[Federal Register Volume 59, Number 238 (Tuesday, December 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30569]


[[Page Unknown]]

[Federal Register: December 13, 1994]


      
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Part III





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Public and Indian Housing



_______________________________________________________________________



Designated Housing for Disabled Families; Funding Availability for 
Fiscal Year 1994; Invitation for Applications; Notice
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Assistant Secretary for Public and Indian Housing
[Docket No. N-94-3718; FR-3751-N-01]

 

Notice of Funding Availability for FY 1994; Invitation for 
Applications: Designated Housing for Disabled Families

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

ACTION: Notice of Funding Availability (NOFA) for Fiscal Year (FY) 1994 
for public housing development and major reconstruction of obsolete 
public housing (MROP) activities designated for disabled families; 
invitation for applications.

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

SUMMARY: Section 624 of the Housing and Community Development Act of 
1992 (HCD Act of 1992) requires the Department to set aside not less 
than 5 percent of amounts approved for public housing development and 
MROP activities in the FY 1993 and 1994 appropriations acts for 
designated housing for disabled families. Section 622 of the 1992 Act 
amends section 7 of the U.S. Housing Act of 1937 (USHA), and sets forth 
the requirements for designating housing for elderly families, disabled 
families, and elderly and disabled families. (The final rule to 
implement the provisions of section 7 of the USHA was published on 
April 13, 1994.) These set-asides are to be used only for the costs of 
development of, or MROP activities in connection with, housing 
designated for occupancy under section 7. The competition for these 
set-aside funds will be based upon (1) the need of the PHA for 
assistance (taking into consideration the allocation plan submitted), 
and (2) the extent to which the projects/buildings meet the 
requirements of section 7(e) (i.e., the allocation and supportive 
service plans). Note: Pursuant to section 624(B) of the HCD Act of 
1992, no building selected by the PHA for designated housing for 
disabled families under this NOFA may contain more than 25 units unless 
the applicant demonstrates a need for a building with more than 25 
units that cannot otherwise be met by a building with 25 units or less. 
Designation of a portion of a project does not require that the 
buildings, floors or units be contiguous; PHAs are encouraged to place 
units in the most integrated setting possible. In general, HUD will 
approve designated projects for disabled families only if there is a 
clear demonstration that there is both a need and a demand by disabled 
families for such designation.
    Attached as Appendices A and B to this NOFA are the 1994 NOFA for 
Public Housing Development (published on May 24, 1994) and the NOFA for 
1993 and 1994 MROP activities (published on May 20, 1994). The 
requirements set forth in these NOFAs that are applicable to public 
housing development and MROP activities apply to designated housing for 
disabled families unless otherwise indicated in this NOFA.
    This NOFA announces the availability of the set-asides for public 
housing development and/or MROP activities applications for designated 
housing for disabled families pursuant to section 7 of the USHA. The 
objective of development/MROP activities funding for designated housing 
for disabled families is to assist PHAs to meet the goals set forth in 
their allocation plans.
    A PHA's project(s) for disabled families must be designated before 
the development/MROP applications can be selected for funding under 
this NOFA. Thus, the PHA must have an approved allocation plan that 
includes the designated project as a housing resource. The PHA also 
must have an approved supportive service plan for the project(s) that 
has been designated for disabled families.
    Allocation plans (including those with supportive service plans) 
may be submitted at any time. However, if a PHA anticipates responding 
to this NOFA, it should submit its allocation plan and supportive 
service plan in sufficient time for them to be approved before the PHA 
files its development/MROP application.
    This NOFA is not applicable to the Indian housing program.

DATES: APPLICATION SUBMISSION: This NOFA is open-ended and applications 
will be accepted at the HUD Field Office Public Housing Division any 
time after publication of this NOFA until all available set-aside funds 
for both development and MROP activities are utilized. Applications 
will be considered in the order received. When an application is 
submitted to the Field Office, the PHA must clearly write ``PUBLIC 
HOUSING (DISABLED) APPLICATION'' on the outside of the envelope.

FOR FURTHER INFORMATION CONTACT: Kevin Emanuel Marchman, Deputy 
Assistant Secretary, Distressed and Troubled Housing Recovery, Office 
of Public and Indian Housing, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 4138, Washington, DC 20410. 
Telephone (202) 401-8812 (voice) or (202) 708-4594 (TDD). (These are 
not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

I. Introduction

A. Authority

    Sections 5 and 23 of the United States Housing Act of 1937 (USHA) 
(42 U.S.C. 1437c and 1437u); sec. 7(d) of the Department of Housing and 
Urban Development Act (42 U.S.C. 3535(d)); and sections 622 and 624 of 
the Housing and Community Development Act of 1992 (Pub. L. 102-550, 
approved October 28, 1992) (HCD Act of 1992).
    Public housing development regulations are codified in 24 CFR part 
941, and the designated housing final rule was published in the Federal 
Register on April 13, 1994 (59 FR 17652). The rule will be codified at 
24 CFR part 945 (``Designated Housing'' regulations).

B. Fund Availability

    The HCD Act of 1992 required the Department to set aside not less 
than 5 percent of public housing development and MROP activities 
amounts approved in the FY 1993 and 1994 appropriations acts for 
designated housing for disabled families. Accordingly, $20 million was 
set aside in FY 1993 and a maximum of $21.78 million was set aside in 
FY 1994 for public housing development; a maximum of $8.96 million was 
set aside from the FY 1993 and 1994 appropriations for MROP activities. 
Thus, a maximum of $50.74 million may be made available under this 
NOFA.

C. Fund Assignments

    Section 213(d) of the Housing and Community Development Act of 1974 
(HCD Act of 1974) requires that funds be allocated on a fair share 
basis, except for (a) amounts retained in a Headquarters Reserve and 
(b) appropriations determined incapable of geographic allocation. Since 
the purpose of the allocation is to encourage PHAs to designate units 
for occupancy by disabled families and the extent of interest is not 
predicable by formula, the Department does not intend to fair share 
these funds. This determination was made on the basis of statutory set-
aside, pursuant to 24 CFR 791.403(b)(1)(ii)(C).

II. Regulations and NOFA Requirements

A. Conformity

    While conformity with 24 CFR part 941 is required, this funding 
effort is also subject to the additional specific requirements, 
consistent with the part 941 regulations, that are set forth in this 
NOFA, the Designated Housing final rule (59 FR 17652), and the FSS 
interim and final regulations published on May 27, 1993 at 58 FR 30858 
and 58 FR 30906, respectively, codified at 24 CFR part 962. Applicants 
also should consult Handbook 7417.1 REV-1.
    A PHA preparing an application for public housing development or 
MROP activities for designated housing for disabled families must (1) 
review Appendices A and B to this NOFA for requirements pertaining to 
the application process, threshold approvability, Field Office 
processing, rating panel and criteria, checklist, and (2) follow the 
applicable instructions.
    In addition to the requirements set forth in Appendices A and B, 
the following provisions are applicable to applicants:
    1. Applications may be submitted to the HUD Field Office anytime 
after publication of this NOFA, as provided in the ``Application 
Submission'' section of this NOFA.
    2. The PHA application cover letter must indicate the date the 
PHA's allocation and supportive services plans for housing for disabled 
families have been or will be submitted to the Field Office for 
approval. If the allocation and supportive service plans have not been 
filed, the Field Office shall advise the PHA that the development/MROP 
activities application cannot be approved unless the plans are 
approved.
    3. Applications will be determined approvable if they successfully 
pass the minimum approvable score of 182 points for development 
applications and 140 points for MROP applications. Section 624 requires 
that applications be selected competitively based on (1) the PHA's need 
for funds to meet the goals expressed in its allocation plan; and (2) 
the extent to which applications meet the requirements of 24 CFR part 
945 (which contains the Designated Housing regulations).
    Field Offices will prepare analyses of allocation and supportive 
service plans and of applications by furnishing narrative responses to 
the following items:
    a. Need of the PHA for assistance, taking into account the number 
of disabled families who are potential residents of the project based 
on waiting lists, local surveys of accessible housing needs, the needs 
assessment (see 24 CFR 8.25), a housing survey, a survey of agencies 
providing services to persons with disabilities, the average length of 
vacancy for accessible units and the length of time a disabled family 
has to wait for a dwelling unit.
    b. Extent that appropriate supportive services will be provided, 
indicating that prospective residents want the supportive services, 
that the services are adequately designed to meet the needs of disabled 
residents, and the experience of the service provider(s) in 
administering an effective service delivery program for disabled 
families. If residential supervision is required, the Field Office 
shall indicate that a written commitment has been obtained for such 
service.
    c. Field Office Reports. The Field Office Public Housing Division 
shall forward each approvable application to the Headquarters Panel 
within two weeks of the end of the deficiency ``cure'' period. The 
Field Office report will include the project number, total number of 
units and units by bedroom size, structure type(s), cost areas, funding 
required, the metropolitan/ non-metropolitan designations for each 
application, and the rating score sheets; in addition, the report is to 
describe how the application supports the PHA allocation and supportive 
service plans, and whether the PHA intends to develop the housing for 
disabled families on scattered sites or in a manner designed to obtain 
the most integrated setting possible.
    4. Approvable applications will be referred to the Headquarters 
Review Panel, which will be convened on an ad hoc basis. This Panel 
will be comprised of Headquarters staff and will retain the same 
individuals, to the extent possible, each time the Panel convenes to 
ensure continuity. The Headquarters Review Panel will review and rank 
applications based on Field Office rating score sheets, analyses, 
comments and recommendations. The Assistant Secretary will select 
applications based on the Headquarters Review Panel's rankings and 
recommendations, up to the amounts available under the two set asides.

