[Federal Register Volume 59, Number 99 (Tuesday, May 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12565]


[[Page Unknown]]

[Federal Register: May 24, 1994]


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Part V





Department of Housing and Urban Development





_______________________________________________________________________



Office of Assistant Secretary for Public and Indian Housing



_______________________________________________________________________




Funding Availability for FY 1994; Invitation for Applications: Public 
Housing Development; Notice
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Assistant Secretary for Public and Indian Housing
[Docket No. N-94-3763; FR-3676-N-01]

 
Funding Availability for FY 1994; Invitation for Applications: 
Public Housing Development

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

ACTION: Notice of Funding Availability (NOFA) for Fiscal Year (FY) 1994 
for public housing development; invitation for applications.

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

SUMMARY: This NOFA announces the availability of FY 1994 funding, and 
invites eligible public housing agencies (PHAs) to submit applications 
for public housing development. Applications are limited to:
    (1) Replacements for demolition/disposition subject to section 18 
of the United States Housing Act of 1937 (USHA);
    (2) Replacements for homeownership transfers under the HOPE I 
Program, and homeownership sales under section 5(h) of the USHA;
    (3) Unforeseen housing needs resulting from natural and other 
disasters; housing needs resulting from emergencies, as certified by 
the Secretary, other than such disasters; housing needs resulting from 
the settlement of litigation; and housing in support of desegregation 
efforts; and
    (4) ``Other'' applications.
    All successful applicants will be required to participate in the 
Family Self-Sufficiency (FSS) program, unless granted an exception. 
This NOFA also provides instructions regarding the preparation and 
processing of applications. The Department is also encouraging 
applicants to form ``partnerships'' consisting of cooperative 
arrangements with community-based entities to provide housing, and is 
encouraging PHAs to engage in ``mixed income'' development (wherein 
public housing units are integrated within market-rate developments). 
This is being done by providing additional points for such efforts (see 
sections III.E.5 and IV.E. of this NOFA).
    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 8, 1994. See Section III of this NOFA for 
further information on application submission. If an application is 
mailed to the Field Office, the PHA must clearly write ``PUBLIC HOUSING 
DEVELOPMENT APPLICATION'' on the outside of the envelope and obtain a 
return receipt indicating the date and time of delivery. Hand delivered 
applications shall be date/time stamped and initialed by the employee 
receiving the application upon 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 
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 date. 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

    Sections 5 and 23 of the United States Housing Act of 1937 (USHA) 
(42 U.S.C. 1437c and 1437u); 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; demolition/disposition regulations are published at 24 CFR part 
970; section 5(h) regulations are published at 24 CFR part 906.
    The interim and final regulations for the public housing FSS 
program were published on May 27, 1993, at 58 FR 30858, and 58 FR 
30906, respectively, and will be codified at 24 CFR part 962. (The FSS 
final rule simply adopts the FSS interim rule as the FSS final 
regulations.)
    The Notice of Program Guidelines for the HOPE-1 program was 
published on January 14, 1992 at 57 FR 1522. The Catalog of Federal 
Domestic Assistance Program number is 14.850.

B. Fund Availability

    The Department of Veterans Affairs and Housing and Urban 
Development and Independent Agencies Appropriation Act of 1994 (Pub. L. 
103-124, approved October 28, 1993) (1994 Appropriations Act) makes 
available up to $598 million of budget authority (grants) for public 
housing development/Major Reconstruction of Obsolete Public Housing 
(MROP) under section 5(a)(2) of the USHA. Since some of the 
appropriated funds are to be derived from the recapture of prior year 
obligations, the actual amount available may be less. At the beginning 
of Fiscal Year (FY) 1994, the available amount was $542,796,616, which 
included $149,534 in available carryover funds. As recaptures of funds 
within the Annual Contributions account occur during the fiscal year, 
these amounts will be made available for allocation to public housing 
development up to the fully appropriated amount, plus carryover.
    In accordance with section 624 of the Housing and Community 
Development Act of 1992 (Pub. L. 102-550, approved October 28, 1992) 
(HCD Act of 1992), HUD has established a set-aside of five percent of 
appropriated funds (up to $29,900,000 depending on recaptures) for the 
development of housing designated for disabled families, and up to 
$119,200,000 (depending on recaptures) for activities involving MROP 
activities. Applications for designated housing for disabled families 
and for MROP activities will be the subject of separate NOFAs to be 
published by the Department.
    The use of funds for replacement housing subject to section 18 of 
the USHA is limited to the lesser of 30 percent of the amount 
appropriated for development or $150 million. One half of one percent 
of the appropriated amount (up to $2,990,000) has been set aside for 
technical assistance and inspections. Units transferred or sold to 
residents under HOPE I or section 5(h) are subject to replacement in 
accordance with section 304(g) of the USHA. Based on experience, the 
Department will provide up to $76,059,534 for such replacements. The 
balance of funds will be fair shared.
    The following table illustrates the distribution of grant 
authority. 

