[Federal Register Volume 61, Number 60 (Wednesday, March 27, 1996)]
[Notices]
[Pages 13574-13583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7281]




[[Page 13573]]

_______________________________________________________________________

Part II





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Public and Indian Housing



_______________________________________________________________________



Notice of Funding Availability (NOFA) for Indian Applicants under the 
HOME Program, Fiscal Year 1996; Notice

Federal Register / Vol. 61, No. 60 / Wednesday, March 27, 1996 / 
Notices

[[Page 13574]]


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing
[Docket No. FR-3999-N-01]


Notice of Funding Availability (NOFA) for Fiscal Year 1996 for 
Indian Applicants Under the HOME Program

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

ACTION: Notice of funding availability (NOFA) for fiscal year 1996 for 
Indian applicants for HOME Investment Partnerships Act (the HOME Act) 
programs, referred to as the HOME program.

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

SUMMARY: This NOFA announces the availability of up to $14,000,000 in 
funding for Fiscal Year (FY) 1996 for the HOME Program for Indian 
tribes; provides the selection criteria; provides information on how to 
apply; and explains how selections will be made. All eligible 
applicants are invited to submit applications for HOME funds in 
accordance with the requirements of this NOFA. NOTE: The Congress has 
not yet enacted a FY 1996 appropriation for HUD. However, HUD is 
publishing this notice in order to give potential applicants adequate 
time to prepare applications. The estimate of the amount of funds 
available for this program is based on the level of funding available 
for FY 1995. HUD is not bound by the estimate set forth in this notice.

DATES: Application Due Date: May 28, 1996. Applications must be 
RECEIVED by the Area Office of Native American Programs (Area ONAP) 
having jurisdiction over the applicant on or before 3:00 p.m. (Area 
ONAP local time) on May 28, 1996. This application deadline is firm as 
to date and hour. The Department shall treat as ineligible for 
consideration any application that is received after the deadline. 
Applicants should make early submission of their materials to avoid any 
risk of loss of eligibility brought about by unanticipated delays or 
other delivery-related problems. Facsimile (``FAX'') copies shall not 
be accepted.

FOR FURTHER INFORMATION CONTACT: Prospective applicants may contact the 
appropriate Area ONAP. Refer to Appendix 1 of this NOFA for a complete 
list of Area ONAPs and telephone numbers.
SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3520), the information collection requirements contained in these 
application procedures for HOME funds were reviewed by the Office of 
Management and Budget and approved under OMB control number 2577-0191.

Changes from Last Year's NOFA

    1. COMPETITIVE AREA. This year HOME funds will be allocated to each 
Area ONAP pursuant to the formula in the Program Regulation (24 CFR 
92.601). Applicants in each Area ONAP jurisdiction will only compete 
with each other for the HOME funds allocated to the Area ONAP.
    The applicant need submit only the original and 1 copy of the 
application to its Area ONAP.
    2. MULTIPLE PROJECTS. An applicant may apply for grant assistance 
for more than one project. If so, each project is limited to no more 
than one category (i.e., acquisition, rehabilitation, new construction) 
and stands on its own. The total grant amount requested by the 
applicant may not exceed the maximum allowed. Each project will be 
rated independently and ranked independently. For each project grant 
request, where appropriate and to assure maximum point award, 
applicants must provide individual responses to application information 
requirements.
    3. LIMIT ON GRANTS THAT ARE NOT CLOSED OUT. An applicant may not 
have more than two HOME grants at a time. An application from an 
applicant with more than two HOME grants that are not closed out will 
be set aside and not rated.
    4. LEVERAGE DEFINITION. This year the NOFA clarifies some elements 
of scoring for different kinds of financial assistance in order to 
receive leverage points. To be considered for leverage points, the 
financial assistance proposed by the applicant must come in, i.e., be 
in the possession of or legally obligated to the applicant, within 90 
calendar days after award notification.
    HUD is, again this year, requesting that the data and explanation 
provided by the applicant to address the selection criteria be limited 
to 200 words per component.

I. Purpose and Substantive Description

(a) Authority
    The HOME Investment Partnerships Act (the HOME Act) (title II of 
the Cranston-Gonzalez National Affordable Housing Act) was signed into 
law on November 28, 1990 (Pub. L. 101-625), and created the HOME 
Investment Partnerships (or HOME) Program that provides funds to Indian 
tribes to expand the supply of affordable housing for very low-income 
and low-income persons. Interim regulations for the HOME Investment 
Partnerships Program are codified at 24 CFR part 92. The requirements 
of 24 CFR part 92, subpart A and subpart M (Secs. 92.600-92.652), apply 
specifically to the Indian HOME program.
    The HOME Act was amended by the Housing and Community Development 
Act of 1992 (HCDA 1992) (Pub. L. 102-550, approved October 28, 1992) 
and the Multifamily Housing Property Disposition Reform Act of 1994 
(MHPDRA) (Pub. L. 102-233, approved April 11, 1994).

    Note: The Congress has not yet enacted a FY 1996 appropriation 
for HUD. However, HUD is publishing this notice in order to give 
potential applicants adequate time to prepare applications. The 
estimate of the amount of funds available for this program is based 
on the level of funding available for FY 1995. HUD is not bound by 
the estimate set forth in this notice.
(b) Allocation Amounts
    (1) Fiscal Year 1996 Funding. In accordance with section 217(a)(2) 
of the HOME Act, each Fiscal Year (FY) HUD shall provide funds to 
Indian tribes, totaling one percent (or such other percentage or amount 
as authorized by Congress) of the amount appropriated for the HOME 
program to expand the supply of affordable housing. For the fiscal year 
ending September 30, 1995, the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act of 1995 (approved September 28, 1994, Pub. L. 103-327), 
appropriated a total of $1.4 billion for the HOME program. Together 
with $42,000 available from the 1994 Appropriations Act, the amount of 
funding available for the HOME Indian program for Fiscal Year 1995 was 
up to $14,042,000.
    HOME funds will be allocated to the Area ONAPs as follows:

1. Eastern/Woodlands ONAP.................................    $1,086,250
2. Southern Plains ONAP...................................     2,626,250
3. Northern Plains ONAP...................................     2,208,750
4. Southwest ONAP.........................................     6,096,250
5. Northwest ONAP.........................................       818,750
6. Alaska ONAP............................................     1,163,750
                                                           -------------
    Total.................................................   $14,000,000
                                                                        

    (2) Project Grant Amount. The maximum grant amount per applicant is 
$1.5 million. Grants may be funded at less than applied for levels. In 
determining appropriate grant amounts to be awarded, the Area ONAP may 
take into account the level of demand, the scale of the activity 
proposed relative to need, the number of persons to be served, and the 
amount of funds required to achieve project objectives.

