[Federal Register Volume 64, Number 38 (Friday, February 26, 1999)]
[Notices]
[Pages 9618-9881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-4476]



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Part IV





Department of Housing and Urban Development





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Super Notice of Funding Availability (SuperNOFA) for HUD's Housing, 
Community Development and Empowerment Programs; Notice

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4410-N-01]


Super Notice of Funding Availability (SuperNOFA) for HUD's 
Housing, Community Development and Empowerment Programs

AGENCY: Office of the Secretary, HUD.

ACTION: Super Notice of Funding Availability (SuperNOFA) for HUD Grant 
Programs.

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

SUMMARY: This Fiscal Year 1999 Super Notice of Funding Availability 
(SuperNOFA) announces the availability of approximately $2.4 billion in 
HUD program funds covering 32 grant categories within programs operated 
and administered by the following HUD offices: the Office of Community 
Planning and Development (CPD); the Office of Housing-Federal Housing 
Administration (FHA); the Office of Public and Indian Housing; Office 
of Policy Development and Research; the Office of Fair Housing and 
Equal Opportunity; and the Office of Lead Hazard Control.
    The General Section of this SuperNOFA provides the application 
procedures and requirements that are applicable to all the programs. 
The Programs Section of this SuperNOFA provides a description of the 
specific programs for which funding is made available under this 
SuperNOFA and describes any additional procedures and requirements that 
are applicable to a specific program. Please be sure you read both the 
General Section and the Program Section of this SuperNOFA to ensure you 
respond to all the requirements for funding.

APPLICATION DUE DATES: The information in this APPLICATION DUE DATES 
section applies to all programs that are part of this SuperNOFA. You, 
the applicant, must submit a completed application to HUD no later than 
the application due date established for the program for which you are 
seeking funding. HUD will not accept for review and evaluation any 
applications sent by facsimile (fax).

ADDRESSES AND APPLICATION SUBMISSION PROCEDURES: Addresses. You, the 
applicant, must submit a complete application to the location 
identified in the Programs Section of this SuperNOFA. When submitting 
your application, please refer to the name of the program for which you 
are seeking funding.
    For Applications to HUD Headquarters. If your application is due to 
HUD Headquarters, you must send to the following address: Department of 
Housing and Urban Development, 451 Seventh Street, SW, Washington DC 
20410 (see the Program Chart or Programs Section for Room location and 
additional information regarding the addresses for application 
submission). Please make sure that you note the room number. The 
correct room number is very important to ensure that your application 
is not misdirected.
    For Applications to HUD Field Offices. If your application is 
required to be submitted to a HUD Field Office, please see the Programs 
Section for the exact office location for submission of your 
application.
    Applications Procedures. Mailed Applications. Your application will 
be considered timely filed if your application is postmarked on or 
before 12:00 midnight on the application due date and received by the 
designated HUD Office on or within ten (10) days of the application due 
date.
    Applications Sent by Overnight/Express Mail Delivery. If your 
application is sent by overnight delivery or express mail, your 
application will be timely filed if it is received before or on the 
application due date, or when you submit documentary evidence that your 
application was placed in transit with the overnight delivery service 
by no later than the application due date.
    Hand Carried Applications. Hand-carried to HUD Headquarters. If 
your application is required to be submitted to HUD Headquarters, and 
you arrange for the application to be hand carried, hand carried 
applications delivered before and on the application due date must be 
brought to the specified location at HUD Headquarters and room number 
between the hours of 8:45 am to 5:15 pm, Eastern time. Applications 
hand carried on the application due date will be accepted in the South 
Lobby of the HUD Headquarters Building at the above address from 5:15 
pm until 12:00 midnight, Eastern time. This deadline date is firm. 
Please make appropriate arrangements to arrive at the HUD Headquarters 
Building before 12:00 midnight on the application due date.
    Hand-carried to HUD Field Office. If your application is required 
to be submitted to a HUD Field Office, your application must be 
delivered to the appropriate HUD Field Office in accordance with the 
instructions specified in the Programs Section of the SuperNOFA. A hand 
carried application will be accepted at the specified HUD Field Office 
during normal business hours before the application due date. On the 
application due date, business hours will be extended to 6:00 p.m. 
local time. (Please see Appendix A to this SuperNOFA listing the hours 
of operations for the HUD Field Offices.) Please be sure to arrive at 
the HUD Field Office with adequate time to submit the application 
before the 6:00 pm deadline by the application due date.

COPIES OF APPLICATIONS TO HUD OFFICES: The Programs Section of this 
SuperNOFA may specify that to facilitate the processing and review of 
your application, a copy of the application also must be sent to an 
additional HUD location (for example, a copy to the HUD Field Office if 
the original application is to be submitted to HUD Headquarters, or a 
copy to HUD Headquarters, if the original application is to be 
submitted to a HUD Field Office). Please follow the directions of the 
Programs Section to ensure that you submit your application to the 
proper location. For some programs, HUD requests additional copies in 
order to expeditiously review your application, and to ensure that all 
reviewers receive complete applications to review. HUD appreciates your 
assistance in providing the copies. Please note that for those 
applications for which copies are to be submitted to the Field Offices 
and HUD Headquarters, timeliness of submission will be based on the 
time your application is received at HUD Headquarters.

FOR APPLICATION KITS, FURTHER INFORMATION AND TECHNICAL ASSISTANCE: The 
information in this section is applicable to all programs that are part 
of this SuperNOFA.
    For Application Kits and SuperNOFA User Guide. HUD is pleased to 
provide you with the 1999 application kits and/or a guidebook to all 
HUD programs that are part of this SuperNOFA. These application kits 
are designed to guide you through the application process and ensure 
that your application addresses all requirements for the program 
funding you are seeking. Please note that if there is a discrepancy 
between information provided in the application kit and the information 
provided in the published SuperNOFA, the information in the published 
SuperNOFA prevails. Therefore, please be sure to review your 
application submission against the requirements in the SuperNOFA. When 
requesting an application kit, please refer to the name of the program 
of the application kit you are interested in receiving. Please be sure 
to provide your name, address (including zip code), and telephone 
number (including area code). To ensure sufficient time to prepare your 
application, requests for application kits should be made immediately.

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    The SuperNOFA Information Center (1-800-HUD-8929) can provide you 
with assistance, application kits, and guidance in determining which 
HUD Office(s) should receive a copy of your application. Persons with 
hearing or speech impairments may call the Center's TTY number at 1-
800-483-2209. Additionally, you can obtain information on this 
SuperNOFA and application kits for this SuperNOFA through the HUD web 
site on the Internet at http://www.hud.gov.
    Consolidated Application Submissions. If you, the applicant, would 
like to apply for funding under more than one program in this 
SuperNOFA, you need only submit one originally signed SF-424 and one 
set of original signatures for the other standard assurances and 
certifications, accompanied by the matrix that is provided in each 
application kit. As long as you submit one originally signed set of 
these documents with an application, you need only submit copies of 
these documents with any additional application you submit. Your 
application should identify the program for which you have submitted 
the original signatures for the standard assurances and certifications. 
Additionally, the Programs Section may specify additional forms, 
certifications, assurances, or other information that may be required 
for a particular program in this SuperNOFA.
    For Further Information. For answers to your questions about this 
SuperNOFA, you have several options. You may call, during business 
hours, the SuperNOFA Information Center at 1-800-HUD-8929, or you may 
contact the HUD Office or Processing Center serving your area at the 
telephone number listed in the application kit for the program in which 
you are interested. If you are a person with a hearing or speech 
impairment you may call the Center's TTY number at 1-800-HUD-2209. You 
may also obtain information on this SuperNOFA and application kits for 
this SuperNOFA through the HUD web site on the Internet at http://
www.hud.gov.
    For Technical Assistance. Before the application due date, HUD 
staff will be available to provide you with general guidance and 
technical assistance about this SuperNOFA. HUD staff, however, are not 
permitted to assist in preparing the application. Following selection 
of applicants, but before awards are made, HUD staff are available to 
assist in clarifying or confirming information that is a prerequisite 
to the offer of an award or Annual Contributions Contract (ACC) by HUD.

Hud's Fiscal Year 1999 SuperNOFA Process

Background: The Introduction of the SuperNOFA--the FY 98 SuperNOFA

    In Fiscal Year 1998, HUD introduced its first SuperNOFA. HUD's FY 
1998 SuperNOFA represented a marked departure from, and HUD believes a 
significant improvement over, HUD's past approach to the funding 
process. Before the FY 1998 SuperNOFA, HUD had issued as many as 40 
separate NOFAs. These 40 NOFAs had widely varying rules and application 
processing requirements, and were published at various times throughout 
the fiscal year. This individual program approach to funding, with 
different publication schedules, did not encourage and, at times, 
unintentionally interfered with local efforts directed at comprehensive 
planning as well as development of comprehensive local solutions. 
Additionally, the old approach seemed to require communities to respond 
to HUD's needs instead of HUD responding to local needs.
    In his first year as Secretary of HUD, Secretary Andrew Cuomo 
immediately sought to change this outdated approach to funding. 
Secretary Cuomo brought to the leadership of HUD the experience of 
successfully implementing a consolidated planning process in HUD's 
community development programs. As Assistant Secretary for Community 
Planning and Development, Secretary Cuomo consolidated the planning, 
application, and reporting requirements of several community 
development programs. The Consolidated Plan rule, published in 1995, 
established a renewed partnership among HUD, State, and local 
governments, public and private agencies, tribal governments, and the 
general citizenry by empowering field staff to work with other entities 
in fashioning creative solutions to community problems.
    HUD's FY 1998 SuperNOFA promoted HUD's objective, under the 
direction of Secretary Cuomo, of improving customer service and 
providing the necessary tools for revitalizing communities and 
improving the lives of people within those communities. The SuperNOFA 
increased the ability of applicants to consider and apply for funding 
under a wide variety of HUD programs in response to a single NOFA. In 
addition to applicants, HUD believes that everyone interested in HUD's 
grant programs can benefit from having this information made available 
in one document, and that having the information on available funding 
one time will facilitate local planning and coordination.

