[Federal Register Volume 64, Number 34 (Monday, February 22, 1999)]
[Notices]
[Pages 8692-8709]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-4286]



[[Page 8691]]

_______________________________________________________________________

Part IV





Department of Housing and Urban Development





_______________________________________________________________________



Community Development Block Grant Program for Indian Tribes and Alaska 
Native Villages Fiscal Year 1999 Funding Availability; Notice

  Federal Register / Vol. 64, No. 34 / Monday, February 22, 1999 / 
Notices  

[[Page 8692]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4406-N-01]


Community Development Block Grant Program for Indian Tribes and 
Alaska Native Villages Fiscal Year 1999 Notice of Funding Availability

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

ACTION: Notice of Funding Availability for Fiscal Year 1999.

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

SUMMARY: This notice announces the availability of $68,305,105 for the 
Community Development Block Grant Program for Indian Tribes and Alaska 
Native Villages (ICDBG Program). This figure consists of $67,000,000 in 
fiscal year 1999 funds and $1,305,105 in fiscal year 1998 carryover 
funds. The primary objective of this program is the development of 
viable Indian and Alaska Native communities, including the creation of 
decent housing, suitable living environments, and economic 
opportunities. The program is targeted principally towards people with 
low and moderate incomes. This Notice of Funding Availability (NOFA) 
contains the following information: (a) The purpose of the NOFA; (b) 
Information regarding eligibility and available amounts; (c) A list of 
steps involved in the application process, including where and how to 
apply and what to submit; (d) A checklist of the exhibits required for 
the application process; and (e) A description of how applications are 
processed, including the selection process and the selection criteria.

APPLICATION DUE DATE: You (the applicant) must submit your completed 
application no later than 5:00 p.m., local time, on May 10, 1999 to one 
of the addresses shown below. See below for specific procedures 
covering the method of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Mailed Applications. We (HUD) will consider your application to be 
timely filed if it is postmarked on or before 12:00 midnight on the 
application due date and received by the appropriate Area ONAP within 
ten (10) days after the application due date.
    Applications Sent By Overnight/Express Delivery. If you send your 
application by overnight delivery or express mail, we will consider it 
to be timely filed if we receive it before or on the application due 
date, or if you submit documentary evidence that you placed your 
application in transit with the overnight delivery service by no later 
than the specified application due date and we receive it within five 
(5) days of the application due date.
    Hand Carried Applications. You may hand carry your application to 
the appropriate Area ONAP during normal business hours before the 
application due date. On the application due date, we will accept 
applications until 5:00 p.m., local time.

                  Addresses for Submitting Applications
------------------------------------------------------------------------
     If you are applying from this        Send your application to this
        geographic location then                    area ONAP
------------------------------------------------------------------------
All States East of the Mississippi       Eastern/Woodlands Office of
 River, Plus Iowa and Minnesota.          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,  Southern Plains Office of
 except West Texas.                       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       Northern Plains Office of
 Dakota, South Dakota, Utah, and          Native American Programs CD &
 Wyoming.                                 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 N.W., 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.................................  As noted in Section I.(C)(4) of
                                          this NOFA, we will use FY 1999
                                          ICDBG funds, allocated to the
                                          Alaska Area ONAP, to fund the
                                          highest rated applications
                                          received by that office from
                                          FY 1998. We will not accept
                                          new applications for FY 1999.
------------------------------------------------------------------------

FURTHER INFORMATION, APPLICATION KITS, AND TECHNICAL ASSISTANCE:
    For Further Information. You should direct general program 
questions 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 Avenue, San Francisco, CA 94102; telephone (415) 436-
8122. The TTY number is (415) 436-6594. (These are not toll-free 
numbers.)
    For Application Kits. You may obtain an application kit from the 
Area ONAPs identified above. You should make your request for an 
application kit immediately to ensure sufficient time for application 
preparation. We will distribute application kits as soon as they become 
available.
    For Technical Assistance. Before the application deadline, we will 
be available to provide you with general guidance. We cannot, however, 
provide you with guidance on the actual contents of your application. 
If applicable, after selection but before award, we will be available 
to assist you in clarifying or confirming information that is required 
to address a pre-award requirement or condition.
SUPPLEMENTARY INFORMATION:

Changes From FY 1998 NOFA

    1. Deadline for Submission of Hand Carried Applications. We have 
changed the deadline for submitting hand carried applications from 6:00 
p.m., local time, to 5:00 p.m., local time. Based on our experience in 
FY 1998, there is no need to extend normal business hours for 
acceptance of applications.
    2. Grant Ceilings--Southwest ONAP. We have not changed the grant 
ceilings for the Southwest ONAP. We have, however, clarified the 
process used to correct or revise population levels upon which the 
grant ceiling is based.
    3. Application Components. We have clarified the status of two 
application

