislative body in the State. The letters shall 
set forth their plans to make a good faith effort to enact, within 12 
months of the Category I application deadline date, enabling 
legislation that would establish or designate an appropriate department 
or office; to put an operating staff in place; and to promulgate 
appropriate regulations and complete the initial training sessions 
within 18 months of the Category I application date. These letters of 
intent shall be carried over to the grant agreement and become part of 
the grantee's assurances under it. The maximum completion time for 
conditional grants is 36 months.
    (B) There may be local government applicants in States that have 
furnished letters of intent and have made a good faith effort to carry 
out that intent, but whose State governments have been unable to comply 
with the 12-month or 18-month time table. These local governments may, 
with HUD approval, choose to use workers and contractors certified or 
licensed under accredited programs of other States. The maximum 
completion time for such conditional, local-government grantees is 42 
months; the extra 6 months is made available to arrange for out-of-
State certified performers.
    (C) Except as provided in paragraph (d)(2)(B) of this section, if 
the commitment to establish a certification/training program is not 
fulfilled within the stated time, the conditional grant agreement shall 
immediately terminate.
    (e) Continued Availability of Hazard Reduced Housing to Lower 
Income Families. Units in which lead hazards have been treated under 
this program shall then be occupied by and continue to be available to 
low- and moderate-income residents as defined under section 215 of the 
NAHA.
    (f) Cooperation With Related Research and Evaluation. Applicants 
shall cooperate fully with any research or evaluation sponsored by HUD 
and associated with this grant program, including preservation of the 
data and records of the project and compiling requested information in 
formats provided by the researchers or evaluators. This cooperation may 
also include the compiling of certain relevant local demographic, 
dwelling unit, and participant data not contemplated in applicant's 
original proposal. Participant data shall be subject to Privacy Act 
protections. For estimating purposes, an applicant shall devote three 
percent of the total grant sum for data collection and evaluation 
purposes, as discussed in the Section 3.4, Eligibility, of this NOFA.

4.3  Rating Factors

    HUD will use the following technical and financial criteria, 
subject to the qualification discussed in the second paragraph of this 
section, to rate and rank applications received in response to this 
NOFA. The technical quality of an application will be rated, and then 
the strength, quality, and completeness of the financial and resources 
plan will be used to assess how well the technical plan is likely to be 
carried out using the available resources. The total number possible 
for the rating factors is 120 points, including potential bonus points, 
if awarded.
    Applicants are advised, however, that in selecting grantees under 
this NOFA, the Secretary is unlikely to select applicants who were 
previously funded under the FY 1993 NOFA, issued June 4, 1993 (57 FR 
31848). This selection prerogative will be exercised under the 
Secretary's authority to ensure that available funds are used 
effectively and to promote the purposes of Title X. See, section 
1011(d)(5) of Title X (42 U.S.C. 4852(d)(5)).
    (a) Strategy. (50 points)--The quality and cost effectiveness of 
the proposed lead-based paint hazard control strategy. The strategy 
should include:
    (1) The hazard-control program, including selection of subgrantees 
and other subrecipients, abatement/hazard control methods and levels of 
treatment, the quality of prior abatement experience, especially for 
recipients of previous hazard control grants, financing mechanisms, 
community education, temporary relocation, and the degree to which the 
strategy focuses on households in priority housing with children under 
the age of 6 years (20 points);
    (2) A management and budget plan for the whole grant and for each 
major component funded directly from the grant. The plan shall include 
a year-by-year spreadsheet budget for the total grant, a task-by-task 
spreadsheet budget for the total grant, and an overall source and use 
of funds diagram. (See Appendix C for a sample; no form is provided 
because programs vary too widely.) The source and use diagram amounts 
for grant use must agree with spreadsheet totals. Provide a year-by-
year spreadsheet for each major subtask shown on the diagram. The plan 
shall include an organization chart and a narrative describing how the 
parts of the grant program will be coordinated and managed. Provide a 
brief narrative for each major budget subtask and each functional cost 
element, explaining its planned use. (10 points);
    (3) The identification, inspection, and testing of priority housing 
to be treated. Housing recently inspected (within 12 months of grant) 
and identified prior to the date of the grant as having lead-based 
paint may be included (8 points); and
    (4) A program for education and outreach to the community on the 
hazards of lead-based paint, including blood screening of young 
children and, if necessary, referral for medical treatment (12 points).
    (b) Applicant Capacity and Commitment to Hazard control. (40 
points)--The capacity of the applicant to initiate and carry out the 
lead-based paint testing and hazard-control program successfully within 
the time frames set forth in this NOFA. Show that the proposed staff 
skills match the proposed program of work described. Elements to be 
considered include:
    (1) Demonstrated knowledge and experience of the proposed project 
manager in planning and managing large and complex interdisciplinary 
programs involving housing rehabilitation, public health, and 
environmental management. The percentage of time of the project manager 
to be devoted to this project is a significant factor, and must be 
disclosed in the application. (15 points);
    (2) Demonstrated knowledge and experience of the staff assigned to 
this project in carrying out these undertakings, including the 
percentage of time each person will devote to the project (15 points); 
and
    (3) Institutional capacity, demonstrated by the experience and 
continuing capacity of the jurisdiction to initiate and implement 
similar environmental and housing projects. Applicant should describe 
previous related efforts and the current capacity of its agencies (10 
points).
    (c) Applicant's Matching Contribution and Other Resources (10 
points)--At a minimum, the applicant shall provide a matching 
contribution of at least 10 percent of the requested grant sum. That 
contribution may be in cash or in kind. In-kind contributions shall be 
given a monetary value. Community Development Block Grant funds may be 
considered part of the matching contribution, but only when they are 
specifically dedicated to an integral part of the project. This rating 
factor provides points only for additional resources that exceed the 
minimum required 10% match. Each source of contributions, both for the 
required minimum and additional amounts, shall be made in a letter of 
commitment from the funding entity, whether a public or private source, 
and shall describe the contributed resources that will be used in the 
program. Absence of required letters offering specific details will 
result in a reduced rating under this factor.
    (d) Community and Private Sector Participation (10 points)--The 
extent to which the applicant has enlisted the broad participation of 
neighborhood, community, and nongovernmental organizations; the private 
sector; and other governmental units in the hazard control program 
through specific commitments of time, effort, and resources. These 
commitments include consultation, marketing, fund-raising, and other 
economic lift activities, such as employment of lower-income 
neighborhood residents in the hazard control work. Evidence of these 
commitments should include names and proposed roles of these 
participants, and plans for employment of lower-income residents. 
Absence of employment commitments and letters of participation will 
result in a reduced rating under this factor.

