[Federal Register Volume 59, Number 113 (Tuesday, June 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14344]


[[Page Unknown]]

[Federal Register: June 14, 1994]


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Part III





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner



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Notice of Funding Availability for Preservation Support Grants and 
Notice of Paperwork Submission
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner
[Docket No. N-94-3762; FR-3613-N-01]

 

NOFA for Preservation Support Grants and Notice of Paperwork 
Submission

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice of funding availability and paperwork submission.

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SUMMARY: This NOFA announces the availability of up to $6 million in 
funding for Preservation Support Grants, to promote the ability of 
residents of eligible low-income housing to: (1) Participate 
meaningfully in the preservation process established by the Emergency 
Low Income Housing Preservation Act of 1987 (ELIHPA) and the Low-Income 
Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA); 
and (2) affect decisions about the future of their housing. This NOFA 
also serves to assist the Secretary in discharging the obligation to 
notify qualified purchasers of the availability of properties for sale 
and otherwise facilitate the coordination and oversight of the 
preservation program. A portion of the unobligated funds from the 
Preservation Technical Assistance NOFA published September 3, 1992 (57 
FR 40570), is made available under this NOFA.
    Eligible applicants may apply for a Preservation Support Grant in 
one of two categories. First, Outreach and Training Grants are 
available to resident-controlled or community-based nonprofit 
organizations with experience in resident education and organizing to 
conduct community-, city-, or county-wide outreach to identify, 
organize, and deliver training to residents of eligible low-income 
housing. Second, Preservation Activity Grants are available to State 
and local government agencies and nonprofit intermediaries to perform 
activities that further the preservation program in their 
jurisdictions. These activities may include outreach, training, and 
organizational development of unorganized tenants. In a separate NOFA, 
the Department has solicited applications from intermediaries to 
administer direct technical assistance grant funds to resident and 
community groups (FR-3473, published April 6, 1994, at 59 FR 16366).
    This document includes information about eligible applicants, the 
level of funding available, and HUD's processing of applications, as 
well as the selection criteria for grant applicants.

DATES: The expedited deadline for submission of comments on the 
paperwork burden associated with this NOFA is: June 24, 1994.
    The deadline for submission of applications is August 15, 1994. 
Applications must be physically received in the Preservation Division, 
Department of Housing and Urban Development, room 6284, 451 Seventh 
Street, SW., Washington, DC 20410, by 4:30 p.m., EST, on or before the 
due date.

ADDRESSES: Comments on the information collection requirments should 
refer to the proposal by name and should be sent to: Joseph F. Lackey, 
Jr., OMB Desk Officer, Office of Management and Budget, New Executive 
Office Building, Washington, DC 20503.
    Upon request, Preservation Support Grant application packages may 
be obtained from the Multifamily Housing Clearinghouse, P.O. Box 6424, 
Rockville, MD 20850, telephone number: 1-800-955-2232. Please refer to 
FR-3613 when requesting an application package.

FOR FURTHER INFORMATION CONTACT: Frank Malone, Director, Office of 
Preservation and Property Disposition, Department of Housing and Urban 
Development, room 6284, 451 Seventh Street, SW., Washington, DC 20410; 
telephone (202) 708-3555. To provide service for persons who are 
hearing- or speech-impaired, this number may be reached via TDD by 
dialing the Federal Information Relay Service on 1-800-877-TDDY (1-800-
877-8339) or 202-708-9300. (Except for the TDD number, telephone 
numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The information collection requirements contained in this NOFA have 
been submitted, for expedited processing, to the Office of Management 
and Budget (OMB) for review under the Paperwork Reduction Act of 1980 
(44 U.S.C. 3501-3520). No person may be subjected to a penalty for 
failure to comply with these information collection requirements until 
they have been approved and assigned an OMB control number. The OMB 
control number, when assigned, will be announced by separate notice in 
the Federal Register. Any applicant that completes an application 
before the OMB control number is assigned may have to modify that 
application in accordance with changes in the application package that 
are requested by OMB and agreed to by HUD.
    Public reporting burden for the collection of information 
requirements contained in this rule are estimated to include the time 
for reviewing the instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the collection of information. Information on the estimated public 
reporting burden is provided under the Preamble heading, Other Matters. 
Send comments regarding this burden estimate or any other aspect of 
this collection of information, including suggestions for reducing this 
burden, by June 24, 1994, to the Department of Housing and Urban 
Development, Rules Docket Clerk, 451 Seventh Street, SW., room 10276, 
Washington, DC 20410-0500; and to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, Attention: Desk 
Officer for HUD, Washington, DC 20503.

Introduction

    On July 13, 1993, the Department published a draft Notice of 
Funding Availability (58 FR 37819), specifically inviting public 
comments on the Department's proposed methodology for implementing the 
provisions of section 312 of the Housing and Community Development Act 
of 1992 (1992 HCDA), which added sections 251-257, the Low-Income 
Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA). 
The comment period expired on August 28, 1993. The Department received 
a total of 26 comments. Two comments were from legal/advocacy 
organizations, eight from low income housing organizations which are 
involved in development of and advocacy for affordable housing, nine 
were from tenant organizations, three were from community development 
corporations, two from community service organizations, one from a 
local agency and one from an individual housing consultant.
    This NOFA addresses section 254 of LIHPRHA. Comments received 
relating to the other added sections were addressed in an earlier NOFA 
directed at those sections and published on April 6, 1994 (59 FR 3473). 
The first section of this NOFA is a discussion of the public comments 
on the section 254 aspects of the draft NOFA and of modifications made 
in response to the comments and as a result of additional HUD 
consideration. The actual NOFA follows the discussion of public 
comments and begins with the section designated ``II. Purpose and 
Substantive Description.''

