[Federal Register Volume 60, Number 37 (Friday, February 24, 1995)]
[Notices]
[Pages 10452-10465]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4451]




[[Page 10451]]

_______________________________________________________________________

Part V





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Public and Indian Housing



_______________________________________________________________________



Community Development Block Grant Program for Indian Tribes and Alaska 
Native Villages; Notice of Fund Availability

Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / 
Notices 
[[Page 10452]] 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing
[Docket No. N-95-3870; FR-3798-N-01]


Community Development Block Grant Program for Indian Tribes and 
Alaska Native Villages; Notice of Fund Availability

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

ACTION: Notice of Fund Availability for Fiscal Year 1995.

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

SUMMARY: This Notice of Fund Availability (NOFA) announces HUD's 
funding for the Community Development Block Grant Program for Indian 
Tribes and Alaska Native Villages (hereafter referred to as the ICDBG 
Program) for Fiscal Year 1995. In the body of this document is 
information concerning the following:
    (a) The purpose of the NOFA, and information regarding eligibility, 
available amounts, and selection criteria;
    (b) Application processing, including how to apply and how 
selections will be made; and
    (c) A checklist of steps and exhibits involved in the application 
process.

DATES: Applications must be received by the appropriate field office of 
the HUD Office of Native American Programs (ONAP) no later than 3:00 
P.M. May 14, 1995. Application materials will be available from each 
field office. General program questions may be directed to the field 
office serving your area or by contacting Dom Nessi, Office of Native 
American Programs, Office of Public and Indian Housing, Department of 
Housing and Urban Development, Room B-133, 451 Seventh Street SW, 
Washington, DC 20410. Telephone (202) 755-0068. The Telecommunications 
Device for the Deaf (TDD) number is (202) 708-0850. (These are not 
toll-free numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Requirements

    The information collection requirements contained in this Notice 
have been approved by the Office of Management and Budget, under 
section 3504(h) of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-
3520), and have been assigned OMB control number 2506-0043.

Table of Contents

I. Purpose and Substantive Description
    (a) Authority
    (b) Funding
    (c) Eligible Activities
    (d) Applicant Eligibility
    (e) Screening for Acceptance
    (f) Application Review Process Description
    (g) Overall thresholds
    1. Applicant-Specific Thresholds--Capacity and Performance
    A. Capacity
    B. Performance
    2. Community Development Appropriateness
    A. Costs are Reasonable
    B. The Project is Appropriate for the Intended Use
    C. Project is Usable/Achievable within Two Years
    (h) General definitions
    (i) Project definitions, thresholds and selection criteria
    1. Housing
    A. Threshold for all housing category projects
    B. Rehabilitation
    (1) Thresholds
    (2) Grant Limits
    (3) Selection Criteria
    a. Project Need and Design
    b. Planning and Implementation
    c. Leveraging
    C. Land to Support New Housing
    (1) Thresholds
    (2) Selection Criteria
    a. Project Need
    b. Planning and Implementation
    D. New Housing Construction/Direct
    Home Ownership Assistance
    (1) Thresholds
    (2) Selection Criteria
    a. Project Need and Design
    b. Planning and Implementation
    c. Leveraging
    2. Community Facilities
    A. Infrastructure
    (1) Selection Criteria
    a. Project Need and Design
    b. Planning and Implementation
    c. Leveraging
    B. Buildings
    (1) Thresholds
    (2) Selection Criteria
    a. Project Need and Design
    b. Planning and Implementation
    c. Leveraging
    3. Economic Development
    (A) Thresholds
    (B) Selection Criteria
    (1) Organization
    (2) Project Success
    (3) Leveraging
    (4) Permanent Full time Job Creation and Training
    (5) Additional Considerations
    4. Selection System Criteria and Point Award Summary
II. Application Process
III. Application Submission Requirements and Checklist
IV. Procedural Error and Appeals
V. Other Matters
    (a) Federalism Executive Order
    (b) Family Executive Order
    (c) Registration of Consultants
    (d) Prohibition of Advance Disclosure of Funding Decisions
    (e) Economic Opportunities for Low and Very Low Income Persons

I. Purpose and Substantive Description

(a) Authority

    Title I, Housing and Community Development Act of 1974, as amended 
(42 U.S.C. 5301 et seq.); sec. 7(d) of the Department of Housing and 
Urban Development Act (42 U.S.C. 3535(d)); 24 CFR part 953.

(b) Funding

    Amendments to Title I of the Housing and Community Development Act 
of 1974 have required that the allocation for Indian Tribes be on a 
competitive basis in accordance with selection criteria contained in a 
regulation promulgated by the Secretary after notice and public 
comment. The interim regulation containing the selection criteria was 
issued July 27, 1994, and is published in the Federal Register at 59 FR 
38326. All grant funds awarded in accordance with this NOFA are subject 
to the requirements of 24 CFR Part 953.

Documentation and Public Access Requirements; Applicant/Recipient 
Disclosures: HUD Reform Act

    Documentation and public access requirements. HUD will ensure that 
documentation and other information regarding each application 
submitted pursuant to this NOFA are sufficient to indicate the basis 
upon which assistance was provided or denied. This material, including 
any letters of support, will be made available for public inspection 
for a five-year period beginning not less than 30 days after the award 
of the assistance. Material will be made available in accordance with 
the Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15. In addition, HUD will include the 
recipients of assistance pursuant to this NOFA in its Federal Register 
notice of all recipients of HUD assistance awarded on a competitive 
basis. (See 24 CFR 12.14(a) and 12.16(b), and the notice published in 
the Federal Register on January 16, 1992 (57 FR 1942), for further 
information on these documentation and public access requirements.)
    Disclosures. HUD will make available to the public for five years 
all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this NOFA. Update reports (also Form 2880) will be made 
available along with the applicant disclosure reports, but in no case 
for a period less than three years. All reports--both applicant 
disclosures and updates--will be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 [[Page 10453]] 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.)
    1. Allocations. The requirements for allocating funds to field 
offices responsible for program administration are found at 24 CFR 
953.101. Following these requirements, the allocation for FY 1995 is as 
follows:

Eastern Woodlands..........................................   $3,577,545
Southern Plains............................................    8,322,000
Northern Plains............................................    7,028,048
Southwest..................................................   19,008,484
Northwest..................................................    2,751,491
Alaska.....................................................    3,812,432
                                                            ------------
    Total..................................................   44,500,000
                                                                        

The total FY 1995 ICDBG allocation is $46,000,000. As indicated in 
Section I(b)3 below, $1,500,000 has been retained to fund Imminent 
Threat grants.
    2. Grant Ceilings. The authority to establish grant ceilings is 
found at 24 CFR 953.100(b)(1). Grant ceilings are established for FY 
1995 funding at the following levels:

------------------------------------------------------------------------
           Field offices                   Population          Ceiling  
------------------------------------------------------------------------
Eastern Woodlands.................  ALL                         $300,000
Southern Plains...................  ALL                          750,000
Northern Plains...................  ALL                          800,000
Southwest.........................  50,001+                    5,000,000
                                    10,501-50,000              2,500,000
                                    9,001-10,000               2,000,000
                                    7,501-9,000                1,500,000
                                    6,001-7,500                1,000,000
                                    4,501-6,000                  750,000
                                    3,001-4,500                  650,000
                                    1,501-3,000                  550,000
                                    1-1,500                      450,000
Northwest.........................  ALL                          320,000
Alaska............................  ALL                          500,000
------------------------------------------------------------------------

    3. Imminent Threats
    The criteria for grants to alleviate or remove imminent threats to 
health or safety that require an immediate solution are described at 24 
CFR part 953, subpart E. In accordance with the provisions of that 
subpart, $1,500,000 is being retained to meet the funding needs of 
imminent threat applications submitted to any of the field offices. The 
grant ceiling for imminent threat applications for FY 1995 is
350,000. This ceiling is established pursuant to the requirements of 24 
CFR 953.100(c).

(c) Eligibility of Activities

    Activities that are eligible for ICDBG funds are identified at 24 
CFR part 570 subpart C, as modified by 24 CFR part 953 subpart C. Both 
the National Affordable Housing Act (NAHA) (P.L. 101-625) and the 
Housing and Community Development Act of 1992 (the 1992 Act) (P.L. 102-
550) amended Title I of the Housing and Community Development Act of 
1974 (HCD Act). Various amendments made by these two acts are 
applicable.

