[Federal Register Volume 61, Number 141 (Monday, July 22, 1996)]
[Notices]
[Pages 38024-38039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18543]



[[Page 38023]]


_______________________________________________________________________

Part VI





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Public and Indian Housing; Notice 
of Funding Availability (NOFA) for Public Housing Demolition, Site 
Revitalization, and Replacement Housing Grants (HOPE VI); Fiscal Year 
1996; Proposed Information Collection for Public Comment; Notice

  Federal Register / Vol. 61, No. 141 / Monday, July 22, 1996 / 
Notices  

[[Page 38024]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4076-N-01]


Office of the Assistant Secretary for Public and Indian Housing; 
Notice of Funding Availability (NOFA) for Public Housing Demolition, 
Site Revitalization, and Replacement Housing Grants (HOPE VI); Fiscal 
Year 1996; Notice of Proposed Information Collection for Public Comment

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

ACTION: Notice of funding availability (NOFA) for Fiscal Year (FY) 1996 
and request for comments on information collection requirements.

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

SUMMARY: This NOFA announces the availability of approximately $480 
million in funding for Public Housing Demolition, Site Revitalization, 
and Replacement Housing, hereafter referred to as the HOPE VI program, 
as provided in the Omnibus Consolidated Rescissions and Appropriations 
Act of 1996 (Pub. L. 104-134; approved April 26, 1996) (1996 
Appropriations Act).
    The 1996 Appropriations Act provided this funding as an 
evolutionary advance in the HOPE VI program, for the purpose of 
enabling the demolition of obsolete public housing developments or 
portions thereof, the revitalization (where appropriate) of sites 
(including remaining public housing units) on which such developments 
are located, replacement housing that will avoid or lessen 
concentrations of very low-income families, and Section 8 tenant-based 
assistance for the purpose of providing replacement housing and 
assisting tenants to be displaced by the demolition. The HOPE VI 
program will fund demolition, the capital costs of reconstruction, 
rehabilitation and other physical improvements, the provision of 
replacement housing, management improvements, resident self-sufficiency 
programs, and tenant-based assistance.
    This NOFA contains information on eligible applicants, program 
requirements, evaluation factors, and application submission 
requirements. This NOFA also solicits public comments on the 
information collection requirements contained herein.

DATES: Applications must be received at HUD Headquarters and the Field 
Office on or before 4 p.m. eastern time on September 10, 1996. The 
application deadline for the original application delivered to HUD 
Headquarters is firm as to date and hour. Public housing agencies 
(PHAs) should take this into account and submit applications as early 
as possible to avoid the risk brought about by unanticipated delays or 
delivery-related problems. In particular, PHAs intending to mail 
applications must provide sufficient time to permit delivery on or 
before the deadline date. Acceptance by a post office or private mailer 
does not constitute delivery. HUD will disqualify and return to the 
applicant any application that it receives after the deadline date and 
time.
    The deadline for comments on the information collection 
requirements is September 20, 1996.

ADDRESSES: An original of the completed application must be received at 
the HUD Headquarters Office, 451 Seventh Street, SW, Room 4138, 
Washington, DC 20410, Attention: Director, Office of Public Housing 
Investments. A copy of the completed application must also be received 
at the HUD Field Office. Applications may be hand-delivered or mailed. 
HUD will not accept facsimile (fax), COD, and postage due applications.
    Interested persons are invited to submit comments regarding the 
proposed information collection requirements in this NOFA. Comments 
must refer to the NOFA for Public Housing Demolition, Site 
Revitalization, and Replacement Housing Grants (HOPE VI); Fiscal Year 
1996 (FR 4076), and must be sent to the Reports Liaison Officer, Office 
of Public and Indian Housing, Department of Housing and Urban 
Development, Room 4255, 451 7th Street, SW, Washington, DC 20410.

FOR FURTHER INFORMATION CONTACT: Mr. Milan Ozdinec, Director, Office of 
Urban Revitalization, Department of Housing and Urban Development, 451 
Seventh Street, SW, Room 4144, Washington, DC 20410; telephone (202) 
401-8812 (this is not a toll free number). Hearing- or speech-impaired 
individuals may access this number via TTY by calling the Federal 
Information Relay Service at 1-800-877-TDDY, which is a toll-free 
number. The NOFA is also available on the HUD Home Page, at the World 
Wide Web at http:/www.hud.gov. HUD will also post frequently-asked 
questions and answers on the Home Page throughout the application 
preparation period.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Changes to, and Continuing Objectives of, the Hope VI Program
II. Substantive Description
    A. Authority
    B. Eligible Applicants
    C. Requirement of Demolition of Obsolete Units
    D. Fund Availability
    E. Total Development Costs
    F. Site and Neighborhood Standards
    G. Eligible Activities and Costs
III. Threshold Requirements
IV. Application Evaluation Factors
    A. Lessen Concentration of Low-Income Residents
    B. Need for Demolition, Revitalization, or Replacement
    C. Self-Sufficiency Programs
    D. Positive Incentives and Tougher Expectations
    E. Local and National Impact
    F. Community and Partnerships
    G. Need for Funding
    H. Program Quality, Feasibility, and Sustainability
    I. Capability
    J. Resolution of Litigation
V. Application Submission Requirements
    A. Statement of Objectives and Goals
    B. Existing Conditions
    C. Physical Description of Revitalization Plan
    D. Applications for New Construction
    E. Self-Sufficiency Component
    F. Operation and Management Principles
    G. Local and National Impact
    H. Capability
    I. Community and Partnerships
    J. Resources
    K. Program Financing and Sustainability
    L. Resolution of Litigation
    M. Required Certifications
    N. Demolition/Disposition Application
VI. Application Processing and Grant Administration
    A. Application Evaluation
    B. Reduction in Requested Grant Amount
    C. Corrections to Deficient Applications
    D. Notification of Funding Decisions
    E. Grant Agreement/ACC Amendment
VII. Applicability of Program Requirements
VIII. Applicability of Other Federal Requirements
IX. Other Matters

Changes to, and Continuing Objectives of, the HOPE VI Program

    Congress intended for the HOPE VI appropriation in the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996 (Pub. L. 104-
134; approved April 26, 1996) (the 1996 Appropriations Act) to continue 
Congressional efforts to deal with obsolete and severely distressed 
public housing, previously funded under the name ``Urban Revitalization 
Demonstration'' or ``URD,'' and popularly referred to as ``HOPE VI.'' 
The 1996 Appropriations Act made significant changes to HOPE VI by, 
among other things, expanding eligibility to all PHAs, requiring 
demolition as an element, requiring certain selection criteria, and 
eliminating various restrictive features of previous URD legislation.
    HUD includes these changes to the HOPE VI program in this NOFA. HUD

[[Page 38025]]

has also attempted to incorporate the lessons learned to date in HOPE 
VI so that program purposes will be achieved more rapidly and 
efficiently. HUD has retained the ``HOPE VI'' name in a period of 
legislative change in order to stress the underlying continuity of the 
program.
    The elements of public housing transformation that have proven key 
to HOPE VI, and that HUD hopes to achieve with these new awards 
include:
    A. Changing the physical shape of public housing. This includes 
tearing down the eyesores that are often identified with obsolete 
public housing and replacing them with homes that complement the 
surrounding neighborhoods and are attractive and marketable to the 
people they are intended to serve, meeting contemporary standards of 
modest comfort and liveability. HOPE VI funds should be used to create 
institutional and physical structures that serve the needs of public 
housing residents over the long term in a cost-effective manner.
    B. Establishing positive incentives for resident self-sufficiency 
and comprehensive services that empower residents. Programs should be 
outcome-based, directed at residents moving up and out of public 
housing.
    C. Enforcing tough expectations through strict occupancy and 
eviction rules, such as the ``One Strike and You're Out'' policy 
announced by President Clinton and supported in the Housing Opportunity 
Program Extension Act of 1996 (Pub. L. 104-120; approved March 28, 
1996). The goal of these rules is to improve the quality of life for 
residents, create safer, family-friendly environments conducive to 
learning, and make areas around public housing more attractive to 
businesses that can create well-paying jobs.
    D. Lessening concentrations of poverty by placing public housing in 
nonpoverty neighborhoods, or by promoting mixed-income communities 
where public housing once stood alone, thereby ending the social and 
economic isolation of public housing residents, increasing their access 
to quality municipal services such as schools, and increasing their 
access to job information and mentoring opportunities.
    E. Forging partnerships with other agencies, local governments, 
nonprofit organizations, and private businesses to leverage support and 
resources, whether financial or in-kind.

II. Substantive Description

A. Authority

    The funding made available under this NOFA is provided by the 
Omnibus Consolidated Rescissions and Appropriations Act of 1996 (Pub. 
L. 104-134; approved April 26, 1996) (the 1996 Appropriations Act).

B. Eligible Applicants

    PHAs that own or operate public housing units are eligible to 
apply. Indian Housing Authorities are not included as eligible entities 
for this program in the 1996 Appropriations Act, and are therefore not 
eligible to apply.

C. Requirement of Demolition of Obsolete Units

    Demolition is a required component of the HOPE VI program. Each PHA 
applicant must demolish at least one obsolete building at the targeted 
development. Applicants must attach a demolition/disposition 
application, in accordance with 24 CFR part 970, as Exhibit N of the 
HOPE VI application. If a demolition/disposition application for the 
targeted development has been previously submitted to HUD but has not 
yet been approved, the applicant must submit as Exhibit N a copy of the 
transmittal letter from the PHA to HUD. If a demolition/disposition 
application has been submitted and approved by HUD, but the demolition 
has not yet commenced, the applicant must submit as Exhibit N a copy of 
HUD's approval letter.
    HUD recognizes that the application preparation period may be 
insufficient to receive a response from residents to the offer to 
purchase required by 24 CFR 970.13. Therefore, HUD will give PHA 
applicants selected for funding 30 additional days from the date of 
preliminary selection to submit the residents' response to the offer. 
If there is no extant resident organization at the targeted development 
at the time of application, the applicant will be required to follow 
the procedures required by 24 CFR 970.13(b).
    Whether or not HUD approves the HOPE VI application, HUD will 
process all submitted demolition applications not previously approved. 
If HUD approves demolition, all consequences of an approval, such as 
those that affect receipt of modernization funds or operating subsidy, 
will apply to the subject units. HUD will provide notification of 
approval of the demolition application separately from the notification 
of selection for participation in the HOPE VI program.
    Obsolete units are those that, because of physical condition, 
location, or other factors, are unusable for housing purposes, and no 
reasonable program of substantial physical modifications is feasible to 
return the units to useful life.
    Physical indicators of obsolescence include structural deficiencies 
(e.g., settlement of earth below the building caused by inadequate 
structural fills, faulty structural design, or settlement of floors), 
substantial deterioration (e.g., severe termite damage or damage caused 
by extreme weather conditions), or other design or site problems (e.g., 
severe erosion or flooding).
    Neighborhood indicators of obsolescence include physical 
deterioration of the neighborhood; change from residential to 
industrial or commercial development; or environmental conditions, as 
determined by a HUD environmental review in accordance with 24 CFR part 
50, that jeopardize the suitability of the site or a portion of the 
site and its housing structures for residential use.

