[Federal Register Volume 62, Number 70 (Friday, April 11, 1997)]
[Notices]
[Pages 17976-17990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9307]



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Part V





Department of Housing and Urban Development





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Funding Availability (FY 1997) for Community Block Grant Program for 
Indian Tribes and Alaska Native Villages; Notice

  Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / 
Notices  

[[Page 17976]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4180-N-01]


Community Development Block Grant Program for Indian Tribes and 
Alaska Native Villages (Fiscal Year 1997) Notice of Funding 
Availability

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

ACTION: Notice of Funding Availability for Fiscal Year 1997.

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SUMMARY: This notice announces the availability of $67,453,491 for the 
Community Development Block Grant Program for Indian Tribes and Alaska 
Native Villages (ICDBG Program). In the body of this Notice of Funding 
Availability (NOFA) is information concerning the following:
    (a) The purpose of the NOFA and information regarding eligibility 
and available amounts;
    (b) A list of steps involved and a checklist of the exhibits 
required in the application process, including where and how to apply 
and what to submit; and
    (c) A description of application processing, including the 
selection process and the selection criteria.

DATES: Applications must be received by the appropriate Area ONAP of 
the HUD Office of Native American Programs (ONAP) no later than 3:00 
P.M. on Friday, July 25, 1997. Application materials will be available 
from each Area ONAP. General program questions may be directed to the 
Area ONAP serving your area or to Robert Barth, Office of Native 
American Programs, Office of Public and Indian Housing, Department of 
Housing and Urban Development, P.O. Box 36003, 450 Golden Gate Ave., 
San Francisco, CA 94102; telephone (415) 436-8122. The TTY number is 
(415) 436-6594. (These are not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

Changes From FY 1996 NOFA

    1. Conformance with the Requirements of the July 31, 1996 Final 
Rule. On July 31, 1996 (61 FR 40084), HUD published a final rule which 
revised the requirements for the ICDBG Program (24 CFR part 953). The 
FY 1996 NOFA was published on May 9, 1996 (61 FR 21338). The FY 1996 
was therefore written to comply with the requirements of the interim 
rule (July 27, 1994, 59 FR 38326) which preceded the July 31, 1996 
final rule. All references to 24 CFR part 953 in this FY 1997 NOFA are 
to the final rule.
    There is one substantive difference between the interim and final 
rules which affects the process or procedures covered in the NOFA; the 
project specific threshold requirements for economic development 
projects have been changed. The previous threshold requirement that 
``an applicant shall demonstrate the need for grant assistance by 
providing documentation to support a determination that the assistance 
is appropriate to implement an economic development project'' has been 
deleted. This requirement has proven to be an unnecessary complication 
for potential applicants for assistance.
    One of the two remaining threshold requirements for economic 
development projects (i.e., that an analysis demonstrates that public 
benefit commensurate with the assistance requested can reasonably be 
expected) has been expanded in scope and revised. The expansion/
revision of this threshold was done to state this threshold in a manner 
consistent with the objectives for the evaluation and selection of 
economic development projects which were set forth in section 806 of 
the Housing and Community Development Act of 1992.
    2. Population to be Considered for Grant Ceilings--Southwest ONAP. 
Clarifying language has been included in Section III.(a)(3) so that the 
population to be considered for grant ceiling levels is unambiguous. In 
addition, the lowest population category has been revised to 
acknowledge that there are otherwise eligible applicants which because 
of recent recognition or untermination have no land base and, 
therefore, no on-reservation or rancheria Native American population.
    3. Imminent Threat Requirements and Process. The wording of the 
NOFA has been revised (Section III.(a)(4)). The emergency nature of the 
problem to be addressed has been emphasized. Also, the fact that the 
deadline established by the NOFA does not apply to requests for 
assistance to address an imminent threat has been clarified.
    4. Southwest Area ONAP--Closing of the San Francisco Office. The 
address of the San Francisco Office of the Southwest Area ONAP has been 
deleted from the listing of Area ONAP offices (Section IV.(a)(1)) since 
this office has been closed. Program responsibilities for applicants 
and grants in the former jurisdiction of that office have been 
transferred to the office in Phoenix.
    5. Housing Rehabilitation Grant Limit. The grant limit set forth in 
Section VIII.(b)(2) for applicants in the jurisdiction of the Northwest 
Area ONAP has been increased to $25,000.
    6. Land to Support New Housing--Selection Criterion VIII.(e)(2)(v). 
In response to equity concerns raised by the Southern Plains Area ONAP, 
the language of this criterion has been changed. It will not be 
necessary for an applicant to provide documentation from the Bureau of 
Indian Affairs which demonstrates that the land to be purchased can and 
would be taken into trust to obtain the rating points available under 
this criterion. However, if this documentation is not provided, it will 
be necessary for the applicant to provide specified documentation that 
all taxes and fees on the land can and would be paid.
    7. Errors and Appeals. The section formerly titled Procedural Error 
and Appeals has been re-titled Errors and Appeals (Section XI.). The 
following substantive changes have also been made. The basis upon which 
an appeal may be made has been clarified; it has been made explicit 
that only a perceived arithmetic error may form the basis of an appeal. 
In addition, the time period allowed for an appeal has been reduced to 
thirty days after notification of a funding decision.
    8. Editorial and Formatting Revisions. In addition to the changes 
discussed above, this notice makes several technical changes to the FY 
1996 NOFA. These editorial and formatting changes will make the NOFA 
easier to understand. Among other revisions, this notice divides 
several of the lengthy sections contained in the FY 1996 NOFA. For 
example, this NOFA sets forth the thresholds and selection criteria for 
Housing, Community Facilities, and Economic Development in separate 
sections. Other technical changes include: (1) moving the necessary 
definitions up front to a new Section II; (2) redesignating the NOFA 
paragraphs to conform to the designations used by HUD in its other 
regulations and notices; and (3) moving the information regarding the 
Paperwork Reduction Act of 1995 and the HUD Reform Act to the section 
titled ``Findings and Certifications'' (formerly titled ``Other 
Matters'').

Promoting Comprehensive Approaches to Housing and Community 
Development

    HUD is interested in promoting comprehensive, coordinated 
approaches to housing and community development. Economic development, 
community development, public housing revitalization, homeownership, 
assisted housing for special needs populations, supportive services, 
and welfare-to-work initiatives can work better if linked at the local 
level.

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Toward this end, the Department in recent years has developed the 
Consolidated Planning process designed to help communities undertake 
such approaches.
    In this spirit, it may be helpful for applicants under this NOFA to 
be aware of other related HUD NOFAs that have recently been published 
or are expected to be published in the near future. By reviewing these 
NOFAs with respect to their program purposes and the eligibility of 
applicants and activities, applicants may be able to relate the 
activities proposed for funding under this NOFA to the recent and 
upcoming NOFAs and to the community's Consolidated Plan. While tribes 
and Indian housing authorities are not required to execute a 
Consolidated Plan, comprehensive planning by tribes is encouraged.
    Elsewhere in today's Federal Register, the Department is publishing 
the following related NOFAs: the NOFA for Emergency Shelter Grants Set-
Aside for Indian Tribes and Alaskan Native Villages; and the NOFA for 
Indian Applicants under the HOME Program. The Department expects to 
publish within the next few weeks the NOFA for Indian Housing 
Development.
    To foster comprehensive, coordinated approaches by communities, the 
Department intends for the remainder of FY 1997 to continue to alert 
applicants to upcoming and recent NOFAs as each NOFA is published. In 
addition, a complete schedule of NOFAs to be published during the 
fiscal year and those already published appears under the HUD Homepage 
on the Internet, which can be accessed at http://www.hud.gov/
nofas.html. Additional steps on NOFA coordination may be considered for 
FY 1998.
    For help in obtaining a copy of your community's Consolidated Plan, 
please contact the community development office of your municipal 
government.

Table of Contents

I. Purpose and Authority
    (a) Purpose
    (b) Authority
II. Definitions
III. Funding and Eligibility
    (a) Funding
    (b) Eligible Activities
    (c) Applicant Eligibility
IV. Application Process and Submission Requirements
    (a) Application Process
    (b) Application Submission Requirements and Checklist
    (c) Documentation Requirements for Point Award
V. Application Screening and Review Process
    (a) Screening for Acceptance
    (b) Application Review Process
    (c) Pre-award Requirements
VI. General Threshold Requirements
    (a) General
    (b) Applicant Thresholds
    (c) Community Development Appropriateness
VII. Summary of Selection System Criteria and Point Awards
    Housing
    (a) Rehabilitation
    (b) Land to Support New Housing
    (c) New Housing Construction
    Community Facilities
    (a) Infrastructure
    (b) Buildings
    Economic Development
VIII. Project Specific Thresholds and Selection Criteria for Housing
    (a) Specific Threshold for Housing Category Projects
    (b) Rehabilitation Thresholds and Grant Limits
    (c) Selection Criteria for Rehabilitation Projects
    (d) Thresholds for Land to Support New Housing
    (e) Selection Criteria for Land to Support New Housing
    (f) Thresholds for New Housing Construction
    (g) Selection Criteria for New Housing Construction
IX. Project Specific Thresholds and Selection Criteria for Community 
Facilities
    (a) Infrastructure Selection Criteria
    (b) Threshold for Buildings
    (c) Selection Criteria for Buildings
X. Project Specific Thresholds and Selection Criteria for Economic 
Development
    (a) Thresholds for Economic Development
    (b) Selection Criteria for Economic Development
XI. Error and Appeals
XII. Findings and Certifications
    (a) Paperwork Reduction Act
    (b) Environmental Statement
    (c) Recipient Compliance with Environmental Requirements
    (d) Federalism Executive Order
    (e) Family Executive Order
    (f) Prohibition of Advance Disclosure of Funding Decisions
    (g) Economic Opportunities for Low and Very Low Income Persons
    (h) Prohibition Against Lobbying Activities
    (i) Section 102 of the HUD Reform Act

I. Purpose and Authority

    (a) Purpose. This notice announces the availability of $67,453,491 
for the ICDBG Program.
    (b) Authority. Title I, Housing and Community Development Act of 
1974, as amended (42 U.S.C. 5301 et seq.); sec. 7(d) of the Department 
of Housing and Urban Development Act (42 U.S.C. 3535(d)); 24 CFR part 
953.

II. Definitions

    Adopt means to approve by formal tribal resolution.
    Assure means to comply with a specific NOFA requirement. The 
applicant should state its compliance or its intent to comply in its 
application.
    Document means to supply supporting written information and/or data 
in the application which satisfies the NOFA requirement.
    Leverage means resources the grantee will use in conjunction with 
ICDBG funds to achieve the objectives of the project. Resources 
include, but are not limited to:
    (1) Tribal trust funds;
    (2) Loans from individuals or organizations;
    (3) State or Federal loans or guarantees;
    (4) Other grants; and
    (5) Noncash contributions and donated services.