I. Public Comments

A. Priorities

    Five commenters recommended that local resident-controlled groups 
with experience in organizing receive highest funding priority. The 
rationale behind these comments was that assistance to organize by a 
tenant-led coalition at the local level enables tenants to share 
experiences and provide peer support. Also, one commenter stressed that 
organizing and training sponsored by local tenant coalitions protect 
against ``sham'' nonprofit purchasers. The Department agrees with these 
comments and is giving preference to local resident-controlled groups. 
Organizations that receive Outreach and Training grants are required to 
demonstrate that they have at least two years experience in resident 
organizing and education. Under the Preservation Activity Grant 
category, the Department also will give priority consideration to State 
and local government agencies and intermediaries that propose to 
provide outreach and training and organizational development to 
unorganized tenants.
    One commenter suggested that in awarding Outreach and Training 
grants, HUD should give priority to the local nonprofit entity most 
trusted or most likely to be trusted by the tenants. Factors cited by 
the commenter that could be used as a measure of trust included 
languages spoken by staff, ethnicity, positive history in the immediate 
neighborhood, and whether the nonprofit entity has a rural/urban/
suburban focus. The Department believes that establishing a trusting 
relationship between recipients and providers of the activity is an 
important aspect of a program. However, assessing the level of trust is 
judgmental and requires an insight about the relationship between a 
nonprofit organization and tenants that would be difficult for HUD 
staff to readily discern. The Department believes that a trusting 
relationship will evolve when the parties become acquainted, begin to 
work together, and plan successful programs.
    Two commenters suggested that under the Outreach and Training 
grants, organizing should be given priority over education and 
training. However, if the purpose of the application is to provide 
training, one commenter suggested that preference should be given to 
applicants planning training for resident groups and community-based 
nonprofit purchasers (as opposed to owner entities, appraisers, and 
financial institutions), because resident groups and community-based 
nonprofit purchasers generally have fewer resources. Also, it was 
suggested that this preference be implemented through a point system 
published in the NOFA. Under the Outreach and Training grant category, 
HUD will require that successful applicants restrict provision of 
training to resident groups and community-based nonprofit purchasers. 
However, under the Preservation Activity Grants category, grantees may 
use funds to train and educate other groups, such as appraisers, 
financial institutions, and owners.

B. Allocation of Funds

    The Department received eleven comments recommending that a 
majority of the Preservation Support Grant funds be set aside for 
resident outreach and training that would involve leadership 
development, training, and ongoing support instead of for the provision 
of information on LIHPRHA and ELIPHA (without organizational 
development, training, and support). Eight commenters suggested that, 
at a minimum, 60 percent of the funds should be reserved for outreach 
and training. Another commenter advised that the Department allocate 50 
percent for each type of Preservation Support Grant, with a mid-year 
review for reallocation.
    The Department will allocate 50 percent of the Preservation Support 
Grant funds to Outreach and Training grants and 50 percent to 
Preservation Activity grants. This equal division of the allocation 
will maximize opportunities for the Department to produce newly 
organized tenant groups, because HUD will give preference, under the 
Preservation Activity grant program, to State or local government 
agencies or intermediaries that submit applications for outreach and 
training and the organizational development of tenants. By including 
outreach and training and organizational development for tenants as 
preferred activities under Preservation Activity grants, the Department 
will be able to ensure that unorganized tenants will be reached if they 
live in areas where eligible local tenant controlled groups or 
community-based nonprofit organizations do not exist.
    One commenter suggested that Outreach and Training grants be 
allocated in the $50,000 to $150,000 range annually for up to three 
years. The Department agrees that grant amounts should be limited. The 
Department will award Outreach and Training grants commensurate with 
the scope and size of the market served and the level of outreach and 
training described in the application. The maximum amount an applicant 
may receive for an Outreach and Training grant will be $150,000 
annually, up to a maximum, if warranted, of $450,000 over a three-year 
period.
    The Preservation Activity grant will be available for, among other 
activities, outreach and training and organizational development for 
tenants who live in areas where community-based nonprofit organizations 
or local resident-controlled groups do not exist. Because applicants 
applying for Preservation Activity Grants may propose an activity that 
is regional or national in scope and that would require a high level of 
funding to be effective, the Department believes that the maximum 
amount an applicant may receive for a Preservation Activity Grant 
should be $500,000 for proposals that are national in scope, and 
$250,000 for proposals aimed at the regional, State or local level. 
This NOFA addresses funding levels in detail for each category in 
Section II.D.
    Two commenters stated that HUD should have two funding rounds 
annually for Preservation Support Grants, with one-year grant awards 
renewable for up to three years. The Department has determined that the 
size of Preservation Support Grants does not merit the task of scoring, 
ranking, and awarding grants biannually; it is more cost-effective to 
announce the availability of funds on an annual basis. Further, 
Preservation Support Grants are awarded on a competitive basis and 
cannot be renewed without a new round of competition. However, HUD will 
accept Outreach and Training grant applications that propose activities 
designed to be completed over a three-year period. Such proposals, if 
funded, would receive incremental funding as described in Section II.C 
of the NOFA.
    Six commenters claimed that basing fund allocation solely on active 
Notices of Intent (NOIs) and Plans of Action (POAs) is skewed because 
this basis does not directly correlate with preservation sales 
activity. Another commenter claimed that HUD's records are not fully 
accurate because the basis for the allocation is program volume--
specifically, the sum of ``active Notices of Intent plus the number of 
Plans of Action submitted for the State''--so allocations may be 
distorted. HUD will allocate grant funds in accordance with the 
selection process described in Section IV of this NOFA. The number of 
active Notices of Intent and Plans of Action will not be the 
determining factor.
    Another commenter stated that the allocation under this NOFA should 
be made according to eligible projects, not by activity level. However, 
HUD will award grants based on proposed activities, not according to 
eligible projects. The commenter further stated that the allocation 
should include transition rule project owners who have not filed an 
NOI. This comment relates to Title II projects, where owners were not 
required to file NOIs prior to the 1992 HCDA. Such projects will be 
eligible under the provisions of this NOFA.

C. Eligible Activities

    One commenter suggested that organizations applying for 
Preservation Activity Grants should not be limited by the definition of 
eligible intermediaries in the NOFA. The commenter claimed that 
preservation activities, such as LIHPRHA training, technical 
assistance, data gathering, and clearinghouse functions, can be 
performed by an organization that does not have experience in grant 
allocation and administration and has not previously served a wide 
geographic area. Community-based nonprofits with experience in 
education on LIHPRHA and ELIPHA, for example, would be competent to 
perform these activities. The Department will limit eligibility for 
Preservation Activity Grants to eligible intermediaries and will adhere 
to the definition of intermediary used in the July 13, 1993, NOFA, 
because it is consistent with section 255(d) of the 1992 HCDA.
    This commenter also stated that while preference should be given to 
locally based groups, it should be possible for community-based groups 
to apply for resident outreach and training grants for a multicounty 
area, if a local group is not available. The Department agrees and has 
indicated in Section III.C of the NOFA that priority will be given to 
established local resident-controlled groups. Next in order of 
preference will be established community-based nonprofit organizations, 
and, thirdly, city-wide, county-wide or multi-county coalitions of 
resident groups applying for Outreach and Training Grants. Further, 
community action, legal service, and fair housing counseling agencies; 
State and local government agencies; and intermediaries that apply for 
Preservation Activity Grants to initiate outreach and training and the 
organizational development of tenants will receive priority funding 
under that category.
    This commenter also stated that organizations should be able to do 
both resident organizing and preservation activities, and that the 
eligible activities should include legal and financial research on 
properties. The Preservation Activity Grants, which will provide 
funding for legal and financial research studies on eligible 
properties, also will include outreach and training and organizational 
development training for tenants as an eligible and priority activity. 
If all funds are not awarded to eligible applicants in one grant 
category, the Department will utilize unused funds from one grant 
category to fund acceptable applications for the other, as indicated in 
Section III.A of the NOFA.
    Four commenters suggested that the Department clarify that Outreach 
and Training Grants are available to support residents in projects 
where the owner is not selling. Two commenters want Outreach and 
Training Grants available where an owner has made no decision yet, but 
is eligible under ELIPHA or LIHPRHA. The Department agrees, and has 
stated in Section III.D of this NOFA, that eligible projects include 
any Preservation property, regardless of whether an owner has filed a 
Notice of Intent.
    A commenter proposed that HUD fund the production of information 
materials, such as pamphlets, posters, displays, and videos that can be 
used for resident outreach and training. The commenter said that some 
of these materials already exist, having been produced in States with a 
high level of activity. However, HUD could make them widely available 
to assistance providers. This would avoid potentially duplicative 
efforts nationwide and will assure distribution of accurate 
information. The Department accepted this proposal and has included a 
provision under the Preservation Activity Grant program for creating 
informational materials about the Preservation process for nationwide 
distribution as an eligible activity. (See Section III.F of the NOFA 
for further details.)