D. Fund Availability

    This NOFA announces the availability of approximately $480 million 
in funding for Public Housing Demolition, Site Revitalization, and 
Replacement Housing, hereafter referred to as the HOPE VI program, as 
provided in the Omnibus Consolidated Rescissions and Appropriations Act 
of 1996 (Pub. L. 104-134; approved April 26, 1996) (1996 Appropriations 
Act). The 1996 Appropriations Act provided $480 million in funding for 
the HOPE VI Program. In order to meet its obligations under the 
Gautreaux Consent Decree requiring HUD to provide comparable relief 
when HUD cannot provide section 8 New Construction assistance, HUD may 
provide funding for up to 350 public housing replacement units to the 
Chicago Housing Authority, provided that the funding will fulfill an 
unsatisfied obligation under the Consent Decree to provide comparable 
relief, and provided, that the Chicago Housing Authority submits one or 
more applications for such public housing replacement units in response 
to this NOFA. In order to receive the replacement public housing units, 
the application shall state that it is submitted pursuant to the 
preceding sentence and the application must satisfy all of the 
statutorily mandated requirements of the NOFA. The application for up 
to 350 public housing replacement units under the preceding two 
sentences shall not prohibit the Chicago Housing Authority from 
otherwise qualifying to apply and be

[[Page 38026]]

considered for HOPE VI funding in accordance with the terms of the 
NOFA.
    A public housing authority that has received a HOPE VI planning 
grant in a prior year and that wishes to request FY 1996 HOPE VI 
funding for the same development(s) addressed in the planning grant 
must submit an application under this NOFA.
    1. Categories of applications. HUD will accept applications in the 
following categories, subject to the limitations set forth in item 2 
below:
    a. PHAs that administer up to and including 2,500 public housing 
units may request up to and including $15 million for demolition and 
revitalization, replacement, and/or tenant-based assistance.
    b. PHAs that administer from 2,501 to 10,000 public housing units 
may request up to and including $30 million for demolition and 
revitalization, replacement, and/or tenant-based assistance.
    c. PHAs that administer 10,000 or more public housing units may 
request up to and including $40 million for demolition and 
revitalization, replacement, and/or tenant-based assistance.
    d. Each PHA may, in addition to its Category A, B, or C 
application(s), submit one application that requests up to $10 million 
for demolition and relocation costs associated with the requirements of 
the Uniform Relocation Act for one development, or portions thereof, 
for which it did not apply under a Category A, B, or C application.
    HUD will evaluate applications separately within the four 
categories. If PHAs submit multiple applications as permitted below, 
HUD will evaluate each application separately. HUD will determine 
actual award amounts pursuant to Section VI of this NOFA.
    2. Funding availability by category.
    a. HUD will allocate $400 million, plus any balance of the $480 
million which is not otherwise awarded under this NOFA, to Categories 
A-C collectively.
    b. HUD will allocate up to $76.784 million to Category D, to the 
extent of approvable applications.
    c. HUD will reserve $3.216 million for technical assistance.
    3. Limitations.
    a. Each Category A, B or D application must provide information and 
request funds for only one public housing development. Contiguous or 
immediately neighboring developments will be considered one development 
for all purposes in this NOFA. A PHA in Category C may submit one or 
two separate applications, as long as the total amount requested for 
both applications does not exceed $40 million. A PHA may also submit a 
separate application under Category D in addition to the application(s) 
submitted under Categories A, B, or C.
    b. There is no minimum or maximum number of housing units for which 
funds may be requested in a single application. However, a PHA may not 
request replacement funding for units for which the PHA has already 
been awarded prior replacement funding from HUD, either through the 
funding of hard units or tenant-based assistance.
    c. PHAs with previously-awarded MROP or modernization funding that 
they believe to be inadequate for the revitalization of a targeted 
development may apply for supplemental funding under this NOFA. HUD 
will evaluate these applications under the factors established by this 
NOFA. PHAs must demonstrate that funding already available to them is 
insufficient to assure a sustainable revitalization, and/or that the 
portion of a development that would be unaddressed by other funding in 
itself would qualify for a HOPE VI grant.
    d. PHAs with previous HOPE VI grants may not seek Fiscal Year (FY) 
1996 HOPE VI funding to supplement the previous grant in treating the 
units covered by the original grant. Such PHAs may, however, seek FY 
1996 HOPE VI funding to demolish and/or revitalize units in the same 
development that were not targeted units under the previous HOPE VI 
grant.
    4. Tenant-based assistance. HUD will publish a separate 
announcement for Section 8 tenant-based assistance in FY 1996, which 
will be principally available for relocation and replacement units. A 
PHA may apply for replacement and relocation funding simultaneously 
under this NOFA (whether for hard units or tenant-based assistance) and 
under the Section 8 announcement, and must do both if it seeks tenant-
based assistance under this NOFA. HUD will consider requests under this 
HOPE VI NOFA for tenant-based assistance only to the extent that the 
PHA applies for, but does not receive, replacement funds under the 
Section 8 program.
    5. Technical assistance. In accordance with the 1996 Appropriations 
Act, up to $3.216 million may be used for technical assistance to be 
provided directly or indirectly by grants, contracts, or cooperative 
agreements, including training and cost of necessary travel for 
participants in such training, by or to officials and employees of HUD 
and public housing agencies and to residents.
    6. Failure to proceed expeditiously. In the event that a PHA that 
has been selected to participate in the HOPE VI program does not 
proceed expeditiously, as determined by the Secretary, in accordance 
with its application, any Grant Agreement, and ACC Amendment, HUD shall 
withdraw any funding made available pursuant to this NOFA that has not 
been obligated by HUD, and distribute such funds to one or more other 
eligible PHAs, or to other entities capable of proceeding expeditiously 
in the same locality with the original program. In selecting PHAs for 
the redistribution of funds to one or more other eligible PHAs, HUD 
will select an applicant from the most recently conducted HOPE VI 
selection process.

E. Total Development Costs

    1. If the average per unit hard costs of rehabilitation of the 
housing remaining after partial demolition is below 62.5 percent of 
HUD's published total development cost limits (TDC), the development is 
not eligible for this program (except as a Category D application to be 
used only for demolition and relocation as permitted hereunder).
    2. If the average per unit hard costs of rehabilitating the 
remaining units falls between 62.5 and 90 percent of TDC, 
rehabilitation must be shown to be a viable, cost effective option by 
the application.
    3. The total development cost for units to be rehabilitated with 
HUD funds may not exceed 90 percent, and the total development cost for 
newly constructed units may not exceed 100 percent, of HUD's published 
cost guidelines except with HUD's prior written approval. HUD may grant 
such approval based on adequate justification set forth in the 
application that addresses additional costs for items such as 
remediation of lead-based paint, above average costs of infrastructure 
replacement, accessibility improvements, historic preservation, major 
reconfiguration of streets and sidewalks, and other significant 
improvements. Higher costs must be deemed reasonable and necessary to 
develop modest housing that incorporates efficient design, durability, 
marketability, sustainability, energy conservation, safety, economical 
maintenance, and healthy family life in a neighborhood environment.

F. Site and Neighborhood Standards

    Grantees under this program must ensure that their revitalization 
proposals and replacement housing plans for the targeted development(s) 
will avoid or

[[Page 38027]]

lessen concentrations of very low-income families by creating a mixed-
income community or by expanding assisted housing opportunities in 
nonpoor and nonminority neighborhoods. Replacement of public housing 
units for public housing units demolished may be built on the original 
public housing site, or in the same neighborhood, if the number of such 
replacement public housing units is significantly fewer than the number 
of public housing units demolished. This authority was affirmed by the 
passage of section 1002(a)(9) of Pub. L. 104-19 (approved July 27, 
1995) which explicitly authorizes HUD to approve the building of 
replacement public housing units under such circumstances. The 
Department notes that, in construing the phrase, ``significantly fewer 
units,'' it has chosen not to establish a quantitative standard. 
Instead, HUD will assess, on a case-by-case basis, the facts involved 
in each request. In addition, it will take into account the evolving 
interpretation of the phrase ``significantly fewer units'' as it 
develops in the course of HUD's separate rulemaking on site and 
neighborhood standards. Units that are not located at the targeted 
development and in the surrounding neighborhood will be subject to site 
and neighborhood standard rules stated in or made applicable by the 
Grant Agreement.

G. Eligible Activities and Costs

    Eligible expenditures are those eligible under sections 8 and 14 of 
the U.S. Housing Act of 1937 (1937 Act). PHAs must principally use 
assistance under this HOPE VI program for demolition and/or the 
physical improvement and/or replacement of public housing and for 
associated management improvements.
    1. Eligible activities.
    a. Total or partial demolition of buildings or disposition of 
property (subject to the requirements of section 18 of the 1937 Act).
    b. Capital costs of major reconstruction, rehabilitation, and other 
physical improvements (including energy retrofits) (subject to TDC 
limitations).
    c. Capital costs of replacement housing, including homeownership 
housing (subject to TDC limitations).
    d. Tenant-based assistance under section 8(b) of the 1937 Act used 
for replacement or relocation housing (to the extent permitted in 
accordance with section II.D.3 of this NOFA).
    e. Management improvements for the reconstructed development.
    f. Planning and technical assistance.
    g. Self-sufficiency programs, including Campus of Learners 
programs, as described in Section V.E of this NOFA.
    2. Eligible costs.
    a. Capital costs may include related administrative and temporary 
relocation costs necessary for reconstruction, rehabilitation, 
demolition, or acquisition of land for replacement housing.
    b. Administrative costs may include the annual premium of lead-
based paint insurance incident to approved revitalization work while 
work is in progress.
    c. Physical improvement costs may include those necessary to 
provide facilities primarily intended to facilitate the delivery of 
self-sufficiency programs and economic development opportunities for 
residents of the targeted development, including technologically 
outfitting units or buildings for the administration of a Campus of 
Learners. Physical improvement costs for the creation of a Campus of 
Learners will count towards the total development cost of a 
development.
    3. Allocation of costs.
    a. PHAs must use at least 80 percent of the funding awarded in each 
HOPE VI grant for any combination of the activities and related 
expenses listed in paragraphs (a) through (f) of section 1, above.
    b. PHAs may use not more than 20 percent of the funding awarded in 
each HOPE VI grant for self-sufficiency programs and related 
administrative expenses (paragraph (g) of section 1, above), but 
excluding costs described in paragraph (c) of section 2).

