[Federal Register Volume 62, Number 106 (Tuesday, June 3, 1997)]
[Notices]
[Pages 30402-30409]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14384]



[[Page 30401]]

_______________________________________________________________________

Part III





Department of Housing and Urban Development





_______________________________________________________________________



Notice of Funding Availability for HOPE VI Public Housing Demolition--
Fiscal Year 1997; Notice

  Federal Register / Vol. 62, No. 106 / Tuesday, June 3, 1997 / 
Notices  

[[Page 30402]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4228-N-01]


Notice of Funding Availability for HOPE VI Public Housing 
Demolition--Fiscal Year 1997

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

ACTION: Notice of funding availability (NOFA).

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SUMMARY: This notice informs Public Housing Agencies (PHAs) of the 
availability of up to $30 million in HOPE VI funding for the demolition 
of obsolete Public Housing units without revitalization, where the 
demolition would otherwise not occur due to lack of available 
resources. Indian Housing Authorities are not eligible to apply.

DATES: An original application must be received at HUD Headquarters, 
Attention: Director, Office of Public Housing Investments, 451 Seventh 
Street, SW, Room 4138, Washington, DC 20410, on or before 4 p.m. 
eastern time on August 4, 1997. The application deadline for the 
original application delivered to HUD Headquarters is firm as to date 
and hour. PHAs should take this into account and submit applications as 
early as possible to avoid the risk brought about by unanticipated 
delays or delivery-related problems. In particular, PHAs intending to 
mail applications must provide sufficient time to permit delivery on or 
before the deadline date. HUD will disqualify and return to the 
applicant any application that it receives after the deadline date and 
time. Notwithstanding the foregoing, HUD will accept any application 
the original of which was delivered to a U.S. post office or private 
mailer for expedited delivery, properly addressed to Headquarters and 
fully paid for, no later than 12:00 noon local time on the day before 
it was due at HUD, for scheduled delivery prior to the deadline 
established above. If an application arrives at HUD Headquarters after 
the deadline date and time and the applicant wishes to make a case that 
it delivered the application for expedited delivery on time, the 
applicant must document with an official receipt from the post office 
or private mailer that the application was received by 12:00 noon local 
time on the day before it was due at HUD.
    In addition, two copies of the completed application must be 
received at the Field Office. The deadlines for submission discussed 
above only apply to the original, official copy, not to the copies of 
the application going to the Field Office.

FOR FURTHER INFORMATION CONTACT: Mr. Milan Ozdinec, Director, Office of 
Urban Revitalization, Department of Housing and Urban Development, 451 
Seventh Street, SW, Room 4142, Washington, DC 20410; telephone (202) 
401-8812 (this is not a toll free number). Hearing-or speech-impaired 
individuals may access this number via TTY by calling the Federal 
Information Relay Service at 1-800-877-TDDY, which is a toll-free 
number. The NOFA is also available on the HUD Home Page, at the World 
Wide Web at http://www.hud.gov/nofas.html. HUD also will post 
frequently-asked questions and answers on the Home Page throughout the 
application preparation period.

SUPPLEMENTARY INFORMATION:

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, HUD 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.
    NOFAs related to housing revitalization that HUD has published are 
the NOFA for Revitalization of Severely Distressed Public Housing (HOPE 
VI), which was published on April 14, 1997, and the NOFA for the 
Comprehensive Improvement Assistance (CIAP) Program, which was 
published on May 1, 1997. Other NOFAs related to housing revitalization 
the Lead-based Paint Hazard Reduction NOFA, which is published 
elsewhere in today's Federal Register, and the NOFA for the Section 8 
Rental Certificate and Voucher Programs, which HUD expects to publish 
within the next few weeks.
    To foster comprehensive, coordinated approaches by communities, HUD 
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.

I. Purpose and Substantive Description

A. Authority

    The funding made available under this NOFA is provided by the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1997 (Pub. L. 104-204; 
approved September 26, 1996) (the 1997 Appropriations Act), under the 
heading ``Revitalization of Severely Distressed Public Housing.''

B. Fund Availability

    This NOFA announces the availability of up to $30 million in HOPE 
VI funding for the demolition of obsolete Public Housing units without 
revitalization, where the demolition would otherwise not occur due to 
lack of available resources. Indian Housing Authorities are not 
eligible to apply.

C. Application Limitations

    There is no minimum or maximum limitation on the size of the PHA 
that may apply or on the number of dwelling units for which demolition 
funding is requested. The Department will limit the eligible demolition 
funding per unit to $5,000 for vacant units and $6,500 for occupied 
units that require resident relocation. In addition, there will be a 
$3,000,000 limit on each grant. A PHA may apply for funding for only 
one public housing development. Contiguous developments will be 
considered one development for purposes of this NOFA.