4.4  Bonus Points

    (a) Five bonus points (5 points) will be awarded if the applicant 
is either: a State in which there has been no award of a lead hazard 
control grant in previous rounds, or a local government in a State in 
which there has been no previous award. These extra points are to 
encourage the broadest diversity of States and local governments to 
develop lead hazard control programs.
    (b) The following five bonus points also may be awarded to 
applicants that propose credible and sustainable mechanisms to meet any 
of the following needs: (5 points)
    (1) The establishment of stable, long-term public or private 
sources of funds for State/local testing and hazard control (see 
Section 3.4(c)(2)(ii) of this NOFA). (2 points);
    (2) Land records tracking system. Applicants are encouraged to 
establish in their land records files a mechanism for recording and 
tracking in some detail the nature and location of prior lead-based 
paint hazard control activities by specific housing units (see Section 
3.4(c)(2)(iii) of this NOFA). (2 points); and
    (3) The establishment of a State-level data collection mechanism to 
track all lead-based paint testing and hazard-control activities in the 
State (see Section 3.4(c)(2)(i) of this NOFA). (1 point).

Section 5. Checklist of Application Submission Requirements

5.1  Applicant Data

    Applicants must complete and submit applications in accordance with 
the instructions contained in the application kit. The following is a 
checklist of the application contents that will be specified in the 
application kit:
    (a) The name, mailing address, telephone number, and principal 
contact person of the applicant. If the applicant has consortium 
associates, partners, major subcontractors, or joint venture 
participants contributing resources to the project, similar information 
shall also be provided for each of them.
    (b) Proof of State accreditation requirements for lead-based paint 
certification/training programs applicable to the contractors, 
inspectors, and workers that will be used by the applicant, or letters 
of intent from both the Governor and an authorized representative of 
the legislative body stating that a good faith effort will be made to 
have a certification/training program authorized within 12 months, and 
operational within 18 months, of the Grant application deadline date 
(see section 4.2(g) of this NOFA regarding this requirement).
    (c) Evidence of the applicant's commitment to eliminating or 
reducing significant lead-based paint hazards in housing as detailed in 
the applicant's strategy for lead-based paint hazard control (see the 
first rating factor, Strategy, in Section 4.3 of this NOFA).
    (d) A detailed description of the funding mechanism, selection 
process, and other proposed activities that the applicant plans to use 
to assist the direct performers of hazard control activities under this 
grant.
    (e) The management and task budget plan that includes a summary 
diagram (see Appendix C) showing the source and use of all grant funds. 
The plan shall detail the proposed costs and schedules for starting and 
completing each task or major subset of project activities. The budget 
shall provide for each task and major subtask that is funded by the 
grant. All major tasks and subtasks, including data collection (allow 
3% of the total grant sum requested), should be estimated (even though 
not precisely known). There shall be a separate estimate for the 
overall grant management element, ``Administrative Costs,'' which are 
more fully defined in Appendix B. The budget shall include not more 
than 10 percent for administrative costs and not less than 90 percent 
for direct project elements (including data collection; see paragraph 
(e), Eligible Activities, in Section 3.4 of this NOFA). Estimates are 
not required for activities fully funded by local matching funds, but 
those funding sources should be shown as lump-sum amounts in the Source 
and Use diagram (see Appendix C).
    (f) Evidence of a continuing capacity of the applicant to undertake 
a lead-based paint testing and abatement program safely and 
effectively.
    (g) Information itemizing what constitutes the applicant's matching 
contribution, including values placed on donated in-kind services; 
letters or other evidence of commitment from donors; and the amounts 
and sources of coordinated resources.
    (h) Information on the names and proposed roles of local 
participating community- or neighborhood-based groups or organizations, 
including local businesses.
    (i) Completed Forms HUD-2880, Applicant/Recipient Disclosure/Update 
Report, and SF-LLL, Disclosure of Lobbying Activities, where applicable 
(see section on Other Matters in this NOFA).
    (j) Standard Forms SF-424 and 424-B, and other certifications and 
assurances listed in section 5.3 of this NOFA.
    (k) A copy of the applicant's lead-hazard control element for its 
Comprehensive Housing Affordability Strategy (CHAS).

