[Federal Register Volume 63, Number 104 (Monday, June 1, 1998)]
[Notices]
[Pages 29834-29850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14368]



[[Page 29833]]

_______________________________________________________________________

Part VI





Department of Housing and Urban Development





_______________________________________________________________________



Community Development Block Grant Program for Indian Tribes and Alaska 
Native Villages Fiscal Year 1998 Notice of Funding Availability; Notice

Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / 
Notices

[[Page 29834]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4344-N-01]


Community Development Block Grant Program for Indian Tribes and 
Alaska Native Villages Fiscal Year 1998 Notice of Funding Availability

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

ACTION: Notice of Funding Availability for Fiscal Year 1998.

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

SUMMARY: This notice announces the availability of $67,003,105 for the 
Community Development Block Grant Program for Indian Tribes and Alaska 
Native Villages (ICDBG Program). The primary objective of this program 
is the development of viable Indian and Alaska Native communities, 
including decent housing, a suitable living environment, and economic 
opportunities, principally for persons of low and moderate income. In 
the body of this Notice of Funding Availability (NOFA) is information 
concerning the following: (a) The purpose of the NOFA and information 
regarding eligibility and available amounts; (b) A list of steps 
involved and a checklist of the exhibits required in the application 
process, including where and how to apply and what to submit; and (c) A 
description of application processing, including the selection process 
and the selection criteria.

Application Due Date

    Completed applications must be submitted no later than 6 pm, local 
time, on September 1, 1998 to the addresses shown below. See below for 
specific procedures governing the form of application submissions 
(e.g., mailed applications, express mail, overnight delivery, or hand 
carried).

Mailed Applications

    Applications will be considered timely filed if postmarked on or 
before 12 midnight on the application due date and received by the 
appropriate Area ONAP on or within ten (10) days of the application due 
date.

Applications Sent By Overnight/Express Delivery

    Applications sent by overnight delivery or express mail will be 
considered timely filed 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.

Hand Carried Applications

    Hand carried applications to the appropriate Area ONAP will be 
accepted during normal business hours before the application due date. 
On the application due date, business hours will be extended to 6:00 
pm.

Addresses for Submitting Applications

    Applicants in the following geographic locations should submit 
their applications to the identified Area ONAP:
    All States East of the Mississippi River, Plus Iowa and Minnesota: 
Eastern/Woodlands Office of Native American Programs, Community 
Development and Tribal Relations (CD & TR) Staff, 77 West Jackson 
Blvd., Chicago, IL 60604-3507; Telephone: (312) 886-4532, Ext. 2815.
    Louisiana, Kansas, Oklahoma, and Texas, except West Texas: Southern 
Plains Office of Native American Programs, CD & TR Staff, Suite 400, 
500 W. Main Street, Oklahoma City, OK 73102-3202; Telephone: (405) 553-
7525.
    Colorado, Montana, Nebraska, North Dakota, South Dakota, Utah and 
Wyoming: Northern Plains Office of Native American Programs, CD & TR 
Staff, First Interstate Tower North, 633 17th Street, Denver, CO 80202-
3607; Telephone: (303) 672-5457.
    Arizona, California, and Nevada: Southwest Office of Native 
American Programs, CD & TR Staff, Two Arizona Center, Suite 1650, 400 
N. Fifth Street, Phoenix, AZ 85004-2361; Telephone: (602) 379-4197.
    New Mexico and West Texas: Southwest Office of Native American 
Programs, CD & TR Specialist, Albuquerque Plaza, 201 3rd Street NW, 
Suite 1830, Albuquerque, NM 87102-3368; Telephone: (505) 766-1372.
    Idaho, Oregon, Washington: Northwest Office of Native American 
Programs, CD & TR Staff, Federal Office Building, 909 First Avenue, 
Suite 200, Seattle, WA 98104-1000; Telephone: (206) 220-5271.
    Alaska: Alaska Office of Native American Programs, CD & TR Staff, 
949 E. 36th Avenue, Suite 401, Anchorage, AK 99508-4135; Telephone: 
(907) 271-4603.

FOR FURTHER INFORMATION, APPLICATION KITS, AND TECHNICAL ASSISTANCE 
CONTACT:
    For Further Information. General program questions may be directed 
to the Area ONAP serving your area or to Robert Barth, Office of Native 
American Programs, Office of Public and Indian Housing, Department of 
Housing and Urban Development, P.O. Box 36003, 450 Golden Gate Ave., 
San Francisco, CA 94102; telephone (415) 436-8122. The TTY number is 
(415) 436-6594. (These are not toll-free numbers.)
    For Application Kits. Application kits may be obtained from the 
Area ONAPs identified above. 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.
    For Technical Assistance. Prior to the application deadline, staff 
will be available to provide general guidance, but not guidance in 
actually preparing the application. If applicable, following selection, 
but prior to award, HUD staff will be available to assist in clarifying 
or confirming information that is required to address a pre-award 
requirement or condition.

SUPPLEMENTARY INFORMATION:

Changes From FY 1997 NOFA

    1. Due Date for Application Submission. The Area ONAP will take 
into consideration circumstances beyond an applicant's control when 
determining if the due date has been met by applicants which choose to 
submit applications via the mail or an overnight delivery service. If 
mailed, an application will be determined to have met the submission 
timing requirements if it was postmarked by 6 p.m. on September 1, 1998 
and received in the Area ONAP within ten days of that date. If sent via 
an overnight delivery service, an application will be determined to 
have met the submission timing requirements if the applicant provides 
documentation that it was placed in transit with such a service by no 
later than 6 p.m. on September 1, 1998 and received by the Area ONAP 
within five days of that date.
    2. Grant Ceilings. Grant ceilings have been changed for applicants 
in the following Area ONAP jurisdictions.
    Eastern/Woodlands--The ceiling for all applicants has been raised 
from $300,000 to $400,000.
    Southwest--The ceiling for the applicants with the smallest 
populations (0-1,500) has been raised from $450,000 to $550,000. In 
addition, the total number of applicant population categories has been 
reduced from nine to six.
    Northwest--The ceiling for all applicants has been raised from 
$320,000 to $335,000.
    3. Proposed Biennial Funding for Applicants in the Jurisdiction of 
the Alaska Area ONAP. A single application process under the provisions 
and requirements set forth in this NOFA is proposed to be used for

[[Page 29835]]

both the FY 1998 and the FY 1999 funding allocations to the Alaska Area 
ONAP. The basis for this proposal and the procedures which would be 
followed if it is implemented are set forth in section I(C) of this 
NOFA.
    4. Application Requirements--Certificate Regarding Lobbying. The 
need to include a certificate regarding lobbying and a SF-LLL (if 
applicable) has been explicitly referenced as an application component. 
In FY 1997, these requirements were stated in section XII., Findings 
and Certifications, but were not specifically mentioned in section IV., 
Application Process and Submission Requirements.
    5. Number of Copies of an Application to be Submitted. In FY 1997, 
the requirement that an applicant submit one originally signed and two 
copies of an application was stated in the application kit but not the 
NOFA. This year this requirement is stated in the NOFA as well as the 
kit.
    6. Documentation Required for Point Award for Leveraged Resources. 
It has been made explicit that neither the contribution of indirect 
administrative costs nor resources to pay for the costs of operation 
and maintenance of a proposed project will be considered leveraged 
resources for purpose of point award.
    7. Corrections to Technically Deficient Applications and Provision 
of Supplemental Information. The processes to be used by the Area ONAPs 
to allow applicants to provide corrections to deficient applications 
and to request supplemental or additional information from an applicant 
have been more fully detailed and explained. However, the circumstances 
or situations under which these processes will be used have not been 
changed: the definition of a correctable technical deficiency remains 
the same as does the provision that nothing submitted by an applicant 
after the deadline date can enhance the rating of a project.
    8. Applicant Specific Thresholds. (i) Community Development. The 
benchmarks and process to be used to assess whether or not an applicant 
is making satisfactory progress in completing previously approved ICDBG 
projects have been clarified. This has been done by establishing a 
specific link between compliance with an approved project 
implementation schedule and performance.
    (ii) Housing Assistance. The process and procedures to be used to 
assess applicant performance in the provision of housing assistance to 
low and moderate income tribal members have been modified to reflect 
the requirements and characteristics of assistance provided under the 
Native American Housing and Self Determination Act of 1996 (25 U.S.C. 
4101, et seq.) also known as NAHASDA.
    9. New Threshold for Housing Category Projects. A new threshold 
requirement for housing category projects has been established. This 
threshold will require an applicant to provide an assurance that the 
project proposed is consistent with, and to the extent possible, 
identified in, the Indian Housing Plan (IHP) submitted by or on behalf 
of the applicant under the provisions of NAHASDA. If the IHP has not 
been submitted, the applicant shall provide an assurance that if an IHP 
is submitted, it will specifically reference the proposed project.
    10. Housing Rehabilitation Grant Limits. The grant limits set forth 
for applicants in the following Area ONAP jurisdictions have been 
changed.

------------------------------------------------------------------------
                                         FY 1998          FY 1997       
------------------------------------------------------------------------
Eastern/Woodlands.....................    $20,000  $15,000.             
Southern Plains.......................    $15,000  $20,000.             
Southwest.............................    $40,000  $35,000.             
Alaska................................    $50,000  Lesser of $45/sq.ft. 
                                                    or                  
                                                   $35,000.             
------------------------------------------------------------------------

    11. Housing Rehabilitation Projects--Adopted Rehabilitation 
Standards. The selection criterion regarding adopted housing 
rehabilitation standards has been increased in maximum value from 5 to 
10 points. The additional 5 points would be awarded to projects if the 
applicant's adopted and submitted standards include specific 
requirements which address child safety measures. This revision 
reflects the Healthy Homes initiative being implemented by HUD.
    12. Housing Rehabilitation Projects--Priority to Neediest 
Households. The selection criterion regarding the proposed provision of 
assistance by the applicant to the neediest households as defined in 
the NOFA has been reduced to 5 points from 10 points.
    13. Land Acquisition to Support New Housing Projects--Commitment 
and Availability of Housing Resources Selection Criterion. This 
selection criterion has been modified to reflect situations in which 
these resources are committed under the provisions of NAHASDA.
    14. Threshold for New Housing Construction. Since the Indian 
Housing Block Grant Program was not in existence in FY 1997, the 
threshold which addresses the availability of other resources to meet 
the needs of the households to be assisted has been modified so that an 
applicant must now demonstrate that an Indian Housing Block Grant would 
not be available to meet the needs of these households.
    15. New Housing Construction Projects--Adopted Housing Construction 
Policies and Plan. The maximum possible point award under this 
selection criterion has been increased from 20 to 25 points. The 
additional 5 points would be awarded to projects if the applicant's 
policy and plan specifically address the incorporation of child safety 
measures in the housing to be constructed. This revision reflects the 
Healthy Homes initiative being implemented by HUD.
    16. New Housing Construction Projects--Beneficiary Identification. 
The maximum point award for this selection criterion has been reduced 
to 5 points from 10 points.
    17. Community Facilities--Buildings--Benefits the Neediest. The 
maximum points available under this criterion has been increased from 
10 to 15 points and values of intermediate point awards have also been 
changed to be consistent with the similar factor under Community 
Facilities--Infrastructure.
    18. Community Facilities--Buildings--Multi-use/multi-benefit. This 
selection criterion has been eliminated and the 5 points available 
under it in FY 1997 have been reassigned to the Benefits the Neediest 
criterion.
    19. Editorial and Formatting Revisions. In addition to the changes 
discussed above, this notice makes a number of non-substantive 
technical changes to the FY 1997 NOFA. These editorial and formatting 
changes should make the NOFA easier to understand.

Promoting Comprehensive Approaches to Housing and Community 
Development

    HUD is interested in promoting and supporting 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, as noted above, a new 
threshold has been included for all housing category projects. 
Specifically, applicants will be required to demonstrate that such 
projects are consistent with, and where possible, are identified in, 
the Indian Housing Plan (IHP) submitted on, or on behalf of, the 
applicant under the provisions of the Native American Housing and Self-
Determination Act of 1996 (25 U.S.C. 4101 et seq.). If the IHP has not 
been

[[Page 29836]]

submitted by the ICDBG application due date, the applicant must submit 
an assurance that if an IHP is submitted, it will specifically 
reference the proposed housing category project.

