[Federal Register Volume 62, Number 147 (Thursday, July 31, 1997)]
[Notices]
[Pages 41070-41071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-20317]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4228-C-02]


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

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

ACTION: Notice of funding availability; correction.

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SUMMARY: This notice corrects and clarifies information that was 
provided in the notice of funding availability (NOFA) for fiscal year 
(FY) 1997 for Public Housing Agencies (PHAs) under the HOPE VI funding 
for the demolition of obsolete Public Housing units without 
revitalization, where the demolition would otherwise not occur due to 
lack of available resources. Specifically, this notice (1) clarifies 
the meaning of the phrase ``capital reserves'' and removes reference to 
the operating reserves in the description of the threshold factor III. 
C., Need for Demolition Funding, and in the rating factor IV. A., 
Extent of PHA Need for Funding for the Demolition; (2) corrects the 
references to the modernization indicator in the PHMAP regulation and 
the rating for factor IV. D., Extent of PHA's Capability and Readiness 
to Perform the Demolition; and (3) clarifies that there are two 10 
point elements in rating factor IV.B., Extent of Impact of Demolition 
of Building on PHA and Surrounding Neighborhood.

DATES: This notice does not affect the deadline date provided in the 
June 3, 1997 NOFA. Applications must still be received in Headquarters 
on or before August 4, 1997, by 4 p.m. eastern time. Applicants that 
have already submitted applications before the publication of this 
notice may, however, submit changes to the amount used for ``capital 
reserves'' in factors III C and IV A (now ``leftover CIAP funds'') to 
respond to the clarification provided in this notice, within 14 days of 
the publication of this notice.

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

SUPPLEMENTARY INFORMATION: On June 3, 1997, (62 FR 30402), HUD 
published in the Federal Register the Notice of Funding Availability 
for Fiscal Year 1997 for HOPE VI funding for the demolition of obsolete 
public housing units. The NOFA announced the availability of up to $30 
million in HOPE VI for funding the demolition only. This notice amends 
the June 3, 1997 NOFA for the following reasons:
    (1) The Department wants to clarify what was intended by the term 
``capital reserves'', which was used in the description of the 
threshold and rating factors, since it is not a defined term used in 
either the regulations or handbooks for the Comprehensive Improvement 
Assistance Program (CIAP) or the Comprehensive Grant program (CGP). 
This correction uses a different term--``leftover CIAP funds''--which 
it defines.
    (2) The chart published in the NOFA for factor IV. D., Extent of 
PHA's Capability and Readiness to Perform the Demolition, on how the 
Department would rate the PHMAP score for timeliness of modernization, 
a subindicator of the modernization indicator, was ambiguous. In PHMAP, 
the subindicator timeliness of modernization can only be rated A for 
pass, or F for fail. However, the chart published in the NOFA assigned 
points based on range of ratings--A, B, C or D. Subsequently, the 
Department has decided to use the complete PHMAP indicator for 
modernization, which more accurately measures all aspects of a PHA's 
capability to manage its modernization program. In PHMAP, the 
modernization indicator can be scored A, B, C, D, E or F. This wider 
range of ratings will provide a larger number of PHAs the opportunity 
to receive points for the factor in the NOFA and will correspond to the 
range of ratings published in the NOFA chart. (For the purposes of this 
NOFA, only PHAs with scores of A, B, C, or D will be given points.)
    In addition, we have eliminated references to rating the PHA's 
management of its public housing development funds. The chart

[[Page 41071]]

