[Federal Register Volume 62, Number 120 (Monday, June 23, 1997)]
[Notices]
[Pages 33952-33957]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16249]



[[Page 33951]]

_______________________________________________________________________

Part II





Department of Housing and Urban Development





_______________________________________________________________________



Notice of Fiscal Year 1997 Funding for the Section 8 Rental Certificate 
and Rental Voucher Programs; Notice

  Federal Register / Vol. 62, No. 120 / Monday, June 23, 1997 / 
Notices  

[[Page 33952]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4220-N-01]


Notice of Fiscal Year 1997 Funding for the Section 8 Rental 
Certificate and Rental Voucher Programs

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

ACTION: Notice of Fiscal Year (FY) 1997 funding for the Section 8 
Rental Certificate and Rental Voucher Programs.

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

SUMMARY: This notice provides general information about the Section 8 
certificate and voucher program budget authority made available by 
HUD's FY 1997 Appropriations Act and additional carryover budget 
authority that is available for use in FY 1997. This notice also 
describes the application process for making these Section 8 funds 
available to public housing agencies (HAs), including Indian housing 
authorities, during FY 1997 (October 1, 1996 to September 30, 1997).

FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Director, Operations 
Division, Office of Rental Assistance, Office of Public and Indian 
Housing, Room 4220, Department of Housing and Urban Development, 451 
Seventh Street, S.W., Washington, D.C. 20410-8000, telephone (202) 708-
0477. Persons with hearing or speech impairments may call HUD's TTY 
number (202) 708-4594, or the Federal Information Relay Service at 
(800) 877-8339. (With the exception of the ``800'' number, these 
telephone numbers are not toll-free.)

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 related HUD NOFAs, other than those specifically mentioned 
above, 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.
    In addition to today's notice of funding, HUD has recently 
published four other NOFAs regarding housing revitalization. On April 
14, 1997 (62 FR 18242), HUD published in the Federal Register the NOFA 
for the Revitalization of Severely Distressed Public Housing (HOPE VI). 
On May 1, 1997 (62 FR 23928), HUD published the NOFA for the 
Comprehensive Improvement Assistance Program. On June 3, 1997, HUD 
published the Lead-based Paint Hazard Reduction NOFA (62 FR 30380) and 
the Public Housing Demolition NOFA (62 FR 30402).
    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. HUD may 
consider additional steps on NOFA coordination 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. FY 1997 Section 8 Certificate and Voucher Unit Funding Categories 
and Amounts

    This notice provides general information about the Section 8 
certificate and voucher program budget authority made available 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; 110 Stat. 2874, 2882) and additional 
carryover budget authority that is available for use in fiscal year 
(FY) 1997. The following are the categories for which Section 8 
certificate and voucher funds will be offered during FY 1997 (October 
1, 1996 to September 30, 1997): (1) Relocation units for families 
currently living in public housing (a) for which the HA has submitted a 
demolition/disposition application, or (b) subject to the distressed 
public housing conversion requirements of section 202 of the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996 (Pub. L. 104-
134, approved April 26, 1996), hereafter referred to as distressed 
public housing conversion units; (2) Replacement units in exchange for 
the recapture of unused public housing development funds (including 
major reconstruction of obsolete projects (MROP) or comprehensive 
improvement assistance program (CIAP) funds approved by HUD for 
conversion to development usage); (3) Replacement units for (a) public 
housing approved by HUD for demolition/disposition, or (b) distressed 
public housing conversion units; (4) Units for families currently 
living in a Section 23 leased housing project with an HA lease (or HAP 
contract if under the Section 23 housing assistance payments program) 
expiring during FY 1997; (5) Units for the family unification program; 
(6) Family self-sufficiency (FSS) service coordinators; (7) Units for 
the relocation of witnesses involved in law enforcement and criminal 
prosecution; (8) Units for persons with disabilities in support of 
designated public housing allocation plans and preferences for 
nonelderly disabled families in certain project-based Section 8 
projects; (9) Units for the mainstream program for persons with 
disabilities; (10) Units for families currently living in HUD-owned, 
Section 8 project-based HAP contract termination, Section 8 project-
based opt-out, and FHA insured prepayment projects; (11) Counseling to 
achieve broader housing opportunities; (12) Units for litigation; (13) 
Certificate and voucher renewals; and (14) Certificate cost amendments. 
The approximate amount of funds and Section 8 units for each category, 
identification of the sources for application information, and the 
application due dates are summarized in the chart below.