Table of Contents

I. Authority; Purpose; Amounts Allocated; and Eligibility.
    (A) Authority.
    (B) Purpose.
    (C) Amounts Allocated.
    (D) Eligible Applicants.
    (E) Eligible Activities.
II. Program Requirements.
    (A) Statutory and Regulatory Requirements.
    (B) Nondiscrimination and Compliance with Civil Rights Laws.
    (C) Relocation.
    (D) Debarred and Suspended Contractors.
    (E) Indian Preference.
    (F) Conflict of Interest.
    (G) Certifications and Assurances.
    (H) Economic Opportunities for Low and Very Low Income Persons.
III. Application Selection Process.
    (A) Rating and Ranking.
    (B) Factors for Award Used to Evaluate and Rate Applications.
IV. Application Submission Requirements and Checklist.
    (A) General.
    (B) Demographic data.
    (C) Publication of Community Development Statement.
    (D) Application Submission.
    (E) Documentation requirements for point award for leveraged 
resources.
V. Corrections to Deficient Applications and Supplemental 
Information.
VI. Findings and Certifications.
    (A) Paperwork Reduction Act Statement.
    (B) Environmental Impact.
    (C) Recipient Compliance with Environmental Requirements.
    (D) Federalism, Executive Order 12612.
    (E) Prohibition Against Lobbying Activities.
    (F) Section 102 of the HUD Reform Act--Documentation, Access and 
Disclosure.
    (G) Section 103 of the HUD Reform Act--Prohibition of Advance 
Disclosure of Funding Decisions.
    (H) Catalog of Federal Domestic Assistance Number.

Additional Information

I. Authority; Purpose; Amounts Allocated; and Eligibility

    (A) Authority. Title I, Housing and Community Development Act of 
1974, as amended (42 U.S.C. 5301, et seq.); sec. 7(d) of the Department 
of Housing and Urban Development Act (42 U.S.C. 3535(d)); 24 CFR part 
1003.
    (B) Purpose. This notice announces the availability of $67,003,105 
for the ICDBG Program.
    (C) Amount Allocated.
    (1) General. Amendments to title I of the Housing and Community 
Development Act of 1974 have required that the allocation for Indian 
Tribes be awarded on a competitive basis in accordance with selection 
criteria contained in a regulation promulgated by the Secretary after 
notice and public comment. All grant funds awarded in accordance with 
this NOFA are subject to the requirements of 24 CFR part 1003. 
Applicants within an Area ONAP's geographic jurisdiction compete only 
against each other for that Area ONAP's allocation of funds.
    (2) Allocations. The requirements for allocating funds to Area 
ONAPs responsible for program administration are found at 24 CFR 
1003.101. Following these requirements, the allocations for FY 1998 are 
as follows:

Eastern/Woodlands.......................................      $5,103,221
Southern Plains.........................................      12,076,948
Northern Plains.........................................      10,186,349
Southwest...............................................      27,790,427
Northwest...............................................       3,891,943
Alaska..................................................       5,454,217
                                                         ---------------
    Total...............................................      64,503,105
                                                                        

    The total allocation includes $3,105 in unused funds from the 
amount reserved by the Assistant Secretary in Fiscal Year 1997 for 
imminent threat grants. As indicated in section I.(a)(4) below, 
$2,500,000 will be retained to fund imminent threat grants.
    (3) Grant Ceilings. The authority to establish grant ceilings is 
found at 24 CFR 1003.100(b)(1). Grant ceilings are established for FY 
1998 funding at the following levels:

----------------------------------------------------------------------------------------------------------------
                  Area ONAPs                                       Population                         Ceiling   
----------------------------------------------------------------------------------------------------------------
Eastern/Woodlands............................  ALL..............................................        $400,000
Southern Plains:.............................  ALL..............................................         750,000
Northern Plains:.............................  ALL..............................................         800,000
Southwest:...................................  50,001+..........................................       5,000,000
                                               10,501-50,000....................................       2,500,000
                                               7,501-10,500.....................................       2,000,000
                                               6,001-7,500......................................       1,000,000
                                               1,501-6,000......................................         750,000
                                               0-1,500..........................................         550,000
Northwest....................................  ALL..............................................         335,000
Alaska.......................................  ALL..............................................         500,000
----------------------------------------------------------------------------------------------------------------

    For the Southwest Area ONAP jurisdiction, the population used to 
determine ceiling amounts is the Native American population which 
resides on a reservation or rancheria.
    (4) Proposed biennial funding for applicants in the jurisdiction of 
the Alaska Area ONAP. This NOFA provides a single application process 
for the FY 1998 funds allocated to the Alaska Area ONAP and, subject to 
appropriation for FY 1999, that may be allocated to the Alaska Area 
ONAP in FY 1999.
    The jurisdiction of the Alaska Area ONAP includes the largest 
number of potentially eligible applicants. Given the fact that the vast 
majority of these entities have small population bases, however, the 
total amount allocated to the Alaska Area ONAP under the requirements 
of Sec. 1003.101 is the third smallest amount allocated to any of the 
Area ONAPs. In recent years, given the relationship between potentially 
eligible applicants and the funds available and the very competitive 
nature of the program, fewer than one in four of the applications 
submitted have been funded in the annual competition. A score in excess 
of 90 (out of a potential 100 points) has typically been required for 
any project to be successful. Many applicants have expended 
considerable amounts of time and resources year after year in an 
unsuccessful pursuit of funding and many worthy projects are returned 
unfunded each year. It is the opinion of HUD that having one process 
would reduce the administrative burden to the applicants of preparing 
and submitting applications repeatedly and would potentially provide 
that more applicants which have not been funded in the past could be 
funded.
    Under this process, if implemented, applicants would prepare and 
submit applications under the provisions and requirements of the NOFA. 
All applications would be screened, reviewed, and rated under the

[[Page 29837]]

provisions and requirements of the NOFA. After rating is completed and 
a ranked list of projects developed, grant awards would be made using 
FY 1998 allocated funds until these funds are exhausted. Applications 
not funded would be retained by the Alaska Area ONAP.
    Subject to appropriations, any FY 1999 funds allocated to the 
Alaska Area ONAP are expected to be used for grant offers to those 
applicants with the highest ranking retained applications until these 
funds are exhausted. In FY 1998, HUD will only announce those ICDBG 
grant offers made in FY 1998. FY 1999 ICDBG program grant offers will 
not be made or announced until the enactment of FY 1999 appropriations. 
The FY 1999 grant offers would also be contingent upon the applicant 
confirming in writing and providing such supporting documentation as is 
required to the Alaska Area ONAP within 30 days of the offer that:
    (a) The applicant continues to meet performance threshold 
requirements;
    (b) The project still meets all community development 
appropriateness and project specific threshold requirements; and
    (c) No changes have occurred since the submission of the 
application which would affect the rating or viability of the project.
    Potential applicants and other interested parties are encouraged to 
submit their comments on this proposal directly to the Alaska Area ONAP 
at the address identified in this NOFA. To be considered, these 
comments must be received July 2, 1998. A final determination on this 
proposal will be made within 35 calendar days of this NOFA. If, based 
on an evaluation of the comments received, it is determined to 
implement the proposal, an amendment to this NOFA will be published. 
The proposed biennial funding process is one method of responding to 
the unique situation existing in the Alaska Area ONAP. HUD may, in the 
future, propose other methods for addressing these distinctive Alaskan 
issues. HUD intends to award FY 2000 funds through the issuance of a 
separate competitive funding notice.
    (5) Imminent Threats. (a) The criteria for grants to alleviate or 
remove imminent threats to health or safety that require an immediate 
solution are described at 24 CFR part 1003, subpart E. Please note that 
the problem to be addressed must be such that an emergency situation 
exists or would exist if it were not addressed. In addition, funds 
provided under the provisions of that subpart may only be used to 
address imminent threats which are not of a recurring nature and which 
represent a unique and unusual circumstance that impact an entire 
service area. In accordance with the provisions of 24 CFR part 1003, 
subpart E, $2,500,000 will be retained to meet the funding needs of 
imminent threat applications submitted to any of the Area ONAPs. The 
grant ceiling for imminent threat applications for FY 1998 is $350,000. 
This ceiling is established pursuant to the provisions of 
Sec. 1003.400(c).
    (b) Requests for assistance under the imminent threat set-aside (24 
CFR part 1003, subpart E) do not have to be submitted by the deadline 
established in this NOFA; the deadline applies to applications 
submitted for assistance under 24 CFR part 1003, subpart D, Single 
purpose grants.
    (c) If, in response to a request for assistance, an Area ONAP 
issues a letter to proceed under the authority of Sec. 1003.401(a), an 
application must be submitted to and approved by the Area ONAP before a 
grant agreement may be executed. This application must consist of the 
following components:
    (i) Standard Form 424, Application for Federal Assistance;
    (ii) Brief description of the proposed project;
    (iii) Form HUD-4123, Cost Summary;
    (iv) Form HUD-4125, Implementation Schedule;
    (v) Form HUD-2880, Applicant/Recipient Disclosure/Update Report;
    (vi) Form HUD-4126, Certifications;
    (vii) Drug-free workplace certification (24 CFR part 24, subpart 
F); and
    (viii) Certification regarding lobbying activities (24 CFR part 87) 
and SF-LLL (if applicable).
    (D) Eligible Applicants.--(1) General. To apply for funding in a 
given fiscal year, an applicant must be eligible as an Indian Tribe or 
Alaska Native Village (or as a tribal organization) by the application 
submission date.
    (2) Tribal Organizations. Tribal organizations are permitted to 
submit applications under 24 CFR 1003.5(b) on behalf of eligible tribes 
or villages when one or more eligible tribe(s) or village(s) authorize 
the organization to do so under concurring resolutions. As is stated in 
this regulatory section, the tribal organization must itself be 
eligible under title I of the Indian Self-Determination and Education 
Assistance Act.
    (3) Successors to Eligible Entities. If a tribe or tribal 
organization claims that it is a successor to an eligible entity, the 
Area ONAP must review the documentation to determine whether it is in 
fact the successor entity.
    (4) Alaskan Tribal Entities. (a) Due to the unique structure of 
tribal entities eligible to submit ICDBG applications in Alaska, and as 
only one ICDBG application may be submitted for each area within the 
jurisdiction of an entity eligible under 24 CFR 1003.5, a Tribal 
Organization which submits an application for activities in the 
jurisdiction of one or more eligible tribes or villages must include a 
concurring resolution from each such tribe or village authorizing the 
submittal of the application. Each such resolution must also indicate 
that the tribe or village does not itself intend to submit an ICDBG 
application for that funding round. The hierarchy for funding priority 
continues to be the IRA Council, the Traditional Village Council, the 
Village Corporation and the Regional Corporation.
    (b) On October 23, 1997 (62 FR 205), the Bureau of Indian Affairs 
(BIA) published a Federal Register Notice entitled ``Indian Entities 
Recognized and Eligible to Receive Services From the United States 
Bureau of Indian Affairs.'' This notice provides a listing of Indian 
Tribal Entities in Alaska found to be Indian Tribes as the term is 
defined and used in 25 CFR part 83. Additionally, pursuant to title I 
of the Indian Self Determination and Education Assistance Act, ANCSA 
Village Corporations and Regional Corporations are also considered 
tribes and therefore eligible applicants for the ICDBG program.
    (c) Any questions regarding eligibility determinations and related 
documentation requirements for entities in Alaska should be referred to 
the Alaska Area ONAP prior to the deadline for submitting an 
application. (See 24 CFR 1003.5 for a complete description of eligible 
applicants.)
    Please note: when used in this NOFA the word ``tribe'' means an 
Indian Tribe, band, group or nation, including Alaska Indians, Aleuts, 
Eskimos, Alaska Native Villages, ANCSA Village Corporations and 
Regional Corporations.
    (E) Eligible Activities. Activities that are eligible for ICDBG 
funds are identified at 24 CFR part 1003, subpart C.

