[Federal Register Volume 63, Number 83 (Thursday, April 30, 1998)]
[Notices]
[Pages 24050-24056]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-11406]



[[Page 24049]]

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Part VI





Department of Housing and Urban Development





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Super 8 Tenant-Based Assistance for Persons With Disabilities, Fiscal 
Year 1998; Notice

  Federal Register / Vol. 63, No. 83 / Thursday, April 30, 1998 / 
Notices  

[[Page 24050]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4359-N-01]


Section 8 Tenant-Based Assistance for Persons With Disabilities, 
Fiscal Year 1998

AGENCY: Office of Public and Indian Housing, HUD.

ACTION: Notice of funding availability (NOFA).

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SUMMARY: This NOFA announces the availability of budget authority for 
approximately 8700 Section 8 rental vouchers and certificates for 
persons with disabilities. HUD is issuing this NOFA, along with its 
SuperNOFA for Targeted Housing and Homeless Assistance Programs 
(published elsewhere in today's Federal Register), in order to 
encourage local efforts toward comprehensive planning and development 
of comprehensive local solutions.
    This NOFA announces the availability of approximately $48.5 million 
in 5-year budget authority under the Mainstream Program for Section 8 
rental vouchers and certificates for persons with disabilities. This 
funding will support approximately 1,700 rental vouchers or 
certificates to enable persons with disabilities (elderly and non-
elderly) to rent affordable private housing. Public Housing Agencies 
(PHAs) are invited to respond to this NOFA.
    This NOFA also announces the availability in FY 1998 of 
approximately $20 million in one-year budget authority for 
approximately 3,500 Section 8 rental vouchers and certificates for non-
elderly families with disabilities in support of designated housing 
allocation plans, and approximately $20 million in one-year budget 
authority for approximately 3,500 Section 8 rental vouchers and 
certificates for non-elderly disabled families who are not currently 
receiving housing assistance in certain Section 8 project-based 
developments due to the owners establishing preferences for the 
admission of elderly families, and certain types of section 202, 
section 221(d)(3), and section 236 developments where the owners are 
restricting occupancy in the development (or portion thereof) to 
elderly families. PHA applications for funding related to designated 
housing allocation plans, and PHA applications for funding related to 
non-elderly disabled families currently on the waiting lists or 
otherwise in the community of certain Section 8 project-based 
developments and certain types of section 202, section 221(d)(3) and 
section 236 developments will be approved for funding on a first-come, 
first-served basis.
    Approximately $39 million ($25 million for designated housing 
allocation plans and $14 million related to certain types of Section 8 
project-based developments) of the $50 million in funding announced as 
available to PHAs under NOFA FR-4207, published in the Federal Register 
on April 10, 1997 (62 FR 17672), remains unobligated. These remaining 
funds, for which there was no application deadline, may be sufficient 
to fund all applications received during FY 1998 without having to use 
the FY 1998 appropriations provided for similar purposes. Funding 
announced in NOFA FR-4207 must be obligated before any new amounts are 
provided for applications related to designated housing allocation 
plans or certain types of Section 8 project-based developments. HUD's 
FY 1998 Appropriations Act expanded the use of any FY 1997 funding 
remaining unobligated under NOFA FR-4207, as well as allowed for the 
use of FY 1998 appropriations, to fund applications received for 
Section 8 rental vouchers and certificates in connection with non-
elderly disabled families affected by the restriction in certain types 
of section 202, section 221(d)(3), and section 236 developments to 
elderly families. Any portion of the current balance of $39 million in 
FY 1997 appropriations, or $40 million in FY 1998 appropriations 
related to designated housing allocation plans, certain types of 
Section 8 project-based developments, or certain types of section 202, 
section 221(d)(3), or section 236 developments remaining unobligated 
will be added to the approximately $48.5 million available under this 
NOFA, but for use only for non-elderly disabled families under the 
Mainstream Program. The authority to use any remaining funds for 
additional Section 8 rental vouchers and certificates under the 
Mainstream Program is found in HUD's 1998 Appropriations Act, which 
states that to the extent the Secretary determines that the FY 1997 and 
1998 appropriations related to designated housing allocation plans, 
certain types of Section 8 project-based developments, and certain 
types of section 202, section 221(d)(3), or section 236 developments is 
not needed to fund applications, the funds may be used for other non-
elderly disabled families. Consequently, PHAs should take this into 
consideration when deciding whether to apply for Mainstream Program 
funding, as the potential availability of such remaining funds in FY 
1998 would support approval of more than 10,000 additional Section 8 
rental vouchers and certificates. Unlike in FY 1997, the potential 
exists in FY 1998 to fund a far greater number of Mainstream Program 
applications from PHAs.
    With the exception of the ADDRESSES AND APPLICATION SUBMISSION 
PROCEDURES section of this NOFA, and section I.(A) of this NOFA, which 
cites the authority under which funding is being made available, the 
remainder of this NOFA applies only to the Mainstream Program.