5.2  Proposed Activities

    (a) Affected population to be served. The applicant shall describe 
the size and general characteristics of the target housing within its 
jurisdiction, including a description of the housing's location, 
condition, and occupants, and a current estimate of the number of 
children under the age of six in these units. Maps should be included. 
First preference shall be given to priority housing units. Vacant 
housing that subsequently will be occupied by low-income renters should 
also be included in this description. In addition, as a measure of its 
ongoing commitment to lead-based paint programs, the applicant shall 
provide information on the number of children diagnosed as being lead 
poisoned within the previous five years and the remedial measures that 
were taken to respond to these diagnoses.
    (b) Discussion of lead-based paint activities. The applicant shall 
provide a reasoned discussion of the proposed hazard control 
activities, including, but not limited to, information on the 
following:
     Overall hazard control strategy, including priority 
setting;
     Specific neighborhoods, census tracts or other locators of 
the housing units targeted for abatement (area and local maps shall be 
included);
     Inspection and testing of all lead-based paint-hazard 
housing to be treated as part of this project;
     Blood testing of children under the age of six, and 
medical referral for children found to have elevated blood-lead levels;
     Hazard-control methods, including interim controls, in-
place-management, less than full abatement and full abatement. Include 
lead-based paint hazard controls in housing undergoing renovation 
funded by other sources, but included as part of this project;
     Community education;
     Relocation;
     Coordination and integration with public health and 
housing programs to effect lead-based paint hazard control;
     Data collection, documentation, and evaluation;
     Mechanisms that the applicant proposes to employ to 
provide financial assistance to low- and moderate-income owners and 
low-income renters under this grant program for abatement. The 
applicant may provide the services through a variety of programs, 
including grants, equity, loans, investment or seed money for non-
profit performers' revolving loan funds, loan funds, loan guarantees, 
interest write-downs, or other forms of assistance that may be approved 
by the Department. Program income from loan repayments may be used only 
for hazard-control related activities; and
     Management and staffing of the project, including the 
extent of time commitments and areas of specialization and expertise.
    (c) Identification of significant-hazard housing. The applicant 
must demonstrate a commitment to focus its efforts on the 
identification of housing units with significant lead-based paint 
hazards, particularly among dwellings for lower income families, so as 
to concentrate its resources on the greatest needs first.
    (d) Safe and effective conduct of the abatement. The applicant must 
demonstrate willingness and readiness to oversee the safe and effective 
conduct of the hazard-control work, as provided in the application kit.

5.3 Certifications and Assurances

    The following certifications and assurances apply to all 
applications.
    (a) The application shall contain an assurance that the applicant 
will comply with the environmental laws and authorities at 24 CFR 50.4, 
and that it will:
    (1) Supply information necessary for HUD to perform any required 
environmental review of each property;
    (2) Carry out mitigating measures required by HUD or select 
alternate eligible property; and
    (3) Not commit HUD or local funds to, or carry out, any program 
activities for any property until HUD approval is received.
    (b) The application shall contain a certification that the 
applicant will comply with the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970; implementing regulations at 
49 CFR part 24; and HUD Handbook 1378, Tenant Assistance, Relocation 
and Real Property Acquisition.
    (c) The application shall be in compliance with Federal civil 
rights laws and requirements.
    (d) The application shall contain assurances that the applicant 
will comply with the requirements of the Fair Housing Act (42 U.S.C. 
3601-19); Executive Order 11063; Title VI of the Civil Rights Act of 
1964, pertaining to equal opportunity and nondiscrimination in housing; 
and all regulations issued in accordance with these authorities.
    (e) The application shall include assurances of nondiscrimination 
on the basis of age or handicap, in compliance with the Age 
Discrimination Act of 1975, section 504 of the Rehabilitation Act of 
1973, and all regulations issued pursuant to these authorities.
    (f) The application shall contain a certification that the 
applicant will comply with the requirements of section 3 of the Housing 
and Urban Development Act of 1968, pertaining to the provision of 
economic opportunities for low- and very low- income persons, and 
implementing regulations at 24 CFR part 135.
    (g) The applicant shall certify that its financial management 
system meets the standards for fund control and accountability as 
prescribed by 24 CFR 85.20.
    (h) The applicant shall assure that it will conduct dust-wipe 
testing in all units in which lead-hazard control occurs, both prior to 
and immediately after the hazard-control treatment and clean up, and 
that the applicant will conduct dust-wipe testing 12-months after 
abatement.
    (i) The applicant shall assure that it will test and record the 
blood-lead level of all children under the age of six occupying 
affected units prior to abatement. Children determined to have elevated 
blood-lead levels, using CDC, October 1991 Guidelines (see Appendix A 
to this NOFA), shall be provided appropriate medical treatment, as set 
forth by the CDC. If there is an existing, funded program, the costs of 
blood testing and medical follow-up are eligible for inclusion in the 
computation of the other resources contribution.
    (j) The applicant shall assure that this application represents an 
expansion of the delivery of testing and abatement services and does 
not replace existing resources dedicated to any ongoing project.
    (k) The application shall contain any other assurances that HUD has 
included in the application kit under this NOFA.

Section 6. Corrections to Deficient Applications

    HUD will notify an applicant, in writing, shortly after the 
expiration of the NOFA response deadline, of any minor deficiencies in 
the application that are not of a substantive nature, such as an 
omitted certification or illegible signature. The applicant shall 
submit corrections, which must be received at the Office of Lead-Based 
Paint Abatement and Poisoning Prevention within 21 calendar days from 
the date of HUD's letter notifying the applicant of any minor 
deficiencies. Electronic (FAX) transmittal is not an acceptable 
transmittal mode. Corrections to minor deficiencies will be accepted 
within the 21-day time limit. Applicants that do not make timely 
response to requests for deficiency corrections shall be removed from 
further consideration for an award.
    Applicants shall only be permitted to correct those deficiencies 
determined by HUD to be minor. Deficiencies determined by HUD to be 
substantive may not be corrected.

