[Federal Register Volume 62, Number 75 (Friday, April 18, 1997)]
[Notices]
[Pages 19208-19214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10124]



[[Page 19207]]

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Part IV





Department of Housing and Urban Development





_______________________________________________________________________



Funding Availability, Family Unification Program, Fiscal Year 1997; 
Notice

  Federal Register / Vol. 62, No. 75 / Friday, April 18, 1997 / 
Notices  

[[Page 19208]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4194-N-01]


Notice of Funding Availability, Family Unification Program, 
Fiscal Year 1997

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

ACTION: Notice of Funding Availability (NOFA) for Fiscal Year (FY) 
1997.

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

SUMMARY: Purpose. This notice announces the availability of FY 1997 
funding for section 8 rental certificates under the Family Unification 
Program, which will provide rental assistance for approximately 6,400 
families. The purpose of the Family Unification Program is to provide 
housing assistance to families for whom the lack of adequate housing is 
a primary factor in the separation, or imminent separation, of children 
from their families.
    Available Funds. Up to $ 58.8 million in one-year budget authority.
    Eligible Applicants. Housing agencies (HAs), including Indian 
Housing Authorities (IHAs), are invited to submit applications for 
housing assistance. Applications from twenty-four HAs that were 
included in the FY 1996 lottery and were not selected for funding in FY 
1996 because of insufficient funds will be funded with FY 1997 funds. 
HUD will fund applications for Section 8 rental certificates from these 
HAs for approximately 1,100 units at an estimated cost of $10 million 
of one-year budget authority from FY 1997 funds. The balance of 
available funding of approximately $ 48.8 million in one-year budget 
authority will be made available for a new competition under this NOFA.
    For FY 1997, HUD has determined that there are sufficient funds 
available to conduct a national lottery. Therefore, unlike in prior 
fiscal years when HAs within sixteen selected states only were eligible 
to apply, for FY 1997, any HA nationwide that currently administers a 
Section 8 certificate program or rental voucher program is eligible to 
apply and may be eligible for the lottery selection process for the FY 
1997 Section 8 Family Unification Program.

DATES: The application deadline for the Family Unification program NOFA 
is June 17, 1997, 3:00 p.m., local time.
    This application deadline is firm as to date and hour. In the 
interest of fairness to all competing HAs, HUD will not consider any 
application that is received after the application deadline. Applicants 
should take this practice into account and make early submission of 
their materials to avoid any risk of loss of eligibility brought about 
by unanticipated delays or other delivery-related problems. HUD will 
not accept, at any time during the NOFA competition, application 
materials sent via facsimile (FAX) transmission.

ADDRESSES: The local HUD State or Area Office, Attention: Director, 
Office of Public Housing, is the official place of receipt for all 
applications, except applications from Indian Housing Authorities 
(IHAs). The local HUD Native American Programs Office, Attention: 
Administrator, Office of Native American Programs, is the place of 
official receipt for IHA applications. For ease of reference, the term 
``HUD Office'' will be used throughout this NOFA to mean the HUD State 
Office, HUD Area Office, and the HUD Native American Programs Office. 
If a particular type of HUD Office needs to be identified, e.g., the 
HUD Native American Programs Office, the appropriate office will be 
used.

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

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

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

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. 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.
    The related NOFAs that the Department has published are as follows: 
the NOFA for the Continuum of Care Assistance, published on April 8, 
1997 (62 FR 17024), the NOFA for the Section 8 Mainstream Housing 
Opportunities for Persons with Disabilities, published on April 10, 
1997 (62 FR 17666), and the NOFA for the Rental Assistance for Persons 
with Disabilities in Support of Designated Housing Allocation Plans, 
published on April 10, 1997 (62 FR 17672). The related NOFAs that the 
Department expects to publish within the next few weeks include: the 
NOFA for Housing Opportunities for Persons with Aids; the NOFA for the 
Supportive Housing for the Elderly; the NOFA for Supportive Housing for 
Persons with Disabilities; and the NOFA for Section 8 Service 
Coordinators.
    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.

Family Self-Sufficiency (FSS) Program Requirement

    Unless specifically exempted by HUD, all rental voucher or rental 
certificate funding reserved in FY 1997 (except funding for renewals or 
amendments) will be used to establish the minimum size of an HA's FSS 
program.