II. Program Requirements

    (A) Statutory and Regulatory Requirements. All applicants must meet 
and comply with all statutory and regulatory requirements. Applicable 
program specific statutory requirements for this program are found in 
title I of the Housing and Community Development Act of 1974, as 
amended (42 U.S.C. 5301 et seq.). Applicable program specific 
regulatory

[[Page 29838]]

requirements are found at 24 CFR part 1003. Copies of the regulations 
are available from HUD Community Connections Information Clearinghouse.
    (B) Nondiscrimination and Compliance with Civil Rights Laws. Under 
the authority of section 107(e)(2) of the Housing and Community 
Development Act of 1974, as amended, the Secretary has waived the 
requirement that recipients comply with the antidiscrimination 
provisions in section 109 of the Act with respect to race, color and 
national origin. Recipients must comply with the other prohibitions 
against discrimination found in Section 109; the Indian Civil Rights 
Act (Title II of the Civil Rights Act of 1968, 24 U.S.C. 1001-1303); 
the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107); and, Section 
504 of the Rehabilitation Act of 1973 (29 U.S.C. 794). Recipients must 
comply with the substantial rehabilitation and new construction 
requirements, in addition to the other requirements of 24 CFR part 8.
    (C) Relocation. If an applicant's proposed activities involve the 
relocation or displacement of persons, the requirements of the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970 and the government-wide implementing regulations at 49 CFR part 24 
apply to funding under this NOFA.
    (D) Debarred or Suspended Contractors. The provisions of 24 CFR 
part 24 apply to the employment, engagement of services, awarding of 
contracts, subgrants, or funding of any recipients, or contractors or 
subcontractors, during any period of debarment, suspension, or 
placement in ineligibility status.
    (E) Indian Preference. HUD has determined that programs funded 
under this NOFA are subject to section 7 (b) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b). The 
provisions and requirements for implementing this section are set forth 
in 24 CFR 1003.510.
    (F) Conflict of Interest. In addition to the conflict of interest 
requirements with respect to procurement transactions found in 24 CFR 
85.36 and 84.42, as applicable, the provisions of 24 CFR 1003.606 apply 
to such activities as the provision of assistance by the recipient or 
by its subrecipients to businesses, individuals, and other private 
entities under eligible activities which authorize such assistance.
    (G) Certifications and Assurances. The specific certifications and 
assurances which must be provided by an applicant are included under 
section IV. of this NOFA,
    (H) Economic Opportunities for Low and Very Low Income Persons. 
Recipients must comply with section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) (Employment Opportunities for 
Lower Income Persons in Connection with Assisted Projects) and its 
implementing regulations at 24 CFR part 135. Recipients must ensure 
that training, employment and other economic opportunities are 
directed, to the greatest extent feasible, toward low and very low 
income persons, particularly those who are recipients of government 
assistance for housing and to business concerns that provide economic 
opportunities to low and very low income persons. Recipients must 
comply with the reporting and recordkeeping requirements found at 24 
CFR part 135, subpart E. Tribes that receive HUD assistance described 
in this part shall comply with the procedures and requirements of this 
part to the maximum extent consistent with, but not in derogation of, 
compliance with section 7(b) of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450e(b).

III. Application Selection Process

    (A) Rating and Ranking
    (1) Screening for Acceptance. Each Area ONAP will screen 
applications for single purpose grants. Applications failing this 
screening shall be rejected and returned to the applicants unrated. 
Area ONAPs will accept applications if all the criteria listed below as 
items (a) through (f) are met:
    (a) The application is received or submitted in accordance with the 
requirements set forth under APPLICATION DUE DATE in this NOFA;
    (b) The applicant is eligible;
    (c) The proposed activities are eligible. Activities assisted with 
ICDBG funds are subject to the requirements of section 504 of the 
Rehabilitation Act of 1973 and HUD's implementing regulations at 24 CFR 
part 8;
    (d) The application contains substantially all the components 
specified in section IV.(D) of this notice;
    (e) At least 70% of the grant funds are to be used for activities 
that benefit low and moderate income persons, in accordance with the 
requirements of Sec. 1003.208; and
    (f) The application is for an amount which does not exceed the 
grant ceilings that are established by the NOFA.
    (2) Application Review Process.
     Threshold review. The Area ONAP will review each application that 
passes the screening process to ensure that each applicant and each 
proposed project meets the applicable threshold requirements set forth 
in 24 CFR 1003.301(a) and 1003.302, as implemented by this NOFA. If an 
applicant fails to meet any of the applicant-specific thresholds, its 
application cannot be accepted for rating and ranking. Project(s) that 
do not meet the community development appropriateness or applicable 
project-specific thresholds will not be considered for funding.
    (b) Rating Team. All projects that meet the acceptance criteria and 
threshold requirements will be reviewed and rated by an Area ONAP 
rating team of at least three voting members. The Area ONAP rating team 
will examine each project to determine in which one of the rating 
categories set forth in 24 CFR 1003.303(a) the project most 
appropriately belongs. The project will be rated on the basis of the 
criteria identified in the rating category component to which the 
project has been assigned. The total points for a rating component are 
100, which is the maximum any project can receive.
    (c) Public service projects. Due to the statutory 15 percent cap on 
public services activities, applicants may not receive single purpose 
grants solely to fund public services activities. However, any 
application may contain a public services component for up to 15 
percent of the total grant. This component may be unrelated to the 
other project(s) included in the application. If an application does 
not receive full funding, the public services allocation will be 
proportionately reduced to comprise no more than 15 percent of the 
total grant award.
    (d) Final ranking. (i) All projects will be ranked against each 
other according to the point totals they receive, regardless of the 
rating category or component under which the points were awarded. 
Projects will be selected for funding based on this final ranking, to 
the extent that funds are available. Individual grant amounts will be 
determined in a manner consistent with the considerations set forth in 
24 CFR 1003.100(b)(2). Specifically, an Area ONAP may approve a grant 
amount less than the amount requested. In doing so, the Area ONAP may 
take into account the size of the applicant, the level of demand, the 
scale of the activity proposed relative to need and operational 
capacity, the number of persons to be served, the amount of funds 
required to achieve project objectives, and the administrative capacity 
of the applicant to complete the activities in a timely manner.
    (ii) If the Area ONAP determines that an insufficient amount of 
money is

[[Page 29839]]

available to adequately fund a project, it may decline to fund that 
project and fund the next highest ranking project or projects for which 
adequate funds are available. The Area ONAP may select, in rank order, 
additional projects for funding if one of the higher ranking projects 
is not funded, or if additional funds become available.
    (e) Tiebreakers. When rating results in a tie among projects and 
insufficient resources remain to fund all tied projects, Area ONAPs 
shall approve projects that can be fully funded over those that cannot 
be fully funded. When that does not resolve the tie, the following 
factors will be used in the order listed to resolve the tie:
    (i) Eastern/Woodlands Office.
    (1) The applicant with the fewest active grants.
    (2) The applicant that has not received an ICDBG grant over the 
longest period of time.
    (3) The project that would benefit the highest percentage of low 
and moderate income persons.
    (ii) Southern Plains Office.
    (1) The applicant that has not received an ICDBG grant over the 
longest period of time over the last 8 years.
    (2) The applicant with the fewest active grants.
    (3) The project that would benefit the highest percentage of low 
and moderate income persons.
    (iii) Northern Plains and Southwest Offices.
    (1) The applicant that has not received an ICDBG grant over the 
longest period of time.
    (2) The applicant with the fewest active grants.
    (3) The project that would benefit the highest percentage of low 
and moderate income persons.
    (iv) Northwest Office.
    (1) The applicant that has not received an ICDBG grant over the 
longest period of time.
    (2) The applicant that has received the fewest ICDBG dollars since 
the inception of the program.
    (3) The project that would benefit the highest percentage of low 
and moderate income persons.
    (v) Alaska Office.
    (1) The applicant that has not received an ICDBG grant over the 
longest period of time.
    (2) The project that would benefit the highest percentage of low 
and moderate income persons.
    (3) The project that would benefit the most low and moderate income 
persons.
    (f) Pre-award requirements.
    (i) Successful applicants may be required to provide supporting 
documentation concerning the management, maintenance, operation, or 
financing of proposed projects before a grant agreement can be 
executed. Applicants will normally be given no less than thirty (30) 
calendar days to respond to such requirements. In the event that no 
response or an insufficient response is made within the prescribed time 
period, the Area ONAP may determine that the applicant has not met the 
requirements and the grant offer may be withdrawn. The Area ONAPs shall 
require supporting documentation in those instances where:
    (1) Specific questions remain concerning the scope, magnitude, 
timing, or method of implementing the project; or
    (2) The applicant has not provided information verifying the 
commitment of other resources required to complete, operate, or 
maintain the proposed project.
    (ii) New projects may not be substituted for those originally 
proposed in the application.
    (iii) Grant amounts allocated for applicants unable to meet pre-
award requirements will be awarded in accordance with the provisions of 
this NOFA.
    (3) General threshold requirements.
    (a) General. Two types of general thresholds are set forth in 24 
CFR 1003.301(a): those that relate to applicants, and those that 
address the overall community development appropriateness of the 
project(s) included in the application. Project-specific thresholds are 
set forth in 24 CFR 1003.302.
    (b) Applicant Thresholds. (i) General. Applicant thresholds focus 
on the administrative capacity of the applicant to undertake the 
proposed project, on its past performance in the ICDBG program, and on 
its provision of housing assistance to low and moderate income tribal 
members.
    (ii) Applicant-Specific Thresholds: Capacity. The Area ONAP will 
assume, absent evidence to the contrary, that the applicant possesses, 
or can obtain the managerial, technical, or administrative capability 
necessary to carry out the proposed project. The application should 
address who will administer the project and how the applicant plans to 
handle the technical aspects of executing the project. If the Area ONAP 
determines, based on substantial evidence (which could include 
information provided by the most recent risk analysis conducted by the 
Area ONAP), that the applicant does not have or cannot obtain the 
capacity to undertake the proposed project, the application will not 
receive further consideration.
    (iii) Applicant-Specific Thresholds: Performance--(1) Community 
Development. (a) If an applicant has previously participated in the 
ICDBG Program, the Area ONAP shall determine whether the applicant has 
performed adequately in grant administration and management. This 
determination will include an evaluation of the most recent RADAR (Risk 
Analysis and Determination for Allocation of Resources) conducted by 
the Area ONAP for the applicant. The applicant is presumed to be 
performing adequately unless the Area ONAP makes a performance 
determination to the contrary during periodic evaluations.
    (b) To assess whether or not a recipient is making satisfactory 
progress in completing previously approved programs, actual progress 
will be measured against the most recent implementation schedule(s) for 
the recipient's program(s). This assessment will be done in conjunction 
with the evaluation of the RADAR and other relevant information, e.g., 
monitoring reports, which document or reflect a recipient's 
performance. A recipient which is more than sixty days behind schedule 
will be determined to be performing inadequately with respect to this 
aspect of grant administration.
    (c) Where an applicant was found to be performing inadequately, the 
Area ONAP shall determine whether the applicant has corrected the 
deficiency or is following a schedule to correct performance to which 
the applicant and the Area ONAP have agreed. In cases of previously 
documented deficient performance, the Area ONAP must determine that the 
applicant has taken appropriate corrective action to improve its 
performance prior to the application due date.
    (d) The Area ONAP will inform in writing any potential applicant 
which has been determined not to meet this performance threshold no 
later than 30 days prior to the application due date. If the 
performance threshold is not met as of the application submission 
deadline, an application will not be accepted for rating and ranking.
    (2) Housing assistance. (a) The applicant is presumed not to have 
taken actions to impede the provision of housing assistance for low and 
moderate income members of the tribe or village. Any action taken by 
the applicant to prevent or obstruct the provision or operation of 
assisted housing for low and moderate income persons shall be evaluated 
in terms of whether it constitutes inadequate performance by