D. Other

    Nineteen commenters stated that because of the size of the Outreach 
and Training Grant program, and because the activities should be 
nonproject specific, HUD should administer that program. The Department 
agrees and will administer the awarding and monitoring of both 
categories of the Preservation Support Grants program.
    One commenter recommended that the Department eliminate the set-
aside for Preservation Support Grants and allow intermediaries to apply 
for an amount up to the entire State allocation to be used for Direct 
Assistance or Preservation Support Grants, with a maximum of $60,000 
for training, outreach, and preservation activities. Beyond that, the 
commenter suggested that intermediaries be allowed to propose 
activities most appropriate for their jurisdictions. The law provides 
for two separate grant categories under Preservation Support Grants and 
identifies specific purposes for each one. The intent of the statute is 
to allow interested resident groups an opportunity to participate in 
the preservation process. While the point raised here is valid, the 
Department must adhere to the specifics of the law. Also, the 
opportunity for a resourceful resident-controlled group, which may have 
access to other supplemental funds to combine with a HUD award to 
organize and educate tenants, should not be thwarted by the elimination 
of the set-aside for Preservation Support Grants.
    One commenter said that HUD should change the Outreach and Training 
applicant definition to include a network of advocacy people or other 
qualified organizations, not just resident-controlled or resident-based 
nonprofits. They stressed that the requirement that the applicant be a 
resident-controlled or community-based group was too restrictive and 
would prohibit certain tenant groups from participating in the 
preservation process. They further questioned the need for the 
applicant's board to be resident-controlled and recommended that the 
requirement be deleted. The Department appreciates the concerns 
expressed; however, the requirement is statutory and cannot be deleted.
    One commenter proposed that the NOFA add criteria to ensure that 
each community-based organization applicant has an established 
mechanism to guarantee responsiveness to tenants. The Department 
rejects this suggestion because it believes it would be a burdensome 
requirement and difficult to implement and measure. The same commenter 
suggested that tenants and other organizations working on these issues 
in the community also should have a chance for input on the application 
and award. The Department disagrees with this comment. It is unclear 
how and when the commenter intended that tenants and other 
organizations would comply with this requirement. Also, it is illegal 
for HUD to disclose advance information about the applicants in a 
competitive grant process.
    Finally, this commenter suggested that HUD, as grant administrator, 
should provide notice of the application to all nonprofit and tenant 
organizations working on preservation in the relevant jurisdiction and 
to national and regional groups, and that there should be a limited 
time period for other qualified groups to submit a competing 
application. The Department believes that this recommendation will 
delay decisionmaking and create excessive administrative burdens. 
However, under section 102 of the HUD Reform Act, HUD will publish the 
names of the recipients of assistance under this NOFA in the Federal 
Register.
    One commenter stated that this NOFA should have similar 
accountability language in Outreach and Training Grant applications as 
in the Direct Assistance Grant applications. The Department has 
modified the language defining eligible applicants for Outreach and 
Training Grants and Preservation Activity grants. The eligibility 
requirements now reflect accountability similar to that expected of 
Direct Assistance Grant applicants.
    Three commenters stated that because the best Outreach and Training 
providers will not always be local entities and the statute requires 
local entities, the NOFA should be clear that Preservation Activity 
Grants should be available for Outreach and Training by regional/
statewide providers. The commenter added that Statewide organizations 
should be eligible to receive Outreach and Training grants where there 
is a lack of local activity.
    The Department is limiting applicants applying for Outreach and 
Training grants to local resident-controlled, community-based, city-
wide, county-wide, or multi-county providers, which is consistent with 
the statute. However, community action, legal service, and fair housing 
counseling agencies; State or local government agencies; and local, 
regional, State, and national intermediaries can apply for a 
Preservation Activity Grant to conduct outreach and training and 
organizational development training for tenants where no local 
resident-controlled group or community-based organization exists. With 
respect to awards made under this category, the Department will give 
preference to eligible regional, State, and local intermediaries over 
national nonprofit organizations.
    Three commenters stated that HUD should more clearly define what 
are eligible activities for State and local governments and nonprofit 
intermediaries using Preservation Support Grants. In addition, 
commenters suggested that the term ``deemed appropriate'' should be 
clarified. Another commenter stated that the NOFA should contain a 
broader list of specific activities or examples of ``other activities'' 
that further the intent of the preservation programs. The Department 
agrees with this comment and, in Section III.F of the NOFA, has 
clarified and broadened the list of eligible activities for 
Preservation Activity grants.
    One commenter offered that HUD should clarify that resident-
controlled and community-based nonprofits are treated equally. Three 
commenters stated that an overwhelming majority of funding for 
Preservation Support Grants should be made available to resident-
controlled organizations. The Department is giving priority to local 
resident-controlled groups that apply for Outreach and Training grants, 
because the statute clearly indicates tenants/residents as the intended 
beneficiaries of this assistance. In cases where no experienced local 
resident-controlled group or community-based nonprofit organization 
exists, or where one exists, but does not apply or has applied, but its 
application was disapproved, then community action, legal service, and 
fair housing counseling agencies; State and local government agencies; 
or national nonprofit intermediaries may apply for a Preservation 
Activity Grant and receive priority consideration to conduct outreach 
and training and organizational development of the tenants.
    Five commenters stated that HUD should give preferences to Outreach 
and Training applicants in the following order: applicants in which the 
decisionmaking body is made up entirely of HUD-assisted residents, 
those with a majority of HUD-assisted residents, those with a majority 
of low-income community members, community-based applicants, and 
regionally based applicants. Organizations with no direct experience 
should be acceptable where there is no other applicant. One commenter 
stated that HUD should spell out a clear priority to maximize funds to 
resident-controlled coalitions. Another commenter said that priority 
should be for groups with at least three years of organizing experience 
demonstrating board and staff accountability to resident groups. The 
Department will give preference for Outreach and Training grants to 
local resident-controlled groups with at least two years of organizing 
experience. The priorities will be reflected in the rating process 
described in Section IV.C of the NOFA.
    One commenter said that Outreach and Training grants should be 
reviewed and selected separately from Preservation Activity grants, 
with separate allocations. The Department agrees and has developed a 
separate selection process for each of the Preservation Support Grant 
categories. This commenter also recommended that intermediaries 
administering Direct Assistance Grants should also be able to apply to 
do Other Purpose activities; this is especially important in geographic 
areas where there are not many experienced entities.
    Intermediaries that are eligible to apply to administer Direct 
Assistance Grants are also eligible to apply for Preservation Activity 
grants. However, intermediaries selected to administer Direct 
Assistance Grants, by statute, ``may not provide other services to 
grant recipients that are the subject of the grant application and may 
not receive payment, directly or indirectly, from the proceeds of 
grants they have approved.'' Therefore, administering intermediaries 
may not also apply to perform outreach and organizational development 
activities for resident groups that may receive technical assistance 
funds through the Resident Capacity or Predevelopment Grants that the 
intermediary is administering.
    Another commenter contended that potential purchasers should be 
able to receive these grants when no other qualified applicant has 
expressed an interest in the activity. In other words, potential 
purchasers would be considered grantees of last resort. The Department 
believes that the statute clearly identifies eligible applicants for 
Preservation Support grants; the program is not opened to potential 
purchasers.
    Two commenters stated that Outreach and Training recipients should 
not be able to seek an ownership interest in the project. They claim 
that such a policy would avoid conflicts of interest with potential 
landlords, while enabling residents to organize independently. The 
Department agrees with this comment and believes that such a policy 
would restrict grantees from also benefitting as potential purchasers 
who could receive a direct assistance grant, and certain incentives 
under ELIPHA or LIHPRHA, thereby becoming a double recipient of HUD's 
Preservation program.
    One commenter stated that HUD should allocate unused funds from the 
1992 NOFA according to the 90/10 percent formula: i.e., 90 percent to 
Direct Assistance Grants and 10 percent to Preservation Support grants. 
Another commenter suggested that HUD clarify the exact amount of funds 
available from the 1992 NOFA and how they will be divided. The 
Department has divided the allocation of unused funds from the 1992 
NOFA according to the 90/10 percent formula: 90 percent to Technical 
Assistance Grants and 10 percent to Preservation Support Grants.
    Three commenters said that more of the unused funds from the 1992 
NOFA should be available for Outreach and Training Grants. Another 
suggested that all unobligated 1992 NOFA funds be allocated to Outreach 
and Training grants. The Department will allocate the portion of the 
unused 1992 NOFA funds designated for Preservation Support Grants using 
a 50/50 percent formula: 50 percent for Outreach and Training grants 
and 50 percent for Preservation Activity grants. Again, the reason for 
the equal allocation is to allow the Department to maximize the level 
of assistance to, and expand the number of, newly organized tenant 
groups, through the provision of outreach and training and 
organizational development under Preservation Activity grants. One 
commenter also suggested that HUD issue a separate NOFA for Outreach 
and Training Grants. The Department is publishing one NOFA for both 
categories of Preservation Support Grants because it is more cost-
effective and efficient.
    One commenter contended that more money should be made available 
for Preservation Support Grants because a great majority of at-risk 
projects in the commenter's State are not organized. Some residents are 
even unaware that they live in HUD-assisted buildings; few have heard 
of LIHPRHA or ELIPHA and even fewer are aware of HUD's Technical 
Assistance Grants.
    The statute provides that of any amount made available for these 
purposes in any appropriations act, 90 percent shall be set aside for 
use in accordance with Direct Assistance Grants and 10 percent shall be 
set aside for use in accordance with Preservation Support Grants. 
However, the Department will give preference to a Preservation Activity 
Grant applicant that shows it will take specific steps to inform and 
organize potential eligible low-income tenants who are unlikely to be 
unaware of the Preservation program (see Section IV.C(2) of this NOFA).
    One commenter objected to large national contracts for Outreach and 
Training grants. The commenter suggested that $5 million currently set 
aside for additional national training should be put into Outreach and 
Training grants and administered in a separate NOFA, stating that a 
previous contract of $1.5 million to provide training around the 
country was ineffective and that small, local contracts are much better 
than a large national contract. The commenter further contended that 
most resident learning is hands-on, not in hotel workshops. The 
Department will administer the Preservation Support Grant program and 
will award Outreach and Training grants only to local resident-
controlled or community-based nonprofit organizations that demonstrate 
their experience and ability to organize and educate the residents, or 
to city, county, or multi-county providers. Where no local resident-
controlled or community-based nonprofit organizations exists, or where 
one exists, but does not apply or has applied, but its application was 
disapproved, HUD will accept applications to conduct outreach and 
training from community action, legal service, and fair housing 
counseling agencies; State and local government agencies; nonprofit 
intermediaries; or other groups that can demonstrate that they have 
three or more years of experience dealing with tenant issues and a 
capacity to undertake organizing unorganized tenants.