III. Threshold Requirements

A. Noncurable Threshold Requirement

    The application must provide for demolition of at least one 
obsolete building at the targeted development as ``obsolete'' is 
defined in section II.C of this NOFA. HUD will determine whether the 
housing is obsolete based on information provided in Exhibit B 
(Existing Conditions) of the application. Applicants will have no 
opportunity to provide or supplement the information required by 
Exhibit B after the deadline date listed in this NOFA (except to the 
extent that correction may be made to the demolition application as 
provided in section III.B.3 below).

B. Curable Technical Deficiencies

    The requirements of this NOFA must be satisfied in order for HUD to 
select an application for funding. If applicants do not satisfy the 
technical requirements below, after the process for the correction of 
deficiencies described in Section VI.C of this NOFA has been carried 
out, HUD cannot select the applicants for participation.
    1. The applicants must include evidence in Exhibit I.1.b.(2) of the 
application (Community and Partnerships) that at least one public 
meeting has been held to notify residents and community members of the 
proposed activities described in the application.
    2. The applicants must include all certifications and submissions 
required as Exhibit M of the application.
    3. The applicants must include a demolition application, as 
described in Section II.C of this NOFA, as Exhibit N of the 
application.
    4. Applications with proposals that include new construction must 
include Exhibit D of the application.

IV. Application Evaluation Factors

    Section IV of this NOFA describes the factors that HUD will use to 
review applications. Each application will be evaluated based upon its 
merits determined pursuant to the factors set forth below. Applications 
will be selected for award in accordance with Section VI. HUD will 
consider the entire application, as a whole, when evaluating 
applications. Applicants must submit the information described in 
Section V of this NOFA; applicants must not respond directly to the 
factors in Section IV. Instances in which specific submissions 
correspond to specific evaluation factors are noted in both Sections IV 
and V of this NOFA.

A. Lessen Concentration of Low-Income Residents [20 Points]

    HUD will evaluate only Category A, B, and C applications for this 
factor. HUD will consider the entire application, and particularly 
Exhibit B.5.d (degree of concentration of low-income residents), 
Exhibits C.3 and C.4 (description of replacement units), and Exhibit 
C.5 (resident counseling) when evaluating this factor.
    HUD will consider the extent to which the applicant proposes to 
place public housing in nonpoverty neighborhoods or promote mixed-
income communities where public housing once stood alone, thereby 
ending the social and economic isolation of public housing residents, 
increasing their access to quality municipal services and increasing 
their access to job information and mentoring opportunities.
    HUD will also consider the degree to which the PHA intends to 
provide counseling itself, or work with a

[[Page 38028]]

nonprofit organization to provide counseling, and other assistance to 
help families receiving tenant-based assistance to move to nonpoverty 
neighborhoods.

B. Need for Demolition, Revitalization, or Replacement [25 Points]

    HUD will consider the entire application, and particularly Exhibit 
B (Existing Conditions) when evaluating this factor for all 
applications. For Category A, B, and C applications, HUD will also 
consider information in Exhibit C.9 to determine need for revitalized/
replacement units.
    HUD will consider the physical, neighborhood, and demographic 
factors that indicate that the targeted development, or portion 
thereof, is obsolete and in need of demolition, revitalization, or 
replacement; the effect that the obsolete structure has on the 
surrounding neighborhood; and, for applications in Categories A, B, and 
C only, the need and market for the revitalized and/or replacement 
units of the type and size proposed.

C. Self-Sufficiency Programs (Including Campus of Learners) [20 Points; 
10 Point COL Bonus]

    HUD will evaluate only Category A, B, and C applications for this 
factor. HUD will consider the entire application, and particularly 
Exhibit E (Self-Sufficiency Component), and Exhibit A (Statement of 
Objectives and Goals) when evaluating this factor. Exhibit C.7 will be 
used to evaluate the physical plan for a Campus of Learners.
    A self-sufficiency program component is required for all Category 
A, B, and C applications. Residents of public housing communities can 
succeed in becoming self-reliant if they receive assistance in 
obtaining comprehensive training, education, and support services, and 
if they receive help finding gainful employment. This program should 
focus on offering education and job training that is applicable and 
appropriate for addressing the needs of residents. Each effort should 
be linked to the educational and employment needs of youth and adult 
residents as well as the potential job and contracting opportunities 
that may be available in the community and the nation's rapidly 
changing economy.
    HUD will consider the overall quality of the supportive services 
plan; the integration of the plan with the development process; the 
appropriateness of scale, type, and delivery of the plan to meet the 
identified needs of residents; the degree of resident training, 
employment, and contracting planned; the degree to which service 
providers have made commitments to provide services or funding; the 
experience of proposed service providers; the extent of coordination 
with existing service providers and programs; the extent to which the 
objectives of the supportive service plan are results-oriented, with 
measurable goals and outcomes; and the degree to which the program is 
sustainable and is likely to enable residents to gain skills that 
assist them in becoming self-supporting.
    Category A, B, and C applicants are encouraged to implement a 
``Campus of Learners'' (COL), an intensive residential learning model, 
in connection with a self-sufficiency component in their development. 
At a COL, the focus is to provide educational and employment 
opportunities for residents living ``on campus,'' or enrolled and 
attending an on-site or a certified self-improvement program. Such 
programs will include computer technology and training, job training 
initiatives, educational opportunities at local schools and 
institutions of higher education, and resident self-sufficiency 
programs. As a condition of living on campus or being enrolled, 
residents will execute an education and employment pledge or a similar 
agreement to fulfill specific obligations for program completion or 
participation in good standing. Any authority choosing to implement a 
COL program must partner with local schools, institutions of higher 
learning in support of resident self-sufficiency activities, 
telecommunications firms, foundations, businesses, religious 
organizations, and/or the private sector as part of this initiative.
    Ten points are available for this factor only as a bonus to 
applications that propose to convert all or a portion of the targeted 
development into a COL. All ten bonus points will be awarded to 
applications which are substantially identical to proposals which 
resulted in a previous designation by HUD as a COL. Up to ten points 
may be awarded to applications depending on the degree to which the 
proposals include the COL elements as described in this NOFA. More 
information on the COL is contained in the Campus of Learners 
Designation Kit, excerpts of which are included in the HOPE VI 
Application Kit. Information on COL is also available on the World Wide 
Web at http:\\www.hud.gov\nnw\campus.html.

D. Positive Incentives and Tougher Expectations [15 Points]

    HUD will evaluate only Category A, B, and C applications for this 
factor. HUD will consider the entire application, and particularly 
Exhibit F (Operation and Management Principles).
    HUD will consider the extent to which proposed operating and 
management principles will improve upon current management, reward work 
and promote family stability, provide greater resident security, 
promote economic and demographic diversity, promote economic 
integration and social mobility, and encourage self-sufficiency.

E. Local and National Impact [25 Points]

    HUD will evaluate all applications for this factor. HUD will 
consider the entire application, and particularly Exhibit B (Existing 
Conditions), Exhibit C (Physical Description of the Revitalization 
Plan), and Exhibit G (Local and National Impact).
    To determine local impact, HUD will consider the relative magnitude 
of change that the proposed activities will have on the targeted 
development and the affected public housing community and 
neighborhoods. HUD will consider the scale of the proposed demolition 
and revitalization in relationship to its impact on the community as a 
whole, not the magnitude of the program in relation to other 
applications. For applications that propose revitalization, HUD will 
consider the impact that proposed changes in management and service 
delivery will have on the community.
    To determine national impact, HUD will consider the degree to which 
a program of revitalization, particularly the physical transformation, 
self-sufficiency program, and operation/management components of the 
project, could be used as a model for other communities. HUD will also 
assess the potential of the proposed demolition and revitalization to 
improve the health of a PHA that has been deemed ``troubled'' under 
section 6(j) of the 1937 Act. HUD will give particular consideration to 
revitalization plans that are essential to the removal of a PHA from 
judicial receivership. HUD will also consider the extent to which the 
targeted development has received negative national attention, 
including press coverage other than in local press, as indicative of 
the problems in public housing, and how the demolition and 
revitalization effort would effectively communicate the transformation 
of public housing.

F. Community and Partnerships [20 Points; 10 Point EZ/EC Bonus]

    HUD will evaluate all applications for this factor, except with 
respect to Partnerships for Category D

[[Page 38029]]

applications, as provided below. HUD will consider the entire 
application, and particularly Exhibit I (Community and Partnerships).
    1. Resident support/involvement. HUD encourages full and meaningful 
involvement of residents and members of the communities to be affected 
by the proposed activities. HUD will consider the extent of resident 
consultation in shaping the application (including the designation of 
the development that is the subject of the application), the level of 
resident support for the proposed activities, the continued involvement 
and participation by the affected public housing residents, and the 
proposed involvement of residents in management of revitalized or 
replacement units.
    2. Community support/involvement. HUD will consider the extent of 
involvement by local public, private, and nonprofit entities and 
community representatives in the preparation of the application, the 
level of enthusiasm for the plan in the larger community, and the 
extent to which the activities proposed in the application are 
coordinated with other revitalization plans within the community. Up to 
ten bonus points will be given to revitalization plans that are 
coordinated with and are supportive of the Strategic Plan for a 
Federally designated Empowerment Zone or Enterprise Community.
    3. Partnerships (for Category A, B and C applications only). PHAs 
are encouraged to enter into partnership arrangements for the purpose 
of developing housing that fits into the community and is seen as an 
integral part of it. Partnerships would be made with organizations that 
include private nonprofit or for-profit entities with experience in the 
development and/or management of low- and moderate-income housing, 
those that are skilled in the delivery of services to residents of 
public housing, educational institutions, foundations, and other 
organizations.
    HUD will consider the extent to which applications propose to 
develop partnerships to facilitate revitalization, the potential of the 
proposed partnerships to provide attractive housing and economic 
opportunities for public housing residents and make public housing a 
catalyst for neighborhood revitalization, and the strength of 
commitments from potential partners to participate in the 
revitalization plan. HUD will also consider the experience and 
capability of proposed partners.

G. Need for Funding [20 Points]

    For all applications, HUD will consider the extent to which the 
applicant could undertake the proposed activities without HOPE VI 
assistance. HUD will consider the entire application and particularly 
the information provided in Exhibit K.1.b (Need for HOPE VI Funds) when 
evaluating this factor.