B. Rating Criteria

    1. General. All threshold-approvable applications shall be rated by 
the Field Offices on the established rating criteria listed in 
Appendices A and B, which still apply to corresponding designated 
public housing development and MROP activities plus the additional 
rating criteria point factors listed as follows:

----------------------------------------------------------------------------------------------------------------
                                               Criteria                                                  Points 
----------------------------------------------------------------------------------------------------------------
a. The local survey provided by the PHA of accessible housing needs indicates that there is a                   
 shortage of housing for low-income disabled families................................................         20
b. The Field Office's determination, based on documentation submitted, that the PHA's allocation plan           
 and the supportive service plan fulfill the requirements and provisions detailed in 24 CFR 945.205;            
 compliance includes a description of the activities the PHA undertook to carry out the provisions of           
 24 CFR 945.205(b)(2) ``Public review and comment on the supportive service plan''...................         20
c. Appropriate supportive services will be provided that are designed to meet the special needs of              
 disabled residents..................................................................................         10
d. The supportive service provider is experienced and capable of administering an effective service             
 delivery program as evidenced by compliance with any licensing requirements imposed by State or                
 local law for the type of service or services to be provided........................................         10
e. If residential supervision is required, a written commitment was included in the allocation plan..         10
f. The application proposes housing ``in the most integrated setting possible'' ... i.e., units are             
 not concentrated in a few locations (see 24 CFR 945.205)............................................         10
g. There is evidence of active involvement of the applicable duly-elected resident council(s) in                
 planning for, as well as implementing this initiative...............................................         10
h. The extent to which the PHA has demonstrated that it can train, hire or contract with residents in           
 this initiative.....................................................................................         10
----------------------------------------------------------------------------------------------------------------

    The selection criteria specified in the attached appendices and 
this NOFA may not be added to or modified.
    2. Total Possible Points. The total possible points for designated 
public housing applications is 260; the total for designated MROP 
activities is 200.
    3. Reservation of Funds and Partial Funding. See Appendices A and B 
to this NOFA for applicable provisions.

III. Other Matters

    See Appendices A and B to this NOFA with regard to other matters; 
all provisions as stated in the ``Other Matters'' sections of 
Appendices A and B apply to this NOFA, including the Finding of No 
Significant Impact.

    Dated: November 23, 1994.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.

Appendix A--FY 1994 NOFA for Public Housing Development

    The applicable provisions of the notice of funding availability 
entitled ``Funding Availability for FY 1994; Invitation for 
Applications; Public Housing Development'' are published in the 
Federal Register on May 24, 1994 (59 FR 26902) is republished for 
informational purposes. The provisions in this NOFA concerning 
application due date are not republished in order not to confuse the 
reader.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Assistant Secretary for Public and Indian Housing
[Docket No. N-94-3763; FR-3676-N-01]
Notice of Funding Availability for FY 1994; Invitation for 
Applications: Public Housing Development
AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

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

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

SUMMARY: This NOFA announces the availability of FY 1994 funding, 
and invites eligible public housing agencies (PHAs) to submit 
applications for public housing development. Applications are 
limited to:
    (1) Replacements for demolition/disposition subject to section 
18 of the United States Housing Act of 1937 (USHA);
    (2) Replacements for homeownership transfers under the HOPE I 
Program, and homeownership sales under section 5(h) of the USHA;
    (3) Unforeseen housing needs resulting from natural and other 
disasters; housing needs resulting from emergencies, as certified by 
the Secretary, other than such disasters; housing needs resulting 
from the settlement of litigation; and housing in support of 
desegregation efforts; and
    (4) ``Other'' applications.
    All successful applicants will be required to participate in the 
Family Self-Sufficiency (FSS) program, unless granted an exception. 
This NOFA also provides instructions regarding the preparation and 
processing of applications. The Department is also encouraging 
applicants to form ``partnerships'' consisting of cooperative 
arrangements with community-based entities to provide housing, and 
is encouraging PHAs to engage in ``mixed income'' development 
(wherein public housing units are integrated within market-rate 
developments). This is being done by providing additional points for 
such efforts (see sections III.E.5 and IV.E. of this NOFA).
    This NOFA is not applicable to the Indian housing program.
* * * * *
SUPPLEMENTARY INFORMATION: Paperwork Reduction Act Statement. The 
information collection requirements contained in this NOFA have been 
approved by the OMB under the Paperwork Reduction Act of 1980 and 
have been assigned OMB control numbers 2577-0033, 2577-0036, and 
2577-0044.

I. Introduction

A. Authority

    Sections 5 and 23 of the United States Housing Act of 1937 
(USHA) (42 U.S.C. 1437c and 1437u); and sec. 7(d) of the Department 
of Housing and Urban Development Act (42 U.S.C. 3535(d)).
    Public housing development regulations are published at 24 CFR 
part 941; demolition/disposition regulations are published at 24 CFR 
part 970; section 5(h) regulations are published at 24 CFR part 906.
    The interim and final regulations for the public housing FSS 
program were published on May 27, 1993, at 58 FR 30858, and 58 FR 
30906, respectively, and will be codified at 24 CFR part 962. (The 
FSS final rule simply adopts the FSS interim rule as the FSS final 
regulations.)
    The Notice of Program Guidelines for the HOPE-1 program was 
published on January 14, 1992 at 57 FR 1522. The Catalog of Federal 
Domestic Assistance Program number is 14.850.

B. Fund Availability

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

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

C. Fund Assignments

    Section 213(d) of the Housing and Community Development Act of 
1974 (HCD Act of 1974) requires that funds be allocated on a fair 
share basis, except for (a) amounts identified as Headquarters 
Reserve and (b) amounts determined incapable of geographic 
allocation. The amounts identified by category below are maximums.

1. Headquarters Reserve

    Threshold-approvable applications for housing resulting from 
unforeseen housing needs resulting from natural and other disasters; 
housing needs resulting from emergencies, as certified by the 
Secretary, other than such disasters; housing needs resulting from 
the settlement of litigation; and housing in support of 
desegregation efforts shall be assigned Headquarters Reserve 
funding. (Headquarters Reserve amounts are limited in accordance 
with section 104 of the Department of Housing and Urban Development 
Reform Act of 1989 (Pub.L. 101-235, approved December 15, 1989), to 
five percent of the financial assistance that becomes available 
under the USHA and section 101 of the HUD Act of 1965. Thus, 
Headquarters Reserve funding decisions will be made by Headquarters 
and may affect the distribution of grant authority shown above.)

2. Fair Share

    Depending on recaptures, up to $220 million will be fair shared 
to approve category 4 (``other'') applications. These fair share 
funds will be distributed to Areas (formerly Regions) on the basis 
of the following fair share factors, which reflect the most recent 
decennial census data as to population, poverty, housing 
overcrowding, housing vacancies, amount of substandard housing, and 
other measurable conditions.
    Because of errors in FY 1993 in calculating category 4 scores 
under the June 28, 1993, NOFA (58 FR 34670) for the Laconia Housing 
and Redevelopment Authority (LHRA) in New Hampshire and the Nahunta 
Housing Authority (NHA) in Georgia, fair share funds in the amounts 
of $753,400 and $759,400, respectively, will be awarded from the 
fair share amounts provided to the New England and Southeast Area 
before making FY 1994 selections, and assigned to the LHRA and NHA 
applications. The correction of these errors shall not adversely 
affect their participation in the FY 1994 rating and ranking 
process. If a new application is filed by the LHRA or NHA under this 
NOFA, they will be rated and ranked on the same basis as other 
applications, as if no error had been made. Any unused assignments 
will be redistributed, proportional to need, among remaining Areas 
with approvable unfunded ``other'' applications.
    Fair share and Headquarters Reserve funds are also subject to 
the requirement of section 213 of the HCD Act of 1974 that not less 
than 20 percent nor more than 25 percent of the HUD aggregate 
program funds covered by the statute be allocated for use in 
nonmetropolitan areas. Therefore, public housing development fund 
allocations to select ``other'' applications may be modified before 
assignment in order to ensure Departmental compliance with this 
statutory and regulatory requirement (see 24 CFR 791.403(a)).

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

3. Non-Fair Share

    Thirty percent of the appropriated amount, up to $150 million, 
will be made available for applications for replacement housing 
subject to section 18 of the USHA. Up to $76,059,534 will be made 
available for approvable applications for replacement units for HOPE 
1 or section 5(h) homeownership transfers or sales.

4. Remaining Balances

    Any residual funds not reserved under categories 1, 2, and 3 
will be added to the funds to be fair shared for ``other'' 
approvable applications.

D. Conformity to Regulations and NOFA Requirements

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

II. Application Process Overview

A. General

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

B. Categories of Applications

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

C. Application Approval

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

D. Disclosure of Information

    The Department of Housing and Urban Development Reform Act of 
1989 (HUD Reform Act) prohibits advance disclosure of funding 
decisions (see 24 CFR part 4); civil penalties related to advance 
disclosure are set out in 24 CFR part 30. Application approval/non-
approval notifications shall not occur until the Congressional 
notification process is completed.

E. Records Retention

    Applications and materials related to applications (e.g., Field 
Office analyses, application scoring sheets, and notifications of 
selection/non-selection) will be retained in the appropriate Field 
Office for five years, and be available for public inspection in 
accordance with 24 CFR part 12.

III. Application Requirements

A. All Applicants

    Each application must specify the housing type (new 
construction, rehabilitation, or acquisition), development method 
(conventional, turnkey, or acquisition), and community for which the 
project is proposed. No more than one housing type, development 
method, and locality may be proposed for an application. Each 
application shall consist of an original and two copies, and must 
include the following:

1. Cover Letter

    The cover letter must identify the category of application (see 
Section II.B. of this NOFA for a description of the categories; see 
also subparagraph 6 of Section III.A of this NOFA).

2. Application-Form HUD 52470

    The application must be signed by the person authorized and 
dated and include the information as specified in the form.

3. Evidence of Legal Eligibility

    If it has not previously done so, the PHA must document that it 
is legally organized. A current General Certificate (Form HUD 9009) 
must be submitted.

