[Federal Register Volume 60, Number 19 (Monday, January 30, 1995)]
[Notices]
[Pages 5806-5810]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2149]


[[Page 5805]] 

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Part IV





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner



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Notice of Funding Availability (NOFA) for Fiscal Year 1995, Section 8 
Community Investment Demonstration Program; Notice

  Federal Register / Vol. 60, No. 19 / Monday, January 30, 1995 / 
Notices   
[[Page 5806]] 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner [Docket No. N-95-3863; FR-3829-N-01]


Notice of Funding Availability (NOFA) for Fiscal Year 1995, 
Section 8 Community Investment Demonstration Program

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

ACTION: Notice of funding availability (NOFA) for Fiscal Year (FY) 
1995.

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SUMMARY: This NOFA announces the availability of up to $251,168,250 of 
FY 1995 section 8 budget authority for a national competition to be 
administered by the Department of Housing and Urban Development 
pursuant to section 6 of the HUD Demonstration Act of 1993. That 
section directs the Secretary to carry out ``a demonstration program to 
attract pension fund investment in affordable housing through the use 
of project-based rental assistance under section 8 of the United States 
Housing Act of 1937.'' This NOFA invites pension funds (public or 
private) or their affiliates, as defined in Section I(c) of this NOFA, 
to submit applications to participate in this new demonstration 
program.
    Under the Section 8 Community Investment Demonstration Program, 
selected pension funds will provide permanent financing for the newly 
constructed or substantially rehabilitated affordable multifamily 
rental housing to be occupied by low income families. Each selected 
pension fund will receive a set-aside of Section 8 budget authority to 
be used as rental assistance payments. This project-based rental 
assistance will supplement rents paid by the low income occupants of 
the dwelling units in the project. No more than 50 percent of the units 
in any project (except properties owned by HUD or properties with 
mortgages held by HUD) may be assisted; however, HUD may provide 
exceptions to this rule for limited special circumstances such as 
meeting the needs of the homeless, disabled or displaced. In the case 
of HUD-owned properties, the number of units required to be assisted 
will be determined in the disposition plan in accordance with statutory 
requirements. The pension fund will provide assistance from its set-
aside for one-half the number of units to be assisted as determined in 
the disposition plan; HUD will provide the other one-half from its 
property disposition set-aside.
    Participating pension funds will select properties they wish to 
permanently finance and will submit project-specific proposals to HUD 
for approval. If the project-specific proposal is approved by HUD, a 
portion of the pension fund's Section 8 set-aside will be reserved for 
the project. After completion of construction or rehabilitation, 
pursuant to an agreement between HUD and the project owner, a Housing 
Assistance Payments Contract (Contract) will be executed between the 
owner and HUD. Under this Contract, the owner will be responsible for 
all management and operation of the project, including determining 
eligibility of and leasing to low-income families.
    This NOFA contains information for applicants regarding the 
allocation of section 8 budget authority; the application process, 
including the application requirements and the deadline for filing 
applications; pension fund selection criteria; and the criteria for 
selecting specific projects to be financed and assisted.
    Detailed instructions and guidelines for implementing this 
demonstration are contained in HUD Notice 95-2. Prospective applicants 
should request a copy of this Notice from the HUD program office 
referred to below before submitting an application to participate in 
the demonstration.

DATES: Applications must be received no later than 5:00 pm EST on March 
16, 1995. The above-stated application deadline is firm as to date, 
hour and place, unless HUD extends the deadline by an appropriate 
notice in the Federal Register. In the interest of fairness to all 
competing applicants, the Department will treat as ineligible for 
consideration any application that is received after the deadline. 
Applicants should take this practice into account and make early 
submission of their materials to avoid any risk of loss of eligibility 
brought about by unanticipated delays or other delivery-related 
problems.

ADDRESSES: The HUD headquarters is the official place of receipt of all 
applications. The address is Department of Housing and Urban 
Development, Office of Insured Multifamily Housing Development, Room 
6134, 451 Seventh Street, SW, Washington, DC 20410-8000. Each 
submission should be clearly identified on the exterior as a ``Section 
8 Community Investment Demonstration Program Application.''