published in the NOFA for this factor only referenced the PHMAP 
indicator for modernization; it did not include any measurement of a 
PHA's development capability. Furthermore, many PHAs no longer have 
public housing development funds and it would be necessary to forgo 
measuring development capability in some PHAs and while measuring it in 
others. Therefore, it has been determined that the Department will use 
a PHA's demonstrated capability in modernization alone to score this 
factor.
    (3) Factor IV.B., Extent of Impact of Demolition of Building on PHA 
and Surrounding Neighborhood, was specific with respect to 10 points of 
a 20 point factor, but the NOFA needed to be explicit about the 
remaining 10 points being awarded for impact on the PHA.
    Accordingly, FR Doc. 97-14384, the Notice of Funding Availability 
for HOPE VI Public Housing Demolition--Fiscal Year 1997, published in 
the Federal Register on June 3, 1997 (62 FR 30402), is amended as 
follows:
    1. On page 30404, first column, under Section III, paragraph C., 
Need for Demolition Funding, the second paragraph is removed and the 
following paragraph is added in its place, to read as follows:
    ``A non-CGP PHA must demonstrate that it does not have adequate 
leftover CIAP funds (for the purpose of this NOFA, the phrase leftover 
CIAP funds means funds remaining from previous modernization programs 
that are subject to reprogramming after completion of all approved work 
items in the program) to perform the demolition without affecting 
current emergency or critical needs that it currently has. The PHA must 
enumerate any current leftover CIAP funds and then describe the amount 
of these funds that it anticipates will be used for emergency and/or 
critical needs in FY 1997. A PHA must provide the specific dollar 
amount of the leftover CIAP funds, an itemized list of the emergency 
and/or critical needs work items, and the individual and total cost of 
these work items accompanied by a narrative demonstrating the gravity 
of the critical needs that it is going to use its funds to correct.''
    2. On Page 30404, third column, Section IV, paragraph A., Extent of 
PHA Need for Funding for the Demolition, is amended by removing the 
third, fourth and fifth paragraphs and adding, in their place, the 
following:
    ``Element 1. CGP PHAs will be rated depending on the amount of CGP 
funds remaining after taking into consideration grant funds used for 
emergency and/or critical needs. A non-CGP PHA will be rated depending 
on the amount of leftover CIAP funds remaining after taking into 
consideration leftover CIAP funds used for emergency and/or critical 
needs.
    A CGP PHA must provide a comparison of the total cost of demolition 
of the targeted development, with the amount remaining in the FY 1997 
annual comprehensive grant award after funding emergency and/or 
critical needs for FY 1997. Even though the PHA has work items approved 
in the annual statement, the Department expects a PHA to expend any 
dollars remaining in the CGP grant after it funds any emergency and/or 
critical needs to partially or fully fund the proposed demolition 
before undertaking other non-emergency or non-critical needs work 
items.
    A CIAP PHA is to use the amount of leftover CIAP funds at the time 
of the HOPE VI application as the basis of the computation for this 
element. That is, a CIAP PHA is to compare the total cost of demolition 
of the targeted development with the amount of leftover CIAP funds 
remaining after funding emergency and/or critical needs for FY 1997 as 
described previously.
    A CGP PHA that cannot fund the total cost of the demolition with 
the remaining CGP funds and a non-CGP PHA that cannot fund the total 
cost of the demolition with its leftover CIAP funds or those PHAs that 
can only fund a small percentage (i.e., 0 percent to 25 percent) of the 
cost of demolition will receive between 16-25 points.''

------------------------------------------------------------------------
  Percent of proposed demolition cost able to be funded with     Points 
               CGP funds or lefover CIAP funds                  awarded 
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76-100.......................................................     0-5   
51-75........................................................    6-10   
26-50........................................................   11-15   
25-0.........................................................   16-25   
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    3. On Page 30405, first column, Section IV, paragraph B., Extent of 
Impact of Demolition of Building on PHA and Surrounding Neighborhood, 
is amended by adding the following sentence after the heading:
    ``This is a two part rating factor: extent of impact of demolition 
on the development and/or the PHA; and the extent of impact of the 
demolition on the surrounding neighborhood. Each of the elements will 
receive a score of 10 points.''
    4. On Page 30405, third column, Section IV, paragraph D., Extent of 
PHA's Capability and Readiness to Perform the Demolition, is amended by 
removing the entire paragraph and adding a new paragraph D, to read as 
follows:
    ``D. Extent of PHA's Capability and Readiness to Perform the 
Demolition. [10 points]
    Based on the latest HUD records (including the PHA's PHMAP 
modernization score) the PHA will be scored on the extent of the PHA's 
ability to begin immediately after approval and to effectively carry 
out the proposed demolition (e.g., the PHA has a request for proposal 
(RFP) prepared and ready to issue).
    This criterion is divided into two factors--capability, which has a 
maximum of 8 points, and readiness to perform the demolition, which has 
a maximum of 2 points.
    HUD will consider the extent to which the PHA with any active 
capital funding under CIAP or CGP programs has shown its capability to 
adequately manage the program. The PHA's capability will be judged by 
the immediate past performance in the expenditure and obligation of 
funds, contract administration, quality of physical work and budget 
controls for the modernization (CIAP or CGP) program. For this 
criterion the capability of the PHA will be measured by the latest 
PHMAP score for the modernization indicator, as follows:

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

    Dated: July 28, 1997.
Kevin Emanuel Marchman,
Acting, Assistant Secretary for Public and Indian Housing.
[FR Doc. 97-20317 Filed 7-30-97; 8:45 am]
BILLING CODE 4210-33-P