4. Cooperation Agreement (Form HUD 52481)

    The PHA must document that the number of units requested, along 
with units in management and other units in development, are covered 
by Cooperation Agreements.

5. PHA Resolution In Support of the Application (Form HUD-52471)

    Under this resolution, the PHA agrees to comply with all 
requirements of 24 CFR part 941 (see also paragraph 6 of this 
Section III.A). By executing the PHA Resolution, the PHA also 
certifies that it will comply with Title II of the Americans with 
Disabilities Act (42 U.S.C. 12131) and the implementing regulations 
at 28 CFR part 35.

6. Front-end Funds

    If front-end funds are being requested, the PHA must so state in 
its cover letter; should the PHA desire the project only if front-
end funds can be approved, the PHA must so state. The Form HUD-52471 
(PHA Resolution) must refer to the request, and include Form HUD-
52472 (Local Governing Body Resolution/Transcript of Proceedings) 
approving the request.

7. Drug-Free Workplace

    The PHA must submit the Certification for a Drug-Free Workplace 
(Form HUD-50070) in accordance with 24 CFR 24.630.

8. Certification for Contracts, Grants, Loans and Cooperative Agreement 
(Form HUD-50071)

    In accordance with section 319 of the Department of Interior and 
Related Agencies Appropriations Act for Fiscal Year 1990 (31 U.S.C. 
1352) (the ``Byrd Amendment'') and the implementing regulations at 
24 CFR part 87, the PHA must certify that no federally appropriated 
funds have been paid or will be paid, by or on behalf of the PHA for 
influencing or attempting to influence an officer or employee of any 
agency, or a member of Congress in connection with the awarding of 
any Federal contract, the making of any Federal grant or loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modifications of any Federal 
contract, grant, loan, or cooperative agreement.

9. Form SF-LLL, Disclosure of Lobbying Activities

    Also in accordance with the Byrd Amendment and the regulations 
at 24 CFR part 87, the PHA must complete and submit Form SF-LLL if 
funds other than federally appropriated funds have been paid or will 
be paid by or on behalf of the PHA for influencing or attempting to 
influence an officer or employee of any agency, or a member of 
Congress in connection with the awarding of any Federal contract, 
the making of any Federal grant or loan, the entering into of any 
cooperative agreement, and the extension, continuation, renewal, 
amendment, or modifications of any Federal contract, grant, loan, or 
cooperative agreement.

10. Disclosure of Government Assistance and Identity of Interested 
Parties (Form HUD 2880)

    The PHA must submit the Applicant/Recipient Disclosure/Update 
Report (Form HUD-2880) in accordance with the requirements of 24 CFR 
part 12, subpart C.

11. Family Self-Sufficiency (FSS)

    Section 23 of the USHA requires PHAs that are awarded new public 
housing units to implement an FSS program. Applicants must certify 
that they will comply with 24 CFR part 962, which requires 
successful applicants to initiate or expand an FSS program for the 
number of families that equals the total number of units they have 
been awarded (unless otherwise excepted).

B. Applications for New Construction

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

C. Replacement Housing Applications

1. Cover Letter

    For both category 1 and category 2 applications, the cover 
letter must state whether the demo/dispo or transfer/sale 
application (to demolish/dispose of units, or to transfer/sell 
units) (hereinafter referred to as the ``underlying application'') 
has been approved; the date of approval; the project number and the 
name of the project being replaced; and whether it is being replaced 
in whole or in part. If the underlying application was not approved 
at the time the replacement housing application is filed, the cover 
letter must state the date the underlying application was submitted 
for consideration. Category 1 or 2 applications will not be funded 
unless the underlying application is approved by the time funding 
selections are made.

2. Section 5(j) Certification

    The PHA must certify that the units requested are specifically 
required in FY 1994 either to meet the one-for-one replacement 
requirement of section 18 of the USHA to replace public housing 
demolition/disposition; or to meet the requirements of section 
304(g) of the USHA to replace existing public housing approved in FY 
1994 or earlier for homeownership transfer under HOPE 1, or for sale 
under section 5(h) of the USHA.

3. Replacement Application Under Section 18

    A PHA submitting a replacement housing application under section 
18 (category 1) must demonstrate that the replacement units, alone 
or together with other identified replacement units:
    a. Will implement the PHA's Replacement Housing Plan submitted 
and approved under 24 CFR 970.11;
    b. Are for no fewer units (or portion thereof approved by HUD) 
than the number of units to be demolished or disposed of; and
    c. Will house at least the same number of individuals and 
families that could be served by the housing to be demolished or 
disposed.

D. Applications for Units to be Funded From Headquarters Reserve

1. Cover Letter

    A PHA submitting a category 3 application shall identify the 
purpose of the application (see Section I.C.1 of this NOFA).

2. Section 5(j) Certification

    The PHA must certify that the units requested are required to 
comply with court orders or directions of the Secretary. Court 
orders must be identified.

E. ``Other'' Applications

    Applicants are encouraged to review the rating criteria (IV.E.) 
to ensure rating factors have been addressed in the application. 
``Curable technical deficiencies'' (Section IV.B. of this NOFA) 
relate only to items that would not improve the substantive quality 
of applications relative to rating factors. A PHA may file only one 
application per locality under this category.

1. Cover Letter

    Applicants for ``other'' public housing development units 
(category 4), must state whether they will accept fewer units than 
applied for. Refusal to accept fewer units may result in an 
application not being selected if funds are not sufficient for the 
full number of units.

2. Section 5(j) Certification

    The PHA must certify to one of the following, pursuant to 
section 5(j) of the USHA (select E.2.a or E.2.b.):
    a. The units requested (limited to 100 or fewer) are needed for 
family housing to satisfy demands not being met by the section 8 
existing or voucher rental assistance programs; or
    b. 85 percent of the PHA's dwelling units (select (1), (2), or 
(3)):
    (1) Are maintained in substantial compliance with the section 8 
housing quality standards (24 CFR 882.109); or
    (2) Will be so maintained upon completion of modernization for 
which funding has been awarded; or
    (3) Will be so maintained upon completion of modernization for 
which applications are pending that have been submitted in good 
faith under section 14 of the USHA (or a comparable State or local 
government program), and that there is a reasonable expectation, as 
determined in writing by HUD, that such application would be 
approvable; or will be so maintained upon completion of 
modernization under the Comprehensive Grant program.

3. Funding Preference in Accordance With Section 6(p)

    Section 6(p) of the USHA requires HUD to provide a funding 
preference for applications in areas with an inadequate supply of 
housing for use by low-income families (i.e., a ``tight'' housing 
rental market). The implementation of this preference shall be in 
accordance with the process described in Section V.A.2 of this NOFA.
    a. The PHA must furnish data relative to rental vacancy rates in 
the market area where the project is proposed. This data should 
include a description of the data sources and methods used to obtain 
survey information. (It is recommended that PHAs consult with local 
community development agencies relative to their housing needs 
before submitting applications under this NOFA, since most of these 
agencies will have participated in the development of a 
Comprehensive Housing Affordability Strategy (CHAS).)
    b. Factors such as the following will provide evidence of 
conditions which, when taken together, will demonstrate a pattern of 
inadequate supply (generally, no one factor, taken alone, is 
conclusive);
    (1) The current rental housing vacancy rate is at a low level 
(typically six percent or lower) which results in housing not being 
available for families seeking rental units (unless the housing 
market area is not growing and, as a result, is experiencing low 
levels of demand);
    (2) The annual production of rental housing units is 
insufficient to meet the demand arising from the increase in 
households, or, where there is little or no growth, is insufficient 
to meet the demand arising from net losses to the available 
inventory;
    (3) The shortage of housing is resulting in rent increases 
exceeding those increases commensurate with rental housing operating 
costs; and
    (4) A significant number or proportion of section 8 certificate/
voucher holders are unable to find adequate housing because of the 
shortage of rental housing, as evidenced by PHA data showing a 
lower-than-average percentage of units under lease and a longer-
than-average time required to find units (typically, less than 85 
percent lease up within 60 days).

4. Documentation To Demonstrate Need

    The PHA must submit documentation, such as waiting list 
description or PHA vacancy rate data, to demonstrate need for the 
proposed public housing, to assist the HUD Field Office in its 
determination of need and market in accordance with Section IV.C.8.b 
of this NOFA.