[[Page 8693]]

components. First, we now indicate that, if applicable, a demographic 
data certification (along with supporting documentation) is an 
application component. We referenced this certification in the FY 1998 
NOFA, however, it was not identified as an application component. 
Second, we now indicate that a concurring resolution is an application 
component, if it is part of an application submitted by a tribal 
organization, as defined in 24 CFR 1003.5(b), and submitted on behalf 
of a tribe, band, group, or nation. Please note that both of these 
items were identified in the FY 1998 ICDBG Application Kit as possible 
application components. They were not, however, identified as such in 
the FY 1998 NOFA. These clarifications make the FY 1999 NOFA and 
Application Kits consistent in this regard.
    4. Application Review Process--Threshold Review. We have clarified 
that projects that do not meet the community development 
appropriateness or applicable project-specific thresholds will not be 
rated or ranked. In addition, we have removed references to the term 
``RADAR'' (Risk Analysis for Determining the Allocation of Resources) 
from the discussion of performance threshold reviews. We did this 
because we are ending the use of this term in the risk analysis process 
used by the Area ONAPs.
    5. Correction of Technically Deficient Applications and Provision 
of Clarifying Information. We have changed the processes used by Area 
ONAPs that allow you to provide corrections to technically deficient 
applications and allow us to request clarifying information from you. 
As we have indicated in this NOFA, a technical deficiency is an error 
or oversight that, if corrected, would not alter, either in a positive 
or negative fashion, the review and rating of an application. In FY 
1998, we reviewed all applications that successfully passed the 
screening process for technical deficiencies. If we found any such 
deficiencies, we contacted each applicant, in writing and before rating 
the application, and gave them an opportunity to correct the 
deficiencies. Because, in most Area ONAPs, we can approve only a 
relatively small percentage of submitted applications (given the 
limited availability of funds), this process resulted in applicant and 
our staff time being spent, too often, on explaining or addressing 
technical deficiencies for applications that would not have rated high 
enough to be approved. In FY 1999, we will review all applications that 
pass screening for technical deficiencies, but will ask only successful 
applicants to correct any deficiencies. The deficiencies must be 
corrected before the grant is awarded.
    In addition, we have changed what in FY 1998 was called 
``supplemental information'' to ``clarifying information'' in FY 1999. 
The purpose of this change is to better explain that such information, 
if requested by us, cannot affect the rating of an application. 
Finally, we have streamlined the process used for obtaining such 
information.
    6. Land to Support New Housing. We have clarified and revised the 
first threshold requirement for this type of project. We have also 
provided an example of the type of documentation needed to establish 
that there would be a reasonable ratio between the number of net usable 
acres to be acquired and documented housing needs. In addition, we have 
identified a corollary consideration under this threshold: the need for 
the applicant to make the most effective and economic use of the land 
to be acquired.
    7. New Housing Construction. We have modified the site 
acceptability rating criterion to provide an option to the requirement 
that the land upon which the houses would be built must be in trust (or 
must be taken into trust).
    8. Community Facilities Rating Factors. The rating factor ``A 
viable plan for maintenance and operation'' which is similar for both 
infrastructure and buildings has been revised. It is now stated that if 
an entity other than the tribe commits for maintenance and operation of 
the proposed facility and this entity is an established organization or 
agency, its letter of commitment does not have to document its 
financial ability to assume these responsibilities; the financial 
ability of such entities to meet the commitments made will be assumed.
    9. Documentation Requirements for Leveraged Resources. We have 
clarified under paragraph (2)(b) of that section that the letter from 
the contributing entity must identify the project and the amount of 
funds requested from the entity by the applicant.
    10. Editorial and Formatting Revisions. In addition to the changes 
discussed above, we have made a number of non-substantive technical 
changes to the FY 1998 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. Consistent with this effort, you must 
demonstrate that housing category projects are consistent with, and 
where possible, are identified in, the Indian Housing Plan (IHP) 
submitted by, or on behalf of, you under the provisions of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4101 et seq.). If you have not submitted the IHP for the Indian 
Housing Block Grant (IHBG) program year that includes the 
implementation period for the proposed ICDBG funded activity by the 
ICDBG application due date, you 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. Clarifying Information.
VI. Correction of Technical Deficiencies.
VII. Errors and Appeals.
VIII. 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.

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    (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.); 24 CFR part 1003; 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1999 (Pub. L. 105-276, 112 
Stat. 2461, approved October 21, 1998) ($67,000,000 in fiscal year 1999 
funds); and Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1998 (Pub. L. 
105-65, 111 Stat. 1344, approved October 27, 1997) ($1,305,105 in 
fiscal year 1998 carryover funds).
    (B) Purpose. This notice announces the availability of $68,305,105 
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 1999 are 
as follows:

Eastern/Woodland........................................      $5,246,027
Southern Plains.........................................      12,414,912
Northern Plains.........................................      10,471,405
Southwest...............................................      28,565,024
Northwest...............................................       4,000,851
Alaska..................................................       5,606,886
                                                         ---------------
    Total...............................................      66,305,105
 

    The total allocation includes $1,305,105 in unused funds from the 
amount reserved by the Assistant Secretary in Fiscal Year 1998 for 
imminent threat grants. As indicated in section I. (a)(4) below, 
$2,000,000 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 
1999 funding at the following levels:

----------------------------------------------------------------------------------------------------------------
                  Area ONAP                                        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.......................................  [See (4) below]..................................
----------------------------------------------------------------------------------------------------------------