H. Program Quality, Feasibility, and Sustainability [25 Points]

    HUD will evaluate Category A, B and C applications only for this 
factor. HUD will consider the entire application when determining the 
comprehensiveness and effectiveness of the proposed demolition and 
revitalization or replacement housing as measured by the objectives and 
goals of the proposed plan; whether proposed program activities meet 
the objectives of the HOPE VI program; whether the proposed program 
activities will be accomplished within a reasonable time and expense; 
whether the proposed activities are coherent, comprehensive, and 
integrated; whether the proposed activities are sustainable; and the 
potential success of the proposed program.

I. Capability [15 Points]

    For Category A, B, and C applications only, HUD will consider the 
ability and capacity of a PHA to carry out the revitalization and 
replacement project it has proposed to do under this program. HUD will 
consider the entire application and particularly information provided 
in Exhibit H when evaluating this factor.

J. Resolution of Litigation [20 Bonus Points]

    An applicant in any Category whose submission demonstrates that the 
proposed revitalization plan will materially assist the applicant and 
HUD in meeting their obligations under a court ordered Consent Decree 
in connection with civil rights litigation will be provided with 20 
additional bonus points.

V. Application Submission Requirements

    This section of the NOFA describes all of the items to be included 
in an application, and the categories of applications for which each 
item is applicable. All applications, regardless of category, must 
include all information requested, unless otherwise specifically noted. 
If a PHA chooses to submit more than one application, it may duplicate 
common elements of all applications, such as certifications, as long as 
one of the applications contains certifications with original 
signatures, and the copies indicate which application contains the 
original document.
    HUD reviewers will use the information provided in the application 
to evaluate each application in accordance with the evaluation factors 
described in Section IV of this NOFA. Notwithstanding that certain 
application submission requirement sections of the application 
correspond to specific evaluation factors, reviewers will consider and 
evaluate the application as a whole during the evaluation process.
    Each application submitted by a PHA for a Category A, B, or C grant 
must consist of Exhibits A-N that correspond directly to sections A-N 
listed below. Each application for a Category D grant must consist of 
Exhibits A, B, G, I, K, M, and N. For ease of review, each application 
must include a table of contents directing the reader to the page 
number upon which each exhibit begins. If an exhibit is not applicable 
to a Category D grant, applicants must indicate this in the table of 
contents. The use of tabs to separate each exhibit will greatly 
facilitate review and expedite grant awards. If an exhibit is not 
applicable for any other reason, under the tab for such exhibit 
applicants must provide an explanation of its inapplicability to the 
application. Adherence to page limits is mandatory; in reviewing the 
applications, HUD will not consider any information on pages that 
exceed the limits.

A. Statement of Objectives and Goals

    All applicants must provide a narrative Exhibit A, not to exceed 
two pages, that describes the objectives and goals of the proposed 
program and describes the projected goals for all activities proposed, 
including the self-sufficiency component, if applicable. The narrative 
should describe how program activities respond to the program 
objectives set forth in Section I of this NOFA. Goals should be 
results-oriented, realistic, and measurable. HUD will use information 
from Exhibit A primarily to evaluate the Program Quality, Feasibility, 
and Sustainability (IV.H) and Self-Sufficiency Programs (IV.C) factors.

B. Existing Conditions

    All applicants must provide an Exhibit B that responds to all items 
in this section. HUD will use information from Exhibit B primarily to 
evaluate the Need for Demolition, Revitalization, or Replacement 
(IV.B), Lessen Concentrations of Low-Income

[[Page 38030]]

Residents (IV.A), Local and National Impact (IV.E), and Program 
Quality, Feasibility and Sustainability (IV.H) factors. HUD will use 
items 3 and 4, below, to determine whether the application meets the 
threshold requirement for obsolete housing (III.A).
    The applicant must provide the following information in a 
narrative, not to exceed eight pages (plus the map required under 1.d) 
below:
    1.Description of current development.
    a. An identification of the targeted development.
    b. The total number of current units, by unit size.
    c. The number and location of vacant units.
    d. In addition to the narrative, provide a one page map of the 
current site.
    2. Proposed demolition/disposition. Applicants must briefly 
describe the extent of the proposed demolition/disposition, and 
identify the units to be demolished. (Also attach a demolition/
disposition application as Exhibit N of the application, as described 
in Section II.C of this NOFA.)
    3. Physical indicators of obsolescence.
    a. The cost of rehabilitation/reconstruction per unit as a 
percentage of TDC.
    b. Structural deficiencies (e.g., settlement of earth below the 
building caused by inadequate structural fills, faulty structural 
design, or settlement of floors).
    c. Substantial deterioration (e.g., severe termite damage or damage 
caused by extreme weather conditions) or other design or site problems 
(e.g., severe erosion or flooding).
    d. Design and site deficiencies (e.g., high density or indefensible 
space).
    e. Major system deficiencies (e.g., peeling and chipping lead-based 
paint, lack of reliable and reasonably efficient heat and hot water, 
major structural deficiencies, electrical system not satisfying code 
requirements, poor site conditions, leaking roof, deteriorated laterals 
and sewers, or high number of plumbing leaks).
    4. Neighborhood indicators of obsolescence.
    a. Physical deterioration of the neighborhood.
    b. Change of the neighborhood from residential to industrial or 
commercial development.
    c. Environmental conditions that may jeopardize the suitability of 
the site or a portion of the site and its housing structures for 
residential use. These conditions may be determined by either a HUD-
related environmental review, in accordance with 24 CFR part 50 or part 
58, which was previously conducted in connection with earlier 
assistance, or another assessment of conditions that, in the opinion of 
the applicant, may jeopardize suitability of the site.
    d. Deficiencies in the neighborhood that revitalization could 
ameliorate.
    5. Demographic indicators of distress. For the following elements, 
applicants must provide the most current information that relates as 
specifically as possible to the targeted site. If site information is 
not available, applicants must indicate whether information provided 
pertains to the development, neighborhood, city, census tract, or other 
demographic area.
    a. Average income as a percentage of area median.
    b. Statistical information on the incidence of crime, including the 
following: frequency of criminal acts of various types (including drug-
related activities), number of lease terminations or evictions for 
criminal activity, average number of police calls to the development 
per month, and the average monthly incidence of vandalism to PHA 
property in dollars.
    c. Vacancy rate.
    d. Degree of concentration of very low-income persons in the 
neighborhood.
    6. Effect on the neighborhood. Applicants must describe how the 
physical, neighborhood, and demographic conditions of the obsolete 
development, or portions thereof, affect the residents of the 
surrounding neighborhood, the greater community, and city.

C. Physical Description of Revitalization Plan

    Category A, B, and C applicants only must provide a narrative 
Exhibit C, not to exceed eight pages. HUD will use information from 
Exhibit C primarily to evaluate the Program Quality, Feasibility and 
Sustainability (IV.H), Lessen Concentration of Low-Income Residents 
(IV.A), and Local and National Impact (IV.E) factors. HUD will use 
information in Exhibit C.9 to evaluate the Need for Demolition, 
Revitalization, or Replacement (IV.B) factor, and information in 
Exhibit C.7 to evaluate the Self-Sufficiency (IV.C) factor. Applicants 
must describe the extent of the physical revitalization and/or 
replacement activities proposed, including the following, as 
appropriate:
    1. The changes in the sizes and shapes of units and other changes 
in the use of interior space, including any reduction in the number of 
units due to reconfiguration or changes in the utilization of interior 
space.
    2. Any community space alterations, improvements, or additions.
    3. Any proposed on-site replacement units for public housing units 
proposed to be demolished, including number, type, and size of units, 
with a description of how such on-site replacement housing will avoid 
or lessen concentrations of very low-income families.
    4. Any proposed off-site replacement units, including the mix of 
building types, number of dwelling units, and unit sizes of replacement 
housing. Any applicant proposing to create off-site replacement units 
MUST use census data to describe how such housing will avoid or lessen 
concentrations of very low-income families.
    5. The number of any Section 8 certificates to be used for 
replacement or relocation housing, and whether those certificates are 
existing or are requested in this application and under the Section 8 
notice as required by section II.D.3 of this NOFA. A description of 
counselling or other assistance that will be provided to residents 
receiving tenant-based assistance as relocation or replacement housing 
to enable them to move to areas of lower poverty if they so choose.
    6. Any site acquisitions necessary or proposed, the purpose of the 
acquisition, and how that acquisition is proposed to be financed.
    7. An explanation, if applicable, of how the proposed 
revitalization will resemble, or be used as, an education campus in the 
implementation of a Campus of Learners.
    8. If available, provide a postrevitalization site map.
    9. A description of the need and market for the revitalized or 
replacement units of the type and size proposed. Cite (but do not 
submit) the city's Consolidated Plan, other local plans, market 
studies, or other sources of information on housing supply. Identify 
other assisted housing, existing and proposed (including housing funded 
but not completed).

Applications for New Construction

    In accordance with section 6(h) of the 1937 Act, the PHA may engage 
in new construction only if the PHA demonstrates to the satisfaction of 
the Secretary that the cost of new construction in the neighborhood 
where the PHA determines the housing is needed is less than the cost of 
acquisition or acquisition and rehabilitation in such neighborhood. 
Therefore, every application that includes new construction must be 
accompanied by a narrative Exhibit D that contains either the 
information described in paragraphs 1 and 3 of this section, below, or 
the information

[[Page 38031]]

described in paragraphs 2 and 3 of this section, below. The narrative, 
certification and statement, as applicable, should not exceed three 
pages.
    1. A PHA comparison of the costs of new construction (in the 
neighborhood where the PHA proposes to construct the housing) and the 
costs of acquisition of existing housing or acquisition and 
rehabilitation in the same neighborhood (including estimated costs of 
lead-based paint testing and abatement).
    2. A PHA certification, accompanied by supporting documentation, 
that there is insufficient existing housing in the neighborhood to 
develop housing through acquisition of existing housing or acquisition 
and rehabilitation.
    3. A statement that:
    a. Although the application is for new construction, the PHA will 
accept acquisition of existing housing or acquisition and 
rehabilitation, if HUD determines the PHA cost comparison or 
certification of insufficient housing does not support approval of new 
construction; or
    b. The application is for new construction only. (In any such case, 
if HUD cannot approve new construction under section 6(h) of the 1937 
Act, HUD will reject the application.)