(d) Applicant Eligibility

    To apply for funding in a given fiscal year, an applicant must be 
eligible as an Indian Tribe or Alaska Native Village (or as a tribal 
organization) by the application submission date.
    Tribal organizations are permitted to submit applications under 24 
CFR 953.5(b) on behalf of eligible tribes or villages when one or more 
eligible tribe(s) or village(s) authorize the organization to do so 
under concurring resolutions. As is stated in this regulatory section, 
the tribal organization must itself be eligible under Title I of the 
Indian Self-Determination and Education Assistance Act.
    If a tribe or tribal organization claims that it is a successor to 
an eligible entity, the field office must review the documentation to 
determine whether it is in fact the successor entity.
    Due to the unique structure of tribal entities eligible to submit 
ICDBG applications in Alaska, and as only one ICDBG application may be 
submitted for each area within the jurisdiction of an entity eligible 
under 24 CFR 953.5, a Village Corporation, Regional Corporation or 
Tribal Organization which submits an application for activities in the 
jurisdiction of one or more eligible tribes or villages, must include a 
concurring resolution from each such tribe or village authorizing the 
submittal of the application. Each such resolution must also indicate 
that the tribe or village does not itself intend to submit an ICDBG 
application for that funding round. The hierarchy for funding priority 
continues to be the IRA Council, the Traditional Village Council, the 
Village Corporation and the Regional Corporation.
    On October 21, 1993, the Bureau of Indian Affairs (BIA) published a 
Federal Register Notice entitled ``Indian Entities Recognized and 
Eligible to Receive Services From the United States Bureau of Indian 
Affairs''. This Notice provides a listing of Indian Tribal Entities in 
Alaska found to be Indian Tribes as the term is defined and used in 25 
CFR 83. Additionally, pursuant to Title I of the Indian Self-
Determination and Education Assistance Act, ANCSA Village Corporations 
and Regional Corporations are also considered tribes and therefore 
eligible applicants for the ICDBG program.
    Any questions regarding eligibility determinations and related 
documentation requirements for entities in Alaska should be referred to 
the Alaska field office prior to the deadline for submitting an 
application. (See 24 CFR 953.5 for a complete description of eligible 
applicants.)

(e) Screening for Acceptance

    Each field office will initially screen applications for single 
purpose grants. Applications failing this initial screening shall be 
rejected and returned to the applicants unrated. Field offices will 
accept applications if all the criteria listed below as items 1. 
through 6. are met:
    1. The application is received by the appropriate field office no 
later than 3:00 p.m. on the deadline date.
    2. The applicant is eligible;
    3. The proposed activities are eligible;
    4. The application contains substantially all the components 
specified in Section III of this notice; and
    5. At least 70% of the grant funds are to be used for activities 
that benefit low and moderate income persons, in accordance with the 
requirements of 24 CFR 953.201(a). [[Page 10454]] 
    6. The application is for an amount which does not exceed the grant 
ceilings that are established by the NOFA.

(f) Application Review Process Description

    1. Threshold review. The field office will review each application 
that passes the initial screening process to ensure that each applicant 
and each proposed project meets the applicable threshold requirements 
set forth in 24 CFR 953.302(a), as implemented by this NOFA. If an 
applicant fails to meet any of the applicant-specific thresholds, its 
application cannot be accepted for rating and ranking. Project(s) that 
do not meet the community development appropriateness or applicable 
project-specific thresholds will not be considered for funding.
    2. All projects that meet the acceptance criteria and threshold 
requirements will be reviewed and rated by a field office rating team 
of at least three voting members. The field office will examine each 
project to determine in which one of the three rating categories set 
forth in 24 CFR 953.303 through 24 CFR 953.305 the project most 
appropriately belongs. The project will be rated on the basis of the 
criteria identified in the rating category component to which the 
project has been assigned. The total of points for a rating component 
is 100, which is the maximum any project can receive.
    3. Public service projects. Due to the statutory 15 percent cap on 
public services activities, applicants may not receive single purpose 
grants solely to fund public services activities. However, any 
application may contain a public services component for up to 15 
percent of the total grant. This component may be unrelated to the 
application's other project(s). If an application does not receive full 
funding, the public services allocation will be proportionately reduced 
to comprise no more than 15 percent of the total grant award.
    4. Corrections to deficient applications and supplemental 
information. HUD will not accept unsolicited information regarding the 
application after the application deadline has passed. The field office 
will advise applicants of technical deficiencies in applications and 
permit them to be corrected. A technical deficiency is an error or 
oversight which, if corrected, would not alter, in either a positive or 
negative fashion, the review and rating of the application. Examples of 
curable technical deficiencies would be a failure to submit proper 
certifications or failure to submit an application containing an 
original signature by an authorized official. HUD will notify 
applicants in writing of any curable technical deficiencies in 
applications.
    The field office also may, at its discretion, request supplemental 
information to resolve inconsistencies or ambiguities in the 
application or information that may help clarify an application that, 
in the field office's view, contains information that is inconsistent 
with known facts or data.

Applicants will have 14 calendar days from the date of HUD's 
correspondence to reply and correct the technical deficiency or provide 
the requested supplemental information. If the technical deficiency is 
not corrected within this time period, HUD will reject the application 
as incomplete. If the supplemental information is not provided in this 
time period and, as a consequence, the field office determines that the 
applicant has failed to establish compliance with the requirements of 
24 CFR part 953, the application will be returned, unrated.

Applicants may not submit information that would enhance a project's 
rating, and a new project may not be substituted for one included in 
the application.
    5. Final ranking. All projects will be ranked against each other 
according to the point totals they receive, regardless of the rating 
category or component under which the points were received. Projects 
will be selected for funding based on this final ranking, to the extent 
that funds are available. Individual grant amounts will be determined 
in a manner consistent with the considerations set forth in 24 CFR 
953.100(b)(2). If the field office determines that an insufficient 
amount of money is available to adequately fund a project, it may 
decline to fund that project and fund the next highest ranking project 
or projects for which adequate funds are available. HUD may select, in 
rank order, additional projects for funding if one of the higher 
ranking projects is not funded, or if additional funds become 
available.
    6. Tiebreakers. When rating results in a tie among projects and 
insufficient resources remain to fund all tied projects, field offices 
shall approve projects that can be fully funded over those that cannot 
be fully funded. When that does not resolve the tie, the following 
factors should be used in the order listed to resolve the tie:
    A. Eastern Woodlands Office.
    (1) The project that would benefit the highest percentage of low 
and moderate income persons.
    (2) The project that would benefit the most low and moderate income 
persons.
    B. Southern Plains Office.
    (1) The project that would benefit the highest percentage of low 
and moderate income persons.
    (2) The applicant with the fewest active grants.
    (3) The project that would benefit the most low and moderate income 
persons.
    C. Northern Plains Office.
    (1) The project that would benefit the highest percentage of low 
and moderate income persons.
    (2) The project that would benefit the most low and moderate income 
persons.
    D. Southwest Office.
    (1) The applicant with the fewest active grants.
    (2) The applicant that has not received an ICDBG grant over the 
longest period of time.
    (3) The project that would benefit the highest percentage of low 
and moderate income persons.
    E. Northwest Office.
    (1) The applicant that has not received an ICDBG grant over the 
longest period of time.
    (2) The applicant that has received the fewest ICDBG dollars since 
the inception of the program.
    (3) The project that would benefit the highest percentage of low 
and moderate income persons.
    F. Alaska Office.
    (1) The applicant that has not received an ICDBG grant over the 
longest period of time.
    (2) The project that would benefit the highest percentage of low 
and moderate income persons.
    (3) The project that would benefit the most low and moderate income 
persons.