    For the Southwest Area ONAP jurisdiction, the population used to 
determine ceiling amounts is the Native American population that 
resides on a reservation or rancheria. Please contact that office 
before submitting your application if you are unsure of the population 
level to use to determine the ceiling amount for your tribe or if you 
believe that the level used for previous years needs to be revised or 
corrected. The Southwest ONAP must accept any corrections or revisions 
before you submit your application.
    (4) FY 1998 Funding process for the Alaska Area ONAP.
    As stated in the August 5, 1998, amendment to the FY 1998 ICDBG 
NOFA, the Alaska Area ONAP is using a biennial funding process for FY 
1998 and FY 1999. Applicants prepared and submitted applications under 
the provisions of the FY 1998 NOFA. We screened, reviewed, and rated 
all applications under the provisions and requirements of that NOFA. 
After we completed rating the applications and developed a ranked list 
of projects, we made grant awards using FY 1998 allocated funds until 
these funds were exhausted. Our Alaska Area ONAP retained applications 
not funded.
    We will use FY 1999 funds allocated to the Alaska Area ONAP for 
grant offers to those applicants with the highest ranking retained 
applications until these funds are exhausted. FY 1999 grant offers will 
be contingent upon the successful applicant providing to the Alaska 
Area ONAP within 30 days of the offer such supporting documentation as 
is required and confirming, in writing, that:
    (a) You continue 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 you submitted your application 
that would affect the rating or viability of the project.
    (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. In order to 
satisfy these criteria, the problem to be addressed must be such that 
an emergency situation exists or would exist if the problem were not 
addressed. In addition, you may use funds provided under that subpart 
only to address imminent threats that are not of a recurring nature and 
that represent a unique and unusual circumstance that impacts an entire 
service area. In accordance with the provisions of 24 CFR part 1003, 
subpart E, we will retain $2,000,000 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 1999 is $350,000. 
We established this ceiling pursuant to the provisions of 
Sec. 1003.400(c).
    (b) You do not have to submit a request for assistance under the 
imminent threat set-aside (24 CFR 1003, subpart E) by the deadline 
established in this NOFA; the deadline applies only to applications 
submitted for assistance under 24 CFR 1003, subpart D, Single purpose 
grants.
    (c) If, in response to a request for assistance, an Area ONAP 
issues you a letter to proceed under the authority of

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Sec. 1003.401(a), then your 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) Certification for a Drug-Free Workplace (form HUD 50070); and
    (viii) Certification regarding lobbying activities (24 CFR part 87) 
and SF-LLL (if applicable).
    (D) Eligible Applicants. (1) General. To apply for funding you must 
be eligible as an Indian Tribe (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 
when one or more eligible tribe(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.

    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. Title I of 
the Housing and Community Development Act of 1974, as amended (42 
U.S.C. 5301 et seq.) contains the applicable program specific statutory 
requirements for this program. The applicable program specific 
regulatory requirements are in 24 CFR part 1003. Copies of these 
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 anti-discrimination 
provisions in section 109 of the Act with respect to race, color and, 
national origin. As a recipient you must comply with the other 
prohibitions against discrimination 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). You must 
comply with the substantial rehabilitation and new construction 
requirements, in addition to the other requirements of 24 CFR part 8.
    (C) Relocation. If your 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, 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 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 
sub-recipients to businesses, individuals, and other private entities 
under eligible activities that authorize such assistance.
    (G) Certifications and Assurances. The specific certifications and 
assurances that you must provide are included under section IV. of this 
NOFA.
    (H) Economic Opportunities for Low and Very Low Income Persons. You 
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. You 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 persons who receive government assistance for 
housing and to business concerns that provide economic opportunities to 
low and very low income persons. You 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 must 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. The Area ONAP will reject an 
application that fails this screening and will return the application 
unrated. Area ONAPs will accept your application if it meets all the 
criteria listed below as items (a) through (f):
    (a) Your application is received or submitted in accordance with 
the requirements set forth under APPLICATION DUE DATE in this NOFA;
    (b) You are 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) Your 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 24 CFR 1003.208; and
    (f) Your application is for an amount that does not exceed the 
grant ceilings that are established by the NOFA.
    (2) Application Review Process.
    (a) 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. 
The Area

[[Page 8696]]

ONAP will not accept your application for rating and ranking if you 
fail to meet any of the applicant-specific thresholds. The Area ONAPs 
will not rate and rank project(s) that do not meet the community 
development appropriateness or applicable project-specific thresholds.
    (b) Rating Team. An Area ONAP rating team of at least three voting 
members will review and rate each project that meets the acceptance 
criteria and threshold requirements. 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. Because there is a statutory 15 
percent cap on public services activities, you may not receive a single 
purpose grant solely to fund public services activities. Your 
application, however, 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 your application. If your application does 
not receive full funding, we will reduce the public services allocation 
proportionately so that it comprises no more than 15 percent of the 
total grant award. In making such reductions, the feasibility of the 
proposed project will be taken into consideration.
    (d) Final ranking. (i) We will rank all projects against each other 
according to the point totals they receive, regardless of the rating 
category or component under which the points were awarded. We will 
select projects for funding based on this final ranking, to the extent 
that funds are available. We will determine individual grant amounts 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 there are not enough funds 
available to fund a project as proposed by the applicant, 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 
will approve projects that can be fully funded over those that cannot 
be fully funded. When that does not resolve the tie, the Area ONAP will 
use the following factors 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.
    (f) Pre-award requirements. 
    (i) Technical Deficiencies. If there are technical deficiencies in 
successful applications, you must satisfactorily address these 
deficiencies before we can make a grant award. Please see section VI. 
of this NOFA for a definition of such a deficiency and a description of 
the process to address and correct the deficiency. You must correct all 
technical deficiencies within the timeframe established by HUD; if they 
are not corrected, we will not make the grant award and will reject 
your application.
    (ii) We also may require a successful applicant to provide 
supporting documentation concerning the management, maintenance, 
operation, or financing of proposed projects before a grant agreement 
can be executed. We will normally give you no less than thirty (30) 
calendar days to respond to these requirements. If you do not respond 
within the prescribed time period or you make an insufficient response, 
the Area ONAP may determine that you have not met the requirements and 
may withdraw the grant offer. The Area ONAP require you to submit 
supporting documentation if:
    (1) Specific questions remain concerning the scope, magnitude, 
timing, or method of implementing the project; or
    (2) You have not provided information verifying the commitment of 
other resources required to complete, operate, or maintain the proposed 
project.
    (iii) You may not substitute new projects for those originally 
proposed in your application.
    (iv) We will award, in accordance with the provisions of this NOFA, 
grant amounts that had been allocated for applicants unable to meet 
pre-award requirements.
    (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 you possess, or can 
obtain the managerial, technical, or administrative capability 
necessary to carry out the proposed project. Your application should 
address who will administer the project and how you plan 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 you do not

