[Federal Register Volume 59, Number 97 (Friday, May 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12399]


[[Page Unknown]]

[Federal Register: May 20, 1994]


_______________________________________________________________________

Part III





Department of Housing and Urban Development





_______________________________________________________________________



Office of Assistant Secretary for Public and Indian Housing



_______________________________________________________________________



Funding Availability for Fiscal Years 1993 and 1994; Invitation for 
Applications: Public Housing Development--MROP Activities; Notice
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Assistant Secretary for Public and Indian Housing
[Docket No. N-94-3758; FR-3637-N-01]

 

Notice of Funding Availability (NOFA) for FY 1993 and 1994; 
Invitation for Applications: Public Housing Development--MROP 
Activities

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Notice of Funding Availability (NOFA) for Fiscal Year (FY) 1993 
and FY 1994 for Public Housing Development--MROP Activities; Invitation 
for Applications.

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SUMMARY: This NOFA announces the availability of FY 1993 and 1994 
funding, and invites eligible public housing agencies (PHAs) to submit 
development applications for MROP activities. Because the number of 
applications for FY 1993 funding which received perfect scores was in 
excess of available funding (funding of all applications receiving a 
perfect score of 90 would only have permitted funding at 40 percent of 
the amount requested), this NOFA withdraws the FY 1993 NOFA published 
on September 13, 1993 (58 FR 47940).
    The FY 1993 funding is being combined and re-announced with the FY 
1994 funding under this Public Housing Development--MROP Activities 
NOFA (MROP Activities NOFA).
    All unfunded MROP activities applications submitted in response to 
the FY 1993 NOFA will be returned to the PHAs for resubmission in 
response to this combined FY 1993 and FY 1994 NOFA. At the option of 
the PHA, an application may be amended and resubmitted, or a new MROP 
activities application may be submitted. No other types of applications 
will be accepted under this NOFA.
    A separate NOFA applicable to the public housing development 
program will be published in the Federal Register.
    This MROP Activities NOFA provides instructions regarding the 
preparation and processing of applications.
    This NOFA is NOT applicable to the Indian housing program.

DATES: Applications are due at the HUD Field Office on or before 4 
p.m., local time, on July 5, 1994. Section III of this NOFA provides 
further information on application submission. The PHA must clearly 
write ``Public Housing Development--MROP Activities Application'' on 
the outside of the envelope and obtain a return receipt indicating the 
date and time of delivery.
    The application deadline is firm as to date and hour. In the 
interest of fairness to all applicants, HUD will not consider any 
application that is received after the deadline. PHAs should take this 
into account and submit applications as early as possible to avoid risk 
of application ineligibility brought about by unanticipated delays or 
delivery-related problems. In particular, PHAs intending to mail 
applications must provide sufficient time to permit delivery on or 
before the deadline. Acceptance by a Post Office or private mailer does 
not constitute delivery. Facsimile (Fax), COD, and postage due 
applications will NOT be accepted.

FOR FURTHER INFORMATION CONTACT: Janice Rattley, Office of 
Construction, Rehabilitation and Maintenance, Department of Housing and 
Urban Development, 451 Seventh Street SW., room 4136, Washington, DC 
20410. Telephone (202) 708-1800 (voice) or (202) 708-4594 (TDD). (These 
are not toll-free numbers.)

SUPPLEMENTARY INFORMATION: Paperwork Reduction Act Statement: The 
information collection requirements contained in this NOFA have been 
approved by the OMB under the Paperwork Reduction Act of 1980 and have 
been assigned OMB control numbers 2577-0033, 2577-0036, and 2577-0044.

I. Introduction

A. Authority

    Section 5 of the United States Housing Act of 1937 (42 U.S.C. 
1437c); and section 7(d) of the Department of Housing and Urban 
Development Act (42 U.S.C. 3535(d)). Public housing development 
regulations are published at 24 CFR part 941. The Catalog of Federal 
Domestic Assistance Program number is 14.850.