[[Page 29840]]

the applicant. If an applicant has established or joined an Indian 
Housing Authority (IHA), and this IHA has obtained housing assistance 
from HUD, the performance of the applicant in meeting its obligations 
and responsibilities to the IHA in the development and operation of 
housing units assisted under the United States Housing Act of 1937 will 
be taken into consideration in evaluating its housing assistance 
performance. This evaluation will include a review of the applicant's 
compliance with the provisions of the documents which created its 
relationship with the IHA and the requirements of the Native American 
Housing and Self-Determination Act of 1996 (42 U.S.C. 4101 et seq.). In 
addition, if the applicant has designated another entity (a tribally 
designated housing entity (TDHE) to be the recipient of Indian Housing 
Block Grant Assistance on its behalf, compliance of the applicant with 
its agreement with the TDHE will also be a consideration in HUD's 
evaluation.
    (b) An applicant will not be held accountable for the poor 
performance of its IHA (or TDHE) unless this inadequate performance is 
found to be a direct result of the applicant's action or inaction. 
Applicants which are members of multi-tribal IHAs or associated with 
multi-tribal TDHEs will be judged only on their individual performance 
and will not be held accountable for the poor performance of other 
tribes that are members of the IHA or which are also associated with 
the TDHE.
    (c) If an applicant has received ICDBG funds for the provision of 
new housing through a Community Based Development Organization (CBDO), 
the Area ONAP will consider the following in making its determination 
regarding housing assistance performance:
    (i) Whether the proposed units were constructed;
    (ii) Whether housing assistance was provided to the beneficiaries 
identified in the funded application, and if not, why not;
    (iii) Whether the provisions of the applicant's housing plan and 
procedures have been followed; and
    (iv) Whether there were sustained complaints from tribal members 
regarding provision and/or distribution of ICDBG housing assistance.
    (d) The Area ONAP will inform in writing any potential applicant 
which has been determined not to meet the housing assistance 
performance threshold no later than 30 days prior to the application 
deadline.
    (iv) Audits. The thresholds described in paragraphs (3)(b)(ii) and 
(3)(b)(iii) of this section III.(A) require the applicant to meet the 
following performance criteria:
    (1) The applicant cannot have an outstanding ICDBG obligation to 
HUD or to an ICDBG program that is in arrears, or it must have agreed 
to a repayment schedule. An applicant that has an outstanding ICDBG 
obligation that is in arrears, or one that has not agreed to a 
repayment schedule, will be disqualified from the current competition 
and from subsequent competitions until the obligations are current. If 
a grantee that was current at the time of application submission 
becomes delinquent during the review period, the application may be 
rejected.
    (2) The applicant cannot have an overdue or unsatisfactory response 
to an audit finding. If there is an overdue or unsatisfactory response 
to an audit finding, the applicant will be disqualified from the 
current and subsequent competitions until the applicant has taken final 
action necessary to close the audit finding. The Area ONAP 
administrator may provide exceptions to this disqualification in cases 
where the applicant has made a good faith effort to clear the audit 
finding. An exception may be granted when funds are due HUD or an ICDBG 
program as a result of a finding only when a satisfactory arrangement 
for repayment of the debt has been made and payments are current.
    (c) Community Development Appropriateness. In order to rate and 
rank a project contained in an application that has passed the 
screening tests outlined in section III.(A) of this NOFA, Area ONAPs 
must determine that the proposed project meets the community 
development appropriateness thresholds set forth below:
    (i) Costs are reasonable. The project must be described in 
sufficient detail so that the Area ONAP can determine:
    (1) That costs are reasonable; and
    (2) That the funds requested from the ICDBG program and all other 
sources are adequate to complete the proposed activity(ies) described 
in the application.
    (ii) Project is Appropriate. The project is appropriate for the 
intended use.
    (iii) Project is Usable or Achievable. The project is usable or 
achievable in a timely manner, generally within a two year period. The 
timetable for project implementation and completion must be set forth 
on the form HUD 4125, Implementation Schedule, included in the 
application. A period of more than two years is acceptable in certain 
circumstances, if it is established that such circumstances are beyond 
the applicant's control.
    (B) Factors for Award Used To Evaluate and Rate Applications.
    The factors for rating and ranking applications and the points for 
each factor are provided below. The maximum number of points for a 
rating component is 100, which is the maximum any project can receive.
    (1) Summary of Rating Factors and Point Awards.

------------------------------------------------------------------------
                                                                 Maximum
                                                                  points
------------------------------------------------------------------------
                                 Housing                                
------------------------------------------------------------------------
Sec. III.(B)(3)                                                         
  (c) Rehabilitation                                                    
  (i) Project Need and Design                                           
  (1) % of funds for standard rehab............................       20
  (2) Applicant's selection criteria...........................        5
  (3) Housing survey...........................................       15
  (ii) Planning and Implementation                                      
  (1) Rehabilitation policies                                           
  (a) Rehabilitation standards.................................       10
  (b) Selection policies and procedures........................       10
  (c) Project implementation policies and procedures...........       10
  (2) Post rehab maintenance...................................        5
  (3) Cost estimates...........................................       15
  (4) Cost effectiveness.......................................        5
  (iii) Leveraging.............................................        5
                                                                --------
    Total points...............................................      100
  (e) Land to Support New Housing                                       
  (i) Project Need.............................................       40
  (ii) Planning and Implementation                                      
  (1) Suitability of the land..................................       20
  (2) Housing resources........................................       10
  (3) Supportive services......................................        5
  (4) Commitment of households.................................        5
  (5) Land to trust status.....................................        5
  (6) Infrastructure commitment................................       10
  (7) Land meets need and is reasonably priced.................        5
                                                                --------
    Total points...............................................      100
  (g) New Housing Construction                                          
  (i) Project Need and Design                                           
  (1) IHA member/assistance....................................       15
  (2) Housing policies and plan................................       25
  (3) Beneficiary identification...............................        5
  (ii) Planning and Implementation                                      
  (1) Occupancy standards......................................       10
  (2) Site acceptability.......................................       15
  (3) Energy conservation design...............................        5
  (4) Housing survey...........................................       10
  (5) Cost effectiveness.......................................        5
  (iii) Leveraging.............................................       10
    Total points...............................................      100
------------------------------------------------------------------------
                           Community Facilities                         
------------------------------------------------------------------------
Sec. III.(B)(4)                                                         
  (a) Infrastructure                                                    
  (i) Project Need and Design                                           
  (1) Meets an essential need..................................       20
  (2) Benefits the neediest....................................       15
  (3) Provides infrastructure/health and safety................       25
  (ii) Planning and Implementation.............................         

[[Page 29841]]

                                                                        
  (1) Maintenance and operation plan...........................       15
  (2) Appropriate and effective design scale and cost..........       15
  (iii) Leveraging.............................................       10
                                                                --------
    Total Points...............................................      100
  (c) Buildings                                                         
  (i) Project Need and Design                                           
  (1) Meets an essential need..................................       20
  (2) Benefits the neediest....................................       15
  (3) Provides building/health and safety......................       25
  (ii) Planning and Implementation                                      
  (1) Maintenance and operation plan...........................       15
  (2) Appropriate and effective design scale and cost..........       15
  (iii) Leveraging.............................................       10
                                                                --------
    Total points...............................................      100
------------------------------------------------------------------------
                           Economic Development                         
------------------------------------------------------------------------
Sec. III.(B)(5)                                                         
  (b) Economic Development                                              
  (i) Organization.............................................        8
  (ii) Project Success                                                  
  (1) Market analysis..........................................       15
  (2) Management capacity......................................       15
  (3) Financial analysis.......................................       15
  (iii) Leveraging.............................................       12
  (iv) Jobs                                                             
  (2) ICDBG cost/job...........................................       15
  (3) Quality of jobs/training.................................        5
  (v) Additional considerations................................       15
                                                                --------
    Total points...............................................      100
------------------------------------------------------------------------

    (2) Definitions.
    Adopt means to approve by formal tribal resolution.
    Assure means to comply with a specific NOFA requirement. The 
applicant should state its compliance or its intent to comply in its 
application.
    Document means to supply supporting written information and/or data 
in the application which satisfies the NOFA requirement.
    Leverage means resources the grantee will use in conjunction with 
ICDBG funds to achieve the objectives of the project. Resources 
include, but are not limited to:
    (1) Tribal trust funds;
    (2) Loans from individuals or organizations;
    (3) State or Federal loans or guarantees;
    (4) Other grants; and
    (5) Noncash contributions and donated services.
    (See section IV.(E) of this NOFA for documentation requirements for 
point award for leveraged resources.)
    Project Cost means the total cost to implement the project. Project 
cost includes both ICDBG and non ICDBG funds and resources.
    Section 8 standards means housing quality standards contained in 24 
CFR 982.401 (Section 8 Tenant-Based Assistance: Unified Rule for 
Tenant-Based Assistance Under the Section 8 Rental Certificate Program 
and the Section 8 Rental Voucher Program).
    Standard Housing/Standard Condition means housing which meets the 
housing quality standards (HQS) adopted by the applicant.
    (1) The HQS adopted by the applicant must be at least as stringent 
as the Section 8 standards unless the Area ONAP approves less stringent 
standards based on a determination that local conditions make the use 
of Section 8 standards infeasible.
    (2) Applicants may submit their request for the approval of 
standards less stringent than Section 8 standards prior to the 
application due date. If the request is submitted with the application, 
applicants should not assume automatic approval by the Area ONAP.
    (3) The adopted standards must provide for the following:
    (i) That the house is safe, in a physically sound condition with 
all systems performing their intended design functions;
    (ii) A livable home environment;
    (iii) An energy efficient building and systems which incorporate 
energy conservation measures; and
    (iv) Adequate space and privacy for all intended household members.

Housing

    (3) Project Specific Thresholds and Rating Factors for Housing.
    (a) Specific thresholds for housing category projects. (i) The 
applicant shall provide an assurance that households that have been 
evicted from HUD assisted housing within the past five years will not 
be assisted by the proposed project except in emergency situations. The 
Area ONAP Administrator will review each emergency situation proposed 
by an applicant on a case-by-case basis to determine whether an 
exception is warranted.
    (ii) Consistency with Indian Housing Plan (IHP). The applicant 
shall provide an assurance that the housing category project proposed 
is consistent with, and to the extent possible, identified in, the 
Indian Housing Plan (IHP) submitted by or on behalf of the applicant 
under the provisions of the Native American Housing and Self-
Determination Act of 1996 (25 U.S.C. 4101 et seq.). (If the IHP has not 
been submitted, the applicant shall provide an assurance that if 
submitted, the IHP will specifically reference the proposed housing 
category project.)
    (b) Rehabilitation Thresholds and Grant Limits.--(i) Thresholds. 
All applicants for housing rehabilitation grants shall adopt 
rehabilitation standards and rehabilitation policies prior to 
submitting an application. These standards and policies must be 
submitted with the application. The applicant shall provide an 
assurance that:
    (1) Any house to be rehabilitated will be the permanent non-
seasonal residence of the occupants; the residents will live in the 
unit at least nine months per year.
    (2) Houses designated for eventual replacement will only receive 
repairs essential for the health and safety of the occupants.
    (3) Project funds will be used to rehabilitate HUD assisted houses 
only when the tenant/homeowner's payments are current or the tenant/
homeowner is current in a repayment agreement that is subject to 
approval by the Area ONAP. In emergency situations the Area ONAP 
administrator may grant exceptions to this requirement on a case-by-
case basis.
    (4) Houses that have received comprehensive rehabilitation 
assistance from any ICDBG or other Federal grant program within the 
past 8 years will not be assisted with ICDBG funds to make the same 
repairs if the repairs are needed as a result of abuse or neglect.
    (ii) Grant limits. Rehabilitation grant limits for each Area ONAP 
jurisdiction are as follows:

(1) Eastern/Woodlands......................................      $20,000
(2) Southern Plains........................................       15,000
(3) Northern Plains........................................       33,500
(4) Southwest..............................................       40,000
(5) Northwest..............................................       25,000
(6) Alaska.................................................       50,000
                                                                        

    (c) Rating Factors for Rehabilitation Projects.
    (i) Rating Factor 1: Project Need and Design. (40 points)
    (1) The percentage of ICDBG funds committed to bring the houses to 
be assisted up to a standard condition as defined by the applicant. 
Administrative, planning, and technical assistance expenditures are 
excluded in computing the percentage of ICDBG funds committed to bring 
the houses up to a standard condition. The percentage of ICDBG funds 
not used to bring the houses up to a standard condition must be used 
for emergency repairs, demolition of substandard units or another 
purpose closely related to the housing rehabilitation project.