5. Additional Rating Points

    Category 4 (other) applications may obtain additional rating 
points (see Section IV.E.8 of this NOFA) if the PHA furnishes 
additional data regarding any of the following:
    a. ``Partnerships.'' PHAs are encouraged to form 
``partnerships'' consisting of cooperative or contractual 
arrangements with community-based entities for the purpose of 
developing housing so that the housing fits into the community and 
is seen as an integral part of it. ``Community-based entities'' 
include private non-profit or for-profit entities with experience in 
the development of low and moderate income housing, or that are 
skilled in the delivery of services to families who are residents of 
public housing. ``Cooperative or contractual arrangements'' include 
those that will facilitate development (including management of the 
units) that will enhance the long-term viability of the development; 
and those arrangements that the PHA has for the delivery of services 
(such as child care, education, and economic opportunities) made 
available to residents of public housing. The PHA should indicate 
who the entity (or entities) are, the qualifications of the entity 
and its principals, and the role they play or will play in the 
development, management, or service delivery process which will lead 
to better acceptance of public housing in the community. Such 
cooperative arrangements require substantive involvement by the non-
PHA partner in at least one of the following areas: design, 
management, site selection, representation to the community, or 
service delivery. If the PHA proposes to use public housing 
development funds to pay an entity for its role in the arrangement, 
a justification for sole-source contracting in accordance with 24 
CFR 85.36(d)(4) must be provided for consideration by HUD. With 
respect to the delivery of services, costs for such services are not 
eligible to be paid from public housing development funds. The PHA 
must also certify that its selection of the cooperative entity (or 
entities) was in compliance with State and local law. [Note: If 
State/local procurement requirements cannot be complied with before 
the application deadline date, the PHA may submit a statement with 
its application indicating that it is in the processing of arranging 
such a cooperative relationship and certifying that such a 
relationship will comply with State and local law. In such case, 
within 60 days of the date of publication of this NOFA, the PHA 
must: (1) identify the entity(ies) proposed to be part of the 
cooperative relationship; (2) describe the qualifications of the 
entity(ies) and of its principals, and the role they will play in 
the development, management, or service delivery process that will 
lead to better acceptance of public housing in the community; (3) 
submit a justification for sole source contracting in accordance 
with 24 CFR 85.36(d)(4) (if the PHA proposes to use public housing 
development funds to pay the entity for its role in the cooperative 
arrangement), and a certification that the selection of the 
entity(ies) was in compliance with State and local law.]
    b. Mixed Income Development. In order to encourage the 
development of public housing in metropolitan areas that will be 
less identifiable as public housing, PHAs are encouraged to develop 
units whereby public housing would be mixed with market-rate 
dwellings so that they are indistinguishable. Specifically, in order 
to receive points for this factor, a PHA must propose to acquire 
units in developments where the units require incomes that, on 
average, are at or above 80 percent of median, or to acquire sites 
in developments where the units require incomes that, on average, 
are at or above 80 percent of median.
    c. Past compliance with section 3. The PHA may submit evidence 
that over the past five years it has met any commitments made under 
the provisions of section 3 of the Housing and Urban Development Act 
of 1968 (12 U.S.C., 1701u), as amended from time to time, and the 
implementing regulations for section 3 at 24 CFR part 135. If the 
PHA does not have development experience, it may instead submit 
evidence related to such experience with the modernization program.
    d. Proposed compliance with section 3. The PHA may submit its 
goals for complying with Section 3 employment and training with 
regards to the public housing development application.
    e. Support for local initiatives. If the application proposes a 
project which, as evidenced by a letter from local officials, 
actively supports an area of local initiative such as a Community 
Development Block Grant, urban revitalization, Enterprise Zone, or 
other similar local activity, or includes a commitment for a 
donation to the project in the event it is selected for funding, the 
PHA should describe the activity.
    f. Resident Initiatives. If the PHA is working with residents to 
establish and/or foster resident empowerment activities (such as 
establishing Resident Corporations or Resident Management 
Corporations), the activities should be described.

F. Ineligible Applications

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

IV. Field Office Processing of Applications

A. Submission of Applications

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

B. Initial Screening

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

C. Application Threshold Approvability

    After initial screening and upon expiration of the deficiency 
``cure'' period, complete applications will be examined for 
threshold approvability. Applications that fail one or more of the 
threshold criteria will be rejected from processing and determined 
to be unapprovable. All applications for public housing development 
funds must meet the following thresholds to be determined 
approvable:
    1. The PHA may not have any litigation pending which would 
preclude approval of the application. The PHA must be legally 
eligible to develop, own, and operate public housing under the USHA 
and have:
    a. Approved and current PHA organization documents;
    b. Local cooperation agreements to cover units under management, 
in development, and the units requested (Form HUD 52481), and any 
other required local authority;
    c. A properly executed and complete PHA Resolution (Form HUD 
52471), referring to the need for front-end funding, if requested, 
and a Local Governing Body Resolution (HUD 52472) which approves the 
request for front-end funds, if front-end funds are requested. 
(Note: By executing the PHA Resolution, the PHA certifies that it 
will comply with Title II of the Americans with Disabilities Act (42 
U.S.C. 12131) and the implementing regulation at 28 CFR part 35. The 
PHA Resolution also certifies to the PHA's intent to comply with all 
requirements of 24 CFR part 941. These requirements include: 
Nondiscrimination under the applicable civil rights laws; the 
requirements imposed by the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4601-
4655); the accessibility requirements of section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794) and HUD's implementing 
regulations at 24 CFR part 8; and section 3 of the Housing and Urban 
Development Act of 1968, as amended (12 U.S.C. 1701u), and HUD's 
implementing regulations at 24 CFR part 135.)
    2. The category of application is eligible under this NOFA (see 
Section II.B of this NOFA).
    3. If new construction (conventional or turnkey) has been 
applied for, the PHA has provided a cost comparison or a 
certification with documentation (see Section III.B. of this NOFA), 
and has stated what is to be done with the application if new 
construction is not approvable.
    4. No application shall be determined to be approvable if the 
PHA has failed to return excess advances received during development 
or modernization, or amounts determined by HUD to constitute excess 
financing based on a HUD-approved Actual Development Cost 
Certificate (ADCC) or Actual Modernization Cost Certificate (AMCC), 
unless HUD has approved a pay-back plan.
    5. There are no environmental factors, such as sewer 
moratoriums, precluding development in the requested locality.
    6. The following certifications are included in the application 
and have been executed by the appropriate person(s):
    a. Form HUD-50070, Drug-Free Workplace;
    b. Form HUD-50071, Certification for Contracts, Grants, Loans 
and Cooperative Agreements;
    c. Form SF-LLL, Disclosure of Lobbying Activities, if 
applicable;
    d. Form HUD-2880, Applicant/Recipient Disclosure/Update Report;
    e. FSS certification;
    f. Section 5(j) certification appropriate to the category of 
application.
    7. The PHA must be in compliance with civil rights laws and 
equal opportunity requirements. A PHA will be considered to be in 
compliance if:
    a. As a result of formal administrative proceedings, there are 
no outstanding findings of noncompliance with civil rights laws 
unless the PHA is operating in compliance with a HUD-approved 
compliance agreement designed to correct the areas(s) of 
noncompliance;
    b. There is no adjudication of a civil rights violation in a 
civil action brought against it by a private individual, unless the 
applicant demonstrates that it is operating in compliance with a 
court order designed to correct the area(s) of noncompliance;
    c. There is no deferral of Federal funding based upon civil 
rights violations;
    d. There is no pending civil rights suit brought against the PHA 
by the Department of Justice; or
    e. There is no unresolved charge of discrimination against the 
PHA issued by the Secretary under section 810(g) of the Fair Housing 
Act, as implemented by 24 CFR 103.400.
    8. For ``other'' applications only:
    a. The Field Office must determine that the PHA has or will have 
the capability to develop and manage the proposed housing. The Field 
Office shall determine capability based upon the PHA's overall score 
under the Public Housing Management Assessment Program (PHMAP) (see 
24 CFR part 901), the PHA's most recent fiscal audit, and 
outstanding HUD monitoring findings. A PHA shall not be determined 
to lack administrative or development capability simply because it 
has no recent experience in developing or managing public/assisted 
housing.
    b. The Field Office must determine that there is a need and a 
market for the proposed household type and bedroom sizes, taking 
into consideration the documentation submitted by the PHA on housing 
supply and demonstration of need, any local plans, and other 
assisted housing (e.g., HUD or FmHA) existing and proposed 
(including housing funded but not completed).

D. Threshold Approvable Applications

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

E. ``Other'' Development Applications

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

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


F. Field Office Reports

1. Category 1, 2, and 3 Applications

    Each Field Office shall forward its lists (by category) of fair-
share exempt threshold-approvable applications to Headquarters 
within two weeks of the deficiency ``cure'' period. The lists shall 
include the project number, total number of units and units by 
bedroom size, structure type(s), cost areas, funding required and 
the metropolitan/non-metropolitan designations for each application. 
Category 1 and 2 applications shall also identify the underlying 
project and its current status (e.g., approved (date), under review 
in Field Office, etc.).

2. Category 4

    All Field Office reports to Rating Panels on threshold-
approvable ``other'' applications shall be submitted within four 
weeks of the deficiency ``cure'' period and include the information 
described in F.1., above, the analysis of each application, and 
Field Office recommendations for funding.

V. Rating Panels

A. Rating Panels

1. General

    The Rating Panel(s) shall ensure that all category 4 
applications have been properly determined to be threshold-
approvable. The Rating Panel(s) shall compile data furnished by 
Field Offices for category 4 (other) applications, and rate each 
application based on Field Office analyses, comments, and 
recommendations.
    A list of rated applications shall be forwarded to Headquarters, 
with copies of Field Office reviews and recommendations, and 
justifications for Rating Panel rankings. Headquarters shall not 
modify ratings of category 4 (``other'') applications unless a gross 
error has occurred.
    Examples of ``gross errors'' include, but are not limited to, 
errors in calculating the vacancy rate in the proposed community, or 
assigning points for development/management experience based on a 
PHMAP score that was successfully appealed, or simple errors of 
arithmetic.
    Changes in ratings shall be fully documented, and a copy of the 
memorandum authorizing the change (and the basis thereof) shall be 
sent to the Rating Panel and to the Field Office for inclusion in 
the file and be made available for public inspection. Category 4 
applications shall be approved within Areas, to the extent fair 
share funds are assigned, as follows:

2. ``Tight Market'' Determination

    Headquarters will separate ``other'' applications (category 4) 
on the basis of ``tight rental housing market'' and Rating Panel 
ratings and Headquarters rankings, and approve them (in the 
following order) to the extent fair share funds are assigned to 
their respective Area:
    a. Applications within the same Area in tight rental housing 
markets which receive 80 or more rating points;
    b. All other applications in the same Area, in rank order, 
depending on ``metropolitan'' or ``non-metropolitan'' funding 
available.