(g) Overall Thresholds

    Two types of general thresholds are set forth in 24 CFR 953.302(a): 
those that relate to applicants, and those that address the overall 
community development appropriateness of the project(s) included in the 
application. Project-specific thresholds will be addressed within the 
pertinent project selection criteria categories.
    Applicant thresholds focus on the administrative capacity of the 
applicant to undertake the proposed project, and on its past 
performance in the ICDBG and Housing programs. An applicant that has 
previously participated in the ICDBG program must have performed 
adequately. In cases of previously documented deficient performance, 
the applicant must have taken appropriate corrective action to improve 
its performance prior to submitting an ICDBG application to HUD.
    In order to rate and rank a project contained in an application 
that has passed the screening tests outlined in [[Page 10455]] Section 
III of this NOFA, field offices must determine that the proposed 
project meets the community development appropriateness thresholds, 
i.e., the project has costs that are reasonable; the project is 
appropriate for the intended use; and the project is usable or 
achievable in a timely manner, generally within two years of grant 
award.
1. Applicant-Specific Thresholds--Capacity and Performance
    A. Capacity. The field office will assume, absent evidence to the 
contrary, that the applicant possesses, or can obtain the managerial, 
technical or administrative capability necessary to carry out the 
proposed project. The application should address who will administer 
the project and how the applicant plans to handle the technical aspects 
of executing the project. If the field office determines, based on 
substantial evidence, that the applicant does not have or cannot obtain 
the capacity to undertake the proposed project, the application will 
not receive further consideration.
    B. Performance.
    (1) Community Development. If an applicant has previously 
participated in the ICDBG Program, the field office shall determine 
whether the applicant has performed adequately in grant administration 
and management. Where an applicant was found to be performing 
inadequately, the field office shall determine whether the applicant is 
following a schedule to correct performance to which the applicant and 
the field office have agreed. In cases of previously documented 
deficient performance, the field office must determine that the 
applicant has taken appropriate corrective action to improve its 
performance. The applicant is presumed to be performing adequately 
unless the field office makes a performance determination to the 
contrary during periodic monitoring.
    (2) Housing assistance. The applicant is presumed not to have taken 
actions to impede the provision of housing assistance for low and 
moderate income members of the tribe or village. Any action taken by 
the applicant to prevent or obstruct the provision or operation of 
assisted housing for low and moderate income persons shall be evaluated 
in terms of whether it constitutes inadequate performance by the 
applicant. If an applicant has established or joined an Indian Housing 
Authority (IHA), and this IHA has obtained housing assistance from HUD, 
the applicant's compliance with the obligations and responsibilities to 
the IHA set forth in the tribal ordinance which was the basis for the 
establishment or joining of the IHA will be a performance 
consideration.
    An applicant will not be held accountable for the poor performance 
of its IHA unless this inadequate performance is found to be a direct 
result of the applicant's action or inaction. If this is true, the 
application will be removed from further consideration. Applicants 
which are members of ``umbrella'' IHAs will be judged only on their 
individual performance and will not be held accountable for the poor 
performance of other tribes that are members of the IHA.
    If an applicant has received ICDBG funds for the provision of new 
housing through a subrecipient, the field office will consider the 
following in making its determination regarding housing assistance 
performance: a. whether the proposed units were constructed; b. whether 
housing assistance was provided to the beneficiaries identified in the 
funded application, and if not, why not; c. whether the applicant 
followed the provisions of its housing plan and procedures; and d. 
whether there were sustained complaints from tribal members regarding 
provision and/or distribution of ICDBG housing assistance.
    (3) Audits. This threshold requires the applicant to meet the 
following performance criteria:
    a. The applicant cannot have an outstanding ICDBG obligation to HUD 
or a ICDBG program that is in arrears, or it must have agreed to a 
repayment schedule. An applicant that has an outstanding ICDBG 
obligation that is in arrears, or one that has not agreed to a 
repayment schedule, will be disqualified from the current competition 
and from subsequent competitions until the obligations are current. If 
a grantee that was current at the time of application submission 
becomes delinquent during the review period, the application may be 
rejected.
    b. The applicant cannot have an overdue or unsatisfactory response 
to an audit finding. If there is an overdue or unsatisfactory response 
to an audit finding, the applicant will be disqualified from current 
and subsequent competition until the applicant has taken final action 
necessary to close the audit finding. The field office administrator 
may provide exceptions to this disqualification in cases where the 
applicant has made a good faith effort to clear the audit finding. An 
exception may be granted when funds are due HUD or an ICDBG program as 
a result of a finding only when a satisfactory arrangement for 
repayment of the debt has been made and payments are current.
    2. Community Development Appropriateness. The following criteria 
must be met by each project:
    A. Costs are reasonable. The project must be described in 
sufficient detail so that the field office can determine: (1) that 
costs are reasonable; and (2) that the funds requested from the ICDBG 
program and all other sources are adequate to complete the proposed 
activity(ies) described in the application.
    B. The project is appropriate for the intended use.
    C. The project is usable or achievable in a timely manner, 
generally within a two year period. The applicant must include its 
timetable for project implementation and completion. A period of more 
than two years is acceptable in certain circumstances, if it is 
established that such circumstances are beyond the applicant's control.

(h) General Definitions

    Adopt. To approve by formal tribal resolution, as defined at 24 CFR 
part 953.4.
    Assure. To comply with a specific NOFA requirement. The applicant 
should state its compliance or its intent to comply in its application.
    Document. To supply supporting written information and/or data in 
the application, which satisfies the NOFA requirement.
    Leverage. Resources the grantee will use in conjunction with ICDBG 
funds to achieve the objectives of the project. Resources include, but 
are not limited to: tribal trust funds, loans from individuals or 
organizations, state or Federal loans or guarantees, other grants, as 
well as noncash contributions and donated services. Written 
verification of an application or request for the leveraged resources 
which would be provided by an entity other than the applicant must be 
included in the application for ICDBG funds. To be considered in the 
award of points, resources to be provided by the applicant must be 
verified by a tribal council resolution which identifies and commits 
these resources. A copy of this resolution must be included in the 
application. With respect to resources to be provided by an entity 
other than the applicant, to be considered in the award of points, the 
following requirements apply:

--For grants or other contributed resources from a public agency, 
foundation, or other private party, a written commitment which may be 
contingent on approval of the ICDBG award must be received by the field 
[[Page 10456]] office no later than 30 days after the application 
deadline. This commitment must specifically identify or indicate: the 
dollar amount committed (or dollar value of the noncash resource and 
the basis for the valuation); that the resources are currently 
available or will be available when necessary for successful project 
implementation; and the project. If delays in the Federal funding 
process preclude an agency from making a firm funding commitment in 
this timeframe, such resources will be considered in the award of 
points if the Federal entity issues a written statement indicating that 
it is extremely likely that the applicant will be funded within six 
months of the anticipated date of grant approval notification from HUD. 
This statement must be received by the field office no later than 30 
days after the application deadline.

    With respect to the contribution of land as a leveraged resource, 
the value of the land to be contributed will only be considered when 
the use of the land and the land area are integral to the development 
of the project. To be considered for point award, the value of the land 
must be verified by any of the following means or methods and this 
documentation and a written confirmation of the proposed contribution 
must be included in the application:

--A site specific appraisal no more than two years old;
--An appraisal of a near-by comparable site also no more than two years 
old;
--A reasonable extrapolation of land value based on current area 
realtors value guides.

    Donated goods and services will be considered for point award if 
the applicable requirements listed above are met; if the items or 
services are demonstrated and determined necessary to the actual 
development of the project; and comparable cost and/or time estimates 
are submitted which support the donation.
    Project Cost. The total cost to implement the project. Project cost 
includes both ICDBG and non ICDBG funds and resources.
    Section 8 standards. Housing quality standards contained in the 
Section 8 Housing Assistance Payments Program Existing Housing (24 CFR 
882.109).
    Standard Housing/Standard Condition. Housing which meets the 
housing quality standards (HQS) adopted by the applicant. The adopted 
standards must provide for the following:

--That the house is safe, in a physically sound condition with all 
systems performing their intended design functions;
--A livable home environment;
--An energy efficient building and systems which incorporate energy 
conservation measures;
--Adequate space and privacy for all intended household members. The 
HQS adopted by the applicant must be at least as stringent as the 
Section 8 standards unless the field office approves less stringent 
standards based on a determination that local conditions make the use 
of Section 8 standards infeasible. Applicants may submit their request 
for the approval of standards less stringent than Section 8 standards 
prior to the application due date. If the request is submitted with the 
application, applicants should not assume automatic approval by the 
field office.

    Tribe. Indian Tribe, band, group or nation, including Alaska 
Indians, Aleuts, Eskimos and Alaska Native Villages.

(i) Project Definitions, Thresholds and Selection Criteria

    1. Housing.
    A. General Threshold for Housing Category Projects Households that 
have been evicted from HUD assisted housing within the past five years 
may not be assisted, except in emergency situations. The field office 
administrator will review each emergency situation proposed by an 
applicant on a case-by-case basis to determine whether an exception is 
warranted.
    B. Rehabilitation.
    (1) Thresholds.
    a. All applicants for housing rehabilitation grants shall adopt 
rehabilitation standards and rehabilitation policies, prior to 
submitting an application. These standards and policies must be 
submitted with the application.
    b. Any units to be rehabilitated must be the permanent non-seasonal 
residence of the occupant(s). The resident(s) must live in the unit at 
least nine months per year.
    c. Housing units slated for eventual replacement may only receive 
repairs essential for the health and safety of the occupants.
    d. The applicant shall provide an assurance that it will use 
project funds to rehabilitate HUD assisted units only when the tenant/
homeowner's payments are current or the tenant/homeowner is current in 
a repayment agreement that is subject to approval by the field office. 
In emergency situations the field office administrator may grant 
exceptions to this requirement on a case-by-case basis.
    e. Houses that have received comprehensive rehabilitation 
assistance from any ICDBG or other Federal grant program within the 
past 8 years cannot be assisted with ICDBG funds to make the same 
repairs if the repairs are needed as a result of abuse or neglect.
    (2) Grant limits. Rehabilitation grant limits for each field office 
jurisdiction are as follows:

a. Eastern Woodlands--$15,000
b. Southern Plains--$15,000
c. Northern Plains--$33,500
d. Southwest--$25,000
e. Northwest--$18,000
f. Alaska--Lesser of $45/ sq.ft. or $35,000

    (3) Selection Criteria.
    a. Project Need and Design. (45 points)
    (i) The percentage of ICDBG funds committed to bring the housing up 
to a standard condition as defined by the applicant. Administrative, 
planning and technical assistance expenditures are excluded in 
computing the percentage of ICDBG funds committed to bring housing up 
to a standard condition. The percentage of ICDBG funds not used to 
bring housing up to a standard condition must be used for emergency 
repairs, demolition of substandard units or another purpose closely 
related to the housing rehabilitation project.
    Percentage of ICDBG Funds Committed to bring housing up to a 
standard condition:

91-100%--20 points
81-90.9%--15 points
80.9 and less--0 points

    (ii) The applicant's selection criteria give first priority to the 
neediest households. ``Neediest'' is defined as households whose 
current residences are in the greatest disrepair (but still suitable 
for rehabilitation treatment) in the project area, or very low-income 
households.