Section 7. Administrative Provisions

7.1 Obligation of Funds

    (a) Provision of funds. Funding shall be provided on a cost-
reimbursable basis not to exceed the amount of the grant, except as 
otherwise provided in Sections 7.2 and 7.3 of this NOFA. There shall be 
set aside from the final grant payment sufficient funds to pay for the 
6-month and 12-month post-abatement testing for blood-lead levels and 
dust-wipe levels in the dwelling, as provided in paragraph (c) of this 
section.
    (b) Advance funds. After a grant agreement has been executed with a 
grantee that has an acceptable, existing State certification program 
(in compliance with Appendix E requirements), HUD may, upon written 
request, provide to the grantee a cash advance that shall not exceed 10 
percent of the grant amount and shall be limited to the minimum amount 
needed for the actual, immediate cash requirements of the grantee in 
carrying out the purposes of this NOFA. Similarly, those grantees whose 
awards are conditioned upon proof of newly executed executive or 
legislative authority to carry out the requirements of this NOFA may 
request advances of funds, not to exceed five percent (5%) of the total 
grant amount, for purposes of implementing certification or licensing 
requirements and preparing certain planning documents for HUD review 
and approval. Advance funds may be divided between administrative costs 
and direct project costs. The applicant shall provide justification for 
the division, and HUD may accept or modify the applicant's proposed 
division.
    (c) Availability of remaining funds. HUD will not make additional 
payments, beyond the advance funds described in paragraph (b) of this 
section, from the amount awarded to a grantee until the grantee's 
proposed contractors and workers have met the certification and 
training requirements of a State-accredited program. All additional 
payments will be made on a cost-reimbursable basis, except that a 10 
percent final payment shall be made upon completion of all tasks and 
delivery of an acceptable final report, subject to the set aside for 
post-testing described in paragraph (a) of this section. The grantee 
shall specify in its request for final payment the amount of funds to 
be set aside from the final 10 percent for the 6- and 12-month post-
abatement dust-wipe and blood tests. When results of these tests are 
forwarded to HUD, the testing set-aside funds will be released by HUD 
to the grantee.

7.2  Increases of Awards

    After the signing of the grant agreement and initial obligation of 
funds, HUD will not increase the grant sum or the total amount to be 
obligated based upon the original scope of work. Amounts awarded may 
only be increased as provided in section 7.3, Deobligation, of this 
NOFA.

7.3  Deobligation

    (a) Reasons for deobligation. HUD may deobligate amounts for the 
advance or grant if proposed activities are not initiated or completed 
within the required time after selection. The grant agreement will set 
forth in detail other circumstances under which funds may be 
deobligated and other sanctions imposed.
    (b) Treatment of deobligated funds. HUD may undertake any one, or a 
combination, of the following actions, with respect to deobligated 
funds:
    (1) Readvertise the availability of funds that have been 
deobligated under this section in a new NOFA;
    (2) Reconsider applications that were submitted in response to the 
most recently published NOFA, and select additional applications for 
funding with deobligated funds. These selections will be made in 
accordance with the selection process described in the applicable NOFA;
    (3) Fund supplemental applications from existing grantees for the 
performance of expanded scopes of work that may be of benefit to the 
overall program; and
    (4) For deobligated funds that total less than a minimum grant 
amount ($1 million), issue a solicitation to provide technical 
assistance or other program support services.

7.4  Reports

    The grantee shall submit the following types of reports:
    (a) Annual reports. The grantee shall submit to HUD a report for 
any fiscal year in which the grantee expends grant funds. Each report 
shall be due six weeks after the end of the Federal Fiscal Year 
(September 30). The report shall:
    (1) Describe the use of the amounts received;
    (2) State the number of risk assessments and the number of 
inspections conducted in residential dwellings;
    (3) State the number of residential dwellings in which lead-based 
paint hazards have been abated, organized by method of abatement used;
    (4) State the number of residential dwellings in which lead-based 
paint hazards have been reduced through interim controls; and
    (5) Provide any other information that the Secretary determines to 
be appropriate.
    (b) Progress Reports. The grantee shall submit regular progress 
reports in accordance with HUD's Management Reporting System. These 
progress reports shall consist of graphic reports showing expenditures 
and technical progress to date, compared with the original plan, and a 
narrative describing important events and problems encountered during 
the period. The progress reports:
    (1) Shall be filed quarterly during the planning period (and during 
the waiting period for the establishment of a State Certification 
Program);
    (2) Shall be filed monthly during the active abatement-work period; 
and
    (3) May revert to being filed quarterly after completion of active 
abatement work.
    (c) Final Report/Case Study. The grantee shall submit a final 
report/case study in accordance with the procedures of HUD's Management 
Reporting System. The report shall summarize the applicant's plans, 
execution of the plans, and lessons learned. The report need not be 
lengthy, but should be of a quality and detail to provide a free-
standing description to any outside reader of all of the applicant's 
work and achievements under the grant.

Section 8. Other Matters

Environmental Review

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations in 24 CFR part 50, 
which implements 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 during regular business hours in the 
Office of the General Counsel, Rules Docket Clerk, Department of 
Housing and Urban Development, 451 Seventh Street SW., room 10276, 
Washington, DC 20410.

Federalism Executive Order

    The General Counsel, as the Designated Official under section 8(a) 
of Executive Order 12612, Federalism, has determined that the policies 
and procedures contained in this NOFA will not have substantial direct 
effects on States or their political subdivisions, or the relationship 
between the Federal government and the States, or the distribution of 
power and responsibilities among the various levels of government. 
Under this NOFA, grants will be made for the abatement of significant 
lead-based paint and lead-dust hazards in low- and moderate-income 
owner-occupied units and privately owned low-income rental units. 
Although the Department encourages States and local governments to 
initiate or expand lead-based paint certification, testing, abatement, 
and financing programs, any action by a State or local government in 
these areas is voluntary. Because action is not mandatory, the NOFA 
does not impinge upon the relationships between the Federal government 
and State and local governments, and the notice is not subject to 
review under the Order.

Family Executive Order

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this document will likely 
have a beneficial impact on family formation, maintenance and general 
well-being. This NOFA, insofar as it funds repairs to privately owned 
housing, will assist in preserving decent housing stock for resident 
families. Accordingly, since the impact on the family is beneficial, no 
further review is considered necessary.

Section 102 of the HUD Reform Act--Documentation and Public Access 
Requirements--Applicant/Recipient Disclosures

    Documentation and public access requirements. 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 documentation and public access 
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 part 12, subpart C, and the 
notice published in the Federal Register on January 16, 1992 (57 FR 
1942), for further information on these disclosure requirements.)

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) 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.