[[Page 8697]]

have or cannot obtain the capacity to undertake the proposed project, 
it will not consider your application any further.
    (iii) Applicant-Specific Thresholds: Performance. (1) Community 
Development. (a) If you have previously participated in the ICDBG 
Program, the Area ONAP will determine whether you have performed 
adequately in grant administration and management. This determination 
will include an evaluation of the most recent risk analysis conducted 
by the Area ONAP for you.
    (b) To assess whether or not a recipient is making satisfactory 
progress in completing previously approved programs, we will measure 
actual progress against the most recent implementation schedule(s) for 
the recipient's program(s). We will do this assessment with our 
evaluation of the risk analysis and other relevant information, e.g., 
monitoring reports, which document or reflect a recipient's 
performance. We will determine that a recipient which is more than 
sixty days behind schedule is performing inadequately with respect to 
this aspect of grant administration.
    (c) If you have been found to be performing inadequately, the Area 
ONAP will determine whether you have corrected the deficiency or are 
following a schedule to correct performance to which you and the Area 
ONAP have agreed. In cases of previously documented deficient 
performance, the Area ONAP must determine that you have taken 
appropriate corrective action to improve your performance before the 
application due date.
    (d) The Area ONAP will inform in writing any potential applicant 
that has been determined not to meet this performance threshold no 
later than 30 days prior to the application due date. In its letter, 
the Area ONAP will specify what actions would have to be taken by the 
potential applicant to address the identified performance deficiency. 
If you have not met the performance threshold by the application 
submission deadline, we will not accept your application for rating and 
ranking.
    (2) Housing assistance. (a) If you have taken any action to prevent 
or obstruct the provision or operation of assisted housing for low and 
moderate income persons we will evaluate that action to determine if it 
constitutes inadequate performance by you. If you have established or 
joined an Indian Housing Authority (IHA), and this IHA has obtained 
housing assistance from HUD, we will take into consideration your 
performance in meeting your obligations and responsibilities to the IHA 
in the development and operation of housing units assisted under the 
United States Housing Act of 1937 in evaluating your housing assistance 
performance. This evaluation will include a review of your compliance 
with the provisions of the documents that created your relationship 
with the IHA and the requirements of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.). 
In addition, if you have designated another entity (a tribally 
designated housing entity [TDHE]) to be the recipient of Indian Housing 
Block Grant Assistance on your behalf, we will also consider in our 
evaluation your compliance with your agreement with the TDHE.
    (b) We will not hold you accountable for the poor performance of 
your IHA (or TDHE) unless we find this inadequate performance to be a 
direct result of your action or inaction. If you are a member of a 
multi-tribal IHA or are associated with a multi-tribal TDHE, we will 
judge you only on your individual performance and will not hold you 
accountable for the poor performance of other tribes that are members 
of the IHA or that are also associated with the TDHE.
    (c) If you have received ICDBG funds to provide 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 your 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 
that has been determined not to meet the housing assistance performance 
threshold no later than 30 days before the application deadline. 
    (iv) Audits. The thresholds described in paragraphs (3)(b)(ii) and 
(3)(b)(iii) of this section III.(A) require you to meet the following 
performance criteria:
    (1) You cannot have an outstanding ICDBG obligation to HUD or to an 
ICDBG program that is in arrears, or you must have agreed to a 
repayment schedule. If you have an outstanding ICDBG obligation that is 
in arrears, or have not agreed to a repayment schedule, you will be 
disqualified from the current competition and from subsequent 
competitions until your obligations are current. If a recipient that 
was current at the time of application submission becomes delinquent 
during the review period, we may reject the application.
    (2) You cannot have an overdue or unsatisfactory response to an 
audit finding pertaining specifically to an ICDBG program. If you have 
an overdue or unsatisfactory response to an audit finding, you will be 
disqualified from the current and subsequent competitions until you 
have taken final action necessary to close the audit finding. The Area 
ONAP Administrator may provide exceptions to this disqualification if 
you have made a good faith effort to clear the audit finding. When 
funds are due HUD or an ICDBG program as a result of a finding, the 
Area ONAP Administrator may grant an exception only if you have made a 
satisfactory arrangement to repay the debt 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 
your 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.