[[Page 19209]]

A. Purpose and Substantive Description of Family Unification Program

(1) Authority
    The Family Unification Program is authorized by Section 8(x) of the 
United States Housing Act of 1937, 42 U.S.C. 1437f(x).
    The Department of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997 (Pub. L. 
No. 104-204) provides funding for the Family Unification Program.
(2) Background
    The Family Unification Program is a program under which Section 8 
rental assistance is provided to families for whom the lack of adequate 
housing is a primary factor which would result in:
    (a) The imminent placement of the family's child, or children, in 
out-of-home care; or
    (b) The delay in the discharge of the child, or children, to the 
family from out-of-home care.
    The purpose of the Family Unification Program is to promote family 
unification by providing rental assistance to families for whom the 
lack of adequate housing is a primary factor in the separation, or the 
threat of imminent separation, of children from their families.
    Rental certificates awarded under the Family Unification Program 
are administered by HAs under HUD's regulations for the Section 8 
rental certificate program (24 CFR parts 882 and 982). If the family 
requests a rental voucher, the HA may issue a rental voucher (24 CFR 
parts 887 and 982) to a family selected for participation in the Family 
Unification Program if the HA has one available.
(3) Eligibility of HAs
    (a) Family Unification Program Eligibility. HUD has revised the 
family unification eligibility criteria for FY 1997 to allow any HA 
nationwide that currently administers a Section 8 rental voucher or 
certificate program to apply.
    (b) Eligibility for HUD-Designated Housing Agencies with Major 
Program Findings. Some housing agencies currently administering the 
Section 8 rental voucher and certificate programs have, at the time of 
publication of this NOFA, major program management findings that are 
open and unresolved or other significant program compliance problems 
(e.g., HA has not implemented mandatory FSS program). HUD will not 
accept applications for additional funding from these HAs as contract 
administrators if, on the application deadline date, the findings are 
not closed to HUD's satisfaction. If any of these HAs want to apply for 
the Family Unification Program, the HA must submit an application that 
designates another housing agency, nonprofit agency, or contractor that 
is acceptable to HUD. The HA application must include an agreement by 
the other housing agency or contractor to administer the program for 
the new funding increment on behalf of the HA and a statement that 
outlines the steps the HA is taking to resolve the program findings. 
Immediately after the publication of this NOFA, the Office of Public 
Housing in the local HUD Office will notify, in writing, those HAs that 
are not eligible to apply because of outstanding management or 
compliance problems. The HA may appeal the decision, if HUD has 
mistakenly classified the HA as having outstanding management or 
compliance problems. Any appeal must be accompanied by conclusive 
evidence of HUD's error and must be received prior to the application 
deadline. Applications submitted by these HAs without an agreement from 
another housing agency or contractor, approved by HUD, to administer 
the program on behalf of the HA will be rejected.
(4) Program Guidelines
    (a) Eligibility. (i) Family Unification eligible families. Each HA 
must modify its selection preference system to permit the selection of 
Family Unification eligible families for the program with available 
funding provided by HUD for this purpose. The term ``Family Unification 
eligible family'' means a family that:
    (A) The public child welfare agency has certified is a family for 
whom the lack of adequate housing is a primary factor in the imminent 
placement of the family's child, or children, in out-of-home care, or 
in the delay of discharge of a child, or children, to the family from 
out-of-home care; and
    (B) The HA has determined is eligible for Section 8 rental 
assistance.
    (ii) Lack of Adequate Housing. The lack of adequate housing means:
    (A) A family is living in substandard or dilapidated housing; or
    (B) A family is homeless; or
    (C) A family is displaced by domestic violence; or
    (D) A family is living in an overcrowded unit.
    (iii) Substandard Housing. A family is living in substandard 
housing if the unit where the family lives:
    (A) Is dilapidated;
    (B) Does not have operable indoor plumbing;
    (C) Does not have a usable flush toilet inside the unit for the 
exclusive use of a family;
    (D) Does not have a usable bathtub or shower inside the unit for 
the exclusive use of a family;
    (E) Does not have electricity, or has inadequate or unsafe 
electrical service;
    (F) Does not have a safe or adequate source of heat;
    (G) Should, but does not, have a kitchen; or
    (H) Has been declared unfit for habitation by an agency or unit or 
government.
    (iv) Dilapidated Housing. A family is living in a housing unit that 
is dilapidated if the unit where the family lives does not provide safe 
and adequate shelter, and in its present condition endangers the 
health, safety, or well-being of a family, or the unit has one or more 
critical defects, or a combination of intermediate defects in 
sufficient number or extent to require considerable repair or 
rebuilding. The defects may result from original construction, from 
continued neglect or lack of repair or from serious damage to the 
structure.
    (v) Homeless. A homeless family includes any person or family that:
    (A) Lacks a fixed, regular, and adequate nighttime residence; and
    (B) Has a primary nighttime residence that is:
    (1) A supervised publicly or privately operated shelter designed to 
provide temporary living accommodations (including welfare hotels, 
congregate shelters, and transitional housing);
    (2) An institution that provides a temporary residence for persons 
intended to be institutionalized; or
    (3) A public or private place not designed for, or ordinarily used 
as, a regular sleeping accommodation for human beings.
    (vi) Displaced by Domestic Violence. A family is displaced by 
domestic violence if:
    (A) The applicant has vacated a housing unit because of domestic 
violence; or
    (B) The applicant lives in a housing unit with a person who engages 
in domestic violence.
    (C) ``Domestic violence'' means actual or threatened physical 
violence directed against one or more members of the applicant family 
by a spouse or other member of the applicant's household.
    (vii) Involuntarily Displaced. For a family to qualify as 
involuntarily displaced because of domestic violence:
    (A) The HA must determine that the domestic violence occurred 
recently or is of a continuing nature; and
    (B) The applicant must certify that the person who engaged in such 
violence

