[Federal Register Volume 59, Number 92 (Friday, May 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11611]


[[Page Unknown]]

[Federal Register: May 13, 1994]


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Part VII





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Community Planning and 
Development



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NOFA for the John Heinz Neighborhood Development Program; Notice
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Community Planning and 
Development
[Docket No. N-94-3759; FR-3662-N-01]

 
NOFA for the John Heinz Neighborhood Development Program

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Notice of funding availability for Fiscal Year 1994.

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SUMMARY: This NOFA announces the availability of $4,750,000 in funding 
for the FY 1994 Neighborhood Development Program. Interested persons 
should apply for FY 1994 program funds according to the procedures and 
requirements set out in this NOFA.

    In the body of this NOFA is information concerning:
    (1) This year's round of funding for this program;
    (2) The purposes and objectives of the program;
    (3) The method of allocation and distribution of funds;
    (4) Eligibility requirements for neighborhood development 
organizations;
    (5) Eligible neighborhood development activities;
    (6) Selection criteria for the award of funds;
    (7) Application requirements for the funds;
    (8) Grantee reporting requirements; and
    (9) Other applicable administrative requirements associated with 
the program.

DATES: Applications may be requested beginning May 13, 1994. Completed 
applications must be submitted no later than 4:30 p.m. (E.S.T.), by the 
date specified in the application kit. The application deadline will be 
firm as to date and hour. In the interest of fairness to all competing 
applicants, the Department will treat as ineligible for consideration 
any application that is received after the deadline. Applicants should 
take this practice into account and make early submission of their 
materials to avoid any risk of loss of eligibility brought about by 
unanticipated delays or other delivery-related problems.

ADDRESSES: To obtain a copy of the application kit, contact: American 
Communities, P.O. Box 7189, Gaithersburg, MD 20898-7189. Requests for 
application kits must be in writing, but requests may be faxed to: 
(301) 251-5747 (this is not a toll-free number). Requests for 
application kits must include the applicant's name, mailing address 
(including zip code), telephone number (including area code), and must 
refer to the FR-3662. Completed applications may not be submitted by 
fax.

FOR FURTHER INFORMATION CONTACT: Gene Hix, Office of Community Planning 
and Development, Department of Housing and Urban Development, room 
7218, 451 Seventh Street, SW., Washington, DC 20410; telephone number 
(202) 708-1189 and (202) 708-2565 (TDD). (These numbers are not toll-
free.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The information collection requirements contained in this notice 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1980. The control number for information 
collections described in this document is 2535-0084.

I. Purpose and Substantive Description

A. Authority

    Section 123 of the Housing and Urban-Rural Recovery Act of 1983 (42 
U.S.C. 5318 note) (section 123) authorized the John Heinz Neighborhood 
Development Program. For Fiscal Year 1994, a total of $5 million has 
been appropriated for this program under the Departments of Veterans 
Affairs and Housing and Urban Development and Independent Agencies 
Appropriations Act, 1994 (Pub. L. 103-124, approved October 18, 1993).
    Section 123(e)(6)(D) permits the Secretary of Housing and Urban 
Development (Secretary) to use no more than five percent of the funds 
appropriated for administrative or other expenses in connection with 
the program. The remaining funds are to be used to match monetary 
support raised over a one-year grant period from individuals, 
businesses, and nonprofit or other organizations located within 
established neighborhood boundaries, and from neighborhood development 
funding organizations. For purposes of this NOFA the term 
``neighborhood development funding organization'' means:
    (1) A depository institution, the accounts of which are insured 
pursuant to the Federal Credit Union Act, and any subsidiary (as such 
term is defined in section 3(w) of the Federal Deposit Insurance Act) 
thereof;
    (2) A depository institution holding company and any subsidiary (as 
such term is defined in section 3(w) of the Federal Deposit Insurance 
Act) thereof; or
    (3) A company at least 75 percent of the common stock of which is 
owned by one or more insured depository institutions or depository 
institution holding companies.
    The purpose of the program is to support eligible neighborhood 
development activities using cooperative efforts and monetary 
contributions from local sources. The Federal funds are incentive funds 
to promote the development of this concept and encourage neighborhood 
organizations to become more self-sufficient in their development 
activities. Not more than 50 percent of the 1994 awards may be to 
previous grantees in the program; the remaining awards will be made to 
organizations selected from among new applicants. Applications will be 
selected for funding on the basis of evaluation criteria that reflect 
the program purposes and priorities and are contained in this notice.
    The objectives of the Neighborhood Development Program are:

--To help neighborhood development organizations increase their 
capacities to carry out larger or more complex activities, in 
cooperation with private and public institutions; and
--To assist neighborhood development organizations to achieve long-term 
financial support for their activities. The activities must benefit 
low- and moderate-income persons within the neighborhood.

B. Allocation Amounts

    The Department will make grants, in the form of matching funds, to 
eligible neighborhood development organizations. Under section 
123(e)(3), a grantee organization may receive no more than $75,000 in 
Federal matching funds in a single program year. HUD reserves the right 
to make grants for less than the maximum amount. The amount of Federal 
matching funds that an applicant receives during the program year will 
depend in part upon the amount of monetary contributions raised in the 
preceding quarter of the program year from individuals, businesses, and 
nonprofit and other organizations located within established 
neighborhood boundaries, and from neighborhood development funding 
organizations. Contributions attributable to organizations or persons 
not residing in or conducting business within the grantee's 
neighborhood, loans, in-kind services, contributions by owners of 
properties to be improved, fees for services, public funds, and any in-
lieu-of-cash contributions cannot be used to match Federal funds. These 
contributions may, however, be used to carry out project activities. 
The neighborhood monetary contributions for matching purposes must be 
raised within the one-year grant period. However, grant activities may 
be programmed over a one- to three-year period.
    A Federal matching ratio will be established for each participating 
applicant in accordance with the statutory requirement that the highest 
ratios be established for neighborhoods having the ``smallest number of 
households or greatest degree of economic distress.'' Subject to the 
statutory maximum of $75,000, the Federal match for this program year 
will range from one to six Federal dollars for each qualifying dollar 
raised by the grantee. Applications selected to receive Federal funds 
will be rank-ordered and the matching ratios will be determined in 
accordance with these two criteria.
    Any application selected for the award of Federal funds that 
proposed a matching funds ratio in excess of the ratio HUD determines 
for it will be offered an award of funds at the HUD determined ratio. 
However, any application selected for award that proposed a match below 
the maximum ratio HUD determines for it will be funded at the level 
proposed by the applicant.
    Federal payments to participating neighborhood organizations will 
be made on a quarterly basis following receipt of quarterly performance 
and financial reports. The maximum Federal payment to an applicant will 
be governed by the amount of verified, qualifying monetary 
contributions received from local sources in the preceding quarter, 
multiplied by the matching funds ratio established for the 
neighborhood.

