[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]
_______________________________________________________________________
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
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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