II. Purpose and Substantive Description

A. Authority and Background

    The funding made available under this NOFA is authorized by section 
312 of the Housing and Community Development Act of 1992 (Pub. L. 102-
550, approved October 28, 1992) (1992 HCDA), in order to provide 
outreach and training to eligible resident groups and to assist the 
Department in carrying out its responsibilities under the Emergency 
Low-Income Housing Preservation Act of 1987 (Pub. L. 100-242, section 
201 of the Housing and Community Development Act of 1987, approved Feb. 
5, 1988) (ELIHPA) or the Low-Income Housing Preservation and Resident 
Homeownership Act of 1990 (Pub. L. 101-625, section 601 of the National 
Affordable Housing Act (NAHA), approved November 28, 1990) (LIHPRHA). 
This NOFA combines funding authorized for FY 1993 and FY 1994 in 
section 312 of the 1992 HCDA. Funds announced by this NOFA will include 
amounts authorized in 1992 that remain unobligated from the 
Preservation Technical Assistance Grant Program, resulting in up to a 
total of $6 million available under this NOFA.
    The origins of LIHPRHA are in ELIHPA. The purpose of ELIHPA was to 
preserve low-income affordability restrictions on certain HUD-insured 
or assisted multifamily projects. ELIHPA authorized the use of 
incentives to encourage owners to retain low-income affordability 
restrictions or to transfer the property to purchasers who would agree 
to retain those restrictions. The fundamental principles underlying 
ELIHPA were that the low-income housing should be preserved for the 
intended beneficiaries and that owners should be guaranteed a fair and 
reasonable return on their investments.
    ELIHPA was intended to be a temporary measure that would allow 
Congress time to fashion a permanent program for the preservation of 
existing low-income housing projects. This permanent program is 
LIHPRHA, which replaced ELIHPA except to the extent that section 604 of 
NAHA provides a transition option for certain owners. The Department's 
regulations implementing these statutory provisions were published as 
an interim rule at 57 FR 11992 (April 8, 1992), and were revised in 
interim rules at 57 FR 57312 (December 3, 1992), 58 FR 4870 (January 
15, 1993), and 58 FR 3384 (July 13, 1993, including requirements in 
this NOFA that were imposed by Title III of the 1992 HCDA). All 
references in this NOFA to sections 248.1 through 248.183 are to those 
sections as set out in these interim rules.

