[Federal Register Volume 62, Number 123 (Thursday, June 26, 1997)]
[Notices]
[Pages 34562-34571]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16753]



[[Page 34561]]

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Part IV





Department of Housing and Urban Development





_______________________________________________________________________



NOFA for Fair Housing Initiatives Program; FY 1997 Competitive 
Solicitation; Notice

  Federal Register / Vol. 62, No. 123 / Thursday, June 26, 1997 / 
Notices  

[[Page 34562]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4193-N-01]


NOFA for Fair Housing Initiatives Program; FY 1997 Competitive 
Solicitation

AGENCY: Office of the Assistant Secretary for Fair Housing and Equal 
Opportunity, HUD.

ACTION: Notice of Funding Availability (NOFA).

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

SUMMARY: This NOFA announces the availability of $15,000,000 of 1997 
Fiscal Year (FY) funding for the Fair Housing Initiatives Program 
(FHIP). This program assists projects and activities designed to 
enforce and enhance compliance with the Fair Housing Act and 
substantially equivalent State and local fair housing laws. HUD will 
fund projects undertaken through the Private Enforcement Initiative 
(PEI), Education and Outreach Initiative (EOI) and the Fair Housing 
Organizations Initiative (FHOI). For this funding round, $1,350,000 is 
reserved from the Fair Housing Organizations Initiative for 
organizations that assist persons with disabilities to build the 
capacity of such organizations to undertake fair housing enforcement 
activities. Additionally, $500,000 is reserved from the Education and 
Outreach Initiative's Regional, local and community-based component for 
projects that propose to address community tensions that arise as 
people expand their housing choices, and $150,000 is reserved under the 
EOI national component for a fair housing site on the Internet.
    In the body of this document is information concerning the 
principal objectives of the NOFA, eligibility, available amounts, 
selection criteria, how to apply for funding, how selections will be 
made, and a checklist of application submission requirements.

DATES: An application kit for funding under this Notice will be 
available following publication of the NOFA. The actual application due 
date will be specified in the application kit. Applicants submitting an 
application under the PEI will be given at least 50 days from today's 
date, until August 15, 1997, to submit their applications. Applicants 
submitting applications under the EOI and the FHOI will be given at 
least 60 days from today's date, until August 25, 1997, to submit their 
applications. Applications will be accepted if they are received on or 
before the application due date, or are received within 7 days after 
the application due date, but with a U.S. postmark or receipt from a 
private commercial delivery service (such as, Federal Express or DHL) 
that is dated on or before the application due date.

ADDRESSES: To obtain a copy of the application kit, please write the 
Fair Housing Information Clearinghouse, P.O. Box 9146, McLean, VA 
22102, or call the toll free number 1-800-343-3442 (voice) or 1-800-
290-1617 (TTY). Also please contact this number if information 
concerning this NOFA is needed in an accessible format.

FOR FURTHER INFORMATION CONTACT: Aztec Jacobs, Office of Fair Housing 
Initiatives and Voluntary Programs, Room 5234, 451 Seventh Street, 
S.W., Washington, D.C. 20410-2000; telephone number (202) 708-0800 
(this is not a toll free number). Persons who use a text telephone 
(TTY) may call 1-800-290-1617.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The information collection requirements contained in this NOFA have 
been approved by the Office of Management and Budget in accordance with 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), and assigned 
OMB control number 2529-0033. An agency may not conduct or sponsor, and 
a person is not required to respond to, a collection of information 
unless the collection displays a valid control number.

Promoting Comprehensive Approaches to Housing and Community 
Development

    HUD is interested in promoting comprehensive, coordinated 
approaches to housing and community development. Economic development, 
community development, public housing revitalization, homeownership, 
assisted housing for special needs populations, supportive services, 
and welfare-to-work initiatives can work better if linked at the local 
level. Toward this end, the Department in recent years has developed 
the Consolidated Planning process designed to help communities 
undertake such approaches.
    In this spirit, it may be helpful for applicants under this NOFA to 
be aware of other related HUD NOFAs that have recently been published 
or are expected to be published in this fiscal year. 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.
    With respect to fair housing, a related NOFA that the Department 
expects to publish in the Federal Register in the next few weeks is the 
NOFA for the Fair Housing Services Center in East Texas.
    To foster comprehensive, coordinated approaches by communities, the 
Department intends for the remainder of FY 1997 to continue to alert 
applicants of HUD's NOFA activity. 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.html. Additional steps to better 
coordinate HUD's NOFAs are being considered for FY 1998.
    To help in obtaining a copy of your community's Consolidated Plan, 
please contact the community development office of your municipal 
government.

I. Substantive Description and Purpose

(a) Authority

    Title VIII of the Civil Rights Act of 1968, as amended, 42 U.S.C. 
3601-19 (Fair Housing Act), charges the Secretary of Housing and Urban 
Development with responsibility to accept and investigate complaints 
alleging discrimination based on race, color, religion, sex, handicap, 
familial status or national origin in the sale, rental, or financing of 
most housing. In addition, the Fair Housing Act directs the Secretary 
to coordinate action with State and local agencies administering fair 
housing laws and to cooperate with, and render technical assistance to, 
public or private entities carrying out programs to prevent and 
eliminate discriminatory housing practices.
    Section 561 of the Housing and Community Development Act of 1987, 
42 U.S.C. 3616 note, established the Fair Housing Initiatives Program 
(FHIP) to strengthen the Department's enforcement of the Fair Housing 
Act and to further fair housing. Implementing regulations are found at 
24 CFR part 125.
    Three general categories of activities were established at 24 CFR 
part 125 for FHIP funding under section 561 of the Housing and 
Community Development Act of 1987: the Administrative Enforcement 
Initiative, the Education and Outreach Initiative, and the Private 
Enforcement Initiative. Section 905 of the Housing and Community 
Development Act of 1992 (HCDA 1992) (Pub. L. 102-550, approved October 
28, 1992), amended section 561 by adding specific eligible applicants 
and activities to the Education and Outreach

[[Page 34563]]

and Private Enforcement Initiatives, as well as an entirely new Fair 
Housing Organizations Initiative. More significantly, section 905 
established FHIP as a permanent program. The final rule implementing 
these statutory amendments was published on November 27, 1995 (60 FR 
58446).

(b) Purpose

    This program assists projects and activities designed to enforce 
and enhance compliance with the Fair Housing Act and substantially 
equivalent State and local fair housing laws.