Procurement Standards

    All grantees are governed by and should consult 24 CFR parts 85.36 
and 85.37, which detail procedures for subcontracts and subgrants by 
States and local governments. Under Sec. 85.36, which pertains to 
subcontracts, small purchase procedures can be used for contracts up to 
$25,000, and require price or rate quotations from several sources 
(three is acceptable); above that threshold, more formal procedures are 
required (note that Sec. 85.36 treats States differently than local 
governments). Section 85.37 procedures apply to subgrants, and are not 
as restrictive. If States have more restrictive standards for contracts 
and grants, the State standards can be applied. All grantees should 
consult and become familiar with Secs. 85.36 and 85.37 before issuing 
subcontracts or subgrants.

Davis-Bacon Act

    The Davis-Bacon Act does not apply to this program. However, if 
grant funds are used in conjunction with other Federal programs in 
which the provisions of Davis-Bacon apply, then Davis-Bacon provisions 
would apply to the extent required under the other Federal programs.

Prohibition Against Lobbying of HUD Personnel

    Section 112 of the Housing and Urban Development Reform Act of 1989 
(Pub.L. 101-235, approved December 15, 1989) (Reform Act) added a new 
section 13 to the Department of Housing and Urban Development Act (42 
U.S.C. 3531 et seq.). Section 13 contains two provisions concerning 
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 regulations codified in part 86. 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 part 86.
    Any questions concerning the rule should be directed to the Office 
of Ethics, Room 2158, Department of Housing and Urban Development, 451 
Seventh Street, SW, Washington DC 20410. Telephone: (202) 708-3815 
(TDD/Voice). (This is not a toll-free number.) Forms necessary for 
compliance with the rule may be obtained from the local HUD office.

Prohibition Against Advance Information on Funding Decisions

    Section 103 of the Reform Act proscribes the communication of 
certain information by HUD employees to persons not authorized to 
receive that information during the selection process for the award of 
assistance. HUD's regulation implementing Section 103 is codified at 24 
CFR part 4 (see 56 FR 22088, May 13, 1991). In accordance with the 
requirements of Section 103, HUD employees involved in the review of 
applications and in the making of funding decisions are restrained by 
24 CFR 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 by 24 CFR part 4. 
Applicants who have questions should contact the HUD Office of Ethics: 
(202) 708-3815 (TDD/Voice). (This is not a toll-free number.)
    The Office of Ethics can provide information of a general nature to 
HUD employees, as well. However, a HUD employee who has specific 
program questions, such as whether particular subject matter can be 
discussed with persons outside the Department, should contact his or 
her Regional or Field Office Counsel, or Headquarters Counsel for the 
program to which the question pertains.

    Authority: 42 U.S.C. 4821-4846; 42 U.S.C. 3535(d).

    Dated: April 14, 1994.
Arthur S. Newburg,
Director, Office of Lead-Based Paint Abatement and Poisoning 
Prevention.

Appendix A--Relevant Federal Regulations and Guidelines

    To secure any of the documents listed, call the listed telephone 
number (generally not toll-free).

Regulations

1. Worker Protection: OSHA regulations (phone (202) 755-1822):
    --General Industry Lead Standard, 29 CFR 1910.1025;
    --Lead Exposure in Construction, 29 CFR 1926.62, and appendices 
A, B, C, and D; published 58 FR 26590 (May 4, 1993).
2. Waste Disposal: 40 CFR parts 260-268 (EPA regulations); phone 1-
800-424-9346.

Guidelines

1. Lead-Based Paint: Interim Guidelines for Hazard Identification 
and Abatement in Public and Indian Housing; HUD, revised May, 1991 
(available for a charge; phone 800-245-2691):

Post Abatement Clearance, No More Than

200 Micrograms/Sq. Ft. (Floors)
500 Micrograms/Sq. Ft. (Window Sills)
800 Micrograms/Sq. Ft. (Window Wells)
2. HUD Handbook 1378, Tenant Assistance, Relocation and Real 
Property Acquisition; phone (202) 708-0336.
3. Preventing Lead Poisoning in Young Children; Centers for Disease 
Control, October 1991 (phone (404) 488-4880.

Reports

1. Comprehensive and Workable Plan for the Abatement of Lead-Based 
Paint in Privately Owned Housing: Report to Congress (HUD, December 
7, 1990) (available for a charge; phone 800-245-2691).

Information on Content of State-Accredited Contractor Certification and 
Worker Training Programs

    Contact: EPA Office of Pollution Prevention and Toxics, Division 
of Environmental Assistance; phone (202) 260-3790.

CDC Classes of Blood Lead Levels in Children

------------------------------------------------------------------------
          Concentration                                                 
  Class    (g/                      Comment                    
               dL)                                                      
------------------------------------------------------------------------
I                  <9    Child is not considered to be lead-poisoned.   
IIA             10-14    Large number or proportion of children with    
                          blood lead levels in this range should trigger
                          community-wide childhood lead poisoning       
                          prevention activities. Children in this range 
                          may need to be rescreened more frequently.    
IIB             15-19    Child should receive nutritional and           
                          educational interventions and more frequent   
                          screening. If the blood lead level persists,  
                          environmental investigation and intervention  
                          should be done.                               
III             20-44    Child should receive environmental evaluation  
                          and remediation and a medical evaluation; may 
                          need pharmacologic treatment of lead          
                          poisoning.                                    
IV              45-69    Child will need both medical and environmental 
                          interventions, including chelation therapy.   
V                 >70    Child is a medical emergency. Medical and      
                          environmental management must begin           
                          immediately.                                  
------------------------------------------------------------------------

Appendix B--``Administrative Costs''

I. Purpose

    The intent of this HUD grant program is to allow the Grantee to 
be reimbursed for the reasonable direct and indirect costs, subject 
to a top limit, for overall management of the grant. In most 
circumstances the Grantee, whether a state or a local government, is 
expected to serve principally as a conduit to pass funding to 
subgrantees, which are to be responsible for performance of the 
lead-hazard reduction work. Congress set a top limit of ten (10) 
percent of the total grant sum for the Grantee to perform the 
function of overall management of the grant program, including 
passing on funding to subgrantees. The cost of that function, for 
the purpose of this grant, is defined as the ``administrative cost'' 
of the grant, and is limited to ten (10) percent of the total grant 
amount. The balance of ninety (90) percent or more of the total 
grant sum is reserved for the subgrantee/direct-performers of the 
lead-hazard reduction work.