B. Reservation of Funds

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

C. Partial Funding

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

VI. Checklist of Application Submission Requirements--All Programs

A. Submission Requirements

    PHAs may use the following application checklist, which 
enumerates the submission requirements of Section III of this NOFA.
    1. Cover letter.
    2. Form HUD 52470, Application for Public Housing Development;
    3. Evidence of legal eligibility (if not previously evidenced) 
with a current General Certificate (HUD 9009);
    4. Evidence that the number of units in management, in 
development, and being requested in this application are covered by 
Cooperation Agreements (HUD 52481) and any other State/local 
requirements have been met;
    5. HUD 52471, PHA Resolution in Support of Public Housing;
    6. HUD 52472, Local Governing Body Resolution, if front-end 
funds are being requested by the PHA. (Note: If front-end funds are 
requested, the HUD 52471 must be appropriately modified. See Section 
III.A.6. of this NOFA);
    7. PHA statement identifying its funding preferences if more 
than one application is being submitted for category 4 (see Section 
II.B of NOFA). (Note, however, that no more than one application per 
locality may be filed under category 4.);
    8. PHA statement whether it will accept fewer ``other'' units 
than applied for (category 4);
    9. HUD 50070, PHA Certification for a Drug-Free Workplace;
    10. HUD-50071, Certification for Contracts, Grants, Loans and 
Cooperative Agreements;
    11. Form SF-LLL, Byrd Amendment Disclosure and Certification 
Regarding Lobbying, only if the applicant determines it is 
applicable;
    12. Form HUD 2880, Disclosure of Government Assistance and 
Identity of Interested Parties;
    13. Section 5(j) certification appropriate to the category of 
application;
    14. Evidence of inadequate housing supply (i.e., a ``tight'' 
rental housing market), for category 4 (``Other'') units;
    15. Evidence (such as waiting list information or PHA vacancy 
rate data) of need and market for the units requested for category 4 
applications;
    16. Section 6(h) cost comparison justification, if new 
construction is requested;
    17. FSS program certification;
    18. Replacement housing exhibits, if applicable (see section 
III.C).
    19. (Optional) For ``other'' applications, documentation to 
address the rating factors (see section IV.E.).

B. Application Packets

    Forms comprising the application package may be obtained from 
the HUD Field Office.

VII. Other Matters

A. Environmental Impact

    A Finding of No Significant Impact with respect to the 
environment has been made in accordance with HUD regulations at 24 
CFR part 50, implementing section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332). The Finding of No 
Significant Impact is available for public inspection and copying 
between 7:30 a.m. and 5:30 p.m. weekdays at the Office of the Rules 
Docket Clerk, 451 Seventh Street, SW., Room 10276, Washington, DC 
20410.

B. Federalism

    The General Counsel, as the Designated Official under section 
6(a) of Executive Order 12612, Federalism, has determined that this 
NOFA will not have substantial, direct effects on States, on their 
political subdivisions, or on their relationship with the Federal 
government, or on the distribution of power and responsibilities 
between them and other levels of government. The NOFA will provide 
PHAs with funding for public housing development.

C. Family Impact

    The General Counsel, as the Designated Official for Executive 
Order 12606, the Family, has determined that the provisions of this 
NOFA do not have the potential for significant impact on family 
formation, maintenance and general well-being within the meaning of 
the Order. To the extent that the funding provided through this NOFA 
results in additional or improved housing, the effects on the family 
will be beneficial.

D. Prohibition Against Lobbying Activities: The Byrd Amendment

    The use of funds awarded under this NOFA is subject to the 
disclosure requirements and prohibitions of section 319 of the 
Department of Interior and Related Agencies Appropriations Act for 
Fiscal Year 1990 (31 U.S.C. 1352) and the implementing regulations 
at 24 CFR part 87. (See Section II of this NOFA.) These authorities 
prohibit recipients of Federal contracts, grants, or loans from 
using appropriated funds for lobbying the Executive or Legislative 
Branches of the Federal Government in connection with a specific 
contract, grant, or loan. The prohibition also covers the awarding 
of contracts, grants, cooperative agreements, or loans unless the 
recipient has made an acceptable certification regarding lobbying. 
Under 24 CFR part 87, applicants, recipients, and sub-recipients of 
assistance exceeding $100,000 must certify that no Federal funds 
have been or will be spent on lobbying activities in connection with 
the assistance.

E. Prohibition Against Lobbying of HUD Personnel

    Section 13 of the Department of Housing and Urban Development 
Act (42 U.S.C. 3537b) contains two provisions dealing with efforts 
to influence HUD's decisions with respect to financial assistance. 
The first imposes disclosure requirements on those who are typically 
involved in these efforts--those who pay others to influence the 
award of assistance or the taking of a management action by the 
Department and those who are paid to provide the influence. The 
second restricts the payment of fees to those who are paid to 
influence the award of HUD assistance, if the fees are tied to the 
number of housing units received or are based on the amount of 
assistance received, or if they are contingent upon the receipt of 
assistance.
    HUD's regulation implementing section 13 is codified at 24 CFR 
part 86. If readers are involved in any efforts to influence the 
Department in these ways, they are urged to read the final rule, 
particularly the examples contained in appendix A of the rule. 
Appendix A of this rule contains examples of activities covered by 
this rule.

F. Section 112 of the HUD Reform Act of 1989

    A final rule published in the Federal Register on September 7, 
1993, amended the definition of ``person'' to exclude from coverage 
a State or local government, or the officer or employee of a State 
or local government or housing finance agency thereof who is engaged 
in the official business of the State or local government.
    Any questions concerning the rule should be directed to the 
Office of Ethics, Room 2158, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410. 
Telephone: (202) 708-3815 (voice/TDD). This is not a toll-free 
number. Forms necessary for compliance with the rule may be obtained 
from the local HUD office.

G. Prohibition Against Advance Disclosure of Funding Decisions

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

H. Accountability in the Provision of HUD Assistance

    HUD's regulations at 24 CFR part 12 implement section 102 of the 
HUD Reform Act. Section 102 contains a number of provisions designed 
to ensure greater accountability and integrity in the provision of 
certain types of assistance administered by HUD. The following 
requirements concerning documentation and public access disclosures 
are applicable to assistance awarded under this NOFA.

1. Documentation and Public Access

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

2. Disclosures

    HUD will make available to the public for five years all 
applicant disclosure reports (HUD Form 2880) submitted in connection 
with this NOFA. Update reports (also Form 2880) will be made 
available along with the applicant disclosure reports, but in no 
case for a period of less than three years. All reports, both 
applicant disclosures and updates, will be made available in 
accordance with the Freedom of Information Act (5 U.S.C. 552) and 
HUD's implementing regulations at 24 CFR part 15. (See 24 CFR 
subpart C, and the notice published in Federal Register on January 
16, 1992 (52 FR 1942), for further information on these disclosure 
requirements.)

Appendix B--FY 1993 an FY 1994 NOFA for Public Housing Development--
MROP Activities

    The applicable provisions of the notice of funding availability 
entitled ``Notice of Funding Availability (NOFA) for FY 1994; 
Invitation for Applications; Public Housing Development--MROP 
Activities'' are published in the Federal Register on May 20, 1994 
(59 FR 26577) is republished for informational purposes. The 
provisions in this NOFA concerning application due date are not 
republished in order not to confuse the reader.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Assistant Secretary for Public and Indian Housing
[Docket No. N-94-3758; FR-3637-N-01]
Notice of Funding Availability (NOFA) for FY 1993 and 1994; Invitation 
for Applications: Public Housing Development--MROP Activities
AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Notice of Funding Availability (NOFA) for Fiscal Year (FY) 
1993 and FY 1994 for Public Housing Development--MROP Activities; 
Invitation for Applications.

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SUMMARY: This NOFA announces the availability of FY 1993 and 1994 
funding, and invites eligible public housing agencies (PHAs) to 
submit development applications for MROP activities. Because the 
number of applications for FY 1993 funding which received perfect 
scores was in excess of available funding (funding of all 
applications receiving a perfect score of 90 would only have 
permitted funding at 40 percent of the amount requested), this NOFA 
withdraws the FY 1993 NOFA published on September 13, 1993 (58 FR 
47940).
    The FY 1993 funding is being combined and re-announced with the 
FY 1994 funding under this Public Housing Development--MROP 
Activities NOFA (MROP Activities NOFA).
    All unfunded MROP activities applications submitted in response 
to the FY 1993 NOFA will be returned to the PHAs for resubmission in 
response to this combined FY 1993 and FY 1994 NOFA. At the option of 
the PHA, an application may be amended and resubmitted, or a new 
MROP activities application may be submitted. No other types of 
applications will be accepted under this NOFA.
    A separate NOFA applicable to the public housing development 
program will be published in the Federal Register.
    This MROP Activities NOFA provides instructions regarding the 
preparation and processing of applications.
    This NOFA is NOT applicable to the Indian housing program.
* * * * *
SUPPLEMENTARY INFORMATION: Paperwork Reduction Act Statement: The 
information collection requirements contained in this NOFA have been 
approved by the OMB under the Paperwork Reduction Act of 1980 and 
have been assigned OMB control numbers 2577-0033, 2577-0036, and 
2577-0044.

I. Introduction

A. Authority

    Section 5 of the United States Housing Act of 1937 (42 U.S.C. 
1437c); and sec. 7(d) of the Department of Housing and Urban 
Development Act (42 U.S.C. 3535(d)). Public housing development 
regulations are published at 24 CFR part 941. The Catalog of Federal 
Domestic Assistance Program number is 14.850.

B. Fund Availability

    In accordance with the FY 1994 HUD Appropriations Act (Pub.L. 
103-124, approved October 28, 1993), the Department is making 
available, through this NOFA, up to $119.2 million of the FY 1994 
public housing development funds for MROP activities consistent with 
section 111 of the Housing and Community Development (HCD) Act of 
1992 (Pub.L. 102-550, approved October 28, 1992). Because some of 
the appropriated funds are to be derived from recapture of prior 
year obligations, a lesser amount may be available under this NOFA, 
unless actual recaptures during the current Fiscal Year return the 
amount to the appropriated level.
    In addition, the $60 million of FY 1993 public housing 
development funds provided in the FY 1993 HUD Appropriations Act 
(Pub.L. 102-389, approved October 6, 1992) for MROP activities 
consistent with section 111 of the HCD Act of 1992, is also being 
made available.3
---------------------------------------------------------------------------

    \3\ As noted in the September 13, 1993 FY 93 MROP Activities 
NOFA, the FY 1993 funds are being made available for MROP activities 
in accordance with the Joint Statement of the Managers in 
Explanation of the Conference Agreement (see H.R. Rep. 103-165, pg. 
31) on the Supplemental Appropriations Act of 1993 (Pub.L. 103-50, 
approved July 2, 1993).
---------------------------------------------------------------------------

    Consistent with section 624 of the HCD Act of 1992, HUD has 
established a set-aside of five percent of the total of up to $179.2 
million (which provides up to $8,950,000 depending on recaptures) 
for MROP Activities for housing designated for disabled families, 
which will be the subject of a separate NOFA to be published by the 
Department.