B. Fund Availability

    In accordance with the FY 1994 HUD Appropriations Act (Pub. L. 103-
124, approved October 28, 1993), the Department is making available, 
through this NOFA, up to $119.2 million of the FY 1994 public housing 
development funds for MROP activities consistent with section 111 of 
the Housing and Community Development (HCD) Act of 1992 (Pub. L. 102-
550, approved October 28, 1992). Because some of the appropriated funds 
are to be derived from recapture of prior year obligations, a lesser 
amount may be available under this NOFA, unless actual recaptures 
during the current Fiscal Year return the amount to the appropriated 
level.
    In addition, the $60 million of FY 1993 public housing development 
funds provided in the FY 1993 HUD Appropriations Act (Pub. L. 102-389, 
approved October 6, 1992) for MROP activities consistent with section 
111 of the HCD Act of 1992, is also being made available.\1\
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    \1\As noted in the September 13, 1993 FY 93 MROP Activities 
NOFA, the FY 1993 funds are being made available for MROP activities 
in accordance with the Joint Statement of the Managers in 
Explanation of the Conference Agreement (see H.R. Rep. 103-165, pg. 
31) on the Supplemental Appropriations Act of 1993 (Pub. L. 103-50, 
approved July 2, 1993).
---------------------------------------------------------------------------

    Consistent with section 624 of the HCD Act of 1992, HUD has 
established a set-aside of five percent of the total of up to $179.2 
million (which provides up to $8,950,000 depending on recaptures) for 
MROP Activities for housing designated for disabled families, which 
will be the subject of a separate NOFA to be published by the 
Department.

C. Fund Assignments

    Funding for MROP activities is provided for the reconstruction of 
existing public housing, the extent of which is not predictable by 
formula. Therefore, the funds provided under this NOFA will not be 
fair-shared. This determination was made on the basis of the exclusion 
of funds as incapable of geographic allocation pursuant to 24 CFR 
791.403(b) published in the Federal Register on August 4, 1993 (58 FR 
41426).
    Field Offices will ascertain threshold-approvability and, after 
Joint Review, send the threshold-approvable applications to a review 
selection panel(s) comprised of representatives from various Field 
Offices (hereafter referred to as ``panel(s)'').
    The panel(s) shall rate and rank the threshold-approvable 
applications based on the criteria in Section IV.E. of this NOFA, and 
provide Headquarters with a list, in rank order, reflecting the 
ratings. The Department, in its discretion, may choose to select or 
partially fund a lower-rated application in order to increase national 
geographic diversity, and/or to increase the diversity of development 
types (high-rise buildings of five or more stories and those which 
include only low-rise buildings).