[[Page 29842]]

    Percentage of ICDBG funds committed to bring houses to be assisted 
up to a standard condition:

91-100%--20 points
81-90.9%--15 points
80.9 and less--0 points

    (2) The applicant's selection criteria which are included in the 
application give first priority to the neediest households. Neediest is 
defined as households whose houses are in the greatest disrepair (but 
still suitable for rehabilitation treatment) in the project area, or 
very low-income households.

YES--5 points
NO--0 points

    (3)(a) Documentation of project need with a housing survey of all 
of the houses to be rehabilitated with ICDBG funds. This survey should 
include standard housing data on each house surveyed (e.g., age, size, 
type, number of rooms, number of habitable rooms, number of bedrooms/
sleeping rooms, type of heating). The survey should indicate the 
deficiencies for each house. A definition of ``suitable for 
rehabilitation'' must be included. At a minimum, this definition must 
not include houses that need only minor repairs, or houses that need 
such major repairs that rehabilitation is structurally or financially 
infeasible.
    (b) The application contains all the required survey data and the 
required definition of ``suitable for rehabilitation.'' (15 points)
    (c) The application does not contain the required definition of 
``suitable for rehabilitation'' and/or all the survey data, but does 
contain sufficient data to enable the project to proceed effectively. 
(10 points)
    (d) The application does not contain survey data or the survey data 
it does contain is not sufficient to enable the project to proceed 
effectively. (0 points)
    (ii) Rating Factor 2: Planning and Implementation. (55 points)
    (1) Rehabilitation Policies and Procedures including:
    (a) Adopted rehabilitation standards. The rehabilitation standards 
adopted by the applicant will ensure that after rehabilitation the 
houses assisted will be in a standard condition as defined in this 
NOFA. In addition, these standards include specific requirements which 
address child safety measures to be incorporated in all appropriate 
rehabilitation work. Such measures may include, but are not limited to, 
child safety latches on cabinets, hot water protection devices, and 
window guards to prevent children from falling.
    The standards adopted by the applicant will ensure that after 
rehabilitation the houses assisted will be in a standard condition as 
defined in this NOFA and that, where applicable, a safer living 
environment for children has been created. (10 points)
    The standards adopted by the applicant will ensure that after 
rehabilitation the houses assisted will be in a standard condition as 
defined in this NOFA but they do not address applicable specific child 
safety measures. (5 points)
    The standards do not meet requirements for point award. (0 points)
    (b) Rehabilitation selection policies and procedures. (i) The 
rehabilitation selection policies and procedures contained in the 
application include:
    (A) Property selection standards;
    (B) Cost limits;
    (C) Type of financing (e.g., loan or grant);
    (D) Homeowner costs and responsibilities;
    (E) Procedures for selecting households to be assisted; and,
    (F) Income verification procedures.
    (ii) The application contains all the rehabilitation selection 
policies and procedures listed above. (10 points)
    (iii) The application does not contain all the rehabilitation 
selection policies and procedures listed above, but contains sufficient 
data to enable the project to proceed effectively or the application 
contains all the rehabilitation selection policies and procedures 
listed above, but in insufficient detail. (5 points)
    (iv) The application does not contain the rehabilitation selection 
policies and procedures listed above or if it does contain policies and 
procedures, they are not sufficient to enable the project to proceed 
effectively. (0 points)
    (c) Project implementation policies and procedures. (i) These 
policies and procedures must include a description of the following 
items:
    (A) The qualifications which will be required of the inspector;
    (B) The inspection procedures to be used;
    (C) The procedures to be used to select the contractor or 
contractors;
    (D) The manner in which the households to be assisted will be 
involved in the rehabilitation process;
    (E) How disputes between the households to be assisted, the 
contractors and the applicant will be resolved; and, if applicable;
    (i) The repayment provisions which will be required if sale of the 
assisted house occurs prior to 5 years after the rehabilitation work 
has been completed.
    (ii) The application contains all the policies and procedures 
listed above, and they will enable the project to be effectively 
implemented. (10 points)
    (iii) The application contains some but not all of the policies and 
procedures listed above and these policies and procedures are 
sufficient for the project to proceed effectively. (5 points)
    (iv) The application does not contain the policies and procedures 
listed above. (0 points)
    (2) Post rehabilitation maintenance policies that address 
counseling and training assisted households on maintenance. (a) The 
policies included in the application contain a well-planned counseling 
and training program. Training will be provided for assisted 
households, and provision is made for households unable to do their own 
maintenance (e.g., elderly and persons with disabilities).
    (b) The policies include follow-up inspections after rehabilitation 
is completed to ensure the house is being maintained. (5 points)
    (c) The policies contain a well-planned home maintenance training 
and counseling program but fail to adequately address all of the items 
listed above. (3 points)
    (d) The application does not contain a well-planned home 
maintenance training and counseling program. (0 points)
    (3) Quality of cost estimates. (a) Cost estimates have been 
prepared by a qualified individual. (Qualifications of the estimator 
must be included in the application). Costs of rehabilitation are 
documented on a per house basis and are supported by a work write-up 
for each house to be assisted. The work write-ups are based upon making 
those repairs necessary to bring the houses to a standard condition in 
a manner consistent with adopted construction codes and requirements. 
The write-ups must be submitted with the application. If national 
standards (e.g., the Uniform Building Code) have been locally adopted 
as the construction codes and requirements, they must be referenced. If 
locally developed and adopted codes and requirements are used, they 
must be submitted. (15 points)
    (b) Cost estimates have been prepared for each house to be 
rehabilitated to determine the total rehabilitation cost. The cost 
estimates are included in the application. Costs to rehabilitate each 
house are documented by a deficiency list. (12 points)
    (c) Cost estimates have been prepared and are included in the 
application but the estimates are based on surveys and not on 
individual house deficiency lists. (5 points)
    (d) Cost estimates are not included in the application or the basis 
for the cost

[[Page 29843]]

estimates included is inappropriate or not provided. (0 points)
    (4) Cost effectiveness of the rehabilitation program. (a) This is a 
measure of how efficiently and effectively funds will be used under the 
proposed program. Applicants must demonstrate how the proposed 
rehabilitation will bring the houses to be assisted to a standard 
condition in an efficient and cost effective manner.
    (b) Rehabilitation project is cost effective. (5 points)
    (c) Rehabilitation project is not cost effective. (0 points)
    (iii) Rating Factor 3: Leveraging. (5 points)
    Points under this component will be awarded in a manner consistent 
with the definition of ``Leverage' included in this NOFA and the 
following breakdown:

------------------------------------------------------------------------
              Non-ICDBG percent of project cost                  Points 
------------------------------------------------------------------------
25 and over..................................................          5
20-24.9......................................................          4
15-19.9......................................................          3
10-14.9......................................................          2
5-9.9........................................................          1
0-4.9........................................................          0
------------------------------------------------------------------------

    (d) Thresholds for Land to Support New Housing. (i) The application 
contains information and documentation which establishes that there is 
a reasonable ratio between the number of net usable acres to be 
acquired and the number of low and moderate income households with 
documented housing needs.
    (ii) Housing assistance needs must be clearly demonstrated and 
documented with either a survey that identifies the households to be 
served, their size, income levels and the condition of current housing 
or an IHA, or if applicable, TDHE approved waiting list. The survey or 
waiting list must be submitted with the application.
    (e) Rating Factors for Land to Support New Housing.
    (i) Rating Factor 1: Project Need and Design. (40 Points)
    Information included in the application establishes that:
    (1) The applicant has no suitable land for the construction of new 
housing and the necessary infrastructure and amenities for this 
housing. (40 points); or
    (2) The applicant has land suitable for housing construction and 
needed infrastructure and amenities, but the land is officially 
dedicated to another purpose. (30 points); or
    (3) The applicant will be acquiring land for housing construction 
and the construction of needed infrastructure and amenities for both 
new and existing housing. (25 points); or
    (4) The applicant will be acquiring land for the construction of 
amenities for existing housing. (15 points); or
    (5) The reason for the land acquisition does not meet any of the 
criteria listed above. (0 points)
    (ii) Planning and Implementation. (60 points)
    (1) Suitability of land to be acquired. A preliminary investigation 
has been conducted by a qualified entity independent of the applicant. 
Based on this investigation (which must be submitted with the 
application), the land appears to meet all applicable requirements:
    (a) Soil conditions appear to be suitable for individual and/or 
community septic systems or other acceptable methods for waste water 
collection and treatment have been identified.
    (b) The land has adequate:
    (i) Availability of drinking water;
    (ii) Access to utilities;
    (iii) Vehicular access;
    (iv) Drainage.
    (e) The land appears to comply with environmental requirements. 
Future development costs are expected to be consistent with other 
subdivision development costs in the area (subdivision development 
costs include the costs of the land, housing construction, water and 
sewer, electrical service, roads, and drainage facilities if required).

YES--20 points
NO--0 points
    (2) Commitment and availability of housing resources.
    (a) The application includes evidence of a commitment and an 
ability to construct at least 25 percent of the housing units to be 
built on the land proposed for acquisition. This evidence consists of 
one (or more) of the following.
    (i) a firm or conditional commitment to construct (or to finance 
the construction of) the units; or
    (ii) documentation that an approvable application for the 
construction of these units has been submitted to a funding source or 
entity; or
    (iii) documentation that these units are specifically identified in 
the Indian Housing Plan submitted on or on behalf of the applicant as 
an affordable housing resource with a commensurate commitment of Indian 
Housing Block Grant (IHBG) resources. (10 points)
    (b) The evidence required for the award of 10 points has not been 
included in the application. (0 points)
    (3) Availability/accessibility of supportive services and 
employment opportunities. Documentation is provided in the application 
to indicate that upon completion of construction of the housing to be 
built on the land to be acquired, fire and police protection will be 
available to the site and medical and social services, schools, 
shopping, and employment opportunities will be accessible from the site 
according to the community's established norms.

YES--5 points
NO--0 points
    (4) Commitment that households will move into the new housing. 
Documented commitment from households that they will move into the new 
housing to be built on the land to be acquired is included in the 
application.
YES--5 points
NO--0 points

    (5) Land to trust status. (a) Land can be taken into trust or 
provisions have been made for taxes and fees. There must be a written 
assurance from the BIA that the land will be taken into trust or the 
applicant must demonstrate the financial capability and commitment to 
pay the property taxes and fees on the land for any period of time 
during which it anticipates it will own the property in fee. This 
commitment must be in the form of a resolution by the governing body of 
the applicant which indicates that the applicant will pay or guarantee 
that all taxes and fees on the land will be paid.
    (b) Documentation from the BIA that land can be taken into trust or 
the required governing body resolution is included in the application. 
(5 points)
    (c) Either the assurance or the resolution are missing from the 
application or they are inadequate. (0 points)
    (6) Infrastructure commitment. (a) A plan or commitment for any 
infrastructure needed to support the housing to be built on the land to 
be acquired has been included in the application. The plan or 
commitment must address water, waste water collection and treatment, 
electricity, roads, and drainage facilities necessary to support the 
housing to be developed.
    (b) Financial commitments for all necessary infrastructure have 
been included in the application or documentation is included which 
demonstrates that all necessary infrastructure is in place. (10 points)
    (c) A plan for the provision of all necessary infrastructure is 
included in the application but all financial commitments required to 
implement the plan have not been submitted. (5 points)
    (d) Neither a financial commitment or plan are included in the 
application. (0 points)

[[Page 29844]]

    (7) The extent to which the site proposed for acquisition meets the 
housing needs of the applicant and is reasonably priced. The 
application includes documentation which indicates that the applicant 
has examined and assessed the appropriateness of alternative sites and 
which demonstrates that the site proposed for acquisition best meets 
the documented housing needs of tribal households. The application must 
include comparable sales data which shows that the cost of the land 
proposed for acquisition is reasonable.