[[Page 13575]]

    (3) If the Department does not award the entire $14,000,000 in this 
funding round because there is not a sufficient number of eligible 
applications, the amount not awarded shall be awarded at another time.
    (4) If an insufficient number of fundable applications is received 
in any one Area ONAP, any surplus funds may be assigned to other Area 
ONAPs which have unfunded fundable applications.
(c) Eligibility
    (1) Eligible Applicants. (i) Eligible applicants for HOME funds for 
Indian tribes are any Indian Tribe, band, group, or nation, including 
Alaskan Indians, Aleuts, and Eskimos, and any Alaskan native village of 
the United States which is considered an eligible recipient under Title 
I of the Indian Self-Determination and Education Assistance Act (25 
U.S.C. 450) or which had been an eligible recipient under the State and 
Local Fiscal Assistance Act of 1972 (31 U.S.C. 1221). Eligible 
recipients under the Indian Self-Determination and Education Assistance 
Act will be determined by the Bureau of Indian Affairs and eligible 
recipients under the State and Local Fiscal Assistance Act of 1972 are 
those that have been determined eligible by the Department of Treasury, 
Office of Revenue Sharing.
    (ii) Tribal organizations which are eligible under Title I of the 
Indian Self-Determination and Education Assistance Act may apply for 
funds under this NOFA on behalf of any Indian Tribe, band, group, 
nation, or Alaskan native village eligible under that Act when one or 
more of these entities have authorized the Tribal organization to do so 
through concurring resolutions. Such resolutions must accompany the 
application for funding. Eligible Tribal organizations under Title I of 
the Indian Self-Determination and Education Assistance Act will be 
determined by the Bureau of Indian Affairs.
    (iii) Only eligible applicants shall receive grants. However, 
eligible applicants may contract or otherwise agree with non-eligible 
entities such as States, cities, counties, or other organizations to 
assist in the preparation of applications and to help implement 
assisted activities.
    (iv) To apply for funding in a given fiscal year, an applicant must 
be eligible as an Indian Tribe or Alaskan native village, as provided 
in paragraph (i) of this section, or as a Tribal organization, as 
provided in paragraph (ii) of this section, by the application 
submission date.
    (v) Applicants must have the administrative capacity to undertake 
the project proposed, including systems of internal control necessary 
to administer these projects effectively.
    (2) Eligible Projects.
    (i) Size and Location of a Project. A ``project'' may be located on 
one or more sites. The applicant must identify the scale and location 
of a project and show that the project is within the operating area of 
the applicant. A project may be as small as one site or as large as the 
operating area of the tribe. (NOTE: For purposes of the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970, as amended (URA), the term ``project'' means one or more 
activities paid for in whole or in part with HUD financial assistance. 
Two or more activities that are integrally related, each essential to 
the other, are considered one project.)
    (ii) Categories of Eligible Projects. In accordance with 24 CFR 
92.604, projects that may be funded under the HOME Indian program 
include: (A) housing rehabilitation (moderate and substantial), (B) 
acquisition of housing, and (C) new housing construction. These project 
types may also include site improvements and relocation. A project may 
be for rental or homeownership.
    (A) A rehabilitation project consists of only rehabilitation, or 
includes acquisition of units with rehabilitation.
    (B) An acquisition project consists of the acquisition of standard 
units not requiring rehabilitation.
    (C) A new construction project consists of new construction of 
housing and may include acquisition and demolition.
    (3) Eligible Activities. Eligible activities, in accordance with 24 
CFR 92.611, are as follows:
    (i) HOME funds may be used by an Indian tribe to provide incentives 
to develop and support affordable rental housing and homeownership 
affordability through the acquisition (including assistance to 
homebuyers), new construction, reconstruction, or moderate or 
substantial rehabilitation of nonluxury housing with suitable 
amenities, including real property acquisition, site improvements, 
conversion, demolition, and other expenses, including financing costs, 
relocation expenses of any displaced persons, families, businesses, or 
organizations; and to pay administrative costs. The specific eligible 
costs for these activities are set forth in Sec. 92.612.
    (ii) Acquisition of vacant land or demolition must be undertaken 
only with respect to a particular housing project intended to provide 
affordable housing, and for which funds for construction have been 
committed.
    (iii) Housing that has received an initial certificate of occupancy 
or equivalent document within a one-year period before an Indian tribe 
commits HOME funds to the project is new construction for purposes of 
this part.
    (iv) Conversion of an existing structure to affordable housing is 
rehabilitation, unless the conversion entails adding a unit beyond the 
existing walls, in which case, the project is new construction for 
purposes of this part.
    (v) Site improvements must be in keeping with improvements of 
surrounding, standard projects. Site improvements include roads, 
streets, sidewalks, curbs, gutters, and connections to utilities, such 
as storm and sanitary sewers, water supply, gas, and electricity. The 
``site'' of the improvements may include property adjacent or near the 
immediate site of the housing if this property and the housing are 
owned by the same entity (e.g., the housing is owned--at least until 
sold to homebuyers--by the tribe and the housing and the improvements 
are located on a reservation). If the site improvements will benefit 
housing (existing or future) in addition to housing assisted with FY 
1995 HOME Indian Program grant funds, only a pro-rated share of the 
site improvements may be charged to the HOME grant.
(d) Selection Criteria and Rating Factors
    Each project submitted for grant funding shall be evaluated using 
the three criteria provided in 24 CFR 92.604, as more fully explained 
in sections I.(e)(1), (2), and (3) of this NOFA, below. See Figure 1. 
For an application to be considered for rating, ranking, and funding, 
all eligibility requirements must be addressed. After rating, the 
project must receive at least 50 points to be considered for funding. 
The complete rating and ranking process is described in detail at 
section I.(e)(5).
    All the potential points which can be earned are summarized as 
follows:

Need and Design................................................      30 
  Need.........................................................     (15)
    Need/Quantity/Documentation................................       4 
    Need/Quantity/Demographics.................................       3 
    Responsiveness.............................................       3 
    Benefits...................................................       5 
  Project Feasibility..........................................     (15)
Planning and Implementation....................................      40 
Financial......................................................     (15)
    Property/Cost/Ability to Pay...............................       6 
    Cashflow thru Completion...................................       3 
    Feasibility thru Affordability Period......................       3 
    Cost Effectiveness Test....................................       3 
  Legal and Administrative.....................................     (10)
  Staffing Plan during Implementation..........................     (15)

[[Page 13576]]
                                                                        
Leveraging.....................................................      30 
                                                                        



    HUD urges each applicant to screen its application using the 
Checklist of Eligibility Requirements and Application Submission 
Requirements to ensure that the application meets each requirement.
    In responding to each of the components which address the selection 
criteria, HUD requests that each applicant:

--Use separate tabs for each selection criterion and sub-criterion. In 
order to be rated, make sure the response is beneath the appropriate 
heading.
--Keep its responses in the same order as the NOFA.
--Provide the necessary data and the explanation, not exceeding 200 
words, that supports the response. Include all relevant material to a 
response under the same tab. Do not assume the reviewer will search for 
the answer or information to support the answer elsewhere in the 
application.
--Do a preliminary rating for its own project, providing a score 
according to the scoring guide. This will help to show the applicant 
how its project might be scored by the reviewers. It will also help to 
show the applicant whether the application meets the eligibility 
requirements and the minimum point score requirement (50 points), and 
where the strengths and weaknesses of the application are located. 
Then, the applicant can strengthen the weaker parts of the application 
and retain the stronger parts.

    The HOME program is for low-income and very low-income persons. In 
the application, applicants must provide information on the median 
income for the community in which the proposed project is located. The 
low-income and very low-income levels for each applicant community are 
available from the Area ONAPs.