E. Self-Sufficiency Component

    Category A, B, and C applicants only must provide a narrative 
Exhibit E, not to exceed 10 pages. HUD will use information from 
Exhibit E primarily to evaluate the Program Quality, Feasibility and 
Sustainability (IV.H) and Self-Sufficiency Programs (IV.C) factors.
    A program of self-sufficiency may include, but is not limited to: 
(a) Child care, of a type that provides sufficient hours of operation 
and serves appropriate ages as needed to facilitate parental access to 
education and job opportunities; (b) Employment training and 
counseling, such as job training, preparation and counseling, job 
development and placement, and follow-up assistance after job 
placement; (c) Computer skills training; (d) Education, including 
remedial education, literacy training, completion of secondary or 
postsecondary education, assistance in the attainment of certificates 
of high school equivalency, and the integration of modern computer 
technology into the education program; (e) Transportation as necessary 
to enable any participating family member to receive available services 
or to commute to his or her place of employment; (f) Partnerships with 
local businesses for job placement for residents who complete adult 
education and job training programs; (g) Substance/alcohol abuse 
treatment and counseling; (h) Health care services; and (i) Any other 
services and resources, including case management, that are determined 
to be appropriate in assisting eligible residents.
    1. Provide a brief description of each service that is expected to 
be made available for residents. For each service, to the extent that 
providers are identified, indicate the name of the service provider and 
the experience of that provider. If providers are not identified, 
describe the process the PHA will use to identify providers. Describe 
the location of the service provision, the timing of the service 
provision and how it relates to the development schedule, how long the 
service will be provided to residents, and whether the service will be 
available to residents that will remain on site, are moved off site, 
and/or are in relocation sites.
    2. Describe the analysis and any consultation with residents that 
the PHA employed to determine the needs upon which the self-sufficiency 
program was based and that will continue to be used to reevaluate 
service needs in the future.
    3. Describe how residents will be selected to participate in 
services.
    4. In addition to the narrative, attach letters from service 
providers that commit to provide services to residents.
    5. Describe plans to provide on-the-job training, employment, and 
contracting opportunities to residents during implementation of the 
revitalization plan.
    6. Indicate how the goals projected for the self-sufficiency 
component, as described in Exhibit A (Statement of Objectives and 
Goals), will be met through the self-sufficiency program.
    7. Describe the Campus of Learners (COL) program if one is 
proposed. Explain how supportive services under the program will be 
provided at a level higher than currently provided, how the program 
will be sustainable, and how it will enable residents to gain skills 
and become self-supporting. The description should contain each of the 
following elements:
    a. An identifiable physical campus, as demonstrated in the proposed 
physical plan (section V.C.9 above), that integrates local schools, 
parks, and, to the extent possible, institutions of higher learning.
    b. A comprehensive education program that includes programs for 
young children, after-school learning sessions for school-age 
residents, life skills training for the elderly, and job readiness and 
training programs for other adult residents.
    c. Collaborations with educational institutions and organizations, 
including the local school system, local colleges, universities, and 
other institutions of higher learning, in order to harness the 
resources of these establishments through specialized education and 
technology classes.
    d. Access to technology by wiring and equipping every unit in the 
COL site, and computer labs on campus for computer classes, language 
skills, life skills training, and GED classes.
    e. A contract or pledge executed by residents that will state a 
resident's agreement that living on the ``campus'' is incidental to and 
reliant upon participation in the learning program, and residents 
enrolled in the program must fulfill specific obligations for programs 
completion.

F. Operation and Management Principles

    Category A, B, and C applicants only must provide a narrative 
Exhibit F, not to exceed five pages, that describes preliminary post-
redevelopment operation and management policies for the targeted 
development. HUD will use information from Exhibit F primarily to 
evaluate the Positive Incentives and Tougher Expectations (IV.D) and 
Program Quality, Feasibility and Sustainability (IV.H) factors.
    For application purposes, the PHA should assume that Congress will 
make permanent the program modifications made by the 1996 
Appropriations Act. However, PHAs will be required, if selected, to 
conform their proposals to current law. HUD intends to issue additional 
guidance on any changes in law and policy.
    Applicants must describe the manner and extent to which the 
proposed operation and management principles will:
    1. Achieve efficient and effective management and maintenance 
through private management or other management improvements.
    2. Reward work and promote family stability through positive 
incentives such as income disregards and ceiling rents. Note that PHAs 
may establish ceiling rents (but must require a $25 minimum rent) and 
may institute earned income disregards for FY 1996.
    3. Provide greater security by instituting tough screening 
requirements and enforcing tough lease and eviction provisions, 
including the ``One Strike and You're Out'' policy.
    4. Promote economic and demographic diversity through a system of 
local preferences. Note that Congress has suspended all Federal 
preferences for FY 1996.

[[Page 38032]]

    5. Promote economic integration and social mobility for public 
housing residents by providing housing for people with a broad range of 
incomes in such a way that public and market rate units are 
indistinguishable.
    6. Encourage self-sufficiency by utilizing lease requirements that 
promote community service and/or transition from public housing.

G. Local and National Impact

    All applicants must provide a narrative Exhibit G, not to exceed 
six pages. HUD will use information from Exhibit G primarily to 
evaluate the Local and National Impact (IV.E) and Program Quality, 
Feasibility and Sustainability (IV.H) factors.
    1. Local impact.
    a. All applicants must: Describe the extent to which the physical 
changes resulting from the proposed demolition and revitalization or 
replacement will significantly address the indicators of obsolescence 
and distress described in Exhibit B (Existing Conditions).
    b. Category A, B, and C applicants only must: Explain how the plan 
for the provision of services described in Exhibit E and the plan for 
management of the development and/or any replacement units after 
revitalization described in Exhibit F will contribute to the positive 
change for residents of the development and the surrounding community.
    2. National impact.
    (1) Categories A, B, and C applicants only must, if applicable, 
discuss the potential for the program of revitalization, or some aspect 
of it, to become a model for other communities.
    a. All applicants must, if applicable: (1) Describe the extent to 
which the targeted development has been perceived as an example of the 
problems of public housing and how the proposed revitalization would 
effectively communicate the transformation of public housing. Describe 
the national impact of the current obsolete housing as evidenced by any 
national attention, including press coverage received prior to the date 
of this NOFA. Submit copies, if applicable, of negative coverage of the 
targeted development in print media (other than local media) that 
predates this NOFA.
    (2) If the applicant PHA is on the national troubled housing list, 
describe the potential of the proposed demolition and any 
reconstruction or replacement housing to remove the PHA from the list 
and (if applicable) remove the PHA from judicial receivership.

H. Capability

    Category A, B, and C applicants only must provide a narrative 
Exhibit H. HUD will use information from Exhibit H to evaluate all of 
the factors and particularly the Capability (IV.I) factor. Applicants 
must provide a narrative, not to exceed three pages, that includes the 
following information:
    1. Describe evidence of progress made under any previously-awarded 
HOPE VI, development, and/or modernization funding.
    2. Provide the PHA's overall and modernization scores under the 
Public Housing Management Assessment Program (PHMAP), 24 CFR part 901, 
most recently established by HUD.
    3. Provide a brief summary of the PHA's most recent fiscal audit 
and any outstanding HUD monitoring findings.
    4. Describe factors that will ensure that implementation of the 
program can begin quickly if the application is approved for an award.
    5. Describe any prior experience in financing, leveraging, and 
partnership activities.
    6. If a receiver or alternate development team is in place, 
describe the extent of its authority, the areas over which it will have 
control, and its experience and track record in managing troubled PHAs 
and/or in accomplishing large-scale development in a timely, cost-
effective, and successful manner.
    7. Provide an organizational chart that indicates the proposed 
staffing of the revitalization program. Describe the qualifications of 
the PHA's key staff who will be responsible for the oversight of the 
program.

I. Community and Partnerships

    All applicants must provide a narrative Exhibit I, not to exceed 
nine pages, plus any pertinent letters as provided below. HUD will use 
information from Exhibit I primarily to evaluate the Community and 
Partnerships (IV.F) and Program Quality, Feasibility and Sustainability 
factors (IV.H). HUD will use information in Exhibit I.1.b.ii below to 
determine whether the resident consultation requirement of section 
III.B.1 has been met. Exhibit I should contain the following 
information:
    1. Resident support/involvement.
    a. Category A, B, and C applicants only:
    (1) Describe the level of participation and/or consultation with 
residents throughout the PHA in the preparation of the application.
    (2) Explain how the PHA would continue the involvement and 
participation by the affected public housing residents.
    (3) Describe any planned roles for residents in the management and 
operation of the revitalized and replacement units and the developments 
of which they are a part.
    b. All applicants must attach the following:
    (1) Any letters from residents in support of or opposition to the 
demolition, any proposed revitalization or self-sufficiency programs, 
or programs of positive incentives and tougher expectations received.
    (2) Evidence that at least one public meeting has been held to 
notify residents and community members of the proposed activities 
described in this application. The meeting may be a regularly scheduled 
PHA board meeting. Evidence must include the notice announcing the 
meeting, how the notice was distributed, and a copy of the sign-in 
sheet. An application must contain such evidence that a public meeting 
took place in order to be selected for participation.
    2. Community support/involvement. All applicants must respond to 
this item.
    a. Describe the level of participation and/or consultation in the 
preparation of the application by community organizations and 
institutions, agencies of local and State government, businesses, 
nonprofit corporations, social service providers, philanthropic 
organizations, educational institutions, and other entities. Discuss 
how the PHA would continue to involve these entities and groups if the 
application is selected.
    b. Provide any letters, resolutions, or other available 
documentation in support of, or objection to, the physical as well as 
the self-sufficiency component of the proposed demolition, and the 
revitalization and/or replacement of units. Include any letters that 
commit resources, both monetary and in-kind, from community 
organizations.
    c. Detail other revitalization activities or land use plans 
underway or planned in the neighborhood(s) that the revitalization plan 
would affect. Provide reference to and maps indicating the location of 
activities and resources identified in the city's or State's 
Consolidated Plan or Federally designated Empowerment Zone or 
Enterprise Community Strategy (if applicable) in relationship to the 
development. Describe the current or projected impacts of these 
community-wide activities on residents of the development(s). Describe 
how the PHA plans to coordinate with these efforts.