------------------------------------------------------------------------
                                                      Amount            
                Purpose                  -------------------------------
                                            (Maximum)       (Minimum)   
------------------------------------------------------------------------
Housing for Disabled....................     $29,900,000     $26,635,460
MROP Activities.........................     119,200,000     116,139,686
Sec 18 Replacement Units................     150,000,000     150,000,000
Technical Assistance/Inspections........       2,990,000       2,663,547
HOPE I and Sec 5(h) Replacement.........      76,059,534      63,546,250
Fair-Share..............................     220,000,000    183,811,673 
                                         -------------------------------
                                             598,149,534   $542,796,616 
------------------------------------------------------------------------

C. Fund Assignments

    Section 213(d) of the Housing and Community Development Act of 1974 
(HCD Act of 1974) requires that funds be allocated on a fair share 
basis, except for (a) amounts identified as Headquarters Reserve and 
(b) amounts determined incapable of geographic allocation. The amounts 
identified by category below are maximums.
1. Headquarters Reserve
    Threshold-approvable applications for housing resulting from 
unforeseen housing needs resulting from natural and other disasters; 
housing needs resulting from emergencies, as certified by the 
Secretary, other than such disasters; housing needs resulting from the 
settlement of litigation; and housing in support of desegregation 
efforts shall be assigned Headquarters Reserve funding. (Headquarters 
Reserve amounts are limited in accordance with section 104 of the 
Department of Housing and Urban Development Reform Act of 1989 (Pub. L. 
101-235, approved December 15, 1989), to five percent of the financial 
assistance that becomes available under the USHA and section 101 of the 
HUD Act of 1965. Thus, Headquarters Reserve funding decisions will be 
made by Headquarters and may affect the distribution of grant authority 
shown above.)
2. Fair Share
    Depending on recaptures, up to $220 million will be fair shared to 
approve category 4 (``other'') applications. These fair share funds 
will be distributed to Areas (formerly Regions) on the basis of the 
following fair share factors, which reflect the most recent decennial 
census data as to population, poverty, housing overcrowding, housing 
vacancies, amount of substandard housing, and other measurable 
conditions.
    Because of errors in FY 1993 in calculating category 4 scores under 
the June 28, 1993, NOFA (58 FR 34670) for the Laconia Housing and 
Redevelopment Authority (LHRA) in New Hampshire and the Nahunta Housing 
Authority (NHA) in Georgia, fair share funds in the amounts of $753,400 
and $759,400, respectively, will be awarded from the fair share amounts 
provided to the New England and Southeast Area before making FY 1994 
selections, and assigned to the LHRA and NHA applications. The 
correction of these errors shall not adversely affect their 
participation in the FY 1994 rating and ranking process. If a new 
application is filed by the LHRA or NHA under this NOFA, they will be 
rated and ranked on the same basis as other applications, as if no 
error had been made. Any unused assignments will be redistributed, 
proportional to need, among remaining Areas with approvable unfunded 
``other'' applications.
    Fair share and Headquarters Reserve funds are also subject to the 
requirement of section 213 of the HCD Act of 1974 that not less than 20 
percent nor more than 25 percent of the HUD aggregate program funds 
covered by the statute be allocated for use in nonmetropolitan areas. 
Therefore, public housing development fund allocations to select 
``other'' applications may be modified before assignment in order to 
ensure Departmental compliance with this statutory and regulatory 
requirement (see 24 CFR 791.403(a)).

------------------------------------------------------------------------
                                                                 Fair-  
                                                                 share  
                             Area                               factors 
                                                                  (%)   
------------------------------------------------------------------------
New England..................................................        7.2
New York/New Jersey..........................................       18.3
Mid-Atlantic.................................................        9.4
Southeast....................................................       13.8
Midwest......................................................       15.1
Southwest....................................................        7.7
Great Plains.................................................        3.6
Rocky Mountain...............................................        2.5
Pacific/Hawaii...............................................       18.7
Northwest/Alaska.............................................       3.7 
                                                              ----------
      Total..................................................     100.0 
------------------------------------------------------------------------

3. Non-Fair Share
    Thirty percent of the appropriated amount, up to $150 million, will 
be made available for applications for replacement housing subject to 
section 18 of the USHA. Up to $76,059,534 will be made available for 
approvable applications for replacement units for HOPE 1 or section 
5(h) homeownership transfers or sales.
4. Remaining Balances
    Any residual funds not reserved under categories 1, 2, and 3 will 
be added to the funds to be fair shared for ``other'' approvable 
applications.

D. Conformity to Regulations and NOFA Requirements

    While conformity with 24 CFR part 941 is required, this funding 
effort is also subject to the additional specific requirements, 
consistent with the regulations, that are set forth in this NOFA. 
Applicants also should consult Handbook 7417.1 REV-1, the FY 1994 
detailed Processing Notice, and the FSS interim and final regulations 
published on May 27, 1993 at 58 FR 30858 and 58 FR 30906, respectively, 
which will be codified at 24 CFR part 962. The selection criteria 
specified in this NOFA may not be added to or modified.