Application Due Dates

(A) Delivered Applications

    The application deadline for delivered applications for the 
Mainstream Program is July 7, 1998, 6:00 p.m. local HUD Field Office 
HUB or local HUD Field Office Program Center time.
    The above-stated application deadline is firm as to date and hour. 
In the interest of fairness to all competing public housing agencies, 
HUD will treat as ineligible for consideration any application that is 
not received before the application deadline. Applicants should submit 
their materials as early as possible to avoid any risk of loss of 
eligibility because of unanticipated delays or other delivery-related 
problems. HUD will not accept, at any time during the NOFA competition, 
application materials sent by facsimile (FAX) transmission.

(B) Mailed Applications

    Applications for the Mainstream Program will be considered timely 
filed if postmarked before midnight on the application due date and 
received by the local HUD Field Office HUB or local HUD Field Office 
Program Center within ten (10) days of that date.

(C) Applications Sent by Overnight Delivery

    Overnight delivery items will be considered timely filed for the 
Mainstream Program if received before or on the application due date, 
or upon submission of documentary evidence that they were placed in 
transit with the overnight delivery service by no later than the 
specified application due date.

Address and Application Submission Procedures

Headquarters Submission

    The original and a copy of applications for each of the three 
programs covered by this NOFA: (1) Section 8 rental voucher and 
certificate funding for the Mainstream Program, (2) non-elderly 
disabled families in support

[[Page 24051]]

of designated housing allocation plans, and (3) non-elderly disabled 
families in connection with certain Section 8 project-based 
developments and certain types of section 202, section 221(d)(3) and 
section 236 developments should be submitted to the local HUD Field 
Office HUB, Attention: Director, Office of Public Housing; or to the 
local HUD Field Office Program Center, Attention: Program Center 
Coordinator. A copy of an application submitted in connection with a 
designated housing allocation plan should also be submitted 
concurrently to HUD Headquarters, Office of Customer Service and 
Amenities, Room 4206, 451 Seventh Street, SW., Washington, DC 20410. 
The local HUD Field Office HUB or local HUD Field Office Program Center 
is the official place of receipt for all applications submitted in 
response to this NOFA. For ease of reference, the term ``local HUD 
Field Office'' will be used throughout this NOFA to mean the local HUD 
Field Office HUB and local HUD Program Center.
    PHAs submitting an application for either of the $20 million 
increments of funding (related to either allocation plans, or certain 
types of Section 8 project-based developments and certain types of 
section 202, section 221(d)(3) and section 236 developments) available 
under this FY 1998 NOFA should note that, other than the address for 
submission of applications specified in NOFA FR-4207, they are to 
otherwise follow the application procedures and requirements set forth 
in NOFA FR-4207 published on April 10, 1997, and NOFA FR-4085 published 
on October 30, 1996, in the Federal Register. PHAs submitting an 
application related to funding available for non-elderly disabled 
families in connection with certain types of Section 8 project-based 
developments should also see the correction to NOFA FR-4207 dated April 
17, 1997, in the Federal Register. The 200-unit limitation on the 
number of Section 8 rental certificates or vouchers that any PHA may 
request that was addressed by the correction shall also be the same 
unit limitation for applications submitted in response to this FY 1998 
NOFA in connection with the funding related to certain types of section 
202, section 221(d)(3), and section 236 developments. Section I.(A) in 
this FY 1998 NOFA further describes and defines these developments.
    The FY 1997 publications are included in the application kits 
available under this NOFA for these programs.
    For Application Kits, Further Information and Technical Assistance: 
For Application Kits. HUD will be pleased to provide you with 
application kits for purposes of submitting an application in 
connection with funding for either designated housing allocation plans, 
or with regard to certain types of Section 8 project-based developments 
or certain types of section 202, section 221(d)(3), and section 236 
developments. An application kit is not necessary for submitting an 
application for Mainstream Program funding. When requesting an 
application kit, please refer to the program name of the application 
kit you are interested in receiving. Please be sure to provide your 
name, address (including zip code), and telephone number (including 
area code).
    Requests for application kits should be made immediately to ensure 
sufficient time for application preparation. HUD will distribute 
application kits as soon as they become available.
    The SuperNOFA Information Center (1-800-HUD-8929) can provide you 
with assistance, application kits, and guidance in determining which 
local HUD Field Office should receive a copy of your application.
    For Further Information. For answers to your questions, you have 
several options. You may contact the local HUD Field Office.You may 
also contact George C. Hendrickson, Housing Program Specialist, Office 
of Public and Assisted Housing Delivery, Department of Housing and 
Urban Development, 451 Seventh Street, SW, Washington, DC 20410-8000; 
telephone (202) 708-0477. (The number listed above is not a toll-free 
number). Persons with hearing or speech impairments may access this 
number via TTY (text telephone) by calling the Federal Information 
Relay Service at 1-800-877-8339 (this is a toll-free number).
    For Technical Assistance. Prior to the application due date, HUD 
staff will be available to provide general guidance and technical 
assistance about this NOFA. Current law does not permit HUD staff to 
assist in preparing the application. Following selection, but prior to 
award, HUD staff will be available to assist in clarifying or 
confirming information that is a prerequisite to the offer of an award 
by HUD.