Changes Made in the SuperNOFA Process for FY 1999

    One SuperNOFA. For Fiscal Year 1999, HUD is taking the next step of 
improving its funding process by issuing one single SuperNOFA. In FY 
1998, HUD issued three SuperNOFAs:
    (1) The SuperNOFA for HUD's Housing and Community Development 
Programs;
    (2) The SuperNOFA for HUD's Economic Development and Empowerment 
Programs; and
    (3) The SuperNOFA for HUD's Targeted Housing and Homeless 
Assistance Programs.
    HUD's FY 1999 SuperNOFA consolidates the programs in these three 
SuperNOFAs into one SuperNOFA--the SuperNOFA for HUD's Housing, 
Community Development and Empowerment Programs. The housing component 
of this SuperNOFA encompasses many of HUD's housing programs, including 
targeted housing and homeless assistance. The community development 
component of this SuperNOFA encompasses HUD's economic development 
programs, and the empowerment component encompasses HUD's youthbuild 
and self-help programs.
    Plain Language. In addition to increased consolidation, HUD strived 
to make the FY 1999 SuperNOFA simpler and easier to understand. On June 
1, 1998, President Clinton issued a memorandum to all Federal agencies 
that directs agencies to use plain language in all of their documents. 
HUD prepared its FY 1999 SuperNOFA to comply with the plain language 
principles. These principles include using common, everyday words 
(except for necessary technical terms), the active voice and short 
sentences.
    Earlier Publication and More Time to Prepare Applications. Finally, 
HUD is publishing its SuperNOFA earlier than in FY 1998. By publishing 
earlier in the Federal Fiscal Year, HUD can provide you, the applicant, 
more time to prepare and submit your SuperNOFA application(s).
    Program Changes to Note: (1) HOPWA-TA. This year technical 
assistance under the Housing Opportunities for Persons with AIDS 
(HOPWA) has been consolidated into the Community Development Technical 
Assistance (CD-TA) Program section of the SuperNOFA. If you are 
interested in applying for this program, please see the CD-TA Program 
section.
    (2) Youth Sports Program. This year, youth sports activities are 
eligible under

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the PIH Drug Elimination Grant Program.
    (3) Possible Formula Funding for Public Housing Drug Elimination 
Program. On February 18, 1999, HUD published in the Federal Register an 
Advance Notice of Proposed Rulemaking (ANPR) announcing HUD's intention 
to develop, through proposed rulemaking, a formula allocation funding 
for HUD's Public Housing Drug Elimination Program. The February 18, 
1999 ANPR solicits comments in advance of this rulemaking on a method, 
components of a method, or methods that would result in reliable and 
equitable funding to public housing agencies with drug elimination 
programs and ensure that this funding is allocated to agencies meeting 
certain performance standards. If this rulemaking is completed before 
the application due date for the Public Housing Drug Elimination 
grants, HUD will publish a notice in the Federal Register advising the 
public of the withdrawal of the Public Housing Drug Elimination Program 
sections of this SuperNOFA, and advising that funds will be allocated 
through a formula.

Similarities Between FY 1998 and FY 1999 SuperNOFAs

    The FY 1999 SuperNOFA, like the FY 1998 SuperNOFA, places heavy 
emphasis on the coordination of activities to provide:
    (1) Greater flexibility and responsiveness in meeting local housing 
and community development needs, and
    (2) Greater flexibility to applicants to determine what HUD program 
resources best fit the community's needs, as identified in local 
Consolidated Plans and Analysis of Impediments to Fair Housing Choice 
(``Analysis of Impediments'' (AI)).
    The FY 1999 SuperNOFA is designed to:
     Simplify the application process;
     Promote effective and coordinated use of program funds in 
communities;
     Reduce duplication in the delivery of services and 
economic development and empowerment programs;
     Allow applicants to seek to deliver a wider, more 
integrated array of services; and
     Improve the system for potential grantees to be aware of, 
and compete for program funds.
    Once again, HUD strongly encourages applicants to work together to 
coordinate and, to the maximum extent possible, join their activities 
to form a seamless and comprehensive program of assistance to meet 
identified needs in their communities. This coordination also should 
help applicants jointly address barriers to fair housing and equal 
opportunity that have been identified in the community's Consolidated 
Plan and Analysis of Impediments in the geographic area(s) in which 
they are seeking assistance.
    As part of the simplification of this funding process, and to avoid 
duplication of effort, the SuperNOFA provides for consolidated 
applications for several of the programs that are part of this 
SuperNOFA. HUD programs that provide assistance for, or complement, 
similar activities (for example, the Continuum of Care programs and CPD 
Technical Assistance programs) have a consolidated application that 
reduces the administrative and paperwork burden applicants would 
otherwise encounter in submitting a separate application for each 
program. The Program Chart in this introductory section of the 
SuperNOFA identifies the programs that have been consolidated and for 
which a consolidated application is made available to eligible 
applicants. Eligible applicants are able, as they have been in the 
past, to apply for funding under as few as one or as many as all 
programs for which they are eligible.
    The specific statutory and regulatory requirements of the programs 
that are part of this SuperNOFA continue to apply to each program. The 
SuperNOFA will identify, where necessary, the statutory requirements 
and differences applicable to the specific programs. Please pay careful 
attention to the individual program requirements that are identified 
for each program. Also, you will note that not all applicants are 
eligible to receive assistance under all programs identified in this 
SuperNOFA.
    The SuperNOFA is divided into two major sections. The General 
Section of the SuperNOFA describes the procedures and requirements that 
are applicable to all applications. The Programs Section of the 
SuperNOFA describes each program that is part of this SuperNOFA. For 
each program, the Programs Section describes the eligible applicants, 
eligible activities, factors for award, and any additional requirements 
or limitations that apply to the program.
    Please read carefully both the General Section and the Programs 
Section of the SuperNOFA for the program(s) to which you are applying. 
Your careful reading will ensure that you apply for program funding for 
which your organization is eligible to receive funds and you fulfill 
all the requirements for that program(s).

The Programs of This SuperNOFA and the Amount of Funds Allocated

    The programs that are part of this SuperNOFA are identified in the 
chart below. The approximate available funds for each program are 
expected funding levels based on appropriated funds. In the event HUD 
recaptures funds or other funds become available for any program, HUD 
reserves the right to increase the available program funding amounts by 
the amount available.
    The chart also includes the application due date for each program, 
the OMB approval number for the information collection requirements 
contained in the specific program, and the Catalog of Federal Domestic 
Assistance (CFDA) number.

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    Paperwork Reduction Act Statement. The information collection 
requirements in this SuperNOFA have been approved by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3520). The chart shown above provides the OMB approval 
number for each program that is part of this SuperNOFA. Where the chart 
notes that an OMB number is pending, this means that HUD has submitted 
the information to OMB to obtain an approval number and HUD's request 
for the number is pending. As soon as HUD receives the approval number, 
the number will be published in the Federal Register and provided to 
the SuperNOFA Information Center. Under the Paperwork Reduction Act, 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.

General Section of the SuperNOFA

I. Authority; Purposes of the FY 1999 SuperNOFA; Funding Amount; 
Eligible Applicants and Eligible Activities

(A) Authority
    HUD's authority for making funding under this SuperNOFA is the 
Fiscal Year 1999 Department 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) (FY 1999 HUD 
Appropriations Act).
(B) Purposes
    The purposes of this SuperNOFA are to:
    (1) Make funding available to empower communities and residents. 
The funding made available by this SuperNOFA will assist community 
residents, particularly the poor and disadvantaged, to develop viable 
communities and provide decent housing for all citizens, without 
discrimination.
    (2) Simplification of the application process for funding under HUD 
programs. This year's SuperNOFA continues to provide a single, uniform 
set of rating factors and submission requirements. This year's 
SuperNOFA also allows, as did last year's, for you, the applicant, to 
apply for more than one program with a single application.
    (3) Promote comprehensive approaches to housing and community 
development. Through the SuperNOFA process, HUD encourages you, the 
applicant, to focus on the interrelationships that exist in a community 
and in HUD's funding programs, and to build community-wide efforts that 
coordinate the resources of multiple applicants and programs. The needs 
and problems of a community rarely, if ever, stand in isolation from 
each other. Due to this fact, it is very difficult to address these 
problems and to provide opportunities to use existing community 
resources in a piecemeal fashion. To successfully address community 
needs and solve community problems, and to take advantage of existing 
resources, HUD encourages members of a community to join together and 
pool all available resources in a common, coordinated effort. In 1998, 
HUD began structuring its funding process to help its community 
partners take this coordinated, holistic approach. Further, by making 
all of HUD's competitive funding available in one document, HUD allows 
you, the applicant, to be able to relate the activities proposed for 
funding under this SuperNOFA to the community's Consolidated Plan and 
Analysis of Impediments to Fair Housing Choice.
(C) Funding Available
    As noted in the Introduction Section to the SuperNOFA, the HUD 
programs that are part of this SuperNOFA are allocated amounts based on 
appropriated funds. If HUD recaptures funds in any program, HUD 
reserves the right to increase the available funding amounts by the 
amount of funds recaptured.
(D) Eligible Applicants and Eligible Activities
    The Programs Section of the SuperNOFA describes the eligible 
applicants and eligible activities for each program.

II. Requirements and Procedures Applicable to All Programs

    Except as may be modified in the Programs Section of this 
SuperNOFA, or as noted within the specific provisions of this Section 
II, the principles listed below apply to all programs that are part of 
this SuperNOFA. Please be sure to read the Programs Section of the 
SuperNOFA for additional requirements or information.
(A) Statutory Requirements
    To be eligible for funding under this SuperNOFA, you, the 
applicant, must meet all statutory and regulatory requirements that are 
applicable to the program or programs for which you are seeking 
funding. If you need copies of the program regulations, they are 
available from the SuperNOFA Information Center or through the Internet 
at the HUD web site located at http://www.HUD.gov. Among the reasons 
that HUD may reject an application from further funding consideration 
is if the activities or projects proposed in the application are not 
eligible activities and projects, or (with the exception of the Section 
202 and 811 programs) HUD may eliminate the ineligible activities from 
funding consideration and reduce the grant amount accordingly.
(B) Threshold Requirements--Compliance With Fair Housing and Civil 
Rights Laws.
    With the exception of Federally recognized Indian tribes, all 
applicants and their subrecipients must comply with all Fair Housing 
and civil rights laws, statutes, regulations and executive orders as 
enumerated in 24 CFR 5.105(a). If you are a Federally recognized Indian 
tribe, you must comply with the Age Discrimination Act of 1975, section 
504 of the Rehabilitation Act of 1973, and the Indian Civil Rights Act.
    If you, the applicant--
    (1) Have been charged with a systemic violation of the Fair Housing 
Act by the Secretary alleging ongoing discrimination;
    (2) Are a defendant in a Fair Housing Act lawsuit filed by the 
Department of Justice alleging an ongoing pattern or practice of 
discrimination; or
    (3) Have received a letter of noncompliance findings under Title 
VI, Section 504, or Section 109,--
    HUD will not rank and rate your application under this SuperNOFA if 
the charge, lawsuit, or letter of findings has not been resolved to the 
satisfaction of the Department before the application deadline stated 
in the individual program NOFA. HUD's decision regarding whether a 
charge, lawsuit, or a letter of findings has been satisfactorily 
resolved will be based upon whether appropriate actions have been taken 
to address allegations of ongoing discrimination in the policies or 
practices involved in the charge, lawsuit, or letter of findings.
(C) Additional Nondiscrimination Requirements
     You, the applicant and your subrecipients, must comply with the 
Americans with Disabilities Act, and Title IX of the Education 
Amendments Act of 1972.
(D) Affirmatively Furthering Fair Housing
    Unless otherwise specified in the Programs Section of this 
SuperNOFA, if you are a successful applicant, you will

