[Federal Register Volume 59, Number 134 (Thursday, July 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17029]


[[Page Unknown]]

[Federal Register: July 14, 1994]


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Part IV





Department of Housing and Urban Development





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Office of the Assistant Secretary for Public and Indian Housing



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Funding Availability (NOFA) for the Section 8 Set-Aside for Homeless 
Veterans With Severe Psychiatric or Substance Abuse Disorders; Notice
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing
[Docket No. N-94-3770; FR-3714-N-01]

 

Notice of Funding Availability (NOFA) for Fiscal Year 1994, for 
the Section 8 Set-Aside for Homeless Veterans With Severe Psychiatric 
or Substance Abuse Disorders

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

ACTION: Notice of funding availability (NOFA) for Fiscal Year (FY) 
1994.

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SUMMARY: This notice announces the availability of $18.4 million in FY 
1994 budget authority (approximately 700 units) for a national 
competition established by the Department of Housing and Urban 
Development (HUD) and the Department of Veterans Affairs (VA) to award 
funding under the section 8 rental voucher program for homeless 
veterans with severe psychiatric or substance abuse disorders. This 
notice invites public housing agencies and Indian housing authorities, 
hereinafter collectively referred to as housing agencies (HAs), in 
conjunction with eligible VA Medical Centers (see Attachment 1) to 
submit applications.
    This NOFA contains information for the applicants regarding the 
allocation of rental voucher budget authority, the application process, 
including the application requirements and the deadline for filing 
applications, the selection criteria and the application rating, 
ranking, and selection process.

DATES: The due date for submission of applications in response to this 
NOFA is August 29, 1994. Application forms may be obtained from the 
local HUD State and Area Offices/Native American Programs Office. 
Applications must be received in the local HUD State and Area Offices/
Native American Programs Office on the due date by 3 p.m. local time. 
The local HUD State and Area Offices/Native American Programs Offices 
are the official place of receipt for all applications. At the time, or 
immediately following the submission of the application to the HUD 
State or Area Office/Native American Programs Office, the HA also must 
submit a copy of the application for funding under this NOFA to the 
following address: U.S. Department of Housing and Urban Development, 
Mr. Gerald J. Benoit, Director, Operations Branch, Rental Assistance 
Division, Room 4220, 451 Seventh Street, SW., Washington, DC 20410.
    The above-stated application deadline for submission of completed 
applications to the HUD State or Area Office/Native American Programs 
Office is firm as to date and hour. In the interest of fairness to all 
competing HAs, the Department will treat as ineligible for 
consideration any application that is not received before the 
application deadline. Applicants should take this practice into account 
and make early submission of their materials to avoid any risk of loss 
of eligibility brought about by unanticipated delays or other delivery-
related problems. HUD will not accept applications submitted via 
facsimile (FAX) transmission.

FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Director, Operations 
Branch, Rental Assistance Division, Office of Assisted Housing, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410-8000, telephone number (202) 708-0477. Hearing or 
speech-impaired individuals may call HUD's TDD number (202) 708-4594. 
(These telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The information collection requirements contained in this notice 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1980. OMB has approved the section 8 
information collection requirements under the assigned control number 
2577-0169.

I. Purpose and Substantive Description

(A) Background

    The HUD-Veterans Affairs Supportive Housing (HUD-VASH) program for 
homeless veterans with severe psychiatric or substance abuse disorders 
is a national initiative of HUD and VA. Under this initiative, VA 
ongoing case management, health and other supportive services will be 
made available for the term of the Section 8 funding at selected sites 
to the participants in the HUD-VASH program. The VA services and HUD 
rental assistance will support community-based initiatives to provide 
rental assistance, and comprehensive health and other supportive 
services to homeless veterans suffering from complex, often chronic, 
health, mental health and substance abuse problems. The supportive 
services will be delivered in conjunction with permanent, affordable 
housing.
    The goal of the HUD-VASH initiative is to show that appropriate 
health and other supportive services combined with decent, safe, 
sanitary, and affordable housing, can help homeless veterans with 
severe psychiatric or substance abuse disorders lead healthy, 
productive lives in the community, and exit from homelessness. This 
initiative also promotes the expansion of permanent housing options for 
these individuals.
    The HUD-VASH initiative is an expansion of previous demonstration 
programs on behalf of homeless veterans or mentally ill persons, 
including VA's Health Care for Homeless Veterans (HCHV) and Domiciliary 
Care for the Homeless Veterans (DCHV) programs and the HUD/Robert Wood 
Johnson Program for the Chronically Mentally Ill.
    The HUD-VASH initiative combines Section 8 rental voucher 
assistance provided by HUD to selected HAs with case management and 
clinical services provided by VA at its medical centers. Under this 
initiative, VA will identify homeless veterans with severe psychiatric 
or substance abuse disorders through outreach efforts. The selected 
veterans will receive treatment and be medically stabilized, prior to 
issuance of the rental assistance. VA will work with HA staff to help 
veterans locate suitable private market rental units where the veterans 
can be assisted under the rental assistance program. VA will continue 
to provide case management services, outpatient health services, 
hospitalization and other assistance on a regular basis, as needed. 
Veterans involved in this program will continue in the prescribed 
treatment programs after they have leased units under the rental 
assistance program.
    This announcement invites HAs who currently administer a housing 
program in areas where eligible VA sites are located to submit 
applications for rental voucher funding under this initiative. The 
rating of Selection Criteria 2, 3, 4, and 6 will be made by VA and 
based on information available from VA's Northeast Program Evaluation 
Center (NEPEC) and includes data regularly submitted by VA Medical 
Centers in the annual Progress Reports for the HCHV and the DCHV 
programs.