FOR FURTHER INFORMATION CONTACT: Joseph E. Malloy, Office of Insured 
Multifamily Housing Development, Room 6134, telephone (202) 708-3000, 
or Richard L. Schmitz, Policies and Procedures Division, Room 6138, 
telephone (202) 708-1113, at the address indicated above. The 
telecommunications device for the deaf (TDD) telephone number is (202) 
708-4594. (These are not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

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

(I) Purpose and Substantive Description

(A) Background

    Section 6 of the HUD Demonstration Act of 1993 (Pub. L. 103-120, 
107 Stat. 1144, approved October 27, 1993) directs the Secretary of HUD 
to carry out a demonstration program to attract pension fund investment 
in affordable housing through the use of project-based rental 
assistance under section 8 of the United States Housing Act of 1937. In 
carrying out this demonstration program the Secretary must ensure that 
not less than 50 percent of the funds appropriated for each year are 
used in conjunction with the disposition of either: (1) Multifamily 
properties owned by the Department; or (2) multifamily properties 
securing mortgages held by the Department.
    In FY 1994, an appropriation of $100 million was authorized and 
provided to carry out this demonstration program. On April 26, 1994 (59 
FR 21826), HUD announced the availability of $100 million in FY 1994 
section 8 budget authority for a national competition to be 
administered by the Department of Housing and Urban Development 
pursuant to Section 6 of the HUD Demonstration Act of 1993 (the Act). 
Six pension funds were selected to participate in this demonstration in 
response to the April 1994 NOFA. The full $100 million in budget 
authority was set aside for use in connection with the new construction 
or substantial rehabilitation of affordable multifamily rental housing 
to be developed under this demonstration.
    Approximately $334,891,000 has been authorized and provided for FY 
1995. This NOFA announces the availability of up to $251,168,250 of FY 
1995 budget authority. A separate NOFA, announcing the availability of 
the remaining budget authority, will be [[Page 5807]] published in the 
Federal Register at a later date.
    Project-based Section 8 assistance under the program will be 
provided pursuant to a contract entered into by the Secretary and the 
owner of the eligible housing that: (1) Provides assistance for a term 
which, taking into account the financing and other factors relating to 
the specific project proposal, is not less than 60 and not greater than 
180 months; and (2) provides for contract rents to be determined by the 
Secretary.
    The Section 8 Fair Market Rent Schedule for this demonstration is 
120 percent of the Existing Housing Fair Market Rent Schedule most 
recently published in the Federal Register. Initial gross rents 
(contract rents plus allowance for tenant paid utilities) for any new 
construction project, and any substantial rehabilitation project with 
per unit rehabilitation costs of $5000 or more, may not exceed the Fair 
Market Rents applicable to this demonstration. Initial gross rents for 
any substantial rehabilitation project with per unit rehabilitation 
costs of less than $5000 may not exceed 100 percent of the published 
Existing Housing Fair Market Rent Schedule.
    Contract rents also must be reasonable on the basis of comparison 
with rents for unsubsidized units of similar age, design and location 
which include comparable amenities and services.
    HUD's single and multifamily mortgage insurance programs, the risk 
sharing programs under Section 542 of the Housing and Community 
Development Act of 1992, and Veterans Administration and Farmers Home 
Administration loan and loan guarantee programs are not available for 
housing developed or assisted under this demonstration program. A 
pension fund must provide permanent financing for projects for which 
project-specific proposals are submitted to HUD or for which assistance 
is provided under this demonstration; however, the pension fund may not 
have an ownership interest in such projects. The Secretary may 
establish such other standards regarding financing and securitization 
of project mortgages as the Secretary deems appropriate.
    Finally, the Department has determined that section 3 of the 
Housing and Urban Development Act of 1968 and the regulations at 24 CFR 
part 135 (see June 30, 1994 Interim Rule, 59 FR 33866) are applicable 
to funding awards made under this NOFA. The purpose of section 3 is to 
ensure the training and employment of residents and business concerns 
for economic opportunities generated by certain HUD financial 
assistance shall, to the greatest extent feasible, and consistent with 
existing Federal, State and local laws and regulations, be directed to 
low- and very-low-income persons, particularly those who are recipients 
of government assistance for housing, and to business concerns which 
provide economic opportunities to low- and very-low-income persons.