(See section IV.(c) of this NOFA for documentation requirements for 
point award for leveraged resources.)
    Project Cost means the total cost to implement the project. Project 
cost includes both ICDBG and non ICDBG funds and resources.
    Section 8 standards means housing quality standards contained in 24 
CFR 982.401 (Section 8 Tenant-Based Assistance: Unified Rule for 
Tenant-Based Assistance Under the Section 8 Rental Certificate Program 
and the Section 8 Rental Voucher Program).
    Standard Housing/Standard Condition means housing which meets the 
housing quality standards (HQS) adopted by the applicant.
    (1) The HQS adopted by the applicant must be at least as stringent 
as the Section 8 standards unless the Area ONAP approves less stringent 
standards based on a determination that local conditions make the use 
of Section 8 standards infeasible.
    (2) Applicants may submit their request for the approval of 
standards less stringent than Section 8 standards prior to the 
application due date. If the request is submitted with the application, 
applicants should not assume automatic approval by the Area ONAP.
    (3) The adopted standards must provide for the following:
    (i) That the house is safe, in a physically sound condition with 
all systems performing their intended design functions;
    (ii) A livable home environment;
    (iii) An energy efficient building and systems which incorporate 
energy conservation measures; and
    (iv) Adequate space and privacy for all intended household members.
    Tribe means an Indian Tribe, band, group or nation, including 
Alaska Indians, Aleuts, Eskimos, Alaska Native Villages, ANCSA Village 
Corporations and Regional Corporations.

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III. Funding and Eligibility

    (a) Funding. (1) General. Amendments to Title I of the Housing and 
Community Development Act of 1974 have required that the allocation for 
Indian Tribes be awarded on a competitive basis in accordance with 
selection criteria contained in a regulation promulgated by the 
Secretary after notice and public comment. All grant funds awarded in 
accordance with this NOFA are subject to the requirements of 24 CFR 
part 953. Applicants within an Area ONAP's geographic jurisdiction 
compete only against each other for that Area ONAP's allocation of 
funds.
    (2) Allocations. The requirements for allocating funds to Area 
ONAPs responsible for program administration are found at 24 CFR 
953.101. Following these requirements, the allocations for FY 1997 are 
as follows:

Eastern/Woodlands..........................................   $5,178,418
Southern Plains............................................   12,254,896
Northern Plains............................................   10,336,441
Southwest..................................................   28,199,896
Northwest..................................................    3,949,293
Alaska.....................................................    5,534,557
                                                            ------------
      Total................................................   65,453,491
                                                                        

    The total allocation includes $453,491 in unused funds from the 
amount reserved by the Assistant Secretary in Fiscal Year 1996 for 
imminent threat grants. As indicated in Section III.(a)(4) below, 
$2,000,000 will be retained to fund imminent threat grants.
    (3) Grant Ceilings. The authority to establish grant ceilings is 
found at 24 CFR 953.100(b)(1). Grant ceilings are established for FY 
1997 funding at the following levels:

------------------------------------------------------------------------
             Area ONAPs                     Population          Ceiling 
------------------------------------------------------------------------
Eastern/Woodlands...................  All...................    $300,000
Southern Plains.....................  All...................     750,000
Northern Plains.....................  All...................     800,000
Southwest...........................  50,001+...............   5,000,000
                                      10,501-50,000.........   2,500,000
                                      9,001-10,500..........   2,000,000
                                      7,501-9,000...........   1,500,000
                                      6,001-7,500...........   1,000,000
                                      4,501-6,000...........     750,000
                                      3,001-4,500...........     650,000
                                      1,501-3,000...........     550,000
                                      0-1,500...............     450,000
Northwest...........................  All...................     320,000
Alaska..............................  All...................     500,000
------------------------------------------------------------------------

    For the Southwest Area ONAP jurisdiction, the population used to 
determine ceiling amounts is the Native American population which 
resides on a reservation or rancheria.
    (4) Imminent Threats. (i) The criteria for grants to alleviate or 
remove imminent threats to health or safety that require an immediate 
solution are described at 24 CFR part 953, subpart E. Please note that 
the problem to be addressed must be such that an emergency situation 
would exist if it were not addressed. In accordance with the provisions 
of 24 CFR part 953, subpart E, $2,000,000 will be retained to meet the 
funding needs of imminent threat applications submitted to any of the 
Area ONAPs. The grant ceiling for imminent threat applications for FY 
1997 is $350,000. This ceiling is established pursuant to the 
provisions of Sec. 953.400(c).
    (ii) Requests for assistance under the imminent threat set-aside 
(24 CFR 953, subpart E) do not have to be submitted by the deadline 
established in this NOFA; the deadline applies to application submitted 
for assistance under 24 CFR 953, subpart D--single purpose grants.
    (iii) If, in response to a request for assistance, an Area ONAP 
issues a letter to proceed under the authority of Sec. 953.401(a), an 
application must be submitted to and approved by the Area ONAP before a 
grant agreement may be executed. This application must consist of the 
following components:
    (A) Standard Form 424--Application for Federal Assistance
    (B) Brief description of the proposed project
    (C) Form HUD-4123--Cost Summary
    (D) Form HUD-4125--Implementation Schedule
    (E) Form HUD-2880--Applicant/Recipient Disclosure/Update Report.
    (F) Form HUD-4126--Certifications.
    (G) Drug-free workplace certification (24 CFR part 24, subpart F).
    (b) Eligible Activities. Activities that are eligible for ICDBG 
funds are identified at 24 CFR part 953, subpart C.
    (c) Applicant Eligibility. (1) General. To apply for funding in a 
given fiscal year, an applicant must be eligible as an Indian Tribe or 
Alaska Native Village (or as a tribal organization) by the application 
submission date.
    (2) Tribal Organizations. Tribal organizations are permitted to 
submit applications under 24 CFR 953.5(b) on behalf of eligible tribes 
or villages when one or more eligible tribe(s) or village(s) authorize 
the organization to do so under concurring resolutions. As is stated in 
this regulatory section, the tribal organization must itself be 
eligible under Title I of the Indian Self-Determination and Education 
Assistance Act.
    (3) Successors to Eligible Entities. If a tribe or tribal 
organization claims that it is a successor to an eligible entity, the 
Area ONAP must review the documentation to determine whether it is in 
fact the successor entity.
    (4) Alaskan Tribal Entities. (i) Due to the unique structure of 
tribal entities eligible to submit ICDBG applications in Alaska, and as 
only one ICDBG application may be submitted for each area within the 
jurisdiction of an entity eligible under 24 CFR 953.5, a Tribal 
Organization which submits an application for activities in the 
jurisdiction of one or more eligible tribes or villages must include a 
concurring resolution from each such tribe or village authorizing the 
submittal of the application. Each such resolution must also indicate 
that the tribe or village does not itself intend to submit an ICDBG 
application for that funding round. The hierarchy for funding priority 
continues to be the IRA Council, the Traditional Village Council, the 
Village Corporation and the Regional Corporation.
    (ii) On February 16, 1995 (60 FR 9250), the Bureau of Indian 
Affairs (BIA) published a Federal Register Notice entitled ``Indian 
Entities Recognized and Eligible to Receive Services From the United 
States Bureau of Indian Affairs.'' This notice provides a listing of 
Indian Tribal Entities in Alaska found to be Indian Tribes as the term 
is defined and used in 25 CFR part 83. Additionally, pursuant to Title 
I of the Indian Self Determination and Education Assistance Act, ANCSA 
Village Corporations and Regional Corporations are also considered 
tribes and therefore eligible applicants for the ICDBG program.
    (iii) Any questions regarding eligibility determinations and 
related documentation requirements for entities in Alaska should be 
referred to the Alaska Area ONAP prior to the deadline for submitting 
an application. (See 24 CFR 953.5 for a complete description of 
eligible applicants.)

IV. Application Process and Submission Requirements

    (a) Application Process
    (1) An application package may be obtained from the Area ONAP in 
the following geographic locations:
    All States East of the Mississippi River, Plus Iowa and Minnesota: 
Eastern/Woodlands Office of Native American Programs, Community 
Development and Tribal Relations (CD & TR) Staff, 77 West Jackson 
Blvd., Chicago, IL 60604; Telephone: (312) 886-4532, Ext. 2815.
    Louisiana, Kansas, Oklahoma, and Texas, except West Texas: Southern 
Plains Office of Native American Programs, CD & TR Staff, Suite 400, 
500 W. Main Street, Oklahoma City, OK