(B) Allocation Amounts

    Of the amounts made available by the VA, HUD-Independent Agencies 
Appropriations Act for FY 1994, up to $18.4 million of budget authority 
for the rental voucher program is set-aside for the HUD-VASH program. 
This amount will support approximately 700 rental vouchers. Each HA may 
apply for funding for at least 25 rental vouchers but not more than 50 
rental vouchers per VA Medical Center. An applicant may apply for as 
many as 50 rental vouchers if VA Medical Centers commit in a letter to 
the HA that the VA Medical Center will provide two professional, full-
time equivalent employees for case management services. An applicant 
may apply for 25 rental vouchers if VA Medical Centers commit in a 
letter to the HA that the VA Medical Center will provide one 
professional, full-time equivalent employee for case management 
services.

(C) Eligibility

    The eligible VA Medical Centers are listed in Attachment 1 to this 
NOFA. The eligible HAs are those which are currently administering a 
Section 8 rental assistance program within the catchment area for the 
eligible VA Medical Centers. Only one HA per VA Medical Center may 
apply for funding, but an HA may apply for rental vouchers for more 
than one eligible VA Medical Center if there are multiple VA Medical 
Centers within the HA's jurisdiction. Each HA may apply for a maximum 
of 50 rental vouchers per VA Medical Center as discussed in Section 
II(B) of this NOFA.

(D) Family Self-Sufficiency Program

    Unless specifically exempted by HUD, any rental voucher or rental 
certificate funding reserved in FY 94 (except funding for renewals or 
amendments) will be used to establish the minimum size of a PHA's FSS 
program.

(E) Guidelines

    The rental assistance provided under the HUD-VASH initiative will 
enable very low-income, homeless veterans with severe psychiatric or 
substance abuse disorders to live in decent, safe and sanitary housing. 
The amount of the rental assistance is generally the difference between 
the applicable payment standard of the HA for the appropriate size unit 
and 30 percent of the family's adjusted income. The rental assistance 
allows an individual to be assisted in a standard rental unit of his or 
her choice. If the individual subsequently moves to a different unit, 
the individual can continue to receive the rental assistance. Funding 
for five years of rental assistance will be provided by HUD to the HA 
in support of the HUD-VASH program. HAs and local VA Medical Centers 
will need to work together throughout the course of this initiative to 
achieve the objectives of the program.
(1) VA Medical Center Responsibilities
    VA Medical Center responsibilities include:
    (a) Screening of the homeless veterans on the HA's Section 8 
waiting list to determine whether these veterans meet the HUD-VASH set-
aside participation criteria established by the VA national office, and 
if there are an insufficient number of applicants on the HA waiting 
list, referring homeless veterans to the HA;
    (b) Providing treatment and supportive services to potential HUD-
VASH participants prior to the HA issuance of rental assistance;
    (c) Providing housing search assistance to HUD-VASH participants;
    (d) Identifying the social service and medical needs of HUD-VASH 
participants and providing regular ongoing case management, outpatient 
health services, hospitalization and other supportive services as 
needed throughout the five year term of the Section 8 funding; and
    (e) Maintaining records and providing information for evaluation 
purposes, as required by HUD or VA.
(2) Veteran Eligibility
    In order to be certified to be eligible for rental assistance under 
this initiative, a veteran must:
    (a) Have been contacted by the VA homeless program while living in 
a shelter or on the street;
    (b) Have a severe psychiatric or substance abuse disorder as 
determined by the VA Medical Center;
    (c) Have received treatment and have been medically stabilized; and
    (d) Agree to participate in the clinical program offered by the VA 
Medical Center's specialized homeless program.
    Preferences will be given to veterans who have been homeless for 30 
days or more.
(3) HA Responsibilities
    An HA's responsibilities include: (a) Reviewing its Section 8 
waiting list and identifying homeless veterans to be referred to the VA 
Medical Centers for a determination of whether the veterans meet the 
HUD-VASH participation criteria;
    (b) Determining the Section 8 eligibility of homeless veterans 
referred by the VA Medical Center;
    (c) Amending its administrative plan and equal opportunity housing 
plan to provide for a preference for homeless veterans certified by the 
VA Medical Center for participation in the HUD- VASH program in a 
number equal to the number of rental vouchers provided under this NOFA;
    (d) Maintaining records and providing information for evaluation 
purposes, as required by HUD or VA; and
    (e) Administering the Section 8 rental assistance programs in 
accordance with HUD regulations and requirements.
(4) Section 8 Rental Voucher Assistance
    The HUD-VASH initiative provides assistance under the section 8 
rental voucher program. HAs must administer this demonstration program 
in accordance with HUD's regulations governing the section 8 rental 
voucher program, codified at 24 CFR part 887. The HA may issue a rental 
certificate instead of a rental voucher to an individual selected to 
participate in the HUD-VASH initiative if the individual requests a 
rental certificate and the HA has one available. If section 8 
assistance for a participant under this demonstration terminates during 
the five-year term of the ACC for the section 8 rental vouchers 
provided under this demonstration, the rental assistance must be 
reissued to another eligible veteran.