(B) Allocation Amounts and Number of Units To Be Assisted

    From the amounts of Section 8 assistance made available in VA, HUD-
Independent Agencies Appropriations Act for FY 1995 (Pub. L. 103-327, 
108 Stat. 2299, approved September 28, 1994) the Department has set 
aside approximately $334,891,000 in budget authority for this 
demonstration program, of which up to $251,168,250 is being made 
available through this NOFA. The number and type of units that can be 
assisted will depend upon the level of gross rents (i.e., contract 
rents plus allowance for tenant paid utilities), the contract 
administration fee and the term of contract for specific projects.
    Budget authority will be distributed under this NOFA in the 
following manner:
Category A Applicants
    Approximately $167,445,500 of Section 8 budget authority is being 
made available under this NOFA for Category A participants. At least 50 
percent of this amount must be used for HUD-owned properties or 
properties with HUD-held mortgages.
    A Category A applicant must identify and document in its 
application the presence of a pipeline of projects for which project-
specific proposals sufficient to use the total amount of the set-aside 
requested by it can be submitted to HUD within the timeframes specified 
in section I(i) of this NOFA. This identification and documentation 
also must substantiate the applicant's ability to meet the requirement 
that at least 50 percent of any set-aside awarded to the fund must be 
used for HUD-owned properties or properties with HUD-held mortgages. 
The maximum amount that may initially be awarded to any one applicant 
may not exceed $167,445,500 or the amount sufficient to fund the 
pipeline identified and documented in its application for 
participation, whichever is less. The information required to support 
such identification and documentation is contained in HUD Notice 95-2.
Category B Applicants
    Approximately $83,722,750 of Section 8 budget is being made 
available under this NOFA for Category B participants. A Category B 
participant is not required to demonstrate the presence of the type of 
pipeline described above but must be able to submit project specific 
proposals within the time frames specified in Section I(ii) of this 
NOFA.
    A category B participant may receive an initial set-aside of not 
more than $10 million. A Category B participant may use the entire 
amount of any set-aside awarded to it for non-HUD properties (although 
HUD-owned properties or properties with mortgages held by HUD are 
eligible).

(C) Eligible Applicants

    Each applicant for participation in this program must demonstrate 
to the satisfaction of the Department that: (1) It is a trust, fund, 
plan or other program established or maintained by an employer or other 
person for the purpose of providing income or benefits to employees 
after the termination of employment or deferring income by employees 
until the termination of employment; (2) it is an entity that serves as 
an investment advisor to or engages principally in the investment of 
the funds of such a trust, fund, plan, or other program; or (3) it is a 
partnership or organization established to invest pension funds in 
affordable multifamily housing.
    Each applicant must demonstrate to the satisfaction of HUD that the 
trust, fund, plan or other program which it administers, invests or to 
which it serves as an advisor is fully capitalized at the time the 
application for participation in the demonstration is submitted and 
that capitalization is not contingent upon or in any way delayed by 
pending approval of the application. If the applicant administers, 
invests or serves as an advisor to one or more trust, fund, plan or 
other program, each such trust, fund, plan or program must be 
identified in the application together with documentation as to full 
capitalization of each.
    Each applicant must demonstrate its ability and intent to provide 
permanent financing in connection with projects to be developed under 
this demonstration.
    Each applicant must also demonstrate the availability of adequate 
staff capacity to perform the functions required under this 
demonstration or its ability to contract for or to enter into a 
partnership to obtain such services, in which case the applicant will 
still be responsible for overall program administration and decisions. 
[[Page 5808]] 