(c) Objectives

    (1) One of the objectives of this funding round is to provide for a 
wide geographic distribution of awards for fair housing enforcement and 
education services throughout the country, including underserved areas.
    (2) Through the PEI and FHOI components of this NOFA, the 
Department will fund full service and broad-based fair housing 
enforcement projects that address protected classes under the Fair 
Housing Act (except for the set-aside in the FHOI component described 
in Section I(f)(3)(i)(D) and in the following section). Enforcement 
projects must include more than one type of activity. Fair housing 
services are enforcement activities which consist of: complaint intake; 
testing; evaluation of testing results; investigation, including: 
property searches, document reviews, witness interviews; conciliation; 
enforcement of meritorious claims through litigation or referral to 
administrative enforcement agencies; and dissemination of information 
about fair housing laws. These enforcement activities may be conducted 
on a community, local, regional or national level. Furthermore, to be 
funded, projects must be broad-based. Broad-based means not limited to 
a single fair housing issue (such as insurance, mortgage lending or 
advertising), but rather covering more than one issue related to 
discrimination in the provision of housing covered under the Fair 
Housing Act. Proposals under the Education and Outreach Initiative, 
however, may focus on a single issue that addresses protected classes 
under the Fair Housing Act.
    (3) The Fair Housing Act was amended in 1988 to prohibit housing 
discrimination on the basis of disability. This amendment also required 
the provision of reasonable accommodations, where necessary, to permit 
a person with a disability to have the full enjoyment of their housing. 
Moreover, it required certain newly constructed multi-family housing to 
comply with accessibility guidelines published in the Federal Register. 
Although eight years have passed since the enactment of these 
amendments, it appears that in many areas of the country, much of the 
covered newly constructed housing still may fail to comply with the 
Fair Housing Act requirements and many housing providers still 
discriminate against persons with disabilities and refuse to provide 
reasonable accommodations for them. For this funding round, the 
Department seeks to develop the capacity of organizations that assist 
persons with disabilities to undertake fair housing enforcement 
activities. This will enable such organizations to develop the 
capability to become full-service fair housing enforcement 
organizations and thereby provide greater assistance to clients 
(including representing clients from other protected classes who are 
also disabled) in the enforcement of their Fair Housing rights.
    (4) During the last four years, the Department has moved 
aggressively to expand housing choice. Through these efforts, tens of 
thousands of units of segregated, obsolete public housing are being 
demolished. Residents of these units frequently face community 
opposition and prejudice as they attempt to use housing certificates or 
vouchers to move to non-segregated decent housing in other 
neighborhoods. Similarly, public housing agencies and non-profit 
housing providers which seek to develop scattered site public housing 
or small group homes for persons with disabilities in areas outside of 
the inner city also are subject to community resistance. In response to 
these problems, the Department seeks to encourage local fair housing 
organizations, community groups, and local governmental agencies to 
engage in grassroots efforts to resolve community tensions that arise 
as people expand their housing choices. The objective is to bring 
together fair housing organizations with civic leaders, religious and 
community officials, and others to work out solutions to local 
problems.

(d) Definitions

    The definitions that apply to this NOFA are as follows:
    Qualified fair housing enforcement organization (QFHO-E) means any 
organization, whether or not it is solely engaged in fair housing 
enforcement activities, that--
    (1) Is organized as a private, tax-exempt, nonprofit, charitable 
organization;
    (2) Has at least 2 years experience in complaint intake, complaint 
investigation, testing for fair housing violations and enforcement of 
meritorious claims; and
    (3) Is engaged in complaint intake, complaint investigation, 
testing for fair housing violations and enforcement of meritorious 
claims at the time of application for FHIP assistance. For the purpose 
of meeting the 2-year qualification period for these activities it is 
not necessary that the activities were conducted simultaneously, as 
long as each activity was conducted for 2 years. It is also not 
necessary for the activities to have been conducted for 2 consecutive 
or continuous years. An organization may aggregate its experience in 
each activity over the 3 year period preceding its application to meet 
the 2-year qualification period requirement.
    Fair housing enforcement organization (FHO-E) means any 
organization that--
    (1) Is organized as a private, tax-exempt, nonprofit, charitable 
organization;
    (2) Is currently engaged in complaint intake, complaint 
investigation, testing for fair housing violations and enforcement of 
meritorious claims; and
    (3) Upon the receipt of FHIP funds will continue to be engaged in 
complaint intake, complaint investigation, testing for fair housing 
violations and enforcement of meritorious claims.
    Meritorious claims means enforcement activities by an organization 
that resulted in lawsuits, consent decrees, legal settlements, HUD and/
or substantially equivalent agency (under 24 CFR 115.6) conciliations 
and organization-initiated settlements with the outcome of monetary 
awards for compensatory and/or punitive damages to plaintiffs or 
complaining parties, or other affirmative relief, including the 
provision of housing. Applicants should note that the definition of 
``meritorious claims'' is only relevant as a part of the definition of 
QFHO-E and FHO-E, and does not impose a limit on the kinds of 
activities that may be funded under FHIP.

(e) Allocation Amounts

    The Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997, 
(approved September 26, 1996, Pub. L. 104-204), (97 App. Act) 
appropriated $15 million for activities pursuant to section 561, the 
Fair Housing Initiatives Program. This amount is being made available 
on a competitive basis to eligible organizations that submit timely

[[Page 34564]]

applications and are selected in response to this NOFA. The funding 
selections will be made on the basis of criteria for eligibility, 
factors for award, completeness of budget information, and any other 
factors described in this NOFA.
    The full cost of FY 1997 multi-year awards under the Private 
Enforcement Initiative will be funded from FY 97 funds. Recipients of 
FHIP grant awards under the Private Enforcement Initiative (PEI) based 
upon applications submitted under the FY 1996 FHIP NOFA, RFA-96-1 (FR-
4047, published May 24, 1996, 61 FR 26362), and recipients of PEI FHIP 
grant awards based upon applications submitted under the FY 1995 FHIP 
NOFA, RFA-95-1 (FR-3878, published April 11, 1995, 60 FR 18444), may 
not apply in the FY 1997 competition for multi-year Private Enforcement 
Initiative awards.
    The Department retains the right to shift funds among the FHIP 
Initiatives listed below, within statutorily prescribed limitations. 
The amounts included in this NOFA are subject to change based on fund 
availability. The amount of FY 1997 funding available for the FHIP is 
divided among three Initiatives as follows:
(1) Education and Outreach Initiative (EOI)
    The amount of $1,800,000 in FY 1997 funds is being used for the EOI 
for 18 month projects.
    (i) National component. (A) General. Of the FY 1997 EOI total of 
$1,800,000, $300,000 is made available under this NOFA for national EOI 
projects, with an award cap of $150,000.
    (B) Fair Housing web site projects. Of the $300,000 available under 
the EOI national component, the Department is reserving $150,000 for 
applications that will develop and/or administer a web site on the 
Internet as a means of providing fair housing education and guidance to 
the public. Applications submitted for these special projects will be 
rated separately. If insufficient acceptable applications are received, 
remaining funds will be added to the $300,000 available for national 
education and outreach projects under section I.(e)(1)(i)(A) of this 
NOFA above.
    (ii) Regional, local, and community-based component. The amount of 
$1,500,000 in FY 1997 funds is made available under this NOFA for 
regional, local, and community-based projects.
    (A) General. A total of $1,000,000 is available, with an award cap 
of $100,000, for projects that support regional, local and community-
based education and outreach efforts.
    (B) Projects to address community tensions. A total of $500,000 
from the EOI regional, local, and community-based component will be 
reserved to fund up to five regional, local, and community-based 
education projects that will address community tensions that arise as 
people protected under the Fair Housing Act seek to expand their 
housing choices. The maximum amount awarded to any applicant will be 
$100,000. Applications submitted for these special projects will be 
rated separately. If insufficient acceptable applications are received, 
remaining funds will be added to the $1,000,000 available for regional, 
local, and community-based education and outreach projects under 
section I.(e)(1)(ii)(A) of this NOFA, above.
(2) Private Enforcement Initiative (PEI).
    Funds for the PEI are made available under this NOFA in the amount 
of $10.5 million for 24 month projects, with an award cap of $350,000. 
Recipients of multi-year PEI awards based upon applications submitted 
under RFA 96-1 and RFA 95-1 may not apply for multi-year PEI funds made 
available under this NOFA.
(3) Fair Housing Organizations Initiative (FHOI).
    The amount of $2,700,000 is made available under this NOFA for the 
FHOI for 18 month projects, to be used for the continued development of 
fair housing enforcement organizations, with an award cap of $200,000.
    (i) Organizations serving persons with disabilities. The Department 
is reserving $1,350,000 of the $2,700,000 under the FHOI to develop the 
capacity of organizations that assist persons with disabilities to 
undertake fair housing enforcement activities, thus enabling such 
organizations to become full-service fair housing enforcement 
organizations.