D. Previously Submitted Demolition Applications

    PHAs with previously submitted and/or approved demolition 
applications that include dwelling units may apply for funding under 
this NOFA where the PHA has not signed a contract to demolish the 
structure(s) and the actual

[[Page 30403]]

demolition costs have not yet been incurred. This NOFA is not intended 
to reimburse PHAs for demolition costs already incurred.

E. Eligible Costs

    Eligible costs include: (1) The cost of demolition, including any 
required asbestos and/or lead-based paint abatement, of dwelling units 
and nondwelling facilities, where the demolition is approved by HUD 
under 24 CFR part 970 but where the PHA has not yet signed a contract 
for demolition and the building(s) has not been demolished, (2) minimal 
site restoration after demolition and subsequent site improvements to 
benefit the remaining portion of the project or to make the site more 
saleable, (3) demolition of nondwelling facilities are eligible costs 
only where related to the demolition of the dwelling units, (4) 
necessary administrative costs, and relocation and other assistance 
costs related to the permanent relocation.

II. NOFA Application Requirements

    The PHA shall submit the original NOFA Application to the address 
specified by the date specified in the DATE section above. An 
application must contain all of the items in A-E of this section to be 
considered complete for the purposes of this section. The NOFA 
Application is comprised of the following documents:

A. Demolition Application

    In order for a demolition application to be complete the PHA must 
address each of the requirements identified below in II. A. 1. (a-i). 
Where the Processing Center or Headquarters determines that more 
information is needed to clarify the submission with respect to one or 
more part 970 requirements, the PHA will be required to submit 
supplementary documentation. The PHA may be requested to provide this 
supplementary information at any time in the review process. However, 
where the PHA has failed to address a requirement under part 970 the 
application will be determined to be incomplete and will not be 
processed further in connection with this NOFA.
    1. If a demolition application has not been previously submitted, 
the PHA shall submit a demolition application in accordance with 24 CFR 
part 970. In order for a demolition application to be complete it shall 
include the following:
    a. A description of the property involved (Sec. 970.8(a));
    b. A description of, as well as a timetable for, the specific 
action proposed (Sec. 970.8(b));
    c. A statement justifying the proposed demolition based on 24 CFR 
970.6:
    (a) ``In the case of demolition of all or a portion of a project, 
the project, or portion of the project, is obsolete as to physical 
condition, location, or other factors, making it unusable for housing 
purposes and no reasonable program of modifications, is feasible to 
return the project or portion of the project to useful life.'' 
(Sec. 970.6(a))
    (b) ``In the case of demolition of only a portion of a project, the 
demolition will help to assure the useful life of the remaining portion 
of the project (e.g., to reduce project density to permit better access 
by emergency, fire, or rescue services).'' (Sec. 970.6(b))
    d. If applicable, a plan for the relocation of residents who would 
be displaced by the proposed demolition (Sec. 970.5). The relocation 
plan must at least indicate:
    (1) The number of residents to be displaced;
    (2) What counseling and advisory services the PHA plans to provide;
    (3) What housing resources are expected to be available to provide 
housing for those displaced residents;
    (4) An estimate of the cost of advisory services and resident 
moving expenses and the expected source for payment of these costs; and
    (5) The minimum official notice that the PHA will give residents 
before they are required to move (Sec. 970.8(d)).
    e. The application must be developed in consultation with residents 
and any resident organizations at the development, as well as any PHA-
wide organizations. Copies of resident comments and the PHA's 
evaluation of those comments must be submitted. (Secs. 970.4(a) and 
970.8(e))
    f. Evidence of compliance with the requirement for offering of the 
property to any resident organizations at the development for purchase, 
as required in Sec. 970.13, or documentation that the application fits 
one of the exceptions.1 Evidence must be submitted as to the 
residents' response to the offer or that the time for response has 
expired. (Sec. 970.13)
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    \1\ At a minimum the PHA's demolition application submitted to 
HUD must include a signed and dated copy of the letter of offer to 
the resident organization at the affected development or where no 
resident organization exists, a copy of the notification of a 
meeting with residents for the purpose of assisting the residents to 
organize and a certification that the notification has been issued. 
As required by the regulation, the PHA must complete this 
requirement for the demolition application to be approved.
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    g. A relocation certification regarding relocation of residents, in 
accordance with Sec. 970.5(h)(1); (See Sec. 970.8(h).)
    h. Estimated balance of development debt, under the Annual 
Contributions Contract (ACC), for development and modernization debt; 
2 (Sec. 970.8(k)) and
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    \2\ Where the HA does not have information on the debt, the 
Processing Center will contact the Office of Finance and Accounting 
to determine the debt.
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    i. A signed and dated resolution by the Board of Commissioners 
approving the demolition application. (970.8(n))
    2. If a demolition application has been submitted to HUD previously 
but not yet been approved, the PHA shall submit a copy of its letter 
transmitting the application to HUD.
    3. If a demolition/disposition application has been submitted and 
approved by HUD, the PHA shall submit a copy of HUD's signed and dated 
approval letter.
    B. Narrative Statements, in an original and two copies, addressing 
each of the program threshold criteria and the rating factors in 
Sections III and IV of this NOFA.
    C. An Implementation Schedule, showing the start and completion 
dates of the proposed demolition by phases if any.
    D. Budget Form HUD-52825-A, HOPE VI Budget, Parts I and II, in an 
original and two copies.

