[Federal Register Volume 59, Number 112 (Monday, June 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14282]
[[Page Unknown]]
[Federal Register: June 13, 1994]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Public and Indian Housing
[Docket No. N-94-3761; FR-3538-N-01]
NOFA for Vacancy Reduction Program
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice of funding availability.
-----------------------------------------------------------------------
SUMMARY: This NOFA announces the availability of funding for activities
under the Vacancy Reduction Program. Under this program, certain public
housing agencies (PHAs) are required to develop and submit a plan
regarding vacancies in units owned or operated by the PHA. Assessment
teams have conducted on-site assessments of the vacancy situation at
known eligible PHAs, and when notified will conduct an assessment at
any PHA that meets the eligibility requirements but has not been
assessed. In addition, when requested, HUD will provide assistance to
any eligible PHA in developing its vacancy reduction plan. Although
funds available under this NOFA will be used to implement the plans,
these funds are intended to supplement other initiatives of the PHA
that will reduce the rate of vacancies in a PHA's inventory. The NOFA
contains information on the following:
(a) The purpose of the NOFA, available amounts, and eligibility;
and
(b) Application processing, including how to apply, the required
content of the application, and how selections will be made.
DATES: An application must be submitted before 4 p.m. (Eastern Standard
Time) on July 28, 1994.
Any PHA that considers itself eligible for funding under this NOFA,
but that has not yet been scheduled for an assessment under 24 CFR
968.410, must request an assessment before June 28, 1994.
The above-stated deadlines are firm as to date and hour.
Applications may be hand-delivered or mailed, but applications sent by
facsimile will not be accepted.
ADDRESSES: The original completed application must be submitted to:
Attention: Office of Assisted Housing, Department of Housing and Urban
Development, 451 Seventh St., SW., room 4204, Washington, DC 20410; one
copy must be sent to the appropriate HUD Field Office; and a one copy
must be sent to each member of the assessment team.
FOR FURTHER INFORMATION CONTACT: MaryAnn Russ, Director, Office of
Assisted Housing, Department of Housing and Urban Development, 451
Seventh Street, SW., room 4204, Washington, DC 20410, telephone (202)
708-1800 or (202) 708-1380 (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 Office of Management and Budget (OMB), under
section 3504(h) of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-
3520), and assigned OMB control number 2577-0181.
I. Purpose and Substantive Description
A. Authority
The funding made available under this Notice of Funding
Availability (NOFA) is authorized as a set-aside by section 115(a) of
the Housing and Community Development Act of 1992 (Pub. L. 102-550,
approved October 28, 1992) (1992 Act). Section 115(a) requires a
percentage of the amounts available under section 14 of the United
States Housing Act of 1937 in fiscal years 1993 and 1994 to be set
aside for the Vacancy Reduction Program. Final implementing regulations
for the Vacancy Reduction Program are published elsewhere in today's
Federal Register.
In the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1993 (Pub. L.
102-389, approved October 6, 1992; 106 Stat. 1582) (1993 Appropriations
Act), Congress appropriated $3.1 billion for activities under section
14, and in the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1994 (Pub. L.
103-124, approved October 28, 1993 (1994 Appropriations Act), Congress
appropriated $3.23 billion for these activities. A total of
$202,560,000 in set-asides is available for this program to fund
Vacancy Reduction Program activities.
B. Allocation Amounts
A portion of the funds available for this program will be used for
travel and administrative expenses of the assessment teams, as
authorized by Section 115 of the 1992 Act. Of the remaining amount, no
PHA applying for funding under this NOFA may receive more than 15
percent of the total available funds.
Subject to this 15 percent limitation, eligible public housing
agencies (PHAs) that are Comprehensive Improvement Assistance Program
(CIAP) agencies will be provided funding in the full amounts approved
for Vacancy Reduction Program activities. For PHAs that are
Comprehensive Grant Program (CGP) agencies, if insufficient funds
remain to fund all eligible and approved activities under this NOFA,
the amount to be reserved for each CGP agency will be its pro rata
share of the total remaining funds available, in accordance with
Section I.J(3) of this NOFA.
All units that are funded in whole or in part by the Vacancy
Reduction Program must be brought into compliance with the Housing
Quality Standards (HQS), as set forth in 24 CFR 882.109, and must be
readily marketable when the work is completed.
C. Background
In order to gain greater insight into the vacancy problems of the
PHAs required to participate in the Vacancy Reduction Program, the
Department sent a survey form on April 2, 1993, to all PHAs that, based
on HUD data bases, were troubled or mod-troubled on January 1, 1993, or
had a vacancy rate that exceeded 15.9% on that date. Of the 400
identified PHAs, 345 responded to the survey. These PHAs reported a
total of 56,324 vacancies, about half of the total vacancies
nationally. The responses showed that additional funding was necessary
to cure only half of the vacancies in the inventories of the responding
PHAs.
Of those vacant units whose occupancy was not dependent upon
additional funding, the reasons for and percentages of the total
vacancies were as follows:
Ready, awaiting leasing--5.7%;
No demand (defined as few or no persons on the waiting
list)--3.5%;
Undesirable (defined as requiring 4 or more offers to
obtain a tenant, but not requiring funding)--2.0%;
Funded under a modernization program--29.7%;
In litigation--6.5%; and
Other reason not requiring funding--3.2%.
Of those units in which vacancies could be eliminated with
additional funding, the reasons for and percentages of the vacancies
were as follows:
Awaiting demolition--5.4%;
Needing modernization--30.0%;
Needing repair--12.8%; and
Other reason requiring funding--1.1%.
