[Federal Register Volume 60, Number 42 (Friday, March 3, 1995)]
[Notices]
[Pages 12036-12093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5184]




[[Page 12035]]

_______________________________________________________________________

Part II





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Public and Indian Housing



_______________________________________________________________________



NOFA for the Rental Voucher Program and Rental Certificate Program; 
Notice

Federal Register / Vol. 60, No. 42 / Friday, March 3, 1995 / 
Notices 
[[Page 12036]] 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing
[Docket No. N-95-3874; FR-3849-N-01]


NOFA for the Rental Voucher Program and Rental Certificate 
Program

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

ACTION: Notice of fund availability (NOFA) for FY 95 and procedures for 
allocating funds and approving housing agency (HA) applications.

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

SUMMARY: The purpose of the rental voucher and the rental certificate 
programs is to assist eligible families to pay the rent for decent, 
safe, and sanitary housing. This notice states the FY 95 fund 
allocations available for award for all subprograms of the rental 
voucher and rental certificate programs. The Department has decided in 
the interest of convenience and timeliness to publish all information 
on each subprogram of the Section 8 rental voucher and certificate 
programs in one NOFA for FY 95. Please review the table of contents in 
this NOFA and then refer to the separate sections of this NOFA for 
specific information on each subprogram. For ease of reference, the 
term ``HUD Office'' will be used throughout this NOFA to mean the HUD 
State Office, HUD Area Office and the HUD Native American Programs 
Office. If a particular type of HUD Office needs to be identified, 
e.g., the HUD Native American Programs Office, the appropriate office 
name will be used.
    This notice also:
    (1) Invites Public Housing Agencies (PHAs) and Indian Housing 
Authorities (IHAs), herein referred to as housing agencies (HAs), to 
submit applications for housing assistance funds;
    (2) Provides instructions to HAs governing the submission of 
applications; and
    (3) Describes procedures for rating, ranking, and approving HA 
applications.

DATES: Refer to Section I.(B) of this NOFA for a summary of the 
deadline dates for applications for all subprogram applications.

ADDRESSES: See section I.(B) of this NOFA.

FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Director, Operations 
Branch, Rental Assistance Division, Office of Public and Indian 
Housing, Room 4220, Department of Housing and Urban Development, 451 
Seventh Street, S.W., Washington, D.C. 20410-8000, telephone (202) 708-
0477. Hearing- or speech-impaired individuals may call HUD's TDD number 
(202) 708-4594. (These telephone numbers are not toll-free.) Copies of 
this NOFA will be made available on tape or large print for those with 
impaired vision that request them. Inquiries requesting clarification 
of items in this NOFA or requesting application materials should be 
directed to the Public Housing Director in the HUD Office serving the 
HA's jurisdiction.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The information collection requirements contained in this notice 
have been approved by the Office of Management and Budget (OMB), under 
section 3504(h) of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-
3520), and have been assigned OMB control number 2577-0169.

Table of Contents

I. NOFA General
    (A) Authority
    (B) Subprogram Funding and Summary of Application Deadline Dates
    (C) Family Self-Sufficiency (FSS) Program Requirement
    (D) Application Submission Requirements--General
    (E) Selection Criteria--General
    (F) Local Government Comments
    (G) Corrections to Deficient Applications--General
    (H) HUD Corrections to Rating and Ranking FY 94 Applications
    (I) Notification of Funds Awarded
II. Fair Share Allocations
    (A) Fair Share Application Deadline Date
    (B) Fair Share Allocation Amounts
    (C) Fair Share Application Submission Requirements
    (D) Fair Share Application Rating Process
    (E) Corrections to Deficient Fair Share Applications
    (F) Fair Share Application Selection Process
III. Family Unification/Foster Care Program
    (A) Family Unification Application Deadline Date
    (B) Purpose and Substantive Description of Family Unification 
Program
    (C) Family Unification Allocation Amounts
    (D) Family Unification Application Submission Requirements
    (E) Family Unification Application Rating Process
    (F) Corrections to Deficient Family Unification Applications
    (G) Family Unification Application Selection Process
IV. Family Self-Sufficiency (FSS) Service Coordinators
    (A) FSS Service Coordinators Application Deadline Date
    (B) Purpose and Substantive Description of Funding for FSS 
Service Coordinators
    (C) FSS Service Coordinators Allocation Amounts
    (D) FSS Service Coordinators Application Submission Requirements
    (E) Corrections to Deficient FSS Service Coordinators 
Applications
    (F) Application Selection Process for FSS Service Coordinators
V. Section 8 Counseling
    (A) Application Deadline Date for Section 8 Counseling
    (B) Purpose and Substantive Description of Section 8 Counseling
    (C) Allocation Amounts for Section 8 Counseling
    (D) Application Submission Requirements for Section 8 Counseling
    (E) Corrections to Deficient Applications for Section 8 
Counseling
    (F) Application Selection Process for Section 8 Counseling
VI. NOFA for Mainstream Housing Opportunities for Persons With 
Disabilities (Mainstream Program)
    (A) Mainstream program Application Deadline Date
    (B) Purpose and Substantive Description or Mainstream Program
    (C) Mainstream Program Allocation Amounts
    (D) Application Submission Requirements for Mainstream Program 
in Conjunction With Submission of Designated Housing Allocation 
Plans
    (E) Application Submission Requirements for General Mainstream 
Program for Persons With Disabilities
    (F) Corrections to Deficient Applications
    (G) Mainstream Program Application Selection Process
VII. Subprogram for Persons With HIV/AIDS
    (A) Application Deadline Date for Persons With HIV/AIDS 
Subprogram
    (B) Purpose and Substantive Description of Subprogram for 
Persons With HIV/AIDS
    (C) Allocation Amounts for Persons With HIV/AIDS
    (D) Application Submission Requirements for Persons With HIV/
AIDS Subprogram
    (E) Corrections to Deficient Applications for Persons With HIV/
AIDS Subprogram
    (F) Application Selection Process for Persons With HIV/AIDS 
Subprogram
VIII. Subprogram for Homeless Families
    (A) Application Deadline Date for Homeless Families Subprogram
    (B) Purpose and Substantive Description of Homeless Families 
Subprogram
    (C) Allocation Amounts for Homeless Families Subprogram
    (D) Application Submission Requirements for Homeless Families 
Subprogram
    (E) Corrections to Deficient Applications for Homeless Families 
Subprogram
    (F) Application Selection Process for Homeless Families 
Subprogram
IX. Other Allocations
    (A) Relocation, Demolition and Disposition (HOPE I, II, Section 
5(h), Section 18. HOPE VI and ``OPT-OUTS''
    (B) Rental Voucher and Rental Certificate Renewals
    (C) Section 23 Conversions
    (D) Section 8 Amendments
    (E) Housing Agency Portability Fees
    (F) Headquarters Reserve
    (G) Property Disposition
    (H) FY 94 NOFA for Homeless Person With Disabilities 
[[Page 12037]] 
    (I) FY 94 NOFA for Homeless Veterans With Severe Psychiatric or 
Substance Abuse Disorders
    (J) FY 94 NOFA for Family Unification
    (K) FY 94 NOFA for FSS Service Coordinators
X. Other Matters
    (A) Environmental Impact
    (B) Federalism Impact
    (C) Impact on the Family
    (D) Section 102 of the HUD Reform Act: Documentation and Public 
Access Requirements
    (E) Section 103 of the HUD Reform Act
    (F) Prohibition Against Lobbying Activities
    (G) Section 112 of the HUD Reform Act

I. NOFA General

(A) Authority

    The regulations governing the rental certificate and the rental 
voucher programs are published at 24 CFR parts 882 and 887, 
respectively, and 24 CFR Part 982. The regulations for allocating 
housing assistance budget authority under section 213(d) of the Housing 
and Community Development Act of 1974 are published at 24 CFR part 791, 
subpart D.

(B) Subprogram Funding and Summary of Application Deadline Dates

    The application deadline for each subprogram under this NOFA is 
3:00 p.m., local time. The local HUD Office is the official place of 
receipt for all applications on the date shown below except for 
applications for Section 8 Counseling (see Section V. of this NOFA). 
The local HUD Native American Programs Office is the place of official 
receipt for IHA applications except for applications for Section 8 
Counseling (see Section V. of this NOFA). An IHA also must submit, at 
the same time, a copy of its application to the local HUD State or Area 
Office that has jurisdiction over the portion of the State in which the 
IHA is located. Local HUD Offices are responsible for notifying their 
HAs of the exact address and room number where applications are to be 
submitted.

------------------------------------------------------------------------
                                          Number of                     
            Subprogram area                 units        Deadline dates 
                                        (approximate)                   
------------------------------------------------------------------------
Fair Share Allocations................       35,000    May 2, 1995.     
Mainstream Housing....................        2,500    June 1, 1995.    
Homeless Families (Non-competitive           12,000        Do.          
 Process).                                                              
Persons with AIDS (Non-competitive            3,000        Do.          
 Process).                                                              
Section 8 Counseling..................          N/A    May 2, 1995.     
FSS Service Coordinators..............          N/A    May 17, 1995.    
Family Unification....................        2,000        Do.          
------------------------------------------------------------------------

    The above-stated application deadlines are firm as to date and 
hour. In the interest of fairness to all competing HAs, HUD will treat 
as ineligible for consideration any application that is not received 
before the application deadline. Applicants should take this practice 
into account and make early submission of their materials to avoid any 
risk of loss of eligibility brought about by unanticipated delays or 
other delivery-related problems. HUD will not accept, at any time 
during the NOFA competition, application materials sent via facsimile 
(FAX) transmission.
    Other allocations of Section 8 funds, including the FY 94 funding 
and those allocations without specific application deadlines, are 
listed in Section IX. of the NOFA.

(C) Family Self-Sufficiency (FSS) Program Requirement

    Unless specifically exempted by HUD, all rental voucher or rental 
certificate funding reserved in FY 95 (except funding for renewals or 
amendments) will be used to establish the minimum size of an HA's FSS 
program.

(D) Application Submission Requirements--General

(1) General
    The provisions of this section I apply to all subprograms covered 
by this NOFA. Applications must meet the requirements of this section I 
as well as the requirements for each subprogram as shown in the 
pertinent section of this NOFA for the subprogram. Refer to the 
subprogram section for the specific application submission 
requirements.
    Except as provided for Indian Housing Authorities or unless 
otherwise specified for a subprogram, only an original application and 
one copy should be submitted. It is not necessary to submit additional 
copies of the application.
(2) Application Procedures for HUD-Designated Housing Agencies with 
Major Program Findings
    HUD will establish a pass or fail threshold for all HAs and those 
HAs that fail the threshold will not be eligible to apply without a 
contract administrator. Some housing agencies currently administering 
the Section 8 rental voucher and certificate programs have, at the time 
of publication of this NOFA, major program management findings that are 
open and unresolved or other significant program compliance problems 
(e.g., HA has not implemented mandatory FSS program). HUD will not 
accept applications for additional funding from these HAs as contract 
administrators if, on the application deadline date, the findings are 
not closed to HUD's satisfaction. If these HAs want to apply for any of 
the subprograms listed in this NOFA, the HA must submit an application 
that designates another housing agency, non-profit agency, or 
contractor, that is acceptable to HUD and includes an agreement with 
the other housing agency or contractor to administer the new funding 
increment on behalf of the HA. The Office of Public Housing in the 
local HUD Office will notify, immediately after the publication of this 
NOFA, those HAs that are not eligible to apply. Applications submitted 
by these HAs without an agreement from another housing agency or 
contractor, approved by HUD, to serve as contract administrator will be 
rejected. Other agencies may be notified by HUD at other times as HUD 
deems appropriate.
(3) Forms
    Application forms may be obtained from the local HUD Office. 
Applications for all of the subprograms must include, unless otherwise 
specifically excepted:
    (a) Form HUD-52515.
    An Application for Existing Housing, Form HUD-52515, must be 
completed in accordance with the rental voucher and certificate program 
regulations. An application for rental vouchers or certificates must 
include the information in Section H, Average Monthly Tenant Payment, 
of Form HUD-52515 in order for HUD to calculate the amount of Section 8 
budget authority necessary to fund the requested number of units. HAs 
may obtain a copy of Form HUD-52515 from the local HUD Office. (Not 
applicable to subprograms for Family Self-Sufficiency Coordinators or 
Section 8 Counseling.)
    (b) Certification Regarding Drug-Free Workplace.
    The Drug-Free Workplace Act of 1988 requires grantees of Federal 
Agencies to certify that they will provide a drug-free workplace. Thus, 
each HA must certify (even though it has done so previously) that it 
will comply with the drug-free workplace requirements in accordance 
with CFR part 24, subpart F. HAs may obtain a copy of this form from 
the local HUD Office. [[Page 12038]] 
    (c) Certification Regarding Lobbying.
    Section 319 of the Department of the Interior Appropriations Act, 
Public Law 101-121, approved October 23, 1989, (31 U.S.C. 1352) (the 
``Byrd Amendment'') generally prohibits recipients of Federal 
contracts, grants and loans from using appropriated funds for lobbying 
the Executive or Legislative Branches of the Federal Governments in 
connection with a specific contract, grant or loan.
    The Department's regulations on these restrictions on lobbying are 
codified at 24 CFR part 87. To comply with 24 CFR 87.110, any HA 
submitting an application under this announcement for more than 
$100,000 of budget authority must submit a certification and, if 
applicable, a Disclosure of Lobbying Activities (SF-LLL). IHAs 
established by an Indian tribe as a result of the exercise of the 
tribe's sovereign power are excluded from coverage of the Byrd 
Amendment, but IHAs established under State law are not excluded from 
the statute's coverage. HAs may obtain a copy of the certification and 
the Form SF-LLL from the local HUD Office.
    (d) Application Requirements for Subprograms.
    HAs must also comply with the additional application requirements 
for each subprogram identified in the section of the NOFA for the 
specific subprogram.
    (e) HA Eligibility.
    All HAs that meet the eligibility requirements for the various 
subprograms, other than those HAs notified under the provisions of 
paragraph I.(D)(2) of this NOFA and those with certain civil rights or 
program violations or deficiencies as specified in section I.(G)(2), 
are eligible to apply for funding.

(E) Selection Criteria--General

    Each subprogram section of this NOFA has specific selection 
criteria to evaluate the applications submitted. Refer to the specific 
subprogram section in this NOFA for the selection criteria.

(F) Local Government Comments

    Section 213 of the Housing and Community Development Act of 1974 
requires that HUD independently determine that there is a need for the 
housing assistance requested in applications, and solicit and consider 
comments relevant to this determination from the chief executive 
officer of the unit of general local government. The HUD Office will 
obtain Section 213 comments from the unit of general local government 
in accordance with 24 CFR part 791, subpart C, Applications for Housing 
Assistance in Areas Without Housing Assistance Plans. Comments 
submitted by the unit of general local government must be considered 
before an application can be approved. The Section 213 requirements do 
not apply to applications for the FSS Service Coordinators and Section 
8 Counseling subprograms.
    For purposes of expediting the application process, the HA should 
encourage the chief executive officer of the unit of general local 
government to submit a letter with the HA application commenting on the 
HA application in accordance with Section 213. Since HUD cannot approve 
an application until the 30-day comment period is closed, the Section 
213 letter should not only comment on the application, but also state 
that HUD may consider the letter to be the final comments and that no 
additional comments will be forthcoming from the unit of general local 
government.