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73102-3202; Telephone: (405) 553-7525.
    Colorado, Montana, Nebraska, North Dakota, South Dakota, Utah and 
Wyoming: Northern Plains Office of Native American Programs, CD & TR 
Staff, First Interstate Tower North, 833 17th Street, Denver, CO 80202-
3607; Telephone: (303) 672-5457.
    Arizona, California, and Nevada: Southwest Office of Native 
American Programs, CD & TR Staff, Two Arizona Center, Suite 1650, 400 
N. Fifth Street, Phoenix, AZ 85004-2361; Telephone: (602) 379-4197.
    New Mexico and West Texas: Southwest Office of Native American 
Programs, CD & TR Specialist, Albuquerque Plaza, 201 3rd Street N.W., 
Suite 1830, Albuquerque, NM 87102-3368; Telephone: (505) 766-1372.
    Idaho, Oregon, Washington: Northwest Office of Native American 
Programs, CD & TR Staff, Federal Office Building, 909 First Avenue, 
Suite 200, Seattle, WA 98104-1000; Telephone: (206) 220-5271.
    Alaska: Alaska Office of Native American Programs, CD & TR Staff, 
949 E. 36th Avenue, Suite 401, Anchorage, AK 99508-4135; Telephone: 
(907) 271-4603.
    (2) Completed applications must be submitted to the appropriate 
Area ONAP, listed above, from which application information and 
packages were obtained. All telephone numbers listed may be accessed 
via TTY by calling the Federal Information Relay Service at 1-800-877-
8339.
    (3) Applications must be received by the appropriate Area ONAP no 
later than 3:00 P.M. on the deadline date, Friday, July 25, 1997.
    (b) Application Submission Requirements and Checklist
    (1) General. An applicant shall submit only one application. The 
ICDBG grant amount requested shall not total more than the grant 
ceiling. An application may include an unlimited number of eligible 
projects (e.g., housing or public facilities). Each project within an 
application will be rated separately.
    (2) Demographic data. Applicants may submit data that are 
unpublished and not generally available in order to meet the 
requirements of this section. The applicant must certify that:
    (i) Generally available, published data are substantially 
inaccurate or incomplete;
    (ii) Data provided have been collected systematically and are 
statistically reliable;
    (iii) Data are, to the greatest extent feasible, independently 
verifiable; and
    (iv) Data differentiate between reservation and BIA service area 
populations, when applicable.
    (3) Publication of community development statement. Applicants 
shall prepare and publish or post the community development statement 
portion of their application according to the citizen participation 
requirements of Sec. 953.604.
    (4) Application Submission. The application shall include:
    (i) Standard Form 424--Application for Federal Assistance;
    (ii) Community Development Statement which includes:
    (A) Components that address the relevant selection criteria;
    (B) A brief description or an updated description of community 
development needs;
    (C) A brief description of projects proposed to address needs, 
including scope, magnitude, and method of implementing the project;
    (D) A schedule for implementing the project (form HUD-4125 
Implementation Schedule); and
    (E) Cost information for each separate project, including specific 
activity costs, administration, planning, and technical assistance, 
total HUD share (form HUD-4123 Cost Summary);
    (iii) Certifications--form HUD 4126;
    (iv) Drug-free Workplace Certification (24 CFR part 24, subpart F);
    (v) Applicant/Recipient Disclosure/Update Report--form HUD 2880, as 
required under subpart A of 24 CFR part 4, Accountability in the 
Provision of HUD Assistance;
    (vi) A map showing project location, if appropriate;
    (vii) If the proposed project will result in displacement or 
temporary relocation, a statement that identifies:
    (A) The number of persons (families, individuals, businesses and 
nonprofit organizations) occupying the property on the date of the 
submission of the application (or date of initial site control, if 
later);
    (B) The number to be displaced or temporarily relocated;
    (C) The estimated cost of relocation payments and other services;
    (D) The source of funds for relocation; and
    (E) The organization that will carry out the relocation activities;
    (viii) If applicable, evidence of the disclosure required by 24 CFR 
953.606(e).
    (c) Documentation requirements for point award for leveraged 
resources. (1) General. For the applicant's own resources, a council 
resolution which identifies and commits the resources must be included 
in the application. For resources to be provided by another entity, 
written verification of an application or request for the leveraged 
resources must be included in the application.
    (2) Resources contributed by a public agency, foundation, or other 
public party. (i) In addition to the requirement described in paragraph 
(c)(1) of this section, for grants or other contributed resources from 
a public agency, foundation, or other private party, a written 
commitment which may be contingent on approval of the ICDBG award must 
be received by the Area ONAP no later than 30 days after the 
application deadline. This commitment must specifically identify or 
indicate:
    (A) The dollar amount committed (or dollar value of the noncash 
resource and the basis for the valuation);
    (B) That the resources are currently available or will be available 
when necessary for successful project implementation; and
    (C) The project.
    (ii) If the nature of the funding cycle of the contributing entity 
precludes such an entity from making a firm funding commitment in the 
30 days provided by paragraph (c)(2)(i) of this section, such resources 
will be considered in the award of points if the entity provides a 
written statement indicating that the application or request for 
assistance has been received from the ICDBG applicant and stating the 
date by which its funding determination will be made. This date cannot 
be more than six months from the anticipated date of grant approval 
notification by HUD.
    (iii) If the proposed project rates high enough for funding 
consideration, a special condition will be established in the grant 
agreement for the project. This condition will indicate that if a firm 
funding commitment for the leveraged resources is not provided within 
six months of the date of grant approval, the grant funds approved will 
be recaptured by HUD and will be used in accordance with the 
requirements of Sec. 953.102.
    (iv) The statement described in paragraph (c)(2)(ii) of this 
section must be received by the Area ONAP no later than 30 days after 
the application deadline. If the commitment or statement is not 
received in the required timeframe or if the required information is 
not included, points will not be awarded for the proposed contribution.
    (v) If the proposed project still rates high enough to be approved, 
a pre-award condition will be established which will require the 
applicant to provide evidence of firmly committed resources to cover 
the entire non-ICDBG

[[Page 17980]]

project cost. If this condition is not met, the grant will not be 
awarded.
    (3) Contributions of goods and services. In addition to the above 
requirements for point award, special documentation must be included in 
the application for certain contributions. The contribution of goods 
and services will be considered for point award if the applicable 
requirements listed above are met; if the items or services are 
demonstrated and determined necessary to the actual development of the 
project; and comparable cost and/or time estimates are submitted which 
support the donation.
    (4) Contributions of land. Land to be contributed will only be 
considered for point award when its use and area are integral to the 
development of the project. In addition, the value of the land must be 
verified by any of the following means or methods and this 
documentation must be included in the application:
    (i) A site specific appraisal no more than two years old;
    (ii) An appraisal of a nearby comparable site also no more than two 
years old; and
    (iii) A reasonable extrapolation of land value based on current 
area realtors value guides.

V. Application Screening and Review Process

    (a) Screening for Acceptance. Each Area ONAP will screen 
applications for single purpose grants. Applications failing this 
screening shall be rejected and returned to the applicants unrated. 
Area ONAPs will accept applications if all the criteria listed below as 
items (1) through (6) are met:
    (1) The application is received by the appropriate Area ONAP no 
later than 3:00 P.M. local time on the deadline date;
    (2) The applicant is eligible;
    (3) The proposed activities are eligible. Activities assisted with 
ICDBG funds are subject to the requirements of section 504 of the 
Rehabilitation Act of 1973 and HUD's implementing regulations at 24 CFR 
part 8;
    (4) The application contains substantially all the components 
specified in Section IV.(b)(4) of this notice;
    (5) At least 70% of the grant funds are to be used for activities 
that benefit low and moderate income persons, in accordance with the 
requirements of Sec. 953.208; and,
    (6) The application is for an amount which does not exceed the 
grant ceilings that are established by the NOFA.
    (b) Application Review Process.
    (1) Threshold review. The Area ONAP will review each application 
that passes the screening process to ensure that each applicant and 
each proposed project meets the applicable threshold requirements set 
forth in 24 CFR 953.301(a) and 953.302, as implemented by this NOFA. If 
an applicant fails to meet any of the applicant-specific thresholds, 
its application cannot be accepted for rating and ranking. Project(s) 
that do not meet the community development appropriateness or 
applicable project-specific thresholds will not be considered for 
funding.
    (2) Rating Team. All projects that meet the acceptance criteria and 
threshold requirements will be reviewed and rated by an Area ONAP 
rating team of at least three voting members. The Area ONAP rating team 
will examine each project to determine in which one of the rating 
categories set forth in 24 CFR 953.303(a) the project most 
appropriately belongs. The project will be rated on the basis of the 
criteria identified in the rating category component to which the 
project has been assigned. The total points for a rating component are 
100, which is the maximum any project can receive.
    (3) Public service projects. Due to the statutory 15 percent cap on 
public services activities, applicants may not receive single purpose 
grants solely to fund public services activities. However, any 
application may contain a public services component for up to 15 
percent of the total grant. This component may be unrelated to the 
other project(s) included in the application. If an application does 
not receive full funding, the public services allocation will be 
proportionately reduced to comprise no more than 15 percent of the 
total grant award.
    (4) Corrections to deficient applications and supplemental 
information.
    (i) The Area ONAP will not accept unsolicited information regarding 
the application after the application deadline has passed. The Area 
ONAP will notify applicants in writing of technical deficiencies in 
applications and permit them to be corrected. A technical deficiency is 
an error or oversight which, if corrected, would not alter, in either a 
positive or negative fashion, the review and rating of the application. 
Examples of technical deficiencies would be a failure to submit proper 
certifications or failure to submit an application containing an 
original signature by an authorized official.
    (ii) The Area ONAP may request information for the purpose of 
clarifying the terms of an applicant's application, provided the 
additional information is consistent with regulatory requirements.
    Applicants will have 14 calendar days from the date of HUD's 
correspondence to reply and correct the technical deficiency or provide 
the requested supplemental information. If the technical deficiency is 
not corrected within this time period, the Area ONAP will reject the 
application as incomplete. If the supplemental information is not 
provided in this time period and, as a consequence, the Area ONAP 
determines that the applicant has failed to establish compliance with 
the requirements of 24 CFR part 953, the application will be returned, 
unrated.
    (iii) No information submitted after the application due date can 
enhance a project's rating, and a new project may not be substituted 
for one included in the application.
    (5) Final ranking. (i) All projects will be ranked against each 
other according to the point totals they receive, regardless of the 
rating category or component under which the points were awarded. 
Projects will be selected for funding based on this final ranking, to 
the extent that funds are available. Individual grant amounts will be 
determined in a manner consistent with the considerations set forth in 
24 CFR 953.100(b)(2).
    (ii) If the Area ONAP determines that an insufficient amount of 
money is available to adequately fund a project, it may decline to fund 
that project and fund the next highest ranking project or projects for 
which adequate funds are available. The Area ONAP may select, in rank 
order, additional projects for funding if one of the higher ranking 
projects is not funded, or if additional funds become available.
    (6) Tiebreakers. When rating results in a tie among projects and 
insufficient resources remain to fund all tied projects, Area ONAPs 
shall approve projects that can be fully funded over those that cannot 
be fully funded. When that does not resolve the tie, the following 
factors will be used in the order listed to resolve the tie:
    (i) Eastern/Woodlands Office
    (A) The applicant with the fewest active grants.
    (B) The applicant that has not received an ICDBG grant over the 
longest period of time.
    (C) The project that would benefit the highest percentage of low 
and moderate income persons.
    (ii) Southern Plains Office
    (A) The applicant that has not received an ICDBG grant over the 
longest period of time over the last 8 years.

[[Page 17981]]

    (B) The applicant with the fewest active grants.
    (C) The project that would benefit the highest percentage of low 
and moderate income persons.
    (iii) Northern Plains and Southwest Offices
    (A) The applicant that has not received an ICDBG grant over the 
longest period of time.
    (B) The applicant with the fewest active grants.
    (C) The project that would benefit the highest percentage of low 
and moderate income persons.
    (iv) Northwest Office
    (A) The applicant that has not received an ICDBG grant over the 
longest period of time.
    (B) The applicant that has received the fewest ICDBG dollars since 
the inception of the program.
    (C) The project that would benefit the highest percentage of low 
and moderate income persons.
    (v) Alaska Office
    (A) The applicant that has not received an ICDBG grant over the 
longest period of time.
    (B) The project that would benefit the highest percentage of low 
and moderate income persons.
    (C) The project that would benefit the most low and moderate income 
persons.
    (c) Pre-award requirements.
    (1) Successful applicants may be required to provide supporting 
documentation concerning the management, maintenance, operation, or 
financing of proposed projects before a grant agreement can be 
executed. Applicants will normally be given no less than thirty (30) 
calendar days to respond to such requirements. In the event that no 
response or an insufficient response is made within the prescribed time 
period, the Area ONAP may determine that the applicant has not met the 
requirements and the grant offer may be withdrawn. The Area ONAPs shall 
require supporting documentation in those instances where:
    (i) Specific questions remain concerning the scope, magnitude, 
timing, or method of implementing the project; or
    (ii) The applicant has not provided information verifying the 
commitment of other resources required to complete, operate, or 
maintain the proposed project.
    (2) New projects may not be substituted for those originally 
proposed in the application.
    (3) If the required conditions are not met within the prescribed 
time, HUD may unilaterally rescind the grant award.
    (4) Grant amounts allocated for applicants unable to meet pre-award 
requirements will be awarded in accordance with Sections VIII, IX, and 
X of this NOFA.