[[Page 33953]]



----------------------------------------------------------------------------------------------------------------
                                    Approx. funding     Approx. No. of     Application info     Application due 
        Funding category                amount               units              source               date       
----------------------------------------------------------------------------------------------------------------
1. Public housing relocation....  Category 1, 2 & 3:  12,400 units......  This notice.......  3 p.m. (local FO  
                                   $147.5M ($77.5M 2-                                          time) August 22, 
                                   yr carryover BA &                                           1997.            
                                   $70M 1-yr HOPE VI                                                            
                                   BA).                                                                         
2. Public housing development     See funding         See funding         This notice.......  3 p.m. (local FO  
 funds recapture exchange.         category 1.         category 1.                             time) August 22, 
                                                                                               1997.            
3. Public housing replacement...  See funding         See funding         This notice.......  3 p.m. (local FO  
                                   category 1.         category 1.                             time) August 22, 
                                                                                               1997.            
4. Sec. 23 conversions..........  $2.8M.............  645 units.........  HUD FO............  n/a.              
 5. Family unification..........  $58.8M............  6,400 units.......  4/18/97 NOFA......  3 p.m. (local FO  
                                                                                               time)            
                                                                                              6/17/97.          
6. FSS coordinators.............  $15M..............  n/a...............  5/1/97 NOFA.......  3 p.m. (local FO  
                                                                                               time)            
                                                                                              6/2/97.           
7. Witness relocation...........  $2M...............  300 units.........  Notice PIH-96-      n/a.              
                                                                           83(HA) dated 10/                     
                                                                           11/96.                               
8. Designated public housing      $50M..............  8,400 units.......  4/10/97 NOFA......  None, unless later
 alloc plans & Sec. 8 project-                                                                 estab.           
 based disabled preferences.                                                                                    
9. Mainstream program for         $48.5M 5-yr BA....  2,000 units.......  4/10/97 NOFA......  3 p.m. (local FO  
 persons with disabilities.                                                                    time)            
                                                                                              6/9/97.           
10. HUD-owned, Sec. 8 project-    $176M.............  26,800 units......  HUD FO............  n/a.              
 based termin & opt-outs, &                                                                                     
 prepayment relocation.                                                                                         
11. Counseling..................  $12.4M carry-over   n/a...............  HUD HQ............  n/a.              
                                   2-yr BA.                                                                     
12. Litigation..................  $30M carryover 2-   1,700 units.......  HUD HQ............  n/a.              
                                   yr BA.                                                                       
13. Renewals....................  $2.5B.............  n/a...............  HUD FO............  n/a.              
14. Cost amendments.............  $152.2M...........  n/a...............  HUD FO............  n/a.              
----------------------------------------------------------------------------------------------------------------

II. Applications for Funding Category 1 (Public Housing Relocation), 
Funding Category 2 (Public Housing Development Funds Recapture 
Exchange), and Funding Category 3 (Public Housing Replacement)

A. Eligibility for Funding Category 1 (Public Housing Relocation) and 
Funding Category 3 (Public Housing Replacement)--Prohibition Against 
Receiving Section 8 Relocation or Replacement Assistance if HA Has 
Received Other Relocation or Replacement Funds for the Same Unit

    To be eligible for funding categories 1 and 3 relocation/
replacement assistance, the HA must not have received Section 8 funds, 
public housing development funds, MROP, vacancy consolidation funds, 
Revitalization of Severely Distressed Public Housing Grant Program 
(hereafter referred to as the HOPE VI program) funds, condemnation 
proceeds, or replacement insurance funds for relocation or replacement 
housing for the public housing units that are the subject of the 
application. For example, if an HA received Section 8 funding for 
relocation of a public housing resident living in a public housing unit 
to be demolished, the HA is not eligible to receive Section 8 
replacement funding for the same unit. Similarly, if an HA received 
public housing development funds to replace a demolished public housing 
unit, the HA is not eligible to receive either Section 8 relocation or 
replacement funding for the same unit.
    Receipt of Section 8 relocation assistance does not affect the 
eligibility of the HA to receive subsequent HOPE VI replacement 
construction funding for the same units.