(G) Corrections to Deficient Applications--General

(1) Acceptable Applications--General
    To be eligible for processing, an application must be received by 
the appropriate HUD Office no later than the date and time specified in 
Section I.(B) of this NOFA. The HUD Office will initially screen all 
applications and notify HAs of technical deficiencies by letter.
    If an application has technical deficiencies, the HA will have 14 
calendar days from the date of the issuance of the HUD notification 
letter to submit the missing or corrected information to the HUD 
Office. Curable technical deficiencies relate only to items that do not 
improve the substantive quality of the application relative to the 
rating factors. The 14 calendar day technical correction period does 
not apply to NOFAs for Section 8 Counseling, Mainstream Housing 
Opportunities, Persons with HIV/AIDS and Homeless Families.
    All HAs must submit corrections within 14 calendar days from the 
date of the HUD letter notifying the applicant of any such deficiency. 
Information received after 3 p.m. local time (i.e., the time in the 
appropriate HUD Office), of the fourteenth calendar day of the 
correction period will not be accepted and the application will be 
rejected as incomplete.
(2) Unacceptable Applications--General
    (a) After the 14-calendar day technical deficiency correction 
period, the HUD Office will disapprove HA applications that it 
determines are not acceptable for processing. The HUD Office 
notification of rejection letter must state the basis for the decision.
    (b) Applications that fall into any of the following categories 
will not be processed:
    (i) There is a pending civil rights suit against the HA instituted 
by the Department of Justice or there is a pending administrative 
action for civil rights violations instituted by HUD (including a 
charge of discrimination under the Fair Housing Act).
    (ii) There has been an adjudication of a civil rights violation in 
a civil action brought against the HA by a private individual, unless 
the HA is operating in compliance with a court order, or implementing a 
HUD approved resident selection and assignment plan or compliance 
agreement designed to correct the areas of noncompliance.
    (iii) There are outstanding findings of noncompliance with civil 
rights statutes, Executive Orders, or regulations, as a result of 
formal administrative proceedings, or the Secretary has issued a charge 
against the applicant under the Fair Housing Act, unless the applicant 
is operating under a conciliation or compliance agreement designed to 
correct the areas of non- compliance.
    (iv) HUD has denied application processing under Title VI of the 
Civil Rights Act of 1964, the Attorney General's Guidelines (28 CFR 
50.3), and the HUD Title VI regulations (24 CFR 1.8) and procedures 
(HUD Handbook 8040.1), or under section 504 of the Rehabilitation Act 
of 1973 and HUD regulations (24 CFR 8.57).
    (v) The HA has serious unaddressed, outstanding Inspector General 
audit findings, Fair Housing and Equal Opportunity monitoring review 
findings, or HUD Office management review findings for one or more of 
its Rental Voucher, Rental Certificate, or Moderate Rehabilitation 
Programs, or, in the case of an HA that is not currently administering 
a Rental Voucher, Rental Certificate, or Moderate Rehabilitation 
Program, for its Public Housing Program or Indian Housing Program. The 
only exception to this category is if the HA has been identified under 
the policy established in section I.(D)(2) of this NOFA and the HA 
makes application with a designated contract administrator.
    (vi) The HA is involved in litigation and HUD determines that the 
litigation may seriously impede the ability of the HA to administer an 
additional increment of rental vouchers or rental certificates.
    (vii) An HA application that does not comply with the requirements 
of 24 CFR 882.204(a) or 887.55(b) and this notice, 
[[Page 12039]] including the drug-free workplace certification and the 
anti-lobbying certification/disclosure requirements, after the 
expiration of the 14-calendar day technical deficiency correction 
period will be rejected from processing.
    (viii) An HA application submitted after the deadline date for the 
subprogram of rental vouchers or certificates will be rejected from 
processing.
    (ix) An HA must have achieved 90 percent lease-up of units in its 
HUD-approved budget for the HA fiscal year prior to application for 
funding in each of its rental voucher and certificate programs. 
Applications from HAs that have failed to achieve the 90 percent lease-
up will be rejected from processing.

(H) HUD Corrections to Rating and Ranking FY 94 Applications

    HUD is aware that a few HA applications submitted under the FY 94 
NOFAs were not funded due to HUD field staff incorrectly rating and 
ranking some HAs' applications. Although the number of errors were 
limited, HUD believes that the errors must be corrected; therefore, HUD 
Offices that failed to fund certain HA applications for FY 1994 funding 
due to these errors by the HUD Office may correct those errors as 
follows:
    (1) The HUD Office will reconstruct the FY 94 ranking process to 
include the application(s) missing from the original ranking process 
due to the error; and
    (2) The HUD Office will determine the number of units and Section 8 
budget authority that would have been awarded to the application(s) 
subject to the FY 94 funds available at the time and the funding 
selection process utilized in the FY 94 competition.
    The HUD Office will correct the error by funding the FY 94 
applications from the FY 95 fair share allocation for the same 
allocation area prior to the FY 95 competition. The funds for the 
allocation area remaining after correcting the FY 94 ranking error will 
be available for the FY 95 competition. The correction of the FY 94 
error for an HA will not affect the HA's ability to compete for the 
remaining FY 95 funds and the FY 95 application will be considered as 
though no error had been made.

(I) Notification of Funds Awarded

    (1) After the HUD Offices have reviewed, rated, and ranked 
applications, and the HUD Offices have approved the applications, each 
HUD Office must submit to Headquarters a list of all approved 
applications for each subprogram in this NOFA. The application approval 
list is due in Headquarters (ATTENTION: Rental Assistance Division, 
Office of Public and Indian Housing) on the tenth working day following 
the date set by Headquarters for completion of application ranking and 
selections.
    (2) The HUD Offices must provide the following information for each 
application approved:
    (a) The name and address of the HA;
    (b) The project number, and the number of rental vouchers and the 
number of rental certificates, as applicable, approved for the HA; and
    (c) The amount of contract authority and budget authority, stated 
separately for rental vouchers and rental certificates.
    The Field Offices of Native American Programs (FONAPs) also must 
send to Headquarters Office of Native American Programs a list of all 
approved IHA applications for each subprogram in this NOFA.

II. Fair Share Allocations

(A) Fair Share Application Deadline Date

    The deadline date for applications for the Fair Share allocation is 
listed in Section I.(B) of the NOFA.

(B) Fair Share Allocation Amounts

(1) Housing Needs Formula
    In FY 95, approximately $1.2 billion of budget authority for the 
rental voucher and certificate programs is available for fair share 
formula allocation. Of this amount, approximately $600 million is for 
rental vouchers and approximately $600 million is for rental 
certificates. This budget authority is being allocated to each HUD 
Office under this NOFA, using the housing needs factors established in 
accordance with 24 CFR 791.402. In addition, approximately $151 million 
is retained in a Headquarters Reserve that will not be allocated by 
formula.
(2) Metropolitan/Non-Metropolitan Mix
    Separate housing needs factors were developed for the metropolitan 
and non-metropolitan allocation areas within each HUD Office 
jurisdiction. On a nationwide basis, approximately 90 percent of the FY 
1995 ``fair share'' budget authority for the Rental Voucher Program and 
Rental Certificate Program is designated for allocation to metropolitan 
areas. The metropolitan housing needs factors were applied to the 
housing assistance budget authority available for metropolitan areas 
and the non-metropolitan housing needs factors were applied to the 
housing assistance budget authority available for non-metropolitan 
areas.
    The allocation areas were established by the HUD State and Area 
Offices to ensure sufficient competition among HAs (including State and 
regional or multi-county HAs) operating housing programs within the 
HUD-established allocation areas.
(3) Program Type
    This notice announces the fair share allocation of housing 
assistance budget authority (See Attachment 1) for the Rental Voucher 
Program and for the Rental Certificate Program to each allocation area, 
based on the housing needs factors. The allocation of housing 
assistance budget authority to each allocation area, however, is the 
total for both programs. The allocations have been structured to give 
HUD Offices flexibility in approving HA applications for funding of 
rental vouchers or rental certificates. This Notice also provides an 
estimate of the total number of rental vouchers and rental certificates 
that could be funded from the housing assistance available in the 
allocation area based on the national average cost of rental assistance 
for a two-bedroom unit. The actual number of units assisted within each 
HUD Office will vary from the estimates prepared by Headquarters for 
each HUD Office since the actual costs of rental assistance for each HA 
vary from the average.
(4) Reimbursement for Portability Units
    The Department has decided that it is appropriate to use up to 50 
percent of the fair share allocation for each allocation area as 
reimbursement to HAs for the costs associated with families that have 
moved under the portability procedures of the programs. Each HA must 
designate, in an attachment to Form HUD-52515, the number of units that 
it is requesting as reimbursement for portability billings or 
absorptions. A receiving HA that currently bills an initial HA for the 
cost of rental assistance for a family and receives funding under this 
NOFA for reimbursement of the rental assistance must discontinue 
billing the initial HA upon execution of the amendment to the annual 
contributions contract (ACC). The initial HA will then be able to 
reissue the rental assistance to another family on the initial HA's 
waiting list.
    Attachment 2 to this NOFA provides a suggested format for the 
receiving HA to list the number of units and to certify to the number 
of families assisted under the portability provisions. In order to be 
eligible for reimbursement for portability, the HA must have billed, 
during the most recent month prior to [[Page 12040]] the HA application 
to HUD for reimbursement, another HA for the cost of the families' 
rental assistance, including administrative fees, or have absorbed the 
families into its own program at any time during the last HA fiscal 
year. A receiving HA may apply for the number of rental vouchers or 
certificates for which the HA billed another HA during the most recent 
month prior to application or the number of rental vouchers or 
certificates for families absorbed at any time during the HA fiscal 
year.
    HUD will, for each allocation area, fund HAs with the highest ratio 
of rental vouchers or certificates billed and families absorbed in the 
HA's total rental voucher and certificate program. HUD will divide the 
total number of rental vouchers and certificates billed and families 
absorbed by the total number of rental vouchers and certificates on the 
most recent HUD-approved budget in an HA's program. The resulting 
percentage (rounded to four decimal places) will be used to rank HAs 
for funding. Receiving HAs will be ranked in descending order based on 
the percentage of portable rental vouchers and certificates. When funds 
are not available to fund the last ranked HAs with the same percentage, 
the HUD Office will distribute the balance of the funds evenly to the 
HAs with the same percentage.
(5) Potential Additional Funding
    If additional rental voucher or rental certificate funding becomes 
available for fair share use during FY 95, the Department plans to 
distribute any additional funding to HUD Offices using the same 
percentage distribution as reflected in Attachment 1 to this NOFA. Any 
additional funding will be used under the competitive requirements of 
this NOFA to fund HA applications which were approvable but not funded, 
or approved and funded at less than 100 percent of the requested 
amount.

(C) Fair Share Application Submission Requirements

    (1) All the items in Section I.(D), Application Submission 
Requirements--General, of this NOFA must be included in the application 
submitted to the HUD Office.
    (2) The application should include a narrative description of how 
the application meets, or will meet, the application selection 
criteria. Failure to submit a narrative description is not cause for 
application rejection; however, the HUD Office can only rate and rank 
the application based on information the HUD Office has on-hand.
    (3) Attachment 1 to this notice lists the HUD Offices and an 
estimate of the number of rental vouchers and certificates and budget 
authority available for each allocation area within the HUD State or 
Area Office jurisdiction. HAs should limit their applications for the 
``fair share'' program to a reasonable number of rental vouchers and 
rental certificates, based on the capacity of the HA to lease-up within 
12 months of ACC execution. The number of rental vouchers or 
certificates on the HA application, excluding those designated as 
portability reimbursements, may not exceed the lesser of: (a) ten 
percent (10%) of the total rental vouchers and rental certificates on 
the most recent HUD-approved budget for the HA; or (b) 50 percent of 
the number of units available for the allocation area.
    (4) Each HA that intends to apply for rental vouchers or 
certificates as reimbursement for families that exercised their rights 
to portability must attach the portability certification (See 
Attachment 2 to this NOFA) to its fair share application (Form HUD-
52515). Otherwise, the HA application will be considered only for fair 
share funding. HAs must provide the following portability information 
to be considered for this special funding:
    (i) List the number of units by bedroom size for all rental 
vouchers and certificates for which the receiving HA billed another HA 
and for all families that an HA absorbed into its program.
    (ii) List the number of rental vouchers and certificates by bedroom 
size that the HA is requesting under the fair share funding.
    (iii) Provide the certification as to the number of rental vouchers 
or certificates for which the receiving HA is billing under portability 
or the number of families it has absorbed.
    (5) HAs may submit only one application (Form HUD-52515) for an 
allocation area and must submit a separate application for each 
allocation area. The total number of rental vouchers or certificates 
for which an HA applies may not exceed the lesser of ten percent of its 
program size or 50 percent of the rental vouchers and certificates 
available for the allocation area.
    (6) The HUD Office will reduce the number of rental vouchers and 
certificates requested in any application that exceeds the established 
application limit to the lesser of ten percent of the total rental 
vouchers and rental certificates on the latest HUD-approved budget or 
50 percent of the units available for the allocation area.

(D) Fair Share Application Rating Process

    The HUD Office must use the Selection Criteria shown below for the 
rating of applications submitted in response to this NOFA. The maximum 
score under the selection criteria for fair share funding is 120.
(1) Selection Criterion 1: Unmet Housing Needs (50 points)
    (a) Description: This criterion assesses the unmet housing need in 
the primary area specified in the HA's application compared to the 
unmet housing need for the allocation area. Unmet housing need is 
defined as the number of very low-income renter households with housing 
problems based on 1990 Census, minus the number of Federally-assisted 
housing units provided since the 1990 Census.
    In awarding points under this criterion, HUD will, to the extent 
practicable, consider all units provided since the 1990 Census under 
the Section 8 Rental Voucher and Certificate programs, any other 
Section 8 programs, the Public and Indian Housing programs, the Section 
202 program, and the Farmers Home Administrations's Section 515 Rural 
Rental Housing program.
    (b) Rating and Assessment: The number of points assigned is based 
on the percentage of the allocation area's unmet housing need that is 
within the HA's primary area. State or Regional Housing Agencies will 
receive points based on the areas they intend to serve with this 
allocation, e.g., the entire allocation area or the localities within 
the allocation area specified in the application. The HUD Office will 
assign one of the following point totals:
     50 points. If the HA's percentage of unmet housing need is 
greater than 50 percent of the allocation area's unmet need.
     45 points. If the HA's percentage of unmet housing need is 
equal to or less than 50 percent but greater than 40 percent of the 
allocation area's unmet need.
     40 points. If the HA's percentage of unmet housing need is 
equal to or less than 40 percent but greater than 30 percent of the 
allocation area's unmet need.
     35 points. If the HA's percentage of unmet housing need is 
equal to or less than 30 percent but greater than 20 percent of the 
allocation area's unmet need.
     30 points. If the HA's percentage of unmet housing need is 
equal to or less than 20 percent but greater than 10 percent of the 
allocation area's unmet need. [[Page 12041]] 
     25 points. If the HA's percentage of unmet housing need is 
equal to or less than 10 percent but greater than 5 of the allocation 
area's unmet need.
     20 points. If the HA's percentage of unmet housing is 
equal to or less than 5 percent (but greater than zero) of the 
allocation area's unmet need.
     0 points. If the HA has no unmet housing need (zero 
percent). The HUD Office will not consider for funding any HA 
application receiving zero (0) points.
    In accordance with Notice PIH 91-45, the HUD Office will notify the 
Farmers Home Administration (FmHA) of applications it receives and ask 
that FmHA provide advisory comments concerning the market for 
additional assisted housing or the possible impact the proposed units 
may have on FmHA projects. Applications for which FmHA has provided 
comments expressing concerns about market need or the continued 
stability of existing FmHA projects, with which HUD agrees, will 
receive zero points for this criterion.
(2) Selection Criterion 2: Efforts of HA to Provide Area-Wide Housing 
Opportunities for Families (60 points)
    (a) Description: Many HAs have undertaken voluntary efforts to 
provide area-wide housing opportunities for families. The efforts 
described in response to this selection criterion must be beyond those 
required by federal law or regulation such as the portability 
provisions of the Section 8 rental voucher and certificate programs. 
HAs in metropolitan and non-metropolitan areas are eligible for points 
under this criterion. The HUD Office will assign points to HAs that 
have established cooperative agreements with other HAs or created a 
consortium of HAs in order to facilitate the transfer of families and 
their rental assistance between HA jurisdictions. In addition, the HUD 
Office will assign points to HAs that have established relationships 
with non-profit groups to provide families with additional counseling, 
or have directly provided counseling, to increase the likelihood of a 
successful move by the families to areas that do not have large 
concentrations of poverty.
    (b) Rating and Assessment: The HUD Office will assign point values 
for any of the following assessments for which the HA qualifies and add 
the points for all the assessments (maximum of 60 points) to determine 
the total points for this Selection Criterion:
     10 points--Assign 10 points if the HA documents that it 
participates in an area-wide rental voucher and certificate exchange 
program where all HAs absorb portable Section 8 families.
     10 Points--Assign 10 points if the HA certifies that its 
administrative plan does not include a ``residency preference'' for 
selection of families to participate in its rental voucher and 
certificate programs or the HA certifies that it will eliminate 
immediately any ``residency preference'' currently in its 
administrative plan.
     10 Points--Assign 10 points if the HA documents that it 
has established a contractual relationship with a non-profit agency or 
the local governmental entity to provide housing counseling for 
families that want to move to low-poverty or non-minority areas. The 
five HAs approved for the FY 93 Moving to Opportunity (MTO) for Fair 
Housing Demonstration and any other HAs that receive counseling funds 
from HUD in settlement of litigation involving desegregation may 
qualify for points under this assessment, but these HAs must identify 
all activities undertaken, other than those funded and required under 
the MTO Demonstration or the court-ordered plans, to expand housing 
opportunities.
     10 Points--Assign 10 points if the HA documents that it 
requested from HUD, and HUD approved, the authority to utilize 
exceptions to the fair market rent limitations as allowed under 24 CFR 
882.106(a)(4) to allow families to select units in low-poverty or non-
minority areas.
     10 Points--Assign 10 points if the HA documents that it 
participates with other HAs in using a metropolitan wide or combined 
waiting list for selecting participants in the program.
     10 Points--Assign 10 points if the HA documents that it 
has implemented other initiatives that have resulted in expanding 
housing opportunities in areas that do not have undue concentrations of 
poverty or minority families.
(3) Selection Criterion 3: Local Initiatives (10 points)
    (a) Description: The application must describe the extent to which 
the HA demonstrates locally initiated efforts in support of its Rental 
Voucher and Rental Certificate Program or comparable tenant-based 
rental assistance programs. Evaluation of a locality's contribution is 
measured competitively by the extent to which a locality is able to 
provide services or cash contributions or demonstrate its intention to 
provide this kind of support in the future, as compared to services or 
contributions provided by other localities of like program size.
    (b) Rating and Assessment: The HUD Office will assign one of two 
point-values, as follows:
     10 points: The State or locality provides significant 
local support (e.g., financial, manpower for inspection services) to 
its Rental Voucher or Rental Certificate Program.
     0 points: The State or locality does not provide support 
to the HA's Rental Voucher or Rental Certificate Program.