C. Eligibility

1. Eligible Applicants--Definition
    An eligible neighborhood development organization must be located 
in and serve the neighborhood for which assistance is to be provided. 
It cannot be a city-wide organization, a multi-neighborhood consortium, 
or, in general, an organization serving a large area of the city. The 
applicant must meet all of the following statutory requirements:
    (a) The applicant must be incorporated as a private, voluntary, 
nonprofit corporation under the laws of the State in which it operates;
    (b) The applicant must be responsible through a governing body to 
the residents of the neighborhood it serves. Not less than 51 percent 
of the members of the governing body must be residents of the 
neighborhood;
    (c) The applicant must have conducted business for at least one 
year before the date of its application;
    (d) The applicant must operate within an area that meets at least 
one of the following criteria:
    (i) The area meets the requirements for Federal assistance under 
section 119 of the Housing and Community Development Act of 1974 (Urban 
Development Action Grants);
    (ii) The area is designated as an empowerment zone or an enterprise 
community under Federal law;
    (iii) The area is designated as an enterprise zone under State law, 
and is recognized by the Secretary as a State enterprise zone for 
purposes of this section; or
    (iv) The area is a qualified distressed community within the 
meaning of section 233(b)(1) of the Bank Enterprise Act of 1991; and
    (e) The applicant must have conducted one or more eligible 
neighborhood development activities that primarily benefit low- and 
moderate-income persons, as defined in section 102(a)(2) of the Housing 
and Community Development Act of 1974. (In general, low- and moderate-
income residents means families and individuals whose incomes do not 
exceed 80 percent of the median income of the area involved.)
2. Eligible Applicants--Other Threshold Requirements
    In addition, an applicant must:
    (a) Demonstrate measurable achievements in one or more of the 
activities listed in section I.C(3), Eligible Activities, of this NOFA;
    (b) Specify a business plan for accomplishing one or more of the 
activities listed in section I.C(3), Eligible Activities, of this NOFA;
    (c) Specify a strategy for achieving greater long-term private 
sector support, especially in cooperation with a neighborhood 
development funding organization. An applicant that is otherwise 
eligible will be deemed to have the full benefit of the cooperation of 
a neighborhood development funding organization if the eligible 
applicant:
    (i) Is located in an area described in paragraph (d) of Section 
I.C(1) of this NOFA (Eligible Applicants--Definition) that does not 
contain a neighborhood development funding organization; or
    (ii) Demonstrates that it has been unable to obtain the cooperation 
of any neighborhood development funding organization in the area 
despite having made a good faith effort to obtain such cooperation; and
    (d) Specify a strategy for increasing the capacity of the 
applicant.
3. Eligible Activities
    Eligible activities include the following, but are not limited to 
the examples given:
    (a) Developing economic development activities that include:
    (i) Creating permanent jobs in the neighborhood; and
    (ii) Establishing or expanding businesses within the neighborhood 
(such as a business incubator);
    (b) Developing new housing, rehabilitating existing housing, or 
managing housing stock within the neighborhood;
    (c) Developing delivery mechanisms for essential services that have 
lasting benefits to the neighborhood. Examples include fair housing 
counseling services, child care centers, youth training, and health 
services; or
    (d) Planning, promoting, or financing voluntary neighborhood 
improvement efforts. Examples include establishing a neighborhood 
credit union, demolishing abandoned buildings, removing abandoned cars, 
and establishing an on-going street and alley cleanup program.

D. Selection Criteria/Ranking Factors

    Applications will be evaluated on the basis of the following 
factors:
    (1) The degree of economic distress within the neighborhood. This 
is based on census data, including poverty level relative to 
population. Applicants with the highest poverty level relative to their 
population will get higher points. (15 points)
    (2) The record of past performance of the applicant in one or more 
of the activities specified under paragraph I.C(3), Eligible 
Activities, of this NOFA, and in promoting fair housing, equal 
employment opportunity, and minority-owned business and entrepreneurial 
opportunities. (10 points)
    (3) The extent of neighborhood residents' participation in the 
activities of the applicant and the extent to which the households and 
businesses in the neighborhood are members of the applicant 
organization. (10 points)
    (4) The extent to which the proposed activities will benefit 
persons of low- and moderate-income residing in the neighborhood served 
by the applicant. (15 points)
    (5) The extent of monetary contributions that the applicant 
proposes as a match to the Federal funds, supported by reasonable 
evidence that private funding sources within the neighborhood have been 
realistically identified. This requirement shall be waived, and an 
application may be awarded the full points available under this factor, 
if the application is submitted by a small eligible organization, 
involves activities in a very low-income neighborhood, or is especially 
meritorious. (10 points)
    (6) The extent to which the applicant has developed a strategy to 
increase its capacity to carry out larger or more complex project 
activities and to address its long-term financial and organizational 
development needs. (8 points)
    (7) The extent of participation in the proposed activities by a 
neighborhood development funding organization. An eligible applicant 
shall be credited with the maximum score under this factor if the 
applicant demonstrates that it has made a good faith effort to obtain 
such participation, even if the applicant is not successful. (7 
points).
    (8) The quality of the management plan submitted for accomplishing 
the activities proposed by the applicant including evidence of sound 
financial management, the experience and capability of the applicant's 
director and staff, and the level of coordination efforts, including 
working relationships with local governments or neighborhood 
development funding organizations. (25 points)