B. Eligibility for Funding Category 1 (Public Housing Relocation), 
Funding Category 2 (Public Housing Development Funds Recapture 
Exchange), and Funding Category 3 (Public Housing Replacement)--
Requirement to Submit a Demolition/Disposition Application and Use 
Section 8 Funding by September 30, 1998

    To be eligible for funding categories 1 and 3 relocation/
replacement assistance other than the conversion of distressed public 
housing units: if a demolition/disposition application has not been 
previously submitted or the application previously submitted was 
incomplete, the HA must simultaneously submit copies of the initial or 
amended demolition/disposition application to the HUD field office and 
the appropriate HUD processing center. The demolition application must 
be complete and in accordance with 24 CFR part 970. (A demolition/
disposition application is not required for public housing developments 
that meet the statutory requirements for the mandatory conversion of 
distressed public housing units, as certified by the HA under the terms 
of this notice.) To be eligible for funding categories 1, 2, and 3 
relocation/replacement assistance, the HA must demonstrate that the 
Section 8 certificates or vouchers will be issued by September 30, 1998 
or provide good cause justification for an exception to this deadline.

C. Eligibility for Funding Category 1 (Public Housing Relocation), 
Funding Category 2 (Public Housing Development Funds Recapture 
Exchange), and Funding Category 3 (Public Housing Replacement)--
Ineligibility Due to Civil Rights, Litigation, Inspector General, and 
Management Review Findings or Actions

    HUD will not process applications that fall into any of the 
following categories:
    1. 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.
    2. 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

[[Page 33954]]

compliance agreement designed to correct the areas of noncompliance.
    3. 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.
    4. HUD has denied application processing under Title VI of the 
Civil Rights Act of 1964 and HUD regulations (24 CFR 1.8) or procedures 
(HUD Handbook 8040.1), the Attorney General's Guidelines (28 CFR 50.3), 
or under section 504 of the Rehabilitation Act of 1973 and HUD 
regulations (24 CFR 8.57).
    5. The HA has: (a) Serious unaddressed, outstanding Inspector 
General audit, Fair Housing and Equal Opportunity monitoring and 
compliance review, or HUD management review findings for its 
certificate or voucher programs; (b) serious underutilization of 
certificates or vouchers or certificates not attributable to the 3-
month statutory delay for the reissuance of rental vouchers and 
certificates; or (c) significant program compliance problems, unless 
the HA application designates a subcontractor acceptable to HUD to 
administer the new funding increment on behalf of the HA. The HA's 
application must include: (i) An agreement by the subcontractor to 
administer the new funding increment and a statement that outlines the 
steps the HA is taking to resolve the program findings, or (ii) a 
proposal for management improvements that the HA will implement to 
remedy the program findings. Immediately after the publication of this 
Notice, the HUD field office will notify, in writing, those HAs that 
are not eligible to apply without a subcontractor acceptable to HUD or 
a proposal for management improvements acceptable to HUD.
    6. HUD determines that any pending litigation described in this 
section II.C. of this notice may seriously impede the ability of the HA 
to administer the certificates or vouchers.
    HA Responsibilities: HAs that receive certificate or voucher funds 
must affirmatively further fair housing by conducting activities such 
as explaining the advantages of moving to an area that does not have a 
high concentration of poor families if the family is currently living 
in a high poverty census tract in the HA's jurisdiction.

D. Application Deadline for Funding Category 1 (Public Housing 
Relocation), Funding Category 2 (Public Housing Development Funds 
Recapture Exchange), and Funding Category 3 (Public Housing 
Replacement)

    Section 8 applications for public housing relocation and 
replacement funding categories 1 through 3 must be submitted to the HUD 
field office on or before 3 p.m. (local field office time) on August 
22, 1997.