(E) Corrections to Deficient Fair Share Applications

(1) Acceptable Applications
    See Section I.(G)(1) of this NOFA.
(2) Unacceptable Applications
    See Section I.(G)(2) of this NOFA.

(F) Fair Share Application Selection Process

(1) Maximum Funding Allowed
    Excluding rental vouchers or certificates for portability 
reimbursements, the HUD Office may approve maximum funding for an HA 
under this NOFA that does not exceed the lesser of 10 percent of the HA 
rental vouchers and rental certificates on the latest HUD-approved 
budget or 50 percent of the number of rental vouchers and certificates 
available in the allocation area, whichever is less.
(2) Funding Procedure
    The HUD Office must develop a procedure for approving applications 
(including applications rated by the Native American Programs Office) 
in rank order until all the housing assistance budget authority is 
used. The HUD Office may elect to approve applications for 100 percent 
of the rental vouchers or certificates requested, or the maximum number 
allowed for each HA under this NOFA (not to exceed the lesser of ten 
percent of the HA's program size or 50 percent of rental vouchers and 
certificates available for the allocation area), in all applications 
that score above a HUD Office-determined funding cut-off. The HUD 
Office may elect to approve all applications using a lower percentage, 
but may not approve applications at less than 80 percent of the rental 
vouchers and certificates requested in all applications that score 
above the HUD Office-determined funding cut-off.
    The HUD Office may elect to divide applications into two categories 
and to approve a different percentage of requested rental vouchers and 
certificates for applications in each of the two ranking categories, 
but not less than 80 percent of the rental vouchers and certificates 
requested in all applications. The higher percentage of rental vouchers 
and certificates requested would be approved for all 
[[Page 12042]] applications in the higher category and a lower 
percentage of rental vouchers and certificates requested would be 
approved for all applications in the lower category. The HUD Office 
must approve the same percentage (at least 80 percent) of each 
application within each of the two ranking categories.
    Where a HUD Office funds applications at 100 percent or 80 percent 
of the rental vouchers and certificates requested according to rank 
order, only to find it has some number of rental vouchers or 
certificates left but not enough to fund the next fundable application, 
the next rated application, or applications receiving the same score, 
can be funded to the extent of the number of rental vouchers or 
certificates available provided that each application receives the same 
percentage even though it is less than 80 percent.
    If an HA applies for a specific program (i.e., rental vouchers or 
rental certificates) and funding for the specified program is not 
available in the metropolitan allocation area or non-metropolitan 
allocation area, the HUD Office will award the available form of 
assistance, even though not specifically requested by the applicant.
    The HUD State or Area Office must promptly notify the applicable 
Native American Programs Office for each allocation area as to the 
status of any applications from IHAs and, if applicable, the amount of 
budget authority to be made available for IHA applications that were 
rated high enough to receive funding. The HUD State or Area Office must 
promptly notify Headquarters (Attention: Budget Division, Office of 
Public and Indian Housing) of any IHA to be awarded funding so that the 
funds may be re-assigned to the appropriate Native American Programs 
Office.
(3) Reallocations of Funds
    Each HUD Office must make every reasonable effort to use all 
available funds. It may be necessary, however, to reallocate funds from 
one HUD Office to another when the funds are not likely to be used in 
the HUD Office to which they were initially assigned. In such cases, 
the following procedures shall be followed:
    (a) Reallocations within the Same State. If the allocation of funds 
to a HUD Office cannot be awarded within the office jurisdiction during 
Fiscal Year 1995, funds will be reallocated to another HUD Office 
within the same State where they can be used during Fiscal Year 1995.
    (b) Reallocations Between States. If a HUD Office cannot use funds 
within the same State, those funds will be re-allocated to another HUD 
Office for use in a State where they can be used during Fiscal Year 
1995.
    (c) Reallocations Between Metropolitan and Non-metropolitan Areas. 
The HUD Office must follow the original fund assignments for 
metropolitan and non-metropolitan areas. If there are not enough 
approvable applications for the designated metropolitan or non-
metropolitan budget authority, the HUD Office may switch the budget 
authority between a metropolitan and non-metropolitan area within the 
same State, provided that an offsetting switch can be made in another 
State within the HUD Office. If an offsetting switch cannot be made and 
the metropolitan or non-metropolitan amounts require changes to the 
fund assignments, the approval of the Budget Division, Office of 
Management and Policy, Office of Public and Indian Housing, must be 
obtained before switching budget authority between a metropolitan and a 
non-metropolitan area.
    (d) Requests for Reallocations. A request for approval of a 
reallocation between States or between metropolitan and non-
metropolitan areas must explain the reasons that funds cannot be used 
in the original State, or metropolitan and non-metropolitan area, the 
amount being withdrawn, the program type, and the metropolitan/non-
metropolitan mix, and the amount to be reallocated. These requests must 
be submitted to Headquarters (ATTENTION: Budget Division, Office of 
Management and Policy, Office of Public and Indian Housing) for 
approval.

III. Family Unification/Foster Care Program

(A) Family Unification Application Deadline Date

    The Deadline date for the Family Unification Program application is 
listed in Section I.(B) of the NOFA.

(B) Purpose and Substantive Description of Family Unification Program

(1) Authority
    Section 8(x) of the U.S. Housing Act of 1937, 42 U.S.C. 1437f(x). 
The regulations governing the section 8 rental certificate program are 
codified at 24 CFR parts 882 and 982. This NOFA announces the 
availability of Family Unification funding under the VA, HUD-
Independent Agencies Appropriations Act of 1995 (Pub.L. 103-327, 
approved September 28, 1994).
(2) Background
    The Family Unification Program is a program under which Section 8 
rental assistance is provided to families for whom the lack of adequate 
housing is a primary factor which would result in:
    (a) The imminent placement of the family's child, or children, in 
out-of-home care, or
    (b) The delay in the discharge of the child, or children, to the 
family from out-of-home care.
    The purpose of the Family Unification Program is to promote family 
unification by providing rental assistance to families for whom the 
lack of adequate housing is a primary factor in the separation, or the 
threat of imminent separation, of children from their families.
    Rental certificates awarded under the Family Unification Program 
are to be administered by HAs under HUD's regulations for the Section 8 
rental certificate program (24 CFR parts 882 and subpart E of part 
982). The HA may issue a rental voucher (24 CFR part 887 and subpart E 
of part 982 ) to a family selected for participation in the Family 
Unification Program if the family requests a rental voucher and the HA 
has one available.
(3) Eligibility of HAs
    HAs currently administering a rental voucher or certificate program 
in the following sixteen states are eligible to apply except those HAs 
determined unacceptable under section I.(D)(2) of this NOFA: 
California, Florida, Georgia, Illinois, Maryland, Massachusetts, 
Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, 
Ohio, Pennsylvania, Texas, and Virginia. Applications were limited to 
HAs in eleven States by Congress under the VA, HUD-Independent Agencies 
Appropriations Act of 1992, and the Senate Committee Report for the VA, 
HUD-Independent Agencies Act of 1993 allowed HUD to expand the program 
to five additional States. The selection of the five additional States 
was based on the caseload of families with children in foster care 
within the States. The information concerning families with children in 
foster care was provided to HUD by the Administration for Children and 
Families at the U.S. Department of Health and Human Services (HHS).
(4) Program Guidelines
    (a) Definitions: For purposes of the Family Unification 
Demonstration Program:
    (i) Family Unification eligible family means a family that:
    (A) The public child welfare agency has certified is a family for 
whom the [[Page 12043]] lack of adequate housing is a primary factor in 
the imminent placement of the family's child, or children, in out-of-
home care, or in the delay of discharge of a child, or children, to the 
family from out-of-home care; and
    (B) The HA has determined is eligible for Section 8 rental 
assistance.
    (ii) The lack of adequate housing means a situation in which a 
family:
    (A) Is living in substandard housing or homeless, as defined in 24 
CFR 982.212 and 982.213, or
    (B) Is, or will be, involuntarily displaced from a housing unit 
because of actual or threatened violence against a family member under 
the circumstances described in 24 CFR 982.211.
    (iii) Public child welfare agency (PCWA) means the public agency 
that is responsible under applicable State or Tribal law for 
determining that a child is at imminent risk of placement in out-of-
home care or that a child in out-of-home care under the supervision of 
the public agency may be returned to his or her family.
    (b) HA Responsibilities.
    HAs must:
    (i) Accept families certified by the PCWA as eligible for the 
Family Unification Program. If the HA has a closed waiting list, it 
must reopen the waiting list to accept Family Unification applicant 
families. The HA is not required to review its waiting list for 
eligible families. The HA upon receipt of the PCWA list of families 
currently in the PCWA caseload must compare the names with those of 
families already on the HA's Section 8 waiting list. Any family on the 
HA's Section 8 waiting list that matches with the PCWA's list must be 
assisted in order of their position on the waiting list in accordance 
with HA admission policies;
    (ii) Determine if any applicants on its waiting list are living in 
temporary shelters or on the street, and refer such applicants to the 
PCWA;
    (iii) Determine if families referred by the PCWA are eligible for 
Section 8 assistance and place eligible families on the Section 8 
waiting list;
    (iv) Amend the administrative plan in accordance with applicable 
program regulations and requirements;
    (v) Administer the rental assistance in accordance with applicable 
program regulations and requirements; and
    (vi) Assure the quality of the evaluation that HUD intends to 
conduct on the Family Unification Program, and cooperate with and 
provide requested data to the HUD office or HUD-approved contractor 
responsible for program evaluation.
    (c) Public Child Welfare Agency (PCWA) Responsibilities. Public 
child welfare agencies must:
    (i) Establish and implement a system to identify Family Unification 
eligible families within the agency's caseload and to review referrals 
from the HA;
    (ii) Provide written certification to the HA that a family 
qualifies as a Family Unification eligible family;
    (iii) Commit sufficient staff resources to ensure that Family 
Unification eligible families are identified and certified in a timely 
manner; and
    (iv) Cooperate with the evaluation that HUD intends to conduct on 
the Family Unification Program, and submit a certification with the 
HA's application for Family Unification funding that the PCWA will 
agree to cooperate with and provide requested data to the HUD office or 
HUD-approved contractor having responsibility for program evaluation.
    (d) Section 8 Rental Certificate Assistance.
    The Family Unification Program provides assistance under the 
Section 8 rental assistance programs. Although HUD is providing a 
special allocation of rental certificates, the HA may use both rental 
vouchers and certificates to assist families under this program.
    HAs must administer this program in accordance with HUD's 
regulations governing the Section 8 rental certificate and rental 
voucher programs. The HA may issue a rental voucher to a family 
selected to participate in the Family Unification Program if the family 
requests a rental voucher and the HA has one available. If Section 8 
assistance for a family under this program is terminated, the rental 
assistance must be reissued to another Family Unification eligible 
family during the five-year term of the ACC for the Section 8 rental 
certificates provided under this program.

(C) Family Unification Allocation Amounts

    This NOFA announces the availability of up to $76 million for the 
Family Unification Program which will support assistance for about 
2,000 families. Each HA may apply for funding for a maximum of 50 
units.
    The amounts allocated under this NOFA will be awarded under a 
national competition based on demonstrated need for such assistance and 
a lottery for selection from all approvable applications. The Family 
Unification Program is exempt from the fair share allocation 
requirements of section 213(d) of the Housing and Community Development 
Act of 1974, and from 24 CFR part 791, subpart D, the HUD regulation 
implementing section 213(d).

(D) Family Unification Application Submission Requirements

(1) Letter of Intent and Narrative
    All the items in this Section and Section I.(D), Application 
Submission Requirements--General, must be included in the application 
submitted to the HUD Office. The application must include an 
explanation of how the application meets, or will meet, Threshold 
Criteria 1 through 4 in Section III.(E)(2) below.
    The application must also include a letter of intent from the PCWA 
stating its commitment to provide resources and support for the Family 
Unification Program. The PCWA letter of intent must explain:
    (i) The method used to identify eligible families,
    (ii) The process to certify eligible families,
    (iii) The PCWA assistance to families to locate suitable housing,
    (iv) The staff resources committed to the program, and
    (v) PCWA experience with the administration of similar programs 
including cooperation with an HA.
    The PCWA serving the jurisdiction of the HA is responsible for 
providing the information for Threshold Criterion 4, PCWA Statement of 
Need for Family Unification Program, to the HA for submission with the 
HA application. The application must include a statement by the PCWA 
describing the need for a Family Unification Program. This should 
include a discussion of the case-load of the PCWA and information about 
homelessness, family violence resulting in involuntary displacement, 
number and characteristics of families who are experiencing the 
placement of children in out-of-home care as a result of inadequate 
housing, and the PCWA's experience in obtaining housing through HUD 
assisted housing programs and other sources for families lacking 
adequate housing. A State-wide Public Child Welfare Agency must provide 
information on Threshold Criterion 4, PCWA Statement of Need for Family 
Unification Program, to all HAs that request data; otherwise, HUD will 
not consider applications from any HAs with the State-wide PCWA as a 
participant in its program. The HA must state in its cover letter to 
the application whether it will accept a reduction in the number of 
rental certificates and the minimum number of rental certificates it 
will accept since the funding is limited and HUD may only have enough 
funds to approve a smaller amount than [[Page 12044]] the number of 
rental certificates requested.
(2) Evaluation Certifications
    The HA and the PCWA in separate certifications must state that the 
HA and Public Child Welfare Agency agree to cooperate with HUD and 
provide requested data to the HUD office or HUD-approved contractor 
delegated the responsibility for the program evaluation. No specific 
language for this certification is prescribed by HUD.