Yes--5 points
No--0 points

    (f) Thresholds for New Housing Construction. The following 
thresholds and the rating factors set forth in paragraph (g) of this 
section apply to new housing construction to be implemented through a 
Community-Based Development Organization (CBDO) as provided for under 
24 CFR 1003.204. Please note that all households to be assisted under a 
new housing construction project must be of low or moderate income 
status.
    (i) New housing construction can only be implemented through a 
Community-Based Development Organization (CBDO). Eligible CBDOs are 
described in 24 CFR 1003.204(c). The applicant must provide an 
assurance that it understands this requirement.
    (ii) Documentation which supports the following determinations must 
be included in the application:
    (1) No other housing is available in the immediate reservation area 
that is suitable for the households to be assisted;
    (2) No other funding sources including an Indian Housing Block 
Grant can meet the needs of the household(s) to be served.
    (3) The house occupied by the household to be assisted is not in 
standard condition and rehabilitation is not economically feasible, or 
the household is currently in an overcrowded house (sharing house with 
another household(s)), or the household to be assisted has no current 
residence.
    (iii) All applicants for new housing construction projects shall 
adopt construction standards and construction policies prior to 
submitting an application. Applicants must identify the building code 
to be used when constructing the houses and must document that this 
code has been adopted. The building code may be a tribal building code 
or a nationally recognized model code. If it is a tribal code it must 
regulate all of the areas and sub-areas identified in 24 CFR 200.925b, 
and it must be reviewed and approved by the Area ONAP. If the code is 
recognized nationally, it must be the latest edition of one of the 
codes incorporated by reference in 24 CFR 200.925c.
    (iv) The applicant must provide an assurance that any house to be 
constructed will be the permanent non-seasonal residence of the 
household to be assisted; this household must live in the house at 
least nine months per year.
    (g) Rating Factors for New Housing Construction.
    (i) Rating Factor 1: Project Need and Design. (45 points)
    (1) IHA member/assistance. (a) The application includes 
documentation which establishes that the applicant was not served by an 
Indian Housing Authority (IHA), or if it was a member of an umbrella 
IHA, this IHA had not provided assistance to the applicant in a 
substantial period of time, or the IHA which served the applicant had 
not received HUD Public and Indian Housing new construction assistance 
in a substantial period of time due to limited HUD appropriations. The 
period of time during which the IHA serving the applicant had not 
received funding for inadequate or poor performance by the applicant 
does not count towards the period of time that no assistance has been 
provided by HUD.
    (b) No assistance from IHA for 10 years or longer. (15 points)
    (c) No assistance from IHA for 6-9 years, 11 months. (10 points)
    (d) No assistance from IHA for 0-5 years, 11 months. (0 points)
    (2) Adopted housing construction policies and plan. (a) The plan 
must include a description of the proposed CBDO and its relationship 
(or proposed relationship) to the applicant. In addition, the policies 
and plan must include:
    (i) A selection system that gives priority to the neediest 
households. Neediest shall be defined as households whose current 
residences are in the greatest disrepair, or very low-income 
households, or households without permanent housing.
    (ii) A system effectively addressing long-term maintenance of the 
constructed houses.
    (iii) Estimated costs and identification of the entity responsible 
for paying utilities, fire hazard insurance and other normal 
maintenance costs.
    (iv) Policies governing ownership of the houses, including the 
status of the land.
    (v) Description of a comprehensive plan or approach being 
implemented by the tribe to meet the housing needs of its members.
    (vi) Policies governing disposition or conversion to non-dwelling 
uses of substandard houses that will be vacated when a replacement 
house is provided.
    (b) The policies and plan include all of the information listed 
above and, in addition, they specifically address the incorporation of 
child safety measures in the housing to be constructed. Such measures 
may include, but are not limited to, child safety latches on cabinets, 
hot water protection devices, and window guards to prevent children 
from falling. (25 points)
    (c) The policies and plan include all of the information listed 
above but do not specifically address the incorporation of child safety 
measures. (20 points)
    (d) The policies and plan do not include all of the information 
listed above, but do include sufficient information to allow the 
project to proceed effectively or, all of the information is included, 
but in insufficient detail. (10 points)
    (e) The information included in the application is not sufficient 
to meet the requirements for the award of 10 points. (0 points)
    (3) Beneficiary identification. (a) Households to be assisted are 
identified in the application and their income eligibility and 
household size are documented. (5 points)
    (b) Households to be assisted are not identified or, if identified, 
their income eligibility and household size are not documented. (0 
points)
    (ii) Rating Factor 2: Planning and Implementation. (45 points)
    (1) Occupancy Standards. (a) The proposed housing will be designed 
and built according to adopted reasonable standards that govern the 
size of the housing in relation to the size of the occupying household 
(minimum and maximum number of persons allowed for the number of 
sleeping rooms); the minimum and maximum square footage allowed for 
major living spaces (bedrooms, living room, kitchen and dining room). 
The standards must be submitted with the application.
    (b) Applicant has adopted reasonable occupancy standards which are 
included in the application. (10 points)
    (c) Applicant has not adopted reasonable occupancy standards or the 
standards were not included in the application. (0 points)
    (2) Site Acceptability. (a) The applicant (or the proposed 
beneficiary household) has control of the land upon which the houses 
will be built. The application includes documentation that all housing 
sites are in trust or documentation from the BIA that the sites will be 
taken into trust within one

[[Page 29845]]

year of the date of the ICDBG approval notification. If the sites are 
not in trust by the date of ICDBG approval notification, documentation 
that they are in trust must be provided to the Area ONAP before ICDBG 
funds may be obligated for construction.
    (b) A preliminary investigation of the site(s) has been conducted 
by a qualified entity independent of the applicant. Based on this 
investigation (which must be included in the application) the site(s) 
appear to meet all applicable requirements:
    Soil conditions appear to be suitable for individual or community 
septic systems or other acceptable methods for waste water collection 
and treatment have been identified.
    (i) Each site has adequate:
    (ii) Availability of drinking water;
    (iii) Access to utilities;
    (iv) Vehicular access;
    (v) Drainage;
    (vi) Each site appears to comply with environmental requirements.

YES--15 points
NO--0 points

    (3) Energy Conservation Design. The application includes 
documentation which demonstrates that the proposed houses have been 
designed in a manner which will ensure that energy use will be no 
greater than that for comparable houses in the same general geographic 
area that have been constructed in accordance with applicable state 
energy conservation standards for residential construction. Any special 
design features, materials, or construction techniques which enhance 
energy conservation must be described.

YES--5 points
NO--0 points

    (4) Housing Survey. (a) The applicant has completed a survey of 
housing conditions and housing needs of its tribal members. This survey 
was completed within the twelve month period prior to the application 
submission deadline (or if an earlier survey, it was updated during 
this time period).
    The survey must be submitted with the application. The following 
descriptive data is included for each household surveyed:
    (i) Size of the household, including age and gender of any 
children.
    (ii) Is the household occupying permanent housing or is it 
homeless?
    (iii) Annual household income.
    (iv) Owner or renter.
    (v) Number of habitable rooms and number of sleeping rooms.
    (vi) Physical condition of the house--standard/substandard. If 
substandard, is it suitable for rehabilitation? A definition of 
``suitable for rehabilitation'' must be included.
    (vii) Number of distinct households occupying the house/degree of 
overcrowding.
    (viii) If there is a need for a replacement house, what are the 
housing preferences of the household, e.g. ownership or rental; 
location; manufactured or stick-built.
    (b) An acceptable survey was submitted. (10 points)
    (c) The survey submitted was not acceptable or no survey was 
submitted. (0 points)
    (5) Cost effectiveness of new housing construction. (a) This is a 
measure of how efficiently and effectively funds will be used under the 
proposed program. Applicants must demonstrate how the proposed housing 
activities will be accomplished in an efficient and cost effective 
manner.
    (b) The applicant has demonstrated that the proposed activities are 
cost effective. (5 points)
    (c) The applicant has not demonstrated that the proposed activities 
are cost effective. (0 points)
    (iii) Rating Factor 3: Leveraging. (10 points)
    Points under this component will be awarded in a manner consistent 
with the definition of ``Leverage'' included in this NOFA and the 
following breakdown:

------------------------------------------------------------------------
              Non-ICDBG percent of project cost                  Points 
------------------------------------------------------------------------
25 and over..................................................         10
20-24.9......................................................          8
15-19.9......................................................         16
10-14.9......................................................          4
5-9.9........................................................          2
0-4.9........................................................          0
------------------------------------------------------------------------

Community Facilities

    (4) Project Specific Thresholds and Rating Factors for Community 
Facilities.
    (a) Rating Factors for Infrastructure.
    (i) Rating Factor 1: Project Need and Design. (60 points)
    (1) Meets an essential need. (a) The application includes 
documentation which demonstrates that the proposed project meets an 
essential community development need by fulfilling a function that is 
critical to the continued existence or orderly development of the 
community.
    (b) The proposed project will fulfill a function which is critical 
to the continued existence or orderly development of the community. (20 
points)
    (c) The proposed project will fulfill a function which is not 
critical to the continued existence or orderly development of the 
community. (0 points)
    (2) Benefits the neediest. (a) The proposed project benefits the 
neediest segment of the population, as identified below. Applications 
must include information which demonstrates that income data was 
collected in a statistically reliable and independently verifiable 
manner and that:
    (b) 85 percent or more of the beneficiaries are low and moderate 
income. (15 points)
    (c) Between 75-84.9 percent of the beneficiaries are low and 
moderate income. (10 points)
    (d) Between 55-74.9 percent of the beneficiaries are low and 
moderate income. (5 points)
    (e) Less than 55 percent of the beneficiaries are low and moderate 
income. (0 points)
    (3) Provides infrastructure/health and safety.
    (a) The application includes documentation which demonstrates that 
the proposed project will provide infrastructure that does not 
currently exist for the area to be served or it will eliminate or 
substantially reduce a health or safety threat or problem or it will 
replace existing infrastructure that no longer functions adequately to 
meet current needs.
    (b) The infrastructure does not exist or the existing 
infrastructure no longer functions or the existing infrastructure does 
not contribute to the elimination of, or causes, a verified health or 
safety threat or problem. (25 points)
    (c) The existing infrastructure no longer functions adequately to 
meet current needs or is unreliable. (20 points)
    (d) The proposed project will replace or supplement existing 
infrastructure which is adequate for current needs but which will not 
meet acknowledged future needs. (12 points)
    (e) The proposed project will replace or supplement existing 
infrastructure which is adequate to meet current needs and future needs 
have not been acknowledged or documented. (0 points)
    (f) If the project is intended to address a health or safety threat 
or problem, the applicant must provide documentation consisting of a 
signed study or letter from a qualified independent authority which 
verifies that:
    (i) A threat to health or safety (or a health or safety problem) 
exists which has caused or has the potential to cause serious illness, 
injury, disease, or death; and
    (ii) The threat or problem can be completely or substantially 
eliminated if the proposed project is undertaken.