II. Administrative Costs: What They Are Not

    For the purposes of this HUD grant program for States and local 
governments to provide support for the evaluation and reduction of 
lead-hazards in low and moderate-income, private target housing: the 
term ``administrative costs'' should not be confused with the terms 
``general and administrative cost'', ``indirect costs'', 
``overhead'', and ``burden rate''. These are accounting terms, 
usually represented by a government-accepted standard percentage 
rate. The percentage rate allocates a fair share of an 
organization's costs that cannot be attributed to a particular 
project or department (such as the chief executive's salary or the 
costs of the organization's headquarters building) to all projects 
and operating departments (such as the Fire Department; the Police 
Department; the Community Development Department, the Health 
Department or this program). Such allocated costs are added to those 
projects' or departments' direct costs to determine their total 
costs to the organization.

III. Administrative Costs: What They Are

    For the purposes of this HUD grant program, ``Administrative 
Costs'' are the Grantee's allowable direct costs for the overall 
management of the grant program plus the allocable indirect costs. 
The allowable limit of such costs that can be reimbursed under this 
program is ten (10) percent of the total grant sum. Should the 
Grantee's actual costs for overall management of the grant program 
exceed ten (10) percent of the total grant sum, those excess costs 
shall be paid for by the Grantee. However, excess costs paid for by 
the Grantee may be shown as part of the requirement for cost-sharing 
funds to support the grant.

IV. Administrative Costs: Definition

A. General

    Administrative costs, are the allowable, reasonable, and 
allocable direct and indirect costs related to the overall 
management of the HUD grant for lead-hazard reduction activities. 
Those costs shall be segregated in a separate cost center within the 
Grantee's accounting system, and they are eligible costs for 
reimbursement as part of the grant, subject to the ten (10) percent 
limit. Such administrative costs do not include any of the staff and 
overhead costs directly arising from specific subgrantee program 
activities eligible under FY 1992 NOFA Section II.e.(5) (a) and (b) 
(ii) through (vi), because those costs are eligible for 
reimbursement under a separate cost center as a direct part of 
project activities.
    The Grantee may elect to serve solely as a conduit to 
subgrantees, who will in turn perform the direct program activities 
eligible under NOFA Section II.E.(5) (a) and (b) (ii) through (vi), 
or the grantee may elect to perform all or a part of the direct 
program activities in other parts of its own organization, which 
shall have their own segregated cost centers for those direct 
program activities. In either case, not more than 10 percent of the 
total HUD grant sum may be devoted to administrative costs, and not 
less than 90% of the total grant sum shall be devoted to direct 
program activities. Grantee shall take care not to mix or attribute 
administrative costs to the direct project cost centers.

B. Specific

    Reasonable costs for the Grantee's overall grant management, 
coordination, monitoring, and evaluation are eligible administrative 
costs. Subject to the (10) percent limit, such costs include, but 
are not limited to, necessary expenditures for the following, goods, 
activities and services:
    (1) Salaries, wages, and related costs of the Grantee's staff, 
the staff of affiliated public agencies, or other staff engaged in 
Grantee's overall grant management activities. In charging costs to 
this category the recipient may either include the entire salary, 
wages, and related costs allocable to the program for each person 
whose primary responsibilities (more than 65% of their time) with 
regard to the grant program involve direct overall grant management 
assignments, or the pro rata share of the salary, wages, and related 
costs of each person whose job includes any overall grant management 
assignments. The Grantee may use only one of these two methods 
during this program. Overall grant management includes the following 
types of activities:
    (a) Preparing grantee program budgets and schedules, and 
amendments thereto;
    (b) Developing systems for the selection and award of funding to 
subgrantees and other subrecipients;
    (c) Developing suitable agreements for use with subgrantees and 
other subrecipients to carry out grant activities;
    (d) Developing systems for assuring compliance with program 
requirements;
    (e) Monitoring subgrantee and subrecipient activities for 
progress and compliance with program requirements;
    (f) Preparing presentations, reports, and other documents 
related to the program for submission to HUD;
    (g) Evaluating program results against stated objectives; and
    (h) Providing local officials and citizens with information 
about the overall grant program. (However, a more general education 
program, helping the public understand the nature of lead hazards, 
lead hazard reduction, blood-lead screening, and the health 
consequences of lead poisoning is a direct project support activity, 
under NOFA Section II.E. (5) (b), and should not be attributed to 
administrative costs, but to its own cost center.)
    (i) Coordinating the resolution of overall grant audit and 
monitoring findings;
    (j) Managing or supervising persons whose responsibilities with 
regard to the program include such assignments as those described in 
paragraphs (a) through (i).
    (2) Travel costs incurred for official business in carrying out 
the overall grant management;
    (3) Administrative services performed under third party 
contracts or agreements, for services directly allocable to overall 
grant management such as overall-grant legal services, overall-grant 
accounting services, and overall-grant audit services;
    (4) Other costs for goods and services required for and directly 
related to the overall management of the grant program, including 
such goods and services as telephone, postage, rental of equipment, 
renter's insurance for the program management space, utilities, 
office supplies, and rental and maintenance (but not purchase) of 
office space for the program.
    (5) The fair and allocable share of Grantee's general costs that 
are not directly attributable to specific projects or operating 
departments such as: The Mayor's and City Council's salaries and 
related costs; the costs of the City's General Counsel's office, not 
charged off to particular projects or operating departments; and the 
costs of the City's Accounting Department not charged back to 
specific projects or operating departments. (If Grantee has an 
established burden rate it should be used; if not Grantee shall be 
assigned a negotiated provisional burden rate, subject to final 
audit.)
    To repeat, all of the above activities goods and services: 1.a-
j., 2., 3., 4., and 5. are subject to the ten (10) percent limit.