[[Page 19210]]

will not reside with the family unless the HA has given advance written 
approval. If the family is admitted, the HA may terminate assistance to 
the family for breach of this certification.
    (viii) Living in Overcrowded Housing. A family is considered to be 
living in an overcrowded unit if:
    (A) The family is separated from its child [or children] and the 
parent(s) are living in an otherwise standard housing unit, but, after 
the family is re-united, the parents' housing unit would be overcrowded 
for the entire family and would be considered substandard; or
    (B) The family is living with its child [or children] in a unit 
that is overcrowded for the entire family and this overcrowded 
condition may result in the imminent placement of its child [or 
children] in out-of-home care.
    For purpose of this paragraph (viii), the HA may determine whether 
the unit is ``overcrowded'' in accordance with HA subsidy standards.
    (ix) Detained Family. A Family Unification eligible family may not 
include any person imprisoned or otherwise detained pursuant to an Act 
of the Congress or a State law.
    (x) Public child welfare agency (PCWA) means the public agency that 
is responsible under applicable State or Tribal law for determining 
that a child is at imminent risk of placement in out-of-home care or 
that a child in out-of-home care under the supervision of the public 
agency may be returned to his or her family.
    (b) HA Responsibilities. HAs must:
    (i) Accept families certified by the PCWA as eligible for the 
Family Unification Program. The HA, upon receipt of the PCWA list of 
families currently in the PCWA caseload, must compare the names with 
those of families already on the HA's Section 8 waiting list. Any 
family on the HA's Section 8 waiting list that matches with the PCWA's 
list must be assisted in order of their position on the waiting list in 
accordance with HA admission policies. Any family certified by the PCWA 
as eligible and not on the Section 8 waiting list must be placed on the 
waiting list. If the HA has a closed Section 8 waiting list, it must 
reopen the waiting list to accept a Family Unification Program 
applicant family who is not currently on the HA's Section 8 waiting 
list;
    (ii) Determine if any families with children on its waiting list 
are living in temporary shelters or on the street and may qualify for 
the Family Unification Program, and refer such applicants to the PCWA;
    (iii) Determine if families referred by the PCWA are eligible for 
Section 8 assistance and place eligible families on the Section 8 
waiting list;
    (iv) Amend the administrative plan in accordance with applicable 
program regulations and requirements;
    (v) Administer the rental assistance in accordance with applicable 
program regulations and requirements; and
    (vi) Assure the quality of the evaluation that HUD intends to 
conduct on the Family Unification Program and cooperate with and 
provide requested data to the HUD office or HUD-approved contractor 
responsible for program evaluation.
    (c) Public Child Welfare Agency (PCWA) Responsibilities. A public 
child welfare agency must:
    (i) Establish and implement a system to identify Family Unification 
eligible families within the agency's caseload and to review referrals 
from the HA;
    (ii) Provide written certification to the HA that a family 
qualifies as a Family Unification eligible family based upon the 
criteria established in Section 8(x) of the United States Housing Act 
of 1937, and this notice;
    (iii) Commit sufficient staff resources to ensure that Family 
Unification eligible families are identified and determined eligible in 
a timely manner and to provide follow-up supportive services after the 
families lease units; and
    (iv) Cooperate with the evaluation that HUD intends to conduct on 
the Family Unification Program, and submit a certification with the 
HA's application for Family Unification funding that the PCWA will 
agree to cooperate with and provide requested data to the HUD office or 
HUD-approved contractor having responsibility for program evaluation.
    (d) Section 8 Rental Certificate Assistance. The Family Unification 
Program provides assistance under the Section 8 rental assistance 
programs. Although HUD is providing a special allocation of rental 
certificates, the HA may use both rental vouchers and certificates to 
assist families under this program.
    HAs must administer this program in accordance with HUD's 
regulations governing the Section 8 rental certificate and rental 
voucher programs. The HA may issue a rental voucher to a family 
selected to participate in the Family Unification Program if the family 
requests a rental voucher and the HA has one available. If Section 8 
assistance for a family under this program is terminated, the rental 
assistance must be reissued to another Family Unification eligible 
family for five years from the initial date of execution of the Annual 
Contributions Contract subject to the availability of renewal funding.