E. Required HUD Certifications

    Copies of the required certifications are contained in the Fiscal 
Year (FY) 1997 HOPE VI Application Kit which will be mailed to each 
PHA.
    1. SF-424, Application for Federal Assistance. This form must be 
signed by the Executive Director of the PHA.
    2. A letter from the Chief Executive. A letter from the Chief 
Executive of the applicable jurisdiction in support of the application.
    3. Compliance with the Consolidated Plan. A certification by the 
public official responsible for submitting the Consolidated Plan under 
24 CFR part 91 that the proposed activities are consistent with the 
approved Consolidated Plan of the State or unit of general local 
government within which the development is located.
    4. Form HUD-52820-A, PHA Board Resolution for Submission of HOPE VI 
Application.
    5. Form HUD-50070, Certification for a Drug-Free Workplace, in an 
original only.
    6. Form HUD-50071, Certification for Contracts, Grants, Loans and 
Cooperative Agreements, in an original only, required of PHAs applying 
for grants exceeding $100,000.
    7. Form SF-LLL, Disclosure of Lobbying Activities, in an original 
only, required where any funds, other than

[[Page 30404]]

federally appropriated funds, will be or have been used to influence 
Federal workers, Members of Congress and their staff regarding specific 
grants or contracts. The PHA determines if the submission of the SF-LLL 
is applicable.
    8. Form HUD 2880, Recipient Disclosure/Update Report, in an 
original only.

III. Program Threshold Criteria

    This section identifies criteria which must be satisfied by each 
application in order for it to be rated and ranked. HUD will determine 
whether each criterion has been satisfied, based on the information 
submitted in accordance with the specific requirements of Sections II, 
III and IV of this NOFA and available program reports (e.g., LOCCS 
Quarterly Reports, FHEO Records). Only complete applications will be 
rated under this NOFA.
    There are four program threshold criteria as follows:

A. Completeness of the Application

    For an application to be complete, the PHA must address each 
requirement identified in Section II. With reference to the demolition 
portion of the application, the demolition application must be complete 
in terms of addressing each of the regulatory requirements found in 
Section II A.1. a-i of this NOFA. The demolition application does not 
have to be approved prior to rating or funding decisions.

B. Progress in Obligation of Modernization Funds

     Based on the 12/30/1996 Quarterly Letter of Credit Control System 
(LOCCS) Report, at least 90 percent of modernization (i.e., 
Comprehensive Improvement Assistance Program or Comprehensive Grant 
Program) funds approved for Fiscal Year 1994 and prior years have been 
obligated.

C. Need for Demolition Funding

     The PHA must demonstrate through written documentation that 
without HUD funds the demolition of this development or portion of the 
development could not take place. A Comprehensive Grant Program (CGP) 
participant must provide a copy of its 1997 Annual Statement. Using the 
Annual Statement, the PHA must demonstrate that either (a) 50 percent 
or more of its CGP funds for one year will be used to fund emergency 
needs, or (b) 50 percent or more of its CGP funds are needed for a 
combination of emergency needs, and critical needs 3. The 
CGP PHA must provide an itemized list of emergency and/or critical 
needs, the individual and total cost of these work items accompanied by 
either a municipal order or a narrative demonstrating the gravity of 
the critical needs in order to address the threshold requirement.
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    \3\ Critical needs are defined as modernization needs at the PHA 
that are a threat to health and safety of residents but that do not 
qualify technically as an emergency since there is no immediate 
threat to tenant health or safety. Examples of critical needs 
include the repair of roofs and plumbing in cases where failure to 
repair the problem would result in a significant increase in the 
expenditure of funds in the future.
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    A non-CGP PHA must demonstrate that it does not have adequate 
reserves to perform the demolition and maintain a reasonable operating 
reserve. The PHA must enumerate its capital reserves and then describe 
the amount of its capital reserves that it anticipates will be used for 
emergency and/or critical needs in FY 1997. Such a PHA must provide the 
specific dollar amount of the capital reserves, an itemized list of the 
emergency and/or critical needs work items, and the individual and 
total cost of these work items accompanied by a narrative demonstrating 
the gravity of the critical needs that it is going to use its funds to 
correct.