D. Eligibility

    Applications for public housing development--MROP activities must 
be submitted by PHAs eligible for development funding which have the 
required local cooperation and legal authority to develop, own and 
operate public housing projects.
    PHAs eligible under the Comprehensive Improvement Assistance 
Program (CIAP) (CIAP-eligible PHAs) and under the Comprehensive Grant 
Program (CGP) (CGP-eligible PHAs) may apply for these funds. CIAP and 
CGP are hereinafter referred to as ``modernization.'' Applications will 
be determined eligible using the modernization procedures outlined in 
Public Housing Modernization rule 24 CFR part 968, as amended by the 
interim rule for Public and Indian Housing, Revised Comprehensive 
Improvement Assistance Program, published on March 15, 1993 (58 FR 
13916), (as modified by this NOFA).
    Applications must meet the threshold approvability requirements in 
Section IV.B of this NOFA, including the following requirements which 
must be addressed in the PHA's Narrative Statement accompanying its 
application, and will be rated by a panel(s) on the Technical Review 
Factors listed in Section IV.E. of this NOFA.
    1. A project proposed for MROP activities must have long-term 
viability after reconstruction and the annual contributions contract 
(ACC) for the project must remain in effect for 40 years. In 
determining viability, the PHA must have a comprehensive plan (funded 
from other sources such as CIAP, CGP, donations, etc.) for the project 
for which the funds for MROP activities are being requested. The 
comprehensive plan for the project may be part of the PHA's 
comprehensive plan for modernization. The comprehensive plan must 
demonstrate a strategy which will assure that the entire development 
will be viable for a minimum period of 20 years. This strategy may 
include, but not be limited to, an estimate of the required amount 
needed for rehabilitation of the remaining portion of the development 
to the extent any additional rehabilitation is required; sources of 
funding for the additional work; any proposed demolition/disposition 
that may be planned; and written evidence of local government and 
resident support for the strategy.
    2. A proposed MROP activities project must be a rental (not 
homeownership) project.
    3. An ``obsolete project or building'' is one that has design or 
marketability problems that have resulted in:
    a. Current vacancies of more than 25 percent of the units available 
for occupancy; or
    b. (1) Estimated costs of the project (including any costs for 
lead-based paint abatement activities) that exceed 70 percent of the 
total current development cost limits for new construction of similar 
units in the area; and
    (2) The project or building has:
    (a) An occupancy density or a building height that is significantly 
in excess of that which prevails in the neighborhood; or
    (b) A bedroom configuration that could be altered to better serve 
the needs of families seeking occupancy to public housing; or
    (c) Significant security problems in and around the project; or
    (d) Significant physical deterioration or inefficient energy and 
utility systems.
    4. The deficiencies must be determined correctable under the CGP or 
the CIAP procedures (see 24 CFR part 968 and related issuances), to 
ensure long-term viability (a useful life with full occupancy) of more 
than 20 years after completion of reconstruction; the ACC for the 
project must remain in effect for 40 years.
    5. Existing projects which consist of more than one building may 
have MROP activities funding in any single year limited to one or more 
(less than all) of a project's buildings. Where separate portions of an 
existing project receive MROP funding in different fiscal years, each 
portion must be given a separate MROP project number and the funds 
reserved must be sufficient to complete all of the reconstruction 
needed to make the portion viable; in such cases, the funds for each 
MROP project must be kept separate and may not be commingled.
    6. A combination of MROP activities and modernization funds may be 
used within a project, but may not be used within the same units (or 
buildings, as applicable). For example, if an existing project consists 
of low-rise, row, and elevator buildings, an MROP activities project 
could be approved to include all or some of the row units, with the 
balance of units included in a modernization project. MROP funds may, 
however, be used in conjunction with Urban Revitalization Demonstration 
funds (HOPE VI) without limitation.
    7. Management improvements are an eligible cost under MROP 
activities to the extent that such improvements are necessary for the 
viability of the project (i.e., to maintain the physical improvements 
resulting from the proposed redesign, reconstruction, or redevelopment 
MROP activities).

E. Restrictions

    1. If partial demolition/disposition is required:
    a. A demolition/disposition application must have been approved 
before the MROP activities application may be approved; or
    b. The application must have been submitted along with evidence of 
approval by the unit of general local government in which the project 
is located. This approval may be obtained from the Chief Executive 
Officer.
    2. Conversion of units (by combining small units to make larger 
units or vice versa) must either be approved before an MROP activities 
application involving conversion may be approved, or an application for 
said conversion must have been submitted, and the cost of any 
conversion must be considered in the MROP activities application.
    3. Funding provided for MROP activities at a project may not be 
used for total demolition/disposition of that project, but may be used 
for partial demolition/disposition if required to meet long-term 
viability; however, 75 percent of the units in the project or portion 
of the project which comprises the MROP application must be 
reconstructed.

II. Application Process Overview

A. PHA Application

    A PHA applying for development funds for MROP activities shall 
prepare a CIAP application, as modified by this NOFA. The initial 
review process shall follow the CIAP procedures; however, once 
selected, the application shall be processed under public housing 
development procedures.

B. Application Processing

    The Field Office will screen each application for completeness and 
will provide the PHA with a 14 calendar-day opportunity to furnish any 
missing technical information or exhibits, or to correct technical 
mistakes. Each application will then be subjected to a ``pass/fail'' 
threshold examination by the Field Office. Each passing application 
will be rated as to the Technical Review Factors listed in Section 
IV.E. of this NOFA by a panel(s).

C. Application Approval

    Panels comprised of representatives from various Field Offices will 
prepare rankings based on the panels' ratings and Headquarters will 
select applications for approval to the extent funds are available.