YES  10 points
NO  0 points

    (iii) Documentation of project need with a housing survey of all of 
the units to be rehabilitated with ICDBG funds. This survey should 
include standard housing data on each unit surveyed (e.g., age, size, 
type, number of rooms, number of habitable rooms, number of bedrooms/
sleeping rooms, type of heating). The survey should indicate the 
deficiencies for each unit. A definition of ``suitable for 
rehabilitation'' must be included. At a minimum, this definition must 
not include units that need only minor repairs, or units that need such 
major repairs that rehabilitation is structurally or financially 
infeasible. [[Page 10457]] 
    Submission of acceptable survey of units to be assisted.
    The application contains all the required survey data. (15 points)
    The application does not contain all the survey data, but does 
contain sufficient data to enable the project to proceed effectively. 
(10 points)
    The application does not contain survey data Or the survey data it 
does contain is not sufficient to enable the project to proceed 
effectively. (0 points)
    b. Planning and Implementation. (50 points)
    (i) Rehabilitation Policies including:
    a Adopted rehabilitation standards. The rehabilitation standards 
adopted by the applicant will ensure that after rehabilitation the 
units assisted will be in a standard condition.

YES  5 points
NO  0 points

    b Rehabilitation selection criteria. Rehabilitation selection 
criteria include property selection standards, cost limits, type of 
financing (e.g., loan or grant), homeowner costs and responsibilities, 
procedures for selecting households to be assisted, and income 
verification procedures.
    The application contains all the selection criteria listed above. 
(10 points)
    The application does not contain all the selection criteria listed 
above, but contains sufficient data to enable the project to proceed 
effectively Or the application contains all the selection criteria 
listed above, but in insufficient detail. (5 points)
    The application does not contain the selection criteria listed 
above Or if it does contain selection criteria, they are not sufficient 
to enable the project to proceed effectively. (0 points)
    c Project planning documents and applicable policies and 
procedures. These policies and procedures must include a description of 
the following items:

--The qualifications which will be required of the inspector
--The inspection procedures to be used
--The procedures to be used to select the contractor or contractors
--The manner in which the households to be assisted will be involved in 
the rehabilitation process
--How disputes between the households to be assisted, the contractors 
and the applicant will be resolved
--If applicable, the repayment provisions which will be required if 
sale of the assisted unit occurs prior to 5 years after the 
rehabilitation work has been completed

    The application contains all the policies and procedures listed 
above, and they will enable the project to be effectively implemented. 
(10 points)
    The application contains some but not all of the policies and 
procedures listed above and these policies and procedures are 
sufficient for the project to proceed effectively. (5 points)
    The application does not contain the policies and procedures listed 
above. (0 points)
    (ii) Post rehabilitation maintenance policies, including counseling 
and training assisted households on maintenance.
    The policy contains a well-planned counseling and training program. 
Training will be provided for assisted households, and provision is 
made for households unable to do their own maintenance (e.g., elderly 
and handicapped).
    The policy includes follow-up inspections after rehabilitation is 
completed to ensure the unit is being maintained. (5 points)
    The policy contains a well-planned home maintenance training and 
counseling program. (3 points)
    The application does not contain a well-planned home maintenance 
and counseling program. (0 points)
    (iii) Quality of cost estimates. Cost estimates have been prepared 
by a qualified individual. (Qualifications of the estimator must be 
included in the application).
    Costs of rehabilitation are documented on a per unit basis and are 
supported by a work write-up for each unit to be assisted. The work 
write-ups are based upon making those repairs necessary to bring the 
units to a standard condition in a manner consistent with adopted 
construction codes and requirements. The write-ups must be submitted 
with the application. If national standards, e.g.,the Uniform Building 
Code, have been locally adopted as the construction codes and 
requirements, they must be referenced. If locally developed and adopted 
codes and requirements are used, they must be submitted. (15 points)
    Cost estimates have been prepared for each dwelling unit to be 
rehabilitated to determine the total rehabilitation cost. The cost 
estimates are included in the application. Costs to rehabilitate each 
unit are documented by a deficiency list. (10 points)
    Cost estimates have been prepared and are included in the 
application but the estimates are based on surveys and not on 
individual unit deficiency lists. (5 points)
    Cost estimates are not included in the application Or the basis for 
the cost estimates included is inappropriate or not provided. (0 
points)
    (iv) Cost effectiveness of the rehabilitation program. This is a 
measure of how efficiently and effectively funds will be used under the 
proposed program. Applicants must demonstrate how the proposed 
rehabilitation will bring the units to be assisted to a standard 
condition in an efficient and cost effective manner.
    Rehabilitation project is cost effective. (5 points)
    Rehabilitation project is not cost effective. (0 points)
    c. Leveraging. (5 points)
    Points under this component will be awarded in a manner consistent 
with the definition of ``Leverage' included in this NOFA and the 
following breakdown:

------------------------------------------------------------------------
              Non-ICDBG percent of project cost                  Points 
------------------------------------------------------------------------
25 and over..................................................          5
20-24.9......................................................          4
15-19.9......................................................          3
10-14.9......................................................          2
 5-9.9.......................................................          1
 0-4.9.......................................................          0
------------------------------------------------------------------------

    C. Land to Support New Housing.
    (1) Thresholds.
    a. There must be a reasonable ratio between the number of net 
usable acres to be acquired and the number of low and moderate income 
households with documented housing needs.
    b. Housing assistance needs must be clearly demonstrated and 
documented with either a survey that identifies the households to be 
served, their size, income levels and the condition of current housing 
or an IHA approved waiting list. The survey or waiting list must be 
submitted with the application.
    (2) Selection Criteria.
    a. Project Need. (40 Points).
    The applicant has no suitable land for the construction of new 
housing and the necessary infrastructure and amenities for this 
housing. (40 points)
    The applicant has land suitable for housing construction and needed 
infrastructure and amenities, but the land is officially dedicated to 
another purpose. (30 points)
    The applicant will be acquiring land for housing construction and 
the construction of needed infrastructure and amenities for both new 
and existing housing. (25 points)
    The applicant will be acquiring land for the construction of 
amenities for existing housing. (15 points)
    The reason for the land acquisition does not meet any of the 
criteria listed above. (0 points)
    b. Planning and Implementation. (60 points)
    (i) Suitability of land to be acquired. A preliminary investigation 
has been [[Page 10458]] conducted by a qualified entity independent of 
the applicant. Based on this investigation (which must be submitted 
with the application), the land appears to meet all applicable 
requirements:

--Soil conditions appear to be suitable for individual and/or community 
septic systems or other acceptable methods for waste water collection 
and treatment have been identified.
--The land has adequate:
--Availability of drinking water;
--Access to utilities;
--Vehicular access;
--Drainage.
--The land appears to comply with environmental requirements.
--Future development costs are expected to be consistent with other 
subdivision development costs in the area (subdivision development 
costs include the costs of the land, housing construction, water and 
sewer, electrical service, roads, and drainage facilities if required).

YES  20 points
NO  0 points
    (ii) Housing resources. Evidence of a conditional commitment for 
the housing units to be built on the land proposed for acquisition or 
evidence that an approvable application for these units has been 
submitted has been included in the application. (10 points)
    The evidence required for the award of 10 points has not been 
included in the application. (0 points)
    (iii) Availability/accessibility of supportive services and 
employment opportunities. Documentation is provided in the application 
to indicate that upon completion of construction of the housing to be 
built on the land to be acquired, fire and police protection will be 
available to the site and medical and social services, schools, 
shopping, and employment opportunities will be accessible from the site 
according to the community's established norms.

YES  5 points
NO  0 points
    (iv) Commitment that households will move into the new housing.
    Documented commitment from households that they will move into the 
new housing to be built on the land to be acquired is included in the 
application.

YES  5 points
NO  0 points

    (v) Land can be taken into trust and provisions have been made for 
taxes and fees. There must be a written assurance from the BIA that the 
land will be taken into trust. The applicant must demonstrate the 
financial capability and commitment to pay the property taxes and fees 
on the land for any period of time during which it anticipates it will 
own the property in fee. This commitment must be in the form of a 
resolution by the governing body of the applicant which indicates that 
the applicant will pay or guarantee that all taxes and fees on the land 
will be paid.
    Documentation from the BIA that land can be taken into trust and 
the required governing body resolution are included in the application. 
(5 points)
    Either the assurance or the resolution (or both) are missing from 
the application or they are inadequate. (0 points)
    (vi) A plan or commitment for any infrastructure needed to support 
the housing to be built on the land to be acquired. The plan or 
commitment must address water, waste water collection and treatment, 
electricity, roads, and drainage facilities necessary to support the 
housing to be developed.
    Financial commitments for all necessary infrastructure have been 
included in the application or documentation is included which 
demonstrates that all necessary infrastructure is in place. (10 points)
    A plan for the provision of all necessary infrastructure is 
included in the application but all financial commitments required to 
implement the plan have not been submitted. (5 points)
    Neither a financial commitment or plan are included in the 
application. (0 points)
    (vii) The extent to which the site proposed for acquisition meets 
the housing needs of the applicant and is reasonably priced. The 
application includes documentation which indicates that the applicant 
has examined and assessed the appropriateness of alternative sites and 
which demonstrates that the site proposed for acquisition best meets 
the documented housing needs of tribal households. The applicant must 
submit comparable sales data which shows that the cost of the land 
proposed for acquisition is reasonable.