Additional Information

I. Authority, Purpose, Amount Allocated, and Eligibility

(A) Authority

     Authority for the approximately $48.5 million in 5-year budget 
authority available for the Mainstream Program under this NOFA (general 
use rental assistance for persons with disabilities) is found in the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1998 (Pub. L. No. 105-65; 
approved October 27, 1997) (1998 Appropriations Act), which states that 
the Secretary may designate up to 25 percent of the amounts earmarked 
for Section 811 of the National Affordable Housing Act of 1990 (42 
U.S.C. 8013) for tenant-based assistance, as authorized under that 
section.
    HUD's 1998 Appropriations Act also authorizes the use of 
approximately $40 million in one-year budget authority for Section 8 
rental vouchers and certificates for non-elderly disabled families in 
support of designated housing allocation plans, for non-elderly 
disabled families who are not currently receiving housing assistance in 
certain Section 8 project-based developments due to the owners 
establishing preferences for the admission of elderly families, and for 
non-elderly disabled families not being housed in certain section 202, 
section 221(d)(3) and section 236 developments (or portions thereof) 
where the owners have restricted occupancy to elderly families. HUD's 
1998 Appropriations Act added this third category of eligible families 
(non-elderly disabled families affected by occupancy restrictions 
established in accordance with section 658 of the Housing and Community 
Development Act of 1992 (the 1992 Act)). Section 658 of the 1992 Act 
provides that an owner of a Federally assisted project (or portion of a 
project) as described in subparagraphs (D), (E), and (F) of section 
683(2), that was designed for occupancy for elderly families may 
continue to restrict occupancy in such project (or portion) to elderly 
families in accordance with the rules, standards, and agreements 
governing occupancy in such housing in effect at the time of the 
development of the housing. The three types of housing listed under the 
relevant subsections are: housing that is assisted under section 202 of 
the Housing Act of 1959, as such section existed before the enactment 
of the National Affordable Housing Act (NAHA); housing financed by a 
loan or mortgage insured under section 221(d)(3) of the National 
Housing Act that bears an interest rate determined under section 
221(d)(5); and housing insured, assisted or held by the Secretary or a 
State or State Agency under section 236 of the National Housing Act.
    The 1998 Appropriations Act states that to the extent the Secretary 
determines that the FY 1997 and FY 1998 appropriations related to

[[Page 24052]]

designated housing allocation plans and certain types of Section 8 
project-based developments and certain types of section 202, section 
221(d)(3) and section 236 developments are not needed to fund 
applications, the funds may be used for other non-elderly disabled 
families. Any such remaining funds will be used to supplement funding 
for the Mainstream Program. As a result, approximately $79 million may 
be available in additional funding in FY 1998 for the Mainstream 
Program.

(B) Purpose

    The Secretary has established a Mainstream Housing Opportunities 
for Persons with Disabilities Program (Mainstream Program) to provide 
rental vouchers or certificates to enable persons with disabilities to 
rent affordable private housing of their choice.
    The Mainstream Program will assist PHAs in providing Section 8 
rental vouchers and certificates to a segment of the population 
recognized by HUD's housing research as having one of the worst case 
housing needs of any group in the United States; i.e., very low-income 
households with adults with disabilities. In addition, the Mainstream 
Program will assist persons with disabilities who often face 
difficulties in locating suitable and accessible housing on the private 
market.