(f) Eligibility

    Eligible activities, eligible applicants, and additional 
requirements under each Initiative are listed below. All activities and 
materials funded by FHIP must be reasonably accessible to persons with 
disabilities.
(1) Education and Outreach Initiative (EOI)
    (i) Eligible applicants. The following organizations are eligible 
to receive funding under the Education and Outreach Initiative:
    (A) State or local governments;
    (B) Qualified fair housing enforcement organizations (QFHO-Es);
    (C) Fair housing enforcement organizations (FHO-Es)
    (D) Public or private non-profit organizations or institutions and 
other public or private entities that are formulating or carrying out 
programs to prevent or eliminate discriminatory housing practices; and
    (E) Fair Housing Assistance Program (FHAP) Agencies--State and 
local agencies funded by the Fair Housing Assistance Program (FHAP).
    (ii) Eligible activities. (A) In general. Each application for 
Education and Outreach Initiative funding must identify if it proposes 
a national or a regional, local, or community-based project. In 
addition, Fair Housing web site projects under the national component, 
and projects to address community tensions under the regional, local, 
or community-based component, must be identified. Funding is permitted 
for reasonable, necessary, and justified production or development of 
new materials (brochures, public service announcements, videos) for 
dissemination to the general public. Applicants proposing to develop 
new materials should demonstrate in their application that they have 
checked with a local, regional or national clearinghouse for similar or 
duplicative materials and explain the reason existing materials are not 
applicable to their area or targeted population(s). The kinds of 
activities that may be funded through this Initiative may include (but 
are not limited to) the following:
    (1) Activities that support the Fair Housing planning requirement 
of State and local governments subject to the Consolidated Plan (24 CFR 
part 91). These activities include conducting an analysis of 
impediments to fair housing choice and undertaking actions to eliminate 
the identified impediments.
    (2) Providing fair housing counseling services, including the 
subjects of pre-and post-purchase counseling (mortgage lending, and 
brokerage services) and/or rental housing counseling;
    (3) Providing educational materials, seminars and working sessions 
for schools, civic associations, neighborhood organizations, and other 
groups to support community-based education and outreach efforts;
    (4) Bringing housing industry and civic or fair housing groups 
together to identify discriminatory housing practices and to determine 
how to correct them;
    (5) Providing technical assistance to support compliance with the 
Fair Housing Act's accessible design and construction requirements and 
the Fair Housing Accessibility Guidelines;
    (6) Conducting outreach and providing information on fair housing 
through printed and electronic media;

[[Page 34565]]

    (7) Developing or implementing Fair Housing Month activities; and
    (8) Informing persons with disabilities, and/or their support 
organizations and service providers, housing providers, and the general 
public on the rights of persons with disabilities under the Fair 
Housing Act and on the location or availability of accessible housing 
or the reasonable accommodations, reasonable modifications, or the 
accessible design and construction provisions of the Act.
    (B) National programs. (1) Activities eligible to be funded as 
national programs shall be designed to provide a centralized, 
coordinated effort for the development and dissemination of fair 
housing media products or educational materials that may appropriately 
be used on a nationwide basis. All activities listed in paragraph 
I.(f)(1)(ii)(A) above are eligible as national projects. As stated at 
I.(e)(1)(i)(B) of this NOFA, above, $150,000 of the $300,000 available 
under the EOI national component is set aside for Fair Housing web site 
projects.
    (2) National program applications will receive a preference of up 
to ten additional points if they:
    (i) Demonstrate cooperation with real estate industry organizations 
(up to five points); and/or
    (ii) Provide for the dissemination of educational information and 
technical assistance to support compliance with the housing 
adaptability and accessibility guidelines contained in the Fair Housing 
Amendments Act of 1988 (up to five points).
    (C) Regional, local and community-based programs.
    (1) Activities eligible to be funded as regional, local and 
community-based programs include any of the activities, to be 
implemented on a regional, local or community-based level, listed in 
paragraph I.(f)(1)(ii)(A) above, of this NOFA. As stated at 
I.(e)(1)(ii)(B) of this NOFA, above, $500,000 of the $1,000,000 
available under the EOI regional, local, and community-based component 
is set aside for projects to reduce community tensions. For 
applications proposing projects to reduce community tensions, similar 
activities may be undertaken where designed to address settlement of 
lawsuits, implementation of regional housing counseling programs, or 
similar local efforts.
    (2) For the purposes of this NOFA, activities that are ``local'' in 
scope are activities that are limited to a single unit of general local 
government, meaning a city, town, township, county, parish, village, or 
other general purpose political subdivision of a State. Activities that 
are ``regional'' in scope are activities that cover adjoining States or 
two or more units of general local government within a State. 
Activities that are ``community-based'' in scope are those which are 
focused on particular neighborhoods within a unit of general local 
government. Community-based programs include school, church and 
community presentations, conferences, or other educational activities.
    (iii) Additional requirements. The following requirements are 
applicable to all applications under the EOI:
    (A) All projects must address or have relevance to housing 
discrimination based on race, color, religion, sex, handicap, familial 
status, or national origin.
    (B) Projects must be eighteen months in duration. National projects 
have an award cap of $150,000. Regional, local and community-based 
projects have an award cap of $100,000. Applications which request FHIP 
funding in excess of the award cap will be deemed ineligible.
    (C) Projects aimed solely or primarily at research or dependent 
upon such data gathering, including but not limited to surveys and 
questionnaires, will not be eligible under this NOFA.
    (D) All proposals must contain a description of how the activities 
or the final products of the projects can be used by other agencies and 
organizations and what modifications, if any, would be necessary for 
that purpose.
    (E) Coordination of activities. Each non-governmental applicant for 
funding under the Education and Outreach Initiative regional, local and 
community-based component that is located within the jurisdiction of a 
State or local enforcement agency or agencies administering a fair 
housing law that has been certified by the Department under 24 CFR part 
115 as being a substantially equivalent fair housing law must provide, 
with its application, documentation (such as letters between the two 
organizations) that it has consulted with the agency or agencies to 
coordinate activities to be funded under the Education and Outreach 
Initiative. This coordination will ensure that the activities of one 
group will minimize duplication and fragmentation of activities of the 
other. Failure to submit the documentation required by this section 
will be treated as a technical deficiency in accordance with section 
IV., below, of this NOFA.
    (F) Every application must include as one of its activities a 
procedure for referring persons with fair housing complaints to State 
or local agencies administering substantially equivalent laws, private 
attorneys, HUD or the Department of Justice for further enforcement 
processing.
(2) Private Enforcement Initiative (PEI)
    (i) Eligible applicants. Organizations that are eligible to receive 
FY 1997 funding assistance under the PEI are:
    (A) Qualified fair housing enforcement organizations.
    (B) Fair housing enforcement organizations with at least one year 
of experience in complaint intake, complaint investigation, testing for 
fair housing violations, and enforcement of meritorious claims.
    (ii) Eligible activities. Applications are solicited for project 
proposals as described in this NOFA. Applications may designate up to 
5% of requested funds to conduct education and outreach to promote 
awareness of the services provided by the project, but such promotion 
must be necessary for the successful implementation of the project.
    (A) Project applications must include more than one type of 
activity, and may include, but are not limited to, the following:
    (1) Conducting complaint intake of allegations of housing 
discrimination;
    (2) Conducting testing, evaluating testing results or providing 
other investigative support for administrative and judicial enforcement 
of fair housing laws;
    (3) Conducting investigations of individual and systemic housing 
discrimination for further enforcement processing by HUD or State or 
local agencies which administer laws that are substantially equivalent 
to the Fair Housing Act, or for referral to private attorneys or the 
Department of Justice;
    (4) Building the capacity to investigate, through testing and other 
investigative methods, housing discrimination complaints covering all 
protected classes;
    (5) Conducting mediations or other voluntary resolutions of 
allegations of fair housing discrimination;
    (6) Providing funds for the costs and expenses of litigating fair 
housing cases, including expert witness fees.
    (iii) Additional requirements. (A) Testers in testing activities 
funded with PEI funds must not have prior felony convictions or 
convictions of crimes involving fraud or perjury, and they must receive 
training or be experienced in testing procedures and techniques. 
Testers and the organizations conducting tests, and the employees and 
agents of these organizations may not:
    (1) Have an economic interest in the outcome of the test, without 
prejudice to the right of any person or entity to