B. Family Unification Allocation Amounts

    This NOFA announces the availability of approximately $58.8 million 
for the Family Unification Program which will provide assistance for 
about 6,400 families. Each HA with a current Section 8 rental voucher 
and certificate program of more than 500 units as shown in the most 
recent HUD approved program budget may apply for funding for a maximum 
of 100 units. Each HA with a current Section rental voucher or 
certificate program of 500 units or less as shown in the most recent 
HUD approved program budget may apply for a maximum of 50 units.
    The amounts allocated under this NOFA will be awarded under a 
national competition, based on the threshold criteria and a lottery for 
selection from all approvable applications. The Family Unification 
Program is exempt from the fair share allocation requirements of 
section 213(d) of the Housing and Community Development Act of 1974 (42 
U.S.C. 1439(d)) and the implementing regulations at 24 CFR part 791, 
subpart D. A few applications for FY 1996 funding that met the 
requirements of the FY 1996 NOFA, were included in the FY 1996 lottery 
and were not selected for funding from funds in FY 1996 will be 
selected using funds appropriated for FY 1997 funding for the Family 
Unification Program. In order to allow the HAs that had approvable 
applications in FY 1996 to begin implementation of the Family 
Unification Program, these FY 1996 applications will be funded upon 
publication of this NOFA.

C. Family Unification Application Submission Requirements

(1) Form HUD-52515
    Funding Application Section 8 Tenant-Based Assistance, Form HUD-
52515, must be completed in accordance with the program regulations (24 
CFR 982.102). An application must include the information in Section C, 
Average Monthly Adjusted Income, of Form HUD-52515 in order for HUD to 
calculate the amount of Section 8 budget authority necessary to fund 
the requested number of certificate units. HAs may obtain a copy of 
Form HUD-52515 from the local HUD Office or may download it from the 
HUD Home page on the internet's world wide web (http://www.hud.gov).

[[Page 19211]]

(2) Local Government Comments
    Section 213 of the Housing and Community Development Act of 1974 
requires that HUD independently determine that there is a need for the 
housing assistance requested in applications and solicit and consider 
comments relevant to this determination from the chief executive 
officer of the unit of general local government. The HUD Office will 
obtain Section 213 comments from the unit of general local government 
in accordance with 24 CFR part 791, subpart C, Applications for Housing 
Assistance in Areas Without Housing Assistance Plans. Comments 
submitted by the unit of general local government must be considered 
before an application can be approved.
    For purposes of expediting the application process, the HA should 
encourage the chief executive officer of the unit of general local 
government to submit a letter with the HA application commenting on the 
HA application in accordance with Section 213. Because HUD cannot 
approve an application until the 30-day comment period is closed, the 
Section 213 letter should not only comment on the application, but also 
state that HUD may consider the letter to be the final comments and 
that no additional comments will be forthcoming from the unit of 
general local government.
(3) Letter of Intent and Narrative
    All the items in this Section must be included with the application 
submitted to the HUD Office. Funding is limited, and HUD may only have 
enough funds to approve a smaller amount than the number of rental 
certificates requested. The HA must state in its cover letter to the 
application whether it will accept a smaller number of rental 
certificates and the minimum number of rental certificates it will 
accept. The cover letter must also include a statement by the HA 
certifying that the HA has consulted with the agency or agencies in the 
state responsible for the administration of welfare reform to provide 
for the successful implementation of the state's welfare reform for 
families receiving rental assistance under the family unification 
program. The application must include an explanation of how the 
application meets, or will meet, Threshold Criteria 1 through 4 in 
Section D of this NOFA, below.
    The application must also include a letter of intent from the PCWA 
stating its commitment to provide resources and support for the Family 
Unification Program. The PCWA letter of intent must explain:
    (i) The definition of eligible family unification program families;
    (ii) The method used to identify eligible family unification 
program families;
    (iii) The process to certify eligible family unification program 
families;
    (iv) The PCWA assistance to families to locate suitable housing;
    (v) The PCWA staff resources committed to the program; and
    (vi) PCWA experience with the administration of similar programs 
including cooperation with a HA.
    The PCWA serving the jurisdiction of the HA is responsible for 
providing the information for Threshold Criterion 4, PCWA Statement of 
Need for Family Unification Program, to the HA for submission with the 
HA application. This should include a discussion of the case-load of 
the PCWA and information about homelessness, family violence resulting 
in involuntary displacement, number and characteristics of families who 
are experiencing the placement of children in out-of-home care as a 
result of inadequate housing, and the PCWA's experience in obtaining 
housing through HUD assisted housing programs and other sources for 
families lacking adequate housing. A State-wide Public Child Welfare 
Agency must provide information on Threshold Criterion 4, PCWA 
Statement of Need for Family Unification Program, to all HAs that 
request such information; otherwise, HUD will not consider applications 
from any HAs with the State-wide PCWA as a participant in its program.
(4) Evaluation Certifications
    The HA and the PCWA, in separate certifications, must state that 
the HA and Public Child Welfare Agency agree to cooperate with HUD and 
provide requested data to the HUD office or HUD-approved contractor 
delegated the responsibility for the program evaluation. No specific 
language for this certification is prescribed by HUD.