[[Page 8698]]

    (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                       10
         procedures.....................................
        (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
        (1) Maintenance and operation plan..............              15
        (2) Appropriate and effective design scale and                15
         cost...........................................
    (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                15
         cost...........................................
    (iii) Leveraging....................................              10
                                                         ---------------

[[Page 8699]]

 
        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. As an 
applicant, you should state your compliance or your intent to comply in 
your application.
    Document means to supply supporting written information and/or data 
in the application which satisfies the NOFA requirement.
    Leverage means resources that you 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 that 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) You may submit, before the application due date, a request for 
the approval of standards less stringent than Section 8 standards. If 
you submit the request with your application, you 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) You must 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). You must 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 you or on your behalf under the provisions of 
the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4101 et seq.). (If the IHP for the IHBG program year 
which coincides with the implementation of the ICDBG proposed project 
has not been submitted, you must provide an assurance that when 
submitted, the IHP will specifically reference the proposed housing 
category project).
    (b) Rehabilitation Thresholds and Grant Limits. (i) Thresholds. If 
you are applying for a housing rehabilitation grant, you must adopt 
rehabilitation standards and rehabilitation policies before you submit 
an application. You must submit these standards and policies with the 
application. You must 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

[[Page 8700]]

 
(3) Northern Plains.....................................          33,500
(4) Southwest...........................................          40,000
(5) Northwest...........................................          25,000
 

    (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.
    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) Your selection criteria which are included in your application 
give first priority to the neediest households. ``Neediest households'' 
means 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. The survey must include a definition of 
``suitable for rehabilitation.'' 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 you, the applicant, will assure that after rehabilitation 
the houses assisted will be in a standard condition as defined in this 
NOFA. In addition, these standards include specific requirements that 
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 you adopt 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 you adopt 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;
    (F) 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) Your 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. (You must include qualifications of 
the estimator in the application). You have documented costs of 
rehabilitation 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. You must submit the write-ups with the application. If 
national standards (e.g.,

[[Page 8701]]

the Uniform Building Code) have been locally adopted as the 
construction codes and requirements, they must be referenced. If you 
used locally developed and adopted codes and requirements, you must 
submit them. (15 points)
    (b) You have prepared cost estimates for each house to be 
rehabilitated to determine the total rehabilitation cost and have 
included the cost estimates in your application. Costs to rehabilitate 
each house are documented by a deficiency list. (12 points)
    (c) You have prepared cost estimates and have included them in your 
application but the estimates are based on surveys and not on 
individual house deficiency lists. (5 points)
    (d) You have not included cost estimates in your application or the 
basis for the cost 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)
    We will award points under this component in a manner consistent 
with the definition of ``Leverage'' included in this NOFA and the 
following breakdown:

------------------------------------------------------------------------
                 Non-ICDBG % 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 such as a preliminary plot plan 
or its equivalent that 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. A 
clear objective of the applicant must be to make the most effective and 
economic use of the land proposed for acquisition.
    (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. You had a preliminary 
investigation conducted by a qualified independent entity. Based on 
this investigation (which you must submit with your 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) Your application does not include evidence required for the 
award of 10 points. (0 points)
    (3) Availability/accessibility of supportive services and 
employment opportunities. The application includes documentation 
indicating 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. The 
application includes a documented commitment from households that they 
will move into the new housing to be built on the land to be acquired.

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 that indicates that the applicant will pay or guarantee 
that all taxes and fees on the land will be paid.
    (b) Your application includes documentation from the BIA that land 
can be taken into trust or the required governing body resolution. (5 
points)
    (c) Your application does not include either the assurance or the 
resolution or they are inadequate. (0 points)
    (6) Infrastructure commitment. (a) Your application includes a plan 
or

[[Page 8702]]

commitment for any infrastructure needed to support the housing to be 
built on the land to be acquired. 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) Your application includes financial commitments for all 
necessary infrastructure or includes documentation demonstrating that 
all necessary infrastructure is in place. (10 points)
    (c) The application includes a plan to provide all necessary 
infrastructure but you have not submitted all financial commitments 
required to implement the plan. (5 points)
    (d) The application does not include either a financial commitment 
or plan. (0 points)
    (7) The extent to which the site proposed for acquisition meets the 
housing needs of the applicant and is reasonably priced. Your 
application includes documentation indicating that you have examined 
and assessed the appropriateness of alternative sites and demonstrating 
that the site proposed for acquisition best meets the documented 
housing needs of tribal households. Your application must include 
comparable sales data that show 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 
CBDO. Eligible CBDOs are described in 24 CFR 1003.204(c). You must 
provide an assurance that you understand this requirement.
    (ii) You must include in the application, documentation supporting 
the following determinations: 
    (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) Before you submit an application for new housing construction 
projects, you must adopt construction standards and construction 
policies. You 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) You 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) Your application includes 
documentation which establishes that you were not served by an Indian 
Housing Authority (IHA), or if you were a member of an umbrella IHA, 
this IHA had not provided assistance to you in a substantial period, or 
the IHA that served the applicant had not received HUD Public and 
Indian Housing new construction assistance in a substantial period due 
to limited HUD appropriations. The period during which the IHA serving 
you had not received funding for inadequate or poor performance by you 
does not count towards the period 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 households'' means 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. These 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) Your application identifies 
households to be assisted and documents their income eligibility and 
household size. (5 points)
    (b) Your application does not identify households to be assisted 
or, if identified, does not document their income eligibility and 
household size. (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

