[Federal Register Volume 61, Number 132 (Tuesday, July 9, 1996)]
[Notices]
[Pages 36254-36257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17373]


      

[[Page 36253]]


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Part VI





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Community Planning and 
Development: Self-Help Homeownership Opportunity Program, Funding 
Availability and Guidelines; Notice

  Federal Register / Vol. 61, No. 132 / Tuesday, July 9, 1996 / 
Notices  

[[Page 36254]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4062-N-01]


Office of the Assistant Secretary for Community Planning and 
Development; Self-Help Homeownership Opportunity Program (SHOP) Notice 
of Funding Availability and Guidelines

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Notice of funding availability for fiscal year 1996.

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SUMMARY: This NOFA announces the availability of $15 million in funding 
for the Self-Help Homeownership Opportunity Program (SHOP), and 
contains information concerning basic program requirements, eligible 
applicants, funding available for grants, and application requirements 
and procedures. The NOFA is issued under section 11 of the Housing 
Opportunity Program Extension Act of 1996 (the ``Extension Act''). The 
program is being implemented through this NOFA and no application 
materials or forms are required other than as set out in this NOFA. No 
separate implementing regulations will be issued. Applicants are 
advised to consult section 11 of the Extension Act in order to prepare 
an application that is consistent with its requirements, some of which 
may not be repeated in this NOFA. Failure to follow the instructions 
and procedures contained in this NOFA or lack of adherence to the 
program requirements found in section 11 of the Extension Act will 
result in an application being rejected by HUD.

DATES: Completed applications for SHOP grants must be physically 
received by 4:30 p.m. Eastern Daylight Time on August 8, 1996. It is 
not sufficient for an application to bear a postmark within the 
deadline. Applications sent by facsimile (FAX) will not be accepted. 
HUD will not waive this deadline for actual submission for any reason. 
The application deadline is firm as to date and hour. In the interest 
of fairness to all competing applicants, the Department will treat as 
ineligible for consideration any application that is received after the 
deadline. Applicants should take this policy into account and consider 
early submission to avoid any risk of loss of eligibility brought about 
by any unanticipated or delivery-related problems.

ADDRESSES: An original and two copies of the completed application must 
be submitted to HUD Headquarters, Office of Community Planning and 
Development, Processing and Control Unit, Room 7251, 451 Seventh 
Street, SW, Washington, DC 20410, ATTN: Self-Help Program. (A 
3.5 computer diskette containing the complete application 
may be substituted for one of the paper copies.)

FOR FURTHER INFORMATION CONTACT: Clifford Taffet, Office of Affordable 
Housing Programs, Department of Housing and Urban Development, room 
7168, 451 Seventh Street, SW, Washington, DC 20410; telephone (202) 
708-3226 EXT. 4589; (TTY (202) 708-2565). (These are not toll-free 
numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The information collection requirements contained in this NOFA (FR-
4062) have been submitted to the Office of Management and Budget (OMB) 
for emergency processing under the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501-3520) and 5 CFR 1320.13, and have been assigned OMB control 
number 2506-0157, expires September 30, 1996. 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.
    This information collection is required in connection with the 
issuance of this NOFA, announcing the availability of $15 million for 
grants to encourage innovative homeownership opportunities through the 
provision of self-help housing where the homeowner contributes a 
significant amount of sweat equity toward construction of the 
dwellings. The information collection is needed so that HUD staff may 
determine the eligibility, qualifications and capability of applicants 
to carry out self-help and volunteer labor homeownership programs. HUD 
will review the information provided by the applicants against the 
selection criteria contained in the NOFA in order to rate and rank the 
applications and select the best and most qualified individual 
applications for funding. The selection criteria are: (1) Operational 
capability and experience; (2) financial capability and experience; (3) 
quality of program design; (4) leveraging of public/private resources; 
and (5) Empowerment Zone/Enterprise Community support.
    The information is public information and is not subject to any 
confidentiality requirements other than the prohibition against advance 
information on funding decisions (see section III of this NOFA).
    The estimates of the total number of hours needed to prepare the 
information collection including number of respondents, frequency of 
response, and hours of response are as follows:

----------------------------------------------------------------------------------------------------------------
                                                     Number of     Frequency of      Hours per                  
                                                    respondents      responses       response      Burden hours 
----------------------------------------------------------------------------------------------------------------
Application Development.........................              10               1              80             800
----------------------------------------------------------------------------------------------------------------
                                        Total Estimated Burden Hours: 800                                       
----------------------------------------------------------------------------------------------------------------

    The public is requested to send any comments concerning the 
accuracy of this burden estimate and any suggestions for reducing this 
burden to: Kay Weaver, Departmental Reports Liaison Officer, Office of 
Administration, Department of Housing & Urban Development, 451 7th 
Street, SW, Room 4176, Washington, DC 20410.