VI. General Threshold Requirements

    (a) General. Two types of general thresholds are set forth in 24 
CFR 953.301(a): those that relate to applicants, and those that address 
the overall community development appropriateness of the project(s) 
included in the application. Project-specific thresholds are set forth 
in 24 CFR 953.302.
    (b) Applicant thresholds. (1) General. Applicant thresholds focus 
on the administrative capacity of the applicant to undertake the 
proposed project, on its past performance in the ICDBG program, and on 
its provision of housing assistance to low and moderate income tribal 
members.
    (2) Applicant-Specific Thresholds: Capacity. The Area ONAP will 
assume, absent evidence to the contrary, that the applicant possesses, 
or can obtain the managerial, technical or administrative capability 
necessary to carry out the proposed project. The application should 
address who will administer the project and how the applicant plans to 
handle the technical aspects of executing the project. If the Area ONAP 
determines, based on substantial evidence (which could include 
information provided by the most recent risk analysis conducted by the 
Area ONAP), that the applicant does not have or cannot obtain the 
capacity to undertake the proposed project, the application will not 
receive further consideration.
    (3) Applicant-Specific Thresholds: Performance. (i) Community 
development. (A) If an applicant has previously participated in the 
ICDBG Program, the Area ONAP shall determine whether the applicant has 
performed adequately in grant administration and management. This 
determination will include an evaluation of the most recent RADAR (Risk 
Analysis and Determination for Allocation of Resources) conducted by 
the Area ONAP for the applicant. The applicant is presumed to be 
performing adequately unless the Area ONAP makes a performance 
determination to the contrary during periodic evaluations.
    (B) Where an applicant was found to be performing inadequately, the 
Area ONAP shall determine whether the applicant has corrected the 
deficiency or is following a schedule to correct performance to which 
the applicant and the Area ONAP have agreed. In cases of previously 
documented deficient performance, the Area ONAP must determine that the 
applicant has taken appropriate corrective action to improve its 
performance prior to the application due date.
    (C) The Area ONAP will inform in writing any potential applicant 
which has been determined not to meet this performance threshold no 
later than 30 days prior to the application due date. If the 
performance threshold is not met as of the application submission 
deadline, an application will not be accepted for rating and ranking.
    (ii) Housing assistance. (A) The applicant is presumed not to have 
taken actions to impede the provision of housing assistance for low and 
moderate income members of the tribe or village. Any action taken by 
the applicant to prevent or obstruct the provision or operation of 
assisted housing for low and moderate income persons shall be evaluated 
in terms of whether it constitutes inadequate performance by the 
applicant. If an applicant has established or joined an Indian Housing 
Authority (IHA), and this IHA has obtained housing assistance from HUD, 
the applicant's compliance with the obligations and responsibilities to 
the IHA set forth in the tribal ordinance which was the basis for the 
establishment or joining of the IHA will be a performance 
consideration.
    (B) An applicant will not be held accountable for the poor 
performance of its IHA unless this inadequate performance is found to 
be a direct result of the applicant's action or inaction. Applicants 
which are members of ``umbrella'' IHAs will be judged only on their 
individual performance and will not be held accountable for the poor 
performance of other tribes that are members of the IHA.
    (C) If an applicant has received ICDBG funds for the provision of 
new housing through a subrecipient, the Area ONAP will consider the 
following in making its determination regarding housing assistance 
performance:
    (1) Whether the proposed units were constructed;
    (2) Whether housing assistance was provided to the beneficiaries 
identified in the funded application, and if not, why not;
    (3) Whether the applicant followed the provisions of its housing 
plan and procedures; and,
    (4) Whether there were sustained complaints from tribal members 
regarding provision and/or distribution of ICDBG housing assistance.
    (D) The Area ONAP will inform in writing any potential applicant 
which has been determined not to meet the housing assistance 
performance

[[Page 17982]]

threshold no later than 30 days prior to the application deadline.
    (4) Audits. The thresholds described in paragraphs (b)(2) and 
(b)(3) of this section require the applicant to meet the following 
performance criteria:
    (i) The applicant cannot have an outstanding ICDBG obligation to 
HUD or an ICDBG program that is in arrears, or it must have agreed to a 
repayment schedule. An applicant that has an outstanding ICDBG 
obligation that is in arrears, or one that has not agreed to a 
repayment schedule, will be disqualified from the current competition 
and from subsequent competitions until the obligations are current. If 
a grantee that was current at the time of application submission 
becomes delinquent during the review period, the application may be 
rejected.
    (ii) The applicant cannot have an overdue or unsatisfactory 
response to an audit finding. If there is an overdue or unsatisfactory 
response to an audit finding, the applicant will be disqualified from 
the current and subsequent competitions until the applicant has taken 
final action necessary to close the audit finding. The Area ONAP 
administrator may provide exceptions to this disqualification in cases 
where the applicant has made a good faith effort to clear the audit 
finding. An exception may be granted when funds are due HUD or an ICDBG 
program as a result of a finding only when a satisfactory arrangement 
for repayment of the debt has been made and payments are current.
    (c) Community Development Appropriateness. In order to rate and 
rank a project contained in an application that has passed the 
screening tests outlined in Section V. of this NOFA, Area ONAPs must 
determine that the proposed project meets the community development 
appropriateness thresholds set forth below:
    (1) Costs are reasonable. The project must be described in 
sufficient detail so that the Area ONAP can determine:
    (i) That costs are reasonable; and,
    (ii) That the funds requested from the ICDBG program and all other 
sources are adequate to complete the proposed activity(ies) described 
in the application.
    (2) Project is Appropriate. The project is appropriate for the 
intended use.
    (3) Project is Usable or Achievable. The project is usable or 
achievable in a timely manner, generally within a two year period. The 
timetable for project implementation and completion must be set forth 
on the form HUD 4125--Implementation Schedule, included in the 
application. A period of more than two years is acceptable in certain 
circumstances, if it is established that such circumstances are beyond 
the applicant's control.

VII. Summary of Selection System Criteria and Point Awards

------------------------------------------------------------------------
                                                                 Maximum
                                                                 points 
------------------------------------------------------------------------
                  Housing (Section VIII. of this NOFA)                  
------------------------------------------------------------------------
(a) Rehabilitation                                                      
(1) Project Need and Design                                             
(i) % of funds for standard rehab.............................        20
(ii) applicant's selection criteria...........................        10
(iii) housing survey..........................................        15
(2) Planning and Implementation                                         
(i) rehabilitation policies                                             
(A) rehabilitation standards..................................         5
(B) selection policies and procedures.........................        10
(C) project implementation policies and procedures............        10
(ii) post rehab maintenance...................................         5
(iii) cost estimates..........................................        15
(iv) cost effectiveness.......................................         5
(3) Leveraging................................................         5
---------------------------------------------------------------         
      Total points............................................       100
                                                               ---------
(b) Land to Support New Housing                                         
(1) Project Need..............................................        40
(2) Planning and Implementation                                         
(i) suitability of the land...................................        20
(ii) housing resources........................................        10
(iii) supportive services.....................................         5
(iv) commitment of households.................................         5
(v) land to trust status......................................         5
(vi) infrastructure commitment................................        10
(vii) land meets need and is reasonably priced................         5
                                                               ---------
      Total points............................................       100
                                                                        
(c) New Housing Construction                                            
(1) Project Need and Design                                             
(i) IHA member/assistance.....................................        15
(ii) housing policies and plan................................        20
(iii) beneficiary identification..............................        10
(2) Planning and Implementation                                         
(i) occupancy standards.......................................        10
(ii) site acceptability.......................................        15
(iii) energy conservation design..............................         5
(iv) housing survey...........................................        10
(v) cost effectiveness........................................         5
(3) Leveraging................................................        10
                                                               ---------
      Total points............................................       100
------------------------------------------------------------------------
             Community Facilities (Section IX. of this NOFA)            
------------------------------------------------------------------------
(a) Infrastructure                                                      
(1) Project Need and Design                                             
(i) meets an essential need...................................        20
(ii) benefits the neediest....................................        15
(iii) provides infrastructure/health and safety...............        25
(2) Planning and Implementation                                         
(i) maintenance and operation plan............................        15
(ii) appropriate and effective design scale and cost..........        15
(3) Leveraging................................................        10
                                                               ---------
      Total points............................................       100
                                                                        
(b) Buildings                                                           
(1) Project Need and Design                                             
(i) meets an essential need...................................        20
(ii) benefits the neediest....................................        10
(iii) provides building/health and safety.....................        25
(iv) multi-use/multi-benefit..................................         5
(2) Planning and Implementation                                         
(i) maintenance and operation plan............................        15
(ii) appropriate and effective design scale and cost..........        15
(3) Leveraging................................................        10
                                                               ---------
      Total points............................................       100
------------------------------------------------------------------------
             Economic Development (Section X. of this NOFA)             
------------------------------------------------------------------------
(a) Economic Development                                                
(1) Organization..............................................         8
(2) Project Success                                                     
(i) market analysis...........................................        15
(ii) management capacity......................................        15
(iii) financial analysis......................................        15
(3) Leveraging................................................        12
(4) Jobs                                                                
(i) ICDBG cost/job............................................        15
(ii) quality of jobs/training.................................         5
(5) Additional considerations.................................        15
                                                               ---------
      Total points............................................       100
------------------------------------------------------------------------

VIII. Project Specific Thresholds and Selection Criteria for 
Housing

    (a) Specific threshold for housing category projects. The applicant 
shall provide an assurance that households that have been evicted from 
HUD assisted housing within the past five years will not be assisted by 
the proposed project except in emergency situations. The Area ONAP 
Administrator will review each emergency situation proposed by an 
applicant on a case-by-case basis to determine whether an exception is 
warranted.
    (b) Rehabilitation Thresholds and Grant Limits. (1) Thresholds. All 
applicants for housing rehabilitation grants shall adopt rehabilitation 
standards and rehabilitation policies prior to submitting an 
application. These standards and policies must be submitted with the 
application. The applicant shall provide an assurance that:
    (i) Any house to be rehabilitated will be the permanent non-
seasonal residence of the occupants; the residents will live in the 
unit at least nine months per year.
    (ii) Houses designated for eventual replacement will only receive 
repairs essential for the health and safety of the occupants.