[[Page 34566]]

recover damages for any cognizable injury;
    (2) Be a relative of any party in a case;
    (3) Have had any employment or other affiliation, within one year, 
with the person or organization to be tested; or
    (4) Be a licensed competitor of the person or organization to be 
tested in the listing, rental, sale, or financing of real estate.
    (B) Multi-year projects must be for 24 months in duration, with an 
award cap of $350,000. Successful projects will receive incremental 
funding during the life of the award subject to periodic performance 
reviews. Applications which request FHIP funding in excess of the award 
cap will be deemed ineligible.
    (C) Projects aimed solely or primarily at research or dependent 
upon such data-gathering, including but not limited to surveys and 
questionnaires unrelated to existing or planned fair housing 
enforcement programs, will not be eligible for funding under this NOFA.
    (D) In accordance with 24 CFR 125.104(f), no recipient of 
assistance under the PEI may use any funds provided by the Department 
for the payment of expenses in connection with litigation against the 
United States.
    (E) Recipients of funds under the PEI shall be required to record, 
in a case tracking log (or Fair Housing Enforcement Log) to be supplied 
by HUD, information appropriate to the funded project relating to the 
number of complaints of possible discrimination received; the protected 
basis of these complaints; the issue, test type, and number of tests 
utilized in the investigation of each allegation; the respondent type 
and testing results; the time for case processing, including 
administrative or judicial proceedings; the cost of testing activities 
and case processing; to whom the case was referred; and the resolution 
and type of relief sought and received. The recipient must agree to 
make this log available to HUD.
    (F) All proposals must certify that the applicant will not solicit 
funds from or seek to provide fair housing educational or other 
services or products for compensation, directly or indirectly, to any 
person or organization which has been the subject of testing by the 
applicant during the 12 month period following the test. This 
requirement does not preclude settlements based on investigative 
findings.
(3) Fair Housing Organizations Initiative (FHOI)
    Applications may be submitted for funding under the Continued 
Development of Existing Organizations component of the FHOI.
    (i) Eligible applicants. Eligible applicants for funding under this 
component of the FHOI are:
    (A) Qualified fair housing enforcement organizations;
    (B) Fair housing enforcement organizations;
    (C) Nonprofit groups organizing to build their capacity to provide 
fair housing enforcement; and
    (D) Organizations serving persons with disabilities. As stated in 
section I.(e)(3)(i), above, under the FHOI, $1,350,000 has been set 
aside to increase enforcement activities for persons with disabilities. 
Those funds are available for two categories of applicants:
    (1) Disability advocacy groups. Organizations that traditionally 
have provided for the civil rights of persons with disabilities may 
apply. This would include organizations such as Independent Living 
Centers, and cross-disability legal services groups. Because of limited 
resources and the wide need for appropriate protections, organizations 
considered for funding must be experienced in providing services to 
persons with a broad range of disabilities, including physical, 
cognitive, and psychiatric/mental disabilities. Organizations must 
demonstrate actual involvement of persons with disabilities throughout 
their activities, including on staff and board levels.
    In addition, applicants for funding allocated to organizations that 
serve persons with disabilities must meet the following requirements;
    (i) Be organized as a private, tax-exempt, non-profit, charitable 
organization;
    (ii) Be established with a primary purpose to assist persons with 
disabilities in exercising or protecting their fair housing and/or 
other civil rights (persons with disabilities need not be the only 
class served by the organization and fair housing and/or civil rights 
protection need not be the only activity of the organization).
    (2) Fair Housing/Disability Advocacy Joint Partnership Teams. 
Eligible applicants listed in section I.(f)(3)(i)(A) through (D), 
above, of this NOFA may submit applications which demonstrate a 
partnership project that involves both an established fair housing 
enforcement group and a disability advocacy group as defined in section 
I.(f)(3)(i)(D)(1) of this NOFA. This may be done in cases where the 
disability advocacy group either lacks the capacity for, or interest 
in, providing all aspects of enforcement activity. Joint partnerships 
will, depending upon the division of roles, enable the disability 
advocacy group to develop expertise and experience in providing 
enforcement activities, while sensitizing and educating the QFHO E's or 
FHO-E's to issues related to the provision of services to persons with 
disabilities. A joint partnership application would only be submitted 
by a single organization, but the application would demonstrate a 
cooperative undertaking with substantive involvement in fair housing 
education and enforcement by the two kinds of organizations involved in 
the partnership project.
    The Department encourages applications under this set-aside that 
creatively address the need to provide fair housing services using 
existing resources in the most efficient and productive manner. 
Partnership agreements should clearly delineate the roles of each 
organization to develop the capacity of each organization to undertake 
fair housing enforcement activities with respect to rights and 
responsibilities for persons protected on the basis of handicap.
    (ii) Eligible activities. Applications are solicited for project 
proposals as described in this NOFA. Applications may designate up to 
5% of requested funds to conduct education and outreach to promote 
awareness of the services provided by the project, but such promotion 
must be necessary for the successful implementation of the project. 
Eligible activities for funding under this purpose of the FHOI are any 
activities listed as eligible under the PEI in section I.(f)(2)(ii), 
and any activities to increase enforcement activities for organizations 
serving persons with disabilities, as described in section 
I.(f)(3)(i)(D), above, of this NOFA and carried out as eighteen-month 
projects.
    (iii) Additional Requirements. The following requirements apply to 
activities funded under the Continued Development of Existing 
Organizations purpose of the FHOI:
    (A) Operating budget limitation. Funding provided under this 
purpose of the FHOI may not exceed more than 50 percent of the 
operating budget of the recipient organization for any one year. For 
purposes of the limitation in this paragraph, operating budget means 
the applicant's total planned budget expenditures from all sources, 
including the value of in-kind and monetary contributions, in the 18 
months for which funding is sought.