II. Application Process

(A) Selection Criteria/Ranking Factors

    To provide each applicant HA with a fair opportunity to receive an 
award of rental vouchers for the HUD-VASH program during FY 1994, HUD 
will use the eight selection criteria listed below to rate all 
applications found acceptable for further processing.
    (1) Selection Criterion 1: HA Administrative Capability (40 
points)--
    (a) Description: Overall HA administrative capability in the Rental 
Voucher, Rental Certificate, and Moderate Rehabilitation Programs is 
either excellent or good. Administrative Capability is evidenced by 
factors such as leasing rates and correct administration of housing 
quality standards (HQS), compliance with the portability requirements 
for rental vouchers and rental certificates, compliance with Fair 
Housing and Equal Opportunity program requirements, assistance payment 
computation, timely submission of budgets and financial statements, and 
rent reasonableness requirements. For purposes of this NOFA, an HA 
administering a Rental Voucher, Rental Certificate, or Moderate 
Rehabilitation Program will not be rated on the administration of its 
Public or Indian Housing Program. If an HA is not administering a 
Rental Voucher, Rental Certificate, or Moderate Rehabilitation Program, 
HUD will rate HA administration of the Public or Indian Housing 
Program. If an HA is not administering a Rental Voucher, Rental 
Certificate, Moderate Rehabilitation, Public Housing or Indian Housing 
Program, HUD will assess the administrative capability of the HA based 
on such factors as experience of staff, support of the HA by the local 
government, and the HA's administrative experience with non-HUD housing 
programs.
    (b) Rating and Assessment: (i) HUD review of HA Operations--
     8 Points--Assign 8 points if HA has no review findings 
outstanding, or all review findings have been corrected, for HUD HA 
management reviews, Fair Housing & Equal Opportunity reviews, or 
Inspector General audits as of the deadline date for submission of 
applications under this NOFA.
     5 Points--Assign 5 points if HA has less than five review 
findings outstanding and all findings are being addressed.
     2 Points--Assign 2 points if HA has five or more review 
findings outstanding and all findings are being addressed.
     0 Points--Assign 0 points if HA has any review findings 
outstanding and the findings are not being addressed.
    (ii) Compliance with Section 8 Portability rules:
     8 Points--Assign 8 points if HA is in compliance with all 
provisions of the portability rules.
     5 Points--Assign 5 points if HA is in general compliance 
with portability rules, but has some minor compliance issues.
     2 Points--Assign 2 points if HA has some major compliance 
issues under portability which are being addressed.
     0 Points--Assign 0 points if HA is not in compliance with 
portability rules and issues are not being addressed.
    (iii) Housing Quality Standards (HQS) Inspections:
     8 Points--Assign 8 points if HA had more than 95% of its 
units pass HQS inspections by HUD at the last review or HUD is aware of 
actions taken by the HA to improve the number of units that pass HQS 
inspections to 95% or more.
     6 Points--Assign 6 points if HA had more than 90% of its 
units pass HQS inspections by HUD at the last review, or HUD is aware 
of actions taken by the HA to improve the number of units that pass HQS 
inspections to 90% or more.
     4 Points--Assign 4 points if HA had more than 85% of its 
units pass HQS inspections by HUD at the last review, or HUD is aware 
of actions taken by the HA to improve the number of units that pass HQS 
inspections to 85% or more.
     2 Points--Assign 2 points if HA had more than 80% of its 
units pass HQS inspections by HUD at the last review, or HUD is aware 
of actions taken by the HA to improve the number of units that pass HQS 
inspections to 80% or more.
     0 Points--Assign 0 points if HA had 80% or less of its 
units pass HQS inspections by HUD at the last review and HUD is not 
aware of actions taken by the HA to improve the number of units that 
pass HQS inspections to 80% or more.
    (iv) Percentage of Units Leased as of September 30, 1993. HUD staff 
should use the percentage of units under ACC for a period of one year 
leased for the tenant-based rental assistance program administered by 
an HA. HUD may use a report on leasing for another period if the 
September 30, 1993, report is not reflective of HA performance.
     8 Points--Assign 8 points if HA had 98% or more of its 
rental certificates and rental vouchers under lease.
     6 Points--Assign 6 points if HA had 96% or more of its 
rental certificates and rental vouchers under lease.
     4 Points--Assign 4 points if HA had 94% or more of its 
rental certificates and rental vouchers under lease.
     2 Points--Assign 2 points if HA had 90% or more of its 
rental certificates and rental vouchers under lease.
     0 Points--Assign 0 points if HA had less than 90% of its 
rental certificates and rental vouchers under lease.
    (v) Timely Submission of HA Budget and Financial Statements to HUD.
     8 Points--Assign 8 points if the HA submitted both its 
most recent fiscal year Section 8 budget at least 30 days prior to the 
start of the HA fiscal year and its year-end Section 8 annual financial 
statements within the required 45 days of the end of the HA's fiscal 
year.
     4 Points--Assign 4 points if the HA submitted either its 
most recent fiscal year budget at least 30 days prior to the start of 
the HA's fiscal year or its year-end Section 8 annual financial 
statements within the required 45 days of the end of the HA fiscal 
year.
     0 Points--Assign 0 points if the HA is unable to document 
the timely submission of the budget and financial statements.
    (2) Selection Criterion 2: Appropriateness of Population Served by 
VA Medical Center (10 points).
    (a) Description: The VA Medical Center has shown its ability to 
target specialized homeless program resources for veterans who are 
homeless (i.e., living in homeless shelters or outdoors at the time of 
initial program assessment).
    (b) Rating: 10 points. The proportion of all homeless veterans 
served by the VA Medical Center is in the higher twenty-fifth 
percentile for all program sites as rated by VA's NEPEC.
    5 Points--The proportion of all homeless veterans served by the VA 
Medical Center is in the higher fiftieth percentile for all program 
sites as rated by VA's NEPEC.
    0 Points--If neither of the above statements apply, assign 0 
points.
    (3) Selection Criterion 3: Outreach efforts of the VA Medical 
Center (10 points).
    (a) Description: The VA Medical Center has adhered to the program 