[[Page 17983]]

    (iii) Project funds will be used to rehabilitate HUD assisted 
houses only when the tenant/homeowner's payments are current or the 
tenant/homeowner is current in a repayment agreement that is subject to 
approval by the Area ONAP. In emergency situations the Area ONAP 
administrator may grant exceptions to this requirement on a case-by-
case basis.
    (iv) Houses that have received comprehensive rehabilitation 
assistance from any ICDBG or other Federal grant program within the 
past 8 years will not be assisted with ICDBG funds to make the same 
repairs if the repairs are needed as a result of abuse or neglect.
    (2) Grant limits. Rehabilitation grant limits for each Area ONAP 
jurisdiction are as follows:

(i) Eastern/Woodlands...........................................$15,000
(ii) Southern Plains............................................$20,000
(iii) Northern Plains...........................................$33,500
(iv) Southwest..................................................$35,000
(v) Northwest...................................................$25,000
(vi) Alaska.............................Lesser of $45/sq.ft. or $35,000

    (c) Selection Criteria for Rehabilitation Projects.
    (1) Project Need and Design. (45 points)
    (i) The percentage of ICDBG funds committed to bring the houses to 
be assisted up to a standard condition as defined by the applicant. 
Administrative, planning, and technical assistance expenditures are 
excluded in computing the percentage of ICDBG funds committed to bring 
the houses up to a standard condition. The percentage of ICDBG funds 
not used to bring the houses up to a standard condition must be used 
for emergency repairs, demolition of substandard units or another 
purpose closely related to the housing rehabilitation project.
    Percentage of ICDBG funds committed to bring houses to be assisted 
up to a standard condition:

91-100%.......................................................20 points
81-90.9%......................................................15 points
80.9 and less..................................................0 points

    (ii) The applicant's selection criteria which are included in the 
application give first priority to the neediest households. 
``Neediest'' is defined as households whose houses are in the greatest 
disrepair (but still suitable for rehabilitation treatment) in the 
project area, or very low-income households.

YES...........................................................10 points
NO.............................................................0 points

    (iii) (A) Documentation of project need with a housing survey of 
all of the houses to be rehabilitated with ICDBG funds. This survey 
should include standard housing data on each house surveyed (e.g., age, 
size, type, number of rooms, number of habitable rooms, number of 
bedrooms/sleeping rooms, type of heating). The survey should indicate 
the deficiencies for each house. A definition of ``suitable for 
rehabilitation'' must be included. At a minimum, this definition must 
not include houses that need only minor repairs, or houses that need 
such major repairs that rehabilitation is structurally or financially 
infeasible.
    (B) The application contains all the required survey data and the 
required definition of ``suitable for rehabilitation.'' (15 points)
    (C) The application does not contain the required definition of 
``suitable for rehabilitation'' and/or all the survey data, but does 
contain sufficient data to enable the project to proceed effectively. 
(10 points)
    (D) The application does not contain survey data or the survey data 
it does contain is not sufficient to enable the project to proceed 
effectively. (0 points)
    (2) Planning and Implementation. (50 points)
    (i) Rehabilitation Policies and Procedures including:
    (A) Adopted rehabilitation standards. The rehabilitation standards 
adopted by the applicant will ensure that after rehabilitation the 
houses assisted will be in a standard condition.

YES............................................................5 points
NO.............................................................0 points

    (B) Rehabilitation selection policies and procedures. (1) The 
rehabilitation selection policies and procedures contained in the 
application include:
    (i) Property selection standards;
    (ii) Cost limits;
    (iii) Type of financing (e.g., loan or grant);
    (iv) Homeowner costs and responsibilities;
    (v) Procedures for selecting households to be assisted; and,
    (vi) Income verification procedures.
    (2) The application contains all the rehabilitation selection 
policies and procedures listed above. (10 points)
    (3) The application does not contain all the rehabilitation 
selection policies and procedures listed above, but contains sufficient 
data to enable the project to proceed effectively or the application 
contains all the rehabilitation selection policies and procedures 
listed above, but in insufficient detail. (5 points)
    (4) The application does not contain the rehabilitation selection 
policies and procedures listed above or if it does contain policies and 
procedures, they are not sufficient to enable the project to proceed 
effectively. (0 points)
    (C) Project implementation policies and procedures. (1) These 
policies and procedures must include a description of the following 
items:
    (i) The qualifications which will be required of the inspector;
    (ii) The inspection procedures to be used;
    (iii) The procedures to be used to select the contractor or 
contractors;
    (iv) The manner in which the households to be assisted will be 
involved in the rehabilitation process;
    (v) How disputes between the households to be assisted, the 
contractors and the applicant will be resolved; and, if applicable,
    (vi) The repayment provisions which will be required if sale of the 
assisted house occurs prior to 5 years after the rehabilitation work 
has been completed.
    (2) The application contains all the policies and procedures listed 
above, and they will enable the project to be effectively implemented. 
(10 points)
    (3) The application contains some but not all of the policies and 
procedures listed above and these policies and procedures are 
sufficient for the project to proceed effectively. (5 points)
    (4) The application does not contain the policies and procedures 
listed above. (0 points)
    (ii) Post rehabilitation maintenance policies that address 
counseling and training assisted households on maintenance. (A) The 
policies included in the application contain a well-planned counseling 
and training program. Training will be provided for assisted 
households, and provision is made for households unable to do their own 
maintenance (e.g., elderly and persons with disabilities).
    (B) The policies include follow-up inspections after rehabilitation 
is completed to ensure the house is being maintained. (5 points)
    (C) The policies contain a well-planned home maintenance training 
and counseling program but fail to adequately address all of the items 
listed above. (3 points)
    (D) The application does not contain a well-planned home 
maintenance training and counseling program. (0 points)
    (iii) Quality of cost estimates. (A) Cost estimates have been 
prepared by a qualified individual (Qualifications of the estimator 
must be included in the application). Costs of rehabilitation are 
documented on a per house basis and are supported by a work write-up 
for each house to be assisted. The work write-ups are based upon making 
those repairs necessary to bring the houses to a standard condition in 
a manner consistent with adopted construction codes and requirements. 
The write-ups must be submitted with the application.

[[Page 17984]]

If national standards (e.g., the Uniform Building Code) have been 
locally adopted as the construction codes and requirements, they must 
be referenced. If locally developed and adopted codes and requirements 
are used, they must be submitted. (15 points)
    (B) Cost estimates have been prepared for each house to be 
rehabilitated to determine the total rehabilitation cost. The cost 
estimates are included in the application. Costs to rehabilitate each 
house are documented by a deficiency list. (12 points)
    (C) Cost estimates have been prepared and are included in the 
application but the estimates are based on surveys and not on 
individual house deficiency lists. (5 points)
    (D) Cost estimates are not included in the application or the basis 
for the cost estimates included is inappropriate or not provided. (0 
points)
    (iv) Cost effectiveness of the rehabilitation program. (A) This is 
a measure of how efficiently and effectively funds will be used under 
the proposed program. Applicants must demonstrate how the proposed 
rehabilitation will bring the houses to be assisted to a standard 
condition in an efficient and cost effective manner.
    (B) Rehabilitation project is cost effective. (5 points)
    (C) Rehabilitation project is not cost effective. (0 points)
    (3) Leveraging. (5 points)
    Points under this component will be awarded in a manner consistent 
with the definition of ``Leverage'' included in this NOFA and the 
following breakdown:

------------------------------------------------------------------------
                  Non-ICDBG % of project cost                    Points 
------------------------------------------------------------------------
25 and over...................................................         5
20-24.9.......................................................         4
15-19.9.......................................................         3
10-14.9.......................................................         2
 5-9.9........................................................         1
 0-4.9........................................................         0
------------------------------------------------------------------------

    (d) Thresholds for Land to Support New Housing. (1) The application 
contains information and documentation which establishes that there is 
a reasonable ratio between the number of net usable acres to be 
acquired and the number of low and moderate income households with 
documented housing needs.
    (2) Housing assistance needs must be clearly demonstrated and 
documented with either a survey that identifies the households to be 
served, their size, income levels and the condition of current housing 
or an IHA approved waiting list. The survey or waiting list must be 
submitted with the application.
    (e) Selection Criteria for Land to Support New Housing.
    (1) Project Need and Design. (40 Points)
Information included in the application establishes that:
    (i) The applicant has no suitable land for the construction of new 
housing and the necessary infrastructure and amenities for this 
housing. (40 points); or,
    (ii) The applicant has land suitable for housing construction and 
needed infrastructure and amenities, but the land is officially 
dedicated to another purpose. (30 points); or,
    (iii) The applicant will be acquiring land for housing construction 
and the construction of needed infrastructure and amenities for both 
new and existing housing. (25 points); or,
    (iv) The applicant will be acquiring land for the construction of 
amenities for existing housing. (15 points); or,
    (v) The reason for the land acquisition does not meet any of the 
criteria listed above. (0 points)
    (2) Planning and Implementation. (60 points)
    (i) Suitability of land to be acquired. A preliminary investigation 
has been conducted by a qualified entity independent of the applicant. 
Based on this investigation (which must be submitted with the 
application), the land appears to meet all applicable requirements:
    (A) Soil conditions appear to be suitable for individual and/or 
community septic systems or other acceptable methods for waste water 
collection and treatment have been identified.
    (B) The land has adequate:
    (1) Availability of drinking water;
    (2) Access to utilities;
    (3) Vehicular access;
    (4) Drainage;
    (C) The land appears to comply with environmental requirements. 
Future development costs are expected to be consistent with other 
subdivision development costs in the area (subdivision development 
costs include the costs of the land, housing construction, water and 
sewer, electrical service, roads, and drainage facilities if required).

YES...........................................................20 points
NO.............................................................0 points

    (ii) Housing resources. (A) Evidence of a conditional commitment 
for at least 25 percent of the housing units to be built on the land 
proposed for acquisition or evidence that an approvable application for 
these units has been submitted has been included in the application. 
(10 points)
    (B) The evidence required for the award of 10 points has not been 
included in the application. (0 points)
    (iii) Availability/accessibility of supportive services and 
employment opportunities. Documentation is provided in the application 
to indicate that upon completion of construction of the housing to be 
built on the land to be acquired, fire and police protection will be 
available to the site and medical and social services, schools, 
shopping, and employment opportunities will be accessible from the site 
according to the community's established norms.

YES............................................................5 points
NO.............................................................0 points

    (iv) Commitment that households will move into the new housing. 
Documented commitment from households that they will move into the new 
housing to be built on the land to be acquired is included in the 
application.