[[Page 29846]]

    (ii) Rating Factor 2: Planning and Implementation. (30 points)
    (1) A viable plan for maintenance and operation. (a) If the 
applicant is to assume responsibility for maintenance and operation of 
the proposed facility, the applicant must adopt a maintenance and 
operation plan which addresses maintenance, repair and replacement of 
items not covered by insurance, and which clearly identifies operating 
responsibilities and resources. This plan and the adopting resolution 
must be included in the application. The plan must identify a funding 
source to ensure that the facility will be properly maintained and 
operated. The resolution adopting the plan must identify the total 
annual dollar amount the applicant will commit.
    (b) If an entity other than the applicant commits to pay for 
maintenance and operation, a letter of commitment which identifies the 
responsibilities the entity will assume and which documents its 
financial ability to assume these responsibilities must be included in 
the application; submission of a maintenance and operation plan is not 
required. Points will only be awarded if the Area ONAP is able to 
determine that the entity is financially able to assume the costs of 
maintenance and operation.
    (c) An acceptable maintenance and operation plan and adopting 
resolution (or letter of commitment) are included in the application. 
(15 points)
    (d) The plan, resolution or the commitment letter have not been 
included in the application or if included they are not acceptable. (0 
points)
    (2) An appropriate and effective design, scale and cost. (a) The 
application includes information which demonstrates that the proposed 
project is the most appropriate and cost effective approach to address 
the identified need. This information demonstrates that the use of 
existing facilities and resources, and alternatives, including method 
of implementation and cost, have been considered. If only one approach 
is feasible (there are no alternatives to the proposed project), the 
application must include an explanation.
    (b) The required information is included in the application. (15 
points)
    (c) The required information is not included in the application or, 
if included, it is unacceptable. (0 points)
    (iii) Rating Factor 3: Leveraging. (10 points)
    Points under this component will be awarded in a manner consistent 
with the definition of ``Leverage'' included in this NOFA and the 
following breakdown:

------------------------------------------------------------------------
              Non-ICDBG percent of project cost                  Points 
------------------------------------------------------------------------
25 and over..................................................         10
20-24.9......................................................          8
15-19.9......................................................          6
10-14.9......................................................          4
5-9.9........................................................          2
0-4.9........................................................          0
------------------------------------------------------------------------

    (b) Threshold for Buildings. An applicant proposing a facility 
which would provide health care services funded by the Indian Health 
Service (IHS) must assure that the facility meets all applicable IHS 
facility requirements. It is recognized that tribes that are 
contracting services from the IHS may establish other facility 
standards. These tribes must assure that these standards at least 
compare to nationally accepted minimum standards.
    (c) Rating Factors for Buildings.
    (i) Rating Factor 1: Project Need and Design. (60 points)
    (1) Meets an essential need. (a) The application includes 
documentation that the proposed building meets an essential community 
development need by providing space so that a service or function which 
is critical to the continued existence or orderly development of the 
community can be provided.
    (b) The proposed building will provide space for a service or 
function which is essential to the continued existence or orderly 
development of the community. (20 points)
    (c) The proposed building will provide space for a service or 
function which is not critical to the continued existence or orderly 
development of the community. (0 points)
    (2) Benefits the neediest. The proposed project benefits the 
neediest segment of the population, as identified below. Applications 
must include information which demonstrates that income data was 
collected in a statistically reliable and independently verifiable 
manner and that:
    (a) 85 percent or more of the beneficiaries are low and moderate 
income. (15 points)
    (b) Between 75-84.9 percent of the beneficiaries are low and 
moderate income. (10 points)
    (c) Between 55-74.9 percent of the beneficiaries are low and 
moderate income. (5 points)
    (d) Less than 55 percent of the beneficiaries are low and moderate 
income. (0 points)
    (3) Provides building/health and safety. (a) The application 
includes documentation which demonstrates that the proposed building 
will be used to provide services or functions which are not currently 
being provided to service area beneficiaries or it will replace a 
building which does not meet health or safety standards which is 
currently being used to provide the service or function or it will 
replace a building which is no longer able to provide the space or 
amenities to meet the current need for the services or functions.
    (b) The services or functions to be provided in the proposed 
building do not exist for the service area population or the building 
currently being used does not meet health or safety standards. (25 
points)
    (c) The building to be replaced by the proposed building is not 
able to provide the space or amenities for the services or functions so 
that current needs cannot be entirely met. (20 points)
    (d) The building to be replaced is able to provide adequate space 
and current needs are being met but it cannot provide space for 
acknowledged future needs. (10 points)
    (e) The proposed building is not necessary since current needs and 
acknowledged future needs can be met through the use of existing 
facilities. (0 points)
    (f) If the proposed building is intended to replace an existing 
building which does not meet health or safety standards, the 
application must include documentation consisting of a signed letter 
from a qualified independent authority which specifically identifies 
the standard or standards which are not being met by the existing 
building.
    (ii) Rating Factor 2: Planning and Implementation. (30 points)
    (1) A viable plan for maintenance and operation. (a) If the 
applicant is to assume responsibility for the maintenance and operation 
of the proposed building, the applicant must adopt a maintenance and 
operation plan which addresses maintenance, repair and replacement of 
items not covered by insurance, and which clearly identifies operating 
responsibilities and resources. This plan and the adopting resolution 
must be included in the application. The plan must identify a funding 
source to ensure that the building will be properly maintained and 
operated. The resolution adopting the plan must identify the total 
annual dollar amount the applicant will commit.
    (b) If an entity other than the applicant commits to pay for 
maintenance and operation, a letter of commitment which identifies the 
responsibilities the entity will assume and which documents its 
financial ability to meet these responsibilities must be included in 
the application;

[[Page 29847]]

submission of a maintenance and operation plan is not required. Points 
will only be awarded if the Area ONAP is able to determine that the 
entity is financially able to assume the costs of maintenance and 
operation.
    (c) An acceptable maintenance and operation plan and adopting 
resolution (or letter of commitment) are included in the application. 
(15 points)
    (d) The plan, resolution or the commitment letter have not been 
included in the application, or if included, they are not acceptable. 
(0 points)
    (2) An appropriate and effective design, scale and cost. (a) The 
application includes information which demonstrates that the proposed 
building is the most appropriate and cost effective approach to address 
the identified need(s). This information demonstrates that the use of 
existing facilities and resources and alternatives, including method of 
implementation and cost, have been considered. If only one approach is 
feasible (there are no alternatives to the proposed building), the 
application must include an explanation.
    (b) The required information is included in the application. (15 
points)
    (c) The required information is not included in the application or, 
if included, it is unacceptable. (0 points)
    (iii) Rating Factor 3: Leveraging. (10 points)
    Points under this component will be awarded based on the definition 
of ``Leverage'' included in this NOFA and the following breakdown:

------------------------------------------------------------------------
              Non-ICDBG percent of project cost                  Points 
------------------------------------------------------------------------
25 or more...................................................         10
20-24.9......................................................          8
15-19.9......................................................          6
10-14.9......................................................          4
5-9.9........................................................          2
0-4.9........................................................          0
------------------------------------------------------------------------

Economic Development

    (5) Project Specific Thresholds and Rating Factors for Economic 
Development.
    (a) Thresholds for Economic Development. (i) Economic development 
assistance may be provided only when a financial analysis is provided 
which shows public benefit commensurate with the assistance to the 
business can reasonably be expected to result from the assisted 
project.
    (ii) The analysis should also establish that to the extent 
practicable: Reasonable financial support will be committed from non-
Federal sources prior to disbursement of Federal funds; any grant 
amount provided will not substantially reduce the amount of non-Federal 
financial support for the activity; not more than a reasonable rate of 
return on investment is provided to the owner; and, that grant funds 
used for the project will be disbursed on a pro-rata basis with amounts 
from other sources. In addition, it must be established that the 
project is financially feasible and has a reasonable chance of success.
    (b) Rating Factors for Economic Development.
    (i) Rating Factor 1: Organization. (8 points)
    (1) The application contains information and documentation which 
addresses all of the following three elements (Maximum: 8 points):
    (a) The applicant (or entity to be assisted) has an established 
organization system for operation of a business, (e.g., adopted tribal 
ordinances, articles of incorporation, Board of Directors in place, 
tribal department).
    (b) Formal provisions exist for separation of government functions 
from business operating decisions. An operating plan has been 
established and is submitted.
    (c) The Board of Directors consists of persons who have prior 
business experience. A staffing plan has been developed and is 
submitted.
    (2) The application contains all of the first element listed above, 
and some of the items in the second and third elements OR, the 
application contains all of the elements listed above, but in 
insufficient detail. The business should be able to operate 
effectively. (Moderate: 5 Points)
    (3) The application does not meet the criteria for the award of 
moderate points. (Unsatisfactory: 0 Points)
    (ii) Rating Factor 2: Project Success. (45 points)
    The project will be rated on the adequacy and quality of the 
information included in the application which addresses the following 
criteria: ANY PROJECT NOT RECEIVING AT LEAST MODERATE POINTS IN EACH OF 
THE FOLLOWING THREE RATING FACTORS WILL NOT BE CONSIDERED FOR FUNDING. 
    (1) Market analysis. (a) A feasibility/market analysis, generally 
not older than two years, which identifies the market and demonstrates 
that the proposed activities are highly likely to capture a fair share 
of the market. The analysis must be submitted with the application. 
(Maximum: 15 points)
    (b) A feasibility/market analysis which identifies the market and 
demonstrates that the proposed activities are reasonably likely to 
capture a fair share of the market. The analysis must be submitted with 
the application. (Moderate: 10 points)
    (c) The submission does not meet the criteria for the award of 
moderate points. (Unsatisfactory: 0 points)
    (2) Management capacity. (a) A management team with qualifying 
specialized training or technical/managerial experience in the 
operation of a similar business has been identified. Job descriptions 
of key management positions as well as resumes showing qualifying 
specialized technical/managerial training or experience of the 
identified management team must be submitted with the application. 
(Maximum: 15 points)
    (b) A management team with qualifying general business training or 
experience will be hired if the grant is approved. Job descriptions of 
key management positions must be submitted with the application. 
(Moderate: 12 points)
    (c) The submission does not meet the criteria for the award of 12 
points. (Unsatisfactory: 0 points)
    (3) Financial Analysis of the Business. (a) The financial viability 
of a project will be determined by an analysis of financial and other 
project related information. For all proposed projects, the following 
must be submitted:
    (i) A detailed cost summary for the project;
    (ii) Evidence of funding sources;
    (iii) Five year operating or cash flow financial projections. If 
the project involves the expansion of an existing business, financial 
statements for the most recent three year period for the business must 
also be submitted with the application (financial statements include 
the balance sheet, income statement and statement of retained 
earnings). For start-up businesses that will not be owned by the 
grantee, current financial or net worth statements of principal 
business owners or officers must also be submitted with the 
application.
    (b) The information derived from the analysis will be reviewed and 
compared to local or national industry standards to assess 
reasonableness of development costs, financial need, profitability, and 
risk as factors in determining overall financial viability. In 
determining whether a project is financially viable, the Area ONAP will 
also consider current and projected market conditions and profitability 
measures such as cash flow return on equity, cash flow return on total 
assets and the ratio of net profit before taxes to total assets. 
Sources of industry standards include Marshall and Swift Publication 
Company, Robert

[[Page 29848]]

Morris Associates, Dun and Bradstreet, the Chamber of Commerce, etc. 
Local standards may also be used. If one of these standards is cited by 
the applicant, the appropriate data must be submitted with the 
application.
    (c) Based on the analysis:
    (i) The project has an excellent chance of achieving financial 
success. (Maximum: 15 points)
    (ii) The project has an average chance of achieving financial 
success. (Moderate: 8 points)
    (iii) The project has a minimal prospect of achieving financial 
success. (Unsatisfactory: 0 points)
    (iii) Rating Factor 3: Leveraging. Points under this component will 
be awarded in a manner consistent with the definition of ``Leverage'' 
included in this NOFA and the following breakdown:

------------------------------------------------------------------------
              Non-ICDBG percent of project cost                  Points 
------------------------------------------------------------------------
30% or more..................................................         12
20-29.9%.....................................................          8
10-19.9%.....................................................          4
Less than 10%................................................          0
------------------------------------------------------------------------

    (iv) Rating Factor 4: Permanent Full-Time Equivalent Job Creation 
and Training. (20 points). (1) The total number of permanent full-time 
equivalent jobs expected to be created and/or retained as a result of 
the project as well as a summary of job descriptions must be identified 
or included in the application. Retained jobs will not be counted 
unless clear evidence is provided that these jobs would be lost without 
the project. The number and kind(s) of jobs expected to be available to 
low and moderate income persons must be identified.
    (2) ICDBG cost per job:

$30,000 or less.............................  15 points.                
$30,001-40,000..............................  12 points.                
$40,001-45,000..............................  8 points.                 
$45,001+....................................  0 points.                 
                                                                        

    (3) Quality of jobs and/or training targeted to low and moderate 
income persons:
    (a) The jobs offer wages and benefits comparable to area wages and 
benefits for similar jobs, provide opportunity for advancement, and 
teach a transferable skill; OR
    (b) The employer commits to provide training opportunities. A 
description of the planned training program must be submitted with the 
application.