principles as evidenced by outreach efforts in the homeless programs it 
currently administers.
    (b) Rating: 10 points. The proportion of homeless veterans served 
who were contacted through outreach at healthcare for homeless veterans 
(HCHV) sites or entered the program from the community at DCHV sites is 
in the higher twenty-fifth percentile for all program sites as rated by 
VA's NEPEC.
    5 Points--The proportion of homeless veterans served who were 
contacted through outreach (at HCHV sites) or entered the program from 
the community (at DCHV sites) is in the higher fiftieth percentile for 
all program sites as rated by VA's NEPEC.
    0 Points--If neither of the statements apply, assign 0 points.
    (4) Selection Criterion 4: Success rate of treatment by VA Medical 
Center's specialized homeless program (10 points).
    (a) Description: The proportion of veterans served by the VA 
Medical Center in a specialized homeless program which had arrangements 
for housing and employment at the time of discharge from contract 
residential care or domiciliary care.
    (b) Rating: 10 points. The number of homeless veterans served in a 
specialized homeless program is in the higher twenty-fifth percentile 
for all program sites as rated by VA's NEPEC.
    5 Points--The number of homeless veterans served in a specialized 
homeless program is in the higher fiftieth percentile for all program 
sites as rated by VA's NEPEC.
    0 Points--If neither of the above statements apply, assign 0 
points.
    (5) Selection Criterion 5: The Extent of the VA Medical Center's 
integration of Homeless programs with other Community Programs for the 
Homeless (15 points).
    (a) Description: Integration of the VA Medical Center's program for 
homeless veterans with other community programs for the homeless. The 
application must contain a description of such integration.
    (b) Rating: 15 points. The application shows the VA Medical 
Center's commitment of resources to the Access to Community Care and 
Effective Supportive Services (ACCESS) program, other initiatives 
undertaken by local coalitions for the homeless, or comparable multi-
service integration initiatives on behalf of the homeless.
    8 Points--The application shows the VA Medical Center's involvement 
in service integration through membership in local coalitions of 
homeless service providers and attendance of meetings of such groups, 
but the Center has not committed resources to the groups.
    0 Points--The application does not show that the VA Medical Center 
cooperates with service integration activities or resource exchange.
    (6) Selection Criterion 6: Need for Specialized Services for 
Homeless Veterans. (15 points).
    (a) Description: The number of homeless veterans in the area of the 
VA Medical Center warrants additional resources to address the demand 
for services.
    (b) Rating: 15 points. The number of homeless veterans who were 
screened by outreach clinicians of the VA Medical Center's specialized 
program for homeless veterans during FY 1993 was in the top twenty-
fifth percentile of all program sites as rated by VA's NEPEC.
    8 Points--The number of homeless veterans who were screened by 
outreach clinicians of the VA Medical Center's specialized program for 
homeless veterans during FY 1993 was in the top fiftieth percentile of 
all program sites as rated by VA's NEPEC.
    0 Points--If neither of the above statements apply, assign 0 
points.
    (7) Selection Criterion 7: Efforts of HAs to Establish a Family 
Self-Sufficiency Program (10 point Deduction).
    (a) Description: The application must describe administration of a 
PHA's FSS program. The description must include (1) Submission to HUD 
of an Action Plan, and (2) creation of a Program Coordinating 
Committee. If a PHA is not administering a Rental Voucher or Rental 
Certificate Program, the HUD State or Area Office will rate HA 
administration of the Public Housing FSS program, if applicable. All 
activities rated under this criterion must have been completed prior to 
the submission of an application under this NOFA. The score of the PHA 
application must be reduced if the PHA received an FSS Incentive award 
of Section 8 funding in FY 1992 and the PHA has failed to complete the 
required implementation steps as described below. Also, the score of a 
PHA application must be reduced if the PHA received funding in FY 1993 
(unless the HUD State or Area Office granted a total exception to the 
FSS program requirement) and the PHA has failed to complete the 
required implementation steps as described below.
    (b) Rating and Assessment: The HUD State or Area Office must deduct 
point values as shown below:
     10 Point Deduction--Deduct 10 points if HA has failed to 
establish a Program Coordinating Committee and provide the names, 
duties and experience of all members to HUD (24 CFR 984.202(a) and 
(b)), and the HA has failed to submit an Action Plan to HUD within 90 
days of notification by HUD of approval of the PHA's application for 
units under the FY 91/92 FSS incentive award competition or HUD 
approval of the HA's first application, commencing in FY 93, for rental 
certificates or rental vouchers (24 CFR 984.201(c)(1)).
     5 Point Deduction--Deduct 5 points if the HA has failed to 
establish a Program Coordinating Committee and provide the names, 
duties and experience of all members or has failed to submit an Action 
Plan in accordance with 24 CFR 984.201(c)(1).
    (8) Selection Criterion 8: Efforts of HA to Provide Area-Wide 
Housing Opportunities for Families (5 points).
    (a) Description: Many HAs have undertaken voluntary efforts to 
provide area-wide housing opportunities for families. These HAs have 
established cooperative agreements with other HAs or created a 
consortium of HAs in order to facilitate the transfer of families and 
their rental assistance funding between HAs. HAs have established 
relationships with other entities such as non-profit groups to provide 
families with additional counseling to increase the likelihood of a 
successful move by the families to low-poverty areas.
    (b) Rating and Assessment: HUD will assign point values as shown 
below:
     5 Points--Assign 5 points if the HA documents that it has 
taken steps to increase area-wide housing opportunities for families 
such as being a member of an established consortium of HAs including at 
least 50 percent of the HAs in its housing market, providing extra 
counseling to families, establishing a relationship with other groups 
including non-profit agencies, or participating in other activities 
that facilitate area-wide housing opportunities for families.
     0 Points--Assign 0 points if the HA is unable to document 
area-wide efforts as shown in this criterion.