D. Disclosure of Information

    The Department of Housing and Urban Development Reform Act of 1989 
(HUD Reform Act) prohibits advance disclosure of funding decisions. 
(See 24 CFR part 4.) Civil penalties related to advance disclosure are 
set out in 24 CFR part 30. Application approval/non-approval 
notifications shall not occur until the Congressional notification 
process is completed. (See Section VIII.F of this NOFA for more 
detailed information.)

E. Records Retention

    Applications and materials related to applications (e.g., 
application scoring sheets, and notifications of selection/non-
selection) will be retained in the appropriate Field Office for five 
years, and be available for public inspection in accordance with 24 CFR 
part 12. (See Section VIII.G of this NOFA for more detailed 
information.)

III. Application Requirements

A. All Applicants

    No more than one project (or portion of a project) may be proposed 
for MROP activities per application, although more than one application 
may be submitted by a PHA. Each application shall consist of an 
original and two copies, and must include the following:
1. Cover letter
    The cover letter must identify the project proposed for MROP 
activities by its original project number (e.g., WY 22-2), and its 
total number of units (and buildings, if applicable). If fewer than the 
total number of units are being proposed, the cover letter shall 
summarize the PHA's plans for the remaining units. If more than one 
application is submitted, the cover letter must state the PHA's 
priorities for funding. The PHA must include a statement of whether the 
PHA will accept funding for the reconstruction of fewer units.
2. CIAP Application and Budget--Forms HUD 52822 and 52825
    The application and budget forms must each be signed and dated and 
include the information as specified in the forms. No more than one 
original project number shall be included in each application 
submission.
3. Narrative Statement
    The narrative statement must address each of the technical review 
factors under Section IV.E. of this NOFA, each of the eligibility 
criteria under Section I.D. of this NOFA and each of the restriction 
criteria under Section I.E. of this NOFA.
4. Demolition/Disposition or Conversion of Units
    If, as part of the MROP activities, the PHA intends to demolish/
dispose (demo/dispo) of some of the units or to convert units (combine 
small units to make larger ones, or vice versa), the PHA shall provide 
the date the demo/dispo or conversion was approved by HUD or the date 
the demo/dispo or conversion application was submitted. If the demo/
dispo application has not yet been approved, the application for MROP 
activities that involves the demo/dispo of units must be accompanied by 
evidence of approval by the unit of general local government in which 
the project is located (it can be provided by the Chief Executive 
Officer). Development funds for MROP activities may not be used for 
total demo/dispo (see Section I.E.3. of this NOFA).
5. PHA Resolution In Support of the Application (Form HUD-52471)
    Under this resolution, the PHA agrees to comply with all 
requirements of 24 CFR part 941. These requirements include, among 
others: nondiscrimination under the applicable civil rights laws; the 
requirements imposed by the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4601-4655); 
the accessibility requirements of section 504 of the Rehabilitation Act 
of 1973 (29 U.S.C. 794), and HUD's implementing regulations at 24 CFR 
part 8; and section 3 of the Housing and Urban Development Act of 1968 
(12 U.S.C. 1701u), and HUD's implementing regulations at 24 CFR part 
135. By executing the PHA resolution, the PHA also certifies that it 
will comply with the accessibility requirements of the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12131), and its implementing 
regulation at 28 CFR part 35.
6. Local Governing Body Resolution (Form HUD-52472)
    If front-end funds are requested, the PHA must submit a Local 
Governing Body Resolution/ Transcript of Proceedings (Form HUD-52472).
7. Drug-Free Workplace
    The PHA must submit the Certification for a Drug-Free Workplace 
(Form HUD-50070) in accordance with 24 CFR 24.630.
8. Certification for Contracts, Grants, Loans and Cooperative 
Agreements (Form HUD-50071)
    In accordance with section 319 of the Department of Interior and 
Related Agencies Appropriations Act for Fiscal Year 1990 (31 U.S.C. 
1352) (the ``Byrd Amendment'') and the regulations at 24 CFR part 87, 
the PHA must certify that no federally appropriated funds have been 
paid or will be paid, by or on behalf of the PHA for influencing or 
attempting to influence an officer or employee of any agency, or a 
member of Congress in connection with the awarding of any Federal 
contract, the making of any Federal grant or loan, the entering into of 
any cooperative agreement, and the extension, continuation, renewal, 
amendment, or modifications of any Federal contract, grant, loan, or 
cooperative agreement. (See also Section VIII.D of this NOFA.)
9. Form SF-LLL, Disclosure of Lobbying Activities
    Also, in accordance with the Byrd Amendment and the regulations at 
24 CFR part 87, the PHA must complete and submit Form SF-LLL if funds 
other than federally appropriated funds have been paid or will be paid 
by or on behalf of the PHA for influencing or attempting to influence 
an officer or employee of any agency, or a member of Congress in 
connection with the awarding of any Federal contract, the making of any 
Federal grant or loan, the entering into of any cooperative agreement, 
and the extension, continuation, renewal, amendment, or modifications 
of any Federal contract, grant, loan, or cooperative agreement. (See 
also Section VIII.D of this NOFA.)
10. Disclosure of Government Assistance and Identity of Interested 
Parties (Form HUD 2880)
    The PHA must submit the Applicant/Recipient Disclosure/Update 
Report (Form HUD-2880) in accordance with the requirements of 24 CFR 
part 12, subpart C.