                 Figure 1.--Indian Home Program Scoring                 
------------------------------------------------------------------------
                                                                 Maximum
                      Selection criteria                         points 
------------------------------------------------------------------------
Need and Design...............................................        30
Planning and Implementation...................................        40
Leveraging....................................................        30
------------------------------------------------------------------------

    (1) NEED AND DESIGN--30 points maximum.
    The first of the three criteria provided in 24 CFR 92.604 addresses 
the degree to which the application: (1) identifies the housing needs 
of the tribe, (2) describes the demographic characteristics of needy 
very low and low-income families, (3) describes the characteristics of 
the homes to be provided, (4) is from an applicant with a high ratio of 
unmet need to total need, and (5) proposes homes which meet the 
requirements of the needy. This first criterion is divided into two 
parts that will be examined and evaluated separately. These parts are: 
(i) Need and (ii) Project Feasibility.
    (i) Need--15 points maximum. The degree to which the proposed 
project addresses the housing need(s) of the tribe as identified in the 
documentation for the project. Tribal need must be documented. This 
documentation should include current IHA waiting lists, data on the 
degree of overcrowding, percentage of population in need of housing 
based upon census data, etc. Waiting lists from the IHA must identify 
whether the list is for rental housing or ownership housing, e.g., 
mutual help. An IHA waiting list for ownership housing is especially 
important if the proposed project contemplates the sale of units, e.g., 
new construction.
    (A) Housing Need Expressed in Terms of Quantity (4 points maximum). 
The tribe shall express its housing needs within its reservation, 
service area, or area of operation by:

--The number of affordable units, as documented by the applicant;
--The size (number of bedrooms) of the needy households as documented 
by the applicant;
--The type of assistance needed, e.g., rehabilitation vs. new 
construction, as documented by the applicant; and
--The tenure type of the housing needed, i.e., homeownership or rental, 
as documented by the applicant.

    Documentation that contains a recent formal survey prepared by a 
tribe, a State, the Federal Government or a commission authorized by a 
tribe, a State, or the Federal Government, or a recent formal survey 
authorized by a tribe, State, the Federal Government or a tribe 
authorized commission and actually performed by a third party, such as 
a consultant or university, shall receive four points. Documentation 
supporting housing need other than a formal survey shall receive 0 or 2 
points depending upon the quality of the documentation presented. See 
Table 1.

                          Table 1.--Scoring Guide                       
------------------------------------------------------------------------
          Quantity of Housing Need--Quality of Documentation--          
-------------------------------------------------------------------------
              Good                        Fair           Unsatisfactory 
------------------------------------------------------------------------
4 points........................  2 points...........  0 points.        
------------------------------------------------------------------------

    (B) Demographic Information Regarding Indian Households in Need of 
Affordable Housing (3 points maximum). The demographic characteristics 
of low-income and very low-income Indian households that are in need of 
the housing identified in (A), above, shall quantify the number of 
Indian households and number of family members in the household, their 
age, and gender, as well as the number of households for which an 
accessible unit is needed. An application which contains this data 
shall receive 3 points. A current IHA waiting list may be used to 
supply this data. Waiting lists must identify whether the list is for 
rental housing or ownership housing, i.e., mutual help. A waiting list 
for ownership housing is especially important if the proposed project 
contemplates the sale of units, e.g., new construction.
    Partial supporting documentation shall receive 2 points. If the 
documentation is unclear or missing entirely, 0 points. See Table 2.

                         Table 2.--Scoring Guide                        
------------------------------------------------------------------------
         Quantity of housing need--Demographic characteristics--        
-------------------------------------------------------------------------
                                                 Partial      Unclear or
      Complete or with correct IHA list       documentation    missing  
------------------------------------------------------------------------
3 points....................................      2 points      0 points
------------------------------------------------------------------------

    (C) Proposed Supply by Quantity, Size, Tenure, and Type (3 points 
maximum). Documentation in the application must identify the housing to 
be supplied by the proposed project. Supply must be described by the 
following characteristics:

--The number of affordable units to be provided;
--The size (number of bedrooms) of the units to be provided;
--The type of assistance to be provided, e.g., rehabilitation vs. new 
construction; and
--The tenure type of the housing to be provided, i.e., homeownership or 
rental.

    An application that provides this information shall receive 3 
points. An application that does not respond to all these requirements 
shall receive 2 or 0 points depending upon its

[[Page 13577]]
responsiveness to this factor. See Table 3.

                         Table 3.--Scoring Guide                        
------------------------------------------------------------------------
                Responsiverness to Housing Supply Factors               
-------------------------------------------------------------------------
         Very responsive           Fairly responsive     Not responsive 
------------------------------------------------------------------------
3 points........................  2 points...........  0 points         
------------------------------------------------------------------------

    (D) Benefits to Very Low-Income and Low-Income Families of the 
Tribe (5 points maximum). Under this factor, the applicant with the 
larger ratio of unmet low-income and very low-income need for 
affordable housing receives more points. The ratio consists of a 
numerator, which is the number of very low-income and low-income 
families of the tribe in need of affordable housing divided by a 
denominator, which is the total number of very low-income and low-
income families of the tribe. The result is multiplied by 5 to 
determine the number of points received under this criterion. The 
number of points should be rounded to 2 decimal places.
    In the response to this criterion, the applicant may use data for 
``members'' or ``families,'' whichever one is available. Whichever one 
is chosen, it must be used in both the numerator and the denominator of 
the ratio. If data is chosen for ``families,'' ``families'' must be 
used in both the numerator and denominator. The applicant must provide 
the source for the data. Failure to identify the source of the data 
will result in the loss of one point. See Table 4.
    The total of all the low-income and very low-income families with 
unmet housing needs is the number that is considered for the numerator 
in the formula used in this criterion, regardless of the particular 
activity for which funding is sought in the application. The 
denominator is the total number of low-income and very low-income 
families of the tribe. For example, say:

--the total number of low-income and very low-income families of the 
tribe is 1,000,
--the applicant is applying for funds to rehabilitate 10 units, and
--there are 100 low-income and very low-income families in need of 
rehabilitated units,
--but the total number of low-income and very low-income families with 
housing needs of all types (rental, new construction, and 
rehabilitation) is 500.

    Then, the number that would be used in the formula as the numerator 
is 500; the denominator is 1,000. If the project is mixed, that fact is 
of no consequence in using the formula. A mixed project may be mixed as 
to tenure of the families to be assisted, i.e., rental or home 
ownership, but it may not be mixed as to type of project activity, 
i.e., a combination of acquisition, rehabilitation, new construction.
    For example, a tribe has 20 low-income and very low-income families 
in need of affordable housing and a total of 100 low-income and very 
low-income families. No source for the data is identified. Substitute 
these values in the formula:

5  x  (20/100) =
5  x  0.20 =
1.00 point.

    The formula results in a preliminary score of 1.00 point. Then, 
deduct one point because the source for the data is not given and the 
final point score for this item becomes zero.