(E) Family Unification Application Rating Process

(1) General
    The HUD Office is responsible for rating the applications, and HUD 
Headquarters is responsible for selection of applications (including 
applications rated by the Native American Programs Office) that will 
receive assistance under the Family Unification Program. The HUD Office 
will initially screen all applications and determine any technical 
deficiencies based on the application submission requirements.
    Each application submitted in response to the NOFA must receive, in 
order to be eligible for funding, at least 30 points for Threshold 
Criterion 1: Unmet Housing Needs; at least 10 points for Threshold 
Criterion 2: Efforts of HA to Provide Area-Wide Housing Opportunities 
for Families; and must meet the requirements for Threshold Criterion 3: 
Coordination between HA and Public Child Welfare Agency, and Threshold 
Criterion 4: Public Child Welfare Agency Statement of Need for Family 
Unification Program.
(2) Threshold Criteria
    (a) Selection Criterion 1: Unmet Housing Needs (50 points).
    (i) Description: This criterion assesses the unmet housing need in 
the primary area specified in the HA's application compared to the 
unmet housing need for the allocation area. Unmet housing need is 
defined as the number of very low-income renter households with housing 
problems based on 1990 Census, minus the number of Federally-assisted 
housing units provided since the 1990 Census.
    In awarding points under this criterion, HUD will, to the extent 
practicable, consider all units provided since the 1990 Census under 
the Section 8 Rental Voucher and Certificate programs, any other 
Section 8 programs, the Public and Indian Housing programs, the Section 
202 program, and the Farmers Home Administration's Section 515 Rural 
Rental Housing program.
    (ii) Rating and Assessment: The number of points assigned is based 
on the percentage of the allocation area's unmet housing need that is 
within the HA's primary area. State or Regional Housing Agencies will 
receive points based on the areas they intend to serve with this 
allocation, e.g., the entire allocation area or the localities within 
the allocation area specified in the application. The HUD Office will 
assign one of the following point totals:
     50 points. If the HA's percentage of unmet housing need is 
greater than 50 percent of the allocation area's unmet need.
     45 points. If the HA's percentage of unmet housing need is 
equal to or less than 50 percent but greater than 40 percent of the 
allocation area's unmet need.
     40 points. If the HA's percentage of unmet housing need is 
equal to or less than 40 percent but greater than 30 percent of the 
allocation area's unmet need.
     35 points. If the HA's percentage of unmet housing need is 
equal to or less than 30 percent but greater than 20 percent of the 
allocation area's unmet need.
     30 points. If the HA's percentage of unmet housing need is 
equal to or less than 20 percent but greater than 10 percent of the 
allocation area's unmet need.
     25 points. If the HA's percentage of unmet housing need is 
equal to or less than 10 percent but greater than 5 of the allocation 
area's unmet need.
     20 points. If the HA's percentage of unmet housing is 
equal to or less than 5 percent (but greater than zero) of the 
allocation area's unmet need.
     0 points. If the HA has no unmet housing need (zero 
percent). The HUD Office will not consider for funding any HA 
application receiving zero (0) points.
    In accordance with Notice PIH 91-45, the HUD Office will notify the 
Farmers Home Administration (FmHA) of applications it receives and ask 
that FmHA provide advisory comments concerning the market for 
additional assisted housing or the possible impact the proposed units 
may have on FmHA projects. Applications for which FmHA has provided 
comments expressing concerns about market need or the continued 
stability of existing FmHA projects, with which HUD agrees, will 
receive zero points for this criterion.
    (b) Selection Criterion 2: Efforts of HA to Provide Area-Wide 
Housing Opportunities for Families (60 points).
    (i) Description: Many HAs have undertaken voluntary efforts to 
provide area-wide housing opportunities for families. The efforts 
described in response to this selection criterion must be beyond those 
required by federal law or regulation such as the portability 
provisions of the Section 8 rental voucher and certificate programs. 
HAs in metropolitan and non-metropolitan areas are eligible for points 
under this criterion. The HUD Office will assign points to HAs that 
have established cooperative agreements with other HAs or created a 
consortium of HAs in order to facilitate the transfer of families and 
their rental assistance between HA jurisdictions. In addition, the HUD 
Office will assign points to HAs that have established relationships 
with non-profit groups to provide families with additional counseling, 
or have directly provided counseling, to increase the likelihood of a 
successful move by the families to areas that do not have large 
concentrations of poverty.
    (ii) Rating and Assessment: The HUD Office will assign point values 
for any of the following assessments for which the HA qualifies and add 
the points for all the assessments (maximum of 60 points) to determine 
the total points for this Selection Criterion:
     10 points--Assign 10 points if the HA documents that it 
participates in an area-wide rental voucher and certificate exchange 
program where all HAs absorb portable Section 8 families.
     10 points--Assign 10 points if the HA certifies that its 
administrative plan does not include a ``residency preference'' for 
selection of families to participate in its rental voucher and 
certificate programs or the HA certifies that it will eliminate 
immediately any ``residency preference'' currently in its 
administrative plan.
     10 points--Assign 10 points if the HA documents that it 
has established a contractual relationship with a non-profit agency or 
the local governmental entity to provide housing counseling for 
families that want to move to low-poverty or non-minority areas. The 
five HAs approved for the FY 93 Moving to Opportunity (MTO) for Fair 
Housing Demonstration and any other HAs that receive counseling funds 
from HUD in settlement of litigation involving desegregation may 
qualify for points under this assessment, but these HAs must identify 
all activities undertaken, other than those funded and required under 
the MTO Demonstration or the court-ordered plans, to expand housing 
opportunities.
     10 points--Assign 10 points if the HA documents that it 
requested from HUD, and HUD approved, the authority to utilize 
exceptions to the fair market rent limitations as allowed under 24 CFR 
882.106(a)(4) to allow families to [[Page 12045]] select units in low-
poverty or non-minority areas.
     10 points--Assign 10 points if the HA documents that it 
participates with other HAs in using a metropolitan wide or combined 
waiting list for selecting participants in the program.
     10 points--Assign 10 points if the HA documents that it 
has implemented other initiatives that have resulted in expanding 
housing opportunities in areas that do not have undue concentrations of 
poverty or minority families.
    (c) Threshold Criterion 3: Coordination Between HA and Public Child 
Welfare Agency to Identify and Assist Eligible Families.
    The application must describe the method that the HA and the public 
child welfare agency will use to identify and assist Family Unification 
eligible families. The application must include a letter of intent from 
the PCWA stating its commitment to provide resources and support for 
the program. The PCWA letter of intent and other information must be 
comprehensive and must include an explanation of the method used to 
identify eligible families, of the PCWA's certification process for 
determining Family Unification eligible families, of the 
responsibilities of each agency, of the PCWA assistance provided to 
families in locating housing units, of the PCWA staff resources 
committed to the program, of the past PCWA experience administering a 
similar program, and of the PCWA/HA cooperation in administering a 
similar program.
    (d) Threshold Criterion 4: Public Child Welfare Agency Statement of 
Need for Family Unification Program.
    The application must include a statement by the PCWA describing the 
need for a program providing assistance to families for whom lack of 
adequate housing is a primary factor in the placement of the family's 
children in out-of-home care, or in the delay of discharge of the 
children to the family from out-of-home care in the area to be served, 
as evidenced by the caseload of the public child welfare agency. The 
PCWA must adequately demonstrate that there is a need in the HA's 
jurisdiction for the Family Unification program which is not being met 
through existing programs. The narrative must include specific 
information relevant to the area to be served, about homelessness, 
family violence resulting in involuntary displacement, number and 
characteristics of families who are experiencing the placement of 
children in out-of-home care or the delayed discharge of children from 
out-of-home care as the result of inadequate housing, and the PCWA's 
past experience in obtaining housing through HUD assisted programs and 
other sources for families lacking adequate housing.

(F) Corrections to Deficient Family Unification Applications

(1) Acceptable Applications
    See Section I.(G)(1) of this NOFA.
(2) Unacceptable Applications
    See Section I.(G)(2) of this NOFA.

(G) Family Unification Application Selection Process

    After the HUD Office has screened HA applications and disapproved 
any applications unacceptable for further processing (See Section 
I.(G)(2) of this NOFA), the HUD Office will review and rate all 
approvable applications, utilizing the Threshold Criteria and the point 
assignments listed in this NOFA. Each HUD Office will send to HUD 
Headquarters the following information on each application that passes 
the Threshold Criteria:
    (1) Name and address of the HA;
    (2) Name and address of the Public Child Welfare Agency;
    (3) State Office, Area Office, or Native American Programs Office 
contact person and telephone number.
    (4) The number of rental certificates in the HA application and 
minimum number of rental certificates specified in the HA application 
and the corresponding budget authority acceptable to the HA; and
    (5) A completed fund reservation worksheet for the number of rental 
certificates requested in the application.
    All Field Offices of Native American Programs also must send to 
Headquarters Office of Native American Programs the information listed 
in Section III.(G) (1)-(5) for each IHA application that passes the 
threshold criteria.
    Headquarters will select eligible HAs to be funded based on a 
lottery. All HAs identified by the HUD Offices as meeting the Threshold 
Criteria identified in the NOFA will be eligible for the lottery 
selection process. As HAs are selected, the costs of funding the 
applications will be counted against the total funds available for the 
Family Unification program. In order to achieve geographic diversity, 
HUD Headquarters will limit the number of applications selected for 
funding under the lottery for any State to ten percent of the budget 
authority made available under this NOFA.
    Applications will be funded in full for the number of rental 
certificates requested by the HA in accordance with the NOFA. However, 
when remaining rental certificate funds are insufficient to fund the 
last HA application in full, HUD Headquarters may fund that application 
to the extent of the funding available and the applicant's willingness 
to accept a reduced number of rental certificates. Applicants that do 
not wish to have the size of their programs reduced may indicate in 
their applications that they do not wish to be considered for a reduced 
award of funds. HUD Headquarters will skip over these applicants if 
assigning the remaining funding would result in a reduced funding 
level.

IV. Family Self-Sufficiency (FSS) Service Coordinators

(A) FSS Service Coordinators Applications Deadline Date

    The deadline date for the Family Self-Sufficiency (FSS) Service 
Coordinators subprogram is listed in Section I.(B) of the NOFA.

(B) Purpose and Substantive Description of Funding for FSS Service 
Coordinators

    The FY 1995 HUD Appropriations Act (Pub. L. 103-327 approved 
September 28, 1994) makes available administrative fees under section 
23(h) of the U.S. Housing Act of 1937 for the Section 8 FSS program. 
Section 23(h) establishes a fee for the costs incurred in administering 
the Section 8 FSS program and requires the Secretary to revise the fee 
upon submission by the General Accounting Office (GAO) of a report 
determining the additional costs to HAs under FSS programs. In April 
1992, the GAO issued its report; however, the report indicated that it 
was premature to make a recommendation for changes in the fee. As a 
result, the Department determined to make a sufficient fee available 
under this NOFA, to enable the smaller HAs (i.e., those with programs 
of less than 1,500 total rental vouchers and certificates) with 
required FSS programs of at least 25 slots, to hire up to one FSS 
program coordinator for one year at a reasonable cost, as determined by 
the HA and HUD, based on salaries for similar positions in the 
locality.
(1) Eligible Activity
    Funds are available under this NOFA to employ or otherwise retain 
the services of up to one FSS program coordinator for one year. A part-
time FSS program coordinator may be retained where appropriate. Under 
the FSS program, HAs are required to use Section 8 rental assistance 
together with public and private resources to provide supportive 
services to enable [[Page 12046]] participating families to achieve 
economic independence and self-sufficiency. Effective delivery of 
supportive services is a critical element in a successful program.
    (a) Program Coordinator Role.
    HAs administering the FSS program use program coordinating 
committees (PCCs) to assist them to secure resources for and implement 
the FSS program. The program coordinating committee is made up of 
representatives of local government, job training and employment 
agencies, local welfare agencies, educational institutions, child care 
providers, nonprofit service providers, and businesses.
    An FSS program coordinator works with the PCC, and with local 
service providers to assure that program participants are linked to the 
supportive services they need to achieve self-sufficiency. The FSS 
program coordinator may ensure, through case management, that the 
services included in participants' contracts of participation are 
provided on a regular, ongoing and satisfactory basis, and that 
participants are fulfilling their responsibilities under the contracts.
    (b) Staffing Guidelines.
    Under normal circumstances, a full-time FSS program coordinator 
should be able to serve approximately 50 FSS participants, depending on 
the coordinator's case management functions.
    (c) Eligibility of HAs.
    All HAs funded under the FY 94 NOFA that wish to obtain funding for 
another year do not need to re-apply. HUD will automatically fund the 
FY 94 recipients at 103 percent of the FY 94 amount unless the HA 
submits a new application or notifies HUD not to fund the HA for an FSS 
Service Coordinator. All HAs which did not receive FSS coordinator 
funding in FY 94 and that currently administer a rental voucher and 
certificate program of less than 1,500 total rental vouchers and 
certificates and that received FY 1992 FSS incentive award funding, or 
FY 1993 and later rental voucher or certificate funding (other than 
renewal funding), and as a result are required to administer an FSS 
program of at least 25 FSS slots are eligible to apply. HAs with less 
than 1,500 total rental vouchers and certificates and with FSS programs 
of fewer than 25 slots may also apply, if they apply jointly with one 
or more other eligible HAs so that between or among the HAs they 
administer at least 25 FSS slots. If eligible applicants apply jointly, 
their combined total program size may exceed 1,500 total rental 
vouchers and certificates, but the $40,000 maximum amount that may be 
requested still applies. Joint applicants must specify a lead 
coapplicant which will receive and administer the FSS program 
coordinator funding. A state or regional (i.e., multi-county 
jurisdiction) HA that administers a program of more than 1,500 rental 
vouchers and certificates may apply if it is required to administer an 
FSS program of fewer than 1,500 FSS slots.
    HUD has limited eligibility under this NOFA to HAs with less than 
1,500 total Section 8 rental vouchers and certificates and to state and 
multi-county regional HAs that are required to administer FSS programs 
of at least 25 but fewer than 1,500 FSS slots, because the $17.3 
million appropriated for FSS program coordinators is insufficient to 
fund all HAs administering FSS programs. HUD determined that HAs 
administering large Section 8 programs are more likely than smaller HAs 
to have access to other resources for FSS program administration. State 
HAs indicated an interest in FY 94 in submitting applications for 
funding under the FSS Service Coordinators NOFA regardless of the 600 
total program size limitation in FY 94. In response, HUD has decided to 
allow a state or multi-county regional HA that administers an FSS 
program in more than one location to submit an application if the state 
or multi-county regional HA is required to administer an FSS program of 
at least 25 but fewer than 1,500 FSS slots.
    HUD is requiring that applicants under this NOFA administer FSS 
programs of at least 25 FSS slots (based on FY 1992 FSS incentive award 
funding or FY 1993 and later rental voucher and certificate funding 
(other than renewal funding)) to ensure that the limited program 
coordinator funds are used in a cost-effective manner. The Department 
expects that FSS programs of less than 25 FSS slots can be managed 
within HA resources.
(2) Eligible Applicants With HUD Approved Exceptions to Mandatory 
Minimum Size
    If HUD has approved either a full or partial exception to 
implementing an FSS program of the mandatory minimum size for an 
eligible applicant with less than 1,500 rental vouchers and 
certificates, solely because of a lack of funds for reasonable 
administrative costs, the approval of the exception is hereby 
automatically rescinded, since funding for an FSS program coordinator 
is now available under this NOFA.

(C) FSS Service Coordinators Allocation Amounts

    For FY 1995, the HUD Appropriations Act made $17.3 million 
available for HA administrative fees for Section 8 FSS Service 
Coordinators. Of this amount, up to $8.7 million will be provided to 
those HAs that received FY 94 funds in response to the NOFA published 
on August 29, 1994. This is the second fiscal year of funding for FSS 
Service Coordinators. All HAs that received funding for FSS Service 
Coordinators funding under the FY 94 NOFA will receive 103 percent of 
the amount awarded under the FY 94 NOFA without submitting a new 
application in response to this NOFA, unless the HA notifies the HUD 
Office that it does not want additional funding. Any previously funded 
HA has the flexibility to submit a new application in response to this 
NOFA in order to change the funded amount up to the maximums 
established in this NOFA. Any other HA with less than 1,500 total 
rental vouchers and certificates may submit an application for initial 
funding under this subprogram.
    An eligible HA may apply for a maximum of $40,000 to support up to 
one FSS program coordinator for one year. An eligible state HA or 
multi-county regional HA may apply for a maximum of $40,000. HUD may 
fund applications at less than the requested amount, based on the HUD 
Office application review.

(D) FSS Service Coordinators Application Submission Requirements

    Each application for funding under this NOFA must contain the 
following items:
(1) Request for FSS Service Coordinator Funds
    All applications must contain the following information stated in a 
letter from the Executive Director of the HA to the Director of the 
Office of Public Housing in the local HUD Office or to the 
Administrator of the Native American Programs Office (see sample letter 
format, Attachment 6A):
    (a) The total number of currently enrolled FSS families.
    (b) The total number of required FSS slots (based on FY 1992 
incentive award funding and FY 1993 and later rental voucher and 
certificate funding).
    (c) The annual salary proposed for the FSS program coordinator, 
plus any fringe benefits. Do not include costs of training, 
transportation, clerical support, equipment, supplies, or other 
administrative costs or overhead. The service coordinator salary should 
be set as follows: [[Page 12047]] 
    (i) Determine the salary level, taking into consideration salaries 
for comparable jobs, modified by the hours worked.
    (ii) Set the annual salary, including any fringe benefits that 
pertain to the job.
    (d) Evidence that demonstrates salary comparability with similar 
positions in the local jurisdiction.
    (e) Joint applicants must indicate which HA will be the lead 
applicant and will receive and administer the FSS program coordinator 
funding.
(2) Required Certification Form
    The HA must submit the Certification Regarding Fair Housing and 
Equal Opportunity included as Attachment 6B to this NOFA.

(E) Corrections to Deficient FSS Service Coordinators Applications

(1) Acceptable Applications
    See Section I.(G)(1) of this NOFA.
(2) Unacceptable Applications
    See Section I.(G)(2) of this NOFA.

(F) Application Selection Process for FSS Service Coordinators

    The funds available under this subprogram are not being awarded on 
a competitive basis. The Department anticipates that there may be 
sufficient funds available under the NOFA to fund all applications that 
meet the NOFA requirements. Applications will be reviewed by the HUD 
Office to determine whether or not they are technically adequate based 
on the NOFA requirements.
    Upon completion of the HUD Office review, a list of all technically 
adequate applications, each applicant's total program size and FSS 
program size, and the amount approved for each applicant will be 
forwarded by the HUD Office to the Rental Assistance Division in HUD 
Headquarters which will then allocate the available funding among 
approvable applications. All technically adequate applications will be 
funded to the extent funds are available. If HUD receives applications 
for funding greater than the amount made available under this NOFA, HUD 
will fund applications from the smallest HAs first (i.e., those HAs 
with the smallest combined rental voucher and certificate programs, or, 
in the case of state and multi-county regional HAs, smallest FSS 
program size) and will not fund applications from the larger HA 
applicants. The size of a State or multi-county regional HA's program 
will be determined based on the number of FSS slots it plans to 
administer with the funds for the FSS Coordinator.

V. Section 8 Counseling

(A) Application Due Date for Section 8 Counseling

    Applications for Section 8 Counseling are to be submitted directly 
to HUD Headquarters at the following address: Mr. Laurence Pearl, 
Office of Program Standards and Evaluation, Fair Housing and Equal 
Opportunity, Room 5226, 451 Seventh Street, SW, Washington, DC 20410. 
The deadline date for applications for the subprogram for Section 8 
Counseling is listed in Section I.(B) of the NOFA.