YES............................................................5 points
NO.............................................................0 points

    (v) Land to trust status. (A) Land can be taken into trust or 
provisions have been made for taxes and fees. There must be a written 
assurance from the BIA that the land will be taken into trust or the 
applicant must demonstrate the financial capability and commitment to 
pay the property taxes and fees on the land for any period of time 
during which it anticipates it will own the property in fee. This 
commitment must be in the form of a resolution by the governing body of 
the applicant which indicates that the applicant will pay or guarantee 
that all taxes and fees on the land will be paid.
    (B) Documentation from the BIA that land can be taken into trust or 
the required governing body resolution is included in the application. 
(5 points)
    (C) Either the assurance or the resolution are missing from the 
application or they are inadequate. (0 points)
    (vi) Infrastructure commitment. (A) A plan or commitment for any 
infrastructure needed to support the housing to be built on the land to 
be acquired has been included in the application. The plan or 
commitment must address water, waste water collection and treatment, 
electricity, roads, and drainage facilities necessary to support the 
housing to be developed.
    (B) Financial commitments for all necessary infrastructure have 
been included in the application or documentation is included which 
demonstrates that all necessary infrastructure is in place. (10 points)
    (C) A plan for the provision of all necessary infrastructure is 
included in

[[Page 17985]]

the application but all financial commitments required to implement the 
plan have not been submitted. (5 points)
    (D) Neither a financial commitment or plan are included in the 
application. (0 points)
    (vii) The extent to which the site proposed for acquisition meets 
the housing needs of the applicant and is reasonably priced. The 
application includes documentation which indicates that the applicant 
has examined and assessed the appropriateness of alternative sites and 
which demonstrates that the site proposed for acquisition best meets 
the documented housing needs of tribal households. The application must 
include comparable sales data which shows that the cost of the land 
proposed for acquisition is reasonable.

Yes............................................................5 points
No.............................................................0 points

    (f) Thresholds for New Housing Construction. The following 
thresholds and the selection criteria set forth in paragraph (g) of 
this section apply to new housing construction to be implemented 
through a Community-Based Development Organization (CBDO) as provided 
for under 24 CFR 953.204. Please note that all households to be 
assisted under a new housing construction project must be of low or 
moderate income status.
    (1) New housing construction can only be implemented through a 
Community-Based Development Organization (CBDO). Eligible CBDOs are 
described in 24 CFR 953.204(c). The applicant must provide an assurance 
that it understands this requirement.
    (2) Documentation which supports the following determinations must 
be included in the application:
    (i) No other housing is available in the immediate reservation area 
that is suitable for the households to be assisted;
    (ii) No other funding sources can meet the needs of the 
household(s) to be served.
    (iii) The house occupied by the household to be assisted is not in 
standard condition and rehabilitation is not economically feasible, or 
the household is currently in an overcrowded house [sharing house with 
another household(s)], or the household to be assisted has no current 
residence.
    (3) All applicants for new housing construction projects shall 
adopt construction standards and construction policies prior to 
submitting an application. Applicants must identify the building code 
to be used when constructing the houses and must document that this 
code has been adopted. The building code may be a tribal building code 
or a nationally recognized model code. If it is a tribal code it must 
regulate all of the areas and subareas identified in 24 CFR 200.925b, 
and it must be reviewed and approved by the Area ONAP. If the code is 
recognized nationally, it must be the latest edition of one of the 
codes incorporated by reference in 24 CFR 200.925c.
    (4) The applicant must provide an assurance that any house to be 
constructed will be the permanent non-seasonal residence of the 
household to be assisted; this household must live in the house at 
least nine months per year.
    (g) Selection Criteria for New Housing Construction.
    (1) Project Need and Design. (45 points)
    (i) IHA member/assistance. (A) The application includes 
documentation which establishes that the applicant either is not served 
by an Indian Housing Authority (IHA), or if it is a member of an 
umbrella IHA, this IHA has not provided assistance to the applicant in 
a substantial period of time, or the IHA serving the applicant has not 
received HUD Public and Indian Housing new construction assistance in a 
substantial period of time due to limited HUD appropriations. The 
period of time during which the IHA serving the applicant has not 
received funding for inadequate or poor performance by the applicant 
does not count towards the period of time that no assistance has been 
provided by HUD.
    (B) No assistance from IHA for 10 years or longer. (15 points)
    (C) No assistance from IHA for 6-9 years, 11 months. (10 points)
    (D) No assistance from IHA for 0-5 years, 11 months. (0 points)
    (ii) Adopted housing construction policies and plan. (A) The plan 
must include a description of the proposed CBDO and its relationship 
(or proposed relationship) to the applicant. In addition, the policies 
and plan must include:
    (1) A selection system that gives priority to the neediest 
households. Neediest shall be defined as households whose current 
residences are in the greatest disrepair, or very low-income 
households, or households without permanent housing.
    (2) A system effectively addressing long-term maintenance of the 
constructed houses.
    (3) Estimated costs and identification of the entity responsible 
for paying utilities, fire hazard insurance and other normal 
maintenance costs.
    (4) Policies governing ownership of the houses, including the 
status of the land.
    (5) Description of a comprehensive plan or approach being 
implemented by the tribe to meet the housing needs of its members.
    (6) Policies governing disposition or conversion to non-dwelling 
uses of substandard houses that will be vacated when a replacement 
house is provided.
    (B) The policies and plan include all of the information listed 
above. (20 points)
    (C) The policies and plan do not include all of the information 
listed above, but do include sufficient information to allow the 
project to proceed effectively or, all of the information is included, 
but in insufficient detail. (10 points)
    (D) The information included in the application is not sufficient 
to meet the requirements for the award of 10 points. (0 points)
    (iii) Beneficiary identification. (A) Households to be assisted are 
identified in the application and their income eligibility and 
household size are documented. (10 points)
    (B) Households to be assisted are not identified or, if identified, 
their income eligibility and household size are not documented. (0 
points)
    (2) Planning and Implementation. (45 points)
    (i) Occupancy Standards. (A) The proposed housing will be designed 
and built according to adopted reasonable standards that govern the 
size of the housing in relation to the size of the occupying household 
(minimum and maximum number of persons allowed for the number of 
sleeping rooms); the minimum and maximum square footage allowed for 
major living spaces (bedrooms, living room, kitchen and dining room). 
The standards must be submitted with the application.
    (B) Applicant has adopted reasonable occupancy standards which are 
included in the application. (10 points)
    (C) Applicant has not adopted reasonable occupancy standards or the 
standards were not included in the application. (0 points)
    (ii) Site Acceptability. (A) The applicant (or the proposed 
beneficiary household) has control of the land upon which the houses 
will be built. The application includes documentation that all housing 
sites are in trust or documentation from the BIA that the sites will be 
taken into trust within one year of the date of the ICDBG approval 
notification. If the sites are not in trust by the date of ICDBG 
approval notification, documentation that they are in trust must be 
provided to the Area

[[Page 17986]]

ONAP before ICDBG funds may be obligated for construction.
    (B) A preliminary investigation of the site(s) has been conducted 
by a qualified entity independent of the applicant. Based on this 
investigation (which must be included in the application) the site(s) 
appear to meet all applicable requirements:
    Soil conditions appear to be suitable for individual or community 
septic systems or other acceptable methods for waste water collection 
and treatment have been identified;
    (1) Each site has adequate:
    (2) Availability of drinking water
    (3) Access to utilities
    (4) Vehicular access
    (4) Drainage;
    (5) Each site appears to comply with environmental requirements.

YES...........................................................15 points
NO.............................................................0 points

    (iii) Energy Conservation Design. The application includes 
documentation which demonstrates that the proposed houses have been 
designed in a manner which will ensure that energy use will be no 
greater than that for comparable houses in the same general geographic 
area that have been constructed in accordance with applicable state 
energy conservation standards for residential construction. Any special 
design features, materials, or construction techniques which enhance 
energy conservation must be described.

YES............................................................5 points
NO.............................................................0 points

    (iv) Housing Survey. (A) The applicant has completed a survey of 
housing conditions and housing needs of its tribal members. This survey 
was completed within the twelve month period prior to the application 
submission deadline (or if an earlier survey, it was updated during 
this time period). The survey must be submitted with the application. 
The following descriptive data is included for each household surveyed:
    (1) Size of the household, inc. age and gender of any children.
    (2) Is the household occupying permanent housing or is it homeless?
    (3) Annual household income.
    (4) Owner or renter.
    (5) Number of habitable rooms and number of sleeping rooms.
    (6) Physical condition of the house--standard/substandard. If 
substandard, is it suitable for rehabilitation? A definition of 
``suitable for rehabilitation'' must be included.
    (7) Number of distinct households occupying the house/degree of 
overcrowding.
    (8) If there is a need for a replacement house, what are the 
housing preferences of the household, e.g. ownership or rental; 
location; manufactured or stick-built.
    (B) An acceptable survey was submitted. (10 points)
    (C) The survey submitted was not acceptable or no survey was 
submitted. (0 points)
    (v) Cost effectiveness of new housing construction. (A) This is a 
measure of how efficiently and effectively funds will be used under the 
proposed program. Applicants must demonstrate how the proposed housing 
activities will be accomplished in an efficient and cost effective 
manner.
    (B) The applicant has demonstrated that the proposed activities are 
cost effective. (5 points)
    (C) The applicant has not demonstrated that the proposed activities 
are cost effective. (0 points)
    (3) Leveraging. (10 points)
    Points under this component will be awarded in a manner consistent 
with the definition of ``Leverage'' included in this NOFA and the 
following breakdown:

------------------------------------------------------------------------
                  Non-ICDBG % of project cost                    Points 
------------------------------------------------------------------------
25 and over...................................................        10
20-24.9.......................................................         8
15-19.9.......................................................         6
10-14.9.......................................................         4
5-9.9.........................................................         2
0-4.9.........................................................         0
------------------------------------------------------------------------