[[Page 9628]]

have a duty to affirmatively further fair housing. Again, except as may 
be provided otherwise in the Programs Section of this SuperNOFA, you, 
the applicant, should include in your application or work plan the 
specific steps that you will take to:
    (1) Address the elimination of impediments to fair housing that 
were identified in the jurisdiction's Analysis of Impediments (AI) to 
Fair Housing Choice;
    (2) Remedy discrimination in housing; or
    (3) Promote fair housing rights and fair housing choice.
    Further, you, the applicant, have a duty to carry out the specific 
activities provided in your responses to the SuperNOFA rating factors 
that address affirmatively furthering fair housing. Please see the 
Programs Section of this SuperNOFA for further information.
(E) Economic Opportunities for Low and Very Low-Income Persons (Section 
3).
    Certain programs in this SuperNOFA require recipients of assistance 
to comply with section 3 of the Housing and Urban Development Act of 
1968, 12 U.S.C. 1701u (Economic Opportunities for Low and Very Low-
Income Persons in Connection with assisted Projects) and the HUD 
regulations at 24 CFR part 135, including the reporting requirements 
subpart E. Section 3 requires recipients to ensure that, to the 
greatest extent feasible, training, employment and other economic 
opportunities will be directed to (1) low and very low income persons, 
particularly those who are recipients of government assistance for 
housing and (2) business concerns which provide economic opportunities 
to low and very low income persons. As noted in the Programs Section of 
this SuperNOFA, Section 3 is applicable to the following programs:
    1. Historically Black Colleges and Universities (HBCU);
    2. Hispanic Serving Institutions Assisting Communities (HSIAC);
    3. Lead-Based Paint Hazard Control;
    4. Mold and Moisture Control in Inner City Housing Program;
    5. HOPE VI Public Housing Revitalization;
    6. Public Housing Drug Elimination Program (PHDEP);
    7. Public Housing Drug Elimination Program--New Approaches
    8. Multifamily Housing Drug Elimination;
    9. Economic Development Initiative (EDI);
    10. Brownfields Economic Development Initiative (BEDI);
    11. Self-Help Homeownership Opportunity Program (SHOP);
    12. Youthbuild;
    13. Continuum of Care Homeless Assistance Programs;
    14. Housing Opportunities for Persons with AIDS (HOPWA);
    15. Section 202 Supportive Housing for the Elderly; and
    16. Section 811 Supportive Housing for Persons with Disabilities.
(F) Relocation
    Any person (including individuals, partnerships, corporations or 
associations) who moves from real property or moves personal property 
from real property directly (1) because of a written notice to acquire 
real property in whole or in part, or (2) because of the acquisition of 
the real property, in whole or in part, for a HUD-assisted activity is 
covered by Federal relocation statute and regulations. Specifically, 
this type of move is covered by the acquisition policies and procedures 
and the relocation requirements of the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 1970, as amended (URA), 
and the implementing governmentwide regulation at 49 CFR part 24. The 
relocation requirements of the URA and the governmentwide regulations 
cover any person who moves permanently from real property or moves 
personal property from real property directly because of rehabilitation 
or demolition for an activity undertaken with HUD assistance.
(G) Forms, Certifications and Assurances
    You, the applicant, are required to submit signed copies of the 
standard forms, certifications, and assurances listed in this section, 
unless the requirements in the Programs Section specifies otherwise. 
Additionally, the Programs Section may specify additional forms, 
certifications, assurances or other information that may be required 
for a particular program in this SuperNOFA. As part of HUD's continuing 
efforts to improve the SuperNOFA process, several of the required 
standard forms have been simplified this year. The standard forms, 
certifications, and assurances are as follows:
    (1) Standard Form for Application for Federal Assistance (SF-424);
    (2) Standard Form for Budget Information--Non-Construction Programs 
(SF-424A) or Standard Form for Budget Information-Construction Programs 
(SF-424C), as applicable;
    (3) Standard Form for Assurances--Non-Construction Programs (SF-
424B) or Standard Form for Assurances--Construction Programs (SF-424D), 
as applicable;
    (4) Drug-Free Workplace Certification (HUD-50070);
    (5) Certification and Disclosure Form Regarding Lobbying (SF-LLL); 
(Tribes and tribally designated housing entities (TDHEs) established by 
an Indian tribe as a result of the exercise of the tribe's sovereign 
power are not required to submit this certification. Tribes and TDHEs 
established under State law are required to submit this certification.)
    (6) Applicant/Recipient Disclosure Update Report (HUD-2880);
    (7) Certification that the applicant will comply with the 
requirements of the Fair Housing Act, Title VI of the Civil Rights Act 
of 1964, section 504 of the Rehabilitation Act of 1973, and the Age 
Discrimination Act of 1975, and will affirmatively further fair 
housing. CDBG recipients applying for funds under title I of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) 
also must certify to compliance with section 109 of the Housing and 
Community Development Act. Federally recognized Indian tribes must 
certify that they will comply with the requirements of the Age 
Discrimination Act of 1975, section 504 of the Rehabilitation Act of 
1973, and the Indian Civil Rights Act.
    (8) Certification required by 24 CFR 24.510. (The provisions of 24 
CFR part 24 apply to the employment, engagement of services, awarding 
of contracts, subgrants, or funding of any recipients, or contractors 
or subcontractors, during any period of debarment, suspension, or 
placement in ineligibility status, and a certification is required.)
(H) OMB Circulars
    Certain OMB circulars also apply to this SuperNOFA. The policies, 
guidance, and requirements of OMB Circular No. A-87 (Cost Principles 
Applicable to Grants, Contracts and Other Agreements with State and 
Local Governments), OMB Circular No. A-122 (Cost Principles for 
Nonprofit Organizations), 24 CFR part 84 (Grants and Agreements with 
Institutions of Higher Education, Hospitals, and other Non-Profit 
Organizations) and 24 CFR part 85 (Administrative Requirements for 
Grants and Cooperative Agreements to State, Local, and Federally 
recognized Indian tribal governments) may apply to the award, 
acceptance and use of assistance under the programs of this SuperNOFA, 
and to the remedies for noncompliance, except when inconsistent with 
the provisions of the FY 1999 HUD Appropriations Act, other Federal 
statutes or the provisions of this

[[Page 9629]]

SuperNOFA. Compliance with additional OMB Circulars may be specified 
for a particular program in the Programs Section of the SuperNOFA. 
Copies of the OMB Circulars may be obtained from EOP Publications, Room 
2200, New Executive Office Building, Washington, DC 10503, telephone 
(202) 395-7332 (this is not a toll free number).
(I) Environmental Requirements
    If you become a grantee under one of the programs in this SuperNOFA 
that assist physical development activities or property acquisition, 
you are generally prohibited from acquiring, rehabilitating, 
converting, leasing, repairing or constructing property, or committing 
or expending HUD or non-HUD funds for these types of program 
activities, until one of the following has occurred:
    (1) HUD has completed an environmental review in accordance with 24 
CFR part 50; or
    (2) For programs subject to 24 CFR part 58, HUD has approved a 
grantee's Request for Release of Funds (HUD Form 7015.15) following a 
Responsible Entity's completion of an environmental review.
    You, the applicant, should consult the Programs Section of the 
SuperNOFA for the applicable program to determine the procedures for, 
timing of, and any exclusions from environmental review under a 
particular program. For applicants applying for funding under the 
Sections 202 or 811 Programs, please note the environmental review 
requirements for these programs.
(J) Conflicts of Interest
    If you are a consultant or expert who is assisting HUD in rating 
and ranking applicants for funding under this SuperNOFA, you are 
subject to 18 U.S.C. 208, the Federal criminal conflict of interest 
statute, and the Standards of Ethical Conduct for Employees of the 
Executive Branch regulation published at 5 CFR part 2635. As a result, 
if you have assisted or plan to assist applicants with preparing 
applications for this SuperNOFA, you may not serve on a selection panel 
and you may not serve as a technical advisor to HUD for this SuperNOFA. 
All individuals involved in rating and ranking this SuperNOFA, 
including experts and consultants, must avoid conflicts of interest or 
the appearance of conflicts. Individuals involved in the rating and 
ranking of applications must disclose to HUD's General Counsel or HUD's 
Ethic Law Division the following information if applicable: the 
selection or non-selection of any applicant under this SuperNOFA will 
affect the individual's financial interests, as provided in 18 U.S.C. 
208; or the application process involves a party with whom the 
individual has a covered relationship under 5 CFR 2635.502. The 
individual must disclose this information prior to participating in any 
matter regarding this SuperNOFA. If you have questions regarding these 
provisions or if you have questions concerning a conflict of interest, 
you may call the Office of General Counsel, Ethics Law Division, at 
202-708-3815 and ask to speak to one of HUD's attorneys in this 
division.

III. Application Selection Process

(A) Rating Panels
    To review and rate your applications, HUD may establish panels. 
These panels may include persons not currently employed by HUD. HUD may 
include these non-HUD employees to obtain certain expertise and outside 
points of view, including views from other Federal agencies.
    (1) Rating. HUD will evaluate and rate all applications for funding 
that meet the threshold requirements and rating factors for award 
described in this SuperNOFA. The rating of you, as the ``applicant,'' 
or of your organization, ``the applicant's organization and staff,'' 
for technical merit or threshold compliance will include any sub-
contractors, consultants, sub-recipients, and members of consortia 
which are firmly committed to the project.
    (2) Ranking. HUD will rank applicants within each program (or, for 
Continuum of Care applicants, across the three programs identified in 
the Continuum of Care section of this SuperNOFA). HUD will rank 
applicants only against other applicants that applied for the same 
program funding. Where there are set-asides within a program 
competition, you, the applicant, only will compete against applicants 
in the same set-aside competition.
(B) Threshold Requirements
    HUD will review your application to determine whether your 
application meets all of the threshold requirements described in 
Section II(B), above. Only if your application meets all of the 
threshold requirements will it be eligible to be rated and ranked.
(C) Factors for Award Used To Evaluate and Rate Applications
    For each program that is part of this SuperNOFA, the points awarded 
for the rating factors total 100. Depending upon the program for which 
you the applicant seek funding, the program may provide for up to four 
bonus points as provided in paragraphs (1) and (2) of this Section 
III(C).
    (1) Bonus Points. The SuperNOFA provides for the award of up to two 
bonus points for eligible activities/projects that the applicant 
proposes to be located in high performing federally designated 
Empowerment Zones (EZs) or Enterprise Communities (ECs). To be eligible 
to receive the two bonus points, you must certify that the proposed 
activities/projects: (a) will be located in a Federally designated 
Empowerment Zone or Enterprise Community and will serve residents of 
the EZ/EC; and (b) are consistent with the strategic plan of the EZ/EC. 
If you provide this certification and HUD determines that the area is a 
high performing EZ/EC, as announced in HUD's list to be published in 
the Federal Register in March 1999, you will be awarded the two points. 
A listing of the high performing federally designated EZs/ECs will be 
available from the SuperNOFA Information Center, or through the HUD web 
site on the Internet at http://www.HUD.gov, as well as in the Federal 
Register.
    (2) Court-Ordered Consideration. For any application submitted by 
the City of Dallas, Texas, for funds under this SuperNOFA for which the 
City of Dallas is eligible to apply, HUD will consider the extent to 
which the strategies or plans in the city's application or applications 
will be used to eradicate the vestiges of racial segregation in the 
Dallas Housing Authority's low income housing programs. The City of 
Dallas should address the effect, if any, that vestiges of racial 
segregation in Dallas Housing Authority's low income housing programs 
have on potential participants in the programs covered by this NOFA, 
and identify proposed actions for remedying those vestiges. HUD may add 
up to 2 points to the score based on this consideration. This special 
consideration results from an order of the U.S. District Court for the 
Northern District of Texas, Dallas, Division. (This Section III(C)(2) 
is limited to applications submitted by the City of Dallas.)
    (3) The Five Standard Rating Factors. Additional details about the 
five rating factors listed below, and the maximum points for each 
factor, are provided in the Programs Section of the SuperNOFA. You, the 
applicant, should carefully read the factors for award as described in 
the Programs Section of the SuperNOFA. HUD has established these five 
factors as the basic factors for award in every program that is part of 
this SuperNOFA. For a specific HUD program, however, HUD may have 
modified these factors to take into account specific program needs, or 
statutory or regulatory limitations imposed on a program. The standard