I. Purpose and Substantive Description

A. Authority

    The funding made available under this NOFA is authorized by Section 
11 of the Housing Opportunity Program Extension Act of 1996 (Pub. L. 
104-120, 110 Stat 834, approved March 28, 1996). No separate 
implementing regulations will be issued. HUD may issue additional 
guidance containing more detailed policy than provided in this NOFA 
with respect to various aspects of the program, the management of 
funds, the environmental clearance process and similar matters, as 
necessary.

B. Purpose and Program Requirements

    The Self-Help Homeownership Opportunity Program is intended to 
facilitate and encourage innovative homeownership opportunities through 
the provision of self-help housing where the homebuyer contributes a 
significant amount of sweat-equity toward the construction of the new 
dwelling. This

[[Page 36255]]

program will increase homeownership levels and is in furtherance of the 
National Homeownership Strategy. The strategy is a five-year blueprint 
for cooperative actions identified by 56 private and public 
organizations that is intended to achieve an all-time high level of 
homeownership by the year 2000. The National Homeownership Strategy, 
``Partners in the American Dream'' was prepared by the Department and 
its Partners in response to a request from President Clinton in 1995. 
These decent, safe, and sanitary nonluxury dwellings must be made 
available to eligible homebuyers at prices below the prevailing market 
prices. Eligible homebuyers are low-income families (families whose 
annual incomes do not exceed 80 percent of the median income for the 
area, as determined by HUD) who are unable to otherwise afford to 
purchase a dwelling. Activities to develop housing assisted under this 
NOFA must involve community participation, by providing for the 
utilization of volunteers in the construction of dwellings or by other 
activities designed to involve the community in the project. The only 
eligible expenses for program funds are land acquisition (including 
financing and closing costs) and infrastructure improvement 
(installing, extending, constructing, rehabilitating, or otherwise 
improving utilities and other infrastructure). Administrative expenses 
and costs associated with the rehabilitation, improvement, or 
construction of dwellings are not eligible uses of program funds. Among 
the program requirements contained in section 11 of the Extension Act 
that the applicant's proposed program design must meet in order to be 
considered as eligible are the following: (1) to provide for 
development, through significant amounts of sweat-equity and volunteer 
labor, of at least 30 dwellings at an average cost of no more than 
$10,000 per unit in SHOP funds; (2) to use the grant in a manner that 
leverages other sources of funding, including private or other public 
funds; (3) to construct quality dwellings that comply with local 
building and safety codes and standards and are available at prices 
below the prevailing market price; and (4) to schedule activities so as 
to substantially fulfill the obligations under the grant agreement 
within 24 months after grant amounts are first made available to the 
organization or consortia. HUD will recapture undisbursed amounts from 
the grantees who fail to substantially fulfill these obligations within 
24 months.

C. Other Federal Requirements

    Grantees awarded funds under this NOFA are subject to the following 
requirements: The administrative requirements of 24 CFR part 84, OMB 
Circular A-122 and the audit requirements in 24 CFR part 45 
(implementing OMB Circular A-133); the Equal Opportunity requirements 
referred to in 24 CFR 5.105(a) (61 FR 5198, 5202, published February 9, 
1996); the provisions contained in Section 305 of the Multifamily 
Housing Property Disposition Reform Act of 1994, Environmental Review, 
codified in the Environmental Review regulations at 24 CFR part 58, are 
applicable to properties assisted with SHOP funds (see next paragraph); 
the requirements of the Uniform Relocation Act, as implemented by 49 
CFR part 24; the lead-based paint requirements set out in 24 CFR part 
35; the requirements of section 3 of the Housing and Urban Development 
Act of 1968 concerning infrastructure improvements funded with SHOP 
funds; restrictions on participation by ineligible, debarred or 
suspended persons or entities referred to in 24 CFR 5.105(c); and the 
Drug-Free Workplace authorities referred to in 24 CFR part 24.
    Use of SHOP funds is subject to the environmental review 
requirements that apply to HUD Special Projects in accordance with 
Section 305(c) of the Multifamily Housing Property Disposition Reform 
Act of 1994, as implemented in 24 CFR part 58 (final rule published on 
April 30, 1996, 61 FR 19120, effective May 30, 1996). Recipients are 
cautioned that they may not commit either SHOP or non-HUD funds for 
most activities until a Federal environmental review is performed by a 
unit of general local government, tribe or State, and until HUD 
approves a recipient's request for release of funds under part 58.