(B) Unacceptable Applications

    To be eligible for processing, an application must be received by 
the HUD State or Area Office/Native American Programs Office no later 
than the application submission deadline date and time specified in 
this notice. The HUD State or Area Office/Native American Programs 
Office will screen all applications and notify HAs of technical 
deficiencies by letter. Allowable corrections relate only to technical 
items, as determined by HUD, which do not improve the substantive 
quality of the application relative to the ranking factors.
    All HAs must submit corrections within 14 calendar days from the 
date of HUD's letter notifying the applicant of any technical 
deficiency. Information received after 3:00 p.m. local time on the 
fourteenth calendar day of the correction period will not be accepted 
and the application will be rejected as being incomplete.
    All HAs are encouraged to review the ``Checklist for Technical 
Requirements'' provided in Section IV of this NOFA. The checklist 
identifies all technical requirements needed for application 
processing. An HA application that does not comply with the 
requirements of 24 CFR 887.55 (b) and this notice, including the drug-
free workplace certification, and the anti-lobbying certification 
disclosure requirements, by the expiration of the 14-day cure period 
will be rejected from processing.
    (a) After the 14-calendar day cure period, if any, the HUD State or 
Area Office will disapprove HA applications that it determines are not 
acceptable for processing (refer to Checklist of Technical Requirements 
in the Section 8 HA Application Kit available at the HUD State or Area 
Office/Native American Programs Office). The HUD State or Area Office/
Native American Programs Office notification of rejection letter must 
state the basis for the decision.
    (b) HUD may decide to deny processing of applications that fall 
into any of the following categories:
    (i) The Department of Justice has brought a civil rights suit 
against the applicant HA and the suit is pending;
    (ii) There are outstanding findings of noncompliance with civil 
rights statutes, Executive Orders, or regulations as a result of formal 
administrative proceedings, or the Secretary has issued a charge 
against the applicant under the Fair Housing Act, unless the applicant 
is operating under a conciliation or compliance agreement designed to 
correct the areas of noncompliance;
    (iii) There has been an adjudication of a civil rights violation in 
a civil action brought against the HA by a private individual, unless 
the HA is operating in compliance with court order, or implementing a 
HUD approved plan or compliance agreement designed to correct the areas 
of noncompliance.
    (iv) HUD has deferred application processing under Title VI of the 
Civil Rights Act of 1964, the Attorney General's Guidelines (28 CFR 
50.3) and the Title VI regulations (24 CFR 1.8), or under section 504 
of the Rehabilitation Act of 1973, as amended, and the section 504 
regulations (24 CFR 8.57), or under The Americans with Disabilities Act 
of 1990.
    (v) The HA has serious, unaddressed, outstanding Inspector General 
audit findings or fair housing and equal opportunity monitoring review 
findings or HUD State or Area Office/Native American Programs Office 
management review findings for one or more of its rental certificate, 
rental voucher, or moderate rehabilitation programs, or, in the case of 
an HA that is not currently administering a Rental Voucher, Rental 
Certificate, or Moderate Rehabilitation Program, for its Public Housing 
Program or Indian Housing Program.
    (vi) The leasing rate for rental certificates and rental vouchers 
under ACC for at least one year is less than 85 percent.
    (vii) The HA is involved in litigation and HUD determines that the 
litigation may seriously impede the ability of the HA to administer an 
additional increment of rental vouchers.

(C) Application Processing

    The HUD State or Area Office/Native American Programs Office is 
responsible for rating the applications for Selection Criterion 1: HA 
Administrative Capability, for Selection Criterion 7: Efforts of HAs to 
Establish a Family Self-Sufficiency Program and for Selection Criterion 
8: Efforts to provide Area-wide Housing Opportunities for Families. HUD 
Headquarters is responsible for rating, ranking and selecting 
applications which will receive assistance under the HUD-VASH Program. 
The HUD State or Area Office/Native American Programs Office will 
initially screen all applications, using the ``Checklist for Technical 
Requirements'' listed in Section III of this NOFA as a guide to 
determine if an application is complete.