B. Allocation Amounts

    The purpose of this NOFA is to make $6 million in grant funds 
available to eligible applicants to perform resident outreach and 
training, organizational development, education activities, and 
preservation assistance activities. These funds will be allocated 
equally between Outreach and Training Grants and Preservation Activity 
Grants. One million dollars ($1 million) of these grant funds are from 
unobligated funds from fiscal year 1992 Preservation Technical 
Assistance Grant funds. Both grant categories are described below.

C. Grant Categories

    There are two types of Preservation Support Grants: (1) Outreach 
and Training Grants; and (2) Preservation Activity Grants.
    Outreach and Training Grants are available for established 
community, city-wide, county-wide, or multi-county coalitions of 
resident-controlled groups or community-based nonprofit organizations 
with experience in resident education and organizing, to identify and 
organize residents of eligible low-income housing.
    Preservation Activity Grants are available to community action, 
legal service, and fair housing counseling agencies; State and local 
government agencies; and State, regional, or national nonprofit 
intermediaries, for the purpose of conducting outreach and training and 
organizational development for unorganized tenants or carrying out 
other proposed activities, described in Section III.F of this NOFA, 
that further the preservation program in their jurisdictions.

D. Grant Amounts

    (1) Outreach and Training Grants. HUD will accept Outreach and 
Training applications that propose a term of from one to three years. 
The Department will limit the grant amount to $450,000 for successful 
applications that propose three-year activities. The maximum annual 
distribution for such grants will be $150,000, which must be obligated 
or expended by the grantee prior to the distribution of additional 
funds. Day-to-day draw-down limits and procedures will be described in 
the application package.
    Outreach and Training grants will be awarded in amounts reflective 
of the overall program design, capacity, and need, as measured by the 
criteria in Section IV.C of this NOFA.
    (2) Preservation Activity Grants. At the regional, State, and local 
levels, the Department will make a one-time award, not to exceed 
$250,000, for proposals designed to address outreach and training and 
organizational development for tenants or other types of Preservation 
activities. Applicants applying for Preservation Activity grants that 
propose outreach and training and organizational development for 
tenants, or other eligible preservation activities that are national in 
scope and require a high level of funding to be effective, may receive 
a one-time award in an amount not to exceed $500,000. However, the 
Department will give preference to eligible regional, State, and local 
intermediaries over national nonprofit organizations. A national 
nonprofit organization must document its ability to accomplish proposed 
tasks on a national level and describe what resources it has to carry 
out the activity effectively and with success. Grantees in receipt of 
Section 254 funds may not use these funds to replace local or regional, 
public or private funding initiatives that are already in place.
    The level of funding will be commensurate with the described level 
of complexity of activities, geographic scope, and number of potential 
participants. Activities must be completed in a timely manner and may 
not, in any case, exceed a three-year period.
    The Department may terminate the grant if a grantee fails to 
complete the task within a reasonable time period. In determining the 
reasonableness of the time period, HUD will consider the complexity of 
the activity and the resources available to accomplish the task.

III. Eligibility Information

A. General

    Preservation Support Grants are meant to fund activities that will 
further the Preservation process and are carried out by: local 
resident-controlled or community-based nonprofit organizations, in the 
case of Outreach and Training grants; and community action, legal 
service, and fair housing counseling agencies; State and local 
government agencies; and State, regional or national intermediaries, in 
the case of Preservation Activity grants. Resident-controlled groups 
are comprised primarily of residents living in HUD-assisted projects.
    Outreach and Training grant applications will be reviewed 
separately from Preservation Activity grant applications. However, if 
all funds are not awarded to eligible applicants in one grant category, 
the Department will have the option to utilize unused funds from that 
grant category to fund acceptable applications for the other. The 
Department will give priority to resident-controlled and community-
based organizations that apply for Outreach and Training Grants. In 
competitive situations where resident outreach and training activities 
are proposed under both categories of the Preservation Support Grant 
(e.g., a local government or non-community-based nonprofit organization 
proposing a resident outreach and training program within the same 
jurisdiction as the resident-controlled group), applications from a 
Preservation Activity Grant applicant will only be considered in the 
balance of a jurisdiction not served by an Outreach and Training Grant 
recipient.
    Grantees will be selected based on eligibility thresholds; 
applicant type, capacity, and experience; and jurisdictional needs, as 
described below in this NOFA.

B. Eligible Recipients

    Eligible recipients of Outreach and Training and Preservation 
Activity grants will be tenants living in eligible Title II or Title VI 
projects. In addition, funds provided in this NOFA may be available to 
provide assistance to tenants living in property disposition projects 
that are subject to section 203(c)(2)(D) of the Housing and Community 
Development Amendments of 1978 (12 U.S.C. 1701z-11), as amended by 
section 101(b) of the Multifamily Housing Property Disposition Reform 
Act of 1994 (108 Stat. 342; Pub. L. 103-233, approved April 11, 1994).

C. Eligible Applicants--Outreach and Training Grants

    An organization applying to do resident outreach and training must 
demonstrate that it is a nonprofit organization, has at least two years 
of experience in resident organizing and education, and is either 
resident-controlled with a majority of the board consisting of 
residents of HUD-assisted housing or is a community-based organization 
(CBO) that meets the definition of a CBO in 24 CFR 248.101, with a 
majority of its activities taking place at the community level. 
Applications from newly formed resident-controlled groups and CBOs that 
have applied for tax-exempt status under section 501(c) of the Internal 
Revenue Code of 1986 on or before the date of application may be 
considered as long as the organization is approved before the effective 
date of the grant agreement. Also, newly formed and otherwise eligible 
organizations may submit joint applications with eligible organizations 
that are tax-exempt.
    Priority will be given to local resident-controlled groups. Next in 
order of preference will be established community-based organizations 
and, thirdly, city-wide, county-wide, or multi-county coalitions of 
resident groups with a majority (51 percent or more) of Board 
participation by HUD tenants and that can provide documentation that 
they have experience working with ELIPHA and/or LIHPRHA programs. Where 
there is no application from such groups, community action, legal 
service, and fair housing counseling agencies; State and local 
government agencies; and intermediaries may apply for Preservation 
Activity grants to initiate outreach and training and the 
organizational development of tenants.