(B) Purpose and Substantive Description of Section 8 Counseling

(1) General
    This NOFA announces the availability of approximately $150 million 
for HA administrative fees for Section 8 Counseling to facilitate a 
wide range of housing options for rental voucher and certificate 
holders and program participants. HUD has determined that families 
assisted under the Section 8 program frequently have a lack of 
knowledge of the rental market and this has limited the housing options 
of these families. HUD has decided to set-aside a portion of the FY 95 
Section 8 funding (See Attachment 5) for administrative fees for 
housing agencies (HAs) to establish counseling services programs to 
assist families in expanding housing opportunities for families. The 
set-aside is designed to provide eligible families with information 
about a wide range of housing options in neighborhoods throughout a 
metropolitan area so that the families may make informed decisions 
about the selection of housing units. This goal will be accomplished by 
a combination of intensive counseling and outreach to landlords. Each 
HA funded under this NOFA for Section 8 Counseling must use the 
counseling funds only for those families eligible under this NOFA and 
may not counsel families for which the HA is funded from other sources, 
e.g., funds provided by HUD to assist and to counsel families 
benefiting from the settlement of litigation or involving 
desegregation.
(2) Housing Agency/Non-Profit Organization Partnership
    The HA identified on Attachment 5 is designated as the lead HA for 
the metropolitan area for which funds are allocated. The lead HA must 
form a partnership with other HAs within the metropolitan area that 
have a high proportion of families living in poverty concentrated 
census tracts and with a non-profit organization (NPO) in order to 
undertake the housing counseling services on a metropolitan-wide basis 
unless the HAs believe they can perform the housing counseling. The 
lead HA will submit an application to HUD on behalf of all the HAs 
participating in the Section 8 Counseling provided by the NPO or in 
some cases the HAs and, the lead HA will be responsible for budgeting 
and financial management activities. HUD will allow HAs to undertake 
the housing counseling services without an NPO only if the HA can 
demonstrate in its application that the HA has the capability and the 
experience to perform the required services on a metropolitan-wide 
basis. HUD will not consider requests for ``pre-approval'' of HA 
capability and experience to perform these services under this set-
aside. An HA without sufficient capability and experience that submits 
an application without an NPO must modify its application (i.e., add an 
NPO) during the 30 calendar day correction period or the HA will not be 
funded under this set-aside.
(3) Housing Counseling Services
    The housing counseling services to be provided must be consistent 
with current program rules and, at a minimum, must include the services 
identified below; however, it is not necessary that each of these 
services be provided to every family:
    (i) Outreach to private landlords in low-poverty neighborhoods 
(i.e., neighborhoods where the concentration of families at or below 
the poverty is less than 10 percent) throughout the metropolitan area, 
and counseling and referral services for eligible families consistent 
with a policy of avoiding unduly concentrating assisted families in a 
particular neighborhood;
    (ii) Review eligible families for credit, housekeeping and criminal 
backgrounds to ensure suitability for counseling services;
    (iii) Conduct home visits and escort families to potential units 
selected by the families;
    (iv) Assist families in negotiating rent incentives and inducements 
from landlords during housing search;
    (v) Coordinate support services and provide counseling on 
opportunities for educational, child care, medical care and employment 
after families move to new units;
    (vi) Monitor activities for compliance with fair housing laws; and,
    (vii) Monitor rents in low poverty neighborhoods and compare with 
the Section 8 fair market rents (FMRs) every six months to determine 
the impact of the FMRs on the range of housing opportunities on 
families. [[Page 12048]] 
    HUD encourages HAs to undertake additional housing counseling 
activities that have the potential of expanding housing opportunities 
for eligible families. HUD will provide funds, in excess of the amount 
listed in Attachment 5, from the $10 million set-aside retained for 
this purpose to lead HAs contingent upon documentation of satisfactory 
performance based on application and administrative guidance, and 
review and approval by HUD, that propose innovative housing counseling 
services. HUD will determine the amount of additional funds based on 
the proposed services to be provided.
(4) Eligible Families
    A family is eligible to receive housing counseling services under 
this set-aside if the family is a current participant in the rental 
voucher or certificate programs or if the family has received a rental 
voucher or certificate from the HA to search for a unit. A family is 
also eligible if it receives rental assistance under the subprograms of 
this NOFA for Persons with HIV/AIDS, Mainstream Housing, and Homeless 
Families.
    An HA must provide housing counseling services to eligible 
families, that are current participants or if the family has received a 
rental voucher or rental certificate from the HA to search for a unit, 
in the order set forth below:
    (a) Families that currently receive income from work;
    (b) Families that currently are work-ready, i.e., enrolled in an 
education or job training program; and then,
    (c) All other eligible families. The other eligible families may be 
ranked at the HA's discretion to meet the HA's goals for policies 
established by the HA in its administrative plan.
(5) Program Record Keeping Requirements
    In addition to the normal documentation required for the Section 8 
program, each HA must maintain separate records for this set-aside as 
follows:
    (a) the amount of time that staff devote to Section 8 counseling 
activities;
    (b) a general description of the amount of landlord outreach effort 
for the set-aside to include the names and addresses of landlords 
contacted; the types of units under their control or management; 
whether the landlord has accepted Section 8 previously, and the outcome 
of the outreach effort;
    (c) the average costs of the housing counseling services per 
counseled family;
    (d) periodic surveys to measure the satisfaction of counseled 
families (customer satisfaction form to be provided by HUD);
    (e) a summary of the racial, ethnic and income composition of 
families counseled under the set-aside and correlated with the number 
and location of units shown to each family and the neighborhood in 
which the family successfully leases a unit;
    (f) information on the employment or educational training status of 
families at the time of counseling and any problems encountered;
    (g) a record of all housing referrals to landlords and the results 
of these referrals; and
    (h) periodic surveys to measure the satisfaction of landlords 
participating in this program for families that received housing 
counseling services (landlord satisfaction forms to be provided by 
HUD).
    Each HA must maintain its records to show that NPO, or in some 
cases the HA, counselled only those families eligible for these 
services.

(C) Allocation Amounts for Section 8 Counseling

    The availability of HA administrative fees is based on a formula 
allocation and is not a competition for funding. Each lead HA must 
submit an approvable application that identifies all the HAs 
participating in the Section 8 Counseling program to receive the 
administrative fee funding identified in Attachment 5. The award of 
Section 8 Counseling funds is contingent upon documentation of 
satisfactory performance based on application and administrative 
guidance, and review and approval by HUD.
    Section 8 Counseling funds of $115 million have been allocated to 
the metropolitan areas with the highest concentrations of persons 
living in poverty-concentrated census tracts, i.e., census tracts where 
30 percent or more of the persons live below the poverty level 
according to the 1990 census.
    HUD allocated the $115 million Section 8 Counseling funds to the 
metropolitan areas using the Fair Share factors. The remaining $10 
million will be awarded to eligible HAs, i.e., only those HAs listed on 
Attachment 5, as bonus funding to supplement the funding for those HAs 
and NPOs that have demonstrated successes in operating counseling 
programs of this type and that intend to undertake counseling with 
unique features such as innovative methods of counseling, metropolitan-
wide housing search assistance, and other varied combinations of 
services. HUD encourages HAs to propose unique methods for increasing 
the housing opportunities for Section 8 rental voucher and certificate 
holders and participant families.

(D) Application Submission Requirements for Section 8 Counseling

    Each lead HA must submit the items identified in Section I.(D) of 
the NOFA, Application Submission Requirements - General, and this 
section of the NOFA for Section 8 Counseling.
(1) HA Application
    Each HA listed in Attachment 5 to this NOFA may submit an 
application for Section 8 Counseling as the lead HA for the 
metropolitan area. All other HAs intending to participate in the 
Section 8 Counseling program must be identified and must submit a 
letter of support for the lead HA's application.
(2) Counseling Services
    The application must describe the HA's proposed counseling program 
over the five-year ACC term and must include a complete, specific 
statement outlining the proposed methods of housing counseling, 
landlord recruitment and data collection. HAs must describe the methods 
proposed to provide housing counseling services that increase housing 
opportunities for rental voucher and certificate holders and 
participant families beyond those normally provided under the Section 8 
program. HAs should also identify goals for the housing counseling 
services, including those performed by an NPO subcontractor, against 
which their success may be measured.
    The application must include information concerning the site at 
which the housing counseling will be conducted. An HA may provide the 
housing counseling services through a subcontract with an NPO to 
perform these functions on its behalf or, under certain circumstances, 
provide the services itself. Counseling services provided either by the 
HA or by a non-profit organization (NPO) must contain, at a minimum, 
the services described in Section V.(B)(3) of this NOFA.
    Any HA that proposes to undertake housing counseling services in 
excess of those required under this set-aside must separately identify 
the additional activities and additional funds requested for the 
innovative services as well as the proposed cost of the additional 
services during the five-year ACC term. HUD has not established a 
maximum amount per HA to be provided from the $10 million of the 
funding for this set-aside that has been retained for innovative 
services.
[[Page 12049]]

(3) Counseling Subcontractor
    The HA must submit a letter from the NPO with which it intends to 
subcontract with its application that describes the services, unless 
the HA decides to undertake the counseling services itself. The letter 
from the NPO must explain in detail the services to be performed on 
behalf of the HA and the experience or qualifications of the 
subcontractor to perform the services. The NPO letter will explain the 
timing and method of payment from the HA. In order for HUD to evaluate 
the cost of the proposed services, the HA and the NPO subcontractor 
must include information on the indirect cost arrangement to be 
established between the HA and the NPO. The NPO must submit 
documentation as a part of the application that verifies the 501(c)(3) 
(IRS Code) status of the NPO and its legal authority to operate 
throughout the metropolitan area. If the HA intends to perform the 
counseling services itself, the HA must provide the details of its 
capability to undertake the proposed counseling as required by section 
V.(D)(2) of this NOFA.
(4) Eligible Families
    The application must describe the order of priorities for families 
to receive counseling services. Section V.(B)(4) of this NOFA 
establishes the first order of priorities of families to receive 
counseling. HAs have the discretion to establish preferences within the 
order of priorities and add priorities to the end of the list 
identified by HUD. The application must also include the number of 
Section 8 rental voucher and certificate holders as well as current 
Section 8 participants that are anticipated to be eligible for housing 
counseling under this set-aside and the subprograms of this NOFA for 
Persons with HIV/AIDS, Mainstream Housing, and Homeless Families.
(5) Management and Staffing Plans and Budget
    The HA must submit a management plan, staffing plan and complete a 
five-year budget for the housing counseling program that, at a minimum 
meets the requirements of Section V.(B)(3) of this NOFA. The staffing 
plan should include a brief resume of each principal of the NPO and a 
list of its Board of Directors or other governing body.
    If the HA proposes services beyond those required in Section 
V.(B)(3) of this NOFA, the application must include a separate and 
comprehensive, five-year budget that reflects all minimum and extra 
services to be provided. This budget is not in lieu of, but is in 
addition to, the budget for the minimum services.
(6) Application Revisions After Submission to HUD
    HUD will provide the applicant an opportunity to revise its 
application after submission to HUD in response to specific written 
comments from HUD. The HA will have a thirty calendar day period from 
the date of HUD's letter to satisfy all issues with HUD. Applicants 
will be allowed to respond to HUD comments more than once during the 
thirty day correction period so long as the negotiations are completed 
by the thirty calendar day deadline.

(E) Corrections to Deficient Applications for Section 8 Counseling

(1) Acceptable Applications
    See Section V.(D)(6) of this NOFA for the applicable provisions.
(2) Unacceptable Applications
    The 14 calendar day technical correction period does not apply to 
this NOFA. See Section VIII.(D)(6) of this NOFA for the applicable 
provisions.

(F) Application Selection Process for Section 8 Counseling

(1) General
    The funds available under this NOFA are being awarded on a formula 
basis as listed in Attachment 5 of the NOFA. An HA must submit an 
application to receive the Section 8 counseling funds. Applications 
will be reviewed by HUD Headquarters to determine whether or not they 
are technically adequate and responsive to the application submission 
criteria based on the NOFA requirements. An application must receive a 
minimum score of 40 points under the threshold criteria shown below in 
order to be approvable for funding. To expedite the review of 
applications and the award of funds under this subprogram, HUD 
Headquarters may initiate its review of any application received prior 
to the deadline established for submission.
    HUD will allocate the available funding to the HAs identified in 
technically adequate and responsive applications. If HUD receives 
applications for funding less than the amount made available for an 
area under this NOFA, due to failure of an applicant to apply or due to 
technically inadequate applications, HUD will make these funds 
available to other applicants.
(2) Application Threshold Criteria
    (a) Threshold Criterion 1: Proposed Methodology for Housing 
Counseling Services (40 points).
    HUD Headquarters will assign up to 40 points for the proposed 
methodologies for conducting the housing counseling program, landlord 
outreach and program evaluation. The highest assessment of points is 
limited to those applications where the applicant provides an excellent 
understanding of the services to be performed and proposed innovative 
techniques to achieve the goals of the set-aside.
    (b) Threshold Criterion 2: Experience and Capability of NPO/HA (35 
points).
    HUD Headquarters will assign up to 35 points for an application 
where the NPO/HA providing the housing counseling services has the 
capability and experience to successfully undertake the housing 
counseling services. No points will be awarded for an application that 
shows the service provider has minimal experience or experience only in 
the normal Section 8 Equal Opportunity Housing Plan activities.

VI. NOFA for Mainstream Housing Opportunities for Persons With 
Disabilities (Mainstream Program)

(A) Mainstream Program Application Deadline Date

    The deadline date for Mainstream Program applications is listed in 
Section I.(B) of the NOFA.