II. Application Process Overview

A. General

    All applications shall be submitted to the appropriate Field Office 
by the application deadline date. The Field Office shall screen each 
application for completeness and will provide the PHA a 14-day 
opportunity to furnish missing technical information or exhibits, or to 
correct technical mistakes. Each application will then be subjected to 
a ``pass/fail'' threshold examination. Approvable category 1, 2, and 3 
applications will be reported to Headquarters for further action.
    Category 4 passing applications will be forwarded for rating to 
Rating Panel(s). One or more Rating Panels, comprised of HUD Field 
representatives appointed by Headquarters, shall be convened for the 
purpose. Category 4 applications will be rated by the Rating Panel(s) 
based on Field Office analyses. Headquarters will determine the funds 
required to approve category 1, 2, and 3 applications and select 
category 4 applications based on Rating Panel ratings and 
recommendations.

B. Categories of Applications

    Each application must be for one of the following categories:
    1. Replacement units for demolition/disposition approvals, subject 
to section 18 of the USHA (Category 1)
    2. Replacement units for HOPE I or section 5(h) home-ownership 
transfers or sales (Category 2);
    3. Public housing to be funded from Headquarters Reserve (Category 
3); or
    4. ``Other'' development applications intended to increase the 
public housing stock (Category 4). Category 4 applicants are limited to 
no more than one application per locality.

C. Application Approval

    1. Up to the available amount for category 1 applications (see 
section I.B. of this NOFA) and all category 3 approvable applications 
will be funded.
    2. Up to $76,059,534 will be made available for approvable category 
2 applications.
    3. Category 4 (other) applications will be funded up to the fair 
share amounts for each Area.
    4. Funds not required for categories 1, 2, or 3 will be added to 
the funds to be fair shared for ``other'' approvable applications.

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.

E. Records Retention

    Applications and materials related to applications (e.g., Field 
Office analyses, 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.

III. Application Requirements

A. All Applicants

    Each application must specify the housing type (new construction, 
rehabilitation, or acquisition), development method (conventional, 
turnkey, or acquisition), and community for which the project is 
proposed. No more than one housing type, development method, and 
locality may be proposed for an application. Each application shall 
consist of an original and two copies, and must include the following:
1. Cover Letter
     The cover letter must identify the category of application (see 
section II.B. of this NOFA for a description of the categories; see 
also subparagraph 6 of section III.A of this NOFA).
2. Application-Form HUD 52470
    The application must be signed by the person authorized and dated 
and include the information as specified in the form.
3. Evidence of Legal Eligibility
    If it has not previously done so, the PHA must document that it is 
legally organized. A current General Certificate (Form HUD 9009) must 
be submitted.
4. Cooperation Agreement (Form HUD 52481)
    The PHA must document that the number of units requested, along 
with units in management and other units in development, are covered by 
Cooperation Agreements.
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 (see also paragraph 6 of this section 
III.A). By executing the PHA Resolution, the PHA also certifies that it 
will comply with Title II of the Americans with Disabilities Act (42 
U.S.C. 12131) and the implementing regulations at 28 CFR part 35.
6. Front-End Funds
    If front-end funds are being requested, the PHA must so state in 
its cover letter; should the PHA desire the project only if front-end 
funds can be approved, the PHA must so state. The Form HUD-52471 (PHA 
Resolution) must refer to the request, and include Form HUD-52472 
(Local Governing Body Resolution/Transcript of Proceedings) approving 
the request.
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 Agreement 
(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 implementing 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.
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.
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.
11. Family Self-Sufficiency (FSS)
    Section 23 of the USHA requires PHAs that are awarded new public 
housing units to implement an FSS program. Applicants must certify that 
they will comply with 24 CFR part 962, which requires successful 
applicants to initiate or expand an FSS program for the number of 
families that equals the total number of units they have been awarded 
(unless otherwise excepted).

B. Applications for New Construction

    In accordance with section 6(h) of the USHA, new construction may 
be engaged in only if the PHA demonstrates to the satisfaction of the 
Secretary that the cost of new construction in the neighborhood where 
the PHA determines the housing is needed is less than the cost of 
acquisition or acquisition and rehabilitation in such neighborhood. 
Therefore, every application for a new construction project 
(conventional or turnkey) must be accompanied by either the information 
described in paragraphs B.1 and B.3 of this section, or, at the 
applicant's option, the information described in paragraphs B.2 and B.3 
of this section:
    1. A PHA comparison of the costs of new construction (in the 
neighborhood where the PHA proposes to construct the housing) and the 
costs of acquisition of existing housing or rehabilitation in the same 
neighborhood (including estimated costs of lead-based paint testing and 
abatement); or
    2. A PHA certification, accompanied by supporting documentation, 
that there is insufficient existing housing in the neighborhood to 
develop housing through acquisition of existing housing or 
rehabilitation; and
    3. A statement that:
    (a) Although the application is for new construction, the PHA will 
accept acquisition of existing housing or rehabilitation, if HUD 
determines the PHA cost comparison or certification of insufficient 
housing does not support approval of new construction; or
    (b) The application is for new construction only. (In any such 
case, if HUD cannot approve new construction under section 6(h) of the 
USHA, the application will be rejected.)