BILLING CODE 4210-32-P

TN21AP94.000


TN21AP94.001


TN21AP94.002


BILLING CODE 4210-32-C

Appendix E--Elements of a State Certification Program

    Congress has assigned Federal responsibility to the 
Environmental Protection Agency (EPA) for the definition, 
implementation, and oversight of State Certification Programs for 
workers, contractors, and inspectors engaged in the detection and 
reduction of lead-based paint hazards. The Department of Housing and 
Urban Development (HUD) has a strong interest in the strength and 
rigor of the EPA program, because HUD must rely on the effectiveness 
of the EPA program to assure the safe detection and reduction of 
those lead-based paint hazards.
    In October 1992, Congress passed the Residential Lead-Based 
Paint Hazard Reduction Act. This legislation requires EPA to 
promulgate regulations governing the accreditation of training 
programs, the certification of contractors and the training of 
workers engaged in lead-based paint activities. These regulations 
must contain work practice standards. Finally, EPA must develop a 
model State program containing procedures for States to gain EPA 
approval of their programs.
    Under the statute, lead-based paint activities are defined as:
    (a) In the case of target housing: risk assessment, inspection, 
and abatement; and
    (b) In the case of any public building constructed before 1978, 
commercial building, bridge, or other structure or superstructure: 
identification of lead-based paint and materials containing lead-
based paint, deleading, removal of lead from bridges, and 
demolition.
    EPA is currently developing the regulations required under this 
new legislation. However, since EPA's regulations are not currently 
available, States that commit to develop appropriate accreditation 
and certification programs as required by this NOFA are encouraged 
to enact broad enabling statutes. Legislation that is overly 
prescriptive may need to be modified in order to be acceptable under 
EPA's upcoming regulations.
    HUD and EPA can, however, at this time define a minimum set of 
basic elements that must be contained in the enabling legislation. 
They are enumerated in #1 below. HUD and EPA also believe that 
additional elements should be included in legislation. These are 
identified in #2 below.
    1. The enabling statute, at a minimum, shall contain the 
following elements:
    a. Agency. Establish an agency, or agencies, or designate an 
existing State agency, or agencies, to implement the State program.
    b. Certification. Authorize and direct the agency, or agencies, 
to promulgate regulations requiring the certification of 
contractors, that offer to perform lead-hazard detection or lead-
hazard reduction services.
    c. Worker Training. Authorize and direct the agency, or agencies 
to promulgate regulations setting training requirements for workers, 
inspectors, and other persons directly and substantially involved in 
the performance of lead-based paint activities. Such regulations 
shall establish minimum acceptable levels of training, and periodic 
refresher training for each class of workers, and require that 
training shall be provided by accredited training providers.
    d. Accreditation of Training Providers. Authorize and direct the 
agency, or agencies, to promulgate regulations to establish the 
accreditation of training programs. The legislation shall require 
that the regulation cover the following: (1) Minimum requirements 
for the accreditation of training providers; (ii) minimum training 
curriculum requirements; (iii) minimum training hour requirements; 
(iv) minimum hands-on training requirements; (v) minimum trainee 
competency and proficiency requirements; and (vi) minimum 
requirements for training program quality control.
    e. Standards. Authorize and direct the agency, or agencies, to 
promulgate regulations establishing standards for performing lead-
based paint activities, taking into account reliability, 
effectiveness, and safety.
    f. Compliance. Authorize and direct the agency, or agencies, to 
promulgate regulations that will require any activity, involving 
lead-hazard detection or lead-hazard reduction procedures, to comply 
with agency regulations and to use certified and accredited 
personnel.
    g. Enforcement. Authorize and direct the agency, or agencies, to 
promulgate regulations that provide for the enforcement of the State 
Certification Program, and that establish suitable sanctions, for 
those who fail to comply with program requirements. The regulations 
shall include provisions for the decertification and deaccreditation 
of programs and personnel.
    h. Federal Funding Eligibility. Authorize and direct the agency, 
or agencies, to revise its regulations and procedures from time to 
time to assure that State lead-hazard activities continue to be 
eligible for Federal funding, by meeting the State certification 
program standards and other requirements that may from time to time 
be promulgated by EPA, HUD, and such other Federal agencies as may 
have jurisdiction over lead hazards;
    i. Reciprocity. Authorize the agency, or agencies, to establish 
liaison with the other states having a State Certification Program 
to assure the maximum consistency of program requirements, in order 
to facilitate reciprocity of certification and accreditation among 
the several States;
    2. In addition to the mandatory elements present in #1 above, 
HUD and EPA strongly recommend that the enabling legislation 
include:
    a. Staffing. Authorize and direct the agency, or agencies, to 
dedicate suitable staff and to acquire suitable space, equipment, 
supplies and other items necessary for the operations of the 
program.
    b. Fees. Authorize the agency, or agencies, to collect such fees 
for certification, accreditation, and other reviews as State policy 
may determine to be necessary to help support the activities of the 
agency or agencies.
    c. Laboratory Oversight. Authorize and direct the agency, or 
agencies, to cooperate with EPA in any joint oversight procedures 
EPA may propose for laboratories accredited under the EPA laboratory 
accreditation program for laboratories that offer to provide lead 
analysis services.
    d. Data Collection. Authorize the agency, or agencies, to 
establish a unit for the collection and analysis of data on lead-
hazard detection and lead-hazard reduction activities in the State, 
and on the certification, accreditation, and enforcement activities 
of the agency.
    e. Public Education. Authorize the agency, or agencies, in 
cooperation with other relevant agencies of the State, to conduct 
programs of public education on the nature and consequences of lead 
hazards and on the need for lead-hazard reduction activities to be 
conducted under careful supervision and by certified and accredited 
personnel in order to assure the public safety.