D. Eligible Activities--Outreach and Training Grants

    Outreach and Training Grants are available for the following 
activities:
     Identifying residents and resident groups living in 
eligible preservation projects. Eligible projects include any property 
that is or could become available for sale and meeting the definition 
of ``eligible low-income housing'' at 24 CFR 248.101 or 248.201, 
regardless of whether an owner has filed a Notice of Intent.
     Providing outreach and training to tenants identified by 
local Field Offices where HUD staff may not be available to perform 
such tasks due to budgetary constraints. These activities could include 
attending Preservation Capital Needs Assessment (PCNA) exit 
conferences, obtaining translation of the owner's Notice of Intent, 
providing other service where needed for PCNA exit conferences, or 
attending other resident meetings.
     Organizing residents of eligible low-income housing to 
participate effectively in the preservation process.
     Performing outreach, training, and counseling, which may 
include sound housing management, maintenance, and financial 
management, to residents and resident groups living in eligible 
preservation projects.
     Delivering project-based, community-, city-, or county-
wide training programs on ELIHPA, LIHPRHA, resident participation, and 
forms of resident homeownership options.

E. Eligible Applicants--Preservation Activity Grants

    (1) Description of applicants. HUD will accept applications from 
community action, legal service, and fair housing counseling agencies; 
regional, State, and local government agencies; nonprofit 
intermediaries; or other groups that can demonstrate that they have 
both three or more years of experience dealing with tenant issues and a 
capacity to undertake organizing unorganized tenants. A national 
nonprofit organization must have at least five years of similar 
experience. Eligible applicants fall into one of the following 
categories:
    (1) State and local housing agencies. This category includes public 
housing agencies, community redevelopment agencies, other agencies that 
administer a community's Comprehensive Housing Affordability Strategy 
(CHAS), and State housing finance authorities.
    (2) Regional, State, and local nonprofit organizations that must 
have been in existence for at least three years prior to the date of 
application and either are classified as exempt organizations under 
section 501(c)(3) of the Internal Revenue Code of 1986 or are otherwise 
a tax-exempt entity.
    (3) National nonprofit intermediaries that have been in existence 
for at least five years prior to the date of application and are 
classified as exempt organizations under section 501(c)(3) of the 
Internal Revenue Code of 1986. An intermediary applying for 
Preservation Activity Grant funds must:
     Have as a central purpose of its organization the 
preservation of low-income housing and the prevention of displacement 
of low- and moderate-income residents;
     Not receive direct Federal appropriations for operating 
support;
     Meet the standards of fiscal responsibility established in 
OMB Circulars A-110 and A-122 or, if a State or local agency, 24 CFR 
part 85 and OMB Circular 87; and
     Have a record of service to low-income individuals or 
community-based nonprofit housing developers in multiple communities.
    (2) Limitations on Intermediaries. Intermediaries that are eligible 
to apply to administer Technical Assistance Grants may be eligible to 
apply for a Preservation Activity Grant pursuant to the following 
prohibition. Intermediaries selected to administer Technical Assistance 
Grants, pursuant to Section 255(a) of the 1992 HCDA, ``may not provide 
other services to grant recipients that are the subject of the grant 
application and may not receive payment, directly or indirectly, from 
the proceeds of grants they have approved.'' Therefore, administering 
intermediaries may not also apply to perform outreach and 
organizational development for tenants, or other types of Preservation 
support activities for resident groups that receive technical 
assistance funds through the Resident Capacity or Predevelopment Grants 
that the intermediary is administering.
    Also, unlike intermediaries that are eligible to administer Direct 
Assistance grants, those intermediaries applying for Preservation 
Activity Grants may not serve as pass-through intermediaries. That is, 
they are limited to using grant funds to carry out eligible grant 
activities and may not administer the allocation of HUD grant or loan 
funds.

F. Eligible Activities--Preservation Activity Grants

    Preservation Activity grants will be available to:
     Provide outreach and training and organizational 
development for ``unorganized'' tenants, as provided by resident-
controlled groups and CBOs under the Outreach and Training category in 
Section III.C of this NOFA, if no experienced local resident-controlled 
group or community-based nonprofit organization exists or one exists, 
but does not apply or has applied, but HUD disapproved its application;
     Provide outreach and training to tenants identified by 
local Field Offices where HUD staff may not be available to perform 
such tasks due to budgetary constraints. These activities could include 
attending Preservation Capital Needs Assessment (PCNA) exit 
conferences, obtaining translation of the owner's Notice of Intent, 
providing other service where needed for PCNA exit conferences, or 
attending other resident meetings.
     Undertake pilot programs that assist HUD field staff to 
expedite the preservation process or otherwise conserve staff 
resources;
     Streamline the preservation process via the activities 
described in this Section;
     Educate parties outside the Department (including, but not 
limited to appraisers, financial institution officials, State and local 
government officials, community groups, and owner entities) about the 
preservation process;
     Establish preservation clearinghouses as a resource to 
resident organizations, community groups, and potential purchasers;
     Create informational materials about the preservation 
process for nationwide distribution;
     Perform legal and financial research studies on eligible 
properties; and
     Provide support activities that would otherwise further 
the Preservation program established under ELIHPA and LIHPRHA.

G. Ineligible Activities--Both Categories

    Activities ineligible for funding under either category (Outreach 
and Training or Preservation Activity) of Preservation Support grants 
include:
     Purchase of land or buildings or any improvements to land 
or buildings;
     Entertainment, including associated costs such as food and 
beverages, but not including refreshments and supplies for 
organizational meetings;
     Payments of fees for lobbying services;
     Activities funded from other sources;
     Activities already being performed outside the scope of 
this NOFA; and
     Activities completed prior to the date funding is approved 
under this NOFA.

IV. Selection Process

A. Screening

    The Multifamily Preservation Division staff in Headquarters will 
screen each application to determine whether it meets the technical 
requirements for application submission contained in this NOFA and the 
application package. If the application meets the technical 
requirements, it will be reviewed and ranked according to the selection 
criteria in Section IV.C of the NOFA. After screening the application, 
the Preservation Division will fax information about the applicant and 
application, such as name, project number, and experience the applicant 
identifies it has with HUD and the Preservation Program, to the Chief, 
Loan Management Division, in the HUD Field Office with jurisdiction 
over the applicant's geographical area. The Loan Management staff will 
review the information and provide comments about the information and 
the extent of its experience, if any, with the organization. Within 
sixty days from the application deadline, the Preservation Division 
will notify an applicant of its selection or rejection. Grantees will 
be required to sign a grant agreement.