D. Allocation Amounts

    This NOFA makes available $15 million in SHOP grants, in accordance 
with sections 11(c)(2) and 12(b)(1) of the Housing Opportunity Program 
Extension Act of 1996.

E. Unused Funds

    If funds remain after HUD has approved all approvable grant 
applications, the excess will be provided to Habitat for Humanity 
International for use in accordance with the requirements of section 11 
of the Extension Act.

F. Eligible Applicants

    Except as noted below, eligible applicants are nonprofit national 
or regional organizations or consortia that have experience in 
providing or facilitating self-help housing homeownership 
opportunities, and that have standards of financial accountability that 
conform to 24 CFR 84.21, ``Standards for Financial Management 
Systems''. Applicants receiving awards are required to have audits 
conducted in accordance with the provisions of 24 CFR part 45 (OMB 
Circular A-133) or a program-specific financial audit, as appropriate. 
Where the applicant is a consortium, one organization must be chosen as 
the lead applicant. The lead applicant will execute the application 
documents and, if the application is selected for funding, will execute 
the grant agreement and assume primary responsibility for carrying out 
the grant activities in compliance with all program requirements. Other 
participants in the consortium should be listed in the narrative 
section of the application addressing rating criteria numbers (1) 
(``Operational Capability and Experience of the Applicant''); and (2) 
(``Financial Capability and Experience of the Applicant''). Affiliates 
of Habitat for Humanity International are not eligible for funding 
under this NOFA since SHOP funds are being made available to them 
separately under section 11 of the Extension Act.

II. Grant Applications

A. Application Submission

    Only timely applications received at HUD Headquarters will be 
considered for funding (see ``Addresses'' at the beginning of this 
NOFA). Applications (original and two copies) must be physically 
received no later than 4:30 p.m. Eastern Daylight Time on the deadline 
(see ``Dates'' at the beginning of this NOFA). It is not sufficient for 
an application to bear a postmark within the deadline. Applications 
sent by facsimile (FAX) will not be accepted.

B. Application Requirements

    All applicants must submit applications on 8\1/2\'' by 11'' paper 
which are bound in loose leaf binders for easy copying. All pages and 
attachments must be numbered consecutively. Applications must contain 
the following items: (1) OMB Standard Form 424, Request for Federal 
Assistance, Standard Form 424B, Non-Construction Assurances, 
Certification Concerning Use of Federal Funds for Lobbying, and 
Certification Concerning Drug-Free Workplace signed by a person legally 
authorized to enter into an agreement with HUD; and (2) a detailed 
narrative statement and program

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description which addresses each of the five Rating Criteria in Section 
II.E of this NOFA. Requests for copies of the standard forms and 
certifications can be made by calling Community Connections at 1-800-
998-9999 or by fax to HUD, ATTN: Cliff Taffet, at (202) 708-1744. (This 
is not a toll-free number.) Please refer to the ``Self-Help Program'' 
in your request. The application will become part of the grant 
agreement to be entered into by successful applicants.

C. Selection Process

    The selection process for grants under SHOP consists of a screening 
review, and then, for those applications meeting all screening 
requirements, rating and ranking under substantive rating criteria. 
However, rating and ranking will only occur if there are more funds 
requested in applications that meet screening requirements than are 
available under this NOFA.

D. Screening Process/Corrections to Deficient Applications

    (1) HUD will screen each application submitted on or before the 
deadline to determine if it is complete, is internally consistent, 
contains correct computations, and complies with all requirements of 
section 11 of the Extension Act and this NOFA.
    (2) Where HUD determines that an application as initially submitted 
is fundamentally incomplete or would require substantial revisions, it 
will not consider the application further.
    (3) Where HUD determines an application is deficient in one or more 
of the areas in paragraph D(1) of this section but is not fundamentally 
incomplete and does not require substantial revisions, it will notify 
the applicant in writing and give it an opportunity to correct the 
technical deficiencies that do not pertain to the merits of its 
submission. HUD will not notify the applicant of any deficiencies in 
material that is to be evaluated under the rating criteria.
    (4) The notification will require the applicant to submit 
additional or corrected items so that they are received in HUD 
Headquarters by no later than 4:30 p.m. Eastern Daylight Time on the 
14th calendar day after the date of the written notification to the 
applicant giving it an opportunity to correct the deficiency. HUD may 
not extend this deadline for actual receipt of the material for any 
reason. After review of all additional or corrected materials, HUD will 
not consider further any applications that do not comply with the 
requirements of the NOFA and section 11 of the Extension Act.