[[Page 9630]]

factors for award, except as modified in the program area section are:

Factor 1: Capacity of the Applicant and Relevant Organizational Staff
Factor 2: Need/Extent of the Problem
Factor 3: Soundness of Approach
Factor 4: Leveraging Resources
Factor 5: Comprehensiveness and Coordination

The Continuum of Care Homeless Assistance Programs have only two 
factors that receive points: Need and Continuum of Care.
(D) Negotiation
    After HUD has rated and ranked all applications and has made 
selections, HUD may require, depending upon the program, that all 
winners participate in negotiations to determine the specific terms of 
the grant agreement and budget. In cases where HUD cannot successfully 
conclude negotiations with a selected applicant or a selected applicant 
fails to provide HUD with requested information, an award will not be 
made to that applicant. In this instance, HUD may offer an award to the 
next highest ranking applicant, and proceed with negotiations with the 
next highest ranking applicant.
(E) Adjustments to Funding
    (1) HUD reserves the right to fund less than the full amount 
requested in your application to ensure the fair distribution of the 
funds and to ensure that the purposes of a specific program are met.
    (2) HUD may choose not to fund any portion of your application that 
is not eligible for funding under specific program statutory or 
regulatory requirements, or which do not meet the requirements of this 
SuperNOFA or which may be duplicative of other funded programs or 
activities from previous years' awards. HUD may choose to fund only the 
eligible portions of your application.
    (3) If funds remain after funding the highest ranking applications, 
HUD may fund part of the next highest ranking application in a given 
program. If you, the applicant, turn down the award offer, HUD will 
make the same determination for the next highest ranking application. 
If funds remain after all selections have been made, remaining funds 
may be available for other competitions for each program where there is 
a balance of funds.
    (4) In the event HUD commits an error that, when corrected, would 
result in selection of an otherwise eligible applicant during the 
funding round of this SuperNOFA, HUD may select that applicant when 
sufficient funds become available.
(F) Performance and Compliance Actions of Grantees
    HUD will measure and address the performance and compliance actions 
of grantees in accordance with the applicable standards and sanctions 
of their respective programs.

IV. Application Submission Requirements

    As HUD discussed earlier in the introductory section of this 
SuperNOFA, part of the simplification of this funding process is to 
reduce the duplication of effort that has been required of applicants 
in the past. Before the SuperNOFA process, many of HUD's applicants 
were required to complete and submit similar applications for HUD 
funded programs. As the Program Chart above shows, the FY 1999 
SuperNOFA provides, as did the FY 1998 SuperNOFA, for consolidated 
applications for several of the programs for which funding is available 
under this SuperNOFA.

V. Corrections to Deficient Applications

    After the application due date, HUD may not, consistent with its 
regulations in 24 CFR part 4, subpart B, consider any unsolicited 
information you, the applicant, may want to provide. HUD may contact 
you, however, to clarify an item in your application or to correct 
technical deficiencies. You should note, however, that HUD may not seek 
clarification of items or responses that improve the substantive 
quality of your response to any eligibility or selection factors. 
Examples of curable (correctable) technical deficiencies include your 
failure to submit the proper certifications or your failure to submit 
an application that contains an original signature by an authorized 
official. In each case, HUD will notify you in writing by describing 
the clarification or technical deficiency. HUD will notify applicants 
by facsimile or by return receipt requested. You must submit 
clarifications or corrections of technical deficiencies in accordance 
with the information provided by HUD within 14 calendar days of the 
date of receipt of the HUD notification. If your deficiency is not 
corrected within this time period, HUD will reject your application as 
incomplete, and it will not be considered for funding. (Note that the 
Sections 202 and 811 Programs, by regulation, provide for appeal of 
rejection of an application on technical deficiency. Please see the 
Programs Sections for these programs for additional information and 
instructions.)

VI. Promoting Comprehensive Approaches to Housing and Community 
Development

(A) General

    HUD believes the best approach for addressing community problems is 
through a community-based process that provides a comprehensive 
response to identified needs. By making these grant programs available 
in one document, applicants may be able to relate the activities 
proposed for funding under this SuperNOFA to the recent and upcoming 
NOFAs and the community's Consolidated Plan and Analysis of Impediments 
to Fair Housing Choice. There are certain HUD grant programs that are 
not part of this SuperNOFA (primarily those for which funding is 
allocated by lottery).

(B) Linking Program Activities With AmeriCorps

    You are encouraged to link your proposed activities with 
AmeriCorps, a national service program engaging thousands of Americans 
on a full or part-time basis to help communities address their toughest 
challenges, while earning support for college, graduate school, or job 
training. For information about AmeriCorps, call the Corporation for 
National Service at (202) 606-5000.

(C) Encouraging Visitability in New Construction and Substantial 
Rehabilitation Activities

    In addition to applicable accessible design and construction 
requirements, you are encouraged to incorporate visitability standards 
where feasible in new construction and substantial rehabilitation 
projects. Visitability standards allow a person with mobility 
impairments access into the home, but do not require that all features 
be made accessible. Visitability means at least one entrance at grade 
(no steps), approached by an accessible route such as a sidewalk; the 
entrance door and all interior passage doors are at least 2 feet 10 
inches wide, allowing 32 inches of clear passage space. Allowing use of 
2'10'' doors is consistent with the Fair Housing Act (at least for the 
interior doors), and may be more acceptable than requiring the 3 foot 
doors that are required in fully accessible areas under the Uniform 
Federal Accessibility Standards (UFAS) for a small percentage of units. 
A visitable home also serves persons without disabilities, such as a 
mother pushing a stroller, or a person delivering a large appliance. 
Copies of the UFAS are available from the SuperNOFA Information Center 
(1-800-HUD-2209) and also from the Office of Fair Housing and Equal 
Opportunity,

[[Page 9631]]

U.S. Department of Housing and Urban Development, Room 5230, 451 
Seventh Street, SW, Washington, DC 20410, telephone (202) 755-5404 or 
the TTY telephone number, 1-800-877-8399 (Federal Information Relay 
Service).

(D) Developing Healthy Homes

    HUD's Healthy Homes Initiative is one of the initiatives developed 
by the White House Task Force on Environmental Health Risks and Safety 
Risks to Children that was established under Executive Order 13045 
(``Protection of Children from Environmental Health Risks and Safety 
Risks''). HUD encourages the funding of activities (to the extent 
eligible under specific programs) that promote healthy homes, or that 
promote education on what is a healthy home. These activities may 
include, but are not limited to the following: educating homeowners or 
renters about the need to protect children in their home from dangers 
that can arise from items such as curtain cords, electrical outlets, 
hot water, poisons, fire, and sharp table edges, among others; 
incorporating child safety measures in the construction, rehabilitation 
or maintenance of housing, which include but are not limited to: child 
safety latches on cabinets, hot water protection devices, properly 
ventilated windows to protect from mold, window guards to protect 
children from falling, proper pest management to prevent cockroaches 
which can cause asthma, and activities directed to control of lead-
based paint hazards. The National Lead Information Hotline is 1-800-
424-5323.

VII. Findings and Certifications

(A) Environmental Impact
    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR part 50 that 
implement section 102(2)(C) of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332). The Finding of No Significant Impact is 
available for public inspection during regular business hours in the 
Office of the General Counsel, Regulations Division, Room 10276, U.S. 
Department of Housing and Urban Development, 451 Seventh Street, SW, 
Washington, DC 20410-0500.
(B) Federalism, Executive Order 12612
    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this SuperNOFA will not have substantial direct effects on 
States or their political subdivisions, or on the relationship between 
the Federal Government and the States, or on the distribution of power 
and responsibilities among the various levels of government. 
Specifically, the SuperNOFA solicits applicants to expand their role in 
addressing community development needs in their localities, and does 
not impinge upon the relationships between the Federal Government and 
State and local governments. As a result, the SuperNOFA is not subject 
to review under the Order.
(C) Prohibition Against Lobbying Activities
    You, the applicant, are subject to the provisions of section 319 of 
the Department of Interior and Related Agencies Appropriation Act for 
Fiscal Year 1991, 31 U.S.C. 1352 (the Byrd Amendment), which prohibits 
recipients of Federal contracts, grants, or loans from using 
appropriated funds for lobbying the executive or legislative branches 
of the Federal Government in connection with a specific contract, 
grant, or loan. You are required to certify, using the certification 
found at Appendix A to 24 CFR part 87, that you will not, and have not, 
used appropriated funds for any prohibited lobbying activities. In 
addition, you 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. Tribes and tribally designated housing entities (TDHEs) 
established by an Indian tribe as a result of the exercise of the 
tribe's sovereign power are excluded from coverage of the Byrd 
Amendment, but tribes and TDHEs established under State law are not 
excluded from the statute's coverage.)
(D) 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 SuperNOFA as follows:
    (1) Documentation and public access requirements. HUD will ensure 
that documentation and other information regarding each application 
submitted pursuant to this SuperNOFA 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.
    (2) Disclosures. HUD will make available to the public for 5 years 
all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this SuperNOFA. 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 5.
    (3) Publication of Recipients of HUD Funding. HUD's regulations at 
24 CFR 4.7 provide that HUD will publish a notice in the Federal 
Register on at least a quarterly basis to notify the public of all 
decisions made by the Department to provide:
    (i) Assistance subject to section 102(a) of the HUD Reform Act; or
    (ii) Assistance that is provided through grants or cooperative 
agreements on a discretionary (non-formula, non-demand) basis, but that 
is not provided on the basis of a competition.
(E) 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

[[Page 9632]]

assistance in this competition should confine their inquiries to the 
subject areas permitted under 24 CFR part 4.
    Applicants or employees who have ethics related questions should 
contact the HUD Ethics Law Division at (202) 708-3815. (This is not a 
toll-free number.) For HUD employees who have specific program 
questions, the employee should contact the appropriate field office 
counsel, or Headquarters counsel for the program to which the question 
pertains.