(C) Amount Allocated

    HUD will award funding for rental vouchers or certificates under 
the Mainstream Program to PHAs that submit an application for rental 
assistance for persons with disabilities. HUD will make available 
approximately $48.5 million for approximately 1,700 Section 8 rental 
vouchers and certificates for PHAs to increase the supply of mainstream 
housing opportunities available to persons with disabilities. HUD will 
supplement the Mainstream Program funding with additional funding to 
the extent funding is not needed during FY 1998 to fund applications in 
support of designated housing allocation plans, or applications related 
to non-elderly disabled families on the waiting lists of certain types 
of Section 8 project-based developments where the owner has established 
a preference for the admission of elderly families. HUD will select PHA 
applications for funding by lottery in the event approvable 
applications are received for more funding than is available under this 
NOFA.
    There is a limit on the amount of rental assistance that may be 
requested. An eligible PHA may apply for one of the following: (1) up 
to 100 rental vouchers, (2) up to 100 rental certificates, or (3) a 
combination of rental vouchers and certificates not to exceed 100. A 
State or Regional (multicounty) PHA may apply for up to 200 rental 
vouchers or certificates (either all rental vouchers, all rental 
certificates, or a combination of the two not to exceed 200).

(D) Eligible Applicants

    A PHA established pursuant to State law may apply for funding under 
this NOFA. Indian Housing Authorities are no longer eligible for new 
increments of Section 8 funding. A regional (multicounty) or State PHA 
is eligible to apply for funding.
    Some PHAs currently administering the Section 8 rental voucher and 
certificate programs have, at the time of publication of this NOFA, 
major program management findings that are open and unresolved or other 
significant program compliance problems (e.g., PHA has not implemented 
mandatory Family Self-Sufficiency (FSS) Program). HUD will not accept 
applications for additional funding from these PHAs as contract 
administrators if, on the application due date, the findings are not 
closed to HUD's satisfaction. If the PHA wants to apply for funding 
under this NOFA, the PHA must submit an application that designates 
another housing agency, nonprofit agency, or contractor, that is 
acceptable to HUD. The PHA's application must include an agreement by 
the other housing agency, nonprofit agency, or contractor to administer 
the new funding increment on behalf of the PHA, and a statement that 
outlines the steps the PHA is taking to resolve the program findings. 
Immediately after the publication of this NOFA, the Office of Public 
Housing in the local HUD Field Office will notify, in writing, those 
PHAs that are not eligible to apply without such an agreement. The PHA 
may appeal the decision, if HUD has mistakenly classified the PHA as 
having outstanding management or compliance problems. Any appeal must 
be accompanied by conclusive evidence of HUD's error and must be 
received prior to the application deadline. HUD will reject 
applications submitted by these PHAs without an agreement from another 
housing agency, nonprofit agency, or contractor, approved by HUD, to 
administer the new funding increment on behalf of the PHA.

(E) Eligible Participants

    Only a disabled family may receive a rental voucher or certificate 
awarded under the Mainstream Program. Applicants with disabilities will 
be selected from the PHA's Section 8 waiting list.

II. Program Requirements and Definitions.

(A) Program Requirements

    (1) Compliance With Fair Housing and Civil Rights Laws. All 
applicants must comply with all fair housing and civil rights laws, 
statutes, regulations, and executive orders as enumerated in 24 CFR 
5.105(a). If an applicant: (a) has been charged with a violation of the 
Fair Housing Act by the Secretary; (b) is the defendant in a Fair 
Housing Act lawsuit filed by the Department of Justice; or (c) has 
received a letter of noncompliance findings under Title VI of the Civil 
Rights Act, section 504 of the Rehabilitation Act, or section 109 of 
the Housing and Community Development Act, the applicant is not 
eligible to apply for funding under this NOFA until the applicant 
resolves such charge, lawsuit, or letter of findings to HUD's 
satisfaction.
    (2) Additional Nondiscrimination Requirements. Applicants must 
comply with the Americans with Disabilities Act, and Title IX of the 
Education Amendments Act of 1972. In addition to compliance with the 
civil rights requirements listed at 24 CFR 5.105, each successful 
applicant must comply with the nondiscrimination in employment 
requirements of Title VII of the Civil Rights Act of 1964 (42 U.S.C. 
2000e et seq.), the Equal Pay Act (29 U.S.C. 206(d)), the Age 
Discrimination in Employment Act of 1967 (29 U.S.C. 621 et seq.), and 
Titles I and V of the Americans with Disabilities Act (42 U.S.C. 12101 
et seq.).
    (3) Affirmatively Furthering Fair Housing. Each successful 
applicant will have a duty to affirmatively further fair housing. 
Applicants will be required to identify the specific steps that they 
will take to: (a) address the elimination of impediments to fair 
housing that were identified in the jurisdiction's Analysis of 
Impediments (AI) to Fair Housing Choice; (b) remedy discrimination in 
housing; or (c) promote fair housing rights and fair housing choice. 
Further, applicants have a duty to carry out the specific activities 
cited in their responses to the rating factors that address 
affirmatively furthering fair housing in this NOFA.
    (4) Certifications and Assurances. Each applicant is required to 
submit signed copies of Assurances and Certifications. The standard 
Assurances and Certifications are on Form HUD-52515, Funding 
Application, which includes the Equal Opportunity