IX. Project Specific Thresholds and Selection Criteria for 
Community Facilities

    (a) Infrastructure Selection Criteria.
    (1) Project Need and Design. (60 points)
    (i) Meets an essential need. (A) The application includes 
documentation which demonstrates that the proposed project meets an 
essential community development need by fulfilling a function that is 
critical to the continued existence or orderly development of the 
community.
    (B) The proposed project will fulfill a function which is critical 
to the continued existence or orderly development of the community. (20 
points)
    (C) The proposed project will fulfill a function which is not 
critical to the continued existence or orderly development of the 
community. (0 points)
    (ii) Benefits the neediest. (A) The proposed project benefits the 
neediest segment of the population, as identified below. Applications 
must include information which demonstrates that income data was 
collected in a statistically reliable and independently verifiable 
manner and that:
    (B) 85 percent or more of the beneficiaries are low and moderate 
income. (15 points)
    (C) Between 75-84.9 percent of the beneficiaries are low and 
moderate income. (10 points)
    (D) Between 55-74.9 percent of the beneficiaries are low and 
moderate income. (5 points)
    (E) Less than 55 percent of the beneficiaries are low and moderate 
income. (0 points)
    (iii) Provides infrastructure/health and safety. (A) The 
application includes documentation which demonstrates that the proposed 
project will provide infrastructure that does not currently exist for 
the area to be served or it will eliminate or substantially reduce a 
health or safety threat or problem or it will replace existing 
infrastructure that no longer functions adequately to meet current 
needs.
    (B) The infrastructure does not exist or the existing 
infrastructure no longer functions or the existing infrastructure does 
not contribute to the elimination of, or causes, a verified health or 
safety threat or problem. (25 points)
    (C) The existing infrastructure no longer functions adequately to 
meet current needs or is unreliable. (20 points)
    (D) The proposed project will replace or supplement existing 
infrastructure which is adequate for current needs but which will not 
meet acknowledged future needs. (12 points)
    (E) The proposed project will replace or supplement existing 
infrastructure which is adequate to meet current needs and future needs 
have not been acknowledged or documented. (0 points)
    (F) If the project is intended to address a health or safety threat 
or problem, the applicant must provide documentation consisting of a 
signed study or letter from a qualified independent authority which 
verifies that:
    (1) A threat to health or safety (or a health or safety problem) 
exists which has caused or has the potential to cause serious illness, 
injury, disease, or death; and,
    (2) The threat or problem can be completely or substantially 
eliminated if the proposed project is undertaken.
    (2) Planning and Implementation. (30 points)
    (i) A viable plan for maintenance and operation. (A) If the 
applicant is to assume responsibility for maintenance and operation of 
the proposed facility, the applicant must adopt a maintenance

[[Page 17987]]

and operation plan which addresses maintenance, repair and replacement 
of items not covered by insurance, and which clearly identifies 
operating responsibilities and resources. This plan and the adopting 
resolution must be included in the application. The plan must identify 
a funding source to ensure that the facility will be properly 
maintained and operated. The resolution adopting the plan must identify 
the total annual dollar amount the applicant will commit.
    (B) If an entity other than the applicant commits to pay for 
maintenance and operation, a letter of commitment which identifies the 
responsibilities the entity will assume and which documents its 
financial ability to assume these responsibilities must be included in 
the application; submission of a maintenance and operation plan is not 
required. Points will only be awarded if the Area ONAP is able to 
determine that the entity is financially able to assume the costs of 
maintenance and operation.
    (C) An acceptable maintenance and operation plan and adopting 
resolution (or letter of commitment) are included in the application. 
(15 points)
    (D) The plan, resolution or the commitment letter have not been 
included in the application or if included they are not acceptable. (0 
points)
    (ii) An appropriate and effective design, scale and cost. (A) The 
application includes information which demonstrates that the proposed 
project is the most appropriate and cost effective approach to address 
the identified need. This information demonstrates that the use of 
existing facilities and resources, and alternatives, including method 
of implementation and cost, have been considered. If only one approach 
is feasible (there are no alternatives to the proposed project), the 
application must include an explanation.
    (B) The required information is included in the application. (15 
points)
    (C) The required information is not included in the application or, 
if included, it is unacceptable. (0 points)
    (3) Leveraging. (10 points)
    Points under this component will be awarded in a manner consistent 
with the definition of ``Leverage'' included in this NOFA and the 
following breakdown:

------------------------------------------------------------------------
                  Non-ICDBG % of project cost                    Points 
------------------------------------------------------------------------
25 and over...................................................        10
20-24.9.......................................................         8
15-19.9.......................................................         6
10-14.9.......................................................         4
5-9.9.........................................................         2
0-4.9.........................................................         0
------------------------------------------------------------------------

    (b) Threshold for Buildings. An applicant proposing a facility 
which would provide health care services funded by the Indian Health 
Service (IHS) must assure that the facility meets all applicable IHS 
facility requirements. It is recognized that tribes that are 
contracting services from the IHS may establish other facility 
standards. These tribes must assure that these standards at least 
compare to nationally accepted minimum standards.
    (c) Selection Criteria for Buildings. (1) Project Need and Design. 
(60 points)
    (i) Meets an essential need. (A) The application includes 
documentation that the proposed building meets an essential community 
development need by providing space so that a service or function which 
is critical to the continued existence or orderly development of the 
community can be provided.
    (B) The proposed building will provide space for a service or 
function which is essential to the continued existence or orderly 
development of the community. (20 points)
    (C) The proposed building will provide space for a service or 
function which is not critical to the continued existence or orderly 
development of the community. (0 points)
    (ii) Benefits the neediest. The proposed project benefits the 
neediest segment of the population, as identified below. Applications 
must include information which demonstrates that income data was 
collected in a statistically reliable and independently verifiable 
manner and that:
    (A) 85 percent or more of the beneficiaries are low and moderate 
income. (10 points)
    (B) Between 75-84.9 percent of the beneficiaries are low and 
moderate income. (8 points)
    (C) Between 55-74.9 percent of the beneficiaries are low and 
moderate income. (5 points)
    (D) Less than 55 percent of the beneficiaries are low and moderate 
income. (0 points)
    (iii) Provides building/health and safety. (A) The application 
includes documentation which demonstrates that the proposed building 
will be used to provide services or functions which are not provided to 
service area beneficiaries or it will replace a building which does not 
meet health or safety standards which is currently being used to 
provide the service or function or it will replace a building which is 
no longer able to provide the space or amenities to meet the current 
need for the services or functions.
    (B) The services or functions to be provided in the proposed 
building do not exist for the service area population or the building 
currently being used does not meet health or safety standards. (25 
points)
    (C) The building to be replaced by the proposed building is not 
able to provide the space or amenities for the services or functions so 
that current needs cannot be entirely met. (20 points)
    (D) The building to be replaced is able to provide adequate space 
and current needs are being met but it cannot provide space for 
acknowledged future needs. (10 points)
    (E) The proposed building is not necessary since current needs and 
acknowledged future needs can be met through the use of existing 
facilities. (0 points)
    (F) If the proposed building is intended to replace an existing 
building which does not meet health or safety standards, the 
application must include documentation consisting of a signed letter 
from a qualified independent authority which specifically identifies 
the standard or standards which are not being met by the existing 
building.
    (iv) Multi-use/multi-benefit. (A) Provides multiple uses or 
multiple benefits, or has services available 24 hours a day. The 
application must show that the proposed building will house more than 
one broad category of activity or that services would be provided out 
of the building 24 hours a day. A written commitment for the use of the 
space must be included in the application. ``Broad category'' means a 
single activity or group of activities which serves a particular group 
of beneficiaries (e.g., senior citizens) or meets a particular need 
(e.g., literacy). No one category of activity will occupy more than 75 
percent of the available space for more than 75 percent of the time. 
Multipurpose buildings do not automatically meet these criteria, nor do 
buildings that provide a variety of activities for one client group.
    (B) The proposed building will provide multiple uses or benefits or 
will have services available 24 hours/day and a commitment for the use 
of the space is included in the application. (5 points)
    (C) The proposed building will not provide multiple benefits or 
services or will not have services available 24 hours a day or the 
application does not include a commitment for the use of the space. (0 
points)
    (2) Planning and Implementation. (30 points)

[[Page 17988]]

    (i) A viable plan for maintenance and operation. (A) If the 
applicant is to assume responsibility for the maintenance and operation 
of the proposed building, the applicant must adopt a maintenance and 
operation plan which addresses maintenance, repair and replacement of 
items not covered by insurance, and which clearly identifies operating 
responsibilities and resources. This plan and the adopting resolution 
must be included in the application. The plan must identify a funding 
source to ensure that the building will be properly maintained and 
operated. The resolution adopting the plan must identify the total 
annual dollar amount the applicant will commit.
    (B) If an entity other than the applicant commits to pay for 
maintenance and operation, a letter of commitment which identifies the 
responsibilities the entity will assume and which documents its 
financial ability to meet these responsibilities must be included in 
the application; submission of a maintenance and operation plan is not 
required. Points will only be awarded if the Area ONAP is able to 
determine that the entity is financially able to assume the costs of 
maintenance and operation.
    (C) An acceptable maintenance and operation plan and adopting 
resolution (or letter of commitment) are included in the application. 
(15 points)
    (D) The plan, resolution or the commitment letter have not been 
included in the application, or if included, they are not acceptable. 
(0 points)
    (ii) An appropriate and effective design, scale and cost. (A) The 
application includes information which demonstrates that the proposed 
building is the most appropriate and cost effective approach to address 
the identified need(s). This information demonstrates that the use of 
existing facilities and resources and alternatives, including method of 
implementation and cost, have been considered. If only one approach is 
feasible (there are no alternatives to the proposed building), the 
application must include an explanation.
    (B) The required information is included in the application. (15 
points)
    (C) The required information is not included in the application or, 
if included, it is unacceptable. (0 points)
    (3) Leveraging. (10 points)
    Points under this component will be awarded based on the definition 
of ``Leverage'' included in this NOFA and the following breakdown:

------------------------------------------------------------------------
                  Non-ICDBG % of Project Cost                    Points 
------------------------------------------------------------------------
25 or more....................................................        10
20-24.9.......................................................         8
15-19.9.......................................................         6
10-14.9.......................................................         4
5-9.9.........................................................         2
0-4.9.........................................................         0
------------------------------------------------------------------------