[[Page 34567]]

    (B) Term of grant. Projects are eighteen months in duration, with 
an award cap of $200,000. Applications which request FHIP funding in 
excess of the award cap will be deemed ineligible.
    (C) Testers in testing activities funded with FHIP funds must not 
have prior felony convictions or convictions of crimes involving fraud 
or perjury, and they must receive training or be experienced in testing 
procedures and techniques. Testers and the organizations conducting 
tests, and the employees and agents of these organizations may not:
    (1) Have an economic interest in the outcome of the test, without 
prejudice to the right of any person or entity to recover damages for 
any cognizable injury;
    (2) Be a relative of any party in a case;
    (3) Have had any employment or other affiliation, within one year, 
with the person or organization to be tested; or
    (4) Be a licensed competitor of the person or organization to be 
tested in the listing, rental, sale, or financing of real estate.
    (D) Projects to be aimed solely or primarily at research or 
dependent upon such data-gathering, including but not limited to 
surveys and questionnaires will not be eligible for funding under this 
NOFA.
    (E) Each applicant under the continued development of existing 
organizations component of the FHOI must submit an operating budget 
that describes the applicant's total planned expenditures from all 
sources, including the value of in-kind and monetary contributions, in 
the 18 months for which funding is sought. This operating budget will 
be used for the purposes of determining the extent of the 50% funding 
limitation on operating expenses.
    (F) All proposals for testing under the FHOI must certify that the 
applicant will not solicit funds from or seek to provide fair housing 
educational or other services or products for compensation, directly or 
indirectly, to any person or organization which has been the subject of 
testing by the applicant during a 12 month period following the test. 
This does not preclude settlement based on investigative findings.
    (G) Recipients of funds under the FHOI shall be required to record, 
in a case tracking log (or Fair Housing Enforcement Log) to be supplied 
by HUD, information appropriate to the funded project relating to the 
number of complaints of discrimination received; the protected basis of 
these complaints; the issue, test type and number of tests utilized in 
the investigation of each allegation; the respondent type and testing 
results; the time of case processing, including administrative or 
judicial proceedings; the cost of testing activities and case 
processing; and to whom referred, resolution, and type of relief 
provided. The recipient must agree to make this log available to HUD.

(g) Selection Criteria/Rating Factors

(1) Selection Criteria for Rating Applications for Assistance
    The following five selection criteria apply to each of the 
initiatives covered by this NOFA and account for 100 points available 
for award. In addition to the preference points indicated in section 
I.(f)(1)(ii)(B)(2) for applications under the EOI national component, 
all projects proposed in applications will be rated on the basis of the 
following criteria for selection:
    (i) Need. (20 points) This criterion will be judged on the basis of 
the applicant's submissions in response to paragraphs III.(1) and 
III.(2) of this NOFA under the heading ``Checklist of Application 
Submission Requirements.'' The applicant must demonstrate that it is 
serving areas with significant fair housing problems. HUD will consider 
the extent to which the application clearly delineates a fair housing 
need or needs in the project area(s) that can be resolved through the 
proposed FHIP funded activities of the organization. The applicant must 
demonstrate how these needs were identified and how the activities 
proposed will address these needs. HUD will also consider the extent to 
which the applicant demonstrates a familiarity with the efforts of 
government agencies, fair housing organizations, community-based 
organizations, housing industry groups, and other entities in the 
community which are engaged in or have an impact on fair housing 
education/enforcement in the communities to be served.
    (ii) Quality of project and related activities that the applicant 
proposes to carry out under the grant. (25 points) This criterion will 
be judged on the basis of the applicant's submissions in response to 
paragraph III.(3), III.(4) and III.(5) of this NOFA under the heading 
``Checklist of Application Submission Requirements.'' HUD will 
consider:
    (A) The extent to which the applicant's proposal outlines a clear 
and easy to understand project, that can be successfully carried out 
within the grant period.
    (B) The extent to which the applicant explains the benefits that 
successful completion of the project will produce to enhance fair 
housing and the indicators by which these benefits are to be measured. 
In addition to immediate benefits, the applicant must also describe the 
expected long-term viability of project results.
    (C) The extent to which an applicant's PEI or FHOI enforcement 
activities proposal furthers the objective of funding full service and 
broad-based fair housing enforcement projects that address protected 
classes under the Fair Housing Act.
    (iii) Outreach and Project Support. (10 points) This criterion will 
be judged on the basis of the applicant's submission in response to 
paragraph III.(6) and III.(7) of this NOFA under the heading 
``Checklist of Application Submission Requirements.'' This factor has 
two subfactors:
    (A) The extent to which the application demonstrates the ability of 
the applicant to disseminate or utilize FHIP or existing fair housing 
materials in locations served by the proposed project. Applications 
must demonstrate how the project will promote awareness of the services 
provided by the project (5 points). In rating this subfactor, HUD will 
evaluate:
    (1) The extent to which the proposed activities will reach persons 
throughout the region to be served and will identify and use existing 
fair housing materials; and
    (2) The extent to which the application will promote awareness of 
the services provided by the proposed activities.
    (B) The extent to which the application demonstrates the commitment 
of funds and other in-kind resources to the project (5 points). In 
rating this subfactor, HUD will consider:
    (1) Estimate of the public or private resources that may be 
available to assist the proposed activities; and
    (2) The extent to which resources have been firmly committed for 
the proposed project. This includes the reasonableness of applicant's 
documented efforts to secure support and the quality of applicant's 
plan for securing additional funds to support the activities during the 
period of the project.
    (iv) Management Capability. (35 points) This criterion will be 
judged on the basis of the applicant's submission in response to 
paragraph III.(8) III.(9) and III.(10) under the heading ``Checklist of 
Application Submission Requirements.'' This factor has two sub-factors:
    (A) The extent to which the applicant demonstrates that the 
proposed management approach will enable the applicant to successfully 
carry out the