D. Civil Rights Compliance

    The Department will use the following standards to assess 
compliance with civil rights laws at the threshold review. In making 
this assessment, the Department shall review appropriate records 
maintained by the Office of Fair Housing and Equal Opportunity, e.g., 
records of monitoring, audit, or compliance review findings, complaint 
determinations, compliance agreements, etc. If the review reveals the 
existence of any of the following, the application will be rejected.
    (1) There is a pending civil rights suit against the sponsor 
instituted by the Department of Justice.
    (2) There is an outstanding finding of noncompliance with civil 
rights statutes, Executive Orders or regulations as a result of formal 
administrative proceedings, unless the applicant is operating under a 
HUD-approved compliance agreement designed to correct the area of 
noncompliance, or is currently negotiating such an agreement with the 
Department.
    (3) There is an unresolved Secretarial charge of discrimination 
issued under Section 810(g) of the Fair Housing Act, as implemented by 
24 CFR 103.400.
    (4) There has been an adjudication of a civil rights violation in a 
civil action brought against it by a private individual, unless the 
applicant is operating in compliance with a court order designed to 
correct the area of noncompliance, or the applicant has discharged any 
responsibility arising from such litigation.

IV. Rating Factors. Maximum [100 Points]

A. Extent of PHA Need for Funding for the Demolition [50 points]

    The PHA will be rated on the extent to which funds are needed to 
demolish the targeted development. Using the threshold data for need 
described in III.C. and materials presented to address this factor, HUD 
will rate the extent of need for funding for the proposed demolition.
    There are two 25 point elements that comprise this factor, as 
follows:
Element 1
    CGP PHAs and non-CGP PHAs will be rated depending on the amount of 
CGP funds or capital reserves remaining after taking into consideration 
grant funds used for emergency and/or critical needs. A CGP PHA must 
provide a comparison of the total cost of demolition of the targeted 
development with the amount remaining in the FY 1997 annual 
comprehensive grant award after funding emergency and/or critical needs 
for FY 1997. Notwithstanding the PHA's annual statement, the Department 
expects a PHA to expend any dollars remaining in the CGP grant after it 
funds any emergency and/or critical needs to partially or fully fund 
the proposed demolition.
    A CIAP PHA is to use the amount of funds in its capital reserves at 
the time of the HOPE VI application as the basis of the computation for 
this element. That is, a CIAP PHA is to compare the total cost of 
demolition of the targeted development with the amount remaining in the 
capital reserves after funding emergency and/or critical needs for FY 
1997.
    PHAs that cannot fund the demolition with the remaining CGP funds 
or capital reserves or those who could only fund a small percent (i.e., 
0 percent to 25 percent) of the demolition with the remaining CGP award 
or capital reserves will receive between 16-25 points.

------------------------------------------------------------------------
  Percent of proposed demolition cost able to be funded with     Points 
                   CGP or capital reserves                      awarded 
------------------------------------------------------------------------
76-100.......................................................        0-5
51-75........................................................      6--10
26-50........................................................      11-15
25-0.........................................................      16-25
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Element 2
    CGP PHAs will be rated on the number of years it will take to fund 
the

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total physical needs of the PHA. PHAs that participate in the CIAP will 
automatically receive the maximum score of 25 points for this element. 
Comprehensive Grant PHAs will be rated on the number of years that it 
will take to fully fund the total physical needs, as identified in the 
Physical Needs Assessment (PNA) approved by HUD. The CGP PHA must 
provide the total cost of the PNA (minus any grant awards funded since 
the date of the PNA) divided by the dollar amount of the FY 1997 CGP 
grant. The resulting figure is the number of years to fully fund the 
PHA's physical needs. For example, if the physical needs of the PHA 
will take 15-years to fund given the PHA's FY 1997 grant, then the PHA 
is eligible to receive 25 points.

------------------------------------------------------------------------
                                                                 Points 
  Number of years to complete the physical needs assessment     awarded 
------------------------------------------------------------------------
0............................................................          0
1-4..........................................................          6
5-9..........................................................         12
10-14........................................................         18
15 or more...................................................         25
------------------------------------------------------------------------

    PHAs that participate in the CIAP will automatically receive the 
maximum score of 25 points for this element.
    The total points for this factor can be determined by combining the 
score from element 1 with the score from element 2.