[[Page 24053]]

Certification, Certification Regarding Lobbying, and Certification 
Regarding Drug-Free Workplace Requirements.
    (5) Family Self-Sufficiency (FSS) Program Requirement. Unless 
specifically exempted by HUD, all rental vouchers and certificates 
provided under this NOFA will be used to establish or contribute to the 
minimum size of the PHA's FSS program.
    (6) Rental Voucher and Certificate Assistance Requirements.
    (a) Section 8 regulations. PHAs must administer the Mainstream 
Program in accordance with HUD regulations and requirements governing 
the Section 8 rental voucher and certificate programs.
    (b) Section 8 admission requirements. Section 8 assistance must be 
provided to eligible applicants in conformity with regulations and 
requirements governing the Section 8 program and the PHA's 
administrative plan.
    If there is ever an insufficient pool of disabled families on the 
PHA Section 8 waiting list, the PHA shall conduct outreach to encourage 
eligible persons to apply for this special allocation of rental 
vouchers and certificates. Outreach may include contacting independent 
living centers, advocacy organizations for persons with disabilities, 
and medical, mental health, and social service providers for referrals 
of persons receiving such services who would benefit from Section 8 
assistance. If the PHA's Section 8 waiting list is closed, and if the 
PHA has insufficient applicants on its Section 8 waiting list to use 
all awarded rental vouchers and certificates under this NOFA, the PHA 
shall open the waiting list for applications from disabled families.
    (c) Turnover. When a rental voucher or certificate under this NOFA 
becomes available for reissue (e.g., the family initially selected for 
the program drops out of the program or is unsuccessful in the search 
for a unit), the rental assistance may be used only for another 
individual or family eligible for assistance under this NOFA for 5 
years from the date the rental assistance is placed under an annual 
contributions contract (ACC).
    (d) PHA Responsibilities. In addition to PHA responsibilities under 
the Section 8 rental voucher and certificate programs and HUD 
regulations concerning nondiscrimination based on disability (24 CFR 
8.28) and to affirmatively further fair housing, PHAs that receive 
rental voucher or certificate funding shall:
    (i) Where requested by an individual, assist program participants 
to gain access to supportive services available within the community, 
but not require eligible applicants or participants to accept 
supportive services as a condition of participation or continued 
occupancy in the program.
    (ii) Identify public and private funding sources to assist 
participants in covering the costs of modifications that need to be 
made to their units as a reasonable accommodation for their 
disabilities.
    (iii) Not deny persons who qualify for rental assistance under this 
program other housing opportunities, or otherwise restrict access to 
PHA programs to eligible applicants who choose not to participate.
    (iv) Provide Section 8 search assistance.

(B) Definitions

    (1) Disabled Family. A family whose head, spouse, or sole member is 
a person with disabilities. The term ``disabled family'' may include 
two or more persons with disabilities living together, and one or more 
persons with disabilities living with one or more live-in aides. A 
disabled family may include a person with disabilities who is elderly. 
(Note: This definition applies to the approximately $48.5 million 
available under the Mainstream Program. This definition shall be 
modified, however, to be limited to solely non-elderly disabled 
families (families whose head, spouse or sole member is disabled and 
under the age of 62) regarding any funding available and awarded from 
the approximately $50 million in FY 1997 and $40 million in FY 1998 for 
designated housing allocation plans or in connection with certain 
Section 8 project-based developments. See the SUMMARY section at the 
beginning of this NOFA regarding the possibility of additional 
Mainstream Program funding during FY 1998 beyond the approximately 
$48.5 million available as announced under this NOFA.)
    (2) Person with disabilities. A person who--
    (a) Has a disability as defined in section 223 of the Social 
Security Act (42 U.S.C. 423), or
    (b) Is determined to have a physical, mental or emotional 
impairment that:
    (i) Is expected to be of long-continued and indefinite duration;
    (ii) Substantially impedes his or her ability to live 
independently; and
    (iii) Is of such a nature that such ability could be improved by 
more suitable housing conditions, or
    (c) Has a developmental disability as defined in section 102 of the 
Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 
6001(5)).
    The term ``person with disabilities'' does not exclude persons who 
have the disease of acquired immunodeficiency syndrome (AIDS) or any 
conditions arising from the etiologic agent for acquired 
immunodeficiency syndrome (HIV).