Of the vacant units that would benefit from additional funding, the
estimated costs of rehabilitation (exclusive of any costs for lead-
based paint testing and abatement) and percentage of total vacancies
were as follows:
Up to $5,000--4.8%;
$5,000-10,000--14.8%;
$10,000-25,000--7.1%; and
Over $25,000--13.8%.
Thus, almost 20% of all vacancies in these high-vacancy PHAs could
be remedied for a cost of $10,000 or less per unit, plus the cost of
any lead-based paint activity, essential management improvements,
Section 504 (of the Rehabilitation Act of 1973) rehabilitation, or
other essential costs.
The Department seeks maximum efficiency in the use of Vacancy
Reduction Program funds. To this end, the Department met with public
housing interest groups and resident representatives on January 28 and
July 9, 1993, to discuss the needs of public housing that might be met
by this program. As a result, the Department has decided to focus this
NOFA on units that can be rehabilitated for occupancy at a modest cost,
and on units with more expensive rehabilitation costs where the PHA has
the ability and agrees to provide the remainder of the funding
necessary to prepare the property for occupancy. In this way, the
Department hopes to house the optimal number of additional families
using the available program funds.
The survey has enabled the Department to proceed with vacancy
assessments (see 24 CFR 968.410 in the final rule published elsewhere
in today's Federal Register and the preamble of the proposed rule,
published at 58 FR 29728) for those PHAs that responded to the survey
and indicated an inventory of unfunded vacant units. Other PHAs that
did not receive a survey form or did not respond to the survey, but
that believe they are eligible under this NOFA and wish to apply for
funding, must notify the Department so that an assessment can be
scheduled as indicated under DATES, at the beginning of this NOFA.
The Vacancy Reduction Program is not designed to focus solely on
the rehabilitation of vacant units; the program also is intended to
identify and correct site and management deficiencies as necessary to
achieve and sustain occupancy of vacant units. Management problems in
some of the high-vacancy PHAs also may be responsible for vacancies.
These problems may include high turnover, poor maintenance and
security, delays in making units ready for occupancy after they are
vacated, delays in placing tenants in units as soon as they are ready,
or inability to deal with marketability problems that could be
addressed successfully. Therefore, management improvements that are
necessary for a PHA to achieve and maintain a high level of occupancy
and to manage turnover successfully also will be funded under this
NOFA. The vacancy assessments will assist the PHAs and HUD in
identifying what actions need to be taken in this regard.
Some PHAs may have difficulty preparing an application, including a
vacancy reduction plan. The Department will, on request by the PHA,
assist the PHA in preparation of the plan. Such assistance may be
requested by telephoning Strategic Resources, Inc. (703) 749-3040.
Moreover, if an application submitted in response to this NOFA is
technically approvable under the NOFA, but is deemed by HUD to need
improvement or supplementation in specific areas of the PHA's plan to
increase the potential for success, HUD will require changes in the
plan before execution of the amendment of the Annual Contributions
Contract (ACC).
D. Definitions
The following definitions apply to this NOFA, in addition to the
definitions that apply generally to the program under Sec. 968.405 of
the final rule published elsewhere in today's Federal Register:
Assistant Secretary means the Assistant Secretary for Public and
Indian Housing.
Eligible unit means a dwelling unit that satisfies the conditions
under either paragraph (1) or paragraph (2) of this definition, as
applicable. The unit must be either:
(1) A vacant unit that meets the characteristics of both of the
following paragraphs (1) (a) and (b):
(a) The cost of rehabilitation necessary to make the unit available
for occupancy and marketable (including development-wide physical
improvements and other necessary costs, but not including costs of
lead-based paint activity, costs for accessibility for those with
disabilities, and management improvement funding) is either:
(i) $8,000 or less, when averaged with other vacant units in the
development for which the PHA is applying for this category of funding
(i.e., average of not more than $8,000 per unit); or
(ii) More than $8,000, when averaged with other vacant units in the
development for which the PHA is applying for this category of funding
(i.e., average of more than $8,000 per unit), and the PHA has available
funding that it agrees to use to pay the costs in excess of $8,000 per
unit. ``Available funding'' includes funds legally available to the PHA
by September 30, 1994; and
(b) The unit will be marketable when it has been made ready for
occupancy. Units that cannot be made marketable, for any reason, are
not eligible to be funded under this NOFA, and funds should not be
requested for them in the application. Such units, however, must be
included in the vacancy reduction plan; or
(2) An occupied unit, if either:
(a) The unit meets the criteria of paragraphs (1)(a)(i) or (ii) and
paragraph (1)(b) of this definition, and either:
(i) In order to address the overall vacancy situation at a PHA, it
is necessary to move a resident family to another unit. The unit
vacated by that family may then be considered an eligible unit. For
example, if a PHA has vacant one-bedroom units for which there is no
demand, but also has overhoused families that could be transferred to
the one-bedroom units (thus freeing up larger units for which there is
a demand), the PHA could request funding under this NOFA for both
units; or
(ii) The unit is expected to be vacated under the Moving to
Opportunities Program; or
(b) The PHA has fewer vacancies on the date of its application than
it had on September 1, 1993, and the PHA had expended funds on
rehabilitation of the unit in reasonable anticipation of reimbursement
from Vacancy Reduction Program funds. The PHA may be reimbursed for the
cost of the rehabilitation only if funds remain available after HUD has
funded all other eligible costs at all PHAs applying for funds.
Lead-based paint activity includes lead-based paint risk
assessments, risk management (interim containment), testing, and
abatement, consistent with the Lead-Based Paint Poisoning Prevention
Act (42 U.S.C. 4821-4826) and HUD implementing regulations at 24 CFR
parts 35, 965, and 968.
