[Federal Register Volume 61, Number 86 (Thursday, May 2, 1996)]
[Notices]
[Pages 19762-19767]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10886]




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Part V





Department of Housing and Urban Development





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Notice of Funding Availability for the Family Unification Program, 
Fiscal Year 1996; Notice

  Federal Register / Vol. 61, No. 86 / Thursday, May 2, 1996 / 
Notices  

[[Page 19762]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4045-N-01]


Office of the Assistant Secretary for Public and Indian Housing; 
NOFA for the Family Unification Program, Fiscal Year 1996

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

ACTION: Notice of funding availability (NOFA) for FY 1996.

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SUMMARY: This notice announces the availability of up to $32 million 
(approximately) in 2-year budget authority for FY 1996 for section 8 
rental certificates under the Family Unification Program, which will 
support approximately 1,600 families. Public housing agencies (PHAs) 
and Indian Housing Authorities (IHAs), herein referred to as housing 
agencies (HAs), are invited to submit applications for housing 
assistance.
    The purpose of the Family Unification Program is to provide housing 
assistance to families for whom the lack of adequate housing is a 
primary factor in the separation, or imminent separation, of children 
from their families. As was the case in prior years, participation in 
the Family Unification Program is limited to HAs in 16 States. The 16 
States are: California, Florida, Georgia, Illinois, Maryland, 
Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, 
North Carolina, Ohio, Pennsylvania, Texas, and Virginia.

DATES: The application deadline for the Family Unification program NOFA 
is July 1, 1996, 3:00 p.m., local time.
    The above-stated application deadline is 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.

ADDRESSES: The local HUD State or Area Office, Attention: Director, 
Office of Public Housing, is the official place of receipt for all 
applications, except applications from Indian Housing Authorities 
(IHAs). The local HUD Native American Programs Office, Attention: 
Administrator, Office of Native American Programs, is the place of 
official receipt for IHA applications. 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 will be 
used.

FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Director, Operations 
Division, Office of Rental Assistance, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410-8000, 
telephone number (202) 708-0477 (this is not a toll-free number). For 
hearing- and speech-impaired persons, this number may be accessed via 
TTY (text telephone) by calling the Federal Information Relay Service 
at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The section 8 information collection requirements contained in this 
NOFA have been approved by the Office of Management and Budget in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520), and assigned OMB control number 2577-0169. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless the collection displays a valid 
control number.

Family Self-Sufficiency (FSS) Program Requirement

    Unless specifically exempted by HUD, all rental voucher or rental 
certificate funding reserved in FY 1996 (except funding for renewals or 
amendments) will be used to establish the minimum size of an HA's FSS 
program.

A. Purpose and Substantive Description of Family Unification Program

    (1) Authority. The Family Unification Program is authorized by 
Section 8(x) of the United States Housing Act of 1937, 42 U.S.C. 
1437f(x).
    (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 982). The HA may issue 
a rental voucher (24 CFR parts 887 and 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.--(a) Family Unification Program 
Eligibility. Consistent with previous NOFAs, HAs currently 
administering a rental voucher or certificate program in the following 
16 States are eligible to apply (except those HAs determined 
unacceptable under section A.(3)(b) of this NOFA): California, Florida, 
Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, 
Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, 
Texas, and Virginia.
    (b) Eligibility for HUD-Designated Housing Agencies with Major 
Program Findings. HUD will establish a pass or fail threshold for all 
HAs. An HA that fails the threshold will not be eligible to apply 
without another entity to administer the program. 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 the Family Unification Program, the HA must submit an 
application that designates another housing agency, nonprofit 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

[[Page 19763]]