    Note: While the above definition of a ``person with 
disabilities'' is to be used for purposes of determining a family's 
eligibility for a Section 8 rental voucher or certificate under this 
NOFA, the definition of a person with disabilities contained in 
section 504 of the Rehabilitation Act of 1973 and its implementing 
regulations must be used for purposes of reasonable accommodations.

    (3) Section 8 search assistance. Assistance to increase access by 
program participants to housing units in a variety of neighborhoods 
(including areas with low poverty concentrations) and to locate and 
obtain units suited to their needs.

III. Application Selection Process for Mainstream Program

    After the local HUD Field Office has screened PHA applications and 
disapproved any applications found unacceptable for further processing, 
the local HUD Field Office will review all acceptable applications to 
ensure that they are technically adequate and responsive to the 
requirements of the NOFA. The local HUD Field Office will send to HUD 
Headquarters' Office of Funding and Financial Management the following 
information on each application that is found technically adequate and 
responsive:
    (1) Name and address of the PHA;
    (2) Local HUD Field Office contact person and telephone number;
    (3) The number of rental vouchers and/or certificates in the PHA 
application, and the minimum number of rental vouchers and/or 
certificates acceptable to the PHA; and
    (4) A completed fund reservation worksheet, indicating the number 
of Section 8 rental vouchers and/or certificates requested in the PHA 
application and recommended for approval by the local HUD Field Office 
during the course of its review, and the corresponding budget 
authority.
    HUD Headquarters will fund all applications from PHAs that are 
recommended for funding by the local HUD Field Offices unless HUD 
receives approvable applications for more funds than are available. If 
HUD receives approvable applications for more funds than are available, 
HUD will select applicants to be funded by lottery. All PHAs identified 
by the local HUD Field Offices as having submitted technically adequate 
and responsive applications will be included in the lottery. As PHAs

[[Page 24054]]

are selected, the cost of funding the applications will be subtracted 
from the funds available. In order to achieve geographic diversity, HUD 
Headquarters will limit the number of applications selected for funding 
from any State to 10 percent of the budget authority available for the 
general use Mainstream Program. However, if establishing this 
geographic limit would result in unreserved budget authority, HUD may 
modify this limit to assure that all available funds are used.
    Applications will be funded for the total number of units requested 
by the PHA and approved by the local HUD Field Office (not to exceed 
100 units) in accordance with this NOFA. However, when remaining budget 
authority is insufficient to fund the last selected PHA application in 
full, HUD Headquarters will fund that application to the extent of the 
funding available, unless the PHA's application indicates it will only 
accept a higher number of units. In that event, the next selected 
application shall be one that has indicated a willingness to accept the 
lesser amount of funding for units available.
    PHAs with approvable applications that are not funded, in whole or 
in part, due to insufficient funds available under this NOFA for the 
Mainstream Program, shall be considered first for funding in FY 1999 
provided that HUD receives additional appropriations for the Mainstream 
Program for FY 1999.

IV. Application Submission Requirements for Mainstream Program

(A) Form HUD-52515

    All PHAs must complete and submit form HUD-52515, Funding 
Application, for the Section 8 rental voucher and certificate program 
(dated January 1996). This form includes all necessary certifications 
for Fair Housing, Drug Free Workplace and Lobbying Activities; 
therefore, PHAs can complete and sign the form HUD-52515 to provide 
these required certifications. An application must include the 
information in Section (C), Average Monthly Adjusted Income, of form 
HUD-52515 in order for HUD to calculate the amount of Section 8 budget 
authority necessary to fund the requested number of units. Copies of 
form HUD-52515 may be obtained from the local HUD Field Office or may 
be downloaded from the HUD Home Page site on the Internet's world wide 
web (http://www.hud.gov).