                         Table 4.--Scoring Guide                        
------------------------------------------------------------------------
           Benefits to very low-income and low-income families          
-------------------------------------------------------------------------
5 x (low-income and very low-income families in need of affordable      
 housing/total of low-income and very low-income families). Round to 2  
 decimal places. Deduct 1 point if source of data is not provided.      
------------------------------------------------------------------------

    (ii) Project feasibility. Match Between Demand and Supply by 
Characteristics.--15 points maximum. Project feasibility as measured 
here is the degree to which the characteristics of housing units in the 
proposed project are responsive to need of actual low-income and very 
low-income families for affordable housing that was identified in the 
previous evaluation factor. A project which provides a number of units 
with the appropriate characteristics less than or equal to the 
identified need will receive more points. A project which provides a 
number of units with the appropriate characteristics greater than the 
demand will receive less points. Thus, there is a penalty if supply is 
greater than demand. To evaluate the degree to which the proposed 
project addresses the housing needs of the tribe as identified in the 
application, points will be awarded based upon:
    (A) The relationship between the number of affordable units to be 
provided as compared to the number needed, as documented by the 
applicant;
    (B) The size (number of bedrooms) of the units to be provided 
relative to sizes of needy households as documented by the applicant;
    (C) The type of assistance to be provided, e.g., rehabilitation vs. 
new construction, compared with the type of assistance necessary, as 
documented by the applicant; and
    (D) The tenure type of the housing to be provided, i.e., 
homeownership or rental, compared with the type of assistance required, 
desired, or necessary as documented by the applicant, and;
    (E) The project plan must indicate a schedule for the 
implementation of the expanded housing opportunities.
    The documentation for a project shall receive 15 points if it: (1) 
shows that the quantity of housing units to be made available for very 
low-income and low-income families of the tribe is equal to or less 
than the demand, (2) shows that the sizes of the units to be made 
available meet but do not exceed the needs of the very low-income and 
low-income families, (3) shows that the type of assistance 
(rehabilitation, new construction) to be provided meets the type of 
assistance needed, (4) shows that the tenure type (ownership, rental) 
to be provided is the tenure type needed, and (5) describes the 
delivery schedule. The documentation for a project shall receive 8 
points if it does not clearly respond to all five items. The 
documentation for a project shall receive 0 points if it does not 
clearly respond to four of the five items. See Table 5.

                         Table 5.--Scoring Guide                        
------------------------------------------------------------------------
           Match between proposed supply and documented demand          
-------------------------------------------------------------------------
              Good                        Fair           Unsatisfactory 
------------------------------------------------------------------------
15 points.......................  8 points...........  0 points.        
------------------------------------------------------------------------

    (2) PLANNING AND IMPLEMENTATION--40 points maximum.
    The second of the three criteria provided in 24 CFR 92.604 is: The 
degree to which the financial, legal, and administrative actions 
necessary to undertake the proposed project have been considered and 
addressed in the documentation for the project, and the degree to which 
the applicant has the administrative staff to carry out the project 
successfully. Applicants must be concrete and specific in describing 
the financial, administrative, and legal actions involved in carrying 
out the project, and must describe their own administrative capability, 
existing or planned, to carry out this project. The applicant must 
demonstrate, using complete cost and revenue estimates for the project, 
including loans if necessary, that the proposed project is financially 
feasible and meets the regulatory

[[Page 13578]]
affordability requirements. This second criterion is divided into three 
parts that will be examined and evaluated separately. These three parts 
are: (i) Financial; (ii) Legal and Administrative Actions; and (iii) 
Staffing Plan during Implementation.
    (i) Financial--15 points maximum.
    (A) Property identification and comparison of project cost and 
ability of needy family to pay (6 points maximum). The applicant must 
demonstrate that the proposed very low- and low-income families who 
will be the owners or tenants shall be able to afford to buy or rent 
this housing in accordance with the affordability requirements under 24 
CFR 92.614: ``qualification as affordable housing and income targeting: 
rental housing,'' and 24 CFR 92.615: ``qualification as affordable 
housing: home ownership.'' This evaluation is to include the results of 
market surveys for acquisition, rehabilitation, or new construction of 
housing and/or the identification of the actual properties to be 
acquired, rehabilitated, or constructed.
    In addition to information concerning the supply of homes, the 
applicant must provide information to support the demand for homes. 
This market information must indicate that there is a demand for the 
type of tenure being proposed for the home at the price being proposed. 
If the project is for homeownership, what evidence is there that there 
is sufficient demand of interested and eligible applicants? Have 
applicants been identified? Selected? If the proposed applicants are 
renting, is there evidence they want to buy? Is there evidence they can 
afford to buy? As an indication of credit worthiness, have applicants 
been pre-qualified for a loan?
    For all types of projects, but especially for an owner-occupied 
rehabilitation project, include a discussion of funding for routine 
maintenance and property taxes, which may increase due to an increase 
in the unit value, and energy conservation. Since the units to be 
rehabilitated with the HOME grant became substandard because they were 
not maintained, include a discussion of provisions to pay for training 
and education, and for major repair and replacement as a result of 
damage or loss through wear and tear. For example: After the unit is 
rehabilitated with this HOME grant, how will it be maintained? Are 
funds being set aside to maintain the unit? Whose funds are they--the 
owner's, tenant's, owner/occupant's? Is there a plan included in the 
application to address this? Will the applicant provide for energy 
efficient construction/rehabilitation which goes beyond regulatory 
requirements so as to minimize occupant expenditure for utilities? Will 
the applicant employ construction/rehabilitation techniques/materials 
which will help minimize the upkeep and maintenance costs to the 
occupant/owner? For scoring, see Table 6. Points will be awarded based 
upon the completeness and adequacy of responding to pertinent 
questions.

                         Table 6.--Scoring Guide                        
------------------------------------------------------------------------
           Property identification and cost vs. ability to pay          
-------------------------------------------------------------------------
              Good                        Fair           Unsatisfactory 
------------------------------------------------------------------------
6 points........................  3 points...........  0 points.        
------------------------------------------------------------------------

    (B) Cash flow projection through project completion (3 points 
maximum). This requirement deals with the year by year cash flow for 
the proposed project. For example, for a new construction project by 
the applicant of a single family detached unit that is to be sold to a 
low income family that will occupy the unit, the cash flow projection 
would show the cost of construction, the construction payments, any 
equity or debt using HOME or non-HOME funds, any downpayment and any 
mortgage loan made in the sale of the unit to the family, and the 
monthly mortgage payment and the source of funds to make those 
payments.
    The applicant must provide a year-by-year cash flow projection 
which includes an estimate of all project costs and revenues. The 
project must be financially feasible from the start. The costs and the 
revenues must be realistic. The housing opportunities must be 
achievable for the amounts shown. The costs must not be unrealistically 
low, showing more product for less money.
    There must be a projection of costs and revenues for the time the 
work is being carried out as well as the time of maintenance and 
repair. The costs and revenues projection identifies what the 
maintenance and repair and major replacement costs for the long term 
(i.e., not less than the minimum period of affordability, 24 CFR 
92.614) are going to be and how they will be paid. The projection must 
identify what the costs and revenues are. If the source of revenue is a 
grant, the grant must be identified. The costs and revenues and the 
cash flow must cover the construction period and the marketing period 
(if there will be a marketing period); the period of maintenance and 
repair must be projected separately. The applicant must identify 
whether there is a need for short-term borrowing for rehabilitation or 
whether rehabilitation is paid for entirely from HOME and leveraged 
funds; any years of negative cash flow; and the cumulative negative 
cash flow. If the project requires financing, i.e., borrowing, to get 
through periods of negative cash flow, the applicant must show the 
financing in the cash flow projection. For scoring, see Table 7. Points 
will be awarded based on completeness in adequately addressing the 
pertinent questions.