Marketable means that there is a waiting list for units of the
applicable size and that either the past experience of the PHA would
indicate that the unit should lease reasonably quickly after completion
of the work funded under this program, or other available data
indicates that physical and management improvements, including more
extensive outreach, would likely result in a demand for the units.
Repair includes routine maintenance when essential to the
reoccupancy of the eligible vacant units.
Vacancy Reduction Plan means a plan developed by the PHA that
includes the following:
(1) The statements required by Sec. 968.407(b) of the final rule
(also see Appendix to this NOFA) published elsewhere in today's Federal
Register;
(2) For all vacant units, reported by development, information on
the:
(i) Number and percentage of units vacant at the time of
application under this NOFA;
(ii) Number and percentage of units expected to be occupied by each
semiannual date after the submission of the PHA's vacancy reduction
plan, as provided under paragraph (3) of this definition, including
date of full occupancy;
(iii) Source of funding and expected percentage of funds to be
obligated and expended by each semiannual date, as provided under
paragraph (3) of this definition; and
(iv) Expected date of any demolition or disposition, and the number
of units involved in this activity.
(3) A schedule, by chart or time line, indicating milestones for
vacancy reduction activities (all vacant units must be included
regardless of whether they require funding and whether they have
already been funded). The schedule shall indicate all actions that will
have been taken as of the end of each semiannual period, either
September 30 or March 31.
(i) Actual calendar dates shall be used for units that do not
require vacancy reduction program funding, but will be funded from
sources within the control of the PHA (e.g., CGP and the operating
budget) or have already been funded by another governmental program
(e.g., CIAP, the Severely Distressed Public Housing Program).
(ii) For units for which specific calendar dates cannot be given
because approval from HUD is a prerequisite to the action, the schedule
shall specify semiannual dates from the expected HUD approval (e.g.,
first semiannual reporting date after approval, second semiannual
reporting date after approval, etc.). Such units include those for
which the PHA is requesting or intends to request funding under the
Vacancy Reduction Program or another HUD program (e.g., CIAP or the
Severely Distressed Public Housing Program), or for which approval of
demolition/disposition is required but has not yet been granted.
E. PHA Eligibility
(1) Indian Housing Authorities are not eligible for the Vacancy
Reduction Program.
(2) To be eligible under this NOFA, a PHA must:
(a) Have had a vacancy rate that exceeded 15.9% on March 30, 1993,
the date used in the HUD survey of vacancies;
(b) Have had a receiver appointed for the PHA pursuant to section
6(j)(3) of the United States Housing Act of 1937; or
(c) Have been a designated troubled or mod-troubled PHA any time
within the twelve-month period that ended September 1, 1993. Such a PHA
must also meet either of the conditions described in paragraphs (i) and
(ii) below:
(i) The PHA has demonstrated substantial progress on the following
vacancy related Public Housing Management Assessment Program (PHMAP)
indicators: 1 (Vacancy Number and Percentage), 2 (Modernization), 5
(Unit Turnaround), 6 (Outstanding Work Orders), or 7 (Annual Inspection
and Condition of Units and Systems), as demonstrated by a PHMAP score
of ``C'' or better. If the PHA does not have a score of ``C'' or better
on these indicators, substantial progress may be demonstrated as
follows:
(A) Evidence that the PHA, based on more recent data would qualify
for a score of ``C'' or better on the indicators; or
(B) A statement of alternative arrangements that have been made to
assure effective administration of the function covered by the
indicator, i.e., rehabilitation and modernization activities (in regard
to the units for which funding is requested) and the PHA-wide
administration of unit turnaround, work orders, and preventive
maintenance; or
(ii) The PHA has provided a reasonable assurance that substantial
progress will be made to remedy any management deficiencies identified
by the assessment team, or any vacancy-related management deficiencies
related to PHMAP indicators 1, 2, 5, 6, and 7, through activities that
have already begun or will be initiated in the next six months,
including activities to be funded under this NOFA. The assurance may
cross-reference management improvement activity described in its
vacancy reduction plan.
F. Eligibility of Activities and Costs
(1) Eligible Activities. The following activities are eligible for
funding to the extent that they are essential to the goal of improving
and maintaining a lower vacancy rate at the PHA. The extent to which
activities requested for funding are essential to the achievement of
this goal will be determined by HUD on the basis of the application and
the vacancy assessment.
(a) Management improvements that have the following
characteristics:
(i) The management improvements generally may not exceed 25% of the
hard costs to be funded (exclusive of costs for lead-based paint
abatement and handicapped accessibility), except that higher amounts
for management improvements may be approved when such expenditures are
deemed by HUD to be critical to the reduction of vacancies in the PHA.
Management improvements include, but are not limited to: activities
permitted under paragraph 2-3 of CIAP Handbook 7485.1 (Rev. 4); equal
opportunity and civil rights training; and the development of
appropriate procedures when there are management problems regarding the
PHA's administration of equal opportunity requirements; and
(ii) The management improvement costs shall be funded one time
only, to cover a period not to exceed three years or, with regard to
PHAs with serious management difficulties, such period as is proposed
by the PHA and approved by HUD. Where an approved Vacancy Reduction
Program includes management improvements that involve ongoing costs,
such as security, HUD will not be obligated to provide any continued
funding or additional operating subsidy after the funded period. The
PHA shall be responsible for finding other funding sources or reducing
its ongoing management costs.