Yes  5 points
No  0 points
    D. New Housing Construction/Direct Home Ownership Assistance.
    Unless otherwise indicated, the following thresholds and selection 
criteria apply to new housing construction to be implemented through a 
subrecipient as provided for under 24 CFR 570.204 and direct 
homeownership assistance activities authorized under Section 105(a)(20) 
of Title I of the Housing and Community Development Act of 1974 as 
amended by the National Affordable Housing Act (P.L. 101-625). Please 
note that all households to be assisted under a new housing 
construction project or direct homeownership assistance activities must 
be of low or moderate income status.
    (1) Thresholds.
    a. New housing construction can only be implemented through a 
nonprofit organization that is eligible under 24 CFR 953.202 or a 
nonprofit organization serving the development needs of the communities 
of nonentitlement areas or as otherwise eligible under 24 CFR 
570.207(b)(3). (This threshold does not apply to Direct Homeownership 
Activities).
    b. Documentation which supports the following determinations must 
be included in the application:

--No other housing is available in the immediate reservation area that 
is suitable for the households to be assisted;
--No other funding sources can meet the needs of the household(s) to be 
served.
--The unit occupied by the household to be assisted is not in standard 
condition and rehabilitation of the unit is not economically feasible, 
or the household is currently in an overcrowded unit [sharing unit with 
other household(s)], or the household to be assisted has no current 
residence.

    c. All applicants for new housing construction projects shall adopt 
construction standards and construction policies, prior to submitting 
an application. Applicants must identify the building code they will 
comply with when constructing the units. The building code may be a 
locally adopted tribal building code or a nationally recognized model 
code. If the code is a locally adopted code, it must regulate all of 
the areas and sub-areas identified in 24 CFR 200.925(b), and it must be 
reviewed and approved by the field office. If the code is recognized 
nationally, it must be the latest edition of one of the codes 
incorporated by reference in 24 CFR 200.925(c). (This threshold does 
not apply to Direct Homeownership Activities).
    d. Any unit to be constructed must be the permanent non-seasonal 
residence of the household to be assisted. This household must live in 
the unit at least nine months per year.
    (2) Selection Criteria.
    a. Project Need and Design. (45 points)
    (i) The applicant either is not served by an IHA, or if it is a 
member of an umbrella IHA, this IHA has not provided assistance to the 
applicant in [[Page 10459]] a substantial period of time, or the IHA 
serving the applicant has not received HUD Public and Indian Housing 
new construction assistance in a substantial period of time due to 
limited HUD appropriations. The period of time during which the IHA 
serving the applicant does not receive funding for inadequate or poor 
performance by the applicant does not count towards the period of time 
that no assistance has been provided by HUD.

No assistance from IHA for 10 years or longer--15 points
No assistance from IHA for 6-9.9 years--10 points
No assistance from IHA for 0-5.9 years--0 points

    (ii) Adopted housing construction policies and plan. The plan must 
include a description of the proposed subrecipient and its relationship 
to the applicant. In addition, the policies and plan must include:

--A selection system that gives priority to the neediest households. 
Neediest shall be defined as households whose current residences are in 
the greatest disrepair, or very low-income households, or households 
without permanent housing.
--A system effectively addressing long-term maintenance of the 
constructed units.
--Estimated costs and identification of the entity responsible for 
paying utilities, fire hazard insurance and other normal maintenance 
costs.
--Policies governing ownership of the units, including the status of 
the land.
--Description of a comprehensive plan or approach being implemented by 
the tribe to meet the housing needs of its members.
--Policies governing disposition or conversion to non-dwelling uses of 
substandard units that will be vacated when a replacement unit is 
provided.
Acceptable policies and plan--20 points
Unacceptable policies and plan--0 points

    (iii) Beneficiary identification. Households to be assisted are 
identified in the application and their income eligibility is 
documented. (10 points)
    Households to be assisted not identified or, if identified, their 
income eligibility is not documented. (0 points)
    b. Planning and Implementation. (45 points)
    (i) Occupancy Standards. The proposed housing will be designed and 
built according to adopted reasonable standards that govern the size of 
the housing in relation to the size of the occupying household (minimum 
and maximum number of persons allowed for the number of sleeping 
rooms); the minimum and maximum square footage allowed for major living 
spaces (bedrooms, living room, kitchen and dining room). The standards 
must be submitted with the application.
    Applicant has adopted reasonable occupancy standards which are 
included in the application. (10 points)
    Applicant has not adopted reasonable occupancy standards or the 
standards were not included in the application. (0 points)
    (ii) Site Acceptability. The applicant (or the proposed beneficiary 
household) has control of the land upon which the units will be built. 
The applicant has provided documentation from the BIA that all housing 
sites are in trust (or will be taken into trust within one year of the 
date of the ICDBG approval notification). If the sites are not in trust 
by the date of ICDBG approval notification, documentation that they are 
in trust must be provided to the field office before ICDBG funds may be 
obligated for construction.
    A preliminary investigation of the site(s) has been conducted by a 
qualified entity independent of the applicant. Based on this 
investigation (which must be included in the application) the site(s) 
appear to meet all applicable requirements:

--Soil conditions appear to be suitable for individual or community 
septic systems or other acceptable methods for waste water collection 
and treatment have been identified;
--Each site has adequate:
--Availability of drinking water
--Access to utilities
--Vehicular access
--Drainage.

YES  15 points
NO  0 points

    (iii) Energy Conservation Design. The proposed housing units have 
been designed in a manner which will ensure that energy use will be no 
greater than that for comparable units in the same general geographic 
area that have been constructed in accordance with applicable state 
energy conservation standards for residential construction. Any special 
design features, materials, or construction techniques which enhance 
energy conservation must be described.

YES  5 points
NO  0 points

    (iv) Housing Survey. The applicant has completed a survey of 
housing conditions and housing needs of its tribal members. This survey 
was completed within the twelve month period prior to the application 
submission deadline (or if an earlier survey, it was updated during 
this time period). The survey must be submitted with the application. 
The following descriptive data is included for each household surveyed:

--Size of the household, inc. age and gender of any children
--Is the household occupying permanent housing or is it homeless?
--Annual household income
--Owner or renter
--Number of habitable rooms and number of sleeping rooms
--Physical condition of the unit--standard/substandard. If substandard, 
is it suitable for rehabilitation? A definition of ``suitable for 
rehabilitation'' must be included.
--Number of distinct households occupying the unit/degree of 
overcrowding
--If there is a need for a replacement unit, what are the housing 
preferences of the household, e.g. ownership or rental; location; 
manufactured or stick-built.

    An acceptable survey was submitted. (10 points)
    The survey submitted was not acceptable or no survey was submitted. 
(0 points)
    (v) Cost Effectiveness of New Housing Construction. This is a 
measure of how efficiently and effectively funds will be used under the 
proposed program. Applicants must demonstrate how the proposed housing 
activities will be accomplished in an efficient and cost effective 
manner.
    The applicant has demonstrated that the proposed activities are 
cost effective. (5 points)
    The applicant has not demonstrated that the proposed activities are 
cost effective. (0 points)
    c. Leveraging. (10 points)
    Points under this component will be awarded in a manner consistent 
with the definition of ``Leverage'' included in this NOFA and the 
following breakdown:

------------------------------------------------------------------------
              Non-ICDBG percent of project cost                  Points 
------------------------------------------------------------------------
25 and over..................................................         10
20-24.9......................................................          8
15-19.9......................................................          6
10-14.9......................................................          4
 5-9.9.......................................................          2
 0-4.9.......................................................          0
------------------------------------------------------------------------

    2. Community Facilities.
    A. Infrastructure.
    (1) Selection Criteria.
    a. Project Need and Design. (60 points)
    (i) The proposed project meets an essential community development 
need by fulfilling a function that is critical to the continued 
existence or orderly development of the community. [[Page 10460]] 
    The proposed project will fulfill a function which is critical to 
the continued existence or orderly development of the community. (20 
points)
    The proposed project will fulfill a function which is not critical 
to the continued existence or orderly development of the community. (0 
points)
    (ii) The proposed project benefits the neediest segment of the 
population, as identified below. Applications must include tribal, BIA, 
IHS or other documentation that:
    More than 85 percent of the beneficiaries are low and moderate 
income. (15 points)
    Between 75-84.9 percent of the beneficiaries are low and moderate 
income. (10 points)
    Between 55-74.9 percent of the beneficiaries are low and moderate 
income. (5 points)
    Less than 55 percent of the beneficiaries are low and moderate 
income. (0 points)
    (iii) The proposed project will provide infrastructure that does 
not currently exist for the area to be served Or it will eliminate or 
substantially reduce a health or safety threat or problem Or it will 
replace existing infrastructure that no longer functions adequately to 
meet current needs.
    The infrastructure does not exist Or the existing infrastructure no 
longer functions Or the existing infrastructure does not contribute to 
the elimination of, or causes, a verified health or safety threat or 
problem. (25 points)
    The existing infrastructure no longer functions adequately to meet 
current needs Or is unreliable. (20 points)
    The proposed project will replace or supplement existing 
infrastructure which is adequate for current needs but which will not 
meet acknowledged future needs. (12 points)
    The proposed project will replace or supplement existing 
infrastructure which is adequate to meet current needs and future needs 
have not been acknowledged or documented. (0 points)
    If the project is intended to address a health or safety threat or 
problem, the applicant must provide documentation consisting of a 
signed study or letter from a qualified independent authority which 
verifies that:

--A threat to health or safety (or a health or safety problem) exists 
which has caused or has the potential to cause serious illness, injury, 
disease, or death; and,
--The threat or problem can be completely or substantially eliminated 
if the proposed project is undertaken.
    b. Planning and Implementation. (30 points)
    (i) A viable plan for maintenance and operation. If the applicant 
is to assume responsibility for maintenance and operation of the 
proposed facility, the applicant must adopt a maintenance and operation 
plan which addresses maintenance, repair and replacement of items not 
covered by insurance, and operating responsibilities and resources. 
This plan and the adopting resolution must be included in the 
application. The plan must identify a funding source to ensure that the 
facility will be properly maintained and operated. The resolution 
adopting the plan must identify the total annual dollar amount the 
applicant will commit.
    If an entity other than the applicant commits to pay for 
maintenance and operation, a letter of commitment which identifies the 
responsibilities the entity will assume must be included in the 
application; submission of a maintenance and operation plan is not 
required. Points will only be awarded if the field office is able to 
determine that the entity is financially able to assume the costs of 
maintenance and operation.
    An acceptable maintenance and operation plan and adopting 
resolution (or letter of commitment) are included in the application. 
(15 points)
    The plan, resolution or the commitment letter have not been 
included in the application or if included they are not acceptable. (0 
points)
    c. An appropriate and effective design, scale and cost. The 
application includes information which demonstrates that the proposed 
project is the most appropriate and cost effective approach to address 
the identified need. This information demonstrates that the use of 
existing facilities and resources, and alternatives, including method 
of implementation and cost, have been considered. If only one approach 
is feasible (there are no alternatives to the proposed project), the 
application must include an explanation.
    The required information is included in the application. (15 
points)
    The required information is not included in the application or, if 
included, it is unacceptable. (0 points)
    d. Leveraging. (10 points)
    Points under this component will be awarded in a manner consistent 
with the definition of ``Leverage'' included in this NOFA and the 
following breakdown.

------------------------------------------------------------------------
              Non-ICDBG percent of project cost                  Points 
------------------------------------------------------------------------
25 and over..................................................         10
20-24.9......................................................          8
15-19.9......................................................          6
10-14.9......................................................          4
 5-9.9.......................................................          2
 0-4.9.......................................................          0
------------------------------------------------------------------------

    B. Buildings.
    (1) Threshold. An applicant proposing a facility which would 
provide health care services must include in its application a letter 
from the Indian Health Service (IHS) which indicates that the proposed 
facility meets IHS requirements.
    (2) Selection Criteria.
    a. Project Need and Design. (60 points)
    (i) The proposed building meets an essential community development 
need by providing space so that a service or function which is critical 
to the continued existence or orderly development of the community can 
be provided.
    The proposed building will provide space for a service or function 
which is essential to the continued existence or orderly development of 
the community. (20 points)
    The proposed building will provide space for a service or function 
which is not critical to the continued existence or orderly development 
of the community. (0 points)
    (ii) The proposed project benefits the neediest segment of the 
population, as identified below. Applications must include tribal, BIA, 
IHS or other documentation that:
    More than 85 percent of the beneficiaries are low and moderate 
income. (10 points)
    Between 75-84.9 percent of the beneficiaries are low and moderate 
income. (8 points)
    Between 55-74.9 percent of the beneficiaries are low and moderate 
income. (5 points)
    Less than 55 percent of the beneficiaries are low and moderate 
income. (0 points)
    (iii) The proposed building will be used to provide services or 
functions which are not provided to service area beneficiaries Or it 
will replace a building currently used to provide the service or 
function which does not meet health or safety standards Or it will 
replace a building which is no longer able to provide the space or 
amenities to meet the current need for the services or functions.
    The services or functions to be provided in the proposed building 
do not exist for the service area population Or the building currently 
being used [[Page 10461]] does not meet health or safety standards. (25 
points)
    The building to be replaced by the proposed building is not able to 
provide the space or amenities for the services or functions so that 
current needs cannot be entirely met. (20 points)
    The building to be replaced is able to provide adequate space and 
current needs are being met but it cannot provide space for 
acknowledged future needs. (10 points)
    The proposed building is not necessary since current needs and 
acknowledged future needs can be met through the use of existing 
facilities. (0 points)
    (If the proposed building is intended to replace an existing 
building which does not meet health or safety standards, the 
application must include documentation consisting of a signed letter 
from a qualified independent authority which specifically identifies 
the standard or standards which are not being met by the existing 
building.)
    (iv) Provides multiple uses or multiple benefits, or has services 
available 24 hours a day. The application must show that the proposed 
building will house more than one broad category of activity. ``Broad 
category'' means a single activity or group of activities which serves 
a particular group of beneficiaries (e.g., senior citizens) or meets a 
particular need (e.g., literacy). No one category of activity will 
occupy more than 75 percent of the available space for more than 75 
percent of the time. A written commitment for the use of the space must 
be included in the application. Multipurpose buildings do not 
automatically meet these criteria, nor do buildings that provide a 
variety of activities for one client group.
    The proposed building will provide multiple uses or benefits or 
will have services available 24 hours/day and a commitment for the use 
of the space is included in the application. (5 points)
    The proposed building will not provide multiple benefits or 
services or will not have services available 24 hours a day or the 
application does not include a commitment for the use of the space. (0 
points)
    b. Planning and Implementation. (30 points)
    (i) A viable plan for maintenance and operation. If the applicant 
is to assume responsibility for the maintenance and operation of the 
proposed building, the applicant must adopt a maintenance and operation 
plan which addresses maintenance, repair and replacement of items not 
covered by insurance, and operating responsibilities and resources. 
This plan and the adopting resolution must be included in the 
application. The plan must identify a funding source to ensure that the 
building will be properly maintained and operated. The resolution 
adopting the plan must identify the total annual dollar amount the 
applicant will commit.
    If an entity other than the Tribal Council commits to pay for 
maintenance and operation, a letter of commitment which identifies the 
responsibilities the entity will assume must be included in the 
application; submission of a maintenance and operation plan is not 
required. Points will only be awarded if the field office is able to 
determine that the entity is financially able to assume the costs of 
maintenance and operation.
    An acceptable maintenance and operation plan and adopting 
resolution (or letter of commitment) are included in the application. 
(15 points)
    The plan, resolution or the commitment letter have not been 
included in the application, or if included, they are not acceptable. 
(0 points)
    (ii) An appropriate and effective design, scale and cost. The 
application includes information which demonstrates that the proposed 
building is the most appropriate and cost effective approach to address 
the identified need(s). This information demonstrates that the use of 
existing facilities and resources and alternatives including method of 
implementation and cost have been considered. If only one approach is 
feasible (there are no alternatives to the proposed building), the 
application must include an explanation.
    The required information is included in the application. (15 
points)
    The required information is not included in the application or, if 
included, it is unacceptable. (0 points)
    c. Leveraging. (10 points).
    Points under this component will be awarded based on the definition 
of ``Leverage'' included in this NOFA and the following breakdown:

------------------------------------------------------------------------
              Non-ICDBG percent of project cost                  Points 
------------------------------------------------------------------------
25 or more...................................................         10
20-24.9......................................................          8
15-19.9......................................................          6
10-14.9......................................................          4
5-9.9........................................................          2
0-4.9........................................................          0
------------------------------------------------------------------------

    3. Economic Development.
    A. Thresholds.
    (1) Economic development assistance may be provided only when a 
financial analysis is done which shows public benefit commensurate with 
the assistance to the business can reasonably be expected to result 
from the assisted project, and the project has a reasonable chance of 
success. The applicant shall demonstrate the need for grant assistance 
by providing documentation to support a determination that the 
assistance is appropriate to implement an economic development project.
    (2) All economic development projects must meet one of the national 
objectives. A general claim of cash flow or benefit to the tribe as a 
whole does not demonstrate benefit to low and moderate income persons.
    B. Selection Criteria.
    (1) Organization (8 points)
    The application contains all of the following three elements:

--The applicant has an established organization system for operation of 
a business, (e.g., adopted tribal ordinances, articles of 
incorporation, Board of Directors in place, tribal department).
--Formal provisions exist for separation of government functions from 
business operating decisions. An operating plan has been established 
and is submitted.
--The Board of Directors consists of persons who have prior business 
experience. A staffing plan has been developed and is submitted. (8 
points)
    The application contains all of the first element listed above, and 
some of the items in the second and third elements. The business should 
be able to operate effectively; OR, the application contains all of the 
elements listed above, but in insufficient detail. (5 points)
    The application does not contain any of the elements listed above. 
(0 points)
    (2) Project Success (45 points)
    The project will be rated on the adequacy and quality of the 
following subparts: ANY PROJECT NOT RECEIVING AT LEAST MODERATE POINTS 
IN EACH OF THE FOLLOWING THREE RATING FACTORS WILL NOT BE CONSIDERED 
FOR FUNDING.
    a. Market analysis.
    A feasibility/market analysis, generally not older than two years, 
which identifies the market and demonstrates that the proposed 
activities are highly likely to capture a fair share of the market. The 
analysis must be submitted with the application.