C. Replacement Housing Applications

1. Cover Letter
    For both category 1 and category 2 applications, the cover letter 
must state whether the demo/dispo or transfer/sale application (to 
demolish/dispose of units, or to transfer/sell units) (hereinafter 
referred to as the ``underlying application'') has been approved; the 
date of approval; the project number and the name of the project being 
replaced; and whether it is being replaced in whole or in part. If the 
underlying application was not approved at the time the replacement 
housing application is filed, the cover letter must state the date the 
underlying application was submitted for consideration. Category 1 or 2 
applications will not be funded unless the underlying application is 
approved by the time funding selections are made.
2. Section 5(j) Certification
    The PHA must certify that the units requested are specifically 
required in FY 1994 either to meet the one-for-one replacement 
requirement of section 18 of the USHA to replace public housing 
demolition/disposition; or to meet the requirements of section 304(g) 
of the USHA to replace existing public housing approved in FY 1994 or 
earlier for homeownership transfer under HOPE 1, or for sale under 
section 5(h) of the USHA.
3. Replacement Application Under Section 18
    A PHA submitting a replacement housing application under section 18 
(category 1) must demonstrate that the replacement units, alone or 
together with other identified replacement units:
    a. Will implement the PHA's Replacement Housing Plan submitted and 
approved under 24 CFR 970.11;
    b. Are for no fewer units (or portion thereof approved by HUD) than 
the number of units to be demolished or disposed of; and
    c. Will house at least the same number of individuals and families 
that could be served by the housing to be demolished or disposed.

D. Applications for Units To Be Funded From Headquarters Reserve

1. Cover Letter
    A PHA submitting a category 3 application shall identify the 
purpose of the application (see section I.C.1 of this NOFA).
2. Section 5(j) Certification
    The PHA must certify that the units requested are required to 
comply with court orders or directions of the Secretary. Court orders 
must be identified.

E. ``Other'' Applications

    Applicants are encouraged to review the rating criteria (IV.E.) to 
ensure rating factors have been addressed in the application. ``Curable 
technical deficiencies'' (section IV.B. of this NOFA) relate only to 
items that would not improve the substantive quality of applications 
relative to rating factors. A PHA may file only one application per 
locality under this category.
1. Cover Letter
    Applicants for ``other'' public housing development units (category 
4), must state whether they will accept fewer units than applied for. 
Refusal to accept fewer units may result in an application not being 
selected if funds are not sufficient for the full number of units.
2. Section 5(j) Certification
    The PHA must certify to one of the following, pursuant to section 
5(j) of the USHA (select E.2.a or E.2.b.):
    a. The units requested (limited to 100 or fewer) are needed for 
family housing to satisfy demands not being met by the section 8 
existing or voucher rental assistance programs; or
    b. 85 percent of the PHA's dwelling units (select (1), (2), or 
(3)):
    (1) Are maintained in substantial compliance with the section 8 
housing quality standards (24 CFR 882.109); or
    (2) Will be so maintained upon completion of modernization for 
which funding has been awarded; or
    (3) Will be so maintained upon completion of modernization for 
which applications are pending that have been submitted in good faith 
under section 14 of the USHA (or a comparable State or local government 
program), and that there is a reasonable expectation, as determined in 
writing by HUD, that such application would be approvable; or will be 
so maintained upon completion of modernization under the Comprehensive 
Grant program.
3. Funding Preference in Accordance With Section 6(p)
    Section 6(p) of the USHA requires HUD to provide a funding 
preference for applications in areas with an inadequate supply of 
housing for use by low-income families (i.e., a ``tight'' housing 
rental market). The implementation of this preference shall be in 
accordance with the process described in section V.A.2 of this NOFA.
    a. The PHA must furnish data relative to rental vacancy rates in 
the market area where the project is proposed. This data should include 
a description of the data sources and methods used to obtain survey 
information. (It is recommended that PHAs consult with local community 
development agencies relative to their housing needs before submitting 
applications under this NOFA, since most of these agencies will have 
participated in the development of a Comprehensive Housing 
Affordability Strategy (CHAS).)
    b. Factors such as the following will provide evidence of 
conditions which, when taken together, will demonstrate a pattern of 
inadequate supply (generally, no one factor, taken alone, is 
conclusive);
    (1) The current rental housing vacancy rate is at a low level 
(typically six percent or lower) which results in housing not being 
available for families seeking rental units (unless the housing market 
area is not growing and, as a result, is experiencing low levels of 
demand);
    (2) The annual production of rental housing units is insufficient 
to meet the demand arising from the increase in households, or, where 
there is little or no growth, is insufficient to meet the demand 
arising from net losses to the available inventory;
    (3) The shortage of housing is resulting in rent increases 
exceeding those increases commensurate with rental housing operating 
costs; and
    (4) A significant number or proportion of section 8 certificate/
voucher holders are unable to find adequate housing because of the 
shortage of rental housing, as evidenced by PHA data showing a lower-
than-average percentage of units under lease and a longer-than-average 
time required to find units (typically, less than 85 percent lease up 
within 60 days).
4. Documentation to Demonstrate Need
    The PHA must submit documentation, such as waiting list description 
or PHA vacancy rate data, to demonstrate need for the proposed public 
housing, to assist the HUD Field Office in its determination of need 
and market in accordance with section IV.C.8.b of this NOFA.
5. Additional Rating Points
    Category 4 (other) applications may obtain additional rating points 
(see section IV.E.8 of this NOFA) if the PHA furnishes additional data 
regarding any of the following:
    a. ``Partnerships.'' PHAs are encouraged to form ``partnerships'' 
consisting of cooperative or contractual arrangements with community-
based entities for the purpose of developing housing so that the 
housing fits into the community and is seen as an integral part of it. 
``Community-based entities'' include private non-profit or for-profit 
entities with experience in the development of low and moderate income 
housing, or that are skilled in the delivery of services to families 
who are residents of public housing. ``Cooperative or contractual 
arrangements'' include those that will facilitate development 
(including management of the units) that will enhance the long-term 
viability of the development; and those arrangements that the PHA has 
for the delivery of services (such as child care, education, and 
economic opportunities) made available to residents of public housing. 
The PHA should indicate who the entity (or entities) are, the 
qualifications of the entity and its principals, and the role they play 
or will play in the development, management, or service delivery 
process which will lead to better acceptance of public housing in the 
community. Such cooperative arrangements require substantive 
involvement by the non-PHA partner in at least one of the following 
areas: Design, management, site selection, representation to the 
community, or service delivery. If the PHA proposes to use public 
housing development funds to pay an entity for its role in the 
arrangement, a justification for sole-source contracting in accordance 
with 24 CFR 85.36(d)(4) must be provided for consideration by HUD. With 
respect to the delivery of services, costs for such services are not 
eligible to be paid from public housing development funds. The PHA must 
also certify that its selection of the cooperative entity (or entities) 
was in compliance with State and local law.