D. Family Unification Application Rating Process

(1) General
    The HUD Office is responsible for rating the applications for the 
selection criteria established in this NOFA, and HUD Headquarters is 
responsible for selection of applications (including applications rated 
by the Native American Programs Office) that will receive assistance 
under the Family Unification Program. The HUD Office will initially 
screen all applications and determine any technical deficiencies based 
on the application submission requirements.
    Each eligible application submitted in response to the NOFA, in 
order to be eligible for funding, must receive at least 30 points for 
Threshold Criterion 1, Unmet Housing Needs, and at least 20 points for 
Threshold Criterion 2, Efforts of HA to Provide Area-Wide Housing 
Opportunities for Families. Each application must also meet the 
requirements for Threshold Criterion 3, Coordination between HA and 
Public Child Welfare Agency, and Threshold Criterion 4, Public Child 
Welfare Agency Statement of Need for Family Unification Program.
(2) Threshold Criteria
    (a) Threshold Criterion 1: Unmet Housing Needs (50 Points).
    (i) Description: This criterion assesses the unmet housing need in 
the primary area specified in the HA's application compared to the 
unmet housing need for the allocation area. Unmet housing need is 
defined as the number of very low-income renter households with housing 
problems based on 1990 Census, minus the number of federally assisted 
housing units provided since the 1990 Census.
    In awarding points under this criterion, HUD will, to the extent 
practicable, consider all units provided since the 1990 Census under 
the Section 8 Rental Voucher and Certificate programs, any other 
Section 8 programs, the Public and Indian Housing programs, the Section 
202 program, and the Farmers Home Administration's Section 515 Rural 
Rental Housing program.
    (ii) Rating and Assessment: The number of points assigned is based 
on the percentage of the allocation area's unmet housing need that is 
within the HA's primary area. State or Regional Housing Agencies will 
receive points based on the areas they intend to serve with this 
allocation, e.g., the entire allocation area or the localities within 
the allocation area specified in the application. The HUD Office will 
assign one of the following point totals:
     50 points. If the HA's percentage of unmet housing need is 
greater than 50 percent of the allocation area's unmet need.
     45 points. If the HA's percentage of unmet housing need is 
equal to or less than 50 percent but greater than 40 percent of the 
allocation area's unmet need.
     40 points. If the HA's percentage of unmet housing need is 
equal to or less than 40 percent but greater than 30 percent of the 
allocation area's unmet need.
     35 points. If the HA's percentage of unmet housing need is 
equal to or less than 30 percent but greater than 20

[[Page 19212]]