                         Table 7.--Scoring Guide                        
------------------------------------------------------------------------
             Cash flow projection through project completion            
-------------------------------------------------------------------------
              Good                        Fair           Unsatisfactory 
------------------------------------------------------------------------
3 points........................  2 points...........  0 points.        
------------------------------------------------------------------------

    (C) Financial feasibility during the affordability period (3 points 
maximum). This requirement deals with the financial feasibility of the 
housing during the affordability period beginning after project 
completion, i.e., after completion of the acquisition, rehabilitation, 
or new construction. The affordability period can be from 5 years to 20 
years (24 CFR 92.614). The housing has costs and revenues throughout 
the affordability period. Identify all of the costs and revenues, year 
by year, and display them to ensure that all of the costs shall be paid 
by revenues reasonably anticipated to occur.
    The housing must be financially feasible for the affordability 
period, while at the same time remaining affordable as prescribed by 
the requirements at 24 CFR 92.614 and 92.615. Arrangements to be made 
for long-term costs must be shown. If during this period developer 
borrowing is required to get through periods of cumulative negative 
cash flow, the applicant must show the borrowing. The applicant must 
show buyer mortgage payments, if any.
    As costs occur for the units that are occupied (e.g., owner-
occupied rehabilitation, or new construction of rental housing), the 
application must discuss who will pay those costs and how they will be 
paid; whether any borrowing will be involved; whether the owner is 
expected to make the payments and when the payments will occur. The 
costs and revenues for maintenance, repair, and major replacements must 
be included in the affordability period cash flow projection. For a 
rental project, the projection must include how the project management 
staffing costs described in the staffing plan will be paid. For 
scoring, see Table 8. Points will be

[[Page 13579]]
awarded for completeness in addressing the pertinent questions.

                         Table 8--Scoring Guide                         
------------------------------------------------------------------------
          Financial feasibility during the affordability period         
-------------------------------------------------------------------------
              Good                        Fair           Unsatisfactory 
------------------------------------------------------------------------
3 points........................  2 points...........  0 points.        
------------------------------------------------------------------------

    (D) Cost effectiveness test (3 points maximum). The cost 
effectiveness test is related to leverage because the more non-HOME 
grant money brought to the project, the lower the amount of HOME grant 
money needed. The cost effectiveness test gives more points to projects 
that use less HOME funds. The cost effectiveness test also rewards 
projects which use HOME funds most efficiently. To score a project in 
the cost effectiveness test, a maximum allowable expenditure of HOME 
funds is identified for each project type with respect to the total 
development cost (TDC).
    (1) Housing Rehabilitation. For rehabilitation projects, the 
maximum allowable expenditure of HOME funds shall be no more than 62.5% 
of the cost of new construction (i.e., no more than 62.5% of the TDC) 
for substantial rehabilitation (``substantial'' means an expenditure of 
$25,000 or more per home) and no more than 50% of the TDC of new 
construction for moderate rehabilitation. If the HOME assistance is 
less than 20% of the maximum allowable expenditure of HOME funds, the 
project receives 3 points; for 20% to 60%, 2 points; for 61% to 99%, 1 
point. If it is 100% of the maximum allowable, the project receives 0 
points. See Table 9.
    (2) Acquisition. For acquisition projects, the maximum allowable 
expenditure of HOME funds shall be no more than 62.5% of the cost of 
new construction (i.e., no more than 62.5% of the TDC) if the property 
has been substantially rehabilitated and no more than 50% of the cost 
of new construction if the property has been moderately rehabilitated. 
If the HOME assistance is less than 20% of the maximum allowable 
amount, the project receives 3 points; for 20% to 60%, 2 points; for 
61% to 99%, 1 point. If the HOME assistance is 100% of the maximum 
allowable amount, the project receives 0 points. See Table 9.
    (3) New Construction. For new construction projects, the maximum 
allowable expenditure of HOME funds shall be less than or equal to 100% 
of the TDC. If the HOME assistance amount is less than 20% of the 
maximum allowable amount, the project receives 3 points; for 20% to 
60%, 2 points; for 61% to 99%, 1 point. If the HOME assistance amount 
is 100% of the maximum allowable expenditure of HOME funds, the project 
receives 0 points. See Table 9.

                                             Table 9--Scoring Guide                                             
----------------------------------------------------------------------------------------------------------------
                                             Cost Effectiveness Test                                            
-----------------------------------------------------------------------------------------------------------------
              0% to 19%                       20% to 60%                61% to 99%                  100%        
----------------------------------------------------------------------------------------------------------------
3 pts................................  2 pts...................  1 pts...................  0 pts.               
----------------------------------------------------------------------------------------------------------------

    (ii) Legal and Administrative Actions--10 points maximum. All 
policies, procedures, standards, criteria, and planning documents 
necessary for the type of project proposed must be included in the 
documentation for the project. Where rental housing is envisioned, this 
includes the tenant selection requirements for rental housing at 24 CFR 
92.622(e). Where assistance for homeowners is contemplated, this 
includes the requirements for rehabilitation at 24 CFR 92.615(b). If 
the applicant is assisting homebuyers, the applicant must establish 
guidelines determined by HUD to be appropriate for the subsequent 
resale of the housing units, required under 24 CFR 92.615(a)(4). 
Planning documents must include a discussion of steps that will be 
taken to ensure maintenance of housing quality throughout the 
affordability period. See Table 10. Points will be awarded based on the 
completeness of the application and sample documentation in addressing 
the pertinent factors:
    (A) Housing Rehabilitation. Data submitted must include adopted 
rehabilitation policies, including adopted rehabilitation standards 
that meet applicable local codes and/or ordinances; maximum 
rehabilitation cost per unit; rehabilitation selection criteria; and 
project planning documents.
    (B) Acquisition. Data submitted must include adopted standards for 
houses that shall be acquired, including maximum purchase price per 
unit; participant selection criteria, and project planning documents.
    (C) New Construction. Data submitted must include adopted standards 
for construction that meet applicable or local codes and ordinances and 
that meet HUD prescribed energy-efficiency standards; maximum cost per 
unit; participant selection criteria; and project planning documents.

                         Table 10--Scoring Guide                        
------------------------------------------------------------------------
                     Other Legal and Administrative                     
-------------------------------------------------------------------------
              Good                        Fair           Unsatisfactory 
------------------------------------------------------------------------
10 points.......................  5 points...........  0 points.        
------------------------------------------------------------------------

    (iii) Staffing Plan--15 points maximum. The applicant must provide 
a staffing plan. The plan must relate the steps in the project 
execution timetable with the personnel skills required for this 
project.
    (A) For a grantee administered project, the staffing plan must 
identify the key personnel skills and experience requirements for the 
particular steps in the execution of this project, and relate this 
information to the project timetable, i.e., during acquisition, 
rehabilitation, construction. In order to be properly rated, experience 
identified must demonstrate the ability of key personnel in relation to 
the tasks required. A staffing plan which relates tasks, time, and 
personnel skills will receive 15 points. If the personnel requirements 
are for individuals who are experienced in the administration/
management of programs which are somewhat similar to, but not the same 
as, the proposed program, 7 points will be awarded. Failure to submit a 
staffing plan or the submission of a plan which identifies personnel 
requirements for individuals whose experience would not have prepared 
them for the administration/management of the proposed program will 
result in the award of 0 points. Points will be awarded in accordance 
with Table 11 below.
    (B) If the tribe has an agreement for the tribal IHA (or any other 
entity) to implement the project, a copy of the agreement must be 
included, as well as a staffing plan of the IHA (or other entity), 
which includes the addition of this project, and a description of the 
impact on the entity due to administering this project. The staffing 
plan must identify the key personnel skills and experience requirements 
for the particular steps in the execution of this project, and relate 
this information to the project timetable, i.e., during acquisition, 
rehabilitation, construction. In order to be properly rated, experience 
identified must demonstrate the ability of key personnel in relation to 
the tasks required. A staffing plan which relates tasks, time, and 
personnel skills will receive 15 points. If the personnel requirements 
are for individuals who are experienced in the administration/
management of programs which are somewhat similar to, but not the same 
as, the proposed program, 7 points will

[[Page 13580]]
be awarded. Failure to submit a staffing plan or the submission of a 
plan which identifies personnel requirements for individuals whose 
experience would not have prepared them for the administration/
management of the proposed program will result in the award of 0 
points. Points will be awarded in accordance with Table 11 below.