B. Threshold Review--Correction of Deficient Applications

    (1) Threshold Review. The Department will perform a threshold 
review of the applications to ensure completeness and will request 
applicants to correct any nonsubstantive deficiencies. Nonsubstantive 
deficiencies are those that are not integral to the application's 
review, such as a certification.
    (2) Revisions. If an application is found to be deficient in a 
nonsubstantive manner, the Department will inform the applicant of such 
deficiency within 15 days after the application deadline and the 
applicant will have seven days to submit revisions. If an application 
is substantively deficient at the time of application deadline, the 
application will be rejected.

C. Selection Criteria

    HUD will review each Preservation Support Grant application and 
assign up to 100 points in each category (Outreach and Training Grants 
and Preservation Activity Grants), in accordance with the criteria 
described in this Section.
    In competitive situations where resident outreach and training 
activities are proposed under both categories of Preservation Support 
Grants (e.g., a local government or non-community-based nonprofit 
organization proposing a resident outreach and training program within 
the same jurisdiction as the resident-controlled group), applications 
from a Preservation Activity Grant applicant will only be considered in 
any part of a jurisdiction not served by an Outreach and Training Grant 
recipient.
    After rating, the Department will rank the applications according 
to score and will fund them in rank order, reserving the option, if 
needed, to establish a minimum score of 60 points for funding. Grants 
will be awarded based upon the highest scores, which represent the best 
overall assessment of the potential of the proposed work activities for 
achieving the principal objective of this competition: to promote the 
ability of residents to participate meaningfully in the preservation 
process and to enable State or local housing agencies or intermediaries 
to conduct outreach and training and organizational development for 
unorganized tenants and undertake other activities that further 
preservation programs.
    Applications that pass the technical threshold review will be rated 
as follows:
    (1) Outreach and Training Grants. Under this category, the 
Department will require successful applicants to restrict provision of 
outreach and training to resident groups and community-based nonprofit 
purchasers. In addition, local resident-controlled groups will receive 
priority rating over community-based organizations and city-wide, 
county-wide, or multi-county coalitions of resident groups.
    (a) Capacity is reflected in the qualifications or capabilities of 
the applicant (maximum points: 50). The capability of the applicant to 
conduct community-, city-, or county-wide outreach and training 
programs to identify and organize residents of eligible low-income 
housing within a reasonable time period, within budget, and in an 
effective manner, as demonstrated through past performance. In 
assigning points for this criterion, HUD will consider:
     Direct Experience. An applicant under this category must 
provide documentation that they have experience working with ELIPHA 
and/or LIHPRHA programs. The applicant or key staff must show that it 
has at least two years of experience in this area of work to receive 
points under this criterion. An applicant also may demonstrate this 
experience by the participation of or affiliation with board members or 
consultants. The Department will rate the application according to the 
degree to which the applicant describes its ability to organize 
residents and conduct educational workshops or describe how it will 
obtain such experience. This criterion will be measured by previous 
experience and success in outreach, recruitment, counseling, 
organizational development, and training (* * * up to 20 points).
     Preservation Experience. The degree of knowledge, 
experience, and expertise the applicant can show that it has, or will 
obtain, with ELIHPA and/or LIHPRHA programs, to ensure compliance with 
relevant program requirements and to enable newly organized tenant 
groups to participate in these Preservation programs. This criterion 
will be measured by previous experience (* * * up to 20 points).
     Management Capacity. The extent to which the applicant can 
ensure through its organization and management plans that the activity 
for which it applied will be well-managed; carried out in a timely 
manner; and protected from waste, fraud, or other abuse of funds, based 
on past performance with similar programs (* * * up to 5 points).
     Fiscal Responsibility. The ability of the applicant or key 
staff to handle, manage, and account adequately for financial resources 
and to use acceptable financial control procedures, demonstrated 
through past performance of the applicant entity or key staff with 
Federal, State, or local funds, or an explanation of how such 
capability will be obtained (* * * up to 5 points).
    (b) Level of Resident Participation in the Organization. Priority 
will be given to established resident-controlled groups and nonprofit 
community-based organizations that have a majority (51 percent or more) 
of Board participation by tenants in HUD-assisted project(s) (maximum 
points: 20). HUD will rate the applications on a scale that gives the 
highest number of points to organizations with the highest number of 
HUD-assisted tenants on the Board.
    (c) Need. The degree of need for the proposed outreach and training 
programs to identify and organize tenants of eligible low-income 
housing, demonstrated by the number of eligible projects in the 
community (maximum points: 15). In measuring this criterion, HUD will 
consider the number of eligible projects in the area and the number of 
tenants that the applicant identifies that would benefit from the 
activity.
    (d) Program Quality and Feasibility. The comprehensiveness of the 
proposed plan and the potential of the applicant for developing a 
successful and effective program (maximum points: 15). HUD will 
consider the extent to which the proposed program represents a sound, 
comprehensive, and responsive plan for developing outreach and training 
efforts, organizing tenants, and providing housing counseling. Program 
quality will be evaluated in terms of whether the proposed program 
activities meet the Outreach and Training program objective.
    (2) Preservation Activity Grants. Under this category, the 
Department will give preference to eligible regional, State, and local 
intermediaries over national nonprofit organizations. Also, the 
Department will give priority to any applicant that shows its intention 
to initiate outreach and training and the organizational development of 
low-income tenants where no resident-controlled or community-based 
organization exists. Organizations such as community action, legal 
service, and fair housing counseling agencies must demonstrate that 
they have three or more years experience dealing with tenants and the 
capacity to undertake tenant organization. Regional, State, and local 
government agencies will be required to document their ability to 
implement the proposed activity on a regional level, and intermediaries 
that propose to undertake outreach and training and organizational 
development for tenants or carry out other proposed support activities 
on a national level must demonstrate their ability to accomplish such 
tasks.
    (a) Capacity is the qualification or capabilities of the applicant 
to develop and implement: Successful and effective outreach and 
training and organizational development for tenants; and other 
Preservation support activities, as described in Section III of this 
NOFA (maximum points: 50).
     Preservation Experience. The degree of knowledge, 
experience, and expertise the applicant can show that it has, or will 
obtain, with ELIHPA and/or LIHPRHA programs, to ensure compliance with 
relevant program requirements and enable newly organized tenant groups 
to participate in these preservation programs. This criterion will be 
measured by previous experience (* * * up to 20 points).
     Direct Experience. The applicant or key staff must show 
that it has at least three years of experience in the area of work for 
which it is applying, or describe how it will obtain such experience. 
This criterion will be measured by previous experience and success in 
the applicable activity (* * * up to 20 points).
     Management Capacity. The extent to which the applicant can 
ensure through its organization and management plans that the activity 
for which it applied will be well-managed; carried out in a timely 
manner; and protected from waste, fraud, or other abuse of funds, based 
on past performance with similar programs (* * * up to 5 points).
     Fiscal Responsibility. The ability of the applicant or key 
staff to handle, manage, and account adequately for financial resources 
and to use acceptable financial control procedures, demonstrated 
through past performance of the applicant entity or key staff with 
Federal, State, or local funds, or an explanation of how such 
capability will be obtained (* * * up to 5 points).
    (b) Jurisdictional Needs. This criteria will be based on the 
Department's determination of how well the applicant addresses specific 
unmet needs in the jurisdiction. This assessment will be based on the 
number of current preservation cases in the Multifamily Preservation 
Processing System (MPPS). The Department will also take into 
consideration the number of applications received from that 
jurisdiction. This assessment may include availability of Department-
sponsored or other training for residents and other groups (maximum 
points: 20 points).
    (c) Program Quality and Feasibility. The comprehensiveness of the 
proposed plan and the potential of the applicant for developing a 
successful and effective program (maximum points: 30). HUD will 
evaluate the extent to which the proposed program: represents a sound, 
comprehensive, and responsive plan for developing any of the activities 
described in Section III.F of this NOFA and meets the Preservation 
Activity Grant Program objective.
     Commitment. The extent of the applicant commitment and 
responsiveness to the needs and problems of the tenants (* * * up to 10 
points).
     Outreach, Recruitment, and Selection Activities. The 
level, nature, and comprehensiveness of proposed outreach, recruitment 
(including specific steps to be taken to attract potential eligible 
participants who are unlikely to be aware of the program), and 
selection strategies, as measured by: (i) the extent to which the 
applicant has developed special outreach efforts to recruit eligible 
low-income tenants; and (ii) the extent to which the proposed 
participant selection system supports these efforts (* * * 20 points).