IV. Field Office Processing of Applications

A. Initial Screening

    1. Immediately after the deadline for receipt of applications, the 
Field Office will screen each application to determine whether all 
information and exhibits have been submitted; no qualitative evaluation 
will be made at this time.
    a. If an application lacks any technical information or exhibit, or 
contains a technical mistake, the PHA will be advised in writing and 
will have 14 calendar days from the date of the issuance of HUD's 
notification to deliver the missing or corrected information or 
documentation to the Field Office. For example, the PHA Narrative 
Statement must address each of the technical review factors under 
Section IV.E., the eligibility criteria under Section I.D. and the 
restriction criteria under Section I.E. of this NOFA.
    b. Curable technical deficiencies relate only to items that would 
not improve the substantive quality of the application, relative to the 
ranking factors.
    c. If Forms HUD 52822 (Application) or HUD 52825 (Budget) are 
missing, the PHA's application will be considered substantively 
incomplete, and therefore ineligible for further processing. However, 
if other forms [for example, Form HUD 50070 (Drug Free Workplace 
Certification), Form HUD 50071 (Certification for Contracts, Grants, 
Loans and Cooperative Agreements), Form SF LLL (Disclosure of Lobbying 
Activities), if applicable, or Form HUD 2880 (Application/ Recipient 
Disclosure/Update Report)] are missing, or if there is a technical 
mistake, such as no signature or the wrong signature on a submitted 
form, the PHA will be given an opportunity to correct the deficiency.
    2. The responsibility for submitting a complete application rests 
with the PHA. Failure of the Field Office to identify and provide a 
notice of deficiency to the PHA shall not relieve the PHA of the 
consequences of submitting an incomplete application.
    3. An application that does not meet all of the NOFA requirements 
after the 14-day technical deficiency period will be removed from 
processing and determined to be unapprovable. If the PHA fails to 
correct deficiencies or fails to submit missing forms or 
certifications, or any certification is incomplete or not executed by 
the appropriate person(s), or the PHA Narrative Statement fails to 
address each of the Section IV.E. technical review factors, and each of 
the Section I.D. eligibility criteria and the Section I.E. restriction 
criteria, the application will not be examined for threshold 
approvability.

B. Application Threshold Approvability

    After initial screening and upon expiration of the deficiency 
``cure'' period, applications for which all the information, 
certifications, and documentation required by the NOFA have been 
received by HUD will be examined for threshold approvability. 
Applications that fail one or more of the threshold criteria will be 
removed from processing and determined to be unapprovable. Applications 
which successfully pass the threshold review (threshold-approvable 
applications) will, following Joint Review, be submitted by the Field 
Office to a panel(s) which will rate applications, using the criteria 
set out in Section IV.E. of this NOFA. All applications must meet the 
following thresholds to be determined threshold-approvable:
    1. The MROP activities application must meet the eligibility 
criteria of Section I.D. and the restriction criteria of Section I.E.
    2. The PHA may not have any litigation pending which would preclude 
approval of the application. The PHA must have the required local 
cooperation and be legally eligible to develop, own, and operate public 
housing under the U.S. Housing Act of 1937 and the application must 
have a properly executed and complete PHA Resolution (Form HUD 52471) 
referring to the need for front-end funding, if requested, and a Local 
Governing Body Resolution (HUD 52472) which approves the request for 
front-end funds, if front-end funds are requested.