VIII. The FY 1999 SuperNOFA Process and Future HUD Funding Processes

    In FY 1998, Secretary Cuomo took the first significant step in 
changing HUD's funding process to better promote comprehensive, 
coordinated approaches to housing and community development by 
developing the SuperNOFA process. The three SuperNOFAs published in FY 
1998 reflected a marked improvement over HUD's previous funding process 
and assisted communities to make better use of available resources 
through a coordinated approach.
    This FY 1999 SuperNOFA takes HUD's funding process to the next 
step--a single SuperNOFA. The FY 1999 SuperNOFA was developed based on 
comments received from HUD clients and the Department believes it 
represents a significant improvement over HUD's approach to the funding 
process in prior years. For FY 2000, HUD may take even further steps to 
enhance this process. HUD welcomes comments from applicants and other 
members of the public on this process, and how it may be improved in 
future years.
    The description of programs for which funding is available under 
this SuperNOFA follows.

    Dated: February 18, 1999.
Saul N. Ramirez, Jr.,
Deputy Secretary.

BILLING CODE 4210-32-P

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Notices  

[[Page 9633]]


      
    [GRAPHIC] [TIFF OMITTED] TN26FE99.014
    

BILLING CODE 4210-32-C

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

[[Page 9635]]


      

Funding Availability for Community Development Technical Assistance 
(CD-TA) Programs--CDBG, CHDO, Home, Supportive Housing and HOPWA

Program Overview

    Purpose of the Program. The purposes of the technical assistance 
programs in this SuperNOFA are:
    Community Development Block Grant Technical Assistance. To increase 
the effectiveness with which States and units of general local 
government plan, develop and administer their Community Development 
Block Grant (CDBG) Programs, including assistance to aid non-profits 
and other recipients of CDBG funds.
    CHDO Technical Assistance. To promote the ability of Community 
Housing Development Organizations (CHDOs) to maintain, rehabilitate and 
construct housing for low-income and moderate-income families; 
facilitate the education of low-income homeowners and tenants; and help 
women who reside in low- and moderate-income neighborhoods to 
rehabilitate and construct housing in the neighborhoods.
    HOME Technical Assistance. To help HOME participating jurisdictions 
design and implement HOME programs, including: improving their ability 
to design and implement housing strategies and incorporate energy 
efficiency into affordable housing; facilitating the exchange of 
information to help participating jurisdictions carry out their 
programs; facilitating the establishment and efficient operation of 
employer-assisted housing programs and land bank programs; and 
encouraging private lenders and for-profit developers of low-income 
housing to participate in public-private partnerships.
    Supportive Housing Program (SHP) Technical Assistance. To provide 
HUD-funded Supportive Housing Program projects with technical 
assistance to promote the development of supportive housing and 
supportive services as part of a Continuum of Care approach, including 
innovative approaches to assist homeless persons in the transition from 
homelessness, and promoting the provision of supportive housing to 
homeless persons to enable them to live as independently as possible.
    Housing Opportunities for Persons with AIDS (HOPWA). To train 
communities to create comprehensive housing strategies and responsive 
area programs that assist residents who are living with HIV/AIDS; to 
train HOPWA grantees to administer formula and competitive funds in an 
efficient and effective manner, including undertaking community 
consultations, program planning, housing development and operations, 
program evaluation and reporting on accomplishments; and to build the 
capacity of nonprofit organizations to carry out activities as HOPWA 
projects sponsors.
    Available Funds. Up to $24.3 million is available for the five CD-
TA programs.
    Eligible Applicants. Specific eligibility requirements for the five 
CD-TA programs are found below in Section III(C). Forty percent of the 
CDBG, CHDO, HOME and Supportive Housing technical assistance funds is 
limited to qualified providers who have not previously received a 
technical assistance award. This limitation is not applicable to HOPWA 
technical assistance.
    Application Deadline. May 26, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Submit your completed applications (an 
original and one copy) on or before 12:00 midnight, Eastern time, on 
May 26, 1999. The original application that you submit to Headquarters 
is considered the official application. Send a copy of your application 
on or before the application deadline date to the HUD CPD Field 
Office(s) in which you are seeking to provide services. Only one 
application per applicant is permitted; however, one application can 
include as few as one or as many as all five CD-TA programs. The 
application kit contains the addresses and hours of operation for the 
HUD CPD Field Offices.
    See the General Section of this SuperNOFA for specific procedures 
governing the form of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Addresses for Submitting Applications. Submit your completed 
original application to HUD Headquarters, U.S. Department of Housing 
and Urban Development, CPD Processing and Control Branch, Room 7251, 
451 Seventh Street, SW, Washington, DC 20410. Send a copy of the 
application to the appropriate CPD Field Office(s) at the address shown 
on the list of HUD CPD Field Offices included in the application kit. 
When submitting your application, please refer to the Community 
Development Technical Assistance Program. Be sure to include your name, 
mailing address (including zip code), telephone number (including area 
code), and fax number (including area code).
    For Application Kits. For an application kit and any supplemental 
information, please call the SuperNOFA Information Center at 1-800-HUD-
8929. Persons with hearing or speech impairments may call the Center's 
TTY number at 1-800-483-2209. When requesting an application kit, 
please refer to ``Community Development Technical Assistance 
Programs.'' Please be sure to provide your name, address (including zip 
code), telephone number (including area code), and fax number 
(including area code).
    For Further Information and Technical Assistance. For answers to 
your questions, you have several options. You may call the HUD CPD 
Office serving your area at the telephone number listed in the list of 
HUD CPD Field Offices included in the application kit, or you may 
contact Ms. Deirdre Neighbors at 202-708-3176 x4386 in HUD 
Headquarters. Information on this SuperNOFA also may be obtained 
through the HUD web site on the Internet at http://www:HUD.gov.

II. Amount Allocated

    (A) The amounts allocated for each CD-TA program are as follows:

CDBG TA funds:
    Up to $2,500,000
CHDO TA funds:
    Up to $9,000,000 Total
    $3,600,000 Single State
    $5,400,000 Multi-State
HOME TA funds:
    Up to $8,000,000
SHP TA funds:
    Up to $2,500,000
HOPWA TA funds:
    Up to $2,250,000

    (B) Each HUD/CPD Field Office has been allocated a ``fair-share'' 
of CD-TA funds for purposes of this competition, except for the HOPWA 
TA funds which will be awarded only through a national competition (See 
CD-TA Appendix A for the fair share allocations). The amounts are based 
on workload allocations of HOME, CDBG and SHP entitlement funds and 
competitive programs for which Field Offices have management oversight. 
These amounts are only for guidance purposes for you to develop your 
program budgets by Field Office jurisdiction and are not the exact 
amounts to be awarded to you in each area.

[[Page 9636]]

    HUD will determine the total amount to be awarded to any provider 
based upon the size and needs of the provider's service area within 
each Field Office jurisdiction in which the provider is selected to 
operate, the funds available for that area, the number of other 
awardees selected in that area, and the scope of the technical 
assistance to be provided. Additionally, HUD may reduce the amount of 
funds allocated for Field Office jurisdictions to fund national CD-TA 
providers and other CD-TA providers for activities which cannot be 
budgeted or estimated by Field Office jurisdiction. HUD may require 
selected applicants, as a condition of funding, to provide coverage on 
a geographically broader basis than applied for in order to supplement 
or strengthen the intermediary network in terms of the location 
(service area), types and scope of technical assistance proposed.
    (C) In order to reach new technical assistance providers in the 
CDBG, HOME, CHDO and SH program areas, 40% of the funds in each of 
these four program areas within a field office (or at the national 
level) will be awarded to applicants who have not previously been 
funded under a technical assistance competition. Therefore, 
approximately $1 million will be awarded to new providers in CDBG; $3.2 
million in HOME; $3.6 million in CHDO; and $1 million in SHP. With 
respect to CHDO funds, 40% of the total funds (single state and multi-
state combined) are earmarked for new providers. If qualified new 
applicants are not found in each program area in each Field Office and/
or at the national level, the remaining funds will be made available 
for previously funded providers. The reverse also is true.
    (D) To the extent permitted by funding constraints, HUD intends to 
provide coverage for as full a range as possible, of eligible CD-TA 
activities of each CD-TA program in each Field Office jurisdiction. To 
achieve this objective, HUD will fund the highest ranking providers 
that bring the required expertise in one or more specialized activity 
areas, and fund portions of providers' proposed programs in which they 
have the greatest skill and capability for given geographic areas or on 
a national basis. HUD also may require national, multi-jurisdictional, 
or other providers to provide coverage to Field Office jurisdictions 
which cannot otherwise receive cost-effective support from a CD-TA 
provider. In selecting applicants for funding, in addition to the 
rating factors, HUD will apply program policy criteria identified in 
Section V of this CD-TA Program section of SuperNOFA to select a range 
of providers and activities that would best serve program objectives 
for each program serviced by the CD-TA funded under this SuperNOFA.

III. Program Description; Program Award Period; Eligible 
Applicants; Eligible and Ineligible Activities; and Sub-Grants/Pass 
Through Funds