(D) Pension Fund Applications

    All applications from pension funds must contain information 
specifying the number of projects and units expected to be financed, 
the number and percent in each project expected to receive Section 8 
assistance, contract terms anticipated, anticipated initial contract 
rents, total Section 8 budget authority requested, the number of units 
to be newly constructed and the number to be substantially 
rehabilitated; types of families (e.g., elderly or large families or 
families with special needs (disabled, displaced or homeless)) and 
number of each expected to be assisted. Pension funds that submitted 
applications in response to the April 26, 1994 NOFA, including those 
pension funds that were selected, must submit applications in response 
to this NOFA if they wish to be eligible for a portion of the FY 1995 
budget authority.
    All applications must contain sufficient supporting information, in 
narrative and/or numerical form, as appropriate, to enable HUD to 
evaluate the applicant on the basis of the Pension Fund Selection 
Criteria set forth in subpart (E) below.

(E) Pension Fund Selection Criteria

    All applications for participation in the demonstration will be 
evaluated on the basis of the following criteria:
    1. Past involvement in and capacity to permanently finance 
multifamily housing;
    2. Capability to make overall program and mortgage finance 
decisions;
    3. Use of its own resources, including how it will maximize any 
Section 8 set-aside awarded to it;
    4. Current multifamily pipeline and ability to move housing to 
construction/rehabilitation start in a short time frame;
    5. Use of HUD-owned properties or properties with mortgages held by 
HUD in a variety of geographic locations (required of Category A 
applicants only);
    6. Efforts to promote economic or neighborhood development and/or 
employment opportunities for project area residents while achieving 
ethnic, cultural and gender diversity;
    7. Efforts to ensure compliance with the requirements of section 3 
and the implementing regulations at 24 CFR part 135 by project owners, 
contractors and subcontractors; and
    8. Consideration of housing needs created by dislocation of major 
employment sources.
    Additional, more detailed information and instructions with respect 
to the above criteria, as well as on application and program procedures 
in general, are contained in HUD Notice 95-2 which will be provided to 
pension funds upon request to the HUD program headquarters office 
referred to above. Applicants should refer to HUD Notice 95-2 for 
details as to the supporting information required for each criterion.
    Acceptable applications received by the deadline date and time 
specified above will be evaluated against each other. Category A 
applications will be evaluated separately from Category B applications. 
Applications will be selected on the basis of numerical ratings 
assigned to the criteria identified above.
    The Department will formally notify each pension fund as to whether 
or not it was selected to participate in this demonstration program and 
the amount of set-aside awarded.

(F) Guidelines on Eligible and Ineligible Projects

    Pension funds selected by HUD to participate in this demonstration 
must submit proposals for projects they wish to permanently finance to 
the Department for approval.
1. Eligible Projects
    New construction projects are eligible under this demonstration. In 
addition, the following types of existing projects are eligible for 
substantial rehabilitation:

--A multifamily project owned by the Secretary or subject to a mortgage 
held by the Secretary;
--A multifamily project eligible for assistance as a troubled project 
under section 201 of the Housing Community Development Amendments of 
1978;
--A multifamily project located in an empowerment zone or enterprise 
community designated pursuant to Federal law;
--Any other multifamily project, including those to be occupied by 
homeless persons or homeless families as defined in section 103 of the 
Stewart B. McKinney Homeless Assistance Act.
2. Ineligible Projects
    Certain projects are not eligible for use in this demonstration. 
These include:
    (a) Projects that are subject to mortgage prepayment restrictions, 
including projects meeting the definition of ``eligible low income 
housing'' under the Low-Income Housing Preservation and Resident 
Homeownership Act of 1990 (LIHPRHA);
    (b) Projects that are subject to section 250(a) of the National 
Housing Act; and
    (c) High rise elevator projects for families with children unless 
HUD determines there is no practical alternative.