C. Fund Assignments

    Funding for MROP activities is provided for the reconstruction 
of existing public housing, the extent of which is not predictable 
by formula. Therefore, the funds provided under this NOFA will not 
be fair-shared. This determination was made on the basis of the 
exclusion of funds as incapable of geographic allocation pursuant to 
24 CFR 791.403(b) published in the Federal Register on August 4, 
1993 (58 FR 41426).
    Field Offices will ascertain threshold-approvability and, after 
Joint Review, send the threshold-approvable applications to a review 
selection panel(s) comprised of representatives from various Field 
Offices (hereafter referred to as ``panel(s)'').
    The panel(s) shall rate and rank the threshold-approvable 
applications based on the criteria in Section IV.E. of this NOFA, 
and provide Headquarters with a list, in rank order, reflecting the 
ratings. The Department, in its discretion, may choose to select or 
partially fund a lower-rated application in order to increase 
national geographic diversity, and/or to increase the diversity of 
development types (high-rise buildings of five or more stories and 
those which include only low-rise buildings).

D. Eligibility

    Applications for public housing development--MROP activities 
must be submitted by PHAs eligible for development funding which 
have the required local cooperation and legal authority to develop, 
own and operate public housing projects.
    PHAs eligible under the Comprehensive Improvement Assistance 
Program (CIAP) (CIAP-eligible PHAs) and under the Comprehensive 
Grant Program (CGP) (CGP-eligible PHAs) may apply for these funds. 
CIAP and CGP are hereinafter referred to as ``modernization.'' 
Applications will be determined eligible using the modernization 
procedures outlined in Public Housing Modernization rule 24 CFR part 
968, as amended by the interim rule for Public and Indian Housing, 
Revised Comprehensive Improvement Assistance Program, published on 
March 15, 1993 (58 FR 13916), (as modified by this NOFA).
    Applications must meet the threshold approvability requirements 
in Section IV.B of this NOFA, including the following requirements 
which must be addressed in the PHA's Narrative Statement 
accompanying its application, and will be rated by a panel(s) on the 
Technical Review Factors listed in Section IV.E. of this NOFA.
    1. A project proposed for MROP activities must have long-term 
viability after reconstruction and the annual contributions contract 
(ACC) for the project must remain in effect for 40 years. In 
determining viability, the PHA must have a comprehensive plan 
(funded from other sources such as CIAP, CGP, donations, etc.) for 
the project for which the funds for MROP activities are being 
requested. The comprehensive plan for the project may be part of the 
PHA's comprehensive plan for modernization. The comprehensive plan 
must demonstrate a strategy which will assure that the entire 
development will be viable for a minimum period of 20 years. This 
strategy may include, but not be limited to, an estimate of the 
required amount needed for rehabilitation of the remaining portion 
of the development to the extent any additional rehabilitation is 
required; sources of funding for the additional work; any proposed 
demolition/disposition that may be planned; and written evidence of 
local government and resident support for the strategy.
    2. A proposed MROP activities project must be a rental (not 
homeownership) project.
    3. An ``obsolete project or building'' is one that has design or 
marketability problems that have resulted in:
    a. Current vacancies of more than 25 percent of the units 
available for occupancy; or
    b. (1) Estimated costs of the project (including any costs for 
lead-based paint abatement activities) that exceed 70 percent of the 
total current development cost limits for new construction of 
similar units in the area; and
    (2) The project or building has:
    (a) An occupancy density or a building height that is 
significantly in excess of that which prevails in the neighborhood; 
or
    (b) A bedroom configuration that could be altered to better 
serve the needs of families seeking occupancy to public housing; or
    (c) Significant security problems in and around the project; or
    (d) Significant physical deterioration or inefficient energy and 
utility systems.
    4. The deficiencies must be determined correctable under the CGP 
or the CIAP procedures (see 24 CFR part 968 and related issuances), 
to ensure long-term viability (a useful life with full occupancy) of 
more than 20 years after completion of reconstruction; the ACC for 
the project must remain in effect for 40 years.
    5. Existing projects which consist of more than one building may 
have MROP activities funding in any single year limited to one or 
more (less than all) of a project's buildings. Where separate 
portions of an existing project receive MROP funding in different 
fiscal years, each portion must be given a separate MROP project 
number and the funds reserved must be sufficient to complete all of 
the reconstruction needed to make the portion viable; in such cases, 
the funds for each MROP project must be kept separate and may not be 
commingled.
    6. A combination of MROP activities and modernization funds may 
be used within a project, but may not be used within the same units 
(or buildings, as applicable). For example, if an existing project 
consists of low-rise, row, and elevator buildings, an MROP 
activities project could be approved to include all or some of the 
row units, with the balance of units included in a modernization 
project. MROP funds may, however, be used in conjunction with Urban 
Revitalization Demonstration funds (HOPE VI) without limitation.
    7. Management improvements are an eligible cost under MROP 
activities to the extent that such improvements are necessary for 
the viability of the project (i.e., to maintain the physical 
improvements resulting from the proposed redesign, reconstruction, 
or redevelopment MROP activities).

E. Restrictions

    1. If partial demolition/disposition is required:
    a. A demolition/disposition application must have been approved 
before the MROP activities application may be approved; or
    b. The application must have been submitted along with evidence 
of approval by the unit of general local government in which the 
project is located. This approval may be obtained from the Chief 
Executive Officer.
    2. Conversion of units (by combining small units to make larger 
units or vice versa) must either be approved before an MROP 
activities application involving conversion may be approved, or an 
application for said conversion must have been submitted, and the 
cost of any conversion must be considered in the MROP activities 
application.
    3. Funding provided for MROP activities at a project may not be 
used for total demolition/disposition of that project, but may be 
used for partial demolition/disposition if required to meet long-
term viability; however, 75 percent of the units in the project or 
portion of the project which comprises the MROP application must be 
reconstructed.\2\

II. Application Process Overview

A. PHA Application

    A PHA applying for development funds for MROP activities shall 
prepare a CIAP application, as modified by this NOFA. The initial 
review process shall follow the CIAP procedures; however, once 
selected, the application shall be processed under public housing 
development procedures.

B. Application Processing

    The Field Office will screen each application for completeness 
and will provide the PHA with a 14 calendar-day opportunity to 
furnish any missing technical information or exhibits, or to correct 
technical mistakes. Each application will then be subjected to a 
``pass/fail'' threshold examination by the Field Office. Each 
passing application will be rated as to the Technical Review Factors 
listed in Section IV.E. of this NOFA by a panel(s).

C. Application Approval

    Panels comprised of representatives from various Field Offices 
will prepare rankings based on the panels' ratings and Headquarters 
will select applications for approval to the extent funds are 
available.

D. Disclosure of Information

    The Department of Housing and Urban Development Reform Act of 
1989 (HUD Reform Act) prohibits advance disclosure of funding 
decisions. (See 24 CFR part 4.) Civil penalties related to advance 
disclosure are set out in 24 CFR part 30. Application approval/non-
approval notifications shall not occur until the Congressional 
notification process is completed. (See Section VIII.F of this NOFA 
for more detailed information.)

E. Records Retention

    Applications and materials related to applications (e.g., 
application scoring sheets, and notifications of selection/non-
selection) will be retained in the appropriate Field Office for five 
years, and be available for public inspection in accordance with 24 
CFR part 12. (See Section VIII.G of this NOFA for more detailed 
information.)