    (A) Program Description. Up to $24.3 million in technical 
assistance (TA) funds is available from five separate technical 
assistance programs: Community Development Block Grant (CDBG) TA, 
Community Housing Development Organization (CHDO) TA, HOME TA, SHP TA, 
and HOPWA TA (collectively ``CD-TA'').
    The funding of these five CD-TA programs through a single funding 
availability announcement will not affect the ability of eligible 
applicants to seek CD-TA funding. Eligible applicants are able to apply 
for funding under as few as one, and as many as five, separate CD-TA 
programs, individually or collectively, singularly or in combination. 
The specific provisions of the five separate CD-TA programs have not 
been changed. This Community Development Technical Assistance Programs 
section of the SuperNOFA reflects the statutory requirements and 
differences in the five different CD-TA programs.
    (B) Program Award Period.
    (1) Cooperative Agreements will be for a period of up to 36 months. 
HUD, however, reserves the right to:
    (a) Terminate awards in accordance with provisions contained in OMB 
Circular A-102, and 24 CFR parts 84 and 85 anytime after 12 months;
    (b) Withdraw funds from a specific provider, if HUD determines that 
the urgency of need for the assistance is greater in other Field Office 
jurisdictions or the need for assistance is not commensurate with the 
award for assistance;
    (c) Extend the performance period of individual awardees up to a 
total of 12 additional months.
    (2) In cases where an applicant selected for funding under this 
program section of the SuperNOFA currently is providing CD technical 
assistance under an existing CD-TA grant/cooperative agreement, HUD 
reserves the right to adjust the start date of funding under this 
program to coincide with the conclusion of the previous award, or to 
incorporate the remaining activities from the previous award into the 
new agreement, adjusting the funding levels as necessary.
    (C) Eligible Applicants.
    (1) General. The eligible applicants for each of the five CD-TA 
programs are listed in paragraphs (2), (3), (4) and (5) of this Section 
(C). This paragraph (1) lists requirements applicable to all 
applicants.
    (a) Many organizations are eligible to apply for more than one CD-
TA program and are encouraged to do so to the extent they have the 
requisite experience, expertise and capability.
    (b) All applicant organizations must have demonstrated ability to 
provide CD-TA in a geographic area larger than a single city or county 
and must propose to serve an area larger than a single city or county.
    (c) An organization may not provide assistance to itself, and any 
organization funded to assist CHDOs under this CD-TA Program section of 
the SuperNOFA may not act as a CHDO itself within its service area 
while under award with HUD.
    (d) A consortium of organizations may apply for one or more CD-TA 
programs, but HUD will require that one organization be designated as 
the legal applicant, where legally feasible. Where one organization 
cannot be so designated for all proposed activities, HUD may execute 
more than one cooperative agreement with the members of a consortium.
    (e) All applicants must meet minimum statutory eligibility 
requirements for each CD-TA program for which they are chosen in order 
to be awarded a cooperative agreement. Copies of the Technical 
Assistance program regulations will be provided with the application 
kit.
    (f) All eligible CD-TA providers may propose assistance using in-
house staff, consultants, sub-contractors and sub-recipients, networks 
of private consultants and/or local organizations with requisite 
experience and capabilities. Whenever possible, applicants should make 
use of technical assistance providers located in the Field Office 
jurisdiction receiving services. This draws upon local expertise and 
persons familiar with the opportunities and resources available in the 
area to be served while reducing travel and other costs associated with 
delivering the proposed technical assistance services.
    (g) All applicants must meet the applicable threshold requirements 
of Section II(B) of the General Section of the SuperNOFA.
    (2) CDBG and Supportive Housing Eligible Applicants.
    (a) States and units of general local government.
    (b) Public and private non-profit or for-profit groups, including 
educational institutions and area-wide planning

[[Page 9637]]

organizations, qualified to provide technical assistance on CDBG 
programs or Supportive Housing projects. With respect to the CDBG 
program, an applicant group must be designated as a technical 
assistance provider to a unit of government's CDBG program by the chief 
executive officer of each unit to be assisted before assistance is 
provided, unless the assistance is limited to conferences/workshops 
attended by more than one unit of government. Do not include letters of 
designation in your application since granting of an award does not 
constitute approval of assistance to a given community and is provided 
only through a Technical Assistance Delivery Plan (see Section IV(A)(3) 
of this program section of the SuperNOFA).
    (3) CHDO Eligible Applicants. Public and private non-profit 
intermediary organizations that customarily provide services (in more 
than one community) related to affordable housing or neighborhood 
revitalization to CHDOs, or similar organizations that engage in 
community revitalization, including all eligible organizations under 
section 233 of the Cranston-Gonzalez National Affordable Housing Act, 
as amended.
    HUD will consider an intermediary as a primarily single State 
technical assistance provider if it can document that more than 50% of 
its past activities in working with CHDOs or similar nonprofit and 
other organizations (on the production of affordable housing or 
revitalization of deteriorating neighborhoods and/or the delivery of 
technical assistance to these groups) was confined to the geographic 
limits of a single State.
    (4) HOME Eligible Applicants.
    (a) A for-profit or non-profit professional and technical services 
company or firm that has demonstrated capacity to provide technical 
assistance services;
    (b) A HOME participating jurisdiction (PJ) or agency thereof;
    (c) A public purpose organization responsible to the chief elected 
official of a PJ and established pursuant to State or local 
legislation;
    (d) An agency or authority established by two or more PJs to carry 
out activities consistent with the purposes of the HOME program;
    (e) A national or regional non-profit organization that has 
membership comprised predominantly of entities or officials of entities 
of PJs or PJs' agencies or established organizations.
    (5) HOPWA Eligible Applicants.
    (a) Non-profit organizations; and
    (b) States and units of general local government.
    (D) Eligible and Ineligible Activities. Eligible and ineligible 
activities as appropriate for each of the five CD-TA programs are 
listed below:
    (1) Community Development Block Grant Technical Assistance.
    (a) Eligible Activities. Activities performed with CDBG funds must 
meet the substantive nexus test contained in 24 CFR 570.402(a)(2) and 
may include:
    (i) The provision of technical or advisory services;
    (ii) The design and operation of training projects such as 
workshops, seminars, conferences, or computer-based training;
    (iii) The development and distribution of technical materials and 
information;
    (iv) Other methods of demonstrating and making available skills, 
information and knowledge to assist States, units of general local 
government, in planning, developing, administering or assessing 
assistance under CDBG programs in which they are participating or 
seeking to participate.
    (b) Ineligible Activities. Activities for which costs are 
ineligible for funding under the Community Development Block Grant 
Technical Assistance Program include:
    (i) In the case of technical assistance for States, the cost of 
carrying-out the administration of the State CDBG program for non-
entitlement communities;
    (ii) The cost of carrying out the activities authorized under the 
CDBG Program, such as the provision of public services, construction, 
rehabilitation, planning and administration for which the technical 
assistance is to be provided;
    (iii) The cost of acquiring or developing the specialized skills or 
knowledge to be provided by a group funded under this section;
    (iv) Research activities;
    (v) The cost of identifying units of governments needing assistance 
(except the cost of selecting recipients of technical assistance under 
the provision of 24 CFR 570.402(j) is eligible); or
    (vi) Activities designed primarily to benefit HUD, or to assist 
HUD, in carrying out the Department's responsibilities; such as 
research, policy analysis of proposed legislation, training or travel 
of HUD staff, or development and review of reports to Congress.
    (2) CHDO Technical Assistance. CHDO Technical Assistance funds may 
be used only for the following eligible activities:
    (a) Organizational Support--Organizational support assistance may 
be made available to community housing development organizations to 
cover operational expenses and to cover expenses for training and 
technical, legal, engineering and other assistance to the board of 
directors, staff, and members of the community housing development 
organization;
    (b) Housing Education--Housing education assistance may be made 
available to community housing development organizations to cover 
expenses for providing or administering programs for educating, 
counseling, organizing homeowners and tenants who are eligible to 
receive assistance under other provisions of the HOME Program;
    (c) Program-Wide Support of Nonprofit Development and Management--
Technical assistance, training, and continuing support may be made 
available to eligible community housing development organizations for 
managing and conserving properties developed under the HOME Program;
    (d) Benevolent Loan Funds--Technical assistance may be made 
available to increase the investment of private capital in housing for 
very low-income families, particularly by encouraging the establishment 
of benevolent loan funds through which private financial institutions 
will accept deposits at below-market interest rates and make those 
funds available at favorable rates to developers of low-income housing 
and to low-income homebuyers;
    (e) Community Development Banks and Credit Unions--Technical 
assistance may be made available to establish privately owned, local 
community development banks and credit unions to finance affordable 
housing;
    (f) Community Land Trusts--Organizational support, technical 
assistance, education, training and continuing support under this 
subsection may be made available to community land trusts (as such term 
is defined in section 233(f) of the Cranston-Gonzalez National 
Affordable Housing Act) and to community groups for the establishment 
of community land trusts; and
    (g) Facilitating Women in Homebuilding Professions--Technical 
assistance may be made available to businesses, unions, and 
organizations involved in construction and rehabilitation of housing in 
low-and moderate-income areas to assist women residing in the area to 
obtain jobs involving such activities, which may include facilitating 
access by helping such women develop nontraditional skills, recruiting 
women to participate in such programs, providing continuing support for 
women at job sites,

[[Page 9638]]

counseling and educating businesses regarding suitable work 
environments for women, providing information to such women regarding 
opportunities for establishing small housing construction and 
rehabilitation businesses, and providing materials and tools for 
training such women (in an amount not exceeding 10% of any assistance 
provided under this paragraph). HUD shall give priority under this 
paragraph to providing technical assistance for organizations 
rehabilitating single family or multifamily housing owned or controlled 
by HUD pursuant to title II of the National Housing Act and which have 
women members in occupations in which women constitute 25% or less of 
the total number of workers in the occupation (in this section referred 
to as ``nontraditional occupations'').
    (3) HOME Technical Assistance Program. HUD will provide assistance 
to:
    (a) Facilitate the exchange of information that would help 
participating jurisdictions carry out the purposes of the HOME statute, 
including information on program design and accessibility, housing 
finance, land use controls, and building construction techniques;
    (b) Improve the ability of States and units of local government to 
design and implement housing strategies, particularly those States and 
units of local government that are relatively inexperienced in the 
development of affordable housing;
    (c) Encourage private lenders and for-profit developers of low-
income housing to participate in public-private partnerships to achieve 
the purposes of the HOME statute;
    (d) Improve the ability of States and units of local government, 
community housing development organizations, private lenders, and for-
profit developers of low-income housing to incorporate energy 
efficiency into the planning, design, financing, construction and 
operation of affordable housing;
    (e) Facilitate the establishment and efficient operation of 
employer-assisted housing programs, through research, technical 
assistance, and demonstration projects; and
    (f) Facilitate the establishment and efficient operation of land 
bank programs, under which title to vacant and abandoned parcels of 
real estate located in or causing blighted neighborhoods is cleared for 
use consistent with the purposes of the HOME statute.
    (4) Supportive Housing Program Technical Assistance. Funds are 
available to provide technical assistance to HUD funded Supportive 
Housing projects. Funds may be used to provide technical assistance to 
prospective applicants, applicants, recipients or other providers 
(project sponsors) of Supportive Housing or SHP-funded services for 
homeless persons. The assistance may include, but is not limited to, 
written information such as papers, manuals, guides and brochures; 
person-to-person exchanges; on-site assessments and provision of 
technical expertise; and training and related costs.
    (5) HOPWA Technical Assistance.
    For the purposes of this program section of the SuperNOFA, HOPWA 
technical assistance shall mean the transfer to HOPWA grantees and 
project sponsors and potential recipients of program funds, the skills 
and knowledge needed to develop, operate and support HOPWA-eligible 
projects and activities.
    An applicant for HOPWA TA funds must propose activities on a 
national or regional basis (e.g. serving a multi-state area). The 
application should emphasize how activities will advise and train 
communities and project sponsors in undertaking program planning, 
community consultations, housing development and operations, 
coordination with related health-care and other supportive services, 
and evaluation and reporting on program performance. The Department has 
established the following four national goals for HOPWA TA projects:
    (a) Comprehensive Strategies for HIV/AIDS Housing. HOPWA TA funds 
can be used to advise and train communities in: undertaking community-
based needs assessments of the housing needs of persons living with 
HIV/AIDS and their families; drafting comprehensive multiple-year HIV/
AIDS housing plans; undertaking community-wide consultations, including 
consulting with potential clients, providers of HIV/AIDS housing and/or 
services, and local, State and Federal agencies that administer HIV/
AIDS-related programs, including programs funded under the Ryan White 
CARE Act, and programs that address serious mental illness, chronic 
alcohol and other drug abuse issues, and homelessness; integrating HIV/
AIDS housing efforts within the area's consolidated planning processes: 
and collaborating with the area's Continuum of Care Homeless Assistance 
processes in assisting persons with HIV/AIDS who are homeless. 
Technical assistance also may be used to train communities in how to 
best target assistance to traditionally underserved subpopulations in 
developing community-based needs assessments and may build capacity for 
State-wide, metropolitan, non-metropolitan and/or rural areas in 
development of area multi-year HIV and AIDS housing plans. You also 
could provide technical assistance to HOPWA formula grantees that are 
new recipients of formula allocations or that are designated by HUD as 
prospective recipients in future allocations to promote the planning 
and startup for the use of funds.
    (b) Sound Management of HOPWA Programs. HOPWA TA funds can be used 
to help ensure that grantees and project sponsors use funds in a manner 
that upholds the public trust in the operation of programs, including: 
advising on management practices to provide responsive, efficient and 
cost effective facility and program operations; advising on fiscal 
management to ensure accountability in the use of funds; advising on 
the coordination of housing with health-care and other related 
supportive services for eligible persons; assisting in developing 
collaborations with local, State and Federal agencies that administer 
HIV/AIDS-related programs, including programs funded under the Ryan 
White CARE Act; advising on data collection and evaluation of programs; 
providing program handbooks, guidance materials, audio/visual products, 
training, and other activities to promote good management practices.
    (c) Use of HUD Information Management Tools. HOPWA TA funds may be 
used to assist grantees, project sponsors and other organizations 
involved in HIV/AIDS plans in using the Department's information 
technology, financial systems and information management systems for 
developing, operating and reporting on program activities. Applications 
should address how TA activities will support the use of the 
Department's Consolidated Planning Process, Integrated Disbursement and 
Information System (IDIS), the use of HOPWA Annual Progress Reports, 
the Grants Management System, the LOCCS/HUDCAPS and other HUD 
information collection or financial management tools. The use of these 
management tools will help to ensure that your performance is measured 
under the HOPWA national performance goals, established in the 
Department's Annual Performance Plan. You should address plans for 
conducting grantee and sponsor workshops, developing training 
materials, developing or adapting software for program activities and 
goals, and sponsoring conferences of grantees and sponsors.
    (d) National HOPWA Information. HOPWA TA funds may be used to