E. Application Content for Funding Category 1 (Public Housing 
Relocation), Funding Category 2 (Public Housing Development Funds 
Recapture Exchange), and Funding Category 3 (Public Housing 
Replacement)

1. Application Requirements for all Funding Category 1 (Relocation) and 
Funding Category 3 (Replacement) Applications
    A Section 8 application for funding categories 1 and 3 must 
include: (a) Form HUD-52515, Funding Application for Section 8 Tenant-
Based Assistance dated 9/95; (b) identification of each public housing 
development by name, project number, and the number of units by 
development being demolished, disposed, or subject to the distressed 
public housing conversion requirements; (c) the time schedule for the 
issuance of certificates/vouchers and relocation of the public housing 
tenants, or the public housing demolition or disposition and the 
issuance of certificates/vouchers; (d) except for distressed public 
housing conversion applications, the submittal date of the HA's 
demolition/disposition application and the actual or anticipated date 
of approval of the HA demolition/disposition request; (e) a statement 
indicating whether Section 8 funding for relocation or replacement was 
previously provided for the public housing units for which the HA is 
submitting an application; (f) identification of any funds committed to 
the development that could be used for hard replacement of the units; 
and (g) a statement indicating whether there is any, and the amount of, 
Section 8 funding previously provided by HUD to the HA for relocation 
or replacement of any public housing development that is no longer 
needed.
2. Requirements for Funding Category 2 Public Housing Development Funds 
Recapture Exchange
    A Section 8 application for funding category 2 must include: (1) 
Form HUD-52515, Funding Application for Section 8 Tenant-Based 
Assistance dated 9/95; (2) identification of each public housing 
development from which development funds will be recaptured by name, 
project number, the number of units and the date that HUD approved the 
funds (the HUD field office can assist the HA in determining this 
date); (3) the status of development fund usage; (4) an HA Executive 
Director agreement that the remaining development funds may be 
recaptured by HUD if Section 8 replacement units are provided; and (5) 
the time schedule for the issuance of certificates/vouchers.
3. Additional Application Requirements for Funding Category 1 
(Relocation) Applications
    For relocation applications, the following information is also 
required: an assessment of the availability of vacant public housing 
units which could be used for relocation, and the extent to which the 
HA will use public housing vacancies and Section 8 certificates and 
vouchers for relocation.
4. Additional Application Requirements for Funding Category 3 
(Replacement) Applications
    For replacement applications, the following information is also 
required: a statement indicating whether the public housing units were 
occupied or vacant at the time of the demolition/disposition approval 
or the date of the certification that the development meets the 
statutory requirement for distressed public housing conversion (see 
discussion on conversion applications below).
5. Additional Application Requirements for Funding Category 1 and 
Funding Category 3 Distressed Public Housing Conversion Applications
    For conversion-related applications only, the following information 
is also required: (a) A dated HA Executive Director certification that 
the Section 8 units are being requested for distressed public housing 
units that the HA has determined are subject to the conversion 
requirements of section 202 of the Omnibus Consolidated Rescissions and 
Appropriations Act of 1996; and (b) an HA Executive Director 
certification that the distressed public housing units that are the 
subject of the replacement housing application will be replaced with 
Section 8 certificate or voucher assistance and will not be 
rehabilitated and reoccupied as public housing or replaced with new or 
acquired public housing units.

[[Page 33955]]

6. Additional Application Requirements for Funding Category 1 and 
Funding Category 2 Applications When the HA Has a Pending HOPE VI 
Proposal
    For applications related to pending (submitted but not yet funded) 
HOPE VI proposals only, the following information is also required: A 
statement indicating whether the demolition, disposition, or conversion 
plans are contingent upon receipt of HOPE VI funds (i.e., whether these 
plans will proceed if the HOPE VI program application is not funded).