[[Page 38033]]

    d. If the targeted development is within a Federally designated 
Empowerment Zone or Enterprise Community, provide evidence that the PHA 
has an established relationship with the EZ/EC administrative body that 
was established before the publication of this NOFA, and that the 
proposed revitalization activity is consistent with and supportive of 
the Strategic Plan for the Federally designated Empowerment Zone or 
Enterprise Community. Applicants that provide a letter of endorsement 
from the EZ or EC governing body will receive special consideration.
    e. If the revitalization plan calls for changes in streets or other 
infrastructure, provide a letter of commitment from the unit of general 
local government to provide the resources necessary to carry out those 
activities.
    3. Partnerships. Category A, B, and C applicants only must respond 
to this section.
    a. Describe plans to accomplish the revitalization through a 
proposed partnership with one or more entities, or through contractual 
or subgrant relationships (such as a program management or alternative 
administrator agreement or supportive service subgrantees). Include all 
relevant information about each proposed entity, including the nature 
of the organization, qualifications, the respective responsibilities 
and obligations of each party, and the proposed financial relationship, 
i.e., the basis and source of compensation to nonapplicant parties.
    b. Describe how the use of the partnership will enhance the PHA's 
ability to produce attractive housing, economic opportunities to 
residents, and mixed-income housing, and to revitalize neighborhoods.
    c. Provide any commitments from potential partners to participate 
in the revitalization.
    HUD does not expect applicants proposing innovative ownership or 
financing structures to submit immediately approvable final plans for 
such structures as part of their application. Specifically, HUD does 
not expect PHAs to procure partners before an application is approved 
and warns PHAs against procuring partners in a hasty manner or not in 
compliance with applicable laws and procurement regulations. However, 
applicants should describe proposed structures and relationships in 
sufficient detail to demonstrate a reasonable likelihood that the 
revitalization plan is feasible and in accordance with law. Please 
refer to 24 CFR part 941, subpart F, published in the Federal Register 
on May 2, 1996 (61 FR 19708, 19714), for guidance on procurement of 
partners.

J. Resources

    Only Category A, B, and C applicants must provide an Exhibit J. 
PHAs may use HOPE VI funds in conjunction with any other funds 
available to the PHA, so long as the use of HOPE VI funds complies with 
the requirements set forth in this NOFA, and the Grant Agreement and 
ACC Amendment to be executed with HUD; the use of other funds complies 
with any restrictions applicable to them; and the proposed use of all 
funds complies with section 102(d) of the Department of Housing and 
Urban Development Reform Act of 1989 (42 U.S.C. 3531 note) and HUD's 
subsidy layering guidelines, including those found in 24 CFR part 4.
    Applicants must provide as Exhibit J a list of all of the 
individuals and organizations from which they have received evidence of 
financial or other support for the proposed activities. Next to each 
source, applicants must list the dollar figure associated with the 
resource to be provided, including the dollar value of any in-kind 
services or materials to be provided, if known. Next to the dollar 
figure, applicants must indicate the application page number of letters 
of support or commitments for contributions that describe the nature of 
the support and/or resource to be provided, the dollar value of the 
donation, if available, any conditions attached to the commitment, and 
the date that the resource will be made available. Applicants must 
include letters that provide resources for capital costs, self-
sufficiency programs, and all other activities of the program. 
Applicants may attach letters as part of Exhibit J, and/or in Exhibit 
E.5 (supportive service support) or Exhibit I.2.b and I.2.e (local 
government support).

K. Program Financing and Sustainability

    HUD will use information provided in Exhibit K primarily to 
evaluate the Need for Funding (IV.G) and Program Quality, Feasibility, 
and Sustainability (IV.H) factors.
    1.All applicants must provide an Exhibit K that contains the 
following:
    a. Provide an estimated budget (Form HUD-52825-A, HOPE VI Budget, 
Parts I and II) showing uses of HOPE VI and other funding for the 
proposed demolition and, if applicable, the revitalization plan. Part I 
of the form will indicate the general uses of funds, and Part II breaks 
each individual use into specific activities.
    b. In order to assure that the HOPE VI funds are not used in lieu 
of otherwise available funds, provide the certification included in the 
PHA Board Resolution for Submission of HOPE VI Application (form HUD 
52820-A), submitted under Exhibit M.3, that the PHA could not undertake 
the activities proposed through this application without the additional 
assistance provided by the requested HOPE VI grant. In a narrative, not 
to exceed two pages, discuss how the funds reasonably expected to be 
available to the PHA over the period of the CGP Five-Year Action Plan 
are not adequate to address the revitalization needs of the 
development. Identify all HUD funds currently committed to the PHA for 
capital purposes and available for use at the targeted development, and 
where any currently allocated funds for that development would be 
reallocated, if applicable. Justify why the HOPE VI request should not 
be reduced by the currently-allocated amount. If the PHA is selected to 
participate in the HOPE VI program, the PHA's CGP Five-Year Action Plan 
will be revised to reflect the additional funds.
    2. Category A, B, and C applicants only also must include the 
following information as part of Exhibit K:
    a. Provide a sources-and-uses analysis of capital costs. Although 
non-HOPE VI funding commitments may not be in place at the time the 
application is submitted, PHAs should identify what types of funding 
they will seek to finance their concepts, on what terms these types of 
funding might be available, and the level of commitment funders are 
willing to make at this time.
    b. If average per unit costs for new construction funded by HUD 
will exceed 100 percent of TDC, or average per unit costs for 
rehabilitation funded by HUD will exceed 90 percent of TDC, provide a 
narrative, not to exceed one page, that justifies the need for higher 
costs. See discussion of costs in Section II.E of this NOFA.
    c. Provide a five-year operating budget, showing all projected 
expenses and income. Operating estimates should take into account 
realistic market rents for the proposed unit types and sizes, the 
amount of funding needed for self-sufficiency programs, and costs of 
proposed operating and management policies. Explain all assumptions 
made in the development of the budget.
    d. Sustainability: Describe how the PHA will be able to maintain 
proposed programs and policies on a long term basis, given the 
resources projected to be available for the development. This 
description should not exceed one page.

[[Page 38034]]

L. Resolution of Litigation

    In order to receive the 20 bonus points available to applications 
that demonstrate that the proposed revitalization plan will materially 
assist the applicant and HUD in meeting their obligations under a court 
ordered Consent Decree in connection with civil rights litigation, an 
applicable Category A, B, C, or D applicant shall submit a narrative, 
not to exceed two pages, that describes the obligations of the 
applicant and HUD under the Consent Decree, and explains how the 
activities proposed in the revitalization plan will materially assist 
the applicant and HUD in meeting such obligations.

M. Required Certifications

    Each applicant must submit an Exhibit M that includes all of the 
following letters and forms, fully executed and dated. Submission of 
all of the following letters and forms is a requirement of this NOFA.
    1. As the first page of the application, submit an SF-424, 
Application for Federal Assistance. This form must include the Housing 
Authority Code, provide the name of the targeted development, list all 
activities proposed in the application (demolition, revitalization, 
replacement, Section 8) and the amount of funds requested for each. 
This form must be signed by the Executive Director of the PHA.
    2. A letter from the Chief Executive of the applicable jurisdiction 
in support of the application.
    3. Form HUD-52820-A, PHA Board Resolution for Submission of HOPE VI 
Application.
    4. A certification by the public official responsible for 
submitting the Consolidated Plan under 24 CFR part 91 that the proposed 
activities are consistent with the approved Consolidated Plan of the 
State or unit of general local government within which the development 
is located.
    5. Certification for a Drug-Free Workplace (Form HUD-50070) in 
accordance with 24 CFR 24.630.
    6. SF-LLL, Disclosure of Lobbying Activities, only if any funds 
other than Federally-appropriated funds will be or have been used to 
lobby the executive or legislative branches of the Federal Government 
regarding specific grants or contracts.
    7. Form HUD 2880, Recipient Disclosure/Update Report. This report 
provides disclosures required by section 102 of the HUD Reform Act of 
1989 (Pub. L. 101-235; approved December 15, 1989). Implementing 
regulations in 24 CFR part 4 require PHAs that seek assistance from HUD 
for a specific activity to make the disclosures required under 
Sec. 4.9.
    8. Evidence of Legal Eligibility. If it has not previously done so, 
the PHA must document that it is legally organized. Applicants must 
submit a current General Certificate (Form HUD 9009).
    9. Cooperation Agreement (Form HUD 52481). The PHA must document 
that the number of units requested, along with units in management and 
other units in development, are covered by Cooperation Agreements.
    10. Anti-Lobbying Certification for Contracts, Grants, Loans and 
Cooperative Agreement (Form HUD-50071). In accordance with section 319 
of the Department of the Interior and Related Agencies Appropriations 
Act for Fiscal Year 1990 (31 U.S.C. 1352) (the Byrd Amendment) and the 
implementing regulations in 24 CFR part 87, the PHA must certify that 
no Federally-appropriated funds have been paid or will be paid, by or 
on behalf of the PHA, for influencing or attempting to influence an 
officer or employee of any agency, or a member of Congress in 
connection with the awarding of any Federal contract, the making of any 
Federal grant or loan, the entering into of any cooperative agreement, 
and the extension, continuation, renewal, amendment, or modifications 
of any Federal contract, grant, loan, or cooperative agreement. (The 
rule also requires disclosure from the PHA if nonappropriated funds 
have been spent or committed for lobbying activities, if those 
activities would be prohibited if paid with appropriated funds.)

N. Demolition/Disposition Application

    In accordance with Section II.C of this NOFA, demolition of 
obsolete public housing is a required element of the program.
    1. If a demolition/disposition application was not previously 
submitted for the targeted development, submit as Exhibit N a 
demolition/disposition application in accordance with 24 CFR part 970.
    2. If a demolition/disposition application for the targeted 
development was previously submitted to HUD but has not yet been 
approved, submit as Exhibit N a copy of the PHA's letter transmitting 
the application to HUD.
    3. If a demolition/disposition application has been submitted and 
approved by HUD, but the demolition has not yet commenced, submit as 
Exhibit N a copy of HUD's approval letter.