B. Extent of Impact of Demolition of Building on PHA and Surrounding 
Neighborhood [20 points]

    1. The PHA must have described the extent to which the demolition 
of the development or portion of the development will have a 
significant impact on the remainder of the development and/or the PHA 
as it relates to such factors as the financial situation of the PHA, 
the elimination of long term vacancies, fire safety, resident and 
neighborhood security, as well as any other health and safety factors 
the change will bring about.
    2. The degree to which the demolition of the development or portion 
of the development will eliminate serious conditions or problems in the 
surrounding neighborhood, e.g., buildings that are a health hazard, an 
imminent threat to health and safety, a notorious security or safety 
problem, or an extremely negative impact on the surrounding area.
    Each PHA must have submitted a narrative description to address 
this factor. The assignment of points is described in the following 
chart. The PHA must have developed a strong narrative to describe the 
problems caused by the development and provide any available 
documentation of problems such as a copy of a condemnation order, fire 
department citations of violations, other code enforcement violations, 
etc.

------------------------------------------------------------------------
                                  Degree of significance and quantity of
         Points  awarded            problems resolved by demolition as  
                                   described by the PHA in its narrative
------------------------------------------------------------------------
9 to 10.........................  The demolition will resolve a         
                                   significant number of serious        
                                   problems, including health and safety
                                   problems that have a significant     
                                   impact on the surrounding            
                                   neighborhood.                        
6 to 8..........................  The demolition will resolve a moderate
                                   number of important health and safety
                                   problems and have significant impact 
                                   on surrounding neighborhood.         
0 to 5..........................  The demolition will resolve a few     
                                   problems of lesser importance and    
                                   have little impact on the surrounding
                                   neighborhood.                        
------------------------------------------------------------------------

C. Extent of PHA's Actions to Affirmatively Further Fair Housing [10 
points]

    In addressing the affirmatively furthering fair housing rating 
factor, actions that the PHA has taken, or plans to take, to accomplish 
this objective may include, but are not limited to the following:
    1. Actions that contribute to the provision of fair housing choice 
to residents displaced as a result of demolition or disposition. These 
actions may also include programs or activities that provide 
information on housing opportunities outside of minority concentrated 
areas within the PHA's jurisdictional boundaries, or efforts that 
encourage landlords/owners to make available to displacees housing 
opportunities outside of minority concentrated areas. For example, the 
PHA may refer applicants to other available housing as part of an 
established housing counseling service or assist applicants in getting 
on other waiting lists.
    2. Actions that overcome the consequence of prior discriminatory 
practices or usage which may have tended to exclude persons of a 
particular race, color, religion, sex, family status and national 
origin; or that overcome the effects of past discrimination against 
persons with disabilities. Such actions may include those actions taken 
without any kind of legally binding order, but which have changed 
previous discriminatory management, resident selection and assignment 
or maintenance practices.
    The PHA must have submitted a narrative description in response to 
C. 1. and 2.

D. Extent of PHA's Capability and Readiness to Perform the Demolition 
[10 points]

    Based on the latest HUD records (including the PHA's PHMAP 
modernization score) the PHA will be scored on the extent of the PHA's 
ability to begin immediately after approval and to effectively carry 
out the proposed demolition (e.g., the PHA has a request for proposal 
(RFP) prepared and ready to issue).
    This criteria is divided into two factors--capability which has a 
maximum of 8 points and readiness to perform the demolition which has a 
maximum of 2 points.
    HUD will consider the extent to which the PHA with any active 
capital funding under CIAP, CGP and development programs, is on 
schedule or, if behind schedule, has resolved all major issues and has 
been making good progress in the last six months. The PHA's capability 
will be judged by the immediate past performance in timely use of 
funding for capital programs including CIAP, CGP and development. For 
this criterion the capability of the PHA will be measured by the 
timeliness of fund obligation from the modernization PHMAP score, as 
follows:

------------------------------------------------------------------------
         Maximum  points                        Capability              
------------------------------------------------------------------------
8...............................  Latest modernization PHMAP score of A.
6...............................  Latest Modernization PHMAP score of B.
4...............................  Latest Modernization PHMAP score of C.
2...............................  Latest Modernization PHMAP score of D.
------------------------------------------------------------------------

    The readiness of the PHA will be determined by whether the PHA has 
a draft RFP that is in compliance with Sec. 85.36 for the demolition 
contract prepared at the time of its response to this NOFA. The PHA 
must have included in its application a copy of the draft RFP to 
document its contention. A PHA with a draft RFP will receive the 
maximum score for this element, 2 points. A PHA without a draft RFP 
will receive 0 points. The PHA's score on readiness is to be combined 
with its score on modernization capability to give the total score on 
the rating factor.