(B) Local Government Comments

    Section 213 of the Housing and Community Development Act of 1974 
(42 U.S.C. 1439) requires that HUD independently determine that there 
is a need for the housing assistance requested in applications and 
solicit and consider comments relevant to this determination from the 
chief executive officer of the unit of general local government. The 
local HUD Field Office will obtain section 213 comments from the unit 
of general local government in accordance with 24 CFR part 791, subpart 
C, Applications for Housing Assistance in Areas Without Housing 
Assistance Plans. Comments submitted by the unit of general local 
government must be considered before an application can be approved.
    For purposes of expediting the application process, the PHA needs 
to encourage the chief executive officer of the unit of general local 
government to submit a letter with the PHA application commenting on 
the PHA application in accordance with section 213. Because HUD cannot 
approve an application until the 30-day comment period is closed, the 
section 213 letter needs to not only comment on the application, but 
also state that HUD may consider the letter to be the final comments 
and that no additional comments will be forthcoming from the unit of 
general local government.

(C) Letter of Intent and Narrative

    All the items in this section must be included in the application 
submitted to the local HUD Field Office. The PHA must state in its 
cover letter to the application whether it will accept a reduction in 
the number of rental vouchers or certificates, and the minimum number 
of rental vouchers or certificates it will accept, since the funding is 
limited and HUD may only have enough funds to approve a smaller amount 
than the number of rental vouchers or certificates requested. The 
maximum number of rental vouchers or certificates that a PHA may apply 
for under this NOFA is limited to 100, or 200 in the case of a State or 
regional (multicounty) PHA.

(D) Description of Need for Mainstream Program Rental Assistance

    The application must demonstrate a need for Mainstream Program 
rental vouchers or certificates by providing information documenting 
that the demand for housing for persons with disabilities would equal 
or exceed the requested number of rental vouchers or certificates (not 
to exceed a maximum of 100). The PHA must assess and document the 
housing need for persons with disabilities using a range of sources 
including, but not limited to: census data, information from the PHA's 
waiting list (both public housing and Section 8), statistics on recent 
public housing admissions and rental certificate and voucher use, data 
from local advocacy groups and local public and private service 
agencies familiar with the housing needs of persons with disabilities, 
and pertinent information from the Consolidated Plan applicable to the 
PHA's jurisdiction. (See 24 CFR 91.205(d).) The PHA's demonstrated need 
for rental vouchers or certificates for disabled families must clearly 
support need on the basis of the types of disabled families (elderly 
and non-elderly disabled families versus exclusively non-elderly 
disabled families). This distinction is important, as any FY 1998 
Mainstream Program funding that may be available beyond the 
approximately $48.5 million available under this NOFA, must be used to 
assist only non-elderly disabled families. (See the SUMMARY section at 
the beginning of this NOFA regarding the possibility of substantially 
more Mainstream Program funding beyond the approximately $48.5 million 
initially announced as available under this NOFA.)

(E) Mainstream Program Operating Plan

    The application must include a description of an adequate plan for 
operating a program to serve eligible persons with disabilities, 
including:
    (1) A description of how the PHA will carry out its 
responsibilities under 24 CFR 8.28 to assist recipients in locating 
units with needed accessibility features; and
    (2) A description of how the PHA will identify private or public 
funding sources to help participants cover the costs of modifications 
that need to be made to their units as reasonable accommodations to 
their disabilities.

V. Corrections to Deficient Mainstream Program Applications

(A) Acceptable Applications

    To be eligible for processing, an application must be received by 
the local HUD Field Office no later than the date and time specified in 
this NOFA. The local HUD Field Office will initially screen all 
applications and notify PHAs of technical deficiencies by letter.
    If an application has technical deficiencies, the PHA will have 14 
calendar days from the date of the issuance of the HUD notification 
letter to submit the missing or corrected information to the local HUD 
Field Office before the application can be considered for further 
processing by HUD. Curable technical deficiencies relate only to items 
that do not improve

[[Page 24055]]

the substantive quality of the application.
    All PHAs must submit corrections within 14 calendar days from the 
date of the HUD letter notifying the applicant of any such deficiency. 
Information received by the local HUD Field Office after 3 p.m. eastern 
standard time on the 14th calendar day of the correction period will 
not be accepted and the application will be rejected as incomplete.