F. HUD Approval Process for Funding Category 1 (Public Housing 
Relocation), Funding Category 2 (Public Housing Development Funds 
Recapture Exchange), and Funding Category 3 (Public Housing 
Replacement)

1. HUD Field Office Review Actions
    Immediately after publication of this notice, the HUD field office 
must notify any PHA that is ineligible to apply for certificates or 
vouchers unless there is an agreement by a subcontractor acceptable to 
HUD to administer the funding increment or a proposal for management 
improvements acceptable to HUD. The HUD field office must complete a 
Section 8 fund reservation worksheet for each Section 8 application 
received, and forward each worksheet to the Operations Division in the 
Office of Rental Assistance in Headquarters with a cover memorandum 
indicating the status of the HA demolition/disposition request or 
distressed public housing conversion; a target date for completion of 
the HUD processing center review of any demolition/disposition request 
and whether the application is complete, both as confirmed by 
contacting Ainars Rodins at (212) 264-1945; an assessment of the 
reasonableness of the HA time schedule for issuing certificates/
vouchers and whether it is likely that certificates or vouchers will be 
issued by September 30, 1998; an assessment of the reasonableness of 
the HA justification of the need for Section 8 relocation resources and 
whether the description of public housing vacancies which could be used 
as relocation resources is accurate; and an assessment of the accuracy 
or reasonableness of any other information submitted by the HA. No 
further HUD field office review of the Section 8 application is 
necessary except for initiating the Section 213 local government 
comment process for funding categories 2 and 3 public housing 
replacement applications. (Section 213 reviews are not required for 
funding category 1 public housing relocation applications.)
2. HUD Headquarters Funding Actions
    HUD headquarters will award the Section 8 funds to HAs for category 
1 applications until all category 1 applications are funded, or all the 
funds are awarded. If there are insufficient Section 8 funds to approve 
all category 1 applications, funding preference will first be given to 
relocation applications with the earliest certificate/voucher issuance 
date that HUD determines the HA is likely to achieve.
    If any funds are remaining after the category 1 fund awards are 
decided, HUD will award funds for category 2 applications until all 
category 2 applications are funded or all the funds are awarded. If 
there are insufficient Section 8 funds to approve all category 2 
applications, funding preference will first be given to applications 
with the earliest date of public housing development fund approval and, 
second, to applications with the earliest certificate/voucher issuance 
date that HUD determines the HA is likely to achieve.
    If any funds are remaining after the category 2 fund awards are 
decided, HUD will award funds for category 3 applications until all 
category 3 applications are funded, or all the funds are awarded. If 
there are insufficient Section 8 funds to approve all category 3 
applications, funding preference will be given first to applications 
for replacement units for public housing occupied at the time of the 
demolition/disposition approval or the date of the certification that 
the public housing development in question meets the statutory 
distressed public housing conversion requirements, and second to 
applications with the earliest certificate/voucher issuance date that 
HUD determines the HA is likely to achieve and HA need as determined by 
HUD.
    If any funds targeted for funding categories 1, 2, and 3 are 
remaining after the category 3 fund awards are decided, HUD will 
determine whether to invite additional Section 8 applications (e.g., 
for HOPE VI or distressed public housing conversion relocation/
replacement needs) or award the excess funds for other HOPE VI program 
purposes. HUD does not intend to award any remaining category 1, 2, or 
3 funds for funding categories 4 through 14 purposes.
3. Rejection or Partial Funding of Applications
    HUD may reject an HA Section 8 application if: (a) The application 
is incomplete; (b) the application does not meet the category 
eligibility criteria specified in this Notice or is otherwise 
deficient; or (c) HOPE VI funds were not approved and the HA has 
indicated that the demolition, disposition, or conversion plans are 
contingent upon receipt of HOPE VI funds. HUD may reject or partially 
fund an HA Section 8 application if HUD determines that the HA will not 
be able to provide the Section 8 rental assistance to the affected 
public housing residents in a timely manner, funds were committed for 
hard replacement of the units, the HA has Section 8 funding previously 
provided to the HA for public housing relocation/replacement that is no 
longer needed, or the HA otherwise does not need the additional funds 
(e.g., the HA has vacant public housing units suitable for relocation). 
If Section 8 funding previously reserved for relocation or replacement 
is no longer needed or will not be used in a timely manner, the FY 1997 
Section 8 funding requests may be offset by such amount.
4. Early Approval of Funding Category 1 Relocation Applications
    HUD may approve a funding category 1 relocation application prior 
to making all funding categories 1, 2, and 3 funding awards when there 
is a compelling reason to provide the relocation units quickly.