agencies may be notified by HUD at other times as HUD deems 
appropriate.
    (4) Program Guidelines.--(a) Eligibility.--(i) Family Unification 
eligible families. Each HA must modify, in accordance with program 
rules, its selection preference system to permit the selection of 
Family Unification eligible families for the program based on available 
funding provided by HUD for this purpose. The term ``Family Unification 
eligible family'' means a family that:
    (A) The public child welfare agency has certified is a family for 
whom the 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) Lack of Adequate Housing. The lack of adequate housing means:
    (A) A family is living in substandard housing; or
    (B) A family is homeless; or
    (C) A family is displaced by domestic violence; or
    (D) A family is living in an overcrowded unit.
    (iii) Substandard Housing. A family is living in substandard 
housing if the unit where the family lives:
    (A) Is dilapidated;
    (B) Does not have operable indoor plumbing;
    (C) Does not have a usable flush toilet inside the unit for the 
exclusive use of a family;
    (D) Does not have a usable bathtub or shower inside the unit for 
the exclusive use of a family;
    (E) Does not have electricity, or has inadequate or unsafe 
electrical service;
    (F) Does not have a safe or adequate source of heat;
    (G) Should, but does not, have a kitchen; or
    (H) Has been declared unfit for habitation by an agency or unit or 
government.
    (iv) Dilapidated Housing. A family is living in a housing unit that 
is dilapidated if it does not provide safe and adequate shelter, and in 
its present condition endangers the health, safety, or well-being of a 
family, or it has one or more critical defects, or a combination of 
intermediate defects in sufficient number or extent to require 
considerable repair or rebuilding. The defects may involve original 
construction, or they may result from continued neglect or lack of 
repair or from serious damage to the structure.
    (v) Homeless. A homeless family includes any person or family that:
    (A) Lacks a fixed, regular, and adequate nighttime residence; and
    (B) Has a primary nighttime residence that is:
    (1) A supervised publicly or privately operated shelter designed to 
provide temporary living accommodations (including welfare hotels, 
congregate shelters, and transitional housing);
    (2) An institution that provides a temporary residence for persons 
intended to be institutionalized; or
    (3) A public or private place not designed for, or ordinarily used 
as, a regular sleeping accommodation for human beings.
    (vi) Detained Family. A Family Unification eligible family does not 
include any person imprisoned or otherwise detained pursuant to an Act 
of the Congress or a State law.
    (vii) Displaced by Domestic Violence. A family is displaced by 
domestic violence if:
    (A) The applicant has vacated a housing unit because of domestic 
violence; or
    (B) The applicant lives in a housing unit with a person who engages 
in domestic violence.
    (C) ``Domestic violence'' means actual or threatened physical 
violence directed against one or more members of the applicant family 
by a spouse or other member of the applicant's household.
    (viii) Qualify as Involuntarily Displaced. For an applicant to 
qualify as involuntarily displaced because of domestic violence:
    (A) The HA must determine that the domestic violence occurred 
recently or is of a continuing nature; and
    (B) The applicant must certify that the person who engaged in such 
violence will not reside with the applicant family unless the HA has 
given advance written approval. If the family is admitted, the HA may 
deny or terminate assistance to the family for breach of this 
certification.
    (ix) Overcrowded Housing. A family is considered to be living in an 
overcrowded unit if:
    (A) The family is separated from its children and the parent(s) are 
living in an otherwise standard housing unit, but, after the family is 
re-united, the parents' housing unit would be overcrowded for the 
entire family and would be considered substandard.
    (B) The family is living with its children in a unit that is 
overcrowded for the entire family and this overcrowded condition may 
result in the imminent placement of a child or children in out-of-home 
care.
    (C) For purpose of this paragraph (ix), the HA shall have 
discretion to determine whether the unit is ``overcrowded'' in 
accordance with HA occupancy standards.
    (x) 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 Program 
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 families with children on its waiting list 
are living in temporary shelters or on the street and may qualify for 
the Family Unification Program, 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 based upon the 
criteria established in Section 8(x) of the United States Housing Act 
of 1937, HUD regulations, and the HA policies implementing the 
regulations;
    (iii) Commit sufficient staff resources to ensure that Family 
Unification eligible families are identified and

[[Page 19764]]

certified in a timely manner and to provide follow-up supportive 
services after the families lease units; 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 2-year term of the Annual Contributions Contract 
(ACC) for the Section 8 rental certificates provided under this 
program.

B. Family Unification Allocation Amounts

    This NOFA announces the availability of up to $32 million for the 
Family Unification Program which will support assistance for about 
1,600 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 the threshold criteria 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 (42 
U.S.C. 1439(d)) and the implementing regulations at 24 CFR part 791, 
subpart D. Applications that meet the requirements of this NOFA and are 
included in the FY 1996 lottery, but that are not selected, may be 
considered for funding from funds available, if any, in FY 1997 
appropriations designated for the Family Unification Program.