[[Page 34568]]

proposed activities (10 points); In rating this subfactor, HUD will 
consider:
    (1) Appropriateness, completeness, clarity, and specificity of the 
tasks proposed in the Statement of Work to implement the project. This 
includes such considerations as regions to be served, clientele to be 
served, specific protected class focus, and type and scope of 
deliverables.
    (2) Whether the budget includes necessary costs for the proposed 
activities and reasonableness of the costs for the proposed activities, 
including level of expertise proposed for various tasks.
    (3) Extent to which the applicant demonstrates capability in 
handling financial resources with adequate financial control procedures 
and accounting procedures. In addition, considerations will include 
findings identified in their most recent audit, internal consistency in 
the application of numeric quantities, accuracy of mathematical 
calculations and other available information on financial management 
capability.
    (B) The extent to which the applicant demonstrates the capacity to 
carry out satisfactorily the proposed activities in a timely fashion 
(25 points); HUD will consider:
    (1) Experience of the applicant organization that is relevant to 
the proposed project.
    (2) The applicant's management and performance under past and 
current FHIP or other civil rights projects. Where the applicant has 
managed several projects, special consideration will be given to past 
performances in those projects which are most relevant to the proposed 
project. Under this factor, HUD will consider, in particular, progress 
reviews and closeout assessments on current and past FHIP grants 
awarded to the applicant organization.
    (3) The qualifications of the Project Director, key project staff 
and any sub-contractors, consultants, and subrecipients which are 
firmly committed to the project. If most key personnel are not 
identified, the applicant must demonstrate how it proposes to carry out 
activities in the interim while vacancies are being filled. For any 
significant personnel, including subcontractors, not yet hired or 
selected, how appropriate are the qualifications to be considered in 
the selection.
    (4) The reasonableness of timelines for implementation, procedures 
for monitoring and assessing results and adequacy of the Statement of 
Work for assuring that the project is completed in a timely and 
effective manner.
    (v) Place-based. The Secretary's Representative will evaluate and 
rate applications from their respective Regions under the selection 
criteria at section I.(g)(1)(i), ``Need,'' and section I.(g)(1)(ii), 
``Quality of project and related activities that the applicant proposes 
to carry out under the grant.'' This participation by the Secretary's 
Representatives will take advantage of their unique knowledge of 
circumstances within their regions, and will promote ``place-based'' 
considerations in the selection of applicants. HUD will award up to 5 
points under each of these selection criteria, up to a total of 10 
points, on the basis of the evaluation by the Secretary's 
Representatives.
(2) Selection Process
    The selection process is structured to achieve the objectives set 
forth in section I.(c) of this NOFA. Awards will generally be made in 
rank order, except that the additional procedures described below will 
be followed to make awards out of rank order to achieve this goal.
    Each application for funding will be evaluated competitively. Upon 
receipt, the applications will be sorted into seven categories: PEI; 
EOI-National/Web-site; EOI-National/Other; EOI-Regional, local and 
community-based/reduction of community tensions; EOI-Regional,local and 
community-based/other; FHOI-Continued Development of Existing 
Organizations/Organizations Serving Persons with Disabilities; and 
FHOI-Continued Development of Existing Organizations/Other. Then, in 
each category, they will be awarded points and assigned a score based 
on the Selection Criteria for Rating Applications for Assistance 
identified in section I.(g)(1) of this NOFA. The final decision rests 
with the Assistant Secretary for Fair Housing and Equal Opportunity or 
designee. After eligible applications are evaluated against the factors 
for award and assigned a score, they will be organized by rank order. 
Awards for each category listed above will be funded in rank order 
until all available funds have been obligated, or until there are no 
acceptable applications, with the exception described in section 
I.(g)(2)(i), immediately below, which is designed to achieve geographic 
distribution of awards and to achieve full service and broad-based fair 
housing enforcement projects.
    (i) Achieving geographic distribution of awards. The Assistant 
Secretary, or designee, will have the discretion to make awards out of 
rank order and fund or not fund applications in order to provide 
broader geographic representation in accordance with the following 
procedure. For the PEI funding category only, the highest ranking 
application from each of the ten HUD broad regions, as described in the 
application kit, will be funded first. Following the selection of the 
highest ranking application under the PEI in each region, the remaining 
awards under the PEI and all awards made under the other Initiatives 
and components within each category will be funded in rank order, 
except as follows: only the highest ranking application under any non-
national Initiative or component for activities to be conducted in a 
Metropolitan Statistical Area (MSA), as defined by the Bureau of the 
Census, will be selected. No other application proposing activities in 
the same MSA under the same Initiative or component will be selected, 
unless there are not enough applications of sufficient quality to 
permit the awarding of all funds in an Initiative or component. If the 
selection panel determines that there are not enough applications of 
sufficient quality in any Initiative or component, then the next 
highest ranked application(s) that had previously been passed over may 
be funded in the same MSA.
    (ii) Achieving full service and broad based fair housing projects. 
Regardless of its ranking, an application proposing enforcement 
activities will not be funded if it is not focused on providing full 
service and broad based fair housing enforcement projects that address 
protected classes under the Fair Housing Act.
    (iii) Tie breaking. When there is a tie in the overall total score, 
the award will be made to the applicant that has the higher score under 
Selection Criteria (ii) of section I.(g)(1). If these applications are 
equal in this respect, the application that receives a total higher 
number of cumulative points under Selection Criteria (i) and (iv) of 
section I.(g)(1), above, will receive the award. If these scores are 
identical then the award will be made to the applicant with the lower 
request for FHIP funding.