percent of the allocation area's unmet need.
     30 points. If the HA's percentage of unmet housing need is 
equal to or less than 20 percent but greater than 10 percent of the 
allocation area's unmet need.
     0 points. If the HA's percentage of unmet housing need is 
equal to or less than 10 percent of the allocation area's unmet need.
    The HUD Office will not consider for funding any HA application 
receiving zero (0) points.
    In accordance with Notice PIH 91-45, the HUD Office will notify the 
Rural Housing Service (RHS) of applications it receives and ask that 
RHS provide advisory comments concerning the market for additional 
assisted housing or the possible impact the proposed units may have on 
RHS projects. Applications for which RHS has provided comments 
expressing concerns about market need or the continued stability of 
existing RHS projects, with which HUD agrees, will receive zero points 
for this criterion.
    (b) Threshold Criterion 2: Efforts of HA to Provide Area-Wide 
Housing Opportunities for Families (60 Points).
    (i) Description: Many HAs have undertaken voluntary efforts to 
provide area-wide housing opportunities for families. The efforts 
described in response to this selection criterion must be beyond those 
required by federal law or regulation such as the portability 
provisions of the Section 8 rental voucher and certificate programs. 
HAs in metropolitan and non-metropolitan areas are eligible for points 
under this criterion. The HUD Office will assign points to HAs that 
have established cooperative agreements with other HAs or created a 
consortium of HAs in order to facilitate the transfer of families and 
their rental assistance between HA jurisdictions. In addition, the HUD 
Office will assign points to HAs that have established relationships 
with nonprofit groups to provide families with additional counseling, 
or have directly provided counseling, to increase the likelihood of a 
successful move by the families to areas that do not have large 
concentrations of poverty.
    (ii) Rating and Assessment: The HUD Office will assign point values 
for any of the following assessments for which the HA qualifies and add 
the points for all the assessments (maximum of 60 points) to determine 
the total points for this Selection Criterion:
     10 points--Assign 10 points if the HA documents that it 
participates in an area-wide rental voucher and certificate exchange 
program where all HAs absorb portable Section 8 families.
     10 points--Assign 10 points if the HA certifies that its 
administrative plan does not include a ``residency preference'' for 
selection of families to participate in its rental voucher and 
certificate programs or the HA certifies that it will eliminate 
immediately any ``residency preference'' currently in its 
administrative plan.
     10 points--Assign 10 points if the HA documents that HA 
staff will provide housing counseling for families that want to move to 
low-poverty on non-minority areas, or if the HA has established a 
contractual relationship with a nonprofit agency or a local 
governmental entity to provide housing counseling for families that 
want to move to low-poverty or non-minority areas. The five HAs 
approved for the FY 1993 Moving to Opportunity (MTO) for Fair Housing 
Demonstration and any other HAs that receive counseling funds from HUD 
(e.g., in settlement of litigation involving desegregation or 
demolition of public housing, regional opportunity counseling, or mixed 
population projects) may qualify for points under this assessment, but 
these HAs must identify all activities undertaken, other than those 
funded by HUD, to expand housing opportunities.
     10 points--Assign 10 points if the HA documents that it 
requested from HUD, and HUD approved, the authority to utilize 
exceptions to the fair market rent limitations as allowed under 24 CFR 
882.106(a)(4) to allow families to select units in low-poverty or non-
minority areas.
     10 points--Assign 10 points if the HA documents that it 
participates with other HAs in using a metropolitan wide or combined 
waiting list for selecting participants in the program.
     10 Points--Assign 10 points if the HA documents that it 
has implemented other initiatives that have resulted in expanding 
housing opportunities in areas that do not have undue concentrations of 
poverty or minority families.
    (c) Threshold Criterion 3: Coordination Between HA and Public Child 
Welfare Agency to Identify and Assist Eligible Families.
    The application must describe the method that the HA and the PCWA 
will use to identify and assist Family Unification eligible families. 
The application must include a letter of intent from the PCWA stating 
its commitment to provide resources and support for the program. The 
PCWA letter of intent and other information must include an explanation 
of: the method for identifying Family Unification eligible families, 
the PCWA's certification process for determining Family Unification 
eligible families, the responsibilities of each agency, the assistance 
that the PCWA will provide to families in locating housing units, the 
PCWA staff resources committed to the program, the past PCWA experience 
administering a similar program, and the PCWA/HA cooperation in 
administering a similar program.
    (d) Threshold Criterion 4: Public Child Welfare Agency Statement of 
Need for Family Unification Program.
    The application must include a statement by the PCWA describing the 
need for a program providing assistance to families for whom lack of 
adequate housing is a primary factor in the placement of the family's 
children in out-of-home care or in the delay of discharge of the 
children to the family from out-of-home care in the area to be served, 
as evidenced by the caseload of the public child welfare agency. The 
PCWA must adequately demonstrate that there is a need in the HA's 
jurisdiction for the Family Unification program that is not being met 
through existing programs. The narrative must include specific 
information relevant to the area to be served, about homelessness, 
family violence resulting in involuntary displacement, number and 
characteristics of families who are experiencing the placement of 
children in out-of-home care or the delayed discharge of children from 
out-of-home care as the result of inadequate housing, and the PCWA's 
past experience in obtaining housing through HUD assisted programs and 
other sources for families lacking adequate housing.

E. Corrections to Deficient Family Unification Applications

(1) Acceptable Applications
    To be eligible for processing, an application must be received by 
the appropriate HUD Office no later than the date and time specified in 
this NOFA. The HUD Office will initially screen all applications and 
notify HAs of technical deficiencies by letter.
    If an application has technical deficiencies, the HA will have 14 
calendar days from the date of the issuance of the HUD notification 
letter to submit the missing or corrected information to the HUD 
Office. Curable technical deficiencies relate only to items that do not 
improve the substantive quality of the application relative to the 
rating factors.
    All HAs must submit corrections within 14 calendar days from the 
date of the HUD letter notifying the applicant of any such deficiency. 
Information received after 3 p.m. local time (i.e., the

[[Page 19213]]