(B) Unacceptable Applications

    (1) After the 14-calendar day technical deficiency correction 
period, the local HUD Field Office will disapprove all PHA applications 
that it determines are not acceptable for processing. The local Hud 
Field Office's notification of rejection letter must state the basis 
for the decision.
    (2) Applications from PHAs that fall into any of the following 
categories will not be processed:
    (a) Applications from PHAs that do not meet the requirements of 
Section II(A)(1) of this NOFA, Compliance With Fair Housing and Civil 
Rights Laws.
    (b) The PHA has serious unaddressed, outstanding Inspector General 
audit findings or HUD management review findings for its rental voucher 
or rental certificate programs; or the PHA has serious underutilization 
of rental vouchers or certificates not attributable to the 3-month 
statutory delay for the reissuance of rental vouchers and certificates. 
The only exception to this category is if the PHA has been identified 
under the policy established in Section I.(D) of this NOFA and the PHA 
makes application with a designated contract administrator.
    (c) The PHA is involved in litigation and HUD determines that the 
litigation may seriously impede the ability of the PHA to administer 
the rental vouchers or certificates.
    (d) A PHA's application that does not comply with the requirements 
of 24 CFR 982.102 and this NOFA after the expiration of the 14-calendar 
day technical deficiency correction period will be rejected from 
processing.
    (e) The PHA's application was submitted after the application due 
date.

VI. Findings and Certifications

(A) Paperwork Reduction Act Statement

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

(B) Environmental Impact

    In accordance with 24 CFR 50.19(b)(11) of the HUD regulations, 
tenant-based activities assisted under this program are categorically 
excluded from the requirements of the National Environmental Policy Act 
and are not subject to environmental review under the related laws and 
authorities. In accordance with 24 CFR 50.19(c)(5), the approval for 
issuance of this NOFA is categorically excluded from environmental 
review under the National Environmental Policy Act of 1969 (42 U.S.C. 
4321).

(C) Catalog of Federal Domestic Assistance Numbers

    The Federal Domestic Assistance numbers for this program are: 
14.855 and 14.857.

(D) 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 NOFA will not have substantial direct effects on 
States or their political subdivisions, or the relationship between the 
Federal Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. As a result, 
the 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 PHAs.

(E) 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 regulations in 24 CFR part 
4, subpart A contain a number of provisions that are designed to ensure 
greater accountability and integrity in the provision of certain types 
of assistance administered by HUD. On January 14, 1992 (57 FR 1942), 
HUD published a notice that also provides information on the 
implementation of section 102. HUD will comply with the documentation, 
public access, and disclosure requirements of section 102 with regard 
to the assistance awarded under this NOFA, as follows:
    (1) 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 5-year period beginning not less than 30 days after the award of 
the assistance. Material will be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15. In addition, HUD will include the 
recipients of assistance pursuant to this NOFA in its Federal Register 
notice of all recipients of HUD assistance awarded on a competitive 
basis.
    (2) Disclosures. HUD will make available to the public for 5 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 3 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.

(F) Section 103 HUD Reform Act

    HUD will comply with section 103 of the Department of Housing and 
Urban Development Reform Act of 1989 and HUD's implementing regulations 
in subpart B of 24 CFR part 4 with regard to the funding competition 
announced today. These requirements 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 section 103 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 section 103 and subpart B of 24 CFR part 4.
    Applicants or employees who have ethics related questions should 
contact the HUD Office of Ethics (202) 708-3815. (This is not a toll-
free number.) For HUD employees who have specific program questions, 
such as whether particular subject matter can be discussed with persons 
outside HUD, the employee should contact the appropriate Field Office 
Counsel.

[[Page 24056]]

(G) 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) and to the provisions of the Lobbying Disclosure Act of 
1995 (Pub. L. 104-65; approved December 19, 1995).
    The Byrd Amendment, which is implemented in regulations at 24 CFR 
part 87, prohibits applicants for Federal contracts and grants from 
using appropriated funds to attempt to influence Federal executive or 
legislative officers or employees in connection with obtaining such 
assistance, or with its extension, continuation, renewal, amendment, or 
modification. The Byrd Amendment applies to the funds that are the 
subject of this NOFA. Therefore, applicants must file a certification 
stating that they have not made and will not make any prohibited 
payments and, if any payments or agreement to make payments of 
nonappropriated funds for these purposes have been made, a form SF-LLL 
disclosing such payments must be submitted. The certification and the 
SF-LLL are included in the application package.
    The Lobbying Disclosure Act of 1995 (Pub. L. 104-65; approved 
December 19, 1995), which repealed section 112 of the HUD Reform Act, 
requires all persons and entities who lobby covered executive or 
legislative branch officials to register with the Secretary of the 
Senate and the Clerk of the House of Representatives and file reports 
concerning their lobbying activities.

    Dated: April 24, 1998.
Deborah Vincent,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 98-11406 Filed 4-29-98; 8:45 am]
BILLING CODE 4210-33-P