E. Determination of Ratio for Federal Contribution

    The Secretary will determine the ratio by which Federal funds will 
be used to match monetary contributions made to each eligible applicant 
that is selected for funding under this NOFA. The ratio will be based 
on:
    (1) The number of households in the neighborhood. Neighborhoods 
having the smallest number of households will be assigned higher ratios 
under this factor; and
    (2) The degree of economic distress. Neighborhoods indicating the 
greatest degree of economic distress will be assigned higher ratios 
under this factor than those with lesser degrees of economic distress.

F. Environmental Reviews

    HUD will conduct the appropriate environmental review and comply 
with all the environmental requirements in 24 CFR part 50 before award 
of a grant. Grantees will be expected to adhere to all assurances 
applicable to environmental concerns as contained in the RFGA and grant 
agreements.

II. Application Submissions Process

A. Obtaining Application

    For an application kit, contact: American Communities, P.O. Box 
7189, Gaithersburg, MD 20898-7189. Requests for Grant Applications 
(RFGAs) must be in writing, but the request may be faxed to (301) 251-
5747. (This is not a toll-free number). We strongly recommend the use 
of the fax transmission option to promote accuracy and expedite 
response time. Requests for application kits must include the 
applicant's name, mailing address (including zip code), telephone 
number (including area code), and must refer to FR-3662. The RFGA 
contains the application, forms, and other information regarding the 
application process and the administration of the program, including 
relevant provisions from OMB Circulars A-110 and A-122. (This NOFA 
summarizes major provision of the RFGA).

B. Application Submission

    An original and three copies of an application must be submitted 
to: Processing and Control Branch, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW., room 7255, Washington, DC 20410. HUD will accept only one 
application per neighborhood organization.

C. Application Deadline

    Applications may be requested beginning May 13, 1994. Applications 
must be submitted no later than 4:30 p.m. (E.S.T.), by the date 
specified in the application kit. The application deadline will be firm 
as to date and hour. In the interest of fairness to all competing 
applicants, the Department will treat as ineligible for consideration 
any application that is received after the deadline. Applicants should 
take this practice into account and make early submission of their 
materials to avoid any risk of loss of eligibility brought about by 
unanticipated delays or other delivery-related problems.

III. Checklist of Application Submission Requirements

A. Preapplication Determination of Eligibility

    Before preparing an application, the applicant should carefully 
check the eligibility requirements described in section I.C, 
Eligibility, of this NOFA. Applicants that are uncertain whether the 
city or urban county in which they are located meets the current 
minimum standards of physical and economic distress (used in 
determining which cities and urban counties were potentially eligible 
applicants under the Urban Development Action Grant Program) are 
advised to consult the following two notices published by the 
Department in the Federal Register: (1) ``Urban Development Action 
Grant: Revised Minimum Standards for Small Cities'' (52 FR 37876, 
October 9, 1987); and (2) ``Urban Development Action Grant: Revised 
Minimum Standards for Large Cities and Urban Counties'' (52 FR 38174, 
October 14, 1987).
    Any applicant that needs additional help in determining its 
eligibility should contact the nearest Department of Housing and Urban 
Development Field Office (Community Planning and Development Division). 
If assistance is needed, the city or county community development 
office serving a neighborhood organization should be able to provide an 
applicant with the HUD Field Office contact number. If unable to obtain 
a local contact, the HUD Headquarters contact for this information is 
Mrs. Stella Hall, telephone number (202) 708-2186; or contact the TDD 
number: (202) 708-0564. (These are not toll-free numbers.)