(G) Project Selection Criteria

    Pension funds may establish their own criteria for selecting 
project-specific proposals but such criteria must, in the aggregate, 
reflect the following public purposes to the satisfaction of the 
Secretary:

--Achieving economic mix;
--Increasing housing choices and fostering neighborhood diversity;
--Providing affordable housing for large, low-income families and 
providing access to necessary supportive facilities and services;
--Involving other state and local and public and private resources to 
achieve these objectives and to limit Section 8 assistance to less than 
50 percent of the units (except in HUD-owned properties or properties 
with mortgages held by HUD and under limited special circumstances 
approved by HUD such as assistance for homeless, disabled, or 
displaced;
--Facilitating maximum use of available Section 8 budget authority by 
limiting gross rents to less than the Fair Market Rent Limitations and 
contract terms to less than 15 years;
--Facilitating geographic/locality diversity of project sites and 
complying with any applicable court orders;
--For Category A participants, using HUD owned properties and 
properties with mortgages held by HUD in a variety of geographic 
locations, and giving preferences to projects in Empowerment Zones;
--Meeting special needs of homeless, disabled, or displaced 
individuals; and
--Complying with section 3 responsibilities, as set forth in 24 CFR 
part 135.

    A list of HUD-owned properties is available from HUD Headquarters, 
Office of Preservation and Property Disposition, telephone (202) 708-
3343, or (202) 708-4595 (TDD). Information on properties with mortgages 
held by HUD is available from the Office of Multifamily Housing 
Management in HUD Headquarters, telephone (202) 708-3730, or (202) 708-
4594 (TDD).
    More detailed information with respect to these criteria and 
methods of selection is contained in HUD Notice 95-2. HUD Notice 95-2 
sets forth the format and specific information needed for pension funds 
to meet the requirements of this subpart (G).
[[Page 5809]]

(H) Use of HUD Inventory

    A Category A participant will be required to use at least 50 
percent of its Section 8 set-aside in connection with HUD-owned 
properties or properties with mortgages held by HUD unless the 
Department determines that requirements of section 6(b) of the Act will 
otherwise be met and approves an exception.
    In the case of HUD-owned properties, the number of units required 
to be assisted will be determined in the disposition plan in accordance 
with statutory requirements. The pension fund will provide assistance 
from its set-aside for one-half the number of units to be assisted as 
determined in the disposition plan; HUD will provide the other one-half 
from its property disposition set-aside.
    A Category B participant may, but will not be required to, use any 
of its set-aside for HUD-owned properties or properties with mortgages 
held by HUD.

(I) Section 8 Project-Specific Contract Award

    (i) Category A Participants. A Category A participant will have 120 
days from the date of its selection to participate in the demonstration 
to submit project-specific proposals utilizing 75 percent of the total 
amount of its Section 8 set-aside under this NOFA. It will have 10 
months from the date of selection to commit (i.e., close on 
construction financing) its Section 8 set-aside to specific projects.
    A Category A participant will have 180 days and 12 months, 
respectively, to submit project-specific proposals and to close on 
construction financing for the remaining 25 percent of its Section 8 
set-aside.
    (ii) Category B Participants. A Category B participant must submit 
project-specific proposals sufficient to use 50 percent of its Section 
8 set-aside under this NOFA within 6 months from the date of selection 
to participate in the demonstration. It will have 10 months from the 
date of selection to reach closing of construction financing.
    A Category B participant will have 12 months and 16 months, 
respectively, to submit project-specific proposals and to close on 
construction financing for the remaining 50 percent of its Section 8 
set-aside.
    (iii) Uncommitted Set-asides. Any amount of set-asides not 
committed to specific projects by the end of the time periods indicated 
above, or any extensions of these time periods granted by HUD, may be 
withdrawn by HUD and reallocated to other pension funds based on the 
performance of the receiving pension fund in utilizing its previous 
allocation(s) or to pension funds not previously selected by HUD due to 
the lack of available budget authority.