X. Project Specific Thresholds and Selection Criteria for Economic 
Development

    (a) Thresholds for Economic Development. (1) Economic development 
assistance may be provided only when a financial analysis is provided 
which shows public benefit commensurate with the assistance to the 
business can reasonably be expected to result from the assisted 
project.
    (2) The analysis should also establish that to the extent 
practicable: reasonable financial support will be committed from non-
Federal sources prior to disbursement of Federal funds; any grant 
amount provided will not substantially reduce the amount of non-Federal 
financial support for the activity; not more than a reasonable rate of 
return on investment is provided to the owner; and, that grant funds 
used for the project will be disbursed on a pro-rata basis with amounts 
from other sources. In addition, it must be established that the 
project is financially feasible and has a reasonable chance of success.
    (b) Selection Criteria for Economic Development.
    (1) Organization. (8 points)
    (A) The application contains information and documentation which 
addresses all of the following three elements (Maximum: 8 points):
    (1) The applicant (or entity to be assisted) has an established 
organization system for operation of a business, (e.g., adopted tribal 
ordinances, articles of incorporation, Board of Directors in place, 
tribal department).
    (2) Formal provisions exist for separation of government functions 
from business operating decisions. An operating plan has been 
established and is submitted.
    (3) The Board of Directors consists of persons who have prior 
business experience. A staffing plan has been developed and is 
submitted.
    (B) The application contains all of the first element listed above, 
and some of the items in the second and third elements or, the 
application contains all of the elements listed above, but in 
insufficient detail. The business should be able to operate 
effectively. (Moderate: 5 points)
    (C) The application does not meet the criteria for the award of 
moderate points. (Unsatisfactory: 0 Points)
    (2) Project Success. (45 points)
    The project will be rated on the adequacy and quality of the 
information included in the application which addresses the following 
criteria: ANY PROJECT NOT RECEIVING AT LEAST MODERATE POINTS IN EACH OF 
THE FOLLOWING THREE RATING FACTORS WILL NOT BE CONSIDERED FOR FUNDING.
    (i) Market analysis. (A) A feasibility/market analysis, generally 
not older than two years, which identifies the market and demonstrates 
that the proposed activities are highly likely to capture a fair share 
of the market. The analysis must be submitted with the application. 
(Maximum: 15 points)
    (B) A feasibility/market analysis which identifies the market and 
demonstrates that the proposed activities are reasonably likely to 
capture a fair share of the market. The analysis must be submitted with 
the application. (Moderate: 10 points)
    (C) The submission does not meet the criteria for the award of 
moderate points. (Unsatisfactory: 0 points)
    (ii) Management capacity. (A) A management team with qualifying 
specialized training or technical/managerial experience in the 
operation of a similar business has been identified. Job descriptions 
of key management positions as well as resumes showing qualifying 
specialized technical/managerial training or experience of the 
identified management team must be submitted with the application. 
(Maximum: 15 points)
    (B) A management team with qualifying general business training or 
experience will be hired if the grant is approved. Job descriptions of 
key management positions must be submitted with the application. 
(Moderate: 12 points)
    (C) The submission does not meet the criteria for the award of 12 
points. (Unsatisfactory: 0 points)
    (iii) Financial Analysis of the Business. (A) The financial 
viability of a project will be determined by an analysis of financial 
and other project related information. For all proposed projects, the 
following must be submitted:
    (1) A detailed cost summary for the project;
    (2) Evidence of funding sources;
    (3) Five year operating or cash flow financial projections. If the 
project involves the expansion of an existing business, financial 
statements for the most recent three year period for the

[[Page 17989]]

business must also be submitted with the application (financial 
statements include the balance sheet, income statement and statement of 
retained earnings). For start-up businesses that will not be owned by 
the grantee, current financial or net worth statements of principal 
business owners or officers must also be submitted with the 
application.
    (B) The information derived from the analysis will be reviewed and 
compared to local or national industry standards to assess 
reasonableness of development costs, financial need, profitability, and 
risk as factors in determining overall financial viability. In 
determining whether a project is financially viable, the Area ONAP will 
also consider current and projected market conditions and profitability 
measures such as cash flow return on equity, cash flow return on total 
assets and the ratio of net profit before taxes to total assets. 
Sources of industry standards include Marshall and Swift Publication 
Company, Robert Morris Associates, Dun and Bradstreet, the Chamber of 
Commerce, etc. Local standards may also be used. If one of these 
standards is cited by the applicant, the appropriate data must be 
submitted with the application.
    (C) Based on the analysis:
    (1) The project has an excellent chance of achieving financial 
success. (Maximum: 15 points)
    (2) The project has an average chance of achieving financial 
success. (Moderate: 8 points)
    (3) The project has a minimal prospect of achieving financial 
success. (Unsatisfactory: 0 points)
    (3) Leveraging. Points under this component will be awarded in a 
manner consistent with the definition of ``Leverage'' included in this 
NOFA and the following breakdown:

------------------------------------------------------------------------
                   Non-ICDBG % of Project Cost                    Points
------------------------------------------------------------------------
30% or more.....................................................      12
20-29.9%........................................................       8
10-19.9%........................................................       4
less than 10%...................................................       0
------------------------------------------------------------------------

    (4) Permanent Full-Time Equivalent Job Creation and Training. (20 
points). (A) The total number of permanent full-time equivalent jobs 
expected to be created and/or retained as a result of the project as 
well as a summary of job descriptions must be identified or included in 
the application. Retained jobs will not be counted unless clear 
evidence is provided that these jobs would be lost without the project. 
The number and kind(s) of jobs expected to be available to low and 
moderate income persons must be identified.
    (B) ICDBG cost per job:

$30,000 or less...............................................15 points
$30,001-40,000................................................12 points
$40,001-45,000.................................................8 points
$45,001+.......................................................0 points

    (C) Quality of jobs and/or training targeted to low and moderate 
income persons:
    (1) The jobs offer wages and benefits comparable to area wages and 
benefits for similar jobs, provide opportunity for advancement, and 
teach a transferable skill; OR
    (2) The employer commits to provide training opportunities. A 
description of the planned training program must be submitted with the 
application.

YES............................................................5 points
NO.............................................................0 points

    (5) Additional Considerations. (15 points)
    A project must meet three of the following criteria to receive 15 
points. (Maximum: 15 points)
    (A) Use, improve or expand members' special skills. Special skills 
are those that members have developed through education, training or 
traditional cultural experiences.

YES............................................................5 points
NO.............................................................0 points

    (B) Provide spin-off benefits beyond the initial economic 
development benefits to employees or to the community.

YES............................................................5 points
NO.............................................................0 points

    (C) Provide special opportunities for residents of Federally-
assisted housing.

YES............................................................5 points
NO.............................................................0 points

    (D) Provide benefits to other businesses owned by Indians or Alaska 
natives.
YES............................................................5 points
NO.............................................................0 points

    (E) Loan Repayment/Reuse of ICDBG funds. If the business is not 
tribally owned, at least 50% of the ICDBG assistance to the business 
will be repaid to the grantee within a 10 year period. If the business 
is tribally owned, the tribe agrees (by submission of a tribal 
resolution) within a 10 year period to use funds equal to 50% of the 
ICDBG assistance for eligible activities that meet a national 
objective. These funds should come from the profits of the tribally 
owned business.

YES............................................................5 points
NO.............................................................0 points

XI. Error and Appeals

    Rating panel judgements made within the provisions of this NOFA and 
the program regulations (24 CFR 953) are not subject to claims of 
error. Applicants may bring arithmetic errors in the rating and ranking 
of applications to the attention of an Area ONAP within 30 days of 
being informed of their score. If an Area ONAP makes an arithmetic 
error in the application review and rating process which, when 
corrected, would result in the award of sufficient points to warrant 
the funding of an otherwise approvable project, the Area ONAP may fund 
that project in the next funding round without further competition.

XII. Findings and Certifications

    Paperwork Reduction Act. The information collection requirements 
contained in this Notice have been approved by the Office of Management 
and Budget in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501-3520), and assigned OMB control number 2577-0191. 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.
    Environmental Impact. This NOFA provides funding under, and does 
not alter environmental requirements of regulations in 24 CFR part 953. 
Accordingly, under 24 CFR 50.19(c)(5), this NOFA is categorically 
excluded from environmental review under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321).
    Recipient Compliance with Environmental Requirements. In accordance 
with 24 CFR 953.605, a recipient must comply with the environmental 
review requirements of 24 CFR part 58, including limitations on the 
commitment of project funds before submission of a request for release 
of funds.
    Federalism Executive Order. 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 will provide financial assistance to Indian tribes and Alaska 
native villages, none of its provisions will have an effect on the 
relationship between the Federal Government and the states or their 
political subdivisions.
    Family Executive Order. The General Counsel, as the Designated 
Official for Executive Order 12606, The Family, has determined that the 
policies announced

[[Page 17990]]

in this NOFA would not have the potential for significant impact on 
family formation, maintenance and general well-being and thus not 
subject to review under the Order.
    Prohibition of Advance Disclosure of Funding Decisions. 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 the 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 who have ethics related questions should contact HUD's 
Ethics Law Division (202) 708-3815. (This is not a toll-free number.)
    Economic Opportunities for Low and Very Low Income Persons. All 
applicants are herein notified that the provisions of section 3 of the 
Housing and Urban Development Act of 1968, as amended, and the 
regulations in 24 CFR part 135 are applicable to funding awards made 
under this NOFA. One of the purposes of the assistance is to give to 
the greatest extent feasible, and consistent with existing Federal, 
State, and local laws and regulations, job training, employment, 
contracting and other economic opportunities to section 3 residents and 
section 3 business concerns. Tribes that receive HUD assistance 
described in this part shall comply with the procedures and 
requirements of this part to the maximum extent consistent with, but 
not in derogation of, compliance with section 7(b) of the Indian Self-
determination and Education Assistance Act (25 U.S.C. 450e(b).
    Prohibition Against Lobbying Activities. Applicants for funding 
under this NOFA are subject to the provisions of Section 319 of the 
Department of Interior and Related Agencies Appropriation Act for 
Fiscal Year 1991, 31 U.S.C. Section 1352 (the Byrd Amendment) and to 
the provisions of the Lobbying Disclosure Act of 1995, P.L. 104-65 
(December 19, 1995).
    The Byrd Amendment, which is implemented in regulations at 24 CFR 
Part 87, prohibits applicants for Federal contracts and grants from 
using appropriated funds to attempt to influence Federal Executive or 
legislative officers or employees in connection with obtaining such 
assistance, or with its extension, continuation, renewal, amendment or 
modification. The Byrd Amendment applies to the funds that are the 
subject of this NOFA. Therefore, applicants must file a certification 
stating that they have not made and will not make any prohibited 
payments and, if any payments or agreement to make payments of 
nonappropriated funds for these purposes have been made, a form SF-LLL 
disclosing such payments must be submitted. The certification and the 
SF-LLL are included in the application package.
    The Lobbying Disclosure Act of 1995, P.L. 104-65 (December 19, 
1995), which repealed Section 112 of the HUD Reform Act and resulted in 
the elimination of the regulations at 24 CFR Part 86, requires all 
persons and entities who lobby covered Executive or Legislative Branch 
officials to register with the Secretary of the Senate and the Clerk of 
the House of Representatives and file reports concerning their lobbying 
activities. IHAs established by an Indian tribe as a result of the 
exercise of the tribe's sovereign power are excluded from coverage of 
the Byrd Amendment, but IHAs established under State law are not 
excluded from the statute's coverage.
    Section 102 of the HUD Reform Act--Documentation, Access, and 
Disclosure. 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 (57 FR 1942), 
HUD published 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:
    (a) 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.
    (b) 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.

Catalog of Federal Domestic Assistance Number.

(The Catalog of Federal Domestic Assistance Number for the ICDBG 
Program is 14.862)

    Dated: April 2, 1997.
Kevin Emanuel Marchman,
Acting Assistant Secretary for Public and Indian Housing.
[FR Doc. 97-9307 Filed 4-10-97; 8:45 am]
BILLING CODE 4210-33-P