E. Degree of Local Government Support [10 points]

    The Secretary's Representative shall award up to 10 points for the 
degree of

[[Page 30406]]

local government support of the proposed demolition as demonstrated 
through either funding or in-kind-contributions of services to the PHA, 
over and above what is required under the Cooperation Agreement for 
municipal services, (e.g., building and staffing of a police or fire 
substation, refuse collection, locating job training, child care or 
health services near or within the PHA). In the event that a 
Representative does not score this factor for any application during 
the time allotted for the first stage of the review process, the 
program office will read and score the Degree of Local Government 
Support factor.

------------------------------------------------------------------------
                                                                Maximum 
                     NOFA rating factors                         points 
------------------------------------------------------------------------
Extent of need for demolition funding........................         50
Extent of effect of demolition of building or portion of                
 building on PHA and community...............................         20
Extent of PHA actions to affirmatively furthering fair                  
 housing.....................................................         10
Extent of PHA's capability and readiness.....................         10
Degree of local government support...........................         10
                                                              ----------
    Total maximum points.....................................        100
------------------------------------------------------------------------

V. Application Processing

A. Corrections to Deficient Applications

    To be eligible for processing, the original HOPE VI Demolition 
Application including the demolition application, where applicable, 
must be physically received by HUD Headquarters by the time and date 
specified in this NOFA. Where a demolition application is submitted 
with the HOPE VI Demolition application, it must be complete in 
accordance with Section II (a)(1) of this NOFA. HUD will immediately 
perform a review to determine whether an application is complete. A 
PHA's HOPE VI Demolition application will not be disqualified for 
rating simply because the demolition application is not approvable at 
the time it is submitted to the Headquarters address shown elsewhere in 
this NOFA.
    1. If any of the items listed in Section II A, B, C, and D of this 
NOFA are missing, the PHA's HOPE VI NOFA Demolition Application will be 
considered substantially incomplete and, therefore, ineligible for 
further processing.
    2. If any of the items listed in Section II E (1-8) are required 
but missing or there is a technical mistake on any document, such as an 
incorrect signatory, or a document is missing any other information 
that does not affect evaluation of the HOPE VI or demolition 
applications, HUD will immediately notify the PHA in writing by 
facsimile (fax) that the PHA has 14 calendar days from the date of 
HUD's written notification to submit or correct any of the specified 
items. The PHA will have no opportunity to correct deficiencies other 
than those identified in HUD's written notification, or otherwise to 
supplement or revise its NOFA Application. If any of the items 
identified in HUD's written notification are not corrected and 
submitted within the required time period, the NOFA Application will be 
ineligible for further consideration.

B. Rating and Ranking

    Awards under this NOFA will be made through a selection process 
that will award grants to the highest ranked applications based upon 
points as provided in Section IV. The Field Office Public Housing 
Director and staff, Field Office FHEO Director and staff and the 
Secretary's Representative together with Headquarters staff will 
participate in the rating and ranking.
    HUD will preliminarily review, rate and rank each eligible 
application on the basis of the factors set forth in Sections III and 
IV. A final review panel will then review the scores of all 
applications whose preliminary score is above a base score established 
by HUD, using the same evaluation factors set forth in Section IV. HUD 
intends to set the base score so that applications requesting a total 
of approximately $60 million are advanced to the final review stage.
    The review panel will assess each of the applications advanced to 
final review and will assign the final scores. HUD will select for 
funding the most highly rated applications in rank order up to $30 
million, the amount of available funding.
    The Field Office of Public Housing shall forward a list of all PHAs 
to be rated to the Secretary's Representative for scoring the rating 
factor related to local government support. Within an established time 
frame, the Field Office of Public Housing shall provide the Secretary's 
Representative with the portion of each HA's narrative statement, 
included in the HOPE VI application, related to the technical review 
factor on local government support.
    In addition, the Field Office of Public Housing shall forward a 
list of all applications to the Field Office of FHEO to review for the 
program threshold criteria. Once the assessment of each applicant on 
the threshold criteria has been completed, the list of all applications 
to be rated will then be forwarded to the Field Office of FHEO for 
scoring the rating factor related to affirmatively furthering fair 
housing. Within an established time frame the Field Office of Public 
Housing shall provide the Office of FHEO with the portion of each PHA's 
narrative statement, included in the HOPE VI application, related to 
the threshold factor and rating factor on affirmatively furthering fair 
housing.