[[Page 8703]]

dining room). You must submit the standards with your application.
    (b) You have adopted reasonable occupancy standards and they are 
included in your application. (10 points)
    (c) You have not adopted reasonable occupancy standards or did not 
include the standards in your application. (0 points)
    (2) Site Acceptability. (a) You (or the proposed beneficiary 
household) have control of the land upon which the houses will be 
built. Either: (i) 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 year of the date of the ICDBG 
approval notification. If the sites are not in trust by the date of 
ICDBG approval notification, you must provide documentation that they 
are in trust to the Area ONAP before ICDBG funds may be obligated for 
construction; or
    (ii) If you cannot provide documentation that the site(s) are in 
trust or will be taken into trust in the timeframe established, you 
have provided a formal tribal assurance. This assurance states that 
deed restrictions (or legal equivalents) will be imposed so that the 
owner of the site upon which the ICDBG assisted house will be built 
cannot sell the house without your permission and that the owner must 
reimburse you for the appraised value of the house at the time of sale 
(or the value of the ICDBG assistance provided, whichever is less). You 
must provide evidence that these restrictions have been recorded to the 
Area ONAP before you may obligate ICDBG funds for construction. You 
must treat any funds reimbursed to you as the result of future sales as 
program income as defined and regulated in 24 CFR 1003.503.
    (b) You had a preliminary investigation of the site(s) conducted by 
a qualified independent entity. 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. Your application includes 
documentation demonstrating that the proposed houses have been designed 
in a manner that 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. Your application 
describes any special design features, materials, or construction 
techniques which enhance energy conservation.

YES: 5 points
NO: 0 points

    (4) Housing Survey. (a) You have completed a survey of housing 
conditions and housing needs of your tribal members. You completed this 
survey within the twelve months before the application submission 
deadline (or if an earlier survey, you updated it during this period). 
You must submit the survey with your application. You included the 
following descriptive data 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? The survey must include 
a definition of ``suitable for rehabilitation.''
    (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) You submitted an acceptable survey. (10 points)
    (c) You did not submit a survey or the survey is not acceptable. (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. You must demonstrate how the proposed housing 
activities will be accomplished in an efficient and cost effective 
manner.
    (b) You have demonstrated that the proposed activities are cost 
effective. (5 points)
    (c) You have not demonstrated that the proposed activities are cost 
effective. (0 points)
    (iii) Rating Factor 3: Leveraging. (10 points)
    We will award points under this component in a manner consistent 
with the definition of ``Leverage'' included in this NOFA and the 
following breakdown:

------------------------------------------------------------------------
                 Non-ICDBG % 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
------------------------------------------------------------------------

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) Your application includes 
documentation demonstrating 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 that is critical 
to the continued existence or orderly development of the community. (20 
points)
    (c) The proposed project will fulfill a function that 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. You must 
include information demonstrating that income data were 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 demonstrating 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.

[[Page 8704]]

    (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, you 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 that 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.
    (ii) Rating Factor 2: Planning and Implementation. (30 points)
    (1) A viable plan for maintenance and operation. (a) If you are to 
assume responsibility for maintenance and operation of the proposed 
facility, you 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. You must include this plan and the adopting resolution in 
your 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 you will commit.
    (b) If an entity other than you commits to pay for maintenance and 
operation, you must include a letter of commitment that identifies the 
responsibilities the entity will assume in your application. You are 
not required to submit a maintenance and operations plan. If this 
entity is not an established organization or agency, this letter must 
also identify its financial ability to assume the indicated 
responsibilities. The Area ONAP will award points only if it is able to 
determine that the entity is financially able to assume the costs of 
maintenance and operation.
    (c) Your application includes an acceptable maintenance and 
operation plan and adopting resolution (or letter of commitment). (15 
points)
    (d) Your application does not include either the plan and 
resolution or the commitment letter or if included, they are not 
acceptable. (0 points)
    (2) An appropriate and effective design, scale and cost. (a) Your 
application includes information demonstrating that the proposed 
project is the most appropriate and cost effective approach to address 
the identified need. This information demonstrates that you have 
considered the use of existing facilities and resources, and 
alternatives, including method of implementation and cost. If only one 
approach is feasible (there are no alternatives to the proposed 
project), the application must include an explanation.
    (b) Your application includes the required information. (15 points)
    (c) Your application does not include the required information or, 
if included, it is unacceptable. (0 points)
    (iii) Rating Factor 3: Leveraging. (10 points)
    We will award points under this component in a manner consistent 
with the definition of ``Leverage'' included in this NOFA and the 
following breakdown:

------------------------------------------------------------------------
                 Non-ICDBG % 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. If you propose a facility that would 
provide health care services funded by the Indian Health Service (IHS), 
you must assure that the facility meets all applicable IHS facility 
requirements. We recognize 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) Your application includes 
documentation that the proposed building meets an essential community 
development need by providing space so that a service or function that 
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 that 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 that 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. Your 
application must include information demonstrating 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) Your application 
includes documentation demonstrating that the proposed building will be 
used to provide services or functions that are not currently being 
provided to service area beneficiaries or it will replace a building 
that does not meet health or safety standards that are currently being 
used to provide the service or function or it will replace a building 
that 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 that does not meet health or safety standards, your 
application must