                        Table 11.--Scoring Guide                        
------------------------------------------------------------------------
                              Staffing plan                             
-------------------------------------------------------------------------
              Good                        Fair           Unsatisfactory 
------------------------------------------------------------------------
15 points.......................  7 points...........  0 points.        
------------------------------------------------------------------------

    (3) Leveraging--30 points maximum.
    The third of the three criteria provided in 24 CFR 92.604 is: 
Leveraging of HOME funds. Leveraging means using HOME funds to attract 
or bring in other dollars. Leveraging is the degree to which other 
sources of assistance (including--but not limited to--loans, advances, 
equity investments, interest subsidies, State funds, and private 
contributions) are used in conjunction with HOME funds to carry out the 
proposed project. The application must identify the leveraged funding 
for the HOME project and whether the leveraged funding will be used to 
pay for an eligible HOME project cost. For example, a Bureau of Indian 
Affairs-funded road is only counted for leveraging purposes if it's a 
site improvement and then only to the extent it benefits the HOME 
project units (and that amount becomes part of the development cost). 
If the proposed HOME project is being funded with resources other than 
the HOME grant, the application must identify those resources and 
explain how they will be used. The application may propose some or all 
of those resources for leverage points. Proportionate amounts of each 
resource and the HOME grant should be expended at the same time, but if 
not, the application must explain why and identify when the HOME funds 
and the non-HOME funds will be spent.
    Resources will be counted for leverage points only if they are in 
the possession of, or legally obligated to, the applicant before or 
within 90 calendar days of notification of grant award. For example, 
the contribution of land, goods, and services which come in or become 
available, or the prequalification of buyers for mortgage loans with a 
mortgage lender, before or within 90 calendar days of notification of 
grant award, fulfills this criterion. Contributions to a low-income 
housing tax credit program (LIHTC) where the funds do not become 
available to be expended for eligible project costs until 90 calendar 
days after notification of grant award do not fulfill this criteria. 
The use by the grantee of HOME grant funds for acquisition, 
rehabilitation, or construction will be conditioned upon the 
fulfillment of this criterion. If fulfillment does not occur, the grant 
will be withdrawn.
    For consideration as leverage points, applicants must not submit 
information about the category of costs called indirect costs in OMB 
circular A-87. Such amounts are not counted for leverage points.
    The phrase ``in-kind'' has been removed for leveraging points. 
Submit information about financial assistance for leverage points and 
identify it as land, goods, or services.
    Whether or not leverage points are awarded, the use of additional 
funding to the tribe or family, including mortgage loans and LIHTC 
funding, is encouraged.
    Applicants must provide documentation of the amount and sources of 
additional funds, including mortgage insurance, tribal funds, private 
contributions, tribal contributions directly related to the activity 
(labor, material, and equipment, as well as for soft costs, e.g., 
architectural and engineering costs), which are to be used in 
conjunction with HOME funds to carry out the proposed project.
    Land already owned by the tribe shall not be counted. In the case 
of land donated by individuals or entities, it will be counted if the 
donation was contingent upon the receipt of the HOME award. Land value 
will be counted as a contribution only to the extent of its appraised 
value. All appraisals shall be in conformance with established and 
generally recognized appraisal practices and procedures in common use 
by professional appraisers. Donated services will be accepted, provided 
that: first, the costs are demonstrated and determined necessary and 
directly attributable to the actual development of the project; and 
second, comparable costs and time estimates are submitted that justify 
the costs attributable to the donated services or labor. Donated labor 
shall be valued at a level necessary for the work provided and shall be 
assessed at the skill level of the individual(s) providing the labor.
    The amounts recognized as leverage can include any other Federal 
grant or assistance program. However, do not propose to use Indian 
Health Service funding for leverage points; IHS funding is not being 
made available for HOME projects. Loans secured through mortgage loan 
insurance programs (e.g., section 184 loan guarantee) may be recognized 
as leverage.
    Points will be awarded as presented in Table 12. Ratio as a 
percentage is calculated by dividing the number of dollars made 
available from other sources of assistance by the number of dollars of 
HOME funds requested in the application, and multiplying by 100. For 
example, when one hundred (or more) dollars are made available from 
other sources of assistance for each one hundred dollars of HOME funds 
requested in the application, the maximum number of points (30) is 
awarded. When sixty dollars are made available from other sources of 
assistance for each one hundred dollars of requested HOME funds, 
fifteen points are earned.

                        Table 12.--Scoring Guide                        
------------------------------------------------------------------------
                               Leveraging                               
-------------------------------------------------------------------------
                             Ratio                               Points 
------------------------------------------------------------------------
100% or more..................................................        30
80% but less than 100%........................................        20
60% but less than 80%.........................................        15
40% but less than 60%.........................................        10
Less than 40%.................................................         0
------------------------------------------------------------------------

(e) Application Review
    (1) Receipt, eligibility, correctable deficiencies, and non-
correctable deficiencies.
    (i) Receipt. Upon receipt of the application, the Area ONAP will 
note the date and time and provide written acknowledgement to the 
applicant indicating the date and time the application was received.
    (ii) Eligibility. Each application will be screened at the Area 
ONAP for eligibility requirements. For the application to be rated and 
ranked, it must meet each eligibility requirement.
    (iii) Correctable deficiencies. The opportunity to correct a 
technical, non-substantive deficiency is only given for those 
deficiencies which would not affect the evaluation of the application. 
Therefore, only minor administrative deficiencies are correctable. To 
assure uniform treatment, these are limited to a failure to submit a 
certification with the application or failure to submit a signed 
certification with the application. An applicant is not permitted to 
improve its application by filing statements that address substantive 
requirements after the due date for submissions has passed. If the 
application has correctable deficiencies, prior to a final 
determination on funding, the Area ONAP shall notify the applicant in 
writing of the correctable