    [Note: If State/local procurement requirements cannot be 
complied with before the application deadline date, the PHA may 
submit a statement with its application indicating that it is in the 
process of arranging such a cooperative relationship and certifying 
that such a relationship will comply with State and local law. In 
such case, within 60 days of the date of publication of this NOFA, 
the PHA must: (1) Identify the entity(ies) proposed to be part of 
the cooperative relationship; (2) describe the qualifications of the 
entity(ies) and of its principals, and the role they will play in 
the development, management, or service delivery process that will 
lead to better acceptance of public housing in the community; (3) 
submit a justification for sole source contracting in accordance 
with 24 CFR 85.36(d)(4) (if the PHA proposes to use public housing 
development funds to pay the entity for its role in the cooperative 
arrangement), and a certification that the selection of the 
entity(ies) was in compliance with State and local law.]

    b. Mixed income development. In order to encourage the development 
of public housing in metropolitan areas that will be less identifiable 
as public housing, PHAs are encouraged to develop units whereby public 
housing would be mixed with market-rate dwellings so that they are 
indistinguishable. Specifically, in order to receive points for this 
factor, a PHA must propose to acquire units in developments where the 
units require incomes that, on average, are at or above 80 percent of 
median, or to acquire sites in developments where the units require 
incomes that, on average, are at or above 80 percent of median.
    c. Past compliance with section 3. The PHA may submit evidence that 
over the past five years it has met any commitments made under the 
provisions of section 3 of the Housing and Urban Development Act of 
1968 (12 U.S.C., 1701u), as amended from time to time, and the 
implementing regulations for section 3 at 24 CFR part 135. If the PHA 
does not have development experience, it may instead submit evidence 
related to such experience with the modernization program.
    d. Proposed compliance with section 3. The PHA may submit its goals 
for complying with section 3 employment and training with regards to 
the public housing development application.
    e. Support for local initiatives. If the application proposes a 
project which, as evidenced by a letter from local officials, actively 
supports an area of local initiative such as a Community Development 
Block Grant, urban revitalization, Empowerment Zone/Enterprise 
Community, or other similar local activity, or includes a commitment 
for a donation to the project in the event it is selected for funding, 
the PHA should describe the activity.
    f. Resident initiatives. If the PHA is working with residents to 
establish and/or foster resident empowerment activities (such as 
establishing Resident Corporations or Resident Management 
Corporations), the activities should be described.

F. Ineligible Applications

    Applications for intermediate care facilities and nursing homes may 
not be approved under this NOFA. Applications for housing designated 
for the disabled and for MROP activities will be the subject of 
separate NOFAs and may not be applied for under this NOFA.

IV. Field Office Processing of Applications

A. Submission of Applications

    The cover letter of all applications must be marked with the date 
and time of receipt, along with the initials of the Field Office 
employee accepting the application. Applications received after the 
date and time specified at the beginning of this NOFA will be returned 
to the applicant. The PHA should obtain a ``Return receipt'' or similar 
evidence of delivery when applications are delivered via other means 
(U.S. Mail, private mailing firms, etc.).

B. 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.
    a. If any 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.
    b. Curable technical deficiencies relate only to items that would 
not improve the substantive quality of a category 4 application, 
relative to the ranking factors.
    c. If Form HUD 52470 (Application) is missing, the PHA's 
application will be considered substantively incomplete, and therefore 
ineligible for further processing. If other forms are missing, such as 
Form HUD 50070 (Drug Free Workplace Certification) or if there is a 
technical mistake, such as no signature, or an unauthorized signatory 
on a submitted form, the PHA will be given an opportunity to correct 
the deficiency.
    2. An application that does not meet the applicable threshold and 
NOFA requirements after the 14-day technical deficiency period will be 
rejected from processing and determined to be unapprovable.
    3. Applications proposing housing in areas also served by the 
Farmers Home Administration (FmHA) are subject to coordination with 
FmHA to assure that assisted housing resources to be provided are not 
duplicative. The State FmHA office shall be advised that an application 
for public housing has been received and is being considered for 
funding, and be provided an opportunity to comment on the application.
    4. The responsibility for submitting a complete application rests 
with the PHA. The 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 failure to submit a complete application.