[[Page 9639]]

establish a component to support HIV/AIDS housing discussions, panels, 
presentations, information, exhibit booths, and other training 
materials at national, regional, state-wide and local meetings of 
organizations that are involved in housing, community development, 
health-care and supportive services, veterans affairs and other human 
service efforts. The component should help promote understanding on 
HIV/AIDS housing issues and needs of persons living with HIV/AIDS, and 
offer training on developing and accessing HIV/AIDS housing and related 
services. A research and information services component of this effort 
should include the development of information on HIV/AIDS housing and 
activities supported under HOPWA grants which will be published for 
national distribution, including disseminating information on the 
success and lessons learned by the HOPWA Special Projects of National 
Significance and Long-term grants in non-formula areas that have been 
awarded in the HOPWA national competitions. This component should 
emphasize the collection and dissemination of information on the ``best 
practices'' of HUD grantees that should serve as a basis for peer 
support, technical assistance, and program improvement or address 
emerging and unresolved issues in assisting persons living with HIV/
AIDS and their families.
    (E) Sub-Grants/Pass-Through Funds. Applicants may propose to make 
sub-grants to achieve the purposes of their proposed CA-TA programs in 
accordance with program requirements in Section IV of this CD-TA 
Program section of the SuperNOFA. In the case of CHDO TA, these sub-
grants (also called ``pass-through'' funds) may be made for eligible 
activities and to eligible entities as identified in Section 233(b)(1), 
(2), and (7) of the Cranston-Gonzalez National Affordable Housing Act. 
When CHDO TA sub-grants are made to CHDOs, two statutory provisions 
apply:
    (1) The sub-grant amount, when combined with other capacity 
building and operating support available through the HOME program, 
cannot exceed the greater of 50% of the CHDO's operating budget for the 
year in which it receives the funds, or $50,000 annually;
    (2) An amount not exceeding 10% of the total funds awarded for the 
``Women in the Homebuilding Professions'' eligible activity may be used 
to provide materials and tools for training such women.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, applicants are subject to the following 
requirements:

(A) Program Requirements for CDBG, CHDO, HOME and SHP

    (1) Profit/Fee. No increment above cost, no fee or profit, may be 
paid to any recipient or subrecipient of an award under this CD-TA 
Program section of the SuperNOFA.
    (2) Demand/Response Delivery System.
    (a) As an awardee, you must operate within the structure of the 
demand/response system described in this section. You must coordinate 
your plans with, and operate under the direction of, each HUD Field 
Office within whose jurisdiction you are operating. When so directed by 
a Field Office, you will coordinate your activities instead through a 
lead CD-TA provider or other organization designated by the Field 
Office.
    (b) If selected as the lead CD-TA provider in any Field Office 
jurisdiction, as an awardee you must coordinate the activities of other 
CD-TA providers selected under this CD-TA Program section of the 
SuperNOFA under the direction of the HUD Field Office. Joint activities 
by CD-TA providers may be required.
    (c) Under the demand/response system, CD-TA providers will be 
required to:
    (i) When requested by a Field Office or Government Technical 
Representative (GTR), market the availability of their services to 
existing and potential clients to include local jurisdictions in which 
the assistance will be delivered.
    (ii) Respond to requests for assistance from the HUD Field 
Office(s) with oversight of the geographic service area for which the 
technical assistance will be delivered, including responding to 
priorities established by the Field Office in its Grants Management 
System. CHDOs, HOME PJs, CDBG and SHP grantees may request assistance 
from the CD-TA provider directly, but such requests must be approved by 
the local HUD Field Office.
    (iii) When requested by a Field Office or GTR, conduct a Needs 
Assessment to identify the type and nature of the assistance needed by 
the recipients of the assistance. These needs assessments should 
typically identify the nature of the problem to be addressed by the 
technical assistance services; the plan of action to address the need 
including the type of technical assistance services to be provided, the 
duration of the service, the staff assigned to provide the assistance, 
anticipated products and/or outcomes, and the estimated cost for the 
provision of services; and the relationship of the proposed services to 
the planned or expected Consolidated Plan submission to HUD and to 
other technical assistance providers providing service within the 
locality.
    (iv) Obtain approval for the Technical Assistance Delivery Plan 
(TADP) from the HUD Field Office(s) with oversight for the area in 
which service will be provided. (See Section 3 below).
    (v) Work cooperatively with other CD-TA providers in their 
geographic areas to ensure that clients are provided with the full 
range of CD-TA services needed and available. CD-TA providers are 
expected to be knowledgeable about the range of services available from 
other providers, make referrals and arrange visits by other CD-TA 
providers when appropriate, and carry out CD-TA activities concurrently 
when it is cost-effective and in the interests of the client to do so. 
HUD Field Offices may direct CD-TA providers to conduct joint 
activities.
    (3) Technical Assistance Delivery Plan (TADP).
    (a) After selection for funding but prior to award, you must 
develop a TADP for each Field Office jurisdiction or National Program 
for which you have been selected, in consultation with the Field office 
and/or GTR.
    (b) In developing the TADP, you must follow the Field Office's 
Business Operating Plan (BOP) and management strategies/workplans for 
each community/State in the Field Office's jurisdiction. You must use 
these BOP/management strategies/workplans in determining your priority 
work activities, location of activities, and organizations to be 
assisted during the cooperative agreement performance period.
    (c) The BOP/grantee management strategies/workplans are part of the 
Field Office's Grants Management Process (GMP) and should indicate the 
issues to be addressed by CD-TA, the improved performance expected as a 
result of CD-TA, and methods for measuring the success of the CD-TA.
    (d) The TADP must delineate all the tasks and sub-tasks for each CD 
program the applicant will undertake in each Field Office jurisdiction. 
It must show the location of the community/State in which the CD-TA 
activities will occur, the level of CD-TA funding and proposed 
activities by location, the improved program performance or other 
results expected from the CD-TA and

[[Page 9640]]

the methodology to be used for measuring the success of the CD-TA. A 
time schedule for delivery of the activities, budget-by-task and 
staffing plan must be included in the TADP.
    (4) Negotiation. After all applications have been rated and ranked 
and a selection has been made, HUD requires that all winners 
participate in negotiations to determine the specific terms of the TADP 
and the budget. HUD will follow the negotiation procedures described in 
Section III(D) of the General Section of the SuperNOFA.
    (5) Forms, Certifications and Assurances. You must submit with your 
application the forms, certifications and assurances listed in the 
General Section of this SuperNOFA. After selection for funding but 
prior to your providing services to a specific community you must 
submit the CDBG Nexus Statement (where applicable) and/or the CHDO TA 
designation letter (where applicable).
    (6) Financial Management and Audit Information. After selection for 
funding but prior to award, you must submit a certification from an 
Independent Public Accountant or the cognizant government auditor, 
stating that your financial management system meets prescribed 
standards for fund control and accountability required by 24 CFR part 
84 for Institutions of Higher Education and other Non-Profit 
Institutions, 24 CFR part 85 for States and local governments, or the 
Federal Acquisition Regulations (for all other applicants). The 
information should include the name and telephone number of the 
independent auditor, cognizant Federal auditor, or other audit agency 
as applicable.
    (7) Designation for CDBG/CHDO Technical Assistance Providers. CDBG 
TA providers will be expected to obtain designation as technical 
assistance providers by the chief executive officers of each community 
within which they are working as required by 24 CFR 570.402(c)(2). CHDO 
TA providers will be responsible for securing a technical assistance 
designation letter from a PJ stating that a CHDO or prospective CHDO to 
be assisted by the provider is a recipient or intended recipient of 
HOME funds and indicating, at its option, subject areas of assistance 
that are most important to the PJ.
    (8) Training Sessions. When conducting training sessions as part of 
its CD-TA activities, CD-TA providers are required to:
    (a) Design the course materials as ``step-in'' packages (also 
called ``train-the trainer'' packages) so that a Field Office or other 
CD-TA provider may separately give the course on its own;
    (b) Arrange for joint delivery of the training with Field Office 
participation when so requested by the Field Office or by the GTR for 
national grants; and
    (c) When requested by a Field Office and/or GTR, provide for 
professional videotaping of the workshops/courses and ensure their 
production in a professional and high-quality manner, suitable for 
viewing by other CD clients (if this requirement is implemented, 
additional funds may be requested).
    (d) When required by HUD, deliver HUD-approved training courses 
that have been designed and developed by other HUD contractors or HUD 
cooperating parties on a ``step-in'' basis for CD-TA clients, and send 
trainers to HUD-approved Train-the Trainer sessions.
    (9) Reports to Field Offices and/or GTRs. CD-TA providers will be 
required to report to the HUD Field Office(s) with oversight of the 
geographic area(s) in which CD-TA services are provided or to 
Headquarters GTRs in the case of national providers. At a minimum, this 
reporting will be on a quarterly basis unless otherwise specified in 
the approved TADP.
    (10) Active Participation. HUD Field Offices will be active 
participants in the delivery of all technical assistance by funded 
providers throughout the term of the cooperative agreement.
    (11) CHDO Pass-Through Funds. CD-TA providers proposing pass-
through grants are required to:
    (a) Establish written criteria for selection of CHDOs receiving 
pass-through funds which includes the following:
    (i) Participating jurisdictions (PJs) must designate the 
organizations as CHDOs.
    (ii) Generally, the organizations should not have been in existence 
more than 3 years.
    (b) Enter into an agreement with the CHDO that the agreement and 
pass-through funding may be terminated at the discretion of the 
Department if no written legally binding agreement to provide 
assistance for a specific housing project (for acquisition, 
rehabilitation, new construction or tenant-based rental assistance) has 
been made by the PJ with the CHDO within 24 months of receiving the 
pass-through funding.
    (12) CHDO TA Program Limitations. Pursuant to section 233(d)(1) and 
(2) of the Cranston-Gonzalez National Affordable Housing Act, funding 
to any single eligible nonprofit intermediary organization seeking to 
provide CHDO TA, whether as an independent or joint applicant, is 
limited to the lesser of 20% of all funds, or an amount not to exceed 
20% of the organization's operating budget for any one year (not 
including funds sub-awarded or passed through the intermediary to 
CHDOs). Pursuant to section 233(e), HUD is making available through 
this program section of the SuperNOFA 40% of the total CHDO TA funds to 
single state providers within the Field Offices. If there are no single 
state applicants or the qualified single state applicants utilize less 
than the 40% set-aside in a given Field Office, that Field Office's 
single state CHDO set-aside will be redistributed among the qualified 
multi-state providers in that Field Office. Field Offices also may 
utilize their multi-state set-aside for single state applicants if the 
reverse is true.
    (13) HOME TA Program Limitations. Pursuant to section 243(b) of the 
Cranston-Gonzalez National Affordable Housing Act, funding to any 
single eligible HOME TA organization, whether as an independent or 
joint applicant, is limited to not more than 20% of the operating 
budget of the recipient organization in any one year and is limited to 
20% of the funds available under this program section of the SuperNOFA.
    (14) Affirmatively Furthering Fair Housing. Section II(D) of the 
General Section of the SuperNOFA does not apply to these technical 
assistance programs.