(Note: The PHA Resolution certifies to the PHA's intent to comply 
with all requirements imposed by the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 
4601-4655); the accessibility requirements of section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794) and HUD's implementing 
regulations at 24 CFR part 8; and section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u), and HUD's implementing 
regulations at 24 CFR part 135. By executing the PHA resolution, the 
PHA also certifies that it will comply with the accessibility 
requirements of the Americans with Disabilities Act of 1990 (42 
U.S.C. 12131), and its implementing regulation at 28 CFR part 35.)

    3. The Field Office must determine that the PHA has or will have 
the capability (as defined by Section IV.E.(1)(c)) to complete the MROP 
reconstruction activities and manage the resulting housing. The Field 
Office shall determine capability based upon the PHA's overall 
performance, which includes the PHA's total score under the Public 
Housing Management Assessment Program (PHMAP) (see 24 CFR part 901), 
and the PHA's most recent fiscal audit.
    a. A PHA shall not be determined to lack administrative or 
development capability simply because it has no recent experience in 
developing or managing public/assisted housing.
    b. No application shall be determined to be approvable if the PHA 
has failed to return excess advances received during development or 
modernization, or amounts determined by HUD to constitute excess 
financing based on a HUD-approved Actual Development Cost Certificate 
(ADCC) or Actual Modernization Cost Certificate (AMCC), unless HUD has 
approved a pay-back plan.
    4. There are no environmental factors precluding the MROP 
activities.
    5. The PHA must be in compliance with civil rights laws and equal 
opportunity requirements. A PHA will be considered to be in compliance 
if (1) as a result of formal administrative proceedings, there are no 
outstanding findings of noncompliance with civil rights laws unless the 
PHA is operating in compliance with a HUD-approved compliance agreement 
designed to correct the area(s) of noncompliance; (2) there is no 
adjudication of a civil rights violation in a civil action brought 
against it by a private individual, unless the applicant demonstrates 
that it is operating in compliance with a court order designed to 
correct the area(s) of noncompliance; (3) there is no deferral of 
Federal funding based upon civil rights violations; (4) there is no 
pending civil rights suit brought against the PHA by the Department of 
Justice; or (5) there is no unresolved charge of discrimination against 
the PHA issued by the Secretary under section 810(g) of the Fair 
Housing Act, as implemented by 24 CFR 103.400.

C. Joint Review

    In accordance with the designation of projects requiring Joint 
Reviews, the Field Office will conduct a (either on-site or off-site) 
Joint Review for each threshold-approvable MROP activities application 
as early as possible pursuant to the interim rule for the revised CIAP 
program, published on March 15, 1993 (58 FR 13916). The purpose of the 
Joint Review is to allow the Field Office to more thoroughly understand 
the goals of the proposed MROP so it can prepare written comments 
summarizing the results of the Joint Review; in contrast to the CIAP 
procedures, the PHA's MROP application shall not be modified as a 
result of the Joint Review in any way.

D. Field Submissions

    For each threshold-approvable application, the following must be 
prepared and submitted by the Field Office to the panel(s):
    1. Copy of each application, narrative description of the number of 
units and units by bedroom size, structure type(s), cost area, funding 
required, metro/non-metro designation, results of the eligibility 
determinations made under Section I.D. of this NOFA and the restriction 
determinations under Section I.E. of this NOFA, as well as the results 
of the Joint Review pursuant to Section IV.C. of this NOFA; and
    2. Review sheet summarizing critical information about the project, 
including a brief description of proposed MROP activities and their 
proposed cost including any management improvements and a statement of 
the determination made as to the extent such improvements are necessary 
to maintain the physical improvements resulting from the proposed MROP 
activities, the applicable total development cost limitation, a 
discussion of the relationship and approval date of any demolition/
disposition or conversion, and the feasibility of MROP activities 
compared to demolition/disposition.