YES--5 points
NO--0 points

    (v) Rating Factor 5: Additional Considerations. (15 points)
    A project must meet three of the following factors to receive 15 
points. (Maximum: 15 points)
    (1) Use, improve or expand members' special skills. Special skills 
are those that members have developed through education, training or 
traditional cultural experiences.

YES--5 points
NO--0 points

    (2) Provide spin-off benefits beyond the initial economic 
development benefits to employees or to the community.

YES--5 points
NO--0 points
    (3) Provide special opportunities for residents of federally-
assisted housing.
YES--5 points
NO--0 points

    (4) Provide benefits to other businesses owned by Indians or Alaska 
natives.

YES--5 points
NO--0 points

    (5) Loan Repayment/Reuse of ICDBG funds. If the business is not 
tribally owned, at least 50% of the ICDBG assistance to the business 
will be repaid to the grantee within a 10 year period. If the business 
is tribally owned, the tribe agrees (by submission of a tribal 
resolution) within a 10 year period to use funds equal to 50% of the 
ICDBG assistance for eligible activities that meet a national 
objective. These funds should come from the profits of the tribally 
owned business.
YES--5 points
NO--0 points

IV. Application Submission Requirements and Checklist

    (A) General. Completed applications (one originally signed and two 
copies) must be submitted to the appropriate Area ONAP listed above. 
All telephone numbers listed may be accessed via TTY by calling the 
Federal Information Relay Service at 1-800-877-8339. To be eligible for 
consideration, applications must be received by or be submitted to the 
appropriate Area ONAP in accordance with the requirements set forth 
under APPLICATION DUE DATE above. An applicant shall submit only one 
application. The ICDBG grant amount requested shall not total more than 
the grant ceiling. An application may include an unlimited number of 
eligible projects (e.g., housing or public facilities). Each project 
within an application will be rated separately.
    (B) Demographic data. Applicants may submit data that are 
unpublished and not generally available in order to meet the 
requirements of this section. The applicant must certify that:
    (1) Generally available, published data are substantially 
inaccurate or incomplete;
    (2) Data provided have been collected systematically and are 
statistically reliable;
    (3) Data are, to the greatest extent feasible, independently 
verifiable; and
    (4) Data differentiate between reservation and BIA service area 
populations, when applicable.
    (C) Publication of Community Development Statement. Applicants 
shall prepare and publish or post the community development statement 
portion of their application according to the citizen participation 
requirements of Sec. 1003.604.
    (D) Application Submission. The application shall include:
    (1) Standard Form 424--Application for Federal Assistance;
    (2) Community Development Statement which includes:
    (a) Components that address the relevant selection criteria;
    (b) A brief description or an updated description of community 
development needs;
    (c) A brief description of projects proposed to address needs, 
including scope, magnitude, and method of implementing the project;
    (d) A schedule for implementing the project (form HUD-4125, 
Implementation Schedule); and
    (e) Cost information for each separate project, including specific 
activity costs, administration, planning, and technical assistance, 
total HUD share (form HUD-4123, Cost Summary);
    (3) Certifications--form HUD 4126;
    (4) Drug-free Workplace Certification (24 CFR part 24, subpart F);
    (5) Certification regarding lobbying (24 CFR part 87) and SF-LLL 
(if applicable);
    (6) Applicant/Recipient Disclosure/Update Report--form HUD 2880, as 
required under subpart A of 24 CFR part 4, Accountability in the 
Provision of HUD Assistance;
    (7) A map showing project location, if appropriate;
    (8) If the proposed project will result in displacement or 
temporary relocation, a statement that identifies:
    (a) The number of persons (families, individuals, businesses and 
nonprofit organizations) occupying the property on the date of the 
submission of the application (or date of initial site control, if 
later);
    (b) The number to be displaced or temporarily relocated;
    (c) The estimated cost of relocation payments and other services;
    (d) The source of funds for relocation; and

[[Page 29849]]

    (e) The organization that will carry out the relocation activities;
    (9) If applicable, evidence of the disclosure required by 24 CFR 
1003.606(e) regarding conflict of interest.

(E) Documentation requirements for point award for leveraged resources.

    (1) General. For the applicant's own resources, a council 
resolution (or legal equivalent) which identifies and commits the 
resources must be included in the application. For resources to be 
provided by another entity, written verification of an application or 
request for the leveraged resources must be included in the 
application.
    (2) Resources contributed by a public agency, foundation, or other 
private party. (a) In addition to the requirement described in above in 
this section, for grants or other contributed resources from a public 
agency, foundation, or other private party, a written commitment which 
may be contingent on approval of the ICDBG award must be received by 
the Area ONAP no later than 30 days after the application deadline. 
This commitment must specifically identify or indicate:
    (i) The dollar amount committed (or dollar value of the noncash 
resource and the basis for the valuation);
    (ii) That the resources are currently available or will be 
available when necessary for successful project implementation; and
    (iii) The project.
    (b) If the nature of the funding cycle of the contributing entity 
precludes the entity from making a firm funding commitment in the 30 
days, such resources will be considered in the award of points if the 
entity provides a written statement indicating that the application or 
request for assistance has been received from the ICDBG applicant and 
stating the date by which its funding determination will be made. This 
date cannot be more than six months from the anticipated date of grant 
approval notification by HUD.
    (c) If the proposed project rates high enough for funding 
consideration, a special condition will be established in the grant 
agreement for the project. This condition will indicate that if a firm 
funding commitment for the leveraged resources is not provided within 
six months of the date of grant approval, the grant funds approved will 
be recaptured by HUD and will be used in accordance with the 
requirements of Sec. 1003.102.
    (d) The statement described in paragraph (c)(2)(ii) of this section 
must be received by the Area ONAP no later than 30 days after the 
application deadline. If the commitment or statement is not received in 
the required timeframe or if the required information is not included, 
points will not be awarded for the proposed contribution.
    (e) If the proposed project still rates high enough to be approved, 
a pre-award condition will be established which will require the 
applicant to provide evidence of firmly committed resources to cover 
the entire non-ICDBG project cost. If this condition is not met, the 
grant will not be awarded.
    (3) Contributions of goods and services. In addition to the above 
requirements for point award, special documentation must be included in 
the application for certain contributions. The contribution of goods 
and services will be considered for point award if the applicable 
requirements listed above are met; if the items or services are 
demonstrated and determined necessary to the actual development of the 
project; and comparable cost and/or time estimates are submitted which 
support the donation.
    (4) Contributions of land. Land to be contributed will only be 
considered for point award when its use and area are integral to the 
development of the project. In addition, the value of the land must be 
verified by any of the following means or methods and this 
documentation must be included in the application:
    (a) A site specific appraisal no more than two years old;
    (b) An appraisal of a nearby comparable site also no more than two 
years old; and
    (c) A reasonable extrapolation of land value based on current area 
realtors value guides.
    (5) Indirect costs. The contribution of indirect administrative 
costs as identified in OMB Circular A-87, attachment A, section F, will 
not be considered as a leveraged resource for purposes of point award.
    (6) Operations and maintenance expenditures. The contribution of 
resources to pay for the anticipated operations and maintenance costs 
of any proposed project will not be considered leveraged resources for 
purposes of point award.

V. Corrections to Deficient Applications and Supplemental Information

    After the application due date, Area ONAP may not, consistent with 
24 CFR part 4, subpart B, consider unsolicited information from an 
applicant. The Area ONAP may contact an applicant, however, to clarify 
an item in the application or to correct technical deficiencies. 
Applicants should note, however, that the Area ONAP may not seek 
clarification of items or responses that improve the substantive 
quality of the applicant's response to any eligibility or selection 
criterion. Examples of curable technical deficiencies include failure 
to submit the proper certifications or failure to submit an application 
containing an original signature by an authorized official. In each 
case, the Area ONAP will notify the applicant in writing by describing 
the clarification or technical deficiency. The Area ONAP will notify 
applicants by facsimile or by return receipt requested. Applicants must 
submit clarifications or corrections of technical deficiencies in 
accordance with the information provided by the Area ONAP within 14 
calendar days of the date of receipt of the Area ONAP notification. If 
the deficiency is not corrected within this time period, the Area ONAP 
will reject the application as incomplete.

VI. Error and Appeals

    Rating panel judgments made within the provisions of this NOFA and 
the program regulations (24 CFR part 1003) are not subject to claims of 
error. Applicants may bring arithmetic errors in the rating and ranking 
of applications to the attention of an Area ONAP within 30 days of 
being informed of their score. If an Area ONAP makes an arithmetic 
error in the application review and rating process which, when 
corrected, would result in the award of sufficient points to warrant 
the funding of an otherwise approvable project, the Area ONAP may fund 
that project in the next funding round without further competition.

VII. Findings and Certifications

    (A) Paperwork Reduction Act Statement. The information collection 
requirements contained in this Notice 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-
0191. An agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a valid control number.
    (B) Environmental Impact. This NOFA provides funding under, and 
does not alter environmental requirements of regulations in 24 CFR part 
1003. Accordingly, under 24 CFR 50.19(c)(5), this NOFA is categorically 
excluded from environmental review under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321).
    (C) Recipient Compliance with Environmental Requirements. In 
accordance with 24 CFR 1003.605, a

[[Page 29850]]

recipient must comply with the environmental review requirements of 24 
CFR part 58, including limitations on the commitment of project funds 
before submission of a request for release of funds.
    (D) Federalism, Executive Order 12612. The General Counsel, as the 
Designated Official under section 6(a) of Executive Order 12612, 
Federalism, has determined that this NOFA will not have substantial, 
direct effects on states, on their political subdivisions, or on their 
relationship with the Federal Government, or on the distribution of 
power and responsibilities between them and other levels of government. 
While the NOFA will provide financial assistance to Indian tribes and 
Alaska native villages, none of its provisions will have an effect on 
the relationship between the Federal Government and the states or their 
political subdivisions.
    (E) 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 
recipients of Federal contracts, grants, or loans from using 
appropriated funds for lobbying the executive or legislative branches 
of the Federal Government in connection with a specific contract, 
grant, or loan. 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 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.
    IHAs established by an Indian tribe as a result of the exercise of 
the tribe's sovereign power are excluded from coverage of the Byrd 
Amendment, but IHAs established under State law are not excluded from 
the statute's coverage.
    (F) Section 102 of the HUD Reform Act; Documentation and Public 
Access Requirements. Section 102 of the Department of Housing and Urban 
Development Reform Act of 1989 (42 U.S.C. 3545) (HUD Reform Act) and 
the regulations codified 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. The 
documentation, public access, and disclosure requirements of section 
102 apply to 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 in 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.
    (G) Section 103--HUD Reform Act. HUD's regulations implementing 
section 103 of the Department of Housing and Urban Development Reform 
Act of 1989 (42 U.S.C. 3537a), codified in 24 CFR part 4, apply to this 
funding competition. The regulations 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 the regulations 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 HUD's Ethics Law Division (202) 708-3815. (This is not a toll-
free number.) For HUD employees who have specific program questions, 
the employee should contact the appropriate Area ONAP or Headquarters 
counsel.
    (H) Catalog of Federal Domestic Assistance Number. The Catalog of 
Federal Domestic Assistance Number for the ICDBG Program is 14.862.

    Dated: May 20, 1998.
Deborah Vincent,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 98-14368 Filed 5-29-98; 8:45 am]
BILLING CODE 4210-33-P