(h) General Requirements for Applications

(1) Applicants Limited to a Single Award
    Applicants may apply for funding for more than one project or 
activity under one or more Initiatives. However, applicants are limited 
to one award under this NOFA. If more than one eligible application is 
submitted by an applicant and both are within funding range, the 
Department will select the application which the applicant has

[[Page 34569]]

indicated as its preference for award should more than one application 
submitted be within funding range.
(2) Independence of Awards
    Each project or activity proposed in an application must be 
independent and capable of being implemented without reliance on the 
selection of other applications submitted by the applicant or other 
applicants. However, this provision does not preclude an applicant from 
submitting a proposal which includes other organizations as 
subcontractors to the proposed project or activity.
(3) Project Starting Period
    The Department has determined that all applications must propose 
that the project will begin no later than December 1, 1997.
(4) Page Limitation
    Applicants will be limited to 10 pages of narrative responses for 
each of the five selection criteria (this does not include forms or 
documents which are required under each criterion). Furthermore, 
unrequested items including brochures, news articles, letters of 
support and other examples included in the application will not be 
considered in the evaluation process. Applicants that exceed the 10-
page limit for each criterion will only have the first 10 pages 
evaluated for each criterion. Failure to provide narrative responses to 
criteria (i) through (iv) will result in an application being deemed as 
ineligible.
    (i) Applicant Notification and Award Procedures
    (1) Notification. No information will be available to applicants 
during the period of HUD evaluation, approximately 90 days, except for 
notification in writing or by telephone to those applicants that are 
determined to be ineligible or that have technical deficiencies in 
their applications that may be corrected. Selectees will be announced 
by HUD upon completion of the evaluation process, subject to final 
negotiations and award.
    (2) Negotiations. After HUD has ranked the applications and 
provided notifications to applicants whose scores are within the 
funding range, HUD will require that applicants in this group 
participate in negotiations to determine the specific terms of the 
cooperative or grant agreement. In cases where it is not possible to 
conclude the necessary negotiations successfully, awards will not be 
made.
    If an award is not made to an applicant whose application is in the 
initial funding threshold because of an inability to complete 
successful negotiations, and if funds are available to fund any 
applications that may have fallen outside the initial funding 
threshold, HUD will select the next highest ranking applicant and 
proceed as described in the preceding paragraph.
    (3) Funding Instrument. HUD expects to award a cost reimbursable or 
fixed-price cooperative or grant agreement to each successful 
applicant. HUD reserves the right, however, to use the form of 
assistance agreement determined to be most appropriate after 
negotiation with the applicant.
    (4) Reduction of Requested Grant Amounts and Special Conditions. 
HUD may approve an application for an amount lower than the amount 
requested, fund only portions of an application, withhold funds after 
approval, and/or require the grantee to comply with special conditions 
added to the grant agreement, in accordance with 24 CFR 84.14, the 
requirements of this NOFA, or where:
    (i) HUD determines the amount requested for one or more eligible 
activities is unreasonable or unnecessary;
    (ii) The applicant has proposed an ineligible activity in an 
otherwise eligible project;
    (iii) Insufficient amounts remain in that funding round to fund the 
full amount requested in the application, and HUD determines that 
partial funding is a viable option;
    (iv) The applicant has demonstrated an inability to manage HUD 
grants, particularly FHIP grants; or
    (v) For any other reason where good cause exists.
    (5) Performance Sanctions. A recipient failing to comply with the 
procedures set forth in its grant agreement will be liable for such 
sanctions as may be authorized by law, including repayment of 
improperly used funds, termination of further participation in the 
FHIP, and denial of further participation in programs of the Department 
or of any Federal agency.

II. Application Process

    An application kit is required as the formal submission to apply 
for funding. The kit includes information on the Statement of Work and 
Budget for activities proposed by the applicant. An application may be 
obtained by writing the Fair Housing Information Clearinghouse, P.O. 
Box 9146, McLean, VA 22102, or by calling the toll free number 1-800-
343-3442 (voice) or 1-800-290-1617 (TTY). To ensure a prompt response, 
it is suggested that requests for application kits be made by 
telephone.
    Completed applications are to be submitted to: Maxine B. 
Cunningham, Office of Fair Housing and Equal Opportunity, Department of 
Housing and Urban Development, Room 5234, 451 Seventh Street, S.W., 
Washington, DC 20410.
    The application due date will be specified in the application kit. 
Applicants submitting an application under the Private Enforcement 
Initiative will be given at least 50 days from today's date, until 
August 15, 1997, to submit their applications. Applicants submitting 
applications under the Education and Outreach Initiative and the Fair 
Housing Organizations Initiative will be given at least 60 days from 
today's date, until August 25, 1997, to submit their applications. 
Applications will be accepted if they are received on or before the 
application due date, or are received within 7 days after the 
application due date, but with a U.S. postmark or receipt from a 
private commercial delivery service (such as, Federal Express or DHL) 
that is dated on or before the application due date.
    The application deadline is firm as to date. In the interest of 
fairness to all competing applicants, the Department will treat as 
ineligible for consideration any application that is received after the 
deadline. Applicants should take this practice into account and make 
early submission of their materials to avoid any risk of loss of 
eligibility brought about by unanticipated delays or other delivery-
related problems. A transmission by facsimile machine (``FAX'') will 
not constitute delivery.
    An applicant may apply for funding for more than one project or 
activity, but a separate application must be submitted for each of the 
following categories of funding:
    (1) Private Enforcement Initiative-Multi-year projects;
    (2) Education and Outreach Initiative-National/Fair Housing Web 
Site on the Internet;
    (3) Education and Outreach Initiative-National/other projects;
    (4) Education and Outreach Initiative-Regional, local and 
community-based/reduction of community tensions;
    (5) Education and Outreach Initiative-Regional or local and 
community-based/other projects;
    (6) Fair Housing Organizations Initiative-Continued Development of 
Existing Organizations/Organizations Serving Persons with Disabilities; 
and
    (7) Fair Housing Organizations Initiative-Continued Development of 
Existing Organizations/Other Projects.
    Although a separate application is required for each funding 
category, an application may propose more than one

[[Page 34570]]

type of eligible activity under each category. For example, 
distribution of a public service message and conduct of a seminar may 
be proposed in a single application for a national program under the 
EOI.
    Applicants must submit all information required in the application 
kit and must include sufficient information to establish that the 
applicant and its application meet eligibility requirements as set 
forth above and that the application meets the selection criteria set 
forth in section I.(d), above, of this NOFA.