C. Family Unification Application Submission Requirements

    (1) Forms. Application forms may be obtained from the local HUD 
Office. Applications must include the following, unless otherwise 
specifically excepted:
    (a) Form HUD-52515. An Application for Existing Housing, Form HUD-
52515, must be completed in accordance with the program regulations (24 
CFR 982.102). An application must include the information in Section C, 
Average Monthly Adjusted Income, 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.
    (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.
    (c) Certification Regarding Lobbying. 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, but IHAs established under State law are not excluded 
from the coverage. HAs may obtain a copy of the certification and the 
Form SF-LLL from the local HUD Office.
    (2) 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.
    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. Because 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.
    (3) Letter of Intent and Narrative. All the items in this Section 
must be included in the application submitted to the HUD Office. 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 the number of rental certificates requested. The application must 
include an explanation of how the application meets, or will meet, 
Threshold Criteria 1 through 4 in Section D of this NOFA, 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 definition of eligible families;
    (ii) The method used to identify eligible families;
    (iii) The process to certify eligible families;
    (iv) The PCWA assistance to families to locate suitable housing;
    (v) The staff resources committed to the program; and
    (vi) PCWA experience with the administration of similar programs 
including cooperation with a 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

[[Page 19765]]

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.
    (4) 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.

D. Family Unification Application Rating Process

    (1) General. The HUD Office is responsible for rating the 
applications for the selection criteria established in this NOFA, 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, in order to be 
eligible for funding, must receive at least 30 points for Threshold 
Criterion 1, Unmet Housing Needs, and at least 20 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) THRESHOLD 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.
     0 points. If the HA's percentage of unmet housing need is 
equal to or less than 10 percent of the allocation area's unmet need.
    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, or its successor agency under Public Law 
103-354 (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) THRESHOLD 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 nonprofit 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 nonprofit 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 1993 Moving to Opportunity (MTO) for Fair 
Housing Demonstration and any other HAs that receive counseling funds 
from HUD (e.g., in settlement of litigation involving desegregation or 
demolition of public housing, mixed population projects) may qualify 
for points under this assessment, but these HAs must identify all 
activities undertaken, other than those funded by HUD, 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 19766]]

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 PCWA 
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, the PCWA's certification process for determining Family 
Unification eligible families, the responsibilities of each agency, the 
PCWA assistance provided to families in locating housing units, the 
PCWA staff resources committed to the program, the past PCWA experience 
administering a similar program, and 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 that 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.

E. Corrections to Deficient Family Unification Applications

    (1) Acceptable Applications. To be eligible for processing, an 
application must be received by the appropriate HUD Office no later 
than the date and time specified in 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.
    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 14th calendar day of the correction 
period will not be accepted and the application will be rejected as 
incomplete.
    (2) Unacceptable Applications. (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 noncompliance.
    (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 management review findings for one or more of its 
Rental Voucher, Rental Certificate, or Moderate Rehabilitation 
Programs, or, in the case of a 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 A.(3)(b) 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) A HA application that does not comply with the requirements 
of 24 CFR 982.102 and this NOFA, after the expiration of the 14-
calendar day technical deficiency correction period will be rejected 
from processing.
    (viii) A HA application submitted after the deadline date.
    (ix) The application is from a HA that has failed to achieve a 
lease-up rate of 90 percent 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.

F. Family Unification Application Selection Process

    After the HUD Office has screened HA applications and disapproved 
any applications unacceptable for further processing (See Section E.(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;

[[Page 19767]]

    (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.
    HUD 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 this 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 10 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.

G. Other Matters

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, D.C. 
20410.
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.
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.
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 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.)
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), 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 or employees who have ethics-related questions should 
contact the HUD Office of Ethics (202) 708-3815 (TDD/Voice) (this is 
not a toll-free number). Any HUD employee who has specific program 
questions, such as whether particular subject matter can be discussed 
with persons outside the Department, should contact the appropriate 
Field Office Counsel or Headquarters counsel for the program to which 
the question pertains.
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.

    Dated: April 23, 1996.
Michael B. Janis,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 96-10886 Filed 5-1-96; 8:45 am]
BILLING CODE 4210-33-P