III. Application Requirements

A. All Applicants

    No more than one project (or portion of a project) may be 
proposed for MROP activities per application, although more than one 
application may be submitted by a PHA. Each application shall 
consist of an original and two copies, and must include the 
following:
    1. Cover letter. The cover letter must identify the project 
proposed for MROP activities by its original project number (e.g., 
WY 22-2), and its total number of units (and buildings, if 
applicable). If fewer than the total number of units are being 
proposed, the cover letter shall summarize the PHA's plans for the 
remaining units. If more than one application is submitted, the 
cover letter must state the PHA's priorities for funding. The PHA 
must include a statement of whether the PHA will accept funding for 
the reconstruction of fewer units.
    2. CIAP Application and Budget--Forms HUD 52822 and 52825. The 
application and budget forms must each be signed and dated and 
include the information as specified in the forms. No more than one 
original project number shall be included in each application 
submission.
    3. Narrative Statement. The narrative statement must address 
each of the technical review factors under Section IV.E. of this 
NOFA, each of the eligibility criteria under Section I.D. of this 
NOFA and each of the restriction criteria under Section I.E. of this 
NOFA.
    4. Demolition/Disposition or Conversion of Units. If, as part of 
the MROP activities, the PHA intends to demolish/dispose (demo/
dispo) of some of the units or to convert units (combine small units 
to make larger ones, or vice versa), the PHA shall provide the date 
the demo/dispo or conversion was approved by HUD or the date the 
demo/dispo or conversion application was submitted. If the demo/
dispo application has not yet been approved, the application for 
MROP activities that involves the demo/dispo of units must be 
accompanied by evidence of approval by the unit of general local 
government in which the project is located (it can be provided by 
the Chief Executive Officer). Development funds for MROP activities 
may not be used for total demo/dispo (see Section I.E.3. of this 
NOFA).
    5. PHA Resolution In Support of the Application (Form HUD-
52471). Under this resolution, the PHA agrees to comply with all 
requirements of 24 CFR part 941. These requirements include, among 
others: nondiscrimination under the applicable civil rights laws; 
the requirements imposed by the Uniform Relocation Assistance and 
Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 
4601-4655); the accessibility requirements of section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794), and HUD's implementing 
regulations at 24 CFR part 8; and section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u), and HUD's implementing 
regulations at 24 CFR part 135. By executing the PHA resolution, the 
PHA also certifies that it will comply with the accessibility 
requirements of the Americans with Disabilities Act of 1990 (42 
U.S.C. 12131), and its implementing regulation at 28 CFR part 35.
    6. Local Governing Body Resolution (Form HUD-52472). If front-
end funds are requested, the PHA must submit a Local Governing Body 
Resolution/ Transcript of Proceedings (Form HUD-52472).
    7. Drug-Free Workplace. The PHA must submit the Certification 
for a Drug-Free Workplace (Form HUD-50070) in accordance with 24 CFR 
24.630.
    8. Certification for Contracts, Grants, Loans and Cooperative 
Agreements (Form HUD-50071). In accordance with section 319 of the 
Department of Interior and Related Agencies Appropriations Act for 
Fiscal Year 1990 (31 U.S.C. 1352) (the ``Byrd Amendment'') and the 
regulations at 24 CFR part 87, the PHA must certify that no 
federally appropriated funds have been paid or will be paid, by or 
on behalf of the PHA for influencing or attempting to influence an 
officer or employee of any agency, or a member of Congress in 
connection with the awarding of any Federal contract, the making of 
any Federal grant or loan, the entering into of any cooperative 
agreement, and the extension, continuation, renewal, amendment, or 
modifications of any Federal contract, grant, loan, or cooperative 
agreement. (See also Section VIII.D of this NOFA.)
    9. Form SF-LLL, Disclosure of Lobbying Activities. Also, in 
accordance with the Byrd Amendment and the regulations at 24 CFR 
part 87, the PHA must complete and submit Form SF-LLL if funds other 
than federally appropriated funds have been paid or will be paid by 
or on behalf of the PHA for influencing or attempting to influence 
an officer or employee of any agency, or a member of Congress in 
connection with the awarding of any Federal contract, the making of 
any Federal grant or loan, the entering into of any cooperative 
agreement, and the extension, continuation, renewal, amendment, or 
modifications of any Federal contract, grant, loan, or cooperative 
agreement. (See also Section VIII.D of this NOFA.)
    10. Disclosure of Government Assistance and Identity of 
Interested Parties (Form HUD 2880). The PHA must submit the 
Applicant/Recipient Disclosure/Update Report (Form HUD-2880) in 
accordance with the requirements of 24 CFR part 12, subpart C.

IV. Field Office Processing of Applications

A. Initial Screening

    1. Immediately after the deadline for receipt of applications, 
the Field Office will screen each application to determine whether 
all information and exhibits have been submitted; no qualitative 
evaluation will be made at this time.
    a. If an application lacks any technical information or exhibit, 
or contains a technical mistake, the PHA will be advised in writing 
and will have 14 calendar days from the date of the issuance of 
HUD's notification to deliver the missing or corrected information 
or documentation to the Field Office. For example, the PHA Narrative 
Statement must address each of the technical review factors under 
Section IV.E., the eligibility criteria under Section I.D. and the 
restriction criteria under Section I.E. of this NOFA.
    b. Curable technical deficiencies relate only to items that 
would not improve the substantive quality of the application, 
relative to the ranking factors.
    c. If Forms HUD 52822 (Application) or HUD 52825 (Budget) are 
missing, the PHA's application will be considered substantively 
incomplete, and therefore ineligible for further processing. 
However, if other forms [for example, Form HUD 50070 (Drug Free 
Workplace Certification), Form HUD 50071 (Certification for 
Contracts, Grants, Loans and Cooperative Agreements), Form SF LLL 
(Disclosure of Lobbying Activities), if applicable, or Form HUD 2880 
(Application/ Recipient Disclosure/Update Report)] are missing, or 
if there is a technical mistake, such as no signature or the wrong 
signature on a submitted form, the PHA will be given an opportunity 
to correct the deficiency.
    2. The responsibility for submitting a complete application 
rests with the PHA. Failure of the Field Office to identify and 
provide a notice of deficiency to the PHA shall not relieve the PHA 
of the consequences of submitting an incomplete application.
    3. An application that does not meet all of the NOFA 
requirements after the 14-day technical deficiency period will be 
removed from processing and determined to be unapprovable. If the 
PHA fails to correct deficiencies or fails to submit missing forms 
or certifications, or any certification is incomplete or not 
executed by the appropriate person(s), or the PHA Narrative 
Statement fails to address each of the Section IV.E. technical 
review factors, and each of the Section I.D. eligibility criteria 
and the Section I.E. restriction criteria, the application will not 
be examined for threshold approvability.

B. Application Threshold Approvability

    After initial screening and upon expiration of the deficiency 
``cure'' period, applications for which all the information, 
certifications, and documentation required by the NOFA have been 
received by HUD will be examined for threshold approvability. 
Applications that fail one or more of the threshold criteria will be 
removed from processing and determined to be unapprovable. 
Applications which successfully pass the threshold review 
(threshold-approvable applications) will, following Joint Review, be 
submitted by the Field Office to a panel(s) which will rate 
applications, using the criteria set out in Section IV.E. of this 
NOFA. All applications must meet the following thresholds to be 
determined threshold-approvable:
    1. The MROP activities application must meet the eligibility 
criteria of Section I.D. and the restriction criteria of Section 
I.E.
    2. The PHA may not have any litigation pending which would 
preclude approval of the application. The PHA must have the required 
local cooperation and be legally eligible to develop, own, and 
operate public housing under the U.S. Housing Act of 1937 and the 
application must have a properly executed and complete PHA 
Resolution (Form HUD 52471) referring to the need for front-end 
funding, if requested, and a Local Governing Body Resolution (HUD 
52472) which approves the request for front-end funds, if front-end 
funds are requested. (NOTE: The PHA Resolution certifies to the 
PHA's intent to comply with all requirements imposed by the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970 (URA) (42 U.S.C. 4601-4655); the accessibility requirements of 
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and 
HUD's implementing regulations at 24 CFR part 8; and section 3 of 
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and 
HUD's implementing regulations at 24 CFR part 135. By executing the 
PHA resolution, the PHA also certifies that it will comply with the 
accessibility requirements of the Americans with Disabilities Act of 
1990 (42 U.S.C. 12131), and its implementing regulation at 28 CFR 
part 35.)
    3. The Field Office must determine that the PHA has or will have 
the capability (as defined by Section IV.E.(1)(c)) to complete the 
MROP reconstruction activities and manage the resulting housing. The 
Field Office shall determine capability based upon the PHA's overall 
performance, which includes the PHA's total score under the Public 
Housing Management Assessment Program (PHMAP) (see 24 CFR part 901), 
and the PHA's most recent fiscal audit.
    a. A PHA shall not be determined to lack administrative or 
development capability simply because it has no recent experience in 
developing or managing public/assisted housing.
    b. No application shall be determined to be approvable if the 
PHA has failed to return excess advances received during development 
or modernization, or amounts determined by HUD to constitute excess 
financing based on a HUD-approved Actual Development Cost 
Certificate (ADCC) or Actual Modernization Cost Certificate (AMCC), 
unless HUD has approved a pay-back plan.
    4. There are no environmental factors precluding the MROP 
activities.
    5. The PHA must be in compliance with civil rights laws and 
equal opportunity requirements. A PHA will be considered to be in 
compliance if (1) as a result of formal administrative proceedings, 
there are no outstanding findings of noncompliance with civil rights 
laws unless the PHA is operating in compliance with a HUD-approved 
compliance agreement designed to correct the area(s) of 
noncompliance; (2) there is no adjudication of a civil rights 
violation in a civil action brought against it by a private 
individual, unless the applicant demonstrates that it is operating 
in compliance with a court order designed to correct the area(s) of 
noncompliance; (3) there is no deferral of Federal funding based 
upon civil rights violations; (4) there is no pending civil rights 
suit brought against the PHA by the Department of Justice; or (5) 
there is no unresolved charge of discrimination against the PHA 
issued by the Secretary under section 810(g) of the Fair Housing 
Act, as implemented by 24 CFR 103.400.

C. Joint Review

    In accordance with the designation of projects requiring Joint 
Reviews, the Field Office will conduct a (either on-site or off-
site) Joint Review for each threshold-approvable MROP activities 
application as early as possible pursuant to the interim rule for 
the revised CIAP program, published on March 15, 1993 (58 FR 13916). 
The purpose of the Joint Review is to allow the Field Office to more 
thoroughly understand the goals of the proposed MROP so it can 
prepare written comments summarizing the results of the Joint 
Review; in contrast to the CIAP procedures, the PHA's MROP 
application shall not be modified as a result of the Joint Review in 
any way.

D. Field Submissions

    For each threshold-approvable application, the following must be 
prepared and submitted by the Field Office to the panel(s):
    1. Copy of each application, narrative description of the number 
of units and units by bedroom size, structure type(s), cost area, 
funding required, metro/non-metro designation, results of the 
eligibility determinations made under Section I.D. of this NOFA and 
the restriction determinations under Section I.E. of this NOFA, as 
well as the results of the Joint Review pursuant to Section IV.C. of 
this NOFA; and
    2. Review sheet summarizing critical information about the 
project, including a brief description of proposed MROP activities 
and their proposed cost including any management improvements and a 
statement of the determination made as to the extent such 
improvements are necessary to maintain the physical improvements 
resulting from the proposed MROP activities, the applicable total 
development cost limitation, a discussion of the relationship and 
approval date of any demolition/disposition or conversion, and the 
feasibility of MROP activities compared to demolition/disposition.