(B) Purpose and Substantive Description of Mainstream Program

(1) Purpose
    The Secretary has established a Mainstream Housing Opportunities 
for Persons with Disabilities Program (Mainstream Program) to provide 
rental vouchers and certificates to enable persons with disabilities to 
rent affordable private housing of their choice, in a nonsegregated 
environment.
    Federal housing assistance for persons with disabilities has 
generally been provided under project-based programs targeted for 
groups with special needs (i.e., housing exclusively for persons with 
disabilities or housing exclusively for the elderly and disabled 
populations). This approach partly reflects the disparity between the 
needs of persons with disabilities and the availability of decent, 
affordable and accessible housing in an integrated setting. In 
addition, persons with disabilities often face difficulties in locating 
suitable and accessible housing on the private market and linking their 
[[Page 12050]] housing environment with any supportive services that 
they may want or need.
    The Mainstream Program will reach communities that have 
concentrations of persons with disabilities in need of housing 
assistance, including those living in housing of an institutional 
nature. The Department expects the program to be of particular interest 
to HAs with public housing reserved for occupancy by elderly families 
and disabled families that wish to provide nonpublic housing options to 
some of their disabled residents.
    (a) Application Options. HUD will award funding for rental vouchers 
and/or certificates under the Mainstream Program through two 
application options: (1) An application option open only to HAs that 
submit an allocation plan to designate public housing for occupancy by 
elderly families, and that also administer a Section 8 rental 
certificate, rental voucher or moderate rehabilitation program; and (2) 
an application option for general use rental assistance for persons 
with disabilities, open to all HAs which currently administer a Section 
8 rental certificate, rental voucher or moderate rehabilitation 
program. Eligible HAs may apply for assistance under either or both 
application options.
    Under the first application option, HUD will make available 
approximately 1,250 rental vouchers and certificates to support 
approvable HA allocation plans to designate housing for elderly 
families. The rental vouchers and certificates will enable HAs to meet 
the designated housing regulatory requirement to make available 
sufficient housing resources to provide assistance to at least the 
number of nonelderly disabled families that would have been housed by 
the HA if occupancy in the designated public housing project were not 
restricted to elderly households. Applicants who choose to apply under 
this option should be familiar with the Public Housing Designated 
Housing rule, published in the Federal Register April 13, 1994 (24 CFR 
part 945). HUD intends to fund all approvable applications under the 
designated housing allocation plan application option, unless HUD 
receives applications for more funding than available for this option. 
In that case, HUD will select applications for funding by lottery.
    Under the second application option, for general use rental 
assistance for persons with disabilities, HUD will make available 
approximately 1,250 Section 8 rental vouchers and certificates for HAs 
to increase the supply of mainstream housing opportunities available to 
persons with disabilities. HUD will select HA applications for funding 
under the general use application option by lottery.
    (b) Limit on Rental Assistance Requested. An eligible HA applying 
under the general use application option may apply for up to 150 rental 
vouchers and/or certificates. An HA applying in conjunction with 
submission of a designated housing allocation plan may apply for only 
the number of units needed to meet the requirements of the allocation 
plan to provide housing resources for persons who otherwise would have 
received public housing, up to a maximum of 150 rental vouchers and 
certificates.
(2) Guidelines
    (a) Definitions.
    Allocation plan. A HUD-approved allocation plan required of HAs 
seeking to designate a project for occupancy by elderly families. See 
24 CFR 945.203.
    Disabled Family. A family whose head, spouse or sole member is a 
person with disabilities. The term ``disabled family'' may include two 
or more persons with disabilities living together, and one or more 
persons with disabilities living with one or more persons who are 
determined to be essential to the care or well-being of the person or 
persons with disabilities. A disabled family may include persons with 
disabilities who are elderly.
    Person with disabilities. A person who--
    (a) Has a disability as defined in section 223 of the Social 
Security Act (42 U.S.C. 423), or
    (b) Is determined to have a physical, mental or emotional 
impairment that:
    (i) is expected to be of long-continued and indefinite duration;
    (ii) substantially impedes his or her ability to live 
independently; and
    (iii) is of such a nature that such ability could be improved by 
more suitable housing conditions, or
    (c) Has a developmental disability as defined in section 102 of the 
Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 
6001(5)).
    The term ``person with disabilities'' does not exclude persons who 
have the disease of acquired immunodeficiency syndrome (AIDS) or any 
conditions arising from the etiologic agent for acquired 
immunodeficiency syndrome (HIV).
    Section 8 Counseling. Services to increase access by program 
participants to housing units in a variety of neighborhoods and to 
assist participants in locating and obtaining a unit suited to their 
needs. See Section V of this NOFA.
    Supportive services. Assistance that addresses the needs of 
eligible persons, provides appropriate services or assists such persons 
in obtaining appropriate services, including health care, mental health 
treatment, substance and alcohol abuse services, child care services, 
case management services, counseling, supervision, education, job 
training and placement, and other services essential for achieving and 
maintaining independent living. Inpatient acute hospital care does not 
qualify as a supportive service.
    Supportive service provider (or service provider). A person or 
organization (including peer support and consumer-run organizations) 
licensed or otherwise qualified to provide supportive services either 
for profit or not for profit that has been in existence for at least 
one year and delivers some or all of the above services to a client 
population.
    (b) Eligible HAs.
    (i) Rental assistance in conjunction with designated housing 
allocation plans. HAs that submit an allocation plan to designate 
public housing for occupancy by elderly families, and that also 
administer a Section 8 rental certificate, rental voucher or moderate 
rehabilitation program.
    (ii) General use rental assistance for persons with disabilities. 
HAs which currently administer a Section 8 rental certificate, rental 
voucher or moderate rehabilitation program.
    (iii) Additional Eligibility Requirements. See sections I(D)(2) and 
I(G)(2) of this NOFA.
    (c) Eligible Participants.
    (i) Rental assistance in conjunction with designated housing 
allocation plans. Only persons with disabilities and disabled families 
who live in public housing that has been designated for occupancy by 
the elderly, or disabled families who are on the HA's public housing 
waiting list, may receive a rental voucher or certificate awarded under 
the application option in conjunction with designated housing 
allocation plans. Nonelderly persons with disabilities and disabled 
families who live in public housing designated for the elderly in 
accordance with an allocation plan submitted in response to this NOFA, 
need not be listed on the Section 8 waiting list in order to be offered 
and receive Section 8 rental assistance as an incentive for a voluntary 
transfer from the designated project. These families may be admitted to 
the Section 8 program as a special admission (24 CFR 982.203).
    (ii) General use rental assistance for persons with disabilities. 
Only persons [[Page 12051]] with disabilities and disabled families may 
receive a rental voucher or certificate awarded under the general use 
application option. However, in selecting disabled applicants from the 
Section 8 waiting list, HAs must provide assistance on a priority basis 
to nonelderly disabled persons who reside in public housing reserved 
for occupancy by elderly families and disabled families, or who are on 
the public housing waiting list and will not be housed because a public 
housing project has been designated for elderly families.
    (d) Rental Voucher and Certificate Assistance.
    (i) Section 8 regulations. HAs must administer the Mainstream 
Program in accordance with HUD regulations governing the Section 8 
rental voucher and certificate programs.
    (ii) Section 8 admissions requirements. Section 8 assistance must 
be provided to eligible applicants in conformity with applicable rules 
governing the Section 8 program including the federal preference rules, 
and in accordance with the terms of the HA's designated housing 
allocation plan where applicable, and with HUD-approved administrative 
and equal opportunity housing plans.
    If there is an insufficient pool of persons with disabilities and 
disabled families on the HA Section 8 waiting list, an HA may conduct 
outreach to encourage eligible persons to apply for the general use 
Mainstream Program. Outreach may include contacting independent living 
centers, disabled advocacy organizations, and medical, mental health, 
and social service providers for referrals of persons receiving such 
services who would benefit from the general use Mainstream Program.
    If the HA's Section 8 waiting list is closed, and if the HA has 
insufficient applicants on its Section 8 waiting list to use all 
awarded Mainstream Program rental vouchers and certificates, the HA may 
open the waiting list to only those who qualify for the Mainstream 
Program.
    (iii) Turnover. When a rental voucher or rental certificate under 
this program becomes available for reissue (e.g., the individual or 
family initially selected for the program drops out of the program or 
is unsuccessful in the search for a unit), the rental assistance may be 
used only for another individual or family eligible for assistance 
under this program during the five-year term of the ACC for the 
Mainstream Program.
    (e) HA Responsibilities. In addition to normal HA responsibilities 
under the Section 8 programs and under HUD regulations for 
nondiscrimination based on handicap (24 CFR 8.28), HAs that receive 
rental voucher or certificate funding under the Mainstream Program 
must:
    (i) assist program participants to gain access to supportive 
services available within the community, and to identify public or 
private funding sources for accessibility features, when participants 
request such assistance;
    (ii) not deny persons who qualify for rental assistance under the 
Mainstream Program other housing opportunities for which they are 
eligible;
    (iii) not deny other housing opportunities, or otherwise restrict 
access to HA programs, to eligible applicants who choose not to 
participate in the Mainstream Program; and
    (iv) not require eligible applicants to accept supportive services 
in order to participate in the Mainstream Program.

(C) Mainstream Program Allocation Amounts

    This NOFA announces the availability of up to $85.7 million of 
budget authority that will support approximately 2,500 rental vouchers 
or certificates for the Mainstream Program. The Mainstream Program 
includes an option for HAs to apply for rental vouchers and 
certificates in conjunction with submission of an allocation plan to 
designate public housing for elderly families. HUD will make available 
approximately $42.9 million of the $85.7 million total, to support 
approximately 1,250 rental vouchers and certificates, for the 
application option to support designated housing allocation plans. 
Remaining funding of approximately $42.9 million will support 
approximately 1,250 rental vouchers and certificates for general use 
rental assistance for persons with disabilities and disabled families. 
In the event HUD receives insufficient approvable applications for the 
designated housing allocation plan option, the surplus funding will be 
made available to the general use Mainstream Program applicants.

(D) Application Submission Requirements for Mainstream Program in 
Conjunction With Submission of Designated Housing Allocation Plans

    Note that a separate application is required for each application 
option under the Mainstream Program. An HA may request only the number 
of rental vouchers and certificates supported by the designated housing 
allocation plan, not to exceed 150. Each application must include the 
items identified in Section I.(D) of the NOFA, Application Submission 
Requirements--General, and items in this section of the NOFA for the 
Mainstream Program in support of designated housing allocation plans.
(1) Approvable Designated Housing Allocation Plan
    The application must include an approvable allocation plan to 
designate housing for the elderly in accordance with 24 CFR 945.203.
(2) Description of Need for Mainstream Program Rental Vouchers and 
Certificates
    The application must include a description of how the rental 
assistance is necessary to meet the requirement of 24 CFR 
945.203(6)(iv) to provide assistance to at least the number of 
nonelderly disabled families that would have been housed by the HA if 
occupancy in units in the designated project were not restricted to 
elderly families. HAs may not request more than the number of rental 
voucher and certificates necessary to meet the above obligation, up to 
a maximum of 150.
(3) Description of Program Implementation
    The application must include a narrative description of how the HA 
will operate its Mainstream Program. The description must include:
    (a) Eligibility. A description of which portions of the eligible 
population the HA will serve (i.e., nonelderly disabled families on the 
public housing waiting list, nonelderly disabled families currently 
residing in housing designated for the elderly, or both).
    (b) HA Assistance in Obtaining Accessibility Features. A 
description of how the HA will carry out its responsibilities under 24 
CFR 8.28 to assist recipients in locating units with needed 
accessibility features. A description of the assistance the HA will 
provide to identify public or private funding sources (including any HA 
resources) for accessibility features such as ramps, grab bars, visual 
smoke alarms and fire detectors, accessible electrical controls, 
thermostats, and door hardware, and structural changes to dwelling 
units or common areas.
    (c) Section 8 Counseling. A description of the assistance the HA 
will provide to eligible applicants to locate suitable housing in the 
private market. See Section V of this NOFA.

(E) Application Submission Requirements for General Mainstream Program 
for Persons With Disabilities

    Note that a separate application is required for each application 
option under the Mainstream Program. An HA may request up to a maximum 
of 150 [[Page 12052]] rental vouchers and certificates under the 
general use Mainstream Program. Each application must include the items 
identified in Section I.(D) of the NOFA, Application Submission 
Requirements--General, and items in this section of the NOFA for the 
general use Mainstream Program.
(1) Description of Need for Mainstream Program Rental Assistance
    The application must demonstrate a significant need for Mainstream 
Program rental vouchers and certificates, and demonstrate that the 
demand for such housing would equal or exceed the requested number of 
units.
(2) Mainstream Program Operating Plan
    The application must include a description of an adequate plan for 
operating a program to serve eligible persons with disabilities, 
including a description of how the HA will carry out its 
responsibilities under 24 CFR 8.28 to assist recipients in locating 
units with needed accessibility features.
(3) Supportive Services Plan
    The application must describe an adequate plan to assist recipients 
of Mainstream Program rental assistance, should they request such 
assistance, to gain access to supportive services available within the 
community. The application must demonstrate that the HA has identified 
service providers who will assist recipients to overcome impediments to 
success in the Mainstream Program. Such provider may include nonprofit 
organizations able to fund accessibility renovation and supportive 
services providers able to assist recipients to meet such lease 
obligations as adequate housekeeping and timely rental payments.

(F) Corrections to Deficient Applications

(1) Acceptable Applications
    See Section I.(G)(1) of this NOFA.
(2) Unacceptable Applications
    See Section I.(G)(2) of this NOFA.

(G) Mainstream Program Application Selection Process

(1) Application Option in Support of Designated Housing Allocation 
Plans
    (a) HUD Office Review. Upon receipt, the Office of Public Housing 
in the HUD Office will screen HA applications and stop processing any 
applications found unacceptable for further processing. Immediately 
after screening an acceptable application, the Offices of Public 
Housing and Fair Housing and Equal Opportunity in the HUD Office will 
review the applicant's designated housing allocation plan in accordance 
with 24 CFR 945.203.
    If, within the 45-day or 90-day review period provided under 24 CFR 
945.203(e)(2), the HUD Office finds an allocation plan approvable, 
subject to receipt of the requested rental assistance, the Offices of 
Public Housing and Fair Housing and Equal Opportunity will review the 
rest of the Mainstream Program application to determine if the 
application is technically adequate and responsive to the requirements 
of the NOFA. If the HUD Office determines that an allocation plan is 
approvable, and that the remainder of the Mainstream Program 
application is technically adequate and responsive, it will recommend 
to HUD Headquarters that the application be funded.
    If the HUD Office disapproves an allocation plan submitted in 
response to this NOFA, the HA's application under the Mainstream 
Program will be rejected and the HA will not be eligible for the rental 
vouchers and certificates available under this Mainstream Program NOFA. 
However, the HA may continue to pursue its plans to designate housing 
for elderly families if it can identify other additional housing 
resources that it will need to meet the designated housing allocation 
plan requirements under 24 CFR 945.203.
    (b) Funding. Headquarters will fund all applications that are 
recommended for funding by the HUD Offices, unless HUD receives 
approvable applications for more funds than allocated for the 
designated housing allocation plan application option. If HUD receives 
approvable applications for more funding than is available for the 
allocation plan option, HUD will select applicants to be funded by 
lottery. All HAs identified by the HUD Offices as having submitted 
technically adequate and responsive applications will be included in 
the lottery. As HAs are selected, the cost of funding the applications 
will be subtracted from the funds available. In order to achieve 
geographic diversity, HUD Headquarters will limit the number of 
applications selected for funding from any state to 10 percent of the 
budget authority available for the designated housing allocation plan 
application option.
(2) Application Option for General Use Mainstream Program
    After the HUD Office has screened HA applications and disapproved 
any applications found unacceptable for further processing (see Section 
I.(G)(2) of this NOFA), the HUD Office will review all acceptable 
applications to ensure that they are technically adequate and 
responsive to the requirements of the NOFA. Each HUD Office will send 
to HUD Headquarters the following information on each application that 
is found technically adequate and responsive:
    (a) Name and address of the HA;
    (b) HUD Office contact person and telephone number;
    (c) The completed fund reservation worksheet, indicating the number 
of units requested in the HA application and approved by the HUD Office 
during the course of its review, and the corresponding budget 
authority.
    Headquarters will select eligible HAs to be funded by lottery. All 
HAs identified by the HUD Offices as having submitted technically 
adequate and responsive applications will be included in the lottery. 
As HAs are selected, the cost of funding the applications will be 
subtracted from the funds available. In order to achieve geographic 
diversity, HUD Headquarters will limit the number of applications 
selected for funding from any state to 10 percent of the budget 
authority available for the general use Mainstream Program.
    Applications will be funded for the total number of units requested 
by the HA and approved by the HUD Office in accordance with the NOFA. 
However, when remaining budget authority is insufficient to fund the 
last selected HA application in full, HUD Headquarters will fund that 
application to the extent of the funding available.
(3) Program Type
    If an HA application specifically requests funding for either 
rental vouchers or rental certificates, and funding for the specified 
program is not available, HUD will award the available form of 
assistance, notwithstanding the program type specified in the HA 
application.

VII. NOFA for Persons With HIV/AIDS

(A) Application Deadline Date for Persons With HIV/AIDS Subprogram

    The Deadline Date for applications for the subprogram for Persons 
with HIV/AIDS is listed in Section I.(B) of the NOFA.