(D) Selection Process

    After the HUD State or Area Office/Native American Programs Office 
has screened HA applications and disapproved any applications 
unacceptable for further processing (See Section II of this NOFA), the 
HUD State or Area Office/Native American Programs Office will review 
and rate all approvable applications for Selection Criterion 1: HA 
Administrative Capability, Selection Criterion 7: Efforts of HAs to 
Establish a Family Self-Sufficiency Program and for Selection Criterion 
8: Efforts to provide Metropolitan-wide Housing Opportunities for 
Families only, utilizing the point assignments listed in this NOFA. All 
scored applications and rating sheets in each HUD State or Area Office/
Native American Programs Office will be sent to the HUD Headquarters.
    HUD Headquarters and the Department of Veterans Affairs will review 
and rate these applications for Selection Criteria 2 through 8, 
utilizing the point assignments listed in this NOFA. Headquarters will 
select the highest rated applications until the rental voucher funds 
are insufficient to fund the next highest rated application(s).
    When remaining rental voucher funds are insufficient to fund the 
next highest scoring application(s) in full, HUD Headquarters may fund 
that application(s) to the extent of the number of rental vouchers 
available. Applicants that do not wish to have the size of their 
programs reduced may indicate in their applications that they do not 
wish to be considered for a reduced award of funds. HUD Headquarters 
will skip over these applicants if assigning the remaining funding 
would result in a reduced funding level.

(E) Local Government Comments

    The HUD State or Area Office/Native American Programs Office will 
obtain section 213 comments, in accordance with 24 CFR part 791, 
subpart C, from the unit of general local government, including an 
Indian tribe. Comments submitted by the unit of general local 
government must be considered before an application can be approved.
    For purposes of expediting the application process, the HA should 
encourage the chief executive officer of the unit of general local 
government to submit a letter with the HA application commenting on the 
HA application in accordance with Section 213. Since HUD cannot approve 
an application until the 30-day comment period is closed, the Section 
213 letter should not only comment on the application, but also state 
that HUD may consider the letter to be the final comments and that no 
additional comments will be forthcoming from the unit of general local 
government.

III. Checklist of Application Submission Requirements.

(A) Application Requirements

    Each HA must submit the items identified in this section and must 
include the descriptions required by Selection Criteria 5, 7 and 8. All 
other rating criteria will be rated based on data currently available 
to HUD and VA.
(1) Letter From VA Medical Center
    The HA application must include a letter from the Director of the 
VA Medical Center stating that the HA's jurisdiction to operate a 
rental voucher program, as identified by the HA to the Medical Center, 
is within the catchment area of the VA Medical Center to operate 
homeless programs. This letter must also include a statement that the 
VA Medical Center will commit a minimum of one professional, full-time 
equivalent (FTE) employee per each new increment of 25 rental vouchers 
awarded to the corresponding HA, i.e., two FTE for 50 vouchers 
requested. These additional FTE are necessary to provide case-
management services for the homeless veterans who receive rental 
assistance under this HUD-VASH set-aside.
(2) Narrative on VA Medical Center's Homeless Programs
    The applicants must describe the VA Medical Center's efforts to 
integrate its work with homeless veterans with other community programs 
for the homeless. Commitment of resources to the Access to Community 
Care and Effective Supportive Services (ACCESS) program is an example 
of the multi-service integration initiatives which the Medical Center 
must describe.

(B) Application Kit

    An Application Kit, which includes Form HUD-52515, Application for 
Existing Housing, may be obtained from the local HUD State or Area 
Office/Native American Programs Office. Only an original application 
and one copy should be submitted; it is not necessary to submit 
additional copies of the application. In addition, the basic 
application and other required submissions are available from the HUD 
State or Area Office, as follows: Form HUD-52515; Certification for a 
Drug-Free Workplace; Text for the Certification Regarding Lobbying; and 
Standard Form LLL, Disclosure of Lobbying Activities.

IV. Corrections to Deficient Applications

    To be eligible for processing, an application must be received by 
the appropriate HUD State or Area Office/Native American Programs 
Office no later than the date and time specified in Section II of this 
NOFA. The HUD State or Area Office/Native American Programs Office will 
initially screen all applications and notify HAs of technical 
deficiencies by letter.
    If an application has technical deficiencies, the HA will have 14 
calendar days from the date when HUD issues written notification to 
submit the missing or corrected information to the HUD State or Area 
Office and/or Native American Programs Office. Curable technical 
deficiencies relate only to items that do not improve the substantive 
quality of the application relative to the rating factors.
    All HAs must submit corrections within 14 calendar days from the 
date of HUD's letter notifying the applicant of any such deficiency. 
Information received after 3 p.m. local time (i.e., the time in the 
appropriate HUD State or Area Office/Native American Programs Office), 
of the fourteenth calendar day of the correction period will not be 
accepted and the application will be rejected as incomplete. All HAs 
are encouraged to review the initial screening checklist provided in 
Section III of this notice. The checklist identifies all technical 
requirements needed for application processing. An HA application that 
does not comply with the requirements of 24 CFR 887.55(b) and this 
notice, including the drug-free workplace certification and the anti-
lobbying certification/disclosure requirements, after the expiration of 
the 14-day cure period will be rejected from processing.

V. Other Matters

(A) Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with the Department's regulations at 24 CFR 
Part 50, which implement section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332). The Finding 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 General 
Counsel, Department of Housing and Urban Development, room 10276, 451 
Seventh Street, SW, Washington, D.C. 20410.

(B) Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that this NOFA 
does not have substantial, direct effect on the States, on their 
political subdivisions, or on the relationship between the Federal 
government and the States, or on the distribution of power or 
responsibilities among the various levels of government, because this 
NOFA would not substantially alter the established roles of HUD, the 
States and local governments, including HAs.