(b) Rehabilitation or repair of vacant eligible units to bring the
unit at least into compliance with the Housing Quality Standards (HQS),
as set forth in 24 CFR 882.109. Correction of HQS deficiencies outside
the unit is not required, unless the correction of the HQS deficiencies
is essential to the marketability of the vacant units in the
development. Any physical component that is replaced must meet the
standards for such components set forth in the Public Housing
Modernization Standards Handbook, 7485.2 Rev.1.
(c) Costs necessary to provide accessibility in eligible units to
persons with disabilities, in accordance with the requirements of
Section 504 of the Rehabilitation Act of 1973 and the Americans with
Disabilities Act of 1990.
(d) Lead-based paint activity, as defined in Section I.D of this
NOFA, in eligible units. For lead-based paint (LBP) activities, the PHA
is required to comply with 24 CFR part 965, subpart H, and 24 CFR part
35.
(e) Development-wide improvements that are essential to the
marketability of the eligible units, such as improvements made to
enhance security or ``curb appeal.''
(f) Reconfiguration of the interior of buildings or units when
there is documentation of significant problems in marketability for the
currently available unit size. Documentation for reconfiguration must
meet the requirements of HUD Handbook 7465.1 REV. In addition, where
reconfiguration is requested, applicants must document that the lack of
demand for these units is not compounded by the failure of the PHA to
transfer inappropriately housed families. Approval of an application
under this NOFA that includes reconfiguration activity will constitute
HUD approval of the reconfiguration and no further HUD approval is
necessary.
(g) When vacancies are attributable to families being overhoused,
activities relating to reassigning those families and repairing of the
occupied units made vacant by the reassignment may be included in the
PHA request, if the reassignment is essential to correcting the vacancy
problem. However, such units will be considered only if the
reassignment and repair is likely to result in a decrease of the
vacancy rate in the PHA.
(h) Other related activities and improvements eligible under the
modernization program (see 24 CFR part 968), such as administrative
expenses, fees and costs, nondwelling structures and equipment, and
relocation, but only to the extent that such costs are necessary to
support activity otherwise eligible and are essential to the
achievement and maintenance of a lower vacancy rate.
(i) Demolition of vacant units, when a demolition application has
been approved by HUD and the demolition has not been previously funded.
(j) If the PHA has fewer vacancies on the date of its application
than it had on September 1, 1993, the PHA will be reimbursed for the
costs of rehabilitating the formerly vacant units only if funds remain
available after the Department has funded all other eligible costs at
all PHAs applying for funds.
(2) Eligible Costs. The total amount of funding for which a PHA is
eligible is the sum of the following:
(a) For each development, the necessary costs of rehabilitation of
eligible units; development-wide physical improvements, including
common areas; demolition; or reconfiguration. These costs are not to
exceed $8,000 times the number of eligible units in the development at
the time of application.
(b) Necessary costs of management improvements, not to exceed 25%
of the total hard costs to be funded for all developments (exclusive of
costs for lead-based paint abatement and handicapped accessibility),
except that the Assistant Secretary may approve higher amounts for
management improvements when such expenditures are deemed critical to
reduction of vacancies in the PHA;
(c) Other related costs as discussed in paragraph (1)(h) (under
``Eligible Activities'') of this Section I.F;
(d) Necessary costs for lead-based paint containment or abatement
in eligible units; and
(e) Necessary costs for handicapped accessibility for eligible
units.
(3) Ineligible Activities. Activities are not eligible if the
activities are under contract; have been selected for funding from
other sources, such as Urban Revitalization Demonstration (URD) grants,
CIAP, or State or local funding; or if the PHA has sufficient funds in
its operating budget or pursuant to its formula grant under the CGP to
fund the activities.
Sufficiency of funds will be determined as follows:
(a) For hard costs, a CGP agency will be deemed to have
insufficient funds for the activities if the Assessment of Physical
Needs in the Comprehensive Plan shows a need for funds greater than the
funds expected to be available to the PHA under the CGP in the next
five years.
(b) For management improvements, a CGP agency will be deemed to
have insufficient funds if:
(i) For CGP agencies, the Management Needs Assessment in the
Comprehensive Plan shows a need for funds greater than 10% of the funds
expected to be available to the PHA under its CGP in the next five
years; and
(ii) The PHA plans to use at least 10% of its CGP funds for
management improvements in each of the next five years.
(c) In addition, for CGP and Comprehensive Improvement Assistance
Program (CIAP) agencies, operating funds will be deemed to be
insufficient only if the PHA has an operating reserve of less than 75%
of the maximum allowable reserve.
G. Resident Involvement
The PHA shall develop a process that assures that residents are
fully briefed, have an opportunity to comment on the proposed content
of the PHA's application in response to this NOFA, and to be involved
in all phases of the process. Particular attention shall be given to
opportunities for resident employment. The PHA shall give full
consideration to the comments and concerns of residents. The process
shall include:
(1) Informing residents of the applicable housing developments
about the preparation of the application, including a discussion of the
report of the assessment team and actions that will be taken to address
any deficiencies;
(2) Once a draft application has been prepared, the PHA shall make
a copy available for reading in the management office; provide copies
of the draft to any resident organization representing the residents of
any development involved; and provide adequate opportunity for comment
by the residents of the developments and their representative
organizations prior to making the application final;
(3) Providing to HUD and any resident organization representing the
development a summary of the resident comments and the PHA's response
to them; and notifying residents of the developments that the summary
and responses are available for reading in the management office; and
(4) After HUD approval of a grant, notifying residents of the
development and any representative organizations of the approval of the
grant; providing any resident organization with a copy of the HUD-
approved implementation schedule; notifying the residents that the
schedule is available in the management office for reading; and
developing a system to facilitate regular resident monitoring of the
program.