C. Application Threshold Approvability

    After initial screening and upon expiration of the deficiency 
``cure'' period, complete applications will be examined for threshold 
approvability. Applications that fail one or more of the threshold 
criteria will be rejected from processing and determined to be 
unapprovable. All applications for public housing development funds 
must meet the following thresholds to be determined approvable:
    1. The PHA may not have any litigation pending which would preclude 
approval of the application. The PHA must be legally eligible to 
develop, own, and operate public housing under the USHA and have:
    a. Approved and current PHA organization documents;
    b. Local cooperation agreements to cover units under management, in 
development, and the units requested (Form HUD 52481), and any other 
required local authority;
    c. 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: By executing the PHA Resolution, the PHA certifies that 
it will comply with Title II of the Americans with Disabilities Act 
(42 U.S.C. 12131) and the implementing regulation at 28 CFR part 35. 
The PHA Resolution also certifies to the PHA's intent to comply with 
all requirements of 24 CFR part 941. These requirements include: 
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, as amended (12 U.S.C. 1701u), and HUD's 
implementing regulations at 24 CFR part 135.)

    2. The category of application is eligible under this NOFA (see 
section II.B of this NOFA).
    3. If new construction (conventional or turnkey) has been applied 
for, the PHA has provided a cost comparison or a certification with 
documentation (see section III.B. of this NOFA), and has stated what is 
to be done with the application if new construction is not approvable.
    4. 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.
    5. There are no environmental factors, such as sewer moratoriums, 
precluding development in the requested locality.
    6. The following certifications are included in the application and 
have been executed by the appropriate person(s):
    a. Form HUD-50070, Drug-Free Workplace;
    b. Form HUD-50071, Certification for Contracts, Grants, Loans and 
Cooperative Agreements;
    c. Form SF-LLL, Disclosure of Lobbying Activities, if applicable;
    d. Form HUD-2880, Applicant/Recipient Disclosure/Update Report;
    e. FSS certification;
    f. Section 5(j) certification appropriate to the category of 
application.
    7. The PHA must be in compliance with civil rights laws and equal 
opportunity requirements. A PHA will be considered to be in compliance 
if:
    a. 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 areas(s) of noncompliance;
    b. 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;
    c. There is no deferral of Federal funding based upon civil rights 
violations;
    d. There is no pending civil rights suit brought against the PHA by 
the Department of Justice; or
    e. 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.
    8. For ``other'' applications only:
    a. The Field Office must determine that the PHA has or will have 
the capability to develop and manage the proposed housing. The Field 
Office shall determine capability based upon the PHA's overall score 
under the Public Housing Management Assessment Program (PHMAP) (see 24 
CFR part 901), the PHA's most recent fiscal audit, and outstanding HUD 
monitoring findings. 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. The Field Office must determine that there is a need and a 
market for the proposed household type and bedroom sizes, taking into 
consideration the documentation submitted by the PHA on housing supply 
and demonstration of need, any local plans, and other assisted housing 
(e.g., HUD or FmHA) existing and proposed (including housing funded but 
not completed).

D. Threshold Approvable Applications

    Applications in categories 1, 2, and 3 will be determined 
approvable if they successfully pass the threshold review. Threshold-
approvable applications in category 4 (``other'') will be reviewed and 
analyzed by the Field Office.

E. ``Other'' Development Applications

    Threshold approvable ``Other'' applications will have points 
assigned by a Rating Panel(s) on the basis of Field Office analysis and 
PHA documentation relating to the following criteria. 