(C) Impact on the Family

    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 within the meaning of the Executive Order and, thus, 
is not subject to review under the Order. This is a funding notice and 
does not alter program requirements concerning family eligibility.

(D) Accountability in the Provision of HUD Assistance

    HUD has promulgated a final rule to implement section 102 of the 
Department of Housing and Urban Development Reform Act of 1989 (HUD 
Reform Act). The final rule is codified at 24 CFR part 12. Section 102 
contains a number of provisions that are designed to ensure greater 
accountability and integrity in the provision of certain types of 
assistance administered by HUD. On January 16, 1992, HUD published at 
57 FR 1942, additional information that gave the public (including 
applicants for, and recipients of, HUD assistance) further information 
on the implementation of section 102. The documentation, public access, 
and disclosure requirements of section 102 are applicable to assistance 
awarded under this NOFA as follows:
(1) Documentation and Public Access
    HUD will ensure that documentation and other information regarding 
each application submitted pursuant to this NOFA are sufficient to 
indicate the basis upon which assistance was provided or denied. This 
material, including any letters of support, will be made available for 
public inspection for a five-year period beginning not less than 30 
days after the award of the assistance. Material will be made available 
in accordance with the Freedom of Information Act (5 U.S.C. 552) and 
HUD's implementing regulations at 24 CFR part 15. In addition, HUD will 
include the recipients of assistance pursuant to this NOFA in its 
quarterly Federal Register notice of all recipients of HUD assistance 
awarded on a competitive basis. (See 24 CFR 12.14(a) and 12.16(b), and 
the notice published in the Federal Register on January 16, 1992 (57 FR 
1942), for further information on these requirements.)
(2) Disclosures
    HUD will make available to the public for five years all applicant 
disclosure reports (HUD Form 2880) submitted in connection with this 
NOFA. Update reports (also Form 2880) will be made available along with 
the applicant disclosure reports, but in no case for a period less than 
three years. All reports--both applicant disclosures and updates--will 
be made available in accordance with the Freedom of Information Act (5 
U.S.C. 552) and HUD's implementing regulations at 24 CFR part 15. (See 
24 CFR subpart C, and the notice published in the Federal Register on 
January 16, 1992 (57 FR 1942), for further information on these 
disclosure requirements.)

(E) 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.

(F) Prohibition Against Lobbying of HUD Personnel

    Section 13 of the Department of Housing and Urban Development Act 
(42 U.S.C. 3537b) contains two provisions dealing with efforts to 
influence HUD's decisions with respect to financial assistance. The 
first imposes disclosure requirements on those who are typically 
involved in these efforts--those who pay others to influence the award 
of assistance or the taking of a management action by the Department 
and those who are paid to provide the influence. The second restricts 
the payment of fees to those who are paid to influence the award of HUD 
assistance, if the fees are tied to the number of housing units 
received or are based on the amount of assistance received, or if they 
are contingent upon the receipt of assistance.
    HUD's regulation implementing section 13 is codified at 24 CFR part 
86. If readers are involved in any efforts to influence the Department 
in these ways, they are urged to read the final rule, particularly the 
examples contained in Appendix A of the rule. Appendix A of this rule 
contains examples of activities covered by this rule.
    Any questions concerning the rule should be directed to the Office 
of Ethics, Room 2158, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410. Telephone: (202) 708-3815 
(voice/TDD). This is not a toll-free number. Forms necessary for 
compliance with the rule may be obtained from the local HUD office.

(G) Prohibition Against Advance Information on Funding Decisions

    Section 103 of the HUD Reform Act proscribes the communication of 
certain information by HUD employees to persons not authorized to 
receive that information during the selection process for the award of 
assistance. HUD's regulation implementing section 103 is codified at 24 
CFR part 4, and was recently amended by an interim rule published in 
the Federal Register on August 4, 1992 (57 FR 34246). In accordance 
with the requirements of section 103, HUD employees involved in the 
review of applications and in the making of funding decisions are 
restrained by 24 CFR part 4 from providing advance information to any 
person (other than an authorized employee of HUD) concerning funding 
decisions, or from otherwise giving any applicant an unfair competitive 
advantage. Persons who apply for assistance in this competition should 
confine their inquiries to the subject areas permitted by 24 CFR part 
4. Applicants who have questions should contact the HUD Office of 
Ethics, (202) 708-3815 (voice/TDD). (This is not a toll-free number.)

    Dated: June 29, 1994.
Michael B. Janis,
General Deputy Assistant Secretary for Public and Indian Housing.

Checklist for Technical Requirements

    The following checklist specifies the required information which 
must be submitted in the joint application. It is recommended, but not 
required, that the application contain a narrative explaining how the 
application meets the selection criteria.