(B) Purpose and Substantive Description of Subprogram for Persons With 
HIV/AIDS

(1) General
    The two subprograms for Persons with HIV/AIDS and for Homeless 
Families together provide approximately $514 million in budget 
authority for an estimated 15,000 rental vouchers and certificates for 
homeless [[Page 12053]] families. Approximately $103 million, or 3,000 
rental vouchers, will be set-aside for persons with HIV/AIDS and their 
families who are homeless or who are at risk of homelessness. 
Approximately $411 million, or approximately 12,000 rental vouchers and 
certificates, will be made available to provide rental assistance to 
homeless families living in transitional housing or emergency shelters. 
Section 8 budget authority for each of these subprograms is allocated 
by formula as described in this section and in section VIII of this 
NOFA.
    The Department recognizes that the HIV/AIDS epidemic has had a 
wide-spread and perverse impact on the ability of communities to 
provide the appropriate housing and care for their residents who are 
living with HIV/AIDS. The findings of the National Commission on AIDS 
in Housing and the HIV/AIDS Epidemic (issued in June 1992) state that 
there is ``frequently desperate need for safe shelter that provides not 
only protection and comfort, but also a base in which and from which to 
receive services, care and support.'' Since 1992, the Department has 
provided assistance to communities to address these needs under the 
Housing Opportunities for Persons with AIDS (HOPWA) program. The HOPWA 
program supports community planning and coordination of public and 
private efforts and supports programs that provide housing and 
supportive services for low-income persons living with HIV/AIDS and 
their families. This set-aside of rental vouchers is intended to 
complement the community efforts already underway by providing 
permanent housing resources and ensuring coordination of housing and 
health-care programs with HAs, governmental agencies and community-
based organizations.
    The set-aside of rental vouchers for persons with HIV/AIDS and 
their families is an initiative of the Department that will help 
communities establish a continuum of care for this population by 
creating additional permanent housing options. This initiative combines 
rental voucher assistance to selected HAs in conjunction with State and 
local governments that have been implementing planning efforts and 
programs that provide housing and services for persons with HIV/AIDS 
under the Housing Opportunities for Persons with AIDS (HOPWA) program.
    This notice stipulates the roles of the HA, the HOPWA grantee and 
community-based organizations which provide assistance to persons with 
HIV/AIDS and their families. These community planning and program 
efforts generally involve experienced non-profit housing and service 
providers engaged in connecting housing assistance for persons with 
HIV/AIDS to appropriate case management, comprehensive health services 
and other supportive services for clients. Community-based 
organizations will undertake outreach efforts to identify eligible 
people with HIV/AIDS in need of permanent housing. The assistance will 
be given on a priority basis to persons with HIV/AIDS who are homeless 
and on a lower priority basis to persons with HIV/AIDS who are at risk 
of homelessness. Community-based organizations will also assist these 
clients in finding and securing permanent housing and provide or assist 
clients in accessing appropriate supportive services.
    The Department expects that HOPWA grantees and HAs will be able to 
initiate their programs within 120 days after approval of their 
application. To expedite the administration of this program, the area's 
HOPWA formula grantee should consider how HOPWA funds might be used in 
support of this set-aside of rental vouchers, including technical 
assistance and resource identification activities to assist in the 
delivery of this housing resource.
(2) Guidelines
    Under this initiative HAs will provide Section 8 rental vouchers to 
persons with HIV/AIDS in conjunction with program planning and 
comprehensive supportive services from other sources which are 
coordinated by the HOPWA grantee. The initiative will be implemented at 
the local level through partnerships of grantees of the HOPWA program, 
HAs and community-based organizations. The roles and responsibilities 
of each participating entity are detailed in this notice. The 
application must be submitted jointly by an area's HOPWA grantee and 
one or more eligible HAs that the HOPWA grantee designates and that 
agree to administer the rental vouchers for use in conjunction with 
services provided by community-based organizations. The application 
must designate the number of rental vouchers for the area or subarea to 
be administered by each HA. HAs identified by HUD with certain civil 
rights or major program violations are ineligible to apply.
    Rental vouchers under this subprogram will be administered in 
conjunction with existing community planning processes for housing 
assistance and supportive services for persons with HIV/AIDS. This 
connection will provide greater program efficiencies, reduce the need 
for additional planning mechanisms, ensure coordination of the program 
with other current related efforts and help ensure an appropriate 
response to the person's or family's individual housing and related 
service needs. The HOPWA grantee must ensure that the supportive 
service component will be made available for the term of the Section 8 
funding.
    (a) Definitions.
    The definition of family for the purposes of this set-aside is a 
definition similar to that established for the Housing Opportunities 
for Persons with AIDS (HOPWA) program at 24 CFR 574.3.
    ``Family'' means a household composed of two or more related 
persons. The term family also includes one or more eligible persons 
living with another person or persons who are determined to be 
important to their care or well being, and the surviving member or 
members of any family described in this definition who were living in a 
unit assisted under this program with the person with AIDS at the time 
of his or her death.
    While the Department expects that most families who apply for this 
set-aside will be single persons, the families of eligible persons may 
also be assisted. This NOFA uses the term ``person'' frequently, 
although the eligible population for this set-aside, as with the 
regular rental assistance programs, includes the family of any person 
selected to participate in the set-aside.
    (b) HOPWA Grantee Responsibilities. The grantee for the 1995 HOPWA 
formula allocation, or its designated representative, will have 
responsibilities that include:
    (i) planning for the use of this set-aside in coordination with HAs 
and existing HIV/AIDS housing and services programs and providers in 
the entitlement area, including participation by persons living with 
HIV/AIDS and their families;
    (ii) establishing participation agreements with HAs to implement 
this initiative; if more than one HA in an area will be participating, 
deciding how to suballocate available funding for the service area 
between or among the participating HAs;
    (iii) establishing participation agreements with community-based 
organizations as service providers to implement this initiative; these 
agreements can be used to implement a plan for the provision of 
supportive services, including outreach to identify eligible persons 
and assistance in locating and securing suitable housing, ongoing case 
management, health-care [[Page 12054]] and other services; these 
services will be funded from sources other than this program; and
    (iv) coordinating the submission of an application to HUD for its 
service area that designates the participating HA(s) and community-
based organizations and is responsive to the criteria established in 
the Application Submission Requirements of this notice.
    (c) HA Responsibilities. HAs are responsible for administering the 
rental voucher program in accordance with HUD regulations and 
requirements, including:
    (i) conducting initial and periodic Housing Quality Standards 
inspections and contracting with landlords;
    (ii) reviewing the Section 8 waiting list to determine if there are 
any individuals already on the waiting list who may be eligible for the 
Section 8 set-aside for persons with HIV/AIDS who are homeless or at 
risk or homelessness and referring them to service providers;
    (iii) after proper verification of Section 8 eligibility of 
individuals referred by the service providers, adding individuals to 
the Section 8 waiting list and issuing rental vouchers;
    (iv) amending its administrative plan and equal opportunity housing 
plan to provide for a preference for persons with HIV/AIDS to 
participate in the Section 8 set-aside for persons with HIV/AIDS in a 
number equal to the number of rental vouchers provided under this 
subprogram for the area;
    (v) provide technical assistance to service providers and others in 
understanding and utilizing this Section 8 set-aside; and
    (vi) maintaining records and providing information for evaluation 
purposes, as required by HUD.
    (d) Service Provider Responsibilities. Community-based 
organizations that provide housing and/or services may agree to 
undertake responsibilities which include:
    (i) providing outreach to identify participants who are eligible 
for the Section 8 set-aside for persons with HIV/AIDS who are homeless 
or at risk of homelessness;
    (ii) assisting HAs in verifying income and other eligibility 
criteria;
    (iii) referring eligible individuals to the HAs for determination 
of Section 8 eligibility and placement on the Section 8 waiting list;
    (iv) providing or assisting clients in arranging for supportive 
services and health care as needed, such as case management, 
counseling, day care, outpatient health services, in-home nursing care, 
hospitalization and hospice care;
    (v) providing housing search assistance, assistance in securing 
housing, move-in assistance and housing counseling as appropriate; and
    (vi) maintaining records and providing information for evaluation 
purposes, as required by HUD.
    (e) Participant Eligibility. Eligible person means a person with 
acquired immunodeficiency syndrome (AIDS) or infection with the human 
immunodeficiency virus (HIV) and his or her family who qualify as very 
low-income. Assistance will be provided on a priority basis to eligible 
persons who are homeless and on a lower priority basis to eligible 
persons who are at risk of homelessness. Programs may target assistance 
to eligible persons based on additional criteria of need, such as need 
for higher levels of care or disabling conditions, but not persons 
institutionalized or hospitalized.
    (f) Rental Voucher Assistance. HAs must administer this program in 
accordance with HUD's regulations governing the Section 8 rental 
voucher and certificate programs. The HA may issue a rental certificate 
instead of a rental voucher to an individual selected to participate in 
the initiative if the individual requests a rental certificate and the 
HA has one available. If Section 8 assistance for a participant under 
this demonstration ends during the five-year term of the ACC for the 
Section 8 rental vouchers provided under this demonstration, the rental 
assistance must be reissued to another eligible person with HIV/AIDS. 
In order to receive rental assistance provided under this Section 8 
set-aside, a person or family must:
    (i) have been identified by a participating service provider as 
meeting the program criteria and referred to a participating HA and 
placed on its Section 8 waiting list; or
    (ii) have been identified by the HA from the Section 8 waiting list 
as an eligible person and referred to a participating service provider.

(C) Allocation Amounts for Persons With HIV/AIDS

    This NOFA provides approximately $103 million for approximately 
3,000 rental vouchers set aside for persons with HIV/AIDS and their 
families who are homeless or at risk of homelessness. The rental 
vouchers are allocated to 66 areas that have had the greatest number of 
reported cases of AIDS and in which community planning, housing 
assistance and supportive services are being provided by the 
governmental agency that is administering the Housing Opportunities for 
Persons with AIDS (HOPWA) program in the area. This notice allocates 
rental voucher budget authority based on the HOPWA formula allocation 
established by the AIDS Housing Opportunities Act (42 U.S.C. 12901). 
That formula provides a mechanism to provide assistance to areas that 
have the highest numbers of reported cases of AIDS and to metropolitan 
areas that have a higher-than-average incidence of AIDS within their 
population. The Act also recognizes the need for the coordinated 
response to AIDS within the metropolitan area or within a State. In FY 
95, HOPWA formula allocations were made to 66 grantees, including 43 
qualifying cities in Eligible Metropolitan Statistical Areas (EMSA) and 
23 States for areas outside of these EMSAs. Rental vouchers under this 
subprogram are allocated based on this formula for the areas listed in 
Attachment 3, arranged by HUD Offices.

(D) Application Submission Requirements for Persons With HIV/AIDS 
Subprogram

    Each HA must submit the items identified in Section I.(D) of the 
NOFA, Application Submission Requirements--General, and this section of 
the NOFA for Persons with HIV/AIDS. If more than one HA is designated 
by the HOPWA grantee to administer the rental vouchers, each HA must 
submit the required information under Section VII.(D)(1).
(1) Need for Subprogram for Persons with AIDS
    The application must describe the need for a rental assistance 
program targeted to persons with HIV/AIDS and their families who are 
homeless or at risk of homelessness as evidenced by data which show the 
unmet need in the area to be served.
(2) Program Implementation
    The application must describe the timely implementation of a plan 
that will result in eligible participants finding permanent housing. 
The plan must have all of the following elements and must link all the 
elements in a consistent framework:
    (a) the participating HA(s) and participating community-based 
organizations providing services are identified;
    (b) the proposed outreach and selection efforts ensure that the 
targeted population in the area to be served is served;
    (c) the plan provides housing search assistance that will help 
eligible persons obtain appropriate housing; and
    (d) the plan describes an evaluation component that will result in 
an [[Page 12055]] evaluation of program effectiveness by the HOPWA 
grantee, the participating HA, and the participating community-based 
organizations undertaking housing-related activities.
(3) Linkage to Supportive Services
    The application must demonstrate that supportive services will be 
made available to meet the needs of the targeted population. This is 
evidenced by:
    (a) the identification of participating community-based 
organization(s);
    (b) the identification of supportive services that are appropriate 
to the needs of the population proposed to be served;
    (c) a description of procedures to ensure that participants have 
access to these services; and
    (d) a plan for monitoring and evaluating the supportive services 
provided to eligible persons to ensure that services are appropriate to 
their changing needs on an individual basis.
(4) Application Revisions After Submission to HUD
    HUD will provide the applicant an opportunity to revise its 
application after submission to HUD in response to specific written 
comments from HUD. The joint applicants will have a thirty calendar day 
period from the date of HUD's letter to satisfy all issues with HUD. 
Applicants will be allowed to respond to HUD comments more than once 
during the thirty calendar day correction period so long as the 
negotiations are completed by the thirty calendar day deadline.

(E) Corrections to Deficient Applications for Persons With HIV/AIDS 
Subprogram

(1) Acceptable Applications
    See Section VII.(D)(4) of this NOFA for the applicable provisions.
(2) Unacceptable Applications
    The 14 calendar day technical correction period does not apply to 
this NOFA. See Section VII.(D)(4) of this NOFA for the applicable 
provisions.

(F) Application Selection Process for Persons With HIV/AIDS Subprogram

    The funds available under this NOFA are being awarded on a formula 
basis as listed in Attachment 3 of the NOFA. Applications will be 
reviewed by the HUD Office to determine whether or not they are 
technically adequate and responsive to the application submission 
criteria based on the NOFA requirements. To expedite the review of 
applications and the award of funds under this subprogram, the HUD 
Office may initiate its review of any application received prior to the 
deadline established for submission.
    The Office of Public Housing in the HUD Office will initially 
screen all applications to determine if an application is complete, 
technically adequate and responsive to the general application 
selection requirements. The Community Planning and Development (CPD) 
Office for the area will review the application to determine if an 
application is responsive to the criteria for need, program 
implementation, and quality of supportive services. If an application 
is found to be unresponsive to a criterion, the HUD Office will notify 
the applicant of its finding and permit the applicant to revise the 
application as provided in Section VII.(D)(4).
    The HUD Office of Public Housing will approve applications that are 
technically adequate and responsive applications. If a local HA and 
HOPWA grantee do not submit a joint application by the deadline date 
specified in the NOFA, or if its application is disapproved, the 
allocation for that HOPWA jurisdiction will be reallocated to another 
HOPWA jurisdiction within the same State. If no other HOPWA grantee 
within the same State applied, the allocation will be reallocated to 
HOPWA grantees in other States.

VIII. Subprogram for Homeless Families

(A) Application Deadline Date for Homeless Families Subprogram

    The deadline date for applications for the set-aside of rental 
vouchers and certificates for Homeless Families is listed in Section 
I.(B) of the NOFA.

(B) Purpose and Substantive Description of the Homeless Families 
Subprogram

(1) General
    The two subprograms for Homeless Families and for Persons with HIV/
AIDS together provide approximately $514 million in budget authority 
for an estimated 15,000 rental vouchers and certificates for homeless 
Americans. Approximately $411 million, or 12,000 rental vouchers and 
certificates, will be made available to provide rental assistance to 
homeless families living in transitional housing or emergency shelters. 
Approximately $103 million, or 3,000 rental vouchers and certificates 
will be set-aside for persons with HIV/AIDS and their families who are 
homeless or who are at risk of homelessness. These allocations of 
Section 8 budget authority will each be allocated by formula as 
described in the NOFA.
    Communities across the country are developing or refining 
comprehensive homeless assistance strategies following the continuum of 
care approach. The fundamental components of a continuum of care system 
include: an emergency shelter/needs assessment to identify an 
individual's or family's needs; transitional housing and appropriate 
supportive services to help those individuals and families who are not 
prepared to make the transition to permanent housing and independent 
living; and permanent housing or permanent supportive housing. 
Permanent housing resources are essential to the success of efforts to 
alleviate homelessness. Homeless individuals and families who lack 
these resources become trapped in emergency shelters and transitional 
housing, occupying space and using limited resources that could benefit 
other homeless persons.
    This program is designed to support local homeless assistance 
strategies by providing Section 8 rental vouchers and certificates to 
assist homeless families who are currently living in transitional 
housing or emergency shelters and are immediately ready for permanent 
housing. The program is also designed to ensure that the homeless 
families moving to permanent housing will receive appropriate 
assistance in finding housing, moving into the permanent housing, 
adjusting to their new surroundings, and obtaining needed services, 
such as day care. These services will help the formerly homeless 
families remain in permanent housing and avoid future homelessness.
    The program depends on a partnership between the HA, the ESG 
jurisdiction, and homeless provider organizations. Homeless provider 
organizations identified to participate in the set-aside program must 
be chosen through a community-wide process. The ESG jurisdiction and 
the homeless provider organizations will be responsible for providing 
housing counseling, follow-up and other supportive services to 
participating families as needed for stabilization in permanent 
housing. The homeless provider organizations will identify the homeless 
families currently living in transitional housing or emergency shelters 
that are immediately ready for permanent housing. The homeless provider 
organizations will certify to the HA that the families meet the 
``immediately ready for permanent housing'' definition. The HA will 
provide rental assistance based on the criteria established in this 
NOFA.
(2) Definitions
    (a) Emergency Shelter Grant Jurisdictions. [[Page 12056]] 
    An ESG jurisdiction is a State, metropolitan city or urban county 
that is eligible to receive a FY 95 grant under the Emergency Shelter 
Grants Program, as described in 24 CFR 576.43.
    (b) Homeless Provider Organizations.
    An organization, including non-profits and others, that delivers 
housing search assistance and other services to homeless persons and 
families.
    (c) Immediately Ready for Permanent Housing.
    A family, that prior to receipt of rental assistance under this 
NOFA, has received an intensive needs assessment to determine if the 
family is immediately ready for permanent housing. Specifically, a 
family that is immediately ready for permanent housing has:
    (i) needs that were appropriately addressed through a transitional 
housing program; or
    (ii) needs that can be addressed by receiving appropriate services 
and/or treatment in permanent housing; and
    (iii) the life skills needed to succeed in the rental assistance 
program.
(3) ESG Grantee Responsibilities
    The ESG grantee is responsible for initiating the community-wide 
process and forming the partnership with the HA as well as identifying 
and involving homeless provider organizations. The ESG grantee is 
responsible for coordinating the joint application with the HA. The ESG 
grantee as part of the ongoing partnership is responsible for ensuring 
that eligible homeless participants are being served in the program. 
The ESG grantee is also responsible for ensuring that housing search 
assistance and stabilization services are being provided by the 
homeless provider organizations.
(4) Housing Agency Responsibilities
    HAs are responsible for administering the rental voucher program in 
accordance with HUD regulations and requirements, including:
    (a) conducting initial and periodic Housing Quality Standards 
inspections and contracting with landlords;
    (b) reviewing the Section 8 waiting list to determine if there are 
any individuals already on the Section 8 waiting list who may be 
eligible for the Section 8 set-aside for Homeless Families and 
referring them to homeless provider organizations;
    (c) after proper verification of Section 8 eligibility of 
individuals referred by the homeless provider organization, adding 
individuals to the Section 8 waiting list and issuing rental vouchers 
or certificates;
    (d) amending its administrative plan and equal opportunity housing 
plan to provide for a preference for Homeless Families referred by 
homeless provider organizations that meet the ``immediately ready for 
permanent housing'' requirement to participate in the Section 8 set-
aside for Homeless Families in a number equal to the number of rental 
vouchers and certificates provided under this subprogram for the area;
    (e) providing technical assistance to homeless provider 
organizations and others in understanding and utilizing this Section 8 
set-aside; and
    (f) maintaining records and providing information for evaluation 
purposes, as required by HUD.
(5) Homeless Provider Organization Responsibilities
    The homeless provider is responsible for identifying and referring 
eligible families that are immediately ready for permanent housing and 
for providing housing counseling and the family stabilization services. 
HUD does not define those services in this NOFA although the services 
should be adequate to meet the needs of the families during their 
search for permanent housing and the ensuing adjustment period after 
moving into permanent housing. These services may include move-in 
assistance, housing counseling, services to help the family adjust to 
new surroundings and connecting to community-based services and/or 
treatment, and any other services needed to allow the family to remain 
in permanent housing.

(C) Allocation Amounts for Homeless Families Subprogram

    The Department will make available approximately $411 million in 
budget authority to support an estimated 12,000 rental vouchers and 
certificates. The Department has decided to allocate the rental 
assistance budget authority for the Homeless Families subprogram to 
each jurisdiction that is eligible to receive an Emergency Shelter 
Grant (ESG) program allocation for FY 95. Attachment 4 to this NOFA 
lists the ESG jurisdictions and the allocation of budget authority for 
use in each jurisdiction based on the FY 95 ESG formula. The ESG 
formula was modified to ensure that 75 percent of the budget authority 
is allocated for use in ESG metropolitan cities and urban counties and 
25 percent of the budget authority is allocated for use by states in 
other jurisdictions not receiving a direct formula allocation under 
this NOFA.