E. Rating Criteria

    All applications meeting the screening requirements in section D 
will be rated and ranked, using the following substantive rating 
criteria:
    (1) Operational Capability and Experience of the Applicant--(up to 
30 points). The applicant will be rated on its ability to develop and 
carry out the proposed program in a reasonable time and successful 
manner. In assigning points for this criterion, HUD will consider 
evidence demonstrating previous experience of the applicant, the 
participating members of consortia, other co-applicants and the key 
staff of these organizations in managing self-help housing and 
volunteer labor projects involving acquisition, construction, real 
estate financing, counseling and training or other relevant activities. 
The applicant must identify in its application the key staff who will 
be responsible for implementing the program and describe their 
qualifications. In addition, the applicant must provide, as evidence of 
its nonprofit status, a copy of a current Internal Revenue Service 
ruling that the applicant is exempt from taxation under section 
501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986. Where an 
IRS ruling is unavailable, an applicant may submit a certified copy of 
its approved charter, articles of incorporation or bylaws, 
demonstrating that the applicant is established as a nonprofit 
organization under state law. Where the applicant is a consortium, each 
participant in the consortium must be a nonprofit organization, but 
only the lead applicant should submit evidence of its nonprofit status. 
However, the lead applicant must maintain a copy of the above-described 
documentation for each participant in the consortium.
    (2) Financial Capability and Experience of the Applicant--(up to 20 
points). The applicant will be rated on its capability to handle 
financial resources and follow procedures for effective control. In 
assigning points for this criterion, HUD will consider evidence 
demonstrating previous experience of the applicant, the participating 
members of consortia, other co-applicants, and the key staff of these 
organizations, and the adequacy of existing financial control 
procedures. Applicants must include in their narrative statement a 
description of the financial control system, and provide supporting 
documentation, including a copy of their most recent audit.
    (3) Quality of Program Design--(up to 30 points). In assigning 
points for this criterion, HUD will consider the extent to which the 
proposed program is complete, feasible, innovative, geographically 
diverse, and likely to substantially fulfill the obligations of the 
applicant under the program within 24 months. Applicants must include 
in their narrative a program schedule and performance benchmarks for 
the initial 24 month period of the grant agreement (including the 
number of units to be developed and occupied) that constitute 
substantial fulfillment of programmatic obligations. The applicant must 
also present a budget which includes the sources and uses of all funds, 
including program income and accrued interest, and provide a 
description of the applicant's cash management system and proposed 
distribution of funds among participating organizations. The program 
design narrative must be detailed and describe other aspects of the 
program including, but not limited to: the administrative structure and 
program monitoring; the procedures to be followed in selecting 
properties, meeting environmental review requirements, and choosing 
homebuyers; the sweat-equity and community participation volunteer 
requirements; the size and design of the new dwellings, including 
features to allow entrance and passage through the house by people who 
use wheelchairs and to promote energy efficiency; the use of cost 
reducing innovations in construction technologies and land planning; 
the counseling and training components; the terms of sale to 
homebuyers; and the identification of participating lenders. This 
section of the application should contain sufficient information to 
determine that the applicant understands and intends to comply with 
other requirements of the Extension Act and the NOFA, such as the 
requirements that the homes developed will be sold to eligible 
homebuyers at prices below prevailing market prices, and that all local 
building and safety codes and standards will be complied with.
    (4) Leveraging of Public/Private Resources--(up to 20 points). In 
assigning points for this criterion, HUD will consider the extent and 
firmness of commitments by the public and private sector in support of 
the program, such as the donation of labor or materials, interest rate 
reductions or other financing subsidies, volunteer assistance, tax 
abatements, public works improvements, waivers of fees or taxes, 
expedited processing of permits and applications, removal of regulatory 
barriers to affordable housing, and supportive services (including 
counseling and training). Applicants should provide letters or other