[[Page 13581]]
deficiencies and require their correction by the applicant within 14 
calendar days of the issuance of notification.
    (iv) Non-correctable deficiencies. If the application does not 
include all the items identified as non-correctable eligibility 
requirements, the Area ONAP shall not request any corrections for 
correctable deficiencies. The Area ONAP shall set the application 
aside. When HUD announces its decisions concerning the funding 
competition, the Area ONAP shall notify the applicant whose application 
did not meet the eligibility requirements.
    (2) Eligibility requirements. Completeness will be determined by 
the Area ONAP as to whether the application includes all the non-
correctable items, properly prepared and executed, identified in the 
Checklist of Eligibility Requirements and Application Submission 
Requirements under Appendix 2 of this NOFA. The Area ONAP screening 
does not include determining whether the application meets the minimum 
point score requirement. After screening, each application which meets 
the eligibility and application submission requirements set forth in 
this NOFA and those which are complete except for correctable 
deficiencies will be rated.
    (3) Rating and ranking. Rating and ranking of applications will be 
carried out by a panel of HUD staff. The panel will review and rate 
each application which meets the eligibility requirements. The 
application ratings will be used to create an Initial Application 
Ranking List.
    (i) Ranking. After the applications from all applicants have been 
rated by the Area ONAP, the scores will be assembled in a single, 
merged list of scores for all applications rated by the Area ONAP. 
There will be a single list for each Area ONAP. For multi-project 
applications, each project will be rated and ranked individually.
    (ii) Computation. Scores for ranking will be carried out to two 
decimal places (e.g., 12.34).
    (4) Selection. The ranking process will produce an ordered list of 
projects that may receive funding. The order is established by the 
number of points the project received in the rating process. The 
eligibility requirement for further consideration will be 50 out of 100 
points. Project applications scoring lower than 50 points will be set 
aside as non-responsive and ineligible. After rating and ranking, 
applicants with the highest scores will be selected and offered awards 
to the extent that funds are available. NOTE: The grantee must carry 
out an environmental review before any HOME funds are committed to an 
activity requiring such a review (acquisition, rehabilitation, or new 
construction, generally; administrative costs are exempt) and obtain 
approval of its request for release of funds under 24 CFR part 58, in 
accordance with 24 CFR 92.633.
    (5) Tie Breaker. When rating results in a tie among projects, 
projects will be approved in the following order:
    (i) Those that can be fully funded over those that cannot be fully 
funded;
    (ii) Projects that benefit the greatest number of very low-income 
and low-income persons; and
    (iii) Projects that benefit the highest percentage of the total 
population of the tribe.
    (6) Errors. Area ONAP Administrators may make a determination that 
an error has occurred in the rating or ranking of applications. 
Applicants may bring errors in the rating and ranking of applications 
to the attention of Area ONAP within 90 days of being informed of their 
score. If an Area ONAP review determines that there was an error that 
denied funding to the applicant, the Area ONAP will construct a 
hypothetical distribution that would have existed if the error had not 
been made, and the Area ONAP will determine what the funding would have 
been for the applicant subject to the funds that were available at the 
time. The applicant will be funded out of remaining funds in the 
challenged round of funding, or out of the next available round of 
funding.

II. Application Process

    (a) Application Packages. Although this NOFA provides the public 
with notice of, and salient information about, the FY 1996 HOME program 
for Indian applicants, it is the application kit that provides 
applicants with further necessary information on how to participate in 
the program. Applicants should obtain a copy of the application kit, 
which includes copies of required forms, from any Area ONAP listed in 
Appendix 1.
    (b) Submittal of Complete Application. Completed applications must 
be submitted to the Area ONAP having jurisdiction for the applicant at 
the address listed at Appendix 1. The application shall be submitted on 
Form 424 and shall be accompanied by all the legal and administrative 
attachments required by the form.
    (c) Application Due Date. An applicant may submit an application 
for grant assistance to the Area ONAP having jurisdiction over the 
applicant after the publication of this NOFA in the Federal Register 
but before 3:00 P.M. Area ONAP local time, 60 calendar days after the 
publication date. This application deadline is firm as to date and 
hour. The Department shall treat as ineligible for consideration any 
application that is received after the deadline. Applicants should make 
early submission of their materials to avoid any risk of loss of 
eligibility brought about by unanticipated delays or other delivery-
related problems. Facsimile (``FAX'') copies of applications will not 
be accepted.

III. Other Matters

    (a) Environment. A Finding of No Significant Impact with respect to 
the environment has been made in accordance with HUD regulations that 
implement section 102(2)(C) of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332). The Finding of No Significant Impact is 
available for public inspection during business hours in the Office of 
the Rules Docket Clerk, Office of General Counsel, Room 10276, 
Department of Housing and Urban Development, 451 Seventh Street, S.W., 
Washington, D.C. 20410.
    (b) Energy. Utility expenses place a heavy burden on Indian housing 
and often cause abandonment. Applicants are encouraged to address this 
problem in applications for funding. 24 CFR 92.621: ``Newly constructed 
housing must meet the current edition of the Model Energy Code 
published by the Council of American Building Officials.'' See also 24 
CFR 905.250(b) and 24 CFR 85.36(b)(7).
    (c) 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 NOFA shall 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. The NOFA is limited to providing funds to Indian 
tribes in accordance with a program to expand the supply of affordable 
housing. As a result, the rule is not subject to review under the 
order.
    (d) Family Impact. The General Counsel, as the Designated Official 
for Executive Order 12606, The Family, has determined that the 
provisions of this NOFA have the potential for indirect, although 
positive, impact on family formation, maintenance and general well-
being within the meaning of the Order. The NOFA provides funds to 
Indian tribes in accordance with a program to expand the supply of 
affordable housing. To the extent that housing for families is 
increased, the

[[Page 13582]]
impact on the family is indirect and beneficial. Accordingly, no 
further review is considered necessary.
    (e) Section 102 of the HUD Reform Act. Documentation and Public 
Access Requirements; Applicant/Recipient disclosures:
    Documentation and public access requirements. HUD shall 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, shall be made available for public inspection 
for a five-year period beginning not less than 30 days after the award 
of the assistance. Material shall 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 shall include the 
recipients of assistance pursuant to this NOFA in its Federal Register 
notice of all recipients of HUD assistance awarded on a competitive 
basis. (See 24 CFR 12.14(a) and 12.16(b), and the notice published in 
the Federal Register on January 16, 1992 (57 FR 1942), for further 
information on these documentation and public access requirements.)
    Disclosures. HUD shall make available to the public for five years 
all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this NOFA. Update reports (also Form 2880) shall be 
made available along with the applicant disclosure reports, but in no 
case for a period less than three years. All reports--both applicant 
disclosures and updates--shall be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15. (See 24 CFR subpart C, and the notice 
published in the Federal Register on January 16, 1992 (57 FR 1942), for 
further information on these disclosure requirements.)
    (f) 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) is codified at 24 CFR 
part 4. 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 or employees who have ethics related questions should 
contact the HUD Office of Ethics (202) 708-3815. (This is not a toll-
free number.) For HUD employees who have specific program questions, 
such as whether particular subject matter can be discussed with persons 
outside HUD, the employee should contact the appropriate Field Office 
Counsel, or Headquarters counsel for the program to which the question 
pertains.
    (g) Section 3. 24 CFR part 135. Economic Opportunities for Low and 
Very Low Income Persons. All applicants are herein notified that 
section 3 of the Housing and Urban Development Act of 1968 and the 
regulations in 24 CFR part 135 are applicable to funding awards made 
under this NOFA. One of the purposes of the assistance is to give to 
the greatest extent feasible, and consistent with existing Federal, 
State, and local laws and regulations, job training, employment, 
contracting and other economic opportunities to section 3 residents and 
section 3 business concerns. Applicants that receive Indian HOME 
Program assistance which exceeds $200,000 for housing rehabilitation or 
new construction shall comply with the procedures and requirements of 
this part to the maximum extent consistent with, but not in derogation 
of, compliance with section 7(b) of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450e(b)).

    Authority: 42 U.S.C. 3535(d) and 12701-12839.

    Dated: March 15, 1996.
Michael B. Janis,
General Deputy Assistant Secretary for Public and Indian Housing.