MAXIMUM  15 points

    Feasibility/Market Analysis which identifies the market and 
demonstrates that the proposed activities are reasonably likely to 
capture a fair share of the market. The analysis must be submitted with 
the application.

 [[Page 10462]] MODERATE  10 points

    The submission does not meet the criteria for the award of moderate 
points.

UNSATISFACTORY  0 points

    b. Management capacity.
    A management team with qualifying specialized training or 
technical/managerial experience in the operation of a similar business 
has been identified. Job descriptions of key management positions as 
well as resumes showing qualifying specialized technical/managerial 
training or experience of the identified management team must be 
submitted with the application.

MAXIMUM  15 points

    A management team with qualifying general business training or 
experience will be hired if the grant is approved. Job descriptions of 
key management positions must be submitted with the application.

MODERATE  12 points

    The submission does not meet the criteria for the award of moderate 
points.

UNSATISFACTORY  0 points

    c. Financial Analysis of the Business (including microenterprises). 
The financial viability of an economic development project will be 
determined by an analysis of financial and other project related 
information. Components of the financial analysis are: costs, sources 
of funds, cash flow projections and financial statements. A detailed 
cost summary, evidence of funding sources; five year operating or cash 
flow financial projections; and business financial statements for the 
most recent three year period for the project if it is for expansion of 
an existing business, must be submitted with the application. For 
start-up businesses that are not owned by the grantee, current 
financial or net worth statements on principal business owners or 
officers must be submitted with the application. Financial statements 
include the balance sheet, income statement and statement of retained 
earnings.
    The information derived from the analysis will be reviewed and 
compared to local or national industry standards to assess 
reasonableness of development costs, financial need, profitability, and 
risk as factors in determining overall financial viability. In 
determining whether a project is financial viable, the field office 
will also consider current and projected market conditions and 
profitability measures such as cash flow return on equity, cash flow 
return on total assets and the ratio of net profit before taxes to 
total assets. Sources of industry standards include Marshall and Swift 
Publication Company, Robert Morris Associates, Dun and Bradstreet, the 
Chamber of Commerce, etc. Local standards may also be used. If one of 
these standards is cited, the appropriate data must be submitted with 
the application.
    Based on the analysis, the project has an excellent chance of 
achieving financial success.

MAXIMUM  15 points

    The project has an average chance of achieving financial success.

MODERATE  8 points

    The project has a minimal prospect of achieving financial success.

UNSATISFACTORY  0 points
    (3) Leveraging.
    Points under this component will be awarded in a manner consistent 
with the definition of ``Leverage'' included in this NOFA and the 
following breakdown:

------------------------------------------------------------------------
              Non-ICDBG percent of project cost                  Points 
------------------------------------------------------------------------
30% or more..................................................         12
20-29.9%.....................................................          8
10-19.9%.....................................................          4
Less than 10%................................................          0
------------------------------------------------------------------------

    (4) Permanent Full-Time Equivalent Job Creation and Training (20 
points)
    The total number of permanent full-time equivalent jobs expected to 
be created and/or retained as a result of the project as well as a 
summary of job descriptions and skill requirements must be submitted 
with the application. The number and kind(s) of jobs expected to be 
available to low and moderate income persons must be identified.
    a. ICDBG cost per job:

$20,000 or less--15 points
$20,001-30,000--12 points
$30,001-35,000--8 points
$35,001+--0 points

    b. Quality of jobs and/or training targeted to low and moderate 
income persons

--The jobs offer wages and benefits comparable to area wages and 
benefits for similar jobs, provide opportunity for advancement, and 
teach a transferable skill; OR
--The employer commits to provide training opportunities. A description 
of the planned training program must be submitted with the application.

YES  5 points
NO  0 points

    (5) Additional Considerations (15 points) A project must meet three 
of the following criteria to receive 15 points. Maximum 15 points.

--Use, improve or expand members' special skills. Special skills are 
those that members have developed through education, training or 
traditional cultural experiences (e.g., technical expertise in 
electronic assembly; making traditional native crafts).

YES  5 points
NO  0 points

--Provide spin-off benefits beyond the initial economic development 
benefits to employees or to the community.

YES  5 points
NO  0 points

--Provide special opportunities for residents of federally-assisted 
housing.

YES  5 points
NO  0 points

--Provide benefits to other businesses owned by Indians or Alaska 
natives.

YES  5 points
NO  0 points

--Loan Repayment/Reuse of ICDBG funds. If the business is not tribal-
owned, at least 50% of the ICDBG assistance to the business will be 
repaid to the grantee within a 10 year period. If the business is 
tribal-owned, the tribe agrees (by submission of a tribal resolution) 
within a 10 year period to use funds equal to 50% of the ICDBG 
assistance for eligible activities that meet a national objective. 
These funds should come from the profits of the tribal-owned business.

YES  5 points
NO  0 points

4. Selection System Criteria and Point Award Summary

                                                                        
                                                               Maximum  
                                                                points  
                                                                        
A. Housing:                                                             
  (1) Rehabilitation:                                                   
    a. Project Need and Design:                                         
        (i) % of funds for standard rehab..................           20
        (ii) applicant's selection criteria................           10
[[Page 10463]]                                                          
                                                                        
        (iii) housing survey...............................           15
    b. Planning and Implementation:                                     
        (i) rehabilitation policies:                                    
          a rehabilitation standards.......................            5
          b selection criteria.............................           10
          c project planning documents, etc................           10
        (ii) post rehabilitation maintenance...............            5
        (iii) cost estimates...............................           15
        (iv) cost effectiveness............................            5
                                                                        
                                                            ------------
            Total points...................................          100
    (2) Land to Support New Housing:.......................             
    a. Project Need........................................           40
    b. Planning and Implementation:                                     
        (i) suitability of the land........................           20
        (ii) housing resources.............................           10
        (iii) supportive services..........................            5
        (iv) commitment of households......................            5
        (v) land to trust status...........................            5
        (vi) infrastructure commitment.....................           10
        (vii) land meets need and is reasonably priced.....            5
                                                                        
                                                            ------------
            Total points...................................          100
    (3) New Housing Construction/Direct Homeownership                   
     Assistance:...........................................             
    a. Project Need and Design:                                         
        (i) IHA member/assistance..........................           15
        (ii) housing policies and plan.....................           20
        (iii) beneficiary identification...................           10
    b. Planning and Implementation:                                     
        (i) occupancy standards............................           10
        (ii) site acceptability............................           15
        (iii) energy conservation design...................            5
        (iv) housing survey................................           10
        (v) cost effectiveness.............................            5
    c. Leveraging..........................................           10
                                                                        
                                                            ------------
            Total points...................................          100
B. Community Facilities:                                                
  (1) Infrastructure:                                                   
    a. Project Need and Design:                                         
        (i) meets an essential need........................           20
        (ii) benefits the neediest.........................           15
        (iii) provides infrastructure/health and safety....           25
    b. Planning and Implementation:                                     
        (i) maintenance and operation plan.................           15
        (ii) appropriate and effective design scale and                 
         cost..............................................           15
    c. Leveraging..........................................           10
                                                                        
                                                            ------------
            Total Points...................................          100
  (2) Buildings:                                                        
    a. Project Need and Design:                                         
        (i) meets an essential need........................           20
        (ii) benefits the neediest.........................           10
        (iii) provides building/health and safety..........           25
        (iv) multi-use/multi-benefit.......................            5
    b. Planning and Implementation:                                     
        (i) maintenance and operation plan.................           15
        (ii) appropriate and effective design scale and                 
         cost..............................................           15
                                                                        
                                                            ------------
            Total points...................................          100
C. Economic Development:                                                
    (1) Organization.......................................            8
    (2) Project Success:                                                
        a. market analysis.................................           15
        b. management capacity.............................           15
        c. financial analysis..............................           15
    (3) Leveraging.........................................           12
    (4) Jobs:                                                           
        a. ICDBG cost/job..................................           15
        b. quality of jobs/training........................            5
    (5) Additional considerations..........................           15
                                                                        
                                                            ------------
            Total points...................................          100
                                                                        

[[Page 10464]] II. Application Process

    (a) An application package may be obtained from the field office in 
the following geographic locations:

Eastern Woodland Office of Native American Programs, Housing and 
Community Development Division, 77 West Jackson Blvd., Chicago, 
Illinois 60604-3507, Telephone: (312) 353-1282, (all states east of the 
Mississippi River, plus Iowa and Minnesota)

Southern Plains Office of Native American Programs, CPD Branch, Murrah 
Federal Bldg., 200 N.W. 5th Street, Oklahoma City, OK 73102-3202, 
Telephone: (405) 231-4101, (Louisiana, Kansas, Oklahoma, and Texas, 
except West Texas)

Northern Plains Office of Native American Programs, Housing and 
Community Development Division, CPD Staff, First Interstate Tower 
North, 633 17th Street, Denver, CO 80202-3607, Telephone: (303) 672-
5462, (Colorado, Montana, Nebraska, North Dakota, South Dakota, Utah 
and Wyoming)

Southwest Office of Native American Programs, Region IX, CPD Division, 
Two Arizona Center, Suite 1650, 400 N. Fifth Street, Phoenix, Arizona 
85004-2361, Telephone: (602) 379-4156, (Arizona, New Mexico, Southern 
California, West Texas)

Office of Native American Programs, CPD Division, Program Management 
Team, (San Francisco), Phillip Burton Federal Bldg. and U.S. 
Courthouse, 450 Golden Gate Ave., P.O. Box 36003, San Francisco, CA 
94102-3448, Telephone: (415) 556-9200, (Northern California and Nevada)

Northwest Office of Native American Programs, CPD Division, Federal 
Office Building, 909 First Avenue, Suite 300, Seattle, WA 98104-1000, 
Telephone: (206) 220-5185, (Idaho, Oregon, Washington)

Alaska Office of Native American Programs, 949 E. 36th Avenue, Suite 
401, Anchorage, AK 99508-4399, Telephone: (907) 271-4633 (Alaska)

    (b) Completed applications must be submitted to the appropriate 
field office, listed above, from which application information and 
packages were obtained.
    The Telecommunications Device for the Deaf (TDD) number is (202) 
708-2565. (This is not a toll-free number.)
    (c) Applications must be received by the appropriate field office 
no later than the 3:00 P.M. on the deadline date, May 14, 1995.