B. Application Checklist

    Each application must contain the following, as required by the 
RFGA.
    (1) A signed copy of Standard Form SF-424;
    (2) An abstract describing, among other things, the applicant and 
its achievements, the proposed project, its intended beneficiaries, its 
projected impact on the neighborhood, and the manner in which the 
proposed project will be carried out;
    (3) A completed fact sheet that lists neighborhood and 
organizational characteristics;
    (4) Evidence that the applicant meets eligibility criteria and 
provides the following data:
    (a) An original city map, with street names, delineating the 
applicant's neighborhood boundaries and indicating where project 
activities will take place;
    (b) Census tract, block, or enumeration district references and zip 
code references must also be delineated on the map or on other maps 
submitted;
    (c) Census data on the size of the neighborhood population, 
including the number of low- and moderate-income persons and the size 
of the minority population, broken down by ethnic, racial, and gender 
composition;
    (d) A copy of the applicant organization's corporate charter, along 
with the incorporation papers, bylaws, and a statement of purpose;
    (e) A list of the names of the neighborhood governing board members 
and their addresses (with zip codes) to show that at least 51% reside 
in the neighborhood. Indicate those who reside in the neighborhood 
separately from those who conduct business in the neighborhood;
    (f) Identification of the applicant organization's past and current 
neighborhood projects, including those projects that are eligible 
neighborhood development activities as defined in section I.C(3), 
Eligible Activities, of this NOFA;
    (g) A description of the means by which the governing board members 
account to residents of the neighborhood, including the method and 
frequency of selection of members of the governing board, the 
consultation process with residents, the frequency of meetings, and a 
statement showing how the board is representative of the demographics 
of the neighborhood (i.e., a breakdown by tenants, homeowners, race, 
sex, ethnic composition, etc.);
    (h) Evidence of the applicant's sound financial management system, 
determined from its financial statements or audits;
    (i) A letter from the Chief Executive Officer of the unit of 
general local government in which assisted activities are to be carried 
out, certifying that the activities are not inconsistent with the 
government's comprehensive housing affordability strategy (CHAS), 
section 104(m) of the Housing and Community Development Act of 1974, or 
the local government's housing and community development plans;
    (j) Evidence of cooperation with a neighborhood development funding 
organization. In lieu of this participation, evidence may be presented 
that the applicant:
    (i) Has no neighborhood development funding organization within the 
applicable boundaries; or
    (ii) Has been unsuccessful, despite having made a good faith 
effort, in obtaining this participation.
    (k) A certification that the applicant will comply with the 
requirements of Federal law governing the application, acceptance, and 
use of Federal funds;
    (l) A narrative statement defining how neighborhood matching funds 
will be raised and their anticipated sources; what neighborhood 
development activities will be funded; and a strategy for achieving 
greater long-term private sector support;
    (m) A project management plan, including a schedule of tasks for 
both fund raising and project implementation;
    (n) A project budget and budget narrative; and
    (o) A certification that a potential grantee will comply with the 
drug-free workplace requirements in accordance with 24 CFR part 24, 
subpart F; and
    (5) Equal Opportunity Requirements. The neighborhood development 
organization must certify that it will carry out activities assisted 
under the program in compliance with:
    (a) The requirements of Title VIII of the Fair Housing Act (42 
U.S.C. 3601-3619) and implementing regulations at 24 CFR parts 100, 
108, 109, 110, and 115; part 200, subpart M; and Executive Order 11063 
(Equal Opportunity Housing implementing regulations at 24 CFR part 107; 
and Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) 
(Nondiscrimination in Federally Assisted Programs) and implementing 
regulations issued at 24 CFR part 1;
    (b) The prohibitions against discrimination on the basis of age 
under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and 
implementing regulations at 24 CFR part 146; the prohibition against 
discrimination against individuals with a disability under section 504 
of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing 
regulations at 24 CFR part 8; and the requirements of Executive Order 
11246 and the implementing regulations issued at 41 CFR chapter 60;
    (c) The requirements of section 3 of the Housing and Urban 
Development Act of 1968, 12 U.S.C. 1701u and implementing regulations 
at 24 CFR part 135; and
    (d) The requirements of Executive Orders 11625, 12432, and 12138. 
Consistent with HUD's responsibilities under these Orders, the grantee 
must make efforts to encourage the use of minority and women's business 
enterprises in connection with activities funded under this notice.
    (e) The prohibitions against discrimination and related 
requirements of section 109 of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5309).
    (f) The requirements of the Americans with Disabilities Act (42 
U.S.C. 12181-12189) and implementing regulations at 28 CFR part 36, as 
applicable.