H. Resident Training, Employment, and Contracting
The Vacancy Reduction Program provides an ideal opportunity to
enhance resident training, employment, and contracting. In furtherance
of HUD goals and priorities, PHAs should, to the greatest extent
possible, provide such opportunities for residents under this program,
including development of programs under section 3 of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701u) (Section 3). Section 3
requires best efforts on the part of the PHA to give low- and very low-
income persons training and employment opportunities generated by
Vacancy Reduction Program assistance, and to award contracts for work
to be performed in connection with Vacancy Reduction Program assistance
to business concerns that provide economic opportunities for low- and
very low-income persons. A PHA shall include in its vacancy reduction
plan the projected number of residents the PHA expects to be trained or
hired, and the number of business firms that provide economic
opportunity to low- and very low-income persons to be contracted with
for vacancy reduction activities, whether directly by the PHA or
through business concerns with which the PHA has contracts for vacancy
reduction activities.
I. Required Results
(1) Except as provided below, funds provided under this NOFA must
be expended and units reoccupied within 24 months from the date of
funding, and management improvements must be implemented fully within 3
years from the date of funding. However, the Assistant Secretary for
Public and Indian Housing may approve alternative schedules proposed by
PHAs with significant management improvement needs. Funds awarded under
this program that are not obligated on a timely basis may be
recaptured.
(2) During the funding period, move-ins to developments funded
under this program must at least equal the number of move-outs plus the
number of units funded under this program (excluding units that are
vacated for modernization and later reoccupied after modernization). At
the end of the funding period, the PHA's current vacancy rate must be
reduced to the extent of the number of units funded under this program.
J. Selection and Funding Process
(1) Sufficiency of Application. In order to be considered for
funding, an application must be complete and consistent with the terms
of this NOFA, and the vacancy reduction plan must generally be
consistent with the recommendations of the assessment team. The
Department recognizes that some variance will exist since some of the
assessments already conducted concentrated on units that could be
repaired for $10,000 or less. In determining the amount of funds to be
reserved for each approvable application, HUD will review the request
for consistency with the recommendations of the assessment team and
will consider any other information HUD may have available. When an
approvable vacancy reduction plan submitted in response to this NOFA
needs improvement or supplementation, HUD will require any necessary
changes or additions to the plan, and will assist the PHA in revising
its plan, before execution of the amendment of the ACC.
(2) Management Deficiencies. If a PHA does not adequately address
management weaknesses that contribute to its vacancy problem and have
been reported by the assessment team, its application will be deemed
ineligible for funding.
(3) Funding Decisions. When a PHA is requesting funding for
eligible units in which rehabilitation costs will exceed an average of
$8,000 (see paragraph (1)(a)(ii) in the definition of ``eligible unit''
in Section I.D of this NOFA), HUD will determine whether the PHA's plan
to fund the cost above an average of $8,000 per unit is reasonable.
However, no PHA may receive greater than 15 percent of the total amount
of funding available.
(a) CIAP Agencies. HUD will fully fund all eligible units and
associated costs (as defined in Section I.F of this NOFA) for which
CIAP agencies apply.
(b) CGP Agencies. From the remaining funds HUD will fund eligible
applications from CGP agencies to the extent funding is available. Of
the total funds remaining available for CGP agencies, 75 percent will
be made available for units eligible under paragraph (1)(a)(i) in the
definition of ``eligible unit'' in Section I.D, ``Definitions,'' of
this NOFA. The other 25 percent will be made available for units
eligible under paragraph (1)(a)(ii) of that definition of ``eligible
unit''.
(i) If the amount of funds available is sufficient to fund fully
(including the costs of management improvements, lead-based paint
control, and accessibility for the disabled) all CGP agencies in either
category of funding, HUD will fund those requests fully.
(ii) If the total funding requested by CGP agencies in any category
exceeds the total amount of funds available in that category, the
amount to be reserved for each CGP agency will be determined as
follows, except that an agency will not be funded at a level exceeding
its budget request:
(A) If the amount of available funding is sufficient, each CGP
agency will be funded for its eligible costs (exclusive of management
improvements and the costs of lead-based paint control and
accessibility for the disabled). If funds remain available after
funding the requested costs under this paragraph, each CGP agency will
receive a pro rated share of the remaining funds, according to the
ratio of eligible related costs (i.e., management improvements and the
costs of lead-based paint control and accessibility for the disabled)
requested by the agency to the total of eligible related costs
requested by all CGP agencies.
(B) If the amount of available funding is not sufficient to fund
all eligible costs costs under paragraph (3)(b)(ii)(A) of this Section
I.J, the funding allocated to each CGP agency will be its pro rata
share of funds, determined by using the same ratio as the number of
eligible units in the CGP agency in that category for which funding is
requested to the total number of eligible units in that category for
which funding is requested by all applicant CGP agencies.
(iii) If funds remain available in either category and there are
unmet needs in the other category, the excess funds will be reallocated
to the category in which additional funding is needed.
(iv) If applications from CGP agencies are not fully funded, those
agencies will be required to revise their vacancy reduction plans and
budgets to indicate which items will be funded with the amounts
reserved for the CGP agency under this program and state alternative
plans for unfunded vacancies. To the extent that funds are prorated for
its units averaging more than $8,000 in costs, each CGP agency
receiving program funds under paragraph (1)(a)(ii) of that definition
of ``eligible unit'' in Section I.D, ``Definitions,'' will be required
to commit a portion of the funds the agency had agreed to commit from
independent resources if those units had been funded in the full amount
requested. This portion will be determined by applying (to the total
commitment made in the application) the ratio of funding received for
those units to funding requested for those units.