------------------------------------------------------------------------
                          Criteria                               Points 
------------------------------------------------------------------------
1. Relative need. The application proposes a project for a              
 locality which has been previously under-funded for the                
 household type (family or elderly) requested, relative to              
 the need for housing for the same household type in the                
 respective metropolitan or non-metropolitan portion of the             
 Field Office's jurisdiction. [Select (a), (b) or (c)]:                 
    (a) Housing need in the locality specified in the                   
     application has been severely under-funded. (A locality            
     with a percentage of need served that is equal to or               
     less than one-half the Field Office percentage will be             
     determined to be severely under-funded.) or.............         20
    (b) Housing need in the locality specified in the                   
     application has received a proportionate share of                  
     funding or has been moderately under-funded. (A locality           
     with a percentage of need served that is equal to or               
     less than the Field Office percentage, but greater than            
     one-half that percentage will be determined to be                  
     moderately under-funded.) or............................         10
    (c) Housing need in the locality specified in the                   
     application has been over-funded. (A locality with a               
     percentage that is greater than the Field Office                   
     percentage will be determined to have been over-funded.)          0
2. Vacancy rate. Select (a) or (b):                                     
    (a) The vacancy rate in public housing projects under               
     management is not greater than 5 percent, indicating               
     that the PHA will and can fully utilize the units for              
     which it applied; or....................................         20
    (b) The vacancy rate in public housing projects under               
     management is greater than 5 percent but less than 6               
     percent (or two units if that is greater)...............         10
3. Large-family housing. The application is for a project               
 comprising 51 percent or more three bedroom or larger units.         20
4. Relocation. The proposed project would primarily assist              
 households displaced or to be displaced by Federal action or           
 a natural disaster in a federally declared disaster area....         10
5. Low density family housing. The application proposes                 
 scattered site development to expand housing opportunities..         10
6. PHA development experience.\1\ [Select (a), (b), or (c)]:            
    (a) The PHA scored at least 90 percent (``A'') in                   
     Indicator 12 (Development) of PHMAP or..................         20
    (b) The PHA's latest PHMAP score for Indicator 12                   
     (Development) is between 80 and 89 percent; or the Field           
     Office has no information on the PHA's previous                    
     development experience to rate the PHA under paragraph             
     (a) above; however, the application demonstrates the               
     capability for, and the expectation of, expeditious                
     quality or other development experience, or submitted a            
     development management contract with an experienced PHA)           
     or......................................................         15
    (c) The PHA's latest PHMAP score for Indicator 12                   
     (Development) is between 60 and 79 percent; or the PHA             
     has no development experience under either paragraph (1)           
     or (2) above, but the PHA has evidenced staff capability           
     and organization that demonstrates the PHA has the                 
     capability for, and the expectation of, expeditious                
     quality development or has submitted a proposed                    
     development management contract.........................          5
7. PHA management experience.\2\ (Select (a), (b), or (c)):             
    (a) The PHA's latest PHMAP score (excluding development)            
     is 90 percent or better; and there were no Inspector               
     General audit findings during the PHA's last fiscal                
     audit; and there are no outstanding HUD monitoring                 
     findings or.............................................         20
    (b) The PHA's latest PHMAP score (excluding development)            
     is between 80 and 89; and Inspector General audit                  
     findings (if any) have been addressed; and outstanding             
     HUD monitoring findings have been resolved or...........         10
    (c) Choose (1) or (2):                                              
        (1) The PHA's latest PHMAP score (excluding                     
         development) is between 60 and 79; and Inspector               
         General audit findings (if any) have been addressed;           
         and outstanding HUD monitoring findings have been              
         resolved or.........................................          5
        (2) The PHA has no public housing in management, but            
         has management experience in the section 8 program             
         and management reviews or inspector General audit              
         findings (if any) are being addressed satisfactorily          5
8. Other criteria. (Select any that apply.):                            
    (a) The PHA indicated that it has formed a                          
     ``partnership'' (i.e., a cooperative relationship) with            
     an entity that will play a substantive role in design,             
     management, selection, or representation to the                    
     community; or the PHA has submitted evidence that it has           
     formed a ``partnership'' with an entity that plays a               
     substantive role in the delivery of services and that              
     these services will be available to residents of the               
     project under development...............................          5
    (b) The PHA has certified that it will acquire units in             
     developments where the non-public housing units require            
     incomes that, on average, are at or above 80 percent of            
     median, or that it will acquire sites in developments              
     where the units require incomes that, on average, are at           
     or above 80 percent of median...........................          5
    (c) The PHA has submitted evidence that over the past               
     five years it has met any commitments made under the               
     provisions of section 3 of the Housing and Urban                   
     Development Act of 1968 (12 U.S.C., 1701u), as amended             
     from time to time, and the implementing regulations for            
     section 3 at 24 CFR part 135. If the PHA does not have             
     development experience, it may instead submit evidence             
     related to its experience with the modernization program          5
    (d) The PHA has submitted its goals for complying with              
     section 3 employment and training with regards to this             
     application.............................................          5
    (e) The application proposes a project which, as                    
     evidenced by a letter from local officials, actively               
     supports an area of local initiative such as a Community           
     Development Block Grant, urban revitalization,                     
     Enterprise Zone, or other similar local activity, or               
     includes a commitment for a donation to the project in             
     the event it is selected for funding....................         15
    (f) The Field Office, based on documentation submitted by           
     the PHA, has determined that the PHA is working with               
     residents to establish and/or foster resident                      
     empowerment activities (such as establishing Resident              
     Corporations or Resident Management Corporations).......          5
                                                              ----------
        Total Possible Points................................        160
------------------------------------------------------------------------
\1\The Department reserves the right to require contracted oversight of 
  the administration of the project's development where it deems        
  necessary.                                                            
\2\The Department reserves the right to require contracted oversight of 
  the administration of the project implementation where it deems       
  necessary.                                                            

F. Field Office Reports

1. Category 1, 2, and 3 Applications
    Each Field Office shall forward its lists (by category) of fair-
share exempt threshold-approvable applications to Headquarters within 
two weeks of the deficiency ``cure'' period. The lists shall include 
the project number, total number of units and units by bedroom size, 
structure type(s), cost areas, funding required and the metropolitan/
non-metropolitan designations for each application. Category 1 and 2 
applications shall also identify the underlying project and its current 
status (e.g., approved (date), under review in Field Office, etc.).
2. Category 4
    All Field Office reports to Rating Panels on threshold-approvable 
``other'' applications shall be submitted within four weeks of the 
deficiency ``cure'' period and include the information described in 
F.1., above, the analysis of each application, and Field Office 
recommendations for funding.