V. Grant Application Process

A. Application Packages

    Upon request, Preservation Support Grant application packages are 
available from the Multifamily Housing Clearinghouse, P.O. Box 6424, 
Rockville, MD 20850, telephone number: 1-800-955-2232. Please refer to 
FR-3613 when requesting an application package.
    For other questions about the Preservation program, please contact 
the Preservation Division, Room 6284, Department of Housing and Urban 
Development, 451 7th Street, SW., Washington, DC 20410; telephone (202) 
708-2300, or the contact numbers at the beginning of this NOFA.

B. Deadline for Submission

    Applications for Preservation Support Grants must be physically 
received by the Multifamily Preservation Division no later than 4:30 
p.m. (EST), on August 15, 1994. No facsimiles will be accepted. Any 
application received after that time will not be accepted for 
processing and will be returned to the applicant. Any revisions made in 
accordance with Section IV.B(2) of this NOFA may be transmitted by 
facsimile; however, the original revision must be subsequently 
submitted by mail or in person.

C. Submission Requirements

    An applicant must provide a completed application, including the 
following, as applicable:
    (1) OMB Standard Forms 424 and 424B;
    (2) Summary of proposed activities and jurisdiction;
    (3) Information about the applicant, including its history, its 
staff and qualifications, and its experience;
    (4) Summary of plan to carry out proposed activities;
    (5) Evidence of tax-exempt status, if applicable;
    (6) Certification that assistance provided under this NOFA will not 
be used to supplant or duplicate other resources for the proposed 
activities. For purposes of this paragraph, ``other resources'' means 
resources provided from any source other than under this NOFA;
    (7) Other disclosures, certifications, and assurances (including 
Drug-Free Workplace certification), as required under the law and this 
NOFA;
    (8) Certification that the applicant and any of its affiliates do 
not have, and will not seek, an ownership interest in any developments 
that are to be assisted with these funds; and
    (9) Other information and materials as may be described in the 
application kit.

VI. Other Matters

Public Reporting Burden

    The information collection requirements contained in this notice 
have been submitted to the Office of Management and Budget under the 
Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520). The Department 
has determined that the following provisions contain information 
collection requirements. 

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                           x                             x                                                      
 Number of respondents         Frequency of response          Hours per response      =        Burden hours     
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120....................                         1                             6                         720     
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Environmental Impact

    In accordance with 40 CFR 1508.4 of the regulations of the Council 
on Environmental Quality and 24 CFR 50.20(b) of the HUD regulations, 
the policies and procedures contained in this notice relate only to 
technical assistance and, therefore, are categorically excluded from 
the requirements of the National Environmental Policy Act.

Federalism Impact

    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, 
this notice is not subject to review under the Executive Order 12612.

Family Executive Order

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this notice does not have 
potential for significant impact on family formation, maintenance, and 
general well-being, and, thus, is not subject to review under the 
Order. No significant change in existing HUD policies or programs will 
result from promulgation of this notice, as those policies and programs 
related to family concerns.

Section 102 of the HUD Reform Act: Documentation and Public Access 
Requirements; Applicant/Recipient Disclosures

    Documentation and public access requirements. HUD will ensure that 
documentation and other information regarding each application 
submitted pursuant to this NOFA are sufficient to indicate the basis 
upon which assistance was provided or denied. This material, including 
any letters of support, will be made available for public inspection 
for a five-year period beginning not less than 30 days after the award 
of the assistance. Material will be made available in accordance with 
the Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15. In addition, HUD will include the 
recipients of assistance pursuant to this NOFA in its quarterly Federal 
Register notice of all recipients of HUD assistance awarded on a 
competitive basis. (See 24 CFR 12.14(a) and 12.16(b), and the notice 
published in the Federal Register on January 16, 1992 (57 FR 1942), for 
further information on these documentation and public access 
requirements.)
    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 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, for 
further information on these disclosure requirements.)

Section 103  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), 
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 selection of successful applicants.
    HUD employees involved in the review of applications and in the 
making of funding decisions are limited 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 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 Regional 
or Field Office Counsel, or Headquarters counsel for the program to 
which the question pertains.

Section 112 of the Reform Act

    Section 112 of the HUD Reform Act added a new section 13 to the 
Department of Housing and Urban Development Act (42 U.S.C. 3537b). 
Section 13 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 the rule.
    Any questions about the rule should be directed to the: Office of 
Ethics, room 2158, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410-3000. Telephone: (202) 708-
3815 (voice/TDD). (This is not a toll-free number.) Forms necessary for 
compliance with the rule may be obtained from the local HUD office.

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. 4101 et seq.; 42 U.S.C. 3535(d).

    Dated: May 24, 1994.
Nicolas P. Retsinas,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 94-14344 Filed 6-13-94; 8:45 am]
BILLING CODE 4210-27-P