(c) Remaining funds. If funds remain available after funding all
eligible activities under paragraphs (a) and (b) of Section I.J(3),
``Funding Decisions,'' of this NOFA, a PHA may be reimbursed for costs,
or a portion of costs, associated with rehabilitating certain occupied
units. The PHA must have fewer vacancies on the date of its application
than it had on September 1, 1993, and must have expended funds on those
units in reasonable anticipation of reimbursement from Vacancy
Reduction Program funds.
K. Implementation of Plan and Other Programs
(a) An applicant's vacancy reduction plan must be approved before
an application is funded under this NOFA even though, in most cases,
the plan will cover the physical treatment of many units that are not
eligible under this NOFA. The PHA is expected to implement the plan
using available funds, including the operating budget and CGP funds,
and by requesting funds under discretionary programs, including CIAP
and the Severely Distressed Public Housing Program. HUD will monitor
implementation of the vacancy reduction plan.
(b) Eligible units that a PHA originally planned to fund with CGP
funds may also be funded under this NOFA, as long as they are not
currently under contract. The PHA may then reprogram its CGP funds to
other work set forth in the Five-Year Action Plan.
II. Application Process
A. Submission of Application
An application must be submitted before 4 p.m. (Eastern Standard
Time), July 28, 1994.
An original completed application must be submitted, as follows:
(1) One to: Attention: Director, Office of Assisted Housing, Department
of Housing and Urban Development, 451 Seventh St., SW., room 4204,
Washington, DC 20410,; (2) one copy to the appropriate HUD Field
Office; and (3) one copy to each member of the assessment team. The
above-stated deadline is firm as to date and hour. Applications may be
hand-delivered or mailed, but applications sent by facsimile will not
be accepted.
B. Scheduling of Assessments
Any PHA that considers itself eligible and wishes to apply for
funding under this NOFA, but that is not yet scheduled for a vacancy
assessment under Sec. 968.410, must notify the Department by June 28,
1994, so that an assessment can be performed.
C. Availability of Funding
CIAP agencies that apply early may receive funding prior to the
application deadline. Funding will be provided as soon as the
application is approved.
III. Checklist of Application Submission Requirements
The following documents comprise the application:
A. Vacancy Reduction Plan
As defined in Section I.D of this NOFA.
B. Request for Funding
Under this NOFA, including:
(1) Form HUD-52825, CIAP Budget/Progress Report, Part I--Summary,
including work to be performed with funds other than VRP funds for
units eligible under paragraph (1)(a)(ii) of the definition of
``eligible unit'' in Section I.E of this NOFA, indicating the source of
funds. Do not include non-VRP funds in the totals.
(2) Form HUD-52825, CIAP Budget/Progress Report, Part II--
Supporting Pages, include work to be performed with funds other than
VRP funds for units eligible under paragraph (1)(a)(ii) of the
definition of ``eligible unit'' in Section I.D of this NOFA, indicating
the source of funds. Do not include non-VRP funds in the totals. Note
that Form HUD-52825, CIAP Budget/Progress Report, Part III--
Implementation Schedule is not required;
(3) For both categories of funding (i.e., units averaging costs of
$8,000 or less by development, and units averaging costs of more than
$8,000 by development), a statement of the number of eligible units in
each development and the average per-unit cost in the development,
including the costs for rehabilitation of the units and for any
development-wide improvements, but excluding costs for lead-based
paint, Section 504 compliance, and management improvements.
(4) Troubled and mod-troubled PHAs must demonstrate eligibility for
the program by submission of documentation required under Section
I.E(2)(b) of this NOFA.
(5) An administrative plan for carrying out the work.
(6) When funding is requested under Section I.J(3)(c), ``Remaining
Funds,'' of this NOFA, statements of the number of vacancies on
September 1, 1993, and the total number of vacancies in the PHA at the
time of the application under this NOFA.
C. Other Submissions
(1) OMB Standard Form SF-424, Application for Federal Assistance,
including SF-424B, Assurances--Non-Construction Programs. On the SF-
424, PHAs need to complete only items 2, 5, 12, 13, 14, 15, 17, and 18.
(2) A resolution of the governing board of the PHA, including the
following:
(a) A certification that the units for which funding is requested
in this application will be readily marketable when they are made ready
for occupancy;
(b) Certification of eligibility of the PHA and the proposed
activities under sections I.F(1) and (2) of this NOFA;
(c) A certification that the PHA has insufficient funds (as defined
in Section I.F(3) of this NOFA) in its operating budget or pursuant to
its formula grant under the Comprehensive Grant Program to fund the
activities for which funding is sought under this NOFA, and that the
activities have not been selected for funding from other sources, such
as Urban Revitalization Demonstration (URD) grants, CIAP, or State or
local funding.
(3) Form HUD-50070, Certification for Drug-Free Workplace.
(4) Form HUD-50071, Certification for Contracts, Grants, Loans and
Cooperative Agreements, required of PHAs established under State law
that are applying for grants exceeding $100,000.
(5) SF-LLL, Disclosure of Lobbying Activities, required of HAs
established under State law only when any funds, other than federally
appropriated funds, will be or have been used to influence Federal
workers or Members of Congress or their staffs regarding specific
grants or contracts.
(6) Form HUD-2880, Applicant/Recipient Disclosure/Update Report.
(7) For any unit reconfiguration for which funds are requested
under Section I.F(1)(e) of this NOFA, data supporting the eligibility
of the conversions.