time in the appropriate HUD Office) of the 14th calendar day of the 
correction period will not be accepted and the application will be 
rejected as incomplete.
(2) Unacceptable Applications
    (a) After the 14-calendar day technical deficiency correction 
period, the HUD Office will disapprove HA applications that it 
determines are not acceptable for processing. The HUD Office 
notification of rejection letter must state the basis for the decision.
    (b) Applications that fall into any of the following categories 
will not be processed:
    (i) There is a pending civil rights suit against the HA instituted 
by the Department of Justice or there is a pending administrative 
action for civil rights violations instituted by HUD (including a 
charge of discrimination under the Fair Housing Act).
    (ii) There has been an adjudication of a civil rights violation in 
a civil action brought against the HA by a private individual, unless 
the HA is operating in compliance with a court order or implementing a 
HUD-approved resident selection and assignment plan or compliance 
agreement designed to correct the areas of noncompliance.
    (iii) There are outstanding findings of noncompliance with civil 
rights statutes, Executive Orders, or regulations, as a result of 
formal administrative proceedings, or the Secretary has issued a charge 
against the applicant under the Fair Housing Act, unless the applicant 
is operating under a conciliation or compliance agreement designed to 
correct the areas of noncompliance.
    (iv) HUD has denied application processing under Title VI of the 
Civil Rights Act of 1964, the Attorney General's Guidelines (28 CFR 
50.3), and the HUD Title VI regulations (24 CFR 1.8) and procedures 
(HUD Handbook 8040.1), or under section 504 of the Rehabilitation Act 
of 1973 and HUD regulations (24 CFR 8.57).
    (v) The HA has serious unaddressed, outstanding Inspector General 
audit findings, Fair Housing and Equal Opportunity monitoring review 
findings, or HUD management review findings for one or more of its 
Rental Voucher, Rental Certificate, or Moderate Rehabilitation 
Programs, or, in the case of a HA that is not currently administering a 
Rental Voucher, Rental Certificate, or Moderate Rehabilitation Program, 
for its Public Housing Program or Indian Housing Program. The only 
exception to this category is if the HA has been identified under the 
policy established in section A.(3)(b) of this NOFA and the HA makes 
application with another agency or contractor that will administer the 
family unification assistance on behalf of the HA.
    (vi) The HA is involved in litigation and HUD determines that the 
litigation may seriously impede the ability of the HA to administer an 
additional increment of rental vouchers or rental certificates.
    (vii) After the 14-calendar day technical deficiency correction 
period, an HA application that does not comply with the requirements of 
24 CFR 982.102 and this NOFA, will be rejected from processing.
    (viii) A HA application submitted after the deadline date.

F. Family Unification Application Selection Process

(1) Funding FY 1996 Applications
    The FY 1996 NOFA was published in the Federal Register on May 2, 
1996, (61 FR 19761) and provides that HUD may use FY 1997 funds for 
applications from the FY 1996 lottery that were not awarded funds in FY 
1996. HUD has determined that sufficient funds are available in FY 1997 
to fund these applications and to conduct a new lottery in FY 1997 for 
new applicants. HUD will fund the remaining FY 1996 lottery 
applications upon publication of this NOFA prior to funding any FY 1997 
applications. Any HA that applied under the FY 1996 NOFA and is being 
funded under the FY 1997 NOFA may also submit an FY 1997 application.
(2) Funding FY 1997 Applications
    After the HUD Office has screened HA applications and disapproved 
any applications unacceptable for further processing (See Section E.(2) 
of this NOFA), the HUD Office will review and rate all approvable 
applications, utilizing the Threshold Criteria and the point 
assignments listed in this NOFA. Each HUD Office will send to HUD 
Headquarters the following information on each application that passes 
the Threshold Criteria:
    (1) Name and address of the HA;
    (2) Name and address of the Public Child Welfare Agency;
    (3) State Office, Area Office, or Native American Programs Office 
contact person and telephone number;
    (4) The requested number of rental certificates in the HA 
application and the minimum number of rental certificates specified in 
the HA application, and the corresponding budget authority; and
    (5) A completed fund reservation worksheet for the number of rental 
certificates requested in the application.
    HUD Headquarters will select eligible HAs to be funded based on a 
lottery. All acceptable applications by HAs identified by the HUD 
Offices as meeting the Threshold Criteria identified in this NOFA will 
be eligible for the lottery selection process. The costs of funding the 
FY 1997 applications will be counted against the total available funds 
remaining for the Family Unification Program. If the cost of funding 
the applications received by HUD exceeds available funds, in order to 
achieve geographic diversity HUD Headquarters will limit the number of 
FY 1997 applications selected for funding under the lottery for any 
State to no more than 10 percent of the budget authority made available 
under this NOFA. However, if establishing this geographic limit results 
in unspent budget authority, HUD may modify this limit to assure that 
all available funds are used.
    Applications will be funded in full for the number of rental 
certificates requested by the HA in accordance with the NOFA. However, 
if the remaining rental certificate funds are insufficient to fund the 
last HA application in full, HUD Headquarters may fund that application 
to the extent of the funding available and the applicant's willingness 
to accept a reduced number of rental certificates. Applicants that do 
not wish to have the size of their programs reduced may indicate in 
their applications that they do not wish to be considered for a reduced 
award of funds. HUD Headquarters will skip over these applicants if 
assigning the remaining funding would result in a reduced funding 
level.