     Appendix 1.--List of Local Offices of Native American Programs     
------------------------------------------------------------------------
        Tribes located                     Area ONAP address            
------------------------------------------------------------------------
East of the Mississippi River  Eastern/Woodlands Office of Native       
 (including all of Minnesota    American Programs, 5P, Metcalfe Federal 
 and Iowa).                     Building, 77 West Jackson Boulevard,    
                                Chicago, Illinois 60604-3507, (312) 353-
                                1282 or (800) 735-3239, TDD Numbers: 1- 
                                800-927-9275 or 312-886-3741.           
Louisiana, Missouri, Kansas,   Southern Plains Office of Native American
 Oklahoma, and eastern Texas.   Programs, 6.IPI, 500 West Main Street,  
                                Suite 400, Oklahoma City, Oklahoma      
                                73102, (405) 553-7525, TDD Numbers: 405-
                                231-4181 or 405-231-4891.               
Colorado, Iowa, Montana,       Northern Plains Office of Native American
 Nebraska, North Dakota,        Programs, 8P, First Interstate Tower    
 South Dakota, Utah, and        North, 633 17th Street, Denver, Colorado
 Wyoming.                       80202-3607, (303) 672-5462, TDD Number: 
                                303-844-6158.                           
Arizona, California, New       Southwest Office of Native American      
 Mexico, Nevada, and western    Programs, 9EPID, Two Arizona Center, 400
 Texas.                         North Fifth Street, Suite 1650, Phoenix,
                                Arizona 85004-2361, (602) 379-4156, TDD 
                                Number: 602-379-4461                    
                                                                        
                                   or                                   
                                                                        
                               Office of Native American Programs, HUD, 
                                450 Golden Gate Avenue, 8th Floor, Box  
                                36003, San Francisco, CA 94102-3448,    
                                (415) 436-8121, TDD Number: (415) 436-  
                                6559.                                   
Idaho, Oregon, and Washington  Northwest Office of Native American      
                                Programs, 10PI, 909 First Avenue, Suite 
                                300, Seattle, Washington 98104-1000,    
                                (206) 220-5270, TDD Number: (206) 220-  
                                5185.                                   
Alaska.......................  Alaska Office of Native American         
                                Programs, 10.1PI, 949 East 36th Avenue, 
                                Suite 401, Anchorage, Alaska 99508-4399,
                                (907) 271-4633, TDD Number: (907) 271-  
                                4328.                                   
------------------------------------------------------------------------


[[Page 13583]]


Appendix 2. Checklist of Eligibility Requirements and Application 
Submission Requirements

    Applications must meet the requirements in (1) and (2), below. 
Except for the certifications in (2)(iii) and (2)(iv), these 
requirements are non-correctable after the closing of the 
application submission period.
    (1) Each application must be:
    (i) ________ From an eligible applicant.
    (ii) ________ If the applicant proposes to involve its IHA, the 
IHA must not have been disqualified for funding of new projects, as 
determined in accordance with 24 CFR 905.135. (A resolution may be 
attached which authorizes another entity, e.g., a housing authority, 
to prepare the application on behalf of the tribe; however, the 
tribe must be the applicant and sign the application.)
    (iii) ________ There is no information to indicate that the 
eligible applicants and involved IHA lack the administrative 
capacity to undertake the project proposed.
    (iv) ________ For one or more Indian HOME Program eligible 
projects.
    (v) ________ For not more than a $1.5 million grant.
    (vi) ________ For a grant amount not in excess of 115% of the 
maximum per-unit subsidy amount (24 CFR 92.620). The maximum per-
unit subsidy amount is the total development cost standard for the 
area. Maximum allowable Total Development Costs (``TDCs'') are 
established by location and by unit size (size is expressed as 
number of bedrooms). Maximum allowable TDCs are available from the 
Area ONAP for each applicant community. To determine whether the 
HOME grant amount requested satisfies this limitation, multiply the 
maximum allowable TDC for each size by the proposed number of units, 
add the products, multiply by 115%, and compare the result to the 
HOME grant amount requested. The grant amount request may not be 
more than this amount.
    (vii) ________ Submitted with an original and one copy.
    (2) Each application must contain the following:
    (i) ________ Transmittal Letter.
    (ii) ________ Standard Form-424, Application for Federal 
Assistance. Complete side one only.
    Name of the eligible applicant, e.g., a tribe or an authorized 
Tribal organization, must be in field 5, legal applicant. A 
resolution may be attached which authorizes another entity, e.g., a 
housing authority, to prepare the application on behalf of the 
eligible applicant; however, the eligible applicant must be the 
applicant and sign the application. The Catalog of Federal Domestic 
Assistance identifies this program as program number 14.239.
    (iii) ________ Form HUD-4126, which contains the following 
certifications:
    (A) A certification that the applicant shall comply with the 
acquisition and relocation requirements of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970, as 
amended, implementing regulations at 49 CFR part 24 and the 
requirements of 24 CFR 92.634.
    (B) A certification that the applicant shall use HOME funds in 
compliance with all the requirements of 24 CFR part 92, the HOME 
investment partnerships program interim rule.
    (C) Drug-free workplace. The certification with regard to the 
drug-free workplace required by 24 CFR part 24, subpart F and 
appendix C.
    (D) Debarment. The certification that neither the applicant nor 
its principals are presently excluded from participation in any HUD 
programs, as required by 24 CFR part 24, appendix A.
    (E) Audits. A certification that the applicant does not have an 
outstanding Indian HOME or ICDBG obligation to HUD that is in 
arrears, or it has agreed to a repayment schedule. A certification 
that the applicant does not have an overdue or unsatisfactory 
response to an audit finding(s).
    (F) Fire Safety. A certification that the applicant shall comply 
with the requirements of the Fire Authorization Administration Act 
of 1992 (Pub. L. 102-522).
    (G) Economic Opportunities for Low-Income and Very Low-Income 
Persons. A certification that the applicant shall comply with the 
requirements of Section 3 of the Housing and Urban Development Act 
of 1968 and the regulations in 24 CFR part 135 to the maximum extent 
consistent with, but not in derogation of, compliance with section 
7(b) of the Indian Self-Determination and Education Assistance Act 
(25 U.S.C. 450e(b)).
    (iv) ________ Drug-free workplace. In order to fulfill OMB 
requirements, a separate, complete text certification with regard to 
the drug-free workplace required by 24 CFR part 24, subpart F and 
appendix C.
    (v) ________ Form HUD-2880, Applicant/Recipient Disclosure/
Update Report, as required under subpart C of 24 CFR part 12, 
Accountability in the Provision of HUD Assistance.
    (vi) ________ Form HUD-4121-I, Indian HOME Program Grants. 
Comprehensive Approach; component that addresses the Comprehensive 
Approach For Expanding The Supply Of Affordable Housing. Indian 
tribes are not required to submit a Comprehensive Housing 
Affordability Strategy (CHAS), a Tribal Housing Plan, or a housing 
strategy to receive HOME funds. However, the application must 
demonstrate how the proposed project will contribute to a 
comprehensive approach for expanding the supply of affordable 
housing for members of the Indian tribe.
    (vii) ________ Form HUD-4122-I, Indian HOME Program Grants. 
Project Summary; component that addresses the summary description of 
the proposed project.
    (viii) ________ Operation Plan. All proposed projects that shall 
be operated as rental projects MUST include a management and 
maintenance plan and a staffing plan for these functions. An 
agreement with the tribal IHA to manage the units is not sufficient 
as a management and maintenance staffing plan; the IHA must include 
projected staffing to carry out these functions.
    (ix) ________ Form HUD-4125-I, Indian HOME Program Grants. 
Implementation Schedule.
    (x) ________ Form HUD-4123-I, Indian HOME Program Grants. Cost 
Summary.
    (xi) ________ Project location map.
    (xii) ________ Components that address the selection criteria. 
The applicant must provide a narrative and supporting documentation 
that are responsive to the selection criteria of sections I.(d) (1), 
(2), and (3) of this NOFA. This includes, but is not limited to, a 
description of how the HOME funds shall be used, and the various 
kinds of information that are necessary in order to apply the 
selection criteria and rating factors.

[FR Doc. 96-7281 Filed 3-26-96; 8:45 am]
BILLING CODE 4210-33-P