(8) Certification of the PHA's intent to comply with the Fair
Housing Act, Title VI of the Civil Rights Act of 1964, Executive Order
11063, the Age Discrimination Act of 1975, Section 504 of the
Rehabilitation Act of 1973, the Americans with Disabilities Act of
1990, and any implementing regulations.
(9) Certification that the PHA will make best efforts to give low-
and very low-income persons training and employment opportunities
generated by assistance awarded under this NOFA, and to award contracts
for work to be performed in connection with assistance provided under
this NOFA to business concerns that provide economic opportunities for
low- and very low-income persons, as required by section 3 of the
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u).
IV. Corrections to Deficient Applications
Immediately after the submission of an application, HUD will screen
the application to determine whether all items were submitted. If the
PHA fails to submit any of the items listed in Section III.C of this
NOFA, or the application contains a technical mistake such as an
incorrect signatory, HUD will immediately notify the PHA that it has 14
calendar days from the date of HUD's written notification to submit or
correct the specified items. If any items are missing and the PHA does
not submit them within the 14-day cure period, the application will be
ineligible for further processing.
V. Subsequent Revisions of Vacancy Reduction Plan
The intent of the Department is to assist each high vacancy PHA to
develop a plan that will assure success in reducing the PHA's vacancy
rate and improving management capacity to assure continued progress in
reaching high occupancy levels. If a plan submitted in response to this
NOFA is approved under the NOFA, but needs improvement or
supplementation, HUD will so advise the PHA. The Department will
specify areas in which improvement or supplementation is needed and
require that revisions be made prior to execution of the amendment of
the ACC. HUD staff will be available to assist the PHA in revising its
plan.
VI. Other Matters
A. Environmental Review
A finding of no significant impact with respect to the environment
has been made in accordance with HUD regulations at 24 CFR part 50,
which implement section 102(2)(C) of the National Environmental Policy
Act of 1969. The finding of no significant impact is available for
public inspection between 7:30 a.m. and 5:30 p.m. weekdays in the
Office of the Rules Docket Clerk, Office of the General Counsel, room
10276, Department of Housing and Urban Development, 451 Seventh Street,
SW., Washington, DC 20410-0500.
B. Federalism Executive Order
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that the policies
contained in this notice will not have substantial direct effects on
States or their political subdivisions, or the relationship between the
federal government and the States, or on the distribution of power and
responsibilities among the various levels of government. As a result,
the notice is not subject to review under the Order. The NOFA merely
sets forth funding availability for eligible PHAs that require the
assistance to undertake vacancy reduction activities.
C. Family Executive Order
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this notice has potential
for a significant impact on family formation, maintenance, and general
well-being. The purpose of the notice is to provide funding to improve
housing opportunities by reducing the number of vacant units in the
inventories of PHAs, which could benefit some families significantly.
However, because the impact on families would be indirect and would be
beneficial, no further review is considered necessary.
D. Section 102 of the HUD Reform Act: Documentation and Public Access
Requirements; Applicant/Recipient Disclosures
Disclosures. HUD will make available to the public for five years
all applicant disclosure reports (HUD Form 2880) submitted in
connection with this NOFA. Update reports (also Form 2880) will be made
available along with the applicant disclosure reports, but in no case
for a period of less than three years. All reports--both applicant
disclosures and updates--will be made available in accordance with the
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing
regulations at 24 CFR part 15. (See 24 CFR part 12, subpart C, and the
notice published in the Federal Register on January 16, 1992 (57 FR
1942), for further information on these disclosure requirements.)
Public notice. HUD will include recipients that receive assistance
pursuant to this NOFA in its quarterly Federal Register notice of
recipients of all HUD assistance awarded on a competitive basis. (See
24 CFR 12.16(b), and the notice published in the Federal Register on
January 16, 1992 (57 FR 1942), for further information on these
requirements.)
E. Section 103 of the HUD Reform Act
HUD's regulation implementing section 103 of the Department of
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3537a) was
published on May 13, 1991 (56 FR 22088) and became effective on June
12, 1991. That regulation, codified as 24 CFR part 4, applies to the
funding competition announced today. The requirements of the rule
continue to apply until the announcement of the selection of successful
applicants.
HUD employees involved in the review of applications and in the
making of funding decisions are restrained by part 4 from providing
advance information to any person (other than an authorized employee of
HUD) concerning funding decisions, or from otherwise giving any
applicant an unfair competitive advantage. Persons who apply for
assistance in this competition should confine their inquiries to the
subject areas permitted under 24 CFR part 4.
Applicants who have questions should contact the HUD Office of
Ethics (202) 708-3815 (voice/TDD) (this is not a toll-free number). The
Office of Ethics can provide information of a general nature to HUD
employees, as well. However, a HUD employee who has specific program
questions, such as whether particular subject matter can be discussed
with persons outside the Department, should contact his or her Field
Office Counsel or Headquarters counsel for the program to which the
question pertains.
F. Section 112 of the Reform Act
Section 13 of the Department of Housing and Urban Development Act
(42 U.S.C. 3537b), added by section 112 of the Reform Act, contains two
provisions dealing with efforts to influence HUD's decisions with
respect to financial assistance. The first imposes disclosure
requirements on those who are typically involved in these efforts--
those who pay others to influence the award of assistance or the taking
of a management action by the Department and those who are paid to
provide the influence. The second restricts the payment of fees to
those who are paid to influence the award of HUD assistance, if the
fees are tied to the number of housing units received or are based on
the amount of assistance received, or if they are contingent upon the
receipt of assistance.