V. Rating Panels

A. Rating Panels

1. General
    The Rating Panel(s) shall ensure that all category 4 applications 
have been properly determined to be threshold-approvable. The Rating 
Panel(s) shall compile data furnished by Field Offices for category 4 
(other) applications, and rate each application based on Field Office 
analyses, comments, and recommendations.
    A list of rated applications shall be forwarded to Headquarters, 
with copies of Field Office reviews and recommendations, and 
justifications for Rating Panel rankings. Headquarters shall not modify 
ratings of category 4 (``other'') applications unless a gross error has 
occurred.
    Examples of ``gross errors'' include, but are not limited to, 
errors in calculating the vacancy rate in the proposed community, or 
assigning points for development/management experience based on a PHMAP 
score that was successfully appealed, or simple errors of arithmetic.
    Changes in ratings shall be fully documented, and a copy of the 
memorandum authorizing the change (and the basis thereof) shall be sent 
to the Rating Panel and to the Field Office for inclusion in the file 
and be made available for public inspection. Category 4 applications 
shall be approved within Areas, to the extent fair share funds are 
assigned, as follows:
2. ``Tight Market'' Determination
    Headquarters will separate ``other'' applications (category 4) on 
the basis of ``tight rental housing market'' and Rating Panel ratings 
and Headquarters rankings, and approve them (in the following order) to 
the extent fair share funds are assigned to their respective Area:
    a. Applications within the same Area in tight rental housing 
markets which receive 80 or more rating points;
    b. All other applications in the same Area, in rank order, 
depending on ``metropolitan'' or ``non-metropolitan'' funding 
available.

B. Reservation of Funds

    Funds will be reserved in an amount equal to the total development 
cost limit for the number, structure type, and size of units being 
approved, ``trended'' to take into consideration the anticipated cost 
of construction at the time the construction/rehabilitation contract is 
expected to be executed; acquisition reservations will be trended to 
take into account anticipated cost variations between fund reservation 
and Date of Full Availability (DOFA). The trend shall be calculated by 
multiplying the project total development cost limit by 6 percent 
(1.06), rounded to the nearest $50. No amendment funds will be 
available for these projects in the future.

C. Partial Funding

    Partial funding of highly ranked ``other'' applications within an 
Area may occur (so long as such projects are determined viable and the 
PHA has indicated willingness to accept fewer units) to facilitate the 
funding in rank order of additional applications for highly ranked 
projects.

VI. Checklist of Application Submission Requirements--All Programs

A. Submission Requirements

    PHAs may use the following application checklist, which enumerates 
the submission requirements of section III of this NOFA.
    1. Cover letter.
    2. Form HUD 52470, Application for Public Housing Development;
    3. Evidence of legal eligibility (if not previously evidenced) with 
a current General Certificate (HUD 9009);
    4. Evidence that the number of units in management, in development, 
and being requested in this application are covered by Cooperation 
Agreements (HUD 52481) and any other State/local requirements have been 
met;
    5. HUD 52471, PHA Resolution in Support of Public Housing;
    6. 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. See section 
III.A.6. of this NOFA);
    7. PHA statement identifying its funding preferences if more than 
one application is being submitted for category 4 (see section II.B of 
NOFA).

    (Note, however, that no more than one application per locality 
may be filed under category 4.);

    8. PHA statement whether it will accept fewer ``other'' units than 
applied for (category 4);
    9. HUD 50070, PHA Certification for a Drug-Free Workplace;
    10. HUD-50071, Certification for Contracts, Grants, Loans and 
Cooperative Agreements;
    11. Form SF-LLL, Byrd Amendment Disclosure and Certification 
Regarding Lobbying, only if the applicant determines it is applicable;
    12. Form HUD 2880, Disclosure of Government Assistance and Identity 
of Interested Parties;
    13. Section 5(j) certification appropriate to the category of 
application;
    14. Evidence of inadequate housing supply (i.e., a ``tight'' rental 
housing market), for category 4 (``Other'') units;
    15. Evidence (such as waiting list information or PHA vacancy rate 
data) of need and market for the units requested for category 4 
applications;
    16. Section 6(h) cost comparison justification, if new construction 
is requested;
    17. FSS program certification;
    18. Replacement housing exhibits, if applicable (see section 
III.C).
    19. (Optional) For ``other'' applications, documentation to address 
the rating factors (see section IV.E.).

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.

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. (See section II of this NOFA.) 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 sub-recipients 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.

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.

F. Section 112 of the HUD Reform Act of 1989

    A final rule published in the Federal Register on September 7, 
1993, amended the definition of ``person'' to exclude from coverage a 
State or local government, or the officer or employee of a State or 
local government or housing finance agency thereof who is engaged in 
the official business of the State or local government.
    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.

G. Prohibition Against Advance Disclosure of 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. 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.)

H. 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 subpart C, and the notice published in the Federal 
Register on January 16, 1992 (52 FR 1942), for further information on 
these disclosure requirements.)

    Dated: May 17, 1994.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 94-12565 Filed 5-23-94; 8:45 am]
BILLING CODE 4210-33-P