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documentation evidencing the extent and firmness of these commitments.
    (5) Empowerment Zone/Enterprise Community Support--(up to 5 
points). In assigning points for this criterion, HUD will consider the 
extent to which the applicant's program design provides for the 
selection of sites for development located in Federally designated 
urban or rural Empowerment Zones, Enterprise Communities or 
Supplemental Empowerment Zones, as selected by the Secretaries of HUD 
and USDA.
    Rating of the ``applicant'' or the ``applicant's organization and 
staff'' will include any members of the national and regional 
organization or consortium participating in the application. 
Irrespective of final scores, HUD may make selections out of rank order 
to achieve a national geographic diversity. Additionally, HUD reserves 
the right to reduce the amount of funding for an application below that 
which was requested.

F. Ranking and Selection

    After assigning points under the selection criteria, HUD shall 
examine the rankings and, where it determines that applications falling 
below a certain point total are not suitable or not feasible for 
funding, it may establish a minimum number of points for applications 
to qualify to be selected for funding. HUD shall select for funding in 
rank order all fundable applications, if any. Once these selections 
have been made (within 6 months of the publication of this NOFA), HUD 
will provide excess funds remaining from the $15 million allocation to 
Habitat for Humanity International to be used as provided for under 
section 11 of the Extension Act.

III. Other Matters

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made for the program in accordance with HUD regulations at 24 
CFR part 50, which implements section 102(2)(C) of the National 
Environmental Policy Act of 1969. 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 the General Counsel, Department of 
Housing and Urban Development, room 10276, 451 Seventh Street, SW, 
Washington, DC 20410.

Federalism Executive Order

    The General Counsel, as the Designated Official for HUD under 
section 6(a) of Executive Order 12612, Federalism, has determined that 
the provisions in this NOFA are closely based on statutory requirements 
and impose no significant additional burdens on States or other public 
bodies. This NOFA does not affect the relationship between the Federal 
Government and the States and other public bodies or the distribution 
of power and responsibilities among various levels of government. 
Therefore, the policy is not subject to review under Executive Order 
12612.

Family Executive Order

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has also determined that some of the policies 
in this NOFA will have a potential significant impact on the formation, 
maintenance, and general well-being of the family. Achievement of 
homeownership by low-income families in the program can be expected to 
support family values, by helping families achieve security and 
independence; by enabling them to live in decent, safe and sanitary 
housing; and by giving them the skills and means to live independently 
in mainstream American society. Since the impact on the family is 
beneficial, no further review is necessary.

Section 102 of the HUD Reform Act--Accountability in the Provision of 
HUD Assistance

    HUD will ensure that documentation and other information regarding 
each application submitted pursuant to this NOFA are sufficient to 
indicate the basis upon which assistance was provided or denied. This 
material, including any letters of support, will be made available for 
public inspection for a five-year period beginning not less than 30 
days after the award of the assistance. Material will be made available 
in accordance with the Freedom of Information Act (5 U.S.C. 552) in 
HUD's implementing regulations at 24 CFR part 15. In addition, HUD will 
publish a Federal Register notice of all recipients awarded assistance 
under this NOFA. (See 24 CFR part 4, subpart A (61 FR 14448, 14449 
published April 1, 1996).)

Section 103 of the HUD Reform Act--Prohibition against Advance 
Information on Funding Decisions.

    HUD's regulation implementing section 103 of the Department of 
Housing and Urban Development's Reform Act of 1989, 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 
limited 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, subpart B (61 FR 14448, 14451, published April 1, 1996).
    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.

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) (``Byrd Amendment'') and the 
implementing regulations at 24 CFR part 87. These authorities prohibit 
recipients of federal contracts, grants, or loans from using 
appropriated funds for lobbying the Executive or Legislative branches 
of the federal government in connection with a specific contract, 
grant, or loan. The prohibition also covers the awarding of contracts, 
grants, cooperative agreements, or loans unless the recipient has made 
an acceptable certification regarding lobbying. Under 24 CFR part 87, 
applicants, recipients, and subrecipients of assistance exceeding 
$100,000 must certify that no federal funds have been or will be spent 
on lobbying activities in connection with the assistance.

    Dated: June 27, 1996.
Henry G. Cisneros,
Secretary.
[FR Doc. 96-17373 Filed 7-8-96; 8:45 am]
BILLING CODE 4210-29-P