E. Panel Review Criteria

    The panel(s) will review and rate each application on the basis 
of the following Technical Review Factors; the panel(s) may request 
information from the Field Office, or make site visits, as needed:

----------------------------------------------------------------------------------------------------------------
                            MROP Activities Panel Technical Review Factors                               Points 
----------------------------------------------------------------------------------------------------------------
(1) PHA's management capability to carry out the proposed MROP activities: (Maximum of 30 points)               
    (a) PHMAP Overall Rating 60-100 and..............................................................         15
    (b) PHMAP (# 12) Development & (# 1) Modernization Scores A-B Average or.........................         15
    (c) PHMAP Overall Rating < 60, but contingent contract is included meeting procurement                      
     requirements with qualified entity to act as project administrator on PHA's behalf..............         30
(2) The expected term of useful life of the project or building after completion of MROP activities:            
 (Maximum of 30 points)                                                                                         
    (a) The plan/strategy is comprehensive and demonstrates that the rehabilitation will result in a            
     useful life of at least 20 years; e.g., management deficiencies are addressed; all physical                
     deficiencies are addressed; local and resident support are integrated throughout the project               
     improvement effort..............................................................................       1-10
    (b) Degree of Resident Involvement and degree of PHA activity in resident initiatives, including            
     resident management, economic development, and drug elimination efforts.........................        1-5
    (c) Degree of local government and private sector involvement and support........................        1-5
    (d) Evidence of satisfactory maintenance of other developments in the PHA's inventory............       1-10
(3) The likelihood of achieving full occupancy of the reconstructed units comprising the project or             
 building after completion of MROP activities: (Maximum of 40)                                                  
    (a) Need--The PHA's needs for CIAP/CGP/URD are so great that there is little or no likelihood               
     this project, which has demonstrated need, will be modernized in the foreseeable future without            
     MROP funds......................................................................................       1-30
    (b) Adequate occupancy systems/procedures are in place or will be in place to achieve full                  
     occupancy once modernized.......................................................................       1-10
                                                                                                      ----------
      MROP Activities Panel Total Possible Points....................................................        100
----------------------------------------------------------------------------------------------------------------

V. MROP Activities Funding and Further Processing

    A. Each MROP activities application selected for funding by 
Headquarters shall:
    1. Have funds reserved in an amount of at least 70 percent of 
the development cost limitation for the area and:
    a. The reservation amount will be ``trended'' to preclude the 
need for amendment funds;
    b. The trend will be calculated by multiplying the percent of 
development cost by 5.4 percent (1.054), rounded to the nearest $50;
    2. Be assigned a development project number and entered into the 
appropriate HUD data systems; and
    3. During and after fund reservation, development procedures 
shall be followed (24 CFR part 941 and Handbook 7417.1 REV-1) 
except:
    a. MROP activities work may only be accomplished by:
    (1) Sealed bid procurement method with award to the lowest 
responsible bidder; or
    (2) Competitive proposal method as permitted for modernization 
projects under Notice PIH 93-50 (HA), whereby the PHA would execute 
a fixed price contract in which the contractor would be responsible 
for design of specific work items identified in the Request for 
Proposals, soliciting and contracting for construction work, 
contract administration and construction inspection; the contract 
could either provide for progress payments, as in the sealed bid 
method, or a lump sum payment after successful completion of all 
work;
    b. CIAP modernization standards set forth in Handbook 7485.2 
REV-1 must be used;
    c. The PHA must incorporate its approved MROP activities 
application into a PHA Proposal (Form HUD-52483A);
    d. The special MROP Annual Contributions Contract (Form HUD-
53010-I), included in Notice PIH 89-41(HUD), must be used;
    e. There will be no amendment funds to increase the original 
amount of the MROP activities fund reservation.

VI. Checklist of Application Submission Requirements

A. Application Checklist

    PHAs may use the following application checklist, which 
enumerates the submission requirements of Section III of this NOFA.
    1. Forms HUD-52822 and HUD-52825, CIAP Application and CIAP 
Budget;
    2. Narrative statement addressing each of the eligibility 
criteria under Section I.D. of this NOFA, each of the restriction 
criteria under Section I.E. of this NOFA, and each of the Technical 
Review Factors under Section IV.E. of this NOFA;
    3. Information/certification, as applicable, if the application 
involves demo/dispo or conversion of units;
    4. HUD-52471, PHA Resolution in Support of Public Housing;
    5. HUD-52472, Local Governing Body Resolution, if front-end 
funds are being requested by the PHA. [Note: If front-end funds are 
requested, the HUD 52471 must be appropriately modified.];
    6. PHA statement identifying its funding preferences if more 
than one application is being submitted;
    7. HUD-50070, PHA Certification for a Drug-Free Workplace;
    8. HUD-50071, Certification for Contracts, Grants, Loans and 
Cooperative Agreements;
    9. Form SF-LLL, Byrd Amendment Disclosure and Certification 
Regarding Lobbying, only if the applicant determines it is 
applicable;
    10. Form HUD-2880, Disclosure of Government Assistance and 
Identity of Interested Parties.

B. Application Packets

    Forms comprising the application package may be obtained from 
the HUD Field Office.

VII. Other Matters

A. Environmental Impact

    A Finding of No Significant Impact with respect to the 
environment has been made in accordance with HUD regulations at 24 
CFR part 50, implementing section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332). The Finding of No 
Significant Impact is available for public inspection and copying 
between 7:30 a.m. and 5:30 p.m. weekdays at the Office of the Rules 
Docket Clerk, 451 Seventh Street, S.W., Room 10276, Washington, D.C. 
20410.

B. Federalism

    The General Counsel, as the Designated Official under section 
6(a) of Executive Order 12612, Federalism, has determined that this 
NOFA will not have substantial, direct effects on States, on their 
political subdivisions, or on their relationship with the Federal 
government, or on the distribution of power and responsibilities 
between them and other levels of government. The NOFA will provide 
PHAs with funding for public housing development MROP activities.

C. Family Impact

    The General Counsel, as the Designated Official for Executive 
Order 12606, the Family, has determined that the provisions of this 
NOFA do not have the potential for significant impact on family 
formation, maintenance and general well-being within the meaning of 
the Order. To the extent that the funding provided through this NOFA 
results in additional or improved housing, the effects on the family 
will be beneficial.

D. Prohibition Against Lobbying Activities: The Byrd Amendment

    The use of funds awarded under this NOFA is subject to the 
disclosure requirements and prohibitions of section 319 of the 
Department of Interior and Related Agencies Appropriations Act for 
Fiscal Year 1990 (31 U.S.C. 1352) and the implementing regulations 
at 24 CFR part 87. 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. A certification is required, at the time the 
application for funds is made, that Federally appropriated funds are 
not being or have not been used in violation of section 319 and that 
disclosure will be made of payments for lobbying with other than 
Federally appropriated funds. Also, there is a standard disclosure 
form, SF-LLL, ``Disclosure Form to Report Lobbying,'' which must be 
used to disclose lobbying with other than Federally appropriated 
funds.

E. Prohibition Against Lobbying of HUD Personnel

    Section 13 of the Department of Housing and Urban Development 
Act (42 U.S.C. 3537b) contains two provisions dealing with efforts 
to influence HUD's decisions with respect to financial assistance. 
The first imposes disclosure requirements on those who are typically 
involved in these efforts--those who pay others to influence the 
award of assistance or the taking of a management action by the 
Department and those who are paid to provide the influence. The 
second restricts the payment of fees to those who are paid to 
influence the award of HUD assistance, if the fees are tied to the 
number of housing units received or are based on the amount of 
assistance received, or if they are contingent upon the receipt of 
assistance.
    HUD's regulation implementing section 13 is codified at 24 CFR 
part 86. If readers are involved in any efforts to influence the 
Department in these ways, they are urged to read the final rule, 
particularly the examples contained in Appendix A of the rule. 
Appendix A of this rule contains examples of activities covered by 
this rule.
    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.

F. 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. That regulation applies to the funding competition 
announced today. The requirements of the rule continue to apply 
until the announcement of the selection of successful applicants.
    HUD employees involved in the review of applications and in the 
making of funding decisions are restrained by 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.) 
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.

G. Accountability in the Provision of HUD Assistance

    HUD's regulations at 24 CFR part 12 implement section 102 of the 
HUD Reform Act. Section 102 contains a number of provisions designed 
to ensure greater accountability and integrity in the provision of 
certain types of assistance administered by HUD. The following 
requirements concerning documentation and public access disclosures 
are applicable to assistance awarded under this NOFA.
    1. Documentation and public access. HUD will ensure that 
documentation and other information regarding each application 
submitted pursuant to this NOFA are sufficient to indicate the basis 
upon which assistance was provided or denied. This material, 
including any letters of support, will be made available for public 
inspection for a five-year period beginning not less than 30 days 
after the award of the assistance. Material will be made available 
in accordance with the Freedom of Information Act (5 U.S.C. 552) and 
HUD's implementing regulations at 24 CFR part 15. In addition, HUD 
will include the recipients of assistance pursuant to this NOFA in 
its quarterly Federal Register notice of all recipients of HUD 
assistance awarded on a competitive basis. (See 24 CFR 12.14(a) and 
12.16(b), and the notice published in the Federal Register on 
January 16, 1992 (57 FR 1942), for further information on these 
requirements.)
    2. Disclosures. HUD will make available to the public for five 
years all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this NOFA. Update reports (also Form 2880) will be 
made available along with the applicant disclosure reports, but in 
no case for a period of less than three years. All reports--both 
applicant disclosures and updates--will be made available in 
accordance with the Freedom of Information Act (5 U.S.C. 552) and 
HUD's implementing regulations at 24 CFR part 15. (See 24 CFR part 
12, subpart C, and the notice published in the Federal Register on 
January 16, 1992 (57 FR 1942), for further information on these 
disclosure requirements.)
[FR Doc. 94-30569 Filed 12-12-94; 8:45 am]
BILLING CODE 4210-33-P