C. Program Threshold Factors

    A demolition application must be found approvable in accordance 
with CFR part 970 before HUD will obligate funds to an applicant 
selected for funding.

D. Litigation

    In accordance with the provisions of the Departments of Veterans 
Affairs and Housing and Urban Development-Independent Agencies 
Appropriations Act, 1997, Public Law 104-204, no appropriated funds 
shall be used directly or indirectly for the purpose of granting a 
competitive advantage in awards to settle litigation or pay judgments 
in court cases affecting applicants for this program. The Department 
will not, when reviewing applications under this NOFA, award extra 
points, for example, to any PHA involved in a consent decree mandating 
desegregation of the PHA's public housing.

E. Reduction in Requested Grant Amount

     HUD may select an application for funding in an amount lower than 
the amount requested by the PHA, or adjust line items in the proposed 
grant budget within the amount requested (or both). The Department will 
adjust for any costs which are determined to be unreasonable or 
inadequately justified.

F. Environmental Review

    The Field Office will review the environmental impact of the 
demolition activities proposed by the PHA in accordance with 24 CFR 
part 50. The PHA shall provide any documentation to the Field Office 
that is needed to carry out its review under the National Environmental 
Policy Act (NEPA) and related environmental laws, orders and 
regulations.

G. Notification of Funding Decisions

    HUD will not notify PHAs as to whether they have been selected to 
participate until the announcement of the selection of all recipients 
under this NOFA. HUD will provide written notification to PHAs that 
were selected

[[Page 30407]]

for funding and to those that were not selected.

H. Annual Contributions Contract (ACC) Amendment

    After HUD selects a PHA for funding under this NOFA, HUD and the 
PHA shall enter into an ACC Amendment, setting forth the amount of the 
grant and applicable rules, terms, and conditions, including sanctions 
for violation of the amendment. Among other things, the amendment will 
require the PHA to agree to the following:
    1. To carry out the program in accordance with the provisions of 
this NOFA, applicable law, the approved NOFA Application and Demolition 
Application, and all other applicable requirements;
    2. To comply with such other terms and conditions, including 
recordkeeping and reports, as HUD may establish for the purposes of 
administering, monitoring, and evaluating the program in an effective 
and efficient manner;
    3. That HUD may withhold, withdraw, or recapture any portion of a 
grant, terminate the ACC Amendment, or take other appropriate action 
authorized by the 1997 Appropriations Act or under the ACC Amendment if 
HUD determines that the PHA is failing to carry out the approved 
demolition in accordance with the application as approved and this 
NOFA.

I. Failure To Proceed Expeditiously

    An applicant may be selected for funding for HOPE VI demolition in 
advance of the approval of its demolition application. However, the 
demolition application must be approved within three (3) months of the 
fund reservation or the funds will be withdrawn, unless HUD grants an 
extension to this deadline. In the event that an applicant selected to 
receive HOPE VI funding does not proceed in a manner consistent with 
its application, HUD may withdraw any unobligated balances of funding 
and make this funding available subject to applicable law, in HUD's 
discretion, to the next highest-ranked applicant that was not selected 
for funding in the most recently conducted HOPE VI selection process or 
combined with funding under an upcoming competitive selection process. 
Failure to proceed with respect to obligated funds will be governed by 
the terms of the Grant Agreement or ACC Amendment, as applicable. In 
selecting PHAs for the redistribution of funds to one or more other 
eligible PHAs, HUD will select a PHA from the most recently conducted 
selection process for demolition funding.

VI. Applicability of Other Federal Requirements

A. Fair Housing Requirements

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

B. Nondiscrimination on the Basis of Age or Handicap

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

C. Employment Opportunities

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

D. Minority and Women's Business Enterprises

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

E. OMB Circulars

    The policies, guidelines, and requirements of OMB Circular Nos. A-
87 (Cost Principles Applicable to Grants, Contracts and Other 
Agreements with State and Local Governments) and 24 CFR part 85 
(Administrative Requirements for Grants and Cooperative Agreements to 
State, Local, and Federally Recognized Indian Tribal Governments), 
apply to the award, acceptance, and use of assistance under this NOFA 
by PHAs, and to the remedies for noncompliance, except when 
inconsistent with the provisions of the 1997 Appropriations Act, other 
Federal statutes, or this NOFA. PHAs also are subject to the audit 
requirements of OMB Circular A-128, implemented at 24 CFR part 44. 
Copies of OMB Circulars may be obtained from E.O.P. Publications, Room 
2200, New Executive Office Building, Washington, DC 20503, telephone 
(202) 395-7332 (this is not a toll-free number). There is a limit of 
two free copies.