Appendix F--Statement of Requirements: Lead-Based Paint Element for 
Comprehensive Housing Affordability Strategy

    Section 1011 of the Housing and Community Development Act of 
1992 established the requirement that, to be considered an eligible 
applicant for Lead-Based Paint Grant Program funds, a State or unit 
of general local government must have a Comprehensive Housing 
Affordability Strategy (CHAS) that has been approved by HUD. States 
and units of local government that receive direct allocations of 
HOME Program or Community Development Block Grant Program funds are 
required to submit a full CHAS that includes a lead-based paint 
element. The instructions for developing a CHAS for Fiscal Year 1994 
(including the lead-based paint element) are set out in CPD Notices 
93-02 (for units of general local government) and 93-03 (for 
States). The deadline for submission of a FY 1994 CHAS was December 
31, 1993.
    Any otherwise eligible jurisdiction that does not have an 
approved Fiscal Year 1994 CHAS for the purposes of HOME, CDBG or 
other funding sources, but wishes to apply for funds pursuant to 
this NOFA, may develop an abbreviated strategy for the purposes of 
meeting the CHAS requirement, in accordance with Section 91.25 of 
the CHAS final rule and CPD Notice 94-04, January 21, 1994. 
Prospective applicants that plan to prepare an abbreviated strategy 
should note that these strategies must be received by HUD not later 
than the deadline established for applications pursuant to this 
NOFA. Failure to submit the abbreviated strategy by this deadline 
will result in disqualification of the jurisdiction's application.
    Applicants must include a separate copy of their CHAS lead-based 
paint element or abbreviated strategy as part of the grant 
application. The Lead-Based Paint Grant Program does not require the 
submission of a certification of consistency with a CHAS.

Appendix G--Sec. 215 of the National Affordable Housing Act (Pub. L. 
101-625): Qualification as Affordable Housing

    (a) Rental Housing.--
     (1) Qualification.--Housing that is for rental shall qualify as 
affordable housing under this title only if the housing--
    (A) bears rents not greater than the lesser of (i) the existing 
fair market rent for comparable units in the area as established by 
the Secretary under section 8 of the United States Housing Act of 
1937, or (ii) a rent that does not exceed 30 percent of the adjusted 
income of a family whose income equals 65 percent of the median 
income for the area, as determined by the Secretary, with adjustment 
for smaller and larger families, except that the Secretary may 
establish income ceilings higher or lower than 65 percent of the 
median for the area on the basis of the Secretary's findings that 
such variations are necessary because of prevailing levels of 
construction costs or fair market rents, or unusually high or low 
family incomes;
    (B) has not less than 20 percent of the units (i) occupied by 
very low-income families who pay as a contribution toward rent 
(excluding any federal or State rental subsidy provided on behalf of 
the family) not more that 30 percent of the family's monthly 
adjusted income as determined by the Secretary, or (ii) occupied by 
very low-income families and bearing rents not greater than the 
gross rent for rent-restricted residential units as determined under 
section 42(g)(2) of the Internal Revenue Code of 1986;
    (C) is occupied only by households that qualify as low-income 
families;
    (D) is not refused for leasing to a holder of a voucher or 
certificate of eligibility under section 8 of the United States 
Housing Act of 1937 because of the status of the prospective tenant 
as a holder of such voucher or certificate of eligibility;
    (E) will remain affordable, according to binding commitments 
satisfactory to the Secretary, for the remaining useful life of the 
property, as determined by the Secretary, without regard to the term 
of the mortgage or to transfer of ownership, or for such other 
period that the Secretary determines is the longest feasible period 
of time consistent with sound economics and the purposes of this 
Act; and
    (F) if newly constructed, meets the energy efficiency standards 
promulgated by the Secretary in accordance with section 109 of this 
Act.
    (2) Adjustment of Qualifying Rent--The Secretary may adjust the 
qualifying rent established for a project under subparagraph (A) of 
paragraph (1), only if the Secretary finds that such adjustment is 
necessary to support the continued financial viability of the 
project and only by such amount as the Secretary determines is 
necessary to maintain continued financial viability of the project.
    (3) Increases in Tenant Income--Housing shall qualify as 
affordable housing despite a temporary noncompliance with 
subparagraph (B) or (C) of paragraph (1) if such noncompliance is 
caused by increases in the incomes of existing tenants and if 
actions satisfactory to the Secretary are being taken to ensure that 
all vacancies are filled in accordance with paragraph (1) until such 
noncompliance is corrected. Tenants who no longer qualify as low-
income families shall pay as rent not less than 30 percent of the 
family's adjusted monthly income, as recertified annually.
    (4) Mixed-Income Project--Housing that accounts for less than 
100 percent of the dwelling units in a project shall qualify as 
affordable housing if such housing meets the criteria of this 
section.
    (5) Mixed-Use Project--Housing in a project that is designed in 
part for uses other than residential use shall qualify as affordable 
housing if such housing meets the criteria of this section.
    (b) Homeownership--Housing that is for homeownership shall 
qualify as affordable housing under this title only if the housing--
     (1) has an initial purchase price that does not exceed 95 
percent of the median purchase price for the area, as determined by 
the Secretary with such adjustments for differences in structure, 
including whether the housing is single-family or multifamily, and 
for new and old housing as the Secretary determines to be 
appropriate;
    (2) is the principal residence of an owner whose family 
qualifies as a low-income family at the time of purchase;
    (3) is made available for initial purchase only to first-time 
homebuyers;
    (4) is made available for subsequent purchase only--
    (A) to persons who meet the qualifications specified under 
paragraph (2), and
    (B) at a price consistent with guidelines that are established 
by the participating jurisdiction and determined by the Secretary to 
be appropriate--
    (i) to provide the owner with a fair return on investment, 
including any improvements, and
    (ii) to ensure that the housing will remain affordable to a 
reasonable range of low-income homebuyers; and
    (5) if newly constructed, meets the energy efficiency standards 
promulgated by the Secretary in accordance with section 109 of this 
Act.

[FR Doc. 94-9690 Filed 4-20-94; 8:45 am]
BILLING CODE 4210-32-P