[[Page 8705]]

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 you are to 
assume responsibility for the maintenance and operation of the proposed 
building, you must adopt a maintenance and operation plan that 
addresses maintenance, repair and replacement of items not covered by 
insurance, and that clearly identifies operating responsibilities and 
resources. You must include this plan and the adopting resolution in 
your 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 you will commit.
    (b) If an entity other than the applicant commits to pay for 
maintenance and operation, you must include a letter of commitment 
identifying the responsibilities the entity will assume in your 
application. You are not required to submit a maintenance and operation 
plan. If this entity is not an established organization or agency, this 
letter must also identify its financial ability to assume the indicated 
responsibilities. The Area ONAP will award points only if it is able to 
determine that the entity is financially able to assume the costs of 
maintenance and operation.
    (c) Your application includes an acceptable maintenance and 
operation plan and adopting resolution (or letter of commitment). (15 
points)
    (d) Your application does not include either the plan and 
resolution or the commitment letter, or if included, they are not 
acceptable. (0 points)
    (2) An appropriate and effective design, scale and cost. (a) Your 
application includes information demonstrating that the proposed 
building is the most appropriate and cost effective approach to address 
the identified need(s). This information demonstrates that you have 
considered the use of existing facilities and resources and 
alternatives, including method of implementation and cost. If only one 
approach is feasible (there are no alternatives to the proposed 
building), the application must include an explanation.
    (b) Your application includes the required information. (15 points)
    (c) Your application does not include the required information or, 
if included, it is unacceptable. (0 points)
    (iii) Rating Factor 3: Leveraging. (10 points)
    We will award points under this component based on the definition 
of ``Leverage'' included in this NOFA and the following breakdown:

------------------------------------------------------------------------
                 Non-ICDBG % 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 that 
addresses all of the following three elements (Maximum: 8 points):
    (a) You (or entity to be assisted) have 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)
    We will rate the project on the adequacy and quality of the 
information included in the application which addresses the following 
criteria: WE WILL NOT CONSIDER ANY PROJECT FOR FUNDING UNLESS IT 
RECEIVES AT LEAST MODERATE POINTS IN EACH OF THE FOLLOWING THREE RATING 
FACTORS.
    (1) Market analysis. (a) A feasibility/market analysis, generally 
not older than two years, identifying the market and demonstrating that 
the proposed activities are highly likely to capture a fair share of 
the market. You must submit the analysis with your application. 
(Maximum: 15 points)
    (b) A feasibility/market analysis identifying the market and 
demonstrating that the proposed activities are reasonably likely to 
capture a fair share of the market. You must submit the analysis with 
your application. (Moderate: 10 points)
    (c) Your submission does not meet the criteria for the award of 
moderate points. (Unsatisfactory: 0 points)
    (2) Management capacity. (a) You have identified a management team 
with qualifying specialized training or technical/managerial experience 
in the operation of a similar business. You must submit with your 
application job descriptions of key management positions as well as 
resumes showing qualifying specialized technical/managerial training or 
experience of the identified management team. (Maximum: 15 points)
    (b) You will hire a management team with qualifying general 
business training or experience if the grant is approved. You must 
submit with your application job descriptions of key management 
positions. (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) We will determine the 
financial viability of a project by analyzing financial and other 
project related

[[Page 8706]]

information. You must submit the following for all proposed projects:
    (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, you must 
also submit with your application financial statements for the most 
recent three year period for the business (financial statements include 
the balance sheet, income statement and statement of retained 
earnings). For start-up businesses that will not be owned by the 
recipient, you must also submit with your application current financial 
or net worth statements of principal business owners or officers.
    (b) The Area ONAP will review the information derived from the 
analysis and compare it 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 Morris Associates, Dun and Bradstreet, the 
Chamber of Commerce, etc. You may also use local standards. If you cite 
one of these standards, you must submit the appropriate data with your 
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. We will award points under this 
component in a manner consistent with the definition of ``Leverage'' 
included in this NOFA and the following breakdown.

------------------------------------------------------------------------
                 Non-ICDBG % 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) You must identify or include in your 
application 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. We will not count retained jobs 
unless you have provided clear evidence that these jobs would be lost 
without the project. You must identify the number and kind(s) of jobs 
expected to be available to low and moderate income persons.
    (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. You 
must submit a description of the planned training program with your 
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. You must submit your completed application (one 
originally signed and two copies) to the appropriate Area ONAP listed 
above. You may access any of the telephone numbers listed via TTY by 
calling the Federal Information Relay Service at 1-800-877-8339. To be 
eligible for consideration, your application must be received by or be 
submitted to the appropriate Area ONAP in accordance with the 
requirements set forth under APPLICATION DUE DATE above. You may submit 
only one application; however, an application may include more than one 
eligible project (e.g., housing and public facilities). In any event, 
the ICDBG grant amount requested may not total more than the grant 
ceiling. We will rate separately each project within your application.
    (B) Demographic data. You may submit data that are unpublished and 
not generally available in order to meet the requirements of this 
section. You 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. You must 
prepare and publish or post the community development statement portion 
of your application according to the citizen participation requirements 
of Sec. 1003.604.
    (D) Application Submission. Your application must 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;