(D) Application Submission Requirements for Homeless Families 
Subprogram

    The HA, in conjunction with the ESG jurisdiction, must submit the 
items identified in Section I(D) of the NOFA, Application Submission 
Requirements--General, and must include the descriptions required by 
this section and explained in further detail in the Application 
Selection section.
(1) Joint Application
    HUD will make a set-aside of rental assistance budget authority for 
Homeless Families only if there is a joint application by the housing 
agency (HA) and the ESG jurisdiction that describes the partnership 
among the HA, the ESG jurisdiction and homeless provider organizations 
and describes the community-wide process for involving homeless 
provider organizations in the program. The application must demonstrate 
evidence of an agreement between the ESG jurisdiction and the HA(s) 
spelling out the responsibilities of the respective parties to achieve 
the objective of this NOFA. Homeless provider organizations help the 
ESG jurisdiction identify and refer homeless families to the HA and 
provide needed housing counseling and supportive services. At the time 
of application, participating homeless provider organizations may be 
identified, but this is not required. Any HA that has the legal 
authority to operate a rental assistance program within the ESG 
jurisdiction may submit, in conjunction with the ESG jurisdiction, an 
application in order to receive the available rental vouchers or 
certificates.
(2) Application Content
    Each ESG jurisdiction must initiate, as a part of the application 
preparation, a community-wide process to involve homeless provider 
organizations in the development and implementation of the set-aside 
program. Each applicant must:
    (a) Describe the Community-wide Process.
    Describe the community-wide process used to involve homeless 
provider organizations in the planning and implementation of the rental 
assistance program. The application must also describe how 
participating homeless provider organizations, that will enter into 
agreements to provide services, have been or will be identified through 
a request for proposals process or other form of selection.
    (b) Identify Eligible Homeless Families.
    The method that will be used to identify and refer to the HA 
homeless [[Page 12057]] families currently living in emergency shelters 
or transitional housing within the ESG jurisdiction, who are 
``immediately ready for permanent housing'' as defined in this NOFA.
    (c) Section 8 Waiting List.
    The method that the homeless provider organizations and the HA will 
use to verify and ensure that each identified family meets the 
``immediately ready'' criteria and is either on the Section 8 waiting 
list or will be added to the waiting list.
    (d) Involvement of Homeless Provider Organizations.
    Describe the agreements with homeless provider organizations that 
will ensure each family receiving Section 8 rental assistance under 
this NOFA will receive the following:
    (i) Housing search assistance, assistance in securing housing, 
move-in assistance and housing counseling, as appropriate;
    (ii) Stabilization services for a minimum of six months to assist 
the family in adjusting to their new surroundings and connecting to 
community-based services and/or treatment, as appropriate; and
    (iii) Other community-based services and/or treatment as needed to 
allow the family to remain in permanent housing.
    (e) Project-Based Assistance. The method that will be used to 
determine what amount, if any, of the rental certificate funding is 
proposed to be used for project-based rental assistance for Single Room 
Occupancy (SRO) in accordance with 24 CFR part 882, subpart G, Project-
Based Certificate Assistance rules.
(3) Application Revisions After Submission to HUD
    HUD will provide the applicant an opportunity to revise its 
application after submission to HUD in response to specific written 
comments from HUD. The joint applicants will have a thirty calendar day 
period from the date of HUD's letter to satisfy all issues with HUD. 
Applicants will be allowed to respond to HUD comments more than once 
during the thirty day correction period so long as the negotiations are 
completed by the thirty calendar day deadline.

(E) Corrections to Deficient Applications for Homeless Families 
Subprogram

(1) Acceptable Applications
    See Section VIII.(D)(3) of this NOFA for the applicable provisions.
(2) Unacceptable Applications
    The 14 day technical correction period does not apply to this NOFA. 
See Section VIII.(D)(3) of this NOFA for the applicable provisions.

(F) Application Selection Process for Homeless Families Subprogram

    The funds available under this NOFA are being allocated on a 
formula basis as listed in Attachment 4 of the NOFA. Applications will 
be reviewed by the HUD Office to determine whether or not they are 
technically adequate and responsive to the application submission 
criteria based on the NOFA requirements. To expedite the review of 
applications and the award of funds under this subprogram, the HUD 
Office may initiate its review of any application received prior to the 
deadline established for submission.
    The Office of Public Housing in the HUD Office will initially 
screen all applications to determine if an application is complete, 
technically adequate and responsive to the general application 
selection requirements. The Community Planning and Development (CPD) 
Office will review the application to determine if an application is 
responsive to the application submission requirements including 
consistency with the locality's homeless assistance strategy, adequacy 
of community-wide process, and the procedures for assisting homeless 
families. If an application is found to be unresponsive, the HUD Office 
will notify the applicant of its finding and permit the applicant to 
revise the application as provided in Section VIII.(D)(3).
    The HUD Office of Public Housing will approve HA applications that 
are technically adequate and responsive. If any local HA and ESG 
jurisdiction does not submit a joint application by the due date 
specified in the NOFA, or if its application is disapproved, the 
allocation for that ESG jurisdiction will be reallocated to the State 
in which the jurisdiction is located. If a State does not apply by the 
due date, or if its application is disapproved, the allocation for that 
State will be reallocated to other States receiving allocations.

IX. Other Allocations

    In addition to the budget authority for ``fair share'' rental 
vouchers and rental certificates, additional budget authority 
(including carryover budget authority) is available for allocation in 
Fiscal Year 1995 for rental vouchers and rental certificates for the 
following purposes:

(A) Relocation, Demolition and Disposition and Replacement Housing 
(HOPE I, II, Section 5(h), Section 18, and HOPE VI and ``OPT-OUTS''

    Headquarters will assign funds directly to the HUD Offices to 
assist families living in public housing projects that are being 
demolished or disposed of with HUD approval; to provide replacement 
housing in connection with Section 18, HOPE VI, or Section 5(h) 
activities; or relocation assistance to families affected by HOPE I, 
HOPE II, and Section 5(h) activities; or assistance to non-purchasing 
families affected by HOPE II activities. Headquarters will also assign 
funds directly to HUD Offices to assist families living in a Section 8 
New Construction or Substantial Rehabilitation, or Loan Management Set-
Aside Projects, where the Section 8 Housing Assistance Payments 
Contract ends. HUD Office requests for funding under this category will 
be approved on a first-come, first-served basis. HUD Office requests 
should include all data pertinent to determining the eligibility of the 
request for funding under the appropriate program and the amount of 
funds required. Replacement housing assistance will be provided in the 
form of 5-year rental voucher or rental certificate funding. 
(Approximately 9,425 units and $323 million in budget authority.)

(B) Rental Voucher and Rental Certificate Renewals

    Headquarters will allocate funds directly to the HUD Offices for 
the renewal of rental voucher and rental certificate funding increments 
expiring in Fiscal Year 1995. Renewal funding will be provided in-kind 
(i.e., rental voucher funding for expiring rental voucher increments, 
and rental certificate funding for expiring rental certificate 
increments). (Approximately 126,000 units and $2.9 billion in budget 
authority.)

(C) Section 23 Conversions

    Headquarters will allocate rental certificate funds directly to the 
HUD Offices for tenant-based rental assistance to residents of Section 
23 leased housing for which leases are expiring. HUD Office requests 
for funding under this category will be approved on a first-come, 
first-served basis. HUD Offices must include all data necessary to 
determine the amount of funds required. (Approximately 320 units and 
$6.5 million in budget authority.) [[Page 12058]] 

(D) Section 8 Amendments

    Headquarters will allocate Rental Certificate Program cost 
amendments to provide budget authority increases to HA rental 
certificate programs. Headquarters will allocate the funds on an as 
needed basis. (Approximately $185 million in budget authority.)

(E) Housing Agency Portability Fees

    Headquarters will allocate these funds to pay special preliminary 
fees to HAs under Rental Voucher and Rental Certificate Program 
portability provisions. The Department issued a HUD Notice PIH 92-14 
(PHA), dated April 22, 1992, that describes administrative procedures 
for requesting the special preliminary fees. These funds will be 
allocated to the HAs on a first-come, first-served basis. 
(Approximately $9.5 million in budget authority.)

(F) Headquarters Reserve

    Headquarters will retain in the Headquarters Reserve sufficient 
funding to meet the requirements for the following purposes: (1) 
Natural disasters, (2) other housing emergencies, (3) litigation, and 
(4) desegregation of public housing. (Approximately 4,300 units and 
$151 million in budget authority.)

(G) Property Disposition

    Headquarters will assign funds directly to the HUD Offices to 
assist families living in a HUD-owned property when it is sold. HUD 
Office requests for funding under this category will be approved on a 
first-come, first-served basis. (Approximately 900 units and $30 
million in budget authority.)

(H) FY 94 NOFA for Homeless Persons With Disabilities

    HUD published a NOFA for a FY 94 Section 8 Rental Voucher Set-Aside 
for Homeless Persons with Disabilities on February 1, 1994. The 
February 1, 1994 NOFA is independent of any subprogram funding 
published in this NOFA. HUD expects to issue the funds shortly to the 
HUD State and Area Offices for reservation of those funds for the HAs 
selected under the February 1, 1994 NOFA.

(I) FY 94 NOFA for Homeless Veterans With Severe Psychiatric or 
Substance Abuse Disorders

    HUD published a NOFA for the FY 94 Section 8 Rental Voucher Set-
Aside for Homeless Veterans with Severe Psychiatric or Substance Abuse 
Disorders on July 14, 1994. The July 14, 1994 NOFA is independent of 
any subprogram funding published in this NOFA. HUD expects to issue the 
funds shortly to the HUD State and Area Offices for reservation of 
those funds for the HAs selected under the July 14, 1994 NOFA.

(J) FY 94 NOFA for Family Unification

    HUD published a NOFA for the FY 94 Family Unification Program on 
August 29, 1994. The August 29, 1994 NOFA is independent of any 
subprogram funding published in this NOFA. HUD expects to issue the 
funds shortly to the HUD State and Area Offices for reservation of 
those funds for the HAs selected under the August 29, 1994 NOFA.

(K) FY 94 NOFA for FSS Service Coordinators

    HUD published a NOFA for the Family Self-Sufficiency (FSS) Service 
Coordinators for the Section 8 Rental Certificate and Rental Voucher 
Programs on August 29, 1994. The August 29, 1994 NOFA is independent of 
any subprogram funding published in this NOFA. HUD expects to issue the 
funds shortly to the HUD State and Area Offices for reservation of 
those funds for the HAs selected under the August 29, 1994 NOFA.

X. Other Matters

(A) Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
for all funding available under this NOFA has been made in accordance 
with the Department's regulations at 24 CFR Part 50, which implement 
section 102(2)(C) of the National Environmental Policy Act of 1969 (42 
U.S.C. 4332). The Finding is available for public inspection between 
7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules Docket 
Clerk, Office of General Counsel, Department of Housing and Urban 
Development, room 10276, 451 Seventh Street, SW., Washington, DC 20410.

(B) Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this notice will not have substantial direct effects on 
states or their political subdivisions, or the relationship between the 
federal government and the states, or on the distribution of power and 
responsibilities among the various levels of government. As a result, 
the notice is not subject to review under the Order. This notice is a 
funding notice and does not substantially alter the established roles 
of the Department, the States, and local governments, including HAs.

(C) Impact on the Family

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

(D) Section 102 of the 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 
calendar days after the award of the assistance. Material will be made 
available in accordance with the Freedom of Information Act (5 U.S.C. 
552) and HUD's implementing regulations at 24 CFR part 15. In addition, 
HUD will include the recipients of assistance pursuant to this NOFA in 
its quarterly Federal Register notice of all recipients of HUD 
assistance awarded on a competitive basis. (See 24 CFR 12.14(a) and 
12.16(b), and the notice published in the Federal Register on January 
16, 1992 (57 FR 1942), for further information on these requirements.)

(E) Section 103 of the HUD Reform Act

    HUD's regulation implementing section 103 of the Department of 
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3537a) 
(Reform Act) is 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 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 [[Page 12059]] (202) 708-3815 (TDD/Voice). (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 HUD Office Counsel, or Headquarters counsel for the program 
to which the question pertains.

(F) Prohibition Against Lobbying Activities

    The use of funds awarded under this NOFA is subject to the 
disclosure requirements and prohibitions of section 319 of the 
Department of Interior and Related Agencies Appropriations Act for 
Fiscal Year 1990 (31 U.S.C. 1352) (the ``Byrd Amendment'') and the 
implementing regulations at 24 CFR part 87. These authorities prohibit 
recipients of Federal contracts, grants, or loans from using 
appropriated funds for lobbying the Executive or Legislative Branches 
of the Federal Government in connection with specific contract, grant, 
or loan. The prohibition also covers the awarding of contracts, grants, 
cooperative agreements, or loans unless the recipient has made an 
acceptable certification regarding lobbying. Under 24 CFR part 87, 
applicants, recipients, and subrecipients of assistance exceeding 
$100,000 must certify that no Federal funds have been or will be spent 
on lobbying activities in connection with the assistance. IHAs 
established by an Indian tribe as a result of the exercise of the 
tribe's sovereign power are excluded from coverage of the Byrd 
Amendment, but IHAs established under State law are not excluded from 
the statute's coverage.

(G) Section 112 of the HUD Reform Act

    Section 112 of the HUD Reform Act added a new section 13 to the 
Department of Housing and Urban Development Act (42 U.S.C. 3537b). 
Section 13 contains two provisions dealing with efforts to influence 
HUD's decisions with respect to financial assistance. The first imposes 
disclosure requirements on those who are typically involved in these 
efforts--those who pay others to influence the award of assistance or 
the taking of a management action by the Department and those who are 
paid to provide the influence. The second restricts the payment of fees 
to those who are paid to influence the award of HUD assistance, if the 
fees are tied to the number of housing units received or are based on 
the amount of assistance received, or if they are contingent upon the 
receipt of assistance.
    Section 13 was implemented by final rule published in the Federal 
Register on May 17, 1991 (56 FR 22912). 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 about the rule should be forwarded to the 
Director, Office of Ethics, room 2158, Department of Housing and Urban 
Development, 451 Seventh Street, S.W., Washington, D.C. 20410-3000. 
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.

    Dated: February 6, 1995.
Michael B. Janis,
General Deputy Assistant Secretary for Public and Indian Housing.

                                                 BILLING CODE 4210-33-P
[[Page 12060]]

[GRAPHIC][TIFF OMITTED]TN03MR95.000


[[Page 12061]]

[GRAPHIC][TIFF OMITTED]TN03MR95.001


[[Page 12062]]

[GRAPHIC][TIFF OMITTED]TN03MR95.002


[[Page 12063]]

[GRAPHIC][TIFF OMITTED]TN03MR95.003


[[Page 12064]]

[GRAPHIC][TIFF OMITTED]TN03MR95.004


[[Page 12065]]

[GRAPHIC][TIFF OMITTED]TN03MR95.005


[[Page 12066]]

[GRAPHIC][TIFF OMITTED]TN03MR95.006


[[Page 12067]]

[GRAPHIC][TIFF OMITTED]TN03MR95.007


[[Page 12068]]

[GRAPHIC][TIFF OMITTED]TN03MR95.008


[[Page 12069]]

[GRAPHIC][TIFF OMITTED]TN03MR95.009


[[Page 12070]]

[GRAPHIC][TIFF OMITTED]TN03MR95.010


[[Page 12071]]

[GRAPHIC][TIFF OMITTED]TN03MR95.011


[[Page 12072]]

[GRAPHIC][TIFF OMITTED]TN03MR95.012


[[Page 12073]]

[GRAPHIC][TIFF OMITTED]TN03MR95.013


[[Page 12074]]

[GRAPHIC][TIFF OMITTED]TN03MR95.014


[[Page 12075]]

[GRAPHIC][TIFF OMITTED]TN03MR95.015


[[Page 12076]]

[GRAPHIC][TIFF OMITTED]TN03MR95.016


[[Page 12077]]

[GRAPHIC][TIFF OMITTED]TN03MR95.017


[[Page 12078]]

[GRAPHIC][TIFF OMITTED]TN03MR95.018


[[Page 12079]]

[GRAPHIC][TIFF OMITTED]TN03MR95.019


[[Page 12080]]

[GRAPHIC][TIFF OMITTED]TN03MR95.020


[[Page 12081]]

[GRAPHIC][TIFF OMITTED]TN03MR95.021


[[Page 12082]]

[GRAPHIC][TIFF OMITTED]TN03MR95.022


[[Page 12083]]

[GRAPHIC][TIFF OMITTED]TN03MR95.023


[[Page 12084]]

[GRAPHIC][TIFF OMITTED]TN03MR95.024


[[Page 12085]]

[GRAPHIC][TIFF OMITTED]TN03MR95.025


[[Page 12086]]

[GRAPHIC][TIFF OMITTED]TN03MR95.026


[[Page 12087]]

[GRAPHIC][TIFF OMITTED]TN03MR95.027


[[Page 12088]]

[GRAPHIC][TIFF OMITTED]TN03MR95.028


[[Page 12089]]

[GRAPHIC][TIFF OMITTED]TN03MR95.029


[[Page 12090]]

[GRAPHIC][TIFF OMITTED]TN03MR95.030


[[Page 12091]]

[GRAPHIC][TIFF OMITTED]TN03MR95.031


[[Page 12092]]

[GRAPHIC][TIFF OMITTED]TN03MR95.032


[[Page 12093]]

[GRAPHIC][TIFF OMITTED]TN03MR95.033



[FR Doc. 95-5184 Filed 2-28-95; 8:45 am]
BILLING CODE 4210-33-C