Summary of Funding Categories 1, 2, and 3 Application Requirements

    The funding categories 1, 2, and 3 application requirements are 
summarized in the chart below.

------------------------------------------------------------------------
                                   Eligibility       Application content
      Funding category          threshold summary         checklist     
------------------------------------------------------------------------
1. Public housing relocation  HA cannot have        Form HUD-52515; ID  
                               previously received   proj name, #, & #  
                               relocation or         units; C/V         
                               replacement $ for     issuance, demo/    
                               same units; except    dispo, & relocation
                               for distressed        schedule; demo/    
                               conversions, must     dispo applic dates 
                               have submitted a      & approval letter; 
                               complete demo/dispo   statement re: prior
                               applic; must          Sec. 8 funding for 
                               demonstrate that C/   same units; ID     
                               V will be issued by   prior replacement  
                               9/30/98; unless       $; ID prior        
                               meet any exception    unneeded Sec. 8 $; 
                               criteria, must not    statement re:      
                               have civil rights,    occupancy status   
                               litigation, IG, &     when demo/dispo    
                               mgt review findings   approved or        
                               described in this     distressed         
                               Notice.               conversion certif  
                                                     submitted;         

[[Page 33956]]

                                                                        
                                                    ID PH relocation    
                                                     resources; certif  
                                                     that units meet    
                                                     statutory          
                                                     distressed         
                                                     conversion         
                                                     requirements &     
                                                     certif that units  
                                                     will not be        
                                                     reoccupied or      
                                                     replaced with new  
                                                     public housing;    
                                                     HOPE VI statement. 
2. Public housing             Must demonstrate      Form HUD-52515; ID  
 development funds recapture   that C/V will be      proj name, proj #, 
 exchange.                     issued by 9/30/98;    # units & date $   
                               unless meet any       approved; PH dev $ 
                               exception criteria,   usage status;      
                               must not have civil   recapture          
                               rights, litigation,   agreement; C/V     
                               IG, & mgt review      issuance schedule. 
                               findings described                       
                               in this Notice.                          
3. Public housing             HA cannot have        Form HUD-52515; ID  
 replacement.                  previously received   proj name, #, & #  
                               reloc or              units; C/V         
                               replacement $ for     issuance, demo/    
                               same units; except    dispo, & relocation
                               for distressed        schedule; demo/    
                               conver, must have     dispo applic dates 
                               submitted a           & approval letter; 
                               complete demo/dispo   statement re: prior
                               applic; must          Sec. 8 funding for 
                               demonstrate that C/   same units; ID     
                               V will be issued by   prior replacement  
                               9/30/98; unless       $; ID prior        
                               meet any exception    unneeded Sec. 8 $; 
                               criteria, must not    statement re       
                               have civil rights,    occupancy status   
                               litigation, IG, &     when demo/dispo    
                               mgt review findings   approved or        
                               described in this     distressed         
                               Notice.               conversion certif  
                                                     submitted;         
                                                    Certif that units   
                                                     meet statutory     
                                                     distressed         
                                                     conversion         
                                                     requirements &     
                                                     certif that units  
                                                     will not be        
                                                     reoccupied or      
                                                     replaced with new  
                                                     public housing;    
                                                     HOPE VI statement. 
------------------------------------------------------------------------

III. Applications for Funding Category 4, Section 23 Conversions

    Headquarters will allocate certificate funds directly to the HUD 
field offices to assist tenants of Section 23 leased housing for which 
leases (or HAP contracts, if under the Section 23 housing assistance 
payments program) are expiring during FY 1997. An HA that has a Section 
23 leased housing project with a lease or HAP contract expiring during 
FY 1997 should submit a Section 8 application to the HUD field office. 
Funds under this category will be provided on a first-come, first-
served basis.

IV. Applications for Funding Category 5, Family Unification Program

    On April 18, 1997 (62 FR 19208), HUD published a NOFA detailing the 
application procedures for requesting Section 8 funding for the family 
unification program. The FY 1997 competition has been extended 
nationwide.