VI. Application Processing and Grant Administration

Application Evaluation

    Awards under this NOFA will be made through a selection process 
that will award grants to the most meritorious applications based upon 
points as provided below.
    HUD will preliminarily review, rate and rank each application, 
including those applications from prior HOPE VI planning grant 
recipients which are for the same development as their planning grant, 
on the basis of the factors set forth in Section IV of this NOFA. HUD 
will evaluate Category A, B, and C applications based upon all of the 
factors described in section IV of this NOFA. HUD will evaluate 
applications in Category D based upon the Need for Demolition, 
Revitalization or Replacement (IV.B), Local and National Impact (IV.E), 
Community and Partnerships (IV.F), Need for Funding (IV.G), and 
Resolution of Litigation (IV.J) factors only.
    A final review panel will then review the scores of all 
applications whose preliminary score is above a base score established 
by HUD, using the same evaluation factors set forth in Section IV of 
this NOFA. HUD intends to set the base scores so that applications for 
Categories A, B, and C requesting approximately $800 million and 
applications for Category D requesting $100 million are advanced to the 
final review stage. Additionally, notwithstanding their preliminary 
score, HUD will advance for final review the top six rated applications 
from each of Categories A, B, and C. The HOPE VI program, following 
Congressional direction, has heretofore incorporated a progression from 
planning grants to implementation grants. Because of the large number 
of existing planning grants and changes in program structure and 
eligibility, and because a PHA that has used its planning grant 
effectively should be able to demonstrate merit under the rating 
factors, HUD has not given any rating preference to prior planning 
grant sites. However, in order to preserve program continuity and 
obtain full consideration of sites in which the Department has made an 
investment of HOPE VI funds, the Department will review all such 
applications in the second review stage. Such applications will not 
receive special consideration during the panel review stage and will be 
reviewed in both stages of the selection process according to the 
evaluation factors set forth in Section IV of this NOFA. The review 
panel will assess each of the applications advanced to final review

[[Page 38035]]

and will assign the final scores. HUD will select for funding the four 
most highly rated applications from each of categories A, B, and C. HUD 
will select the most highly rated applications in Category D, up to 
available funding. Remaining funding from the approximately $400 
million will be allocated to the remaining most highly rated 
applications in categories A-D, regardless of category.
    HUD, in its discretion, may choose to select a lower-rated 
approvable application over a higher-rated application in order to (1) 
increase the level of national geographic diversity of applications 
selected under this NOFA, or (2) implement an exemplary, innovative or 
unique revitalization plan whose approach would otherwise be 
inadequately represented in the pool selected and which HUD determines 
is a revitalization model which should be tested for the benefit of 
future efforts.
    HUD may establish a panel of experts with whom to consult for 
advice on elements of the applications that are within their expertise. 
Such experts will be advisors and will not conduct any part of the 
selection of grantees.

B. Reduction in Requested Grant Amount

    HUD may select an application for participation in the HOPE VI 
program but grant an award pursuant to such application in an amount 
lower than the amount requested by the applicant, or adjust line items 
in the proposed grant budget within the amount requested (or both), if 
it determines that partial funding is a viable option, and:
    1. The amount requested for one or more eligible activities is not 
supported in the application or is not reasonably related to the 
service or activity to be carried out;
    2. An activity proposed for funding does not qualify as an eligible 
activity and can be separated from the budget;
    3. The amount requested exceeds the total cost limitation 
established for a grant;
    4. Insufficient funds are available to fund the full amount; or
    5. Providing partial funding will permit HUD to fund one or more 
additional qualified PHAs.

C. Corrections to Deficient Applications

    HUD will evaluate each application against the stated factors in 
Section IV of this NOFA. Upon completion of the evaluation, if HUD 
determines that a PHA failed to submit any of the items listed in 
Section III.B of this NOFA, or if the application contains a technical 
mistake, such as an incorrect signatory, or is missing any other 
information that does not affect evaluation of the application, HUD may 
notify the PHA in writing and by facsimile (fax) that the PHA has 14 
calendar days from the date of HUD's written notification to submit or 
correct any of the specified items. The PHA will have no opportunity to 
correct deficiencies other than those identified in HUD's written 
notification, or otherwise to supplement or revise its application. If 
any of the items identified in HUD's written notification is not 
corrected and submitted within the required time period, the 
application will be ineligible for further consideration.

D. Notification of Funding Decisions

    HUD will not notify applicants as to whether they have been 
selected to participate until the announcement of the selection of all 
recipients under this NOFA. HUD will provide written notification to 
applicants that have been selected to participate and to those that 
have not been selected. HUD's notification of award to a selected 
applicant will constitute a preliminary approval by HUD subject to the 
completion of a subsidy layering review pursuant to 24 CFR 941.10(b), 
HUD's completion of an environmental review of the proposed sites, and 
the execution by HUD and the recipient of a Grant Agreement and/or ACC 
Amendment. Selection for participation (preliminary approval) does not 
constitute approval of the proposed site(s). Each proposal will be 
subject to a HUD environmental review, in accordance with 24 CFR part 
50, and the proposal may be modified or the proposed sites rejected as 
a result of that review. Each application must contain the 
certification included in the PHA Board Resolution for Submission of 
HOPE VI Application (form HUD 52820-A), submitted under Exhibit M.3, 
that the applicant will assist HUD in complying with environmental 
review procedures. Under that certification, the applicant/recipient 
may not acquire, rehabilitate, convert, lease, repair, or construct a 
property, or commit HUD or local funds to these activities, until HUD 
approves the site.

E. Grant Agreement/ACC Amendment

    After HUD selects a PHA to receive an award pursuant to this NOFA, 
it will enter into a Grant Agreement and/or ACC Amendment, as 
determined appropriate by HUD, with the recipient setting forth the 
amount of the grant and applicable rules, terms, and conditions, 
including sanctions for violation of the agreement. Among other things, 
the agreement/amendment will provide that the recipient agrees to the 
following:
    1. To carry out the program in accordance with the provisions of 
this NOFA, applicable law, the approved application, and all other 
applicable requirements, including requirements for mixed finance 
development, if applicable;
    2. To comply with such other terms and conditions, including 
recordkeeping and reports, as HUD may establish for the purposes of 
administering, monitoring, and evaluating the program in an effective 
and efficient manner;
    3. That HUD may require the PHA to procure a program manager if 
selected for an award, as a condition of the grant agreement; and
    4. That HUD may withhold, withdraw, or recapture any portion of a 
grant, terminate the Grant Agreement, or take other appropriate action 
authorized by the 1996 Appropriation Act or under the Grant Agreement 
or ACC Amendment if HUD determines that the recipient is failing to 
carry out the approved revitalization program in accordance with the 
terms of the application as approved and this NOFA.
    The Grant Agreement will also provide program rules, describe 
requirements for implementation of the revitalization plan, and provide 
any special conditions on the grantee, as applicable.

VII. Applicability of Program Requirements

    The development to be revitalized is a public housing development. 
Accordingly, certain activities under the revitalization plan are 
subject to statutory requirements applicable to public housing 
developments under the U.S. Housing Act of 1937 (the 1937 Act), other 
statutes, and the ACC. Within such restrictions, HUD seeks innovative 
solutions to the long-standing problems of obsolete developments. In 
order to satisfy any particular statutory requirement, a Grantee may 
take measures as described in implementing regulations or, upon request 
to HUD for a different approach, as otherwise approved in writing by 
HUD.
    The recipient must conduct the following activities, which may be 
undertaken with HOPE VI grant funds, in accordance with the cited 
program requirements or otherwise with HUD's written approval, 
consistent with the 1996 Appropriations Act and this NOFA.
    A. Demolition and disposition activity under the grant must be 
conducted in accordance with 24 CFR part 970;
    B. Public housing development activity (including on-site 
reconstruction as well as off-site

[[Page 38036]]

replacement housing) must be conducted in accordance with 24 CFR part 
941, including mixed finance development in accordance with subpart F 
(published in the Federal Register on May 2, 1996 (61 FR 19708, 
19714)). HUD will distribute the Mixed-Finance ACC Amendment to the 
recipients.
    C. Replacement housing activity using Section 8 rental certificates 
must be conducted in accordance with 24 CFR part 882;
    D. Replacement housing activity with units acquired or otherwise 
provided for homeownership under section 5(h) of the 1937 Act must be 
conducted in accordance with 24 CFR part 906;
    E. Replacement housing activities provided through housing 
opportunity programs of construction or substantial rehabilitation of 
homes must be conducted in accordance with 24 CFR part 280 (the 
Nehemiah Program);
    F. Replacement housing activities under the HOPE II program must be 
conducted in accordance with 24 CFR subtitle A, appendix B;
    G. Replacement housing activities under the HOPE III program must 
be conducted in accordance with 24 CFR subtitle A, appendix C;
    H. Rehabilitation and physical improvement activities must be 
conducted in accordance with 24 CFR 968.112 (b), (d), (e), and (g)-(o), 
24 CFR 968.130, and 24 CFR 968.135 (b) and (d). These provisions were 
published in the Federal Register on March 5, 1996 (61 FR 8712, 8738).
    I. The administration and operation of units must be in accordance 
with all existing public housing rules and regulations.
    PHAs may request, for the revitalized development, a waiver of HUD 
regulations (that are not statutory requirements) governing rents, 
income eligibility, or other areas of public housing management to 
permit a PHA to undertake measures that enhance the long-term viability 
of a development revitalized under this program.

VIII. Applicability of Other Federal Requirements

A. Flood Insurance

    In accordance with the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4001-4128), HUD will not approve applications for grants 
providing financial assistance for acquisition or construction 
(including rehabilitation) of properties located in an area identified 
by the Federal Emergency Management Agency (FEMA) as having special 
flood hazards, unless:
    1. The community in which the area is situated is participating in 
the National Flood Insurance program (see 44 CFR parts 59 through 79), 
or less than one year has passed since FEMA notification regarding such 
hazards; and
    2. Flood insurance is obtained as a condition of approval of the 
application.

B. Coastal Barriers Resources Act

    In accordance with the Coastal Barrier Resources Act (16 U.S.C. 
3601), HUD will not approve grant applications for properties in the 
Coastal Barrier Resources System.

C. Fair Housing Requirements

    Recipients must comply with the requirements of the Fair Housing 
Act (42 U.S.C. 3601-19) and the regulations in 24 CFR part 100; 
Executive Order 11063 (Equal Opportunity in Housing) and the 
regulations in 24 CFR part 107; the fair housing poster regulations in 
24 CFR part 110 and the advertising guidelines in 24 CFR part 109; and 
Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and the 
regulations in 24 CFR part 1.

D. Nondiscrimination on the Basis of Age or Handicap

    Recipients must comply with the prohibitions against discrimination 
on the basis of age pursuant to the Age Discrimination Act of 1975 (42 
U.S.C. 6101-07) and the regulations in 24 CFR part 146; the 
prohibitions against discrimination against, and reasonable 
modification, accommodation, and accessibility requirements for, 
handicapped individuals under section 504 of the Rehabilitation Act of 
1973 (29 U.S.C. 794) and the regulations in 24 CFR part 8; the 
Americans with Disabilities Act (42 U.S.C. 12101 et seq.) and 
regulations issued pursuant thereto (28 CFR part 36); and the 
Architectural Barriers Act of 1968 (42 U.S.C. 4151) and the regulations 
in 24 CFR part 40.

E. Employment Opportunities

    The requirements of section 3 of the Housing and Urban Development 
Act of 1968 (12 U.S.C. 1701u) (Employment Opportunities for Lower 
Income Persons in Connection with Assisted Projects) and the 
regulations in 24 CFR part 135 apply to this program.

F. Minority and Women's Business Enterprises

    The requirements of Executive Orders 11246, 11625, 12432, and 12138 
apply to this program. Consistent with HUD's responsibilities under 
these orders, recipients must make efforts to encourage the use of 
minority and women's business enterprises in connection with funded 
activities.