IV. Corrections to Deficient Applications

    After the submission deadline date, HUD will screen each 
application to determine whether it is complete. If an application 
lacks certain technical items or contains a technical error, such as an 
incorrect signatory, HUD will notify the applicant in writing that it 
has 14 calendar days from the date of HUD's written notification to 
cure the technical deficiency. If the applicant fails to submit the 
missing material within the 14-day cure period, HUD will disqualify the 
application.
    This 14-day cure period applies only to nonsubstantive deficiencies 
or errors. Deficiencies capable of cure will involve only items not 
necessary for HUD to assess the merits of an application against the 
factors specified in this NOFA.
    Examples of deficiencies that may be cured are:

--Omitted or improper signatures;
--Omitted certifications or assurances; and
--Omitted financial statements or audits.

V. Other Matters

A. Reporting Requirements

    In addition to complying with relevant provisions of OMB Circulars 
A-110 and A-122, grantees will be required to submit quarterly 
performance and financial reports. These reports should inform HUD of 
any changes that may affect the outcome of the program, such as changes 
in any of the following: the governing board membership, staffing, 
working relationships with local government and private organizations, 
fund raising activities, volunteer efforts, the management plan, and 
the budget. The quarterly reports must also verify the amount of 
monetary contributions received from within the neighborhood, as a 
basis for Federal disbursement of matching funds. Grantees must certify 
that none of the monetary contributions originated through public 
funding sources.
    Grantees will be required also to submit a final report at the 
completion of the grant period. This final report must describe fully 
the successes and failures associated with the project, including the 
reasons for the successes and failures. It should also describe 
possible improvements in the methods used. The quarterly and final 
reports will be used for evaluation purposes, reports to the Congress 
on the program, and a report on successful projects that will be 
distributed to other neighborhood organizations.

B. Other Federal Requirements

    In addition to the Equal Opportunity Requirements set forth in 
section III.B(4) of this NOFA, grantees must comply with the following 
requirements:
    (1) Ineligible contractors. The provisions of 24 CFR part 24 
relating to the employment, engagement of services, awarding of 
contracts, or funding of any contractors or subcontractors during any 
period of debarment, suspension, or placement in ineligibility status.
    (2) Flood insurance. No building proposed for acquisition, 
construction, reconstruction, repair, or improvement to be assisted 
under this program may be located in an area that has been identified 
by the Federal Emergency Management Agency (FEMA) as having special 
flood hazards, unless the community in which the area is situated is 
participating in the National Flood Insurance Program and the 
regulations thereunder (44 CFR parts 59-79), or less than a year has 
passed since FEMA notification regarding such hazards, and the grantee 
ensures that flood insurance on the structure is obtained in compliance 
with section 102(a) of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4001 et seq.).
    (3) Lead-based paint. The requirements, as applicable, of the Lead-
Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), and 
implementing regulations at 24 CFR part 35.
    (4) Applicability of OMB Circulars. The policies, guidelines, and 
requirements of OMB Circular Nos. A-110 and A-122 with respect to the 
acceptance and use of assistance by private nonprofit organizations.
    (5) Relocation and Real Property Acquisition. The Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970 (URA), 49 CFR part 24, and HUD Handbook 1378, Tenant Assistance, 
Relocation and Real Property Acquisition, apply to the acquisition of 
real property for an assisted project and the displacement of any 
person (households, business, nonprofit organization, or farm) as a 
direct result of acquisition, rehabilitation, or demolition for the 
HUD-assisted project.