E. Panel Review Criteria

    The panel(s) will review and rate each application on the basis of 
the following Technical Review Factors; the panel(s) may request 
information from the Field Office, or make site visits, as needed: 

------------------------------------------------------------------------
       MROP activities panel technical review factors           Points  
------------------------------------------------------------------------
(1) PHA's management capability to carry out the proposed               
 MROP activities: (Maximum of 30 points)                                
  (a) PHMAP overall rating 60-100...........................          15
    and                                                                 
  (b) PHMAP (#12) development and (#1) modernization scores             
   A-B average..............................................          15
    or                                                                  
  (c) PHMAP overall rating <60, but contingent contract is              
   included meeting procurement requirements with qualified             
   entity to act as project administrator on PHA's behalf...          30
(2) The expected term of useful life of the project or                  
 building after completion of MROP activities. (Maximum of              
 30 points)                                                             
  (a) The plan/strategy is comprehensive and demonstrates               
   that the rehabilitation will result in a useful life of              
   at least 20 years; e.g., management deficiencies are                 
   addressed; all physical deficiencies are addressed; local            
   and resident support are integrated throughout the                   
   project improvement effort...............................        1-10
  (b) Degree of Resident Involvement and degree of PHA                  
   activity in resident initiatives, including resident                 
   management, economic development, and drug elimination               
   efforts..................................................         1-5
  (c) Degree of local government and private sector                     
   involvement and support..................................         1-5
  (d) Evidence of satisfactory maintenance of other                     
   developments in the PHA's inventory......................        1-10
(3) The likelihood of achieving full occupancy of the                   
 reconstructed units comprising the project or building                 
 after completion of MROP activities. (Maximum of 40)                   
  (a) Need--The PHA's needs for CIAP/CGP/URD are so great               
   that there is little or no likelihood this project, which            
   has demonstrated need, will be modernized in the                     
   foreseeable future without MROP funds....................        1-30
  (b) Adequate occupancy systems/procedures are in place or             
   will be in place to achieve full occupancy once                      
   modernized...............................................        1-10
                                                             -----------
      MROP activities panel total possible points...........         100
------------------------------------------------------------------------

V. MROP Activities Funding and Further Processing

    A. Each MROP activities application selected for funding by 
Headquarters shall:
    1. Have funds reserved in an amount of at least 70 percent of the 
development cost limitation for the area and:
    a. The reservation amount will be ``trended'' to preclude the need 
for amendment funds;
    b. The trend will be calculated by multiplying the percent of 
development cost by 5.4 percent (1.054), rounded to the nearest $50;
    2. Be assigned a development project number and entered into the 
appropriate HUD data systems; and
    3. During and after fund reservation, development procedures shall 
be followed (24 CFR part 941 and Handbook 7417.1 REV-1) except:
    a. MROP activities work may only be accomplished by:
    (1) Sealed bid procurement method with award to the lowest 
responsible bidder; or
    (2) Competitive proposal method as permitted for modernization 
projects under Notice PIH 93-50 (HA), whereby the PHA would execute a 
fixed price contract in which the contractor would be responsible for 
design of specific work items identified in the Request for Proposals, 
soliciting and contracting for construction work, contract 
administration and construction inspection; the contract could either 
provide for progress payments, as in the sealed bid method, or a lump 
sum payment after successful completion of all work;
    b. CIAP modernization standards set forth in Handbook 7485.2 REV-1 
must be used;
    c. The PHA must incorporate its approved MROP activities 
application into a PHA Proposal (Form HUD-52483A);
    d. The special MROP Annual Contributions Contract (Form HUD-53010-
I), included in Notice PIH 89-41(HUD), must be used;
    e. There will be no amendment funds to increase the original amount 
of the MROP activities fund reservation.

VI. Checklist of Application Submission Requirements

A. Application Checklist

    PHAs may use the following application checklist, which enumerates 
the submission requirements of Section III of this NOFA.
    1. Forms HUD-52822 and HUD-52825, CIAP Application and CIAP Budget;
    2. Narrative statement addressing each of the eligibility criteria 
under Section I.D. of this NOFA, each of the restriction criteria under 
Section I.E. of this NOFA, and each of the Technical Review Factors 
under Section IV.E. of this NOFA;
    3. Information/certification, as applicable, if the application 
involves demo/dispo or conversion of units;
    4. HUD-52471, PHA Resolution in Support of Public Housing;
    5. HUD-52472, Local Governing Body Resolution, if front-end funds 
are being requested by the PHA.