G. OMB Circulars

    The policies, guidelines, and requirements of OMB Circular Nos. A-
87 (Cost Principles Applicable to Grants, Contracts and Other 
Agreements with State and Local Governments) and 24 CFR part 85 
(Administrative Requirements for Grants and Cooperative Agreements to 
State, Local, and Federally Recognized Indian Tribal Governments), as 
modified by 24 CFR 941, subpart F relating to the procurement of 
partners in mixed-finance developments, apply to the award, acceptance, 
and use of assistance under the program by PHAs, and to the remedies 
for noncompliance, except when inconsistent with the provisions of the 
1996 Appropriations Act, other Federal statutes, or this NOFA. 
Recipients are also subject to the audit requirements of OMB Circular 
A-128 implemented at 24 CFR part 44. Copies of OMB Circulars may be 
obtained from E.O.P. Publications, Room 2200, New Executive Office 
Building, Washington, DC 20503, telephone (202) 395-7332 (this is not a 
toll-free number). There is a limit of two free copies.

H. Drug-Free Workplace

    Applicants must certify that they will provide a drug-free 
workplace, in accordance with the Drug-free Workplace Act of 1988 and 
HUD's implementing regulations at 24 CFR part 24, subpart F.

I. Debarred or Suspended Contractors

    The provisions of 24 CFR part 24 apply to the employment, 
engagement of services, awarding of contracts, subgrants, or funding of 
any recipients, or contractors or subcontractors, during any period of 
debarment, suspension, or placement in ineligibility status.

J. Conflict of Interest

    In addition to the conflict of interest requirements in 24 CFR part 
85, no person who is an employee, agent, consultant, officer, or 
elected or appointed official of the PHA and who exercises or has 
exercised any functions or responsibilities with respect to activities 
assisted under an HOPE VI grant, or who is in a position to participate 
in a decisionmaking process or gain inside information with regard to 
such activities, may obtain a financial interest or benefit from the 
activity, or have an interest in any contract, subcontract, or 
agreement with respect thereto, or the proceeds thereunder, either for 
himself or herself or for those with whom he or she has family or 
business ties, during his or her tenure or for one year thereafter.

[[Page 38037]]

    2. HUD may grant an exception to the exclusion in paragraph (1) of 
this section on a case-by-case basis when it determines that such an 
exception will serve to further the purposes of the revitalization 
demonstration and the effective and efficient administration of the 
revitalization program. HUD will consider an exception only after the 
applicant or recipient has provided a disclosure of the nature of the 
conflict, accompanied by an assurance that there has been public 
disclosure of the conflict and a description of how the public 
disclosure was made, and an opinion of the applicant's or recipient's 
attorney that the interest for which the exception is sought would not 
violate State or local laws. In determining whether to grant a 
requested exception, HUD will consider the cumulative effect of the 
following factors, as applicable:
    a. Whether the exception would provide a significant cost benefit 
or an essential degree of expertise to the revitalization program that 
would otherwise not be available;
    b. Whether an opportunity was provided for open competitive bidding 
or negotiation;
    c. Whether the person affected is a member of a group or class 
intended to be the beneficiaries of the activity, and the exception 
will permit such person to receive generally the same interest or 
benefits as are being made available or provided to the group or class;
    d. Whether the affected person has withdrawn from his or her 
functions or responsibilities, or the decisionmaking process, with 
respect to the specific activity in question;
    e. Whether the interest or benefit was present before the affected 
person was in a position as described in paragraph 1 of this section;
    f. Whether undue hardship will result either to the applicant, 
recipient, or the person affected when weighed against the public 
interest served by avoiding the prohibited conflict; and
    g. Any other relevant considerations.

K. Labor Standards

    Where HOPE VI funds provide assistance with respect to low-income 
housing (including Section 8 housing) that will be subject to a 
contract for assistance under the U.S. Housing Act of 1937, Davis-Bacon 
or HUD-determined wage rates apply to development or operation of the 
housing to the extent required under section 12 of the Act. Under 
section 12, the wage rate requirements do not apply to individuals who: 
perform services for which they volunteered; do not receive 
compensation for those services or are paid expenses, reasonable 
benefits, or a nominal fee for the services; and are not otherwise 
employed in the work involved (24 CFR part 70). In addition, if other 
Federal programs are used in connection with the revitalization 
program, labor standards requirements apply to the extent required by 
such other Federal programs. For example, if CDBG program funds are 
used in connection with the revitalization program, the labor standards 
requirements of that program would apply with respect to the portion of 
work funded thereby.

L. Lead-Based Paint Testing and Abatement

    Any property assisted under the revitalization program established 
under this NOFA constitutes HUD-associated housing for the purpose of 
the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et seq.) 
and is therefore subject to 24 CFR part 35; 24 CFR part 965, subpart H; 
and 24 CFR 968.110(k). Tenant-based assistance provided to PHAs under 
this program will be subject to 24 CFR 982.401 and 24 CFR part 35. 
Unless otherwise provided, recipients shall be responsible for testing 
and abatement activities.

M. Relocation

    1. The requirements of the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 and government-wide 
implementing regulations at 49 CFR part 24 apply to this program.
    2. Temporary Relocation. The recipient must provide each resident 
of an eligible property, who is required to relocate temporarily to 
permit work to be carried out, with suitable, decent, safe, and 
sanitary housing for the temporary period, and must reimburse the 
resident for all reasonable out-of-pocket expenses incurred in 
connection with the temporary relocation, including the costs of moving 
to and from the temporarily occupied housing and any increase in 
monthly costs of rent and utilities.

IX. Other Matters

 A. Paperwork Reduction Act

    The information collection requirements of this NOFA (including 
Forms HUD-52825-A and HUD-52820-A required by Sections K.1.a and M.3 of 
the NOFA) have been submitted to the Office of Management and Budget 
(OMB) for review and temporary approval under the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3520) and 5 CFR 1320.13. 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. The OMB control number, when assigned, will be 
announced by separate notice in the Federal Register.
    In addition, in today's NOFA HUD is soliciting comments, as 
required under 5 CFR 1320.8(d), before submitting the information 
collection requirements contained in this NOFA to OMB for regular 
review in accordance with 5 CFR 1320.10. HUD is seeking comments from 
members of the public and affected agencies concerning the proposed 
collection of information to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond; including through the use of appropriate automated 
collection techniques or other forms of information technology, e.g., 
permitting electronic submission of responses. Interested persons are 
invited to submit comments according to the instructions in the Dates 
and Addresses sections of this NOFA.
    This Notice also lists the following information:

    Title of Proposal: NOFA for Public Housing Demolition, Site 
Revitalization, and Replacement Housing Grants (HOPE VI) (FR 4076).
    Description of the Need for the Information and Proposed Use:This 
information collection is required in connection with the issuance of 
this NOFA, announcing the availability of approximately $480 million 
for grants public housing demolition, revitalization, and replacement 
housing.
    Form Numbers: HUD-52820-A and HUD-52828-A
    Members of Affected Public: Public housing agencies.
    Estimation of the Total Number of Hours Needed to Prepare the 
Information Collection including Number of Respondents, Frequency of 
Response, and Hours of Response:

[[Page 38038]]



----------------------------------------------------------------------------------------------------------------
                                                                              Total                             
            Submission requirements               Number of    Number of      annual     Hours per      Total   
                                                 respondents   responses     response     response              
----------------------------------------------------------------------------------------------------------------
Application....................................          500            1          500           40       20,000
Demolition/Disposition Application.............          500            1          500           10        5,000
Resident Consultation..........................          500            1          500            4        2,000
HOPE VI Budget Form HUD-52825-A................          500            1          500            6        3,000
PHA Board Resolution for Submission of HOPE VI                                                                  
 Application Form HUD-52820-A..................          500            1          500            1          500
      Total Burden.............................                                                           30,500
----------------------------------------------------------------------------------------------------------------

    Status of the Proposed Information Collection: Emergency processing 
request pending.

B. Environmental Review

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR part 50, 
implementing 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 and copying between 7:30 am and 5:30 pm 
weekdays at the Office of the Rules Docket Clerk, 451 Seventh Street, 
SW., Room 10276, Washington, DC 20410.

C. Impact on the Family

    The General Counsel, as the Designated Official for Executive Order 
12606, The Family, has determined that the policies announced in this 
NOFA will not have the potential for significant impact on family 
formation, maintenance, and general well-being within the meaning of 
the order. No significant change in existing HUD policies and programs 
will result from the issuance of this NOFA, as those policies and 
programs relate to family concerns. To the extent that there is impact 
on the family, revitalization under this program can be expected to 
support families by enabling low-income families to live in decent, 
safe, and sanitary housing.

D. Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that this NOFA 
will not have substantial, direct effects on States, on their political 
subdivisions, or on their relationship with the Federal Government, or 
on the distribution of power and responsibilities between them and 
other levels of government. While the NOFA offers financial assistance 
to units of general local government, none of its provisions will have 
an effect on the relationship between the Federal Government and the 
States, or the States' political subdivisions.

E. Accountability in the Provision of HUD Assistance

    Section 102 of the Department of Housing and Urban Development 
Reform Act of 1989 (HUD Reform Act) and the final rule codified at 24 
CFR part 4, subpart A, published on April 1, 1996 (61 FR 1448), contain 
a number of provisions that are designed to ensure greater 
accountability and integrity in the provision of certain types of 
assistance administered by HUD. On January 14, 1992, HUD published, at 
57 FR 1942, a notice that also provides information on the 
implementation of section 102. The documentation, public access, and 
disclosure requirements of section 102 are applicable to assistance 
awarded under this NOFA as follows:
    Documentation and public access requirements. HUD will ensure that 
documentation and other information regarding each application 
submitted pursuant to this NOFA are sufficient to indicate the basis 
upon which assistance was provided or denied. This material, including 
any letters of support, will be made available for public inspection 
for a five-year period beginning not less than 30 days after the award 
of the assistance. Material will be made available in accordance with 
the Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15. In addition, HUD will include the 
recipients of assistance pursuant to this NOFA in its Federal Register 
notice of all recipients of HUD assistance awarded on a competitive 
basis.
    Disclosures. HUD will make available to the public for five years 
all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this NOFA. Update reports (also Form 2880) will be made 
available along with the applicant disclosure reports, but in no case 
for a period less than three years. All reports--both applicant 
disclosures and updates--will be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15.

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, 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.
    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. 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 in 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,

[[Page 38039]]

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: July 17, 1996.
Michael B. Janis,
General Deputy Assistant Secretary for Public Indian Housing.
[FR Doc. 96-18543 Filed 7-17-96; 3:59 pm]
BILLING CODE 4210-33-P