C. National Environmental Policy Act

    A finding of no significant impact with respect to the environment 
has been made in accordance with HUD regulations in 24 CFR part 50 that 
implement section 102(2)(C) of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332). The finding of no significant impact is 
available for public inspection and copying Monday through Friday 
during regular business hours at the Office of the Rules Docket Clerk, 
Office of General Counsel, room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410.

D. Executive Order 12612, Federalism

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this notice will not have substantial direct effects on 
states or their political subdivisions, or the relationship between the 
federal government and the states, or on the distribution of power and 
responsibilities among the various levels of government. As a result, 
the notice is not subject to review under the order. The notice 
announces incentive funds to encourage neighborhood organizations to 
become more self-sufficient in their development activities.

E. Executive Order 12606, the Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this notice has potential 
for a significant impact on family formation, maintenance, and general 
well-being. The purpose of the notice is to provide funding to improve 
neighborhood opportunities relating to employment, business, housing, 
and the provision of essential services, all of which could benefit 
families significantly. However, because the impact on families would 
be indirect and would be beneficial, no further review is considered 
necessary.

F. Section 102 HUD Reform Act: 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 requirements.)

G. Section 103 of the HUD Reform Act

    HUD's regulation implementing section 103 of the Department of 
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3537a) was 
published on May 13, 1991 (56 FR 22088) and became effective on June 
12, 1991. That regulation, codified as 24 CFR part 4, applies to the 
funding competition announced today. The requirements of the rule 
continue to apply until the announcement of the selection of successful 
applicants.
    HUD employees involved in the review of applications and in the 
making of funding decisions are restrained by part 4 from providing 
advance information to any person (other than an authorized employee of 
HUD) concerning funding decisions, or from otherwise giving any 
applicant an unfair competitive advantage. Persons who apply for 
assistance in this competition should confine their inquiries to the 
subject areas permitted under 24 CFR part 4.
    Applicants who have questions should contact the HUD Office of 
Ethics (202) 708-3815 (voice/TDD). (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 Area or 
Field Office Counsel, or Headquarters counsel for the program to which 
the question pertains.

H. Section 112 of the Reform Act

    Section 13 of the Department of Housing and Urban Development Act 
(42 U.S.C. 3537b) contains two provisions dealing with efforts to 
influence HUD's decisions with respect to financial assistance. The 
first imposes disclosure requirements on those who are typically 
involved in these efforts--those who pay others to influence the award 
of assistance or the taking of a management action by the Department 
and those who are paid to provide the influence. The second restricts 
the payment of fees to those who are paid to influence the award of HUD 
assistance, if the fees are tied to the number of housing units 
received or are based on the amount of assistance received, or if they 
are contingent upon the receipt of assistance.
    Section 13 has been implemented by 24 CFR part 86. If readers are 
involved in any efforts to influence the Department in these ways, they 
are urged to read part 86, particularly the examples contained in 
Appendix A of that part.
    Any questions about the rule should be directed to the Office of 
Ethics, room 2158, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410-3000. Telephone: (202) 708-
3815 (voice/TDD) (This is not a toll-free number.) Forms necessary for 
compliance with the rule may be obtained from the local HUD office.

    Authority: Sec. 123, Housing and Urban-Rural Recovery Act of 
1983 (42 U.S.C. 5318 note); 42 U.S.C. 3535(d).

    Dated: May 6, 1994.
Andrew Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 94-11611 Filed 5-12-94; 8:45 am]
BILLING CODE 4210-29-P