V. Applications for Funding Category 6, FSS Service Coordinators

    On May 1, 1997 (62 FR 23912), HUD published a NOFA detailing the 
application procedures for requesting funding for Section 8 Family 
Self-Sufficiency program coordinators.

VI. Applications for Funding Category 7, Relocation of Witnesses 
Involved in Law Enforcement and Criminal Prosecution

    HUD will provide funding for vouchers to accommodate requests from 
law enforcement agencies for relocation assistance to families that 
have cooperated in efforts to combat crime in public, Indian, and other 
assisted housing. Notice PIH-96-83(HA), issued October 11, 1996, 
specifies the process for obtaining Section 8 funding for witness 
relocation purposes.

VII. Applications for Funding Category 8, Designated Public Housing 
Allocation Plans and Section 8 Project-Based Disabled Preferences

    HUD will provide certificates and vouchers to HAs in connection 
with allocation plans for designated public housing developments, and 
in connection with certain Section 8 project-based projects. On April 
10, 1997 (62 FR 17672), HUD published a NOFA detailing the procedures 
for requesting Section 8 funding for these purposes.

VIII. Applications for Funding Category 9, Mainstream Program for 
Persons With Disabilities

    On April 10, 1997 (62 FR 17666), HUD published a NOFA detailing the 
procedures for requesting funding for general mainstream tenant-based 
rental assistance for persons with disabilities.

IX. Applications for Funding Category 10, Relocation of Families 
Living in HUD-Owned, Section 8 Project-Based Termination, Section 8 
Opt-Out, and FHA Insured Prepayment Projects

    HUD Headquarters will assign funds for Section 8 tenant-based 
assistance directly to the HUD field offices for eligible families 
living in these projects. HUD field office requests to Headquarters for 
funding under this category will be approved on a first-come, first-
served basis.

X. Funding Category 11, Section 8 Counseling to Achieve Broader 
Housing Opportunities

    HUD Headquarters may provide Section 8 counseling funding to 
provide special counseling or housing search assistance to certificate 
and voucher holders. In addition, HUD may provide a portion of the 
funding available for Section 8 counseling activities to achieve 
broader housing opportunities. Housing agencies that are eligible for 
the special administrative fees for counseling activities will be 
notified by HUD.

XI. Applications for Funding Category 12, Litigation

    HUD will continue to provide funds for settlement of litigation. 
When negotiations of the litigation settlement are complete, HUD 
Headquarters will notify the HUD field offices of the number of 
vouchers/certificates to be provided to the HA. The HUD field office 
will invite Section 8 applications from the HAs eligible for these 
funds.

XII. Funding Category 13, Section 8 Certificate and Voucher 
Renewals

    HUD Headquarters will allocate funds directly to the HUD field 
offices for the renewal of certificate and voucher funding increments 
expiring in FY 1997. Renewal funding will be provided on an ``as-
needed'' basis.

XIII. Funding Category 14, Section 8 Certificate Cost Amendments

    HUD Headquarters will allocate certificate cost amendments within 
the original 15-year term of the ACCs to provide budget authority 
increases to HA certificate programs. HUD Headquarters will allocate 
the funds on an ``as needed'' basis.

Paperwork Reduction Act Statement

    The information collection requirements contained in this notice 
have been approved by the Office of Management and Budget (OMB) in 
accordance with the Paperwork

[[Page 33957]]

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.

Environmental Impact

    This Notice provides funding under, and does not alter 
environmental requirements of, regulations in 24 CFR part 882 subparts 
A, B, C and F; part 887; and part 982; which have been previously 
published in the Federal Register. This Notice 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 Sec. 50.19(c)(5), this notice is categorically excluded from 
environmental review under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321).

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 HUD, the States, and local governments, including HAs.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers for the 
certificate and voucher programs are 14.855 and 14.857.

    Dated: June 16, 1997.
Kevin Emanuel Marchman,
Acting Assistant Secretary for Public and Indian Housing.
[FR Doc. 97-16249 Filed 6-20-97; 8:45 am]
BILLING CODE 4210-33-P `