Section 13 was implemented by 24 CFR part 86. If readers are
involved in any efforts to influence the Department in these ways, they
are urged to read part 86, particularly the examples contained in
Appendix A of that part.
Any questions about part 86 should be directed to the Office of
Ethics, room 2158, Department of Housing and Urban Development, 451
Seventh Street, SW., Washington, DC 20410-3000. Telephone: (202) 708-
3815 (voice/TDD). (This is not a toll-free number.) Forms necessary for
compliance with the rule may be obtained from the local HUD office.
G. Prohibition Against Lobbying Activities
The use of funds awarded under this NOFA is subject to the
disclosure requirements and prohibitions of section 319 of the
Department of Interior and Related Agencies Appropriations Act for
Fiscal Year 1990 (31 U.S.C. 1352) (the ``Byrd Amendment'') and the
implementing regulations at 24 CFR part 87. These authorities prohibit
recipients of federal contracts, grants, or loans from using
appropriated funds for lobbying the Executive or Legislative branches
of the Federal government in connection with a specific contract,
grant, or loan. The prohibition also covers the awarding of contracts,
grants, cooperative agreements, or loans unless the recipient has made
an acceptable certification regarding lobbying. Under 24 CFR part 87,
applicants, recipients, and subrecipients of assistance exceeding
$100,000 must certify that no federal funds have been or will be spent
on lobbying activities in connection with the assistance.
Authority: 42 U.S.C. 14371 and 3535(d).
Dated: June 6, 1994.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
Appendix--Requirements for ``Vacancy Reduction Plan'' in 24 CFR
968.407
Section 968.407--Vacancy Reduction Plan
(a) Submission of plan. Each PHA to which this subpart applies, in
accordance with Sec. 968.403, shall submit a vacancy reduction plan.
The plan shall contain the elements identified in paragraph (b) of this
section, and shall be organized so that each of the elements can be
identified, reviewed, and funded separately.
(b) Contents of plan. The format of a plan submitted for funding
under this program will be defined in NOFAs to be published
periodically in the Federal Register. Each vacancy reduction plan
submitted by a PHA under paragraph (a) of this section shall include
statements:
(1) Identifying all vacant dwelling units administered by the PHA,
including unmarketable units, and explaining the reasons for the
vacancies. Units may be grouped together when explaining the reasons
for the vacancies;
(2) A description of the turnover rate of units for the past two
years, including the number of units vacated and reoccupied per
development per year and the average number of days required to return
a unit to occupancy. If the turnover rate is increasing, the plan
should identify each cause of the increase.
(3) Describing the actions to be taken by the PHA during the
following five years to eliminate the vacancies. The PHA shall:
(i) State project-specific actions that it is taking or intends to
take that will eliminate vacancies, such as modernization, demolition,
unit redesign or conversion, density reduction, disposition,
modification of occupancy policies, site and security improvements, and
other physical or management improvements; and
(ii) For each project identified, set out a schedule for completing
the actions identified in paragraph (b)(3)(i) of this section and
removing the dwelling units from the PHA's inventory of vacant units.
If the timing of any action is dependent upon a HUD approval or
decisionmaking process, the schedule for the PHA action may be
presented in terms of a specified time period following completion of
the HUD process. For each action, the schedule shall include the number
of vacancies that will be eliminated by the end of each 12-month period
after the PHA begins to receive assistance under this subpart.
(iii) For units vacated during the last two years, when the PHA has
been unable to return these units to occupancy within 30 days from the
date the units become vacant, the plan shall describe actions planned
to achieve at least a 30-day turnover rate.
(4) Identifying any impediments that will prevent elimination of
the vacancies within the five-year period;
(5) Identifying any vacant units funded for modernization, major
reconstruction, demolition, or disposition activities;
(6) Identifying any vacant dwelling units that are eligible for
modernization, major reconstruction, demolition, or disposition, but
have not been funded or approved for these activities and are not
likely to be funded or approved for at least three years. The statement
shall include an estimate of the amount of assistance necessary to
complete the modernization, major reconstruction, demolition, or
disposition of these units;
(7) Identifying any vacant units not identified under paragraphs
(b)(5) and (b)(6) of this section. The statement shall include a
description of any appropriate activities relating to elimination of
the vacancies in these units and an estimate of the amount of
assistance necessary to carry out the activities identified under this
paragraph;
(8) Setting forth an agenda for implementation of management
improvements during the first fiscal year beginning after submission of
the plan. If the timing of any improvement is dependent upon a HUD
approval or decisionmaking process, the schedule for the improvement
may be presented in terms of a specified time period following
completion of the HUD process. The agenda should include any management
improvements recommended by the assessment team pursuant to
Sec. 968.410 and an estimate of the amount of assistance necessary to
implement the management improvements; and
(9) Of any other information that the Secretary shall deem
appropriate, as provided in the applicable NOFA. Such information may
include budget documents, in the case of any PHA that is applying for
funds under a NOFA.
(c) Housing standards. To the extent that a plan involves
modernization, reconstruction, or rehabilitation activities that have
not been funded or approved previously and are not planned to be
undertaken using Comprehensive Grant Program funds, the plan must
reflect cost estimates that, at a minimum, are based on:
(1) For individual work items funded under the program, compliance
with modernization standards, as set forth in HUD Handbook 7485.2, as
revised; and
(2) For each vacant unit on which funds are expended, compliance of
the unit with the Housing Quality Standards, as set forth in 24 CFR
882.109 and as amended by the regulations concerning lead-based paint
in public housing in 24 CFR part 35.
[FR Doc. 94-14282 Filed 6-10-94; 8:45 am]
BILLING CODE 4210-33-P