III. Application Submission Requirements and Checklist

    (a) General. An applicant shall submit only one application. The 
ICDBG grant amount requested shall not total more than the grant 
ceiling. An application may include an unlimited number of eligible 
projects, e.g., housing or public facilities. Each project within an 
application will be rated separately.
    (b) Demographic data. Applicants may submit data that are 
unpublished and not generally available in order to meet the 
requirements of this section. The applicant must certify that:
    1. Generally available, published data are substantially inaccurate 
or incomplete;
    2. Data provided have been collected systematically and are 
statistically reliable;
    3. Data are, to the greatest extent feasible, independently 
verifiable; and
    4. Data differentiate between reservation and BIA service area 
populations, when applicable.
    (c) Publication of community development statement. Applicants 
shall prepare and publish or post the community development statement 
portion of their application according to the citizen participation 
requirements of 24 CFR 953.604.
    (d) Application Submission. Applicants shall submit an application 
to the appropriate field office. The application shall include:
    1. Standard Form 424;
    2. Community Development Statement which includes:
    A. Components that address the relevant selection criteria;
    B. A brief description or an updated description of community 
development needs;
    C. A brief description of proposed projects to address needs, 
including scope, magnitude, and method of implementing the project.
    D. A schedule for implementing the project (form HUD-4125);
    E. Cost information for each separate project, including specific 
activity costs, administration, planning, and technical assistance, 
total HUD share (form HUD-4123);
    3. Certifications (form HUD 4126)
    4. Applicant/Recipient Disclosure/Update Report (form HUD 2880), as 
required under subpart C of 24 CFR part 12, Accountability in the 
Provision of HUD Assistance.
    5. A map showing project location, if appropriate;
    6. If the proposed project will result in displacement or temporary 
relocation, include a statement that identifies A. the number of 
persons (families, individuals, businesses and nonprofit organizations 
occupying the property on the date of the submission of the application 
(or date of initial site control, if later); B. the number to be 
displaced or temporarily relocated; C. the estimated cost of relocation 
payments and other services; D. the source of funds for relocation; and 
E. the organization that will carry out the relocation activities;
    (e) Pre-award requirements. 1. Successful applicants may be 
required to provide supporting documentation concerning the management, 
maintenance, operation, or financing of proposed projects before a 
grant agreement can be executed. Applicants will normally be given no 
less than thirty (30) calendar days, to respond to such requirements. 
In the event that no response or an insufficient response is made 
within the prescribed time period, the field office may determine that 
the applicant has not met the requirements and the grant offer may be 
withdrawn. The field offices shall require supporting documentation in 
those instances where:
    A. Specific questions remain concerning the scope, magnitude, 
timing, or method of implementing the project; or
    B. The applicant has not provided information verifying the 
commitment of other resources required to complete, operate, or 
maintain the proposed project.
    2. Grant amounts allocated for applicants unable to meet pre-award 
requirements will be awarded in accordance with Part I (f) 5 of this 
NOFA.
    3. New projects may not be substituted for those originally 
proposed in the application.
    4. If the required conditions are not met within the prescribed 
time, HUD may unilaterally rescind the grant award.

IV. Procedural Error and Appeals

    With respect to any claims of procedural error that may be made by 
unsuccessful applicants, please note that a procedural error is, by 
definition, an error in process. An example is a point calculation 
error which would, if corrected, raise the total point award for a 
project over the cut-off point for funding. Rating panel judgements 
made within the provisions of this NOFA and the program regulations (24 
CFR part 953) are not subject to claims of procedural error. If a field 
office makes a procedural error in the application review and rating 
process which, when corrected, would result in the award of sufficient 
points to warrant the funding [[Page 10465]] of an otherwise approvable 
project, the field office may fund that project in the next funding 
round without further competition. All appeals must be submitted to the 
appropriate field office within 90 days after the applicant is notified 
in writing of a funding decision.

V. Other Matters

    (a) Environmental Statement. A Finding of No Significant Impact 
with respect to the environment has been made in accordance with HUD 
regulations at 24 CFR part 50, which implement section 102(2)(C) of the 
National Environmental Policy Act of 1969. The Finding of No 
Significant Impact is available for public inspection between 7:30 a.m. 
and 5:30 p.m. weekdays in the Office of the Rules Docket Clerk, Office 
of the General Counsel, Department of Housing and Urban Development, 
Room 10276, 451 Seventh Street, S.W., Washington, D.C. 20410.
    (b) Federalism Executive Order. 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. 
While the NOFA will provide financial assistance to Indian tribes and 
Alaska native villages, none of its provisions will have an effect on 
the relationship between the Federal Government and the states or their 
political subdivisions.
    (c) Family Executive Order. The General Counsel, as the Designated 
Official for Executive Order 12606, The Family, has determined that the 
policies announced in this NOFA would not have the potential for 
significant impact on family formation, maintenance and general well-
being and thus is not subject to review under the Order.
    (d) Registration of Consultants. Section 13 of the Department of 
Housing and Urban Development Act contains two provisions dealing with 
efforts to influence HUD's decisions with respect to financial 
assistance. The first imposes disclosure requirements on those who are 
typically involved in these efforts--those who pay others to influence 
the award of assistance or the taking of a management action by the 
Department and those who are paid to provide the influence. The second 
restricts the payment of fees to those who are paid to influence the 
award of HUD assistance, if the fees are tied to the number of housing 
units received or are based on the amount of assistance received, or if 
they are contingent upon the receipt of assistance.
    Section 13 was implemented by final rule published in the Federal 
Register on May 17, 1991 (56 FR 22912), and is codified as 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.
    Any questions regarding the statute described above should be 
directed to the Director, Office of Ethics, Room 2158, Department of 
Housing and Urban Development, 451 Seventh Street, S.W., Washington, 
D.C. 20410. Telephone: (202) 708-3815; TDD/Voice. (This is not a toll-
free number.) Forms necessary for compliance with the rule may be 
obtained from the local HUD office.
    (e) Prohibition of Advance Disclosure of Funding Decisions. HUD's 
regulation implementing section 103 of the Department of Housing and 
Urban Development Reform Act of 1989 was published May 13, 1991 (56 FR 
22088) and became effective on June 12, 1991. That regulation, codified 
as 24 CFR part 4, applies to the funding competition announced today. 
The requirements of the rule continue to apply until the announcement 
of the selection of successful applicants.
    HUD employees involved in the review of the applications and in the 
making of funding decisions are restrained by part 4 from providing 
advance information to any person (other than an authorized employee of 
HUD) concerning funding decisions, or from otherwise giving any 
applicant an unfair competitive advantage. Persons who apply for 
assistance in this competition should confine their inquiries to the 
subject areas permitted under 24 CFR part 4.
    Applicants who have questions should contact the HUD Office of 
Ethics (202) 708-3815. (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.
    (f) Economic Opportunities for Low and Very Low Income Persons. All 
applicants are herein notified that the provisions of section 3 of the 
Housing and Urban Development Act of 1968, as amended, and the 
regulations in 24 CFR part 135 are applicable to funding awards made 
under this NOFA. One of the purposes of the assistance is to give to 
the greatest extent feasible, and consistent with existing Federal, 
State, and local laws and regulations, job training, employment, 
contracting and other economic opportunities to section 3 residents and 
section 3 business concerns. Tribes that receive HUD assistance 
described in this part shall comply with the procedures and 
requirements of this part to the maximum extent consistent with, but 
not in derogation of, compliance with section 7(b) of the Indian Self-
determination and Education Assistance Act (25 U.S.C. 450e(b).

    Authority: Title I, Housing and Community Development Act of 
1974, as amended (42 U.S.C. 5301 et seq.); sec. 7(d) of the 
Department of Housing and Urban Development Act (42 U.S.C. 3535(d)); 
24 CFR 953.

    Dated: February 8, 1995.
Michael B. Janis,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 95-4451 Filed 2-25-95; 8:45 am]
BILLING CODE 4210-33-P