[[Page 8707]]

    (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) Certification for a Drug-Free Workplace (form HUD 50070);
    (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
    (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.
    (10) If applicable, the demographic data certification described in 
Section IV(B) of the NOFA. The data accompanying the certification must 
identify the total number of persons benefiting from the project and 
the total number of low-and-moderate persons benefiting from the 
project. Supporting documentation should include a sample copy of a 
completed survey form and an explanation of the methods used to collect 
the data, and a listing of incomes by household.
    (11) If the application has been submitted by a tribal organization 
as defined in 24 CFR Section 1003.5(b), on behalf of an Indian tribe, 
band, group, or nation, you must submit concurring resolutions from 
these entities.
    (E) Documentation requirements for point award for leveraged 
resources.
    (1) General. For your own resources, you must include in your 
application a council resolution (or legal equivalent) that identifies 
and commits the resources. For resources to be provided by another 
entity, you must include in your application written verification of an 
application or request for the leveraged resources.
    (2) Resources contributed by a public agency, foundation, or other 
private party. (a) In addition to the requirement described in section 
IV.E.(1), above, for grants or other contributed resources from a 
public agency, foundation, or other private party, you must submit a 
written commitment, which may be contingent on approval of the ICDBG 
award, and it 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 
prevents the entity from making a firm funding commitment in the 30 
days, we will consider these resources in the award of points if the 
entity provides a written statement that identifies the project and the 
dollar amount under consideration, indicates that the entity has 
received the application or request for assistance from the ICDBG 
applicant, and states 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, we will establish a special condition 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, we will recapture the grant 
funds approved and will use them in accordance with the requirements of 
Sec. 1003.102.
    (d) The Area ONAP must receive the statement described in paragraph 
(c)(2)(ii) of this section 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, we 
will not award points for the proposed contribution.
    (e) If the proposed project still rates high enough to be approved, 
we will establish a pre-award condition that will require the applicant 
to provide evidence of firmly committed resources to cover the entire 
non-ICDBG project cost. If you do not meet this condition, we will not 
make the grant award.
    (3) Contributions of goods and services. In addition to the above 
requirements for point award, you must include in your application 
special documentation for certain contributions. We will consider the 
contribution of goods and services for point award if your application 
meets the applicable requirements listed above; if you demonstrate and 
we determine that the items or services are necessary to the actual 
development of the project; and you have submitted comparable cost and/
or time estimates that support the donation.
    (4) Contributions of land. We will consider land to be contributed 
for point award when its use and area are integral to the development 
of the project. In addition, you must verify the value of the land by 
any of the following means or methods and must include this 
documentation in your 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. We will not consider the contribution of 
indirect administrative costs as identified in OMB Circular A-87, 
attachment A, section F, as a leveraged resource for purposes of point 
award.
    (6) Operations and maintenance expenditures. We will not consider 
the contribution of resources to pay for the anticipated operations and 
maintenance costs of any proposed project to be leveraged resources for 
purposes of point award.

V. Clarifying Information

    After the application due date, Area ONAPs may not, consistent with 
24 CFR part 4, subpart B, consider unsolicited information from you. 
The Area ONAP may however, but is under no obligation to, contact you 
to clarify an item in the application. You 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. The Area ONAP will make any 
requests for clarifying information in writing and will specify the 
item, or items, that need clarification and a timeframe for response. 
Failure on your part to provide such requested information will result 
in the rejection of the application.

VI. Correction of Technical Deficiencies

    A technical deficiency is an error or oversight which, if 
corrected, would not

[[Page 8708]]

alter, either in a positive or negative fashion, the review and rating 
of an application. Examples of technical deficiencies include the 
failure to submit the proper certifications or the failure to have an 
original signature of an authorized official, as required, on an 
application form. As indicated under Section III(A)(2)(f) above, only 
successful applicants will be required to address technical 
deficiencies and this must be done before we make a grant award. If you 
do not provide the information necessary to address the deficiency 
within the time allowed, we will not award you the grant and will 
reject your application. The Area ONAP will notify you in writing and 
will describe the technical deficiency, what must be done to correct 
it, and the date by which you must submit this information. The Area 
ONAP will notify you by facsimile or by return receipt requested. Your 
response must be submitted (postmarked) by no later than the date 
established by the Area ONAP. The Area ONAP must provide you at least 
14 calendar days to respond to the request.

VII. Error and Appeals

    Rating panel judgments made within the provisions of this NOFA and 
the program regulations (24 CFR 1003) are not subject to claims of 
error. You 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 your 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.

VIII. 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 the 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), and a Finding of No 
Significant Impact (FONSI) is not required.
    (C) Recipient Compliance with Environmental Requirements. In 
accordance with 24 CFR 1003.605, a recipient must comply with the 
environmental review requirements of 24 CFR part 58, including 
limitations on the commitment of ICDBG or non-HUD funds on an ICDBG 
project before HUD approval of the Request for Release of Funds and 
Certification. If you commit or expend ICDBG or non-HUD funds on a 
project activity that requires environmental review before HUD approves 
your certification that the review is complete and your Request for the 
Release of Funds, ICDBG funding for the project may be denied.
    (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, 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 the 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.
    (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

[[Page 8709]]

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: February 11, 1999.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 99-4286 Filed 2-19-99; 8:45 am]
BILLING CODE 4210-33-P