                       Initial Screening Checklist                      
------------------------------------------------------------------------
          HA                                                            
-----------------------                                                 
   Yes          No                                                      
------------------------------------------------------------------------
  {time}      {time}    1. The application contains a cover letter      
                         stating the total number of rental vouchers    
                         requested in the application and indicates     
                         whether the applicant is willing to accept a   
                         reduced number and the minimum number of units 
                         the applicant is willing to accept.            
  {time}      {time}    2. The application includes form HUD 52515 and  
                         the average adjusted monthly income (see       
                         section H of HUD 52515) by bedroom size for    
                         which the HA has submitted an application.     
  {time}      {time}    3. The application demonstrates that the        
                         applicant qualifies as an HA and is legally    
                         qualified and authorized to participate in the 
                         rental assistance programs for the area in     
                         which the program is to be carried out. Such   
                         demonstration includes (i) The relevant        
                         enabling legislation, (ii) any rules and       
                         regulations adopted or to be adopted by the    
                         agency to govern its operations, and (iii) a   
                         supporting opinion from the agency counsel. If 
                         such documents are currently on file in the HUD
                         State or Area Office, they do not have to be   
                         resubmitted.                                   
  {time}      {time}    4. The application includes a statement that the
                         housing quality standards to be used in the    
                         operation of the program will be as set forth  
                         in 24 CFR 887.251 or that variations in the    
                         Acceptability Criteria are proposed. In the    
                         latter case, each proposed variation shall be  
                         specified and justified.                       
  {time}      {time}    5. The application contains the HA schedule of  
                         leasing which must provide for the expeditious 
                         leasing of units. In developing the schedule,  
                         an HA must specify the number of units that are
                         expected to be leased at the end of each three-
                         month interval. The schedule must project lease-
                         up by eligible individuals within twelve months
                         or sooner after execution of the ACC by HUD.   
------------------------------------------------------------------------


    Requirement for Drug-Free Workplace Certification, Anti-Lobbying    
                 Certification and Disclosure Statement                 
------------------------------------------------------------------------
          HA                                                            
-----------------------                                                 
   Yes          No                                                      
------------------------------------------------------------------------
  {time}      {time}    6. The application meets HUD's drug-free        
                         workplace requirement set out at 24 CFR part   
                         24, subpart F. (The application contains an    
                         executed Certification for a Drug-Free         
                         Workplace.)                                    
  {time}      {time}    7. The application meets HUD's regulations      
                         regarding anti-lobbying set out at 24 CFR part 
                         87. The anti-lobbying requirements apply to    
                         applications that, if approved, would result in
                         the HA obtaining more than $100,000 in budget  
                         authority. To comply, HAs must submit an Anti- 
                         Lobbying Certification [Attachment 4] and if   
                         warranted, a Disclosure of Lobbying Activities.
  {time}      {time}    8. The application includes a description of the
                         VA Medical Center's integration of homeless    
                         programs with other community programs for the 
                         homeless.                                      
  {time}      {time}    9. The application includes a description of the
                         efforts of the HA to establish an FSS program  
                         and to provide area-wide housing opportunities 
                         for families.                                  
  {time}      {time}    10. The application includes a letter from the  
                         VA Medical Center that states the HA's         
                         jurisdiction, as identified to the VA Medical  
                         Center by the HA, to operate a rental voucher  
                         program is within the catchment area of the VA 
                         Medical Center and the VA Medical Center       
                         commits to provide additional FTE employee for 
                         case-management services.                      
------------------------------------------------------------------------

List of Eligible VA Medical Centers

FY 1993 HUD-VASH Notice of Fund Availability

1. Allen Park, MI
2. Anchorage, AK
3. Albany, NY
4. American Lake, WA
5. Atlanta, GA
6. Augusta, GA
7. Baltimore, MD
8. Bath, NY
9. Bay Pines, FL
10. Bedford, MA
11. Biloxi, MS
12. Birmingham, AL
13. Boston, MA
14. Brockton, MA
15. Bronx, NY
16. Brooklyn, NY
17. Buffalo, NY
18. Butler, PA
19. Canandaigua, NY
20. Charleston, SC
21. Cheyenne, WY
22. Chicago (West Side), IL
23. Cincinnati, OH
24. Cleveland, OH
25. Coatesville, PA
26. Dallas, TX
27. Dayton, OH
28. Denver, CO
29. Dublin, GA
30. Des Moines, IA
31. East Orange, NJ
32. Fargo, ND
33. Hampton, VA
34. Hines, IL (Chicago)
35. Hot Springs, SD
36. Houston, TX
37. Huntington, WV
38. Indianapolis, IN
39. Kansas City, MO
40. Leavenworth, KS
41. Lebanon, PA
42. Little Rock, AR
43. Loma Linda, CA
44. Long Beach, CA
45. Los Angeles, CA
46. Louisville, KY
47. Lyons, NJ
48. Martinsburg, WV
49. Miami, FL
50. Milwaukee, WI
51. Minneapolis, MN
52. Montrose, NY
53. Mountain Home, TN
54. Nashville, TN
55. New Orleans, LA
56. New York, NY
57. North Chicago, IL
58. Oklahoma City, OK
59. Palo Alto, CA
60. Perry Point, MD
61. Philadelphia, PA
62. Phoenix, AZ
63. Pittsburgh, PA
64. Portland, OR
65. Prescott, AZ
66. Providence, RI
67. Roseburg, OR
68. Salisbury, NC
69. Salt Lake City, UT
70. San Antonio, TX
71. San Diego, CA
72. San Francisco, CA
73. St. Louis, MO
74. Seattle, WA
75. Syracuse, NY
76. Tampa, FL
77. Toledo, OH
78. Tomah, WA
79. Tucson, AZ
80. Tuskegee, AL
81. Walla Walla, WA
82. Washington, DC
83. West Haven, CT
84. West Los Angeles, CA
85. White City, OR
86. Wilkes-Barre, PA
87. Lebanon, PA

[FR Doc. 94-17029 Filed 7-13-94; 8:45 am]
BILLING CODE 4210-33-P