III. Checklist of Application Submission Requirements

    The application kit will contain a checklist of application 
submission requirements to complete the application process. Each 
application for FHIP funding must contain the following items:
    (1) A description indicating the need for FHIP funding in support 
of the proposed project. This must include a discussion of how these 
needs were identified, including reference to studies or other 
information and relevant demographic data relating to the nature and 
extent of discriminatory housing practices in the location(s) where the 
applicant proposes to undertake activities.
    (2) A description of how the proposed activities relate to efforts 
by other entities in the community that are engaged in or have an 
impact on fair housing education/enforcement in the communities to be 
served.
    (3) A description of the activities proposed for funding in the 
general location where the applicant proposes to undertake activities.
    (4) A description of the fair housing benefits that successful 
completion of the project will produce, and the indicators by which 
these benefits are to be measured.
    (5) A description of the degree to which the project will be of 
continuing use in addressing housing discrimination after funded 
activities have been completed;
    (6) A description of the activities proposed that will disseminate 
or utilize FHIP or existing fair housing materials in the project 
area(s) served. This description must include a discussion of 
procedures used to promote awareness of the services provided by the 
proposed project;
    (7) An estimate of other public or private resources that will be 
used to assist the proposed activities.
    (8) A budget--which must include a set-aside of $3,000 for 18 month 
projects and $6,000 for 24 month projects to be used for travel and 
associated costs for training sponsored or approved by the Department--
and a Statement of Work which includes a timeline for the 
implementation of the proposed activities, consisting of a description 
of the specific activities to be conducted with FHIP funds, the 
geographic areas to be served by the activities, any reports to be 
produced in connection with the activities, and a schedule for the 
implementation and completion of the activities.
    (9) A description of the applicant's experience in formulating or 
carrying out programs to prevent or eliminate discriminatory housing 
practices or in implementing other civil rights programs, the 
experience and qualifications of existing personnel identified for key 
positions, or a description of the qualifications of new staff to be 
hired, and the experience of subcontractors/consultants.
    (10) A description of the procedures to be used by the applicant 
for monitoring the progress of the proposed activities and the 
applicant's planned or implemented financial control procedures that 
will demonstrate the applicant's capability in managing financial 
resources.
    (11) HUD Form 2880, Applicant Disclosures;
    (12) A listing of any current or pending grants or contracts, or 
other business or financial relationships or agreements, to provide 
training, education, and/or self-testing services between the applicant 
and any entity or organization of entities involved in the sale, 
rental, advertising, or provision of brokerage, or lending services for 
housing. The listing must include the name and address of the entity or 
organization; a brief description of the services being performed or 
for which negotiations are pending; the dates for performance of the 
services; and the amount of the contract or grant. This listing must be 
updated during the grant negotiation period, at the end of the grant 
term, and for grants that will run for more than twelve months, at the 
end of each year of the multi-year project.
    (13) The applicant must submit a certification and disclosure in 
accordance with the requirements of section 319 of the Department of 
the Interior Appropriations Act (Pub. L. 101-121, approved October 23, 
1989), as implemented in HUD's interim final rule at 24 CFR part 87, 
published in the Federal Register on February 26, 1990 (55 FR 6736). 
This statute generally prohibits recipients and subrecipients of 
Federal contracts, grants, cooperative agreements and 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. If warranted, the applicant should include the 
Disclosure of Lobbying Activities form (SF-LLL).
    (14) Prior to award execution, successful applicants must submit a 
certification that they will comply with the certification requirements 
contained in the application kit.
    (15) Each applicant applying as a qualified fair housing 
enforcement organization or fair housing enforcement organization must 
have available upon request documentation which demonstrates that the 
applicant meets all of the requirements of a qualified fair housing 
enforcement organization (QFHO-E) or fair housing enforcement 
organization (FHO-E), as defined under the heading Definitions, in 
section I.(d), above, of this NOFA.

IV. Corrections to Deficient Applications

    Applicants will not be disqualified from being considered for 
funding because of technical deficiencies in their application 
submission, e.g., an omission of information such as regulatory/program 
certifications, or incomplete signatory requirements for application 
submission.
    HUD will notify an applicant in writing of any technical 
deficiencies in the application. The applicant must submit corrections 
within 14 calendar days from the date of HUD's letter notifying the 
applicant of any technical deficiency.
    The 14-day correction period pertains only to non-substantive, 
technical deficiencies or errors. Technical deficiencies relate to 
items that:
    1. Are not necessary for HUD review under selection criteria/
ranking factors; and
    2. Would not improve the substantive quality of the proposal.

V. Other Matters

Prohibition Against Lobbying Activities

    Applicants for funding under this NOFA are subject to the 
provisions of section 319 of the Department of Interior and Related 
Agencies Appropriation Act for Fiscal Year 1991, 31 U.S.C. 1352 (the 
Byrd Amendment), which prohibits applicants from using appropriated 
funds for lobbying the Executive or Legislative Branches of the Federal 
Government in connection with a specific contract, grant, or loan. 
Applicants are required to certify, using the certification found at 
Appendix A to 24 CFR part 87, that they will not, and have not, used 
appropriated funds for

[[Page 34571]]

any prohibited lobbying activities. In addition, applicants must 
disclose, using Standard Form LLL, ``Disclosure of Lobbying 
Activities,'' any funds, other than federally appropriated funds, that 
will be or have been used to influence federal employees, members of 
Congress, and congressional staff regarding specific grants or 
contracts.

Environmental Impact

    In accordance with 40 CFR 1508.4 of the regulations of the Council 
on Environmental Quality and 24 CFR 50.19(c)(3) of the HUD regulations, 
the policies and procedures contained in this notice provide for 
assistance in promoting or enforcing fair housing and therefore, are 
categorically excluded from the requirements of the National 
Environmental Policy Act, except for extraordinary circumstances, and 
no FONSI is required.

Executive Order 12612, Federalism

    The General Counsel has determined, as the Designated Official for 
HUD under section 6(a) of Executive Order 12612, Federalism, that the 
policies contained in this Notice will not have federalism implications 
and, thus, are not subject to review under the Order. The promotion of 
fair housing policies is a recognized goal of general benefit without 
direct implications on the relationship between the national government 
and the states or on the distribution of power and responsibilities 
among various levels of government.

Drug-Free Workplace Certification

    The Drug-Free Workplace Act of 1988 requires grantees of Federal 
agencies to certify that they will provide drug-free workplaces. Thus, 
each applicant must certify that it will comply with drug-free 
workplace requirements in accordance with 24 CFR part 24, subpart F.

Accountability in the Provision of HUD Assistance

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

Section 103 HUD Reform Act

    HUD's regulation implementing section 103 of the Department of 
Housing and Urban Development Reform Act of 1989, codified as 24 CFR 
part 4, applies to the funding competition announced today. The 
requirements of the rule continue to apply until the announcement of 
the selection of successful applicants. HUD employees involved in the 
review of applications and in the making of funding decisions are 
limited by part 4 from providing advance information to any person 
(other than an authorized employee of HUD) concerning funding 
decisions, or from otherwise giving any applicant an unfair competitive 
advantage. Persons who apply for assistance in this competition should 
confine their inquiries to the subject areas permitted under 24 CFR 
part 4.
    Applicants or employees who have ethics related questions should 
contact the HUD Office of Ethics (202) 708-3815. (This is not a toll-
free number.) A telecommunications device for persons with speech and 
hearing impairments is available at 1-800-877-8339. For HUD employees 
who have specific program questions, such as whether particular subject 
matter can be discussed with persons outside HUD, the employee should 
contact the appropriate Field Office Counsel, or Headquarters counsel 
for the program to which the question pertains.
    The program components of FHIP are described in the Catalog of 
Federal Domestic Assistance at 14.409, Education and Outreach 
Initiative; 14.410, Private Enforcement Initiative; and 14.413, Fair 
Housing Organizations Initiative.

    Authority: 42 U.S.C. 3601-3619; 42 U.S.C. 3616 note.

    Dated: June 20, 1997.
Susan M. Forward,
Deputy Assistant Secretary for Enforcement and Investigations.
[FR Doc. 97-16753 Filed 6-25-97; 8:45 am]
BILLING CODE 4210-28-P