    [Note: If front-end funds are requested, the HUD-52471 must be 
appropriately modified.];

    6. PHA statement identifying its funding preferences if more than 
one application is being submitted;
    7. HUD-50070, PHA Certification for a Drug-Free Workplace;
    8. HUD-50071, Certification for Contracts, Grants, Loans and 
Cooperative Agreements;
    9. Form SF-LLL, Byrd Amendment Disclosure and Certification 
Regarding Lobbying, only if the applicant determines it is applicable;
    10. Form HUD-2880, Disclosure of Government Assistance and Identity 
of Interested Parties.

B. Application Packets

    Forms comprising the application package may be obtained from the 
HUD Field Office.

VII. Other Matters

A. Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR part 50, 
implementing 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 between 7:30 a.m. and 5:30 
p.m. weekdays at the Office of the Rules Docket Clerk, 451 Seventh 
Street SW., room 10276, Washington, DC 20410.

B. Federalism

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that this NOFA 
will not have substantial, direct effects on States, on their political 
subdivisions, or on their relationship with the Federal government, or 
on the distribution of power and responsibilities between them and 
other levels of government. The NOFA will provide PHAs with funding for 
public housing development MROP activities.

C. Family Impact

    The General Counsel, as the Designated Official for Executive Order 
12606, the Family, has determined that the provisions of this NOFA do 
not have the potential for significant impact on family formation, 
maintenance and general well-being within the meaning of the Order. To 
the extent that the funding provided through this NOFA results in 
additional or improved housing, the effects on the family will be 
beneficial.

D. Prohibition Against Lobbying Activities

    The Byrd Amendment. 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. A certification is required, at the time the application 
for funds is made, that Federally appropriated funds are not being or 
have not been used in violation of section 319 and that disclosure will 
be made of payments for lobbying with other than Federally appropriated 
funds. Also, there is a standard disclosure form, SF-LLL, ``Disclosure 
Form to Report Lobbying,'' which must be used to disclose lobbying with 
other than Federally appropriated funds.

E. Prohibition Against Lobbying of HUD Personnel

    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.
    HUD's regulation implementing section 13 is codified at 24 CFR 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 the rule. Appendix A of this rule 
contains examples of activities covered by this rule.
    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 
(voice/TDD). This is not a toll-free number. Forms necessary for 
compliance with the rule may be obtained from the local HUD office.

F. Prohibition Against Advance Information on Funding Decisions

    Section 103 of the HUD 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. That regulation 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 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 (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 Regional 
or Field Office Counsel, or Headquarters Counsel for the program to 
which the question pertains.

G. Accountability in the Provision of HUD Assistance

    HUD's regulations at 24 CFR part 12 implement section 102 of the 
HUD Reform Act. Section 102 contains a number of provisions designed to 
ensure greater accountability and integrity in the provision of certain 
types of assistance administered by HUD. The following requirements 
concerning documentation and public access disclosures are applicable 
to assistance awarded under this NOFA.
1. Documentation and Public Access
    HUD will ensure that documentation and other information regarding 
each application submitted pursuant to this NOFA are sufficient to 
indicate the basis upon which assistance was provided or denied. This 
material, including any letters of support, will be made available for 
public inspection for a five-year period beginning not less than 30 
days after the award of the assistance. Material will be made available 
in accordance with the Freedom of Information Act (5 U.S.C. 552) and 
HUD's implementing regulations at 24 CFR part 15. In addition, HUD will 
include the recipients of assistance pursuant to this NOFA in its 
quarterly Federal Register notice of all recipients of HUD assistance 
awarded on a competitive basis. (See 24 CFR 12.14(a) and 12.16(b), and 
the notice published in the Federal Register on January 16, 1992 (57 FR 
1942), for further information on these requirements.)
2. 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 of 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.)

    Dated: May 13, 1994.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 94-12399 Filed 5-19-94; 8:45 am]
BILLING CODE 4210-33-P