(J) Receipt and Processing of Project-Specific Proposals

    Project-specific proposals must include the information and 
certifications identified in HUD Notice 95-2 and be submitted in the 
format specified therein.
    After receipt of a project-specific proposal, HUD will, in 
accordance with HUD Notice 95-2, obtain and issue appropriate Davis-
Bacon wage rate determinations and perform certain HUD-retained reviews 
for compliance with:

--Site acceptability criteria for this demonstration;
--Environmental requirements, except that HUD may accept and adopt an 
environmental review conducted by a CDBG or HOME grantee in accordance 
with 24 CFR part 58;
--Affirmative Fair Housing Marketing requirements;
--Previous participation of project principals in HUD programs; and
--Subsidy layering guidelines, unless the Housing Credit Agency has 
agreed to perform subsidy layering reviews for projects receiving Low 
Income Housing Tax Credits or some form of HUD assistance.

    Upon completion of the HUD reviews, HUD will notify the pension 
fund whether or not the proposal is acceptable and of the steps 
requisite to execution of the HAP Agreement.

(K) Post Approval Processing

    The HAP Agreement may not be executed nor may construction or 
substantial rehabilitation begin until the certifications required by 
HUD Notice 95-2 are submitted to and found acceptable by HUD.

(L) Contract Administration

    The statute calls for assistance to be provided through ``a 
contract entered into by the Secretary and the owner.'' It is the 
Department's intent to enter into a HUD/Private Owner HAP Agreement and 
Contract. HUD will then enter into a contract with an HFA or PHA that 
has jurisdiction over the geographic area in which the project is 
located. For a fee, the HFA or PHA will carry out certain 
administrative or ministerial functions that otherwise would be the 
responsibility of HUD as the Section 8 Contract Administrator. Any 
administrative fee payable to the HFA or PHA will not exceed 5 percent 
of the published 2 bedroom Fair Market Rent for Existing Housing for 
the area and will be payable out of the Section 8 contract and budget 
authority reserved for each project.

(M) Project Construction and Completion

    Project construction, completion and cost certification 
requirements are contained in HUD Notice 95-2. HUD may perform field 
reviews if necessary to substantiate compliance with program 
requirements.

(N) HUD-Private Owner HAP Contract

    If the pension fund and owner are in compliance with HUD Notice 95-
2, HUD will execute a HUD/Private Owner HAP Contract with the owner. 
The contract will contain provisions relative to: (1) The terms of the 
contract which may be not less than 5 nor more than 15 years; (2) the 
responsibilities of the owner for project management and maintenance; 
(3) a prohibition on the use of other Federal programs so long as the 
contract is in effect; (4) a limitation on assistance for the project 
to the housing assistance payments available under the Contract; (5) 
the requirement that in the event the project is refinanced to lower 
the interest rate and/or debt service payment, HUD may reduce the 
Contract rents; and (6) the right for HUD to terminate the Contract for 
cause if the owner fails to perform in accordance with the provisions 
of the Contract.

II. Other Matters

(A) Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
was made in accordance with HUD regulations at 24 CFR part 50, which 
implement section 102(2)(C) of the National Environmental Policy Act of 
1969, at the time of development of the NOFA published on April 26, 
1994 (59 FR 21826). The Finding remains applicable to this NOFA and is 
available for public inspection during regular business hours in the 
Office of General Counsel, the Rules Docket Clerk room 10276, 451 
Seventh Street, SW, Washington, DC 20410.

(B) Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that this NOFA 
does not have substantial, direct effect on the States, on their 
political subdivisions, or on the relationship between the Federal 
government and the States, or on the distribution of power or 
responsibilities among the various levels of government, because this 
NOFA would not [[Page 5810]] substantially alter the established roles 
of HUD, the States and local governments.

(C) Impact on the Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, the Family, has determined that this notice does not have 
potential for significant impact on family formation, maintenance, and 
general well-being within the meaning of the Executive Order and, thus, 
is not subject to review under the Order. This is a funding notice and 
does not alter any HUD program requirements affecting the family.

(D) Accountability in the Provision of HUD Assistance

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

(E) Prohibition Against Lobbying Activities

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

(F) Prohibition Against Lobbying of HUD Personnel

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

(G) Prohibition Against Advance Information on Funding Decisions

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

    Dated: January 6, 1995.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 95-2149 Filed 1-27-95; 8:45 am]
BILLING CODE 4210-27-P