G. Other Matters

Environmental Impact
    This NOFA provides funding under, and does not alter environmental 
requirements of, regulations in 24 CFR part 882 subparts A, B, C and F. 
887 and 982, which have been previously published in the Federal 
Register. This NOFA provides funding only for tenant-based assistance, 
which is a categorical exclusion not subject to the individual 
compliance requirements of the Federal laws and authorities cited in 
Sec. 50.4, and therefore those regulations do not contain environmental 
review requirements. 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).

[[Page 19214]]

Federalism Impact
    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this notice will not have substantial direct effects on 
States or their political subdivisions, or the relationship between the 
Federal Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. As a result, 
the notice is not subject to review under the Order. This notice is a 
funding notice and does not substantially alter the established roles 
of the Department, the States, and local governments, including HAs.
Impact on the Family
    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this notice does not have 
potential for significant impact on family formation, maintenance, and 
general well-being within the meaning of the Executive Order and, thus, 
is not subject to review under the Order. This is a funding notice and 
does not alter program requirements concerning family eligibility.
Accountability in the Provision of HUD Assistance
    Section 102 of the Department of Housing and Urban Development 
Reform Act of 1989 (HUD Reform Act) and the final rule codified at 24 
CFR part 4, subpart A, published on April 1, 1996 (61 FR 1448), contain 
a number of provisions that are designed to ensure greater 
accountability and integrity in the provision of certain types of 
assistance administered by HUD. On January 14, 1992, HUD published, at 
57 FR 1942, a notice that also provides information on the 
implementation of section 102. The documentation, public access, and 
disclosure requirements of section 102 are applicable to assistance 
awarded under this NOFA as follows:
Documentation and Public Access Requirements
    HUD will ensure that documentation and other information regarding 
each application submitted pursuant to this NOFA are sufficient to 
indicate the basis upon which assistance was provided or denied. This 
material, including any letters of support, will be made available for 
public inspection for a five-year period beginning not less than 30 
days after the award of the assistance. Material will be made available 
in accordance with the Freedom of Information Act (5 U.S.C. 552) and 
HUD's implementing regulations at 24 CFR part 15. In addition, HUD will 
include the recipients of assistance pursuant to this NOFA in its 
Federal Register notice of all recipients of HUD assistance awarded on 
a competitive basis.
Disclosures
    HUD will make available to the public for five years all applicant 
disclosure reports (HUD Form 2880) submitted in connection with this 
NOFA. Update reports (also Form 2880) will be made available along with 
the applicant disclosure reports, but in no case for a period less than 
three years. All reports--both applicant disclosures and updates--will 
be made available in accordance with the Freedom of Information Act (5 
U.S.C. 552) and HUD's implementing regulations at 24 CFR part 15.
Section 103 of the HUD Reform Act
    HUD's regulation implementing section 103 of the HUD Reform Act, 
codified as 24 CFR part 4, applies to the funding competition announced 
today. The requirements of the rule continue to apply until the 
announcement of the selection of successful applicants.
    HUD employees involved in the review of applications and in the 
making of funding decisions are restrained by part 4 from providing 
advance information to any person (other than persons authorized to 
receive such information) concerning funding decisions, or from 
otherwise giving any applicant an unfair competitive advantage. Persons 
who apply for assistance in this competition should confine their 
inquiries to the subject areas permitted under 24 CFR part 4.
    Applicants or employees who have ethics related questions should 
contact the HUD Office of Ethics (202) 708-3815 (voice), (202) 708-1112 
(TTY). (These are not toll-free numbers.) For HUD employees who have 
specific program questions, the employee should contact the appropriate 
Field Office Counsel or Headquarters Counsel for the program to which 
the question pertains.
Prohibition Against Lobbying Activities
    The use of funds awarded under this NOFA is subject to the 
disclosure requirements and prohibitions of section 319 of the 
Department of Interior and Related Agencies Appropriations Act for 
Fiscal Year 1990 (31 U.S.C. 1352) (the ``Byrd Amendment'') and the 
implementing regulations at 24 CFR part 87. These authorities prohibit 
recipients of Federal contracts, grants, or loans from using 
appropriated funds for lobbying the Executive or Legislative Branches 
of the Federal Government in connection with specific contract, grant, 
or loan. The prohibition also covers the awarding of contracts, grants, 
cooperative agreements, or loans unless the recipient has made an 
acceptable certification regarding lobbying. Under 24 CFR part 87, 
applicants, recipients, and sub-recipients of assistance exceeding 
$100,000 must certify that no Federal funds have been or will be spent 
on lobbying activities in connection with the assistance. IHAs 
established by an Indian tribe as a result of the exercise of the 
tribe's sovereign power are excluded from coverage of the Byrd 
Amendment, but IHAs established under State law are not excluded from 
the statute's coverage.

    Dated: April 10, 1997.
Kevin Emanuel Marchman,
Acting Assistant Secretary for Public and Indian Housing.
[FR Doc. 97-10124 Filed 4-17-97; 8:45 am]
BILLING CODE 4210-33-P