F. Debarred or Suspended Contractors

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

G. Conflict of Interest

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

H. Wage Rates

    Davis-Bacon wage rates apply to demolition followed by construction 
on the site. HUD-determined wage rates apply to demolition followed 
only by filling in the site and establishing a lawn.

I. Lead-Based Paint Testing and Abatement

    PHAs shall comply with the Lead-Based Paint Poisoning Prevention 
Act (42 U.S.C. 4821, et seq.) and 24 CFR part 35; 24 CFR part 965, 
subpart H; and 24 CFR 968.110(k). Tenant-based assistance provided to 
PHAs under this program will be subject to 24 CFR 982.401 and 24 CFR 
part 35. Unless otherwise provided, PHAs shall be responsible for 
testing and abatement activities before demolition as appropriate to 
meet state and Federal requirements.

[[Page 30408]]

J. Relocation

    The requirements of the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 and government-wide 
implementing regulations at 49 CFR part 24 apply to funding under this 
NOFA.

VII. Other Matters

A. Paperwork Reduction Act

    The information collection requirements of this NOFA related to the 
HOPE VI program (including Forms HUD-52825-A and HUD-52820-A required 
by Sections K.1.a and M.3 of the NOFA) have been submitted to the 
Office of Management and Budget (OMB) for review under the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501-3520). The OMB control number, 
when assigned, will be announced by separate notice in the Federal 
Register. The information collection requirements of this NOFA related 
to the demolition approval have been approved by OMB and assigned 
approval number 2577-0075, which expires on March 31, 1998. 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.

B. Environmental Impact

    This NOFA provides funding under, and does not alter the 
environmental provisions of, regulations in 24 CFR part 970, which have 
been published previously in the Federal Register. 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). The environmental review provisions of 24 CFR 
part 970 are found in Sec. 970.4.

C. Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that this NOFA 
will not have substantial, direct effects on States 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 NOFA is not subject 
to review under the Order.

D. 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, 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:
1. Documentation and Public Access
    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.
2. Disclosures
    HUD will make available to the public for five years all applicant 
disclosure reports (Form HUD-2880) submitted in connection with this 
NOFA. Update reports (also Form HUD-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.

E. Prohibition Against Advance Information on 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 applications and in the making of funding decisions are 
limited by part 4 from providing advance information to any person 
(other than an authorized employee of HUD) concerning funding 
decisions, or from otherwise giving any applicant an unfair competitive 
advantage. Persons who apply for assistance in this competition should 
confine their inquiries to the subject areas permitted under 24 CFR 
part 4.
    Applicants or employees who have ethics-related questions should 
contact the HUD Office of Ethics (202) 708-3815. (This is not a toll-
free number.) For HUD employees who have specific program questions, 
such as whether particular subject matter can be discussed with persons 
outside HUD, the employee should contact the appropriate Field Counsel 
or Headquarters Counsel for the program to which the question pertains.

F. Prohibition Against Lobbying Activities

    The use of funds awarded under this NOFA is subject to the 
disclosure requirements and prohibitions of section 319 of the 
Department of Interior and Related Agencies Appropriations Act for 
Fiscal Year 1990 (31 U.S.C. 1352) (the Byrd Amendment) and the 
implementing regulations in 24 CFR part 87. These authorities prohibit 
recipients of federal contracts, grants, or loans from using 
appropriated funds for lobbying the Executive or Legislative branches 
of the Federal Government in connection with a specific contract, 
grant, or loan. The prohibition also covers the awarding of contracts, 
grants, cooperative agreements, or loans unless the recipient has made 
an acceptable certification regarding lobbying. Under 24 CFR part 87, 
applicants, recipients, and subrecipients of assistance exceeding 
$100,000 must certify that no federal funds have been or will be spent 
on lobbying activities in connection with the assistance.
    If the amount applied for is greater than $100,000, the 
certification is required at the time of application for funds is made 
that federally appropriated funds are not being or have not been used 
in violation of the Byrd Amendment. If the amount applied for is 
greater than $100,000 and the PHA has made or has agreed to make any 
payment using nonappropriated funds for lobbying activity, as described 
in 24 CFR part 87 (Byrd Amendment), the submission also must include 
the SF-LLL, Disclosure of Lobbying Activities. The PHA determines if 
the submission of the SF-LLL is applicable.

G. Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance program number is 
14.864.


[[Page 30409]]


    Dated: May 22, 1997.
Kevin Emanuel Marchman,
Acting Assistant Secretary for Public and Indian Housing.
[FR Doc. 97-14384 Filed 6-2-97; 8:45 am]
BILLING CODE 4210-33-P