(B) Program Requirements for HOPWA Technical Assistance

    (1) General Requirements. The items listed below specify the 
requirements that apply to the HOPWA TA applications as follows: in 
Section (A), Paragraphs: (1) on Profit/Fee; (4) Negotiation, except 
that the TADP reference will apply to a workplan negotiated between the 
applicant and the GTR for the HOPWA TA grant in HUD Headquarters; (5) 
Forms, Certifications and Assurances; (6) Financial Management and 
Audit Information; (8) Training Sessions; (9) Reports to Field Offices 
and/or GTRs, except that you must report to the HOPWA Headquarters GTR, 
at a minimum, on a quarterly basis, unless otherwise specified in an 
approved HOPWA TA workplan; and the HOPWA TA grantees must also report 
to the GTR in the Headquarters program office by September 30, 1999 for 
activities carried out in Fiscal Year 1999; and (14) Affirmatively 
Furthering Fair Housing.
    (2) Coordination of HOPWA TA Requests. Except for national 
meetings, research, information and other activities that are conducted 
on a program-wide basis in cooperation with HUD Headquarters, as the 
grantee of HOPWA TA funds, you must work

[[Page 9641]]

cooperatively with HUD Field Offices. You must notify the applicable 
HUD Field Office of the planned activities; must consider the views or 
recommendations of that office, if any; must follow those 
recommendations, to the degree practicable; and must report to the 
applicable Field Office on the accomplishments of this assistance.

V. Application Selection Process

(A) Rating and Ranking.

    (1) HUD will evaluate applications competitively and rank them 
against all other applicants that have applied for the same CD-TA 
program (CDBG, HOME, SHP) within each Field Office or as a National 
Provider under HOPWA. CHDO applications are similarly evaluated and 
ranked but are separated into two sub-groups--single State providers 
and multi-State providers. There will be separate rankings for each CD-
TA program, and you will be ranked only against others that have 
applied for the same CD-TA program.
    (2) Once scores are assigned, all applications will be listed in 
rank order for each CD-TA program for which they applied by Field 
Office jurisdiction and/or the HOPWA National Program. In each Field 
Office jurisdiction or National Program area, all applications for the 
CDBG TA program will be listed in rank order on one list, all 
applications for the HOME TA program will be listed in rank order on 
another list, all applications for the SHP TA program will be listed in 
rank order on another list, and all applications for the HOPWA TA 
national projects will be ranked separately on another list. All 
applications for the CHDO TA program will be ranked separately on 
either the single state provider list or the multi-state provider list. 
Under this system, a single application from one organization for all 
CD-TA programs could be assigned different scores and different 
rankings for each program in different Field Offices.
    (3) Applications will be funded in rank order for each CD-TA 
program by Field Office jurisdiction, except for HOPWA TA national 
providers and others which cannot be ranked by Field Office 
jurisdiction. National providers and others will be ranked separately 
and funded in rank order for each CD-TA program. Irrespective of final 
scores, HUD may apply program policy criteria to select one applicant 
in each of the four (CDBG, CHDO, HOME and SHP) CD-TA programs in each 
Field Office, to ensure diversity of methods, approaches, or kinds of 
projects. HUD will apply these program policy criteria to provide 
coverage of CD-TA services for minorities; women, particularly women in 
the homebuilding professions under section 233(b)(7) of the Cranston-
Gonzalez National Affordable Housing Act; persons with disabilities; 
homeless; persons with special needs; and rural areas.
    (4) In addition to the authority in the General Section to adjust 
funding, HUD reserves the right to adjust funding levels for each 
applicant for each CD-TA program, as follows:
    (a) Award additional funds to organizations designated as lead CD-
TA providers as discussed in Section IV(A)(2)(b) of this CD-TA Program 
section of the SuperNOFA;
    (b) Adjust funding levels for any provider based upon the size and 
needs of the provider's service area within each Field Office 
jurisdiction in which the provider is selected to operate, the funds 
available for that area, the number of other awardees selected in that 
area, funds available on a national basis for providers that will be 
operating nationally, or the scope of the technical assistance to be 
provided;
    (c) To negotiate increased grant awards with applicants approved 
for funding if HUD requests them to offer coverage to geographic areas 
for which they did not apply or budget, or if HUD receives an 
insufficient amount of applications.
    (5) If funds remain after all selections have been made, remaining 
funds may be:
    (a) Distributed among all HUD Field Offices (in proportion to their 
fair-share awards) and/or the National Program, or
    (b) Made available for other CD-TA program competitions.
    (6) If you apply for HOPWA TA funds, you must propose activities 
that will be carried out on a national or regional basis. With respect 
to the HOPWA TA program, the amount of funds you request may be 
adjusted by HUD to ensure that at least $300,000 of the TA funds will 
be designated for each of the following four HOPWA TA goals:
    (a) Comprehensive Strategies for HIV/AIDS Housing;
    (b) Sound Management of HOPWA Programs;
    (c) Use of HUD Information Management Tools; and
    (d) National HOPWA Information.
    If the highest rated application fails to adequately address one or 
more of the HOPWA TA goals, HUD reserves the right after selecting the 
highest rated application, to also provide funds to address the goal(s) 
that is not addressed by: selecting an application that does address 
this goal(s) in the rank order of all applications that address this 
goal(s); or, if no application is found to adequately address this 
goal(s), by modifying the proposed program of the selected 
application(s) to address this goal(s). To ensure that activities are 
carried out on a national basis, HUD may also modify the service area 
of a selected application, if practicable.
    (B) Factors for Award Used to Evaluate and Rate Applications. The 
factors and maximum points for each factor are provided below. The 
maximum number of points to be awarded for a CD-TA application is 100. 
The minimum score for an applicant to be considered in funding range is 
55, with a minimum of 11 points in Factor 1 and 9 points in Subfactor 2 
of Factor 3. The CD-TA program is not an eligible program for the EZ/EC 
bonus points, as described in Section III(C)(1) of the General Section 
of the SuperNOFA.
    Rating of the ``applicant'' or the ``applicant's organization and 
staff'', unless otherwise specified, will include any sub-contractors, 
consultants, sub-recipients, and members of consortia which are firmly 
committed to the project.
    When addressing the Factors for Award, the applicant should discuss 
the specific TA projects, activities, tasks, etc. that it suggests be 
carried out during the term of the cooperative agreement. See Sections 
IV(A)(2) and (3) for a discussion of the extent to which such 
activities may be revised at or after the time of award.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points) (Minimum for Funding Eligibility--11 Points)
    In rating this factor, HUD will consider the extent to which the 
application demonstrates in relation to CD-TA program funding that is 
requested:
    (1) (10 points) Recent, relevant and successful experience of your 
organization and staff in providing technical assistance in all 
eligible activities and to all eligible entities for the CD-TA 
program(s) applied for, as described in the regulations;
    (2) (5 points) The relevant experience and competence of your key 
personnel in managing complex, multi-faceted or multi-disciplinary 
programs that require coordination with other CD-TA entities or 
multiple, diverse units in an organization;
    (3) (5 points) You have sufficient personnel or access to qualified 
experts or professionals to deliver the proposed level of technical 
assistance in each proposed service area in a timely and effective 
fashion.

[[Page 9642]]

Rating Factor 2: Potential Effectiveness of the Application in Meeting 
Needs of Target Groups/Localities and Accomplishing Project Objectives 
for Each CD-TA Program for Which Funds Are Requested (20 Points)
    In rating this factor, HUD will consider the extent to which your 
application:
    (1) (10 points) Identifies high priority needs and issues for the 
CD program in each community or Field Office jurisdiction for which CD-
TA funding is requested, or on a national or regional basis for 
national HOPWA grants;
    (2) (5 points) Outlines a clear and cost-effective plan of 
suggested TA activities for addressing those needs and aiding a broad 
diversity of eligible grantees and/or beneficiaries, including those 
which traditionally have been under-served; and
    (3) (5 points) Identifies creative activities to assist eligible 
grantees in participating in the development of, and improving, local 
Consolidated Plans and comprehensive strategies.
Rating Factor 3: Soundness of Approach (40 Points)
    In rating this factor, HUD will consider the extent to which your 
application evidences a sound approach in addressing identified needs 
and:
    (1) (15 points) Provides a cost effective plan for designing, 
organizing, and carrying out the suggested technical assistance 
activities within the framework of the Demand/Response System or, for 
HOPWA TA applicants, in addressing the four HOPWA TA goals on a 
national or regional basis.
    (2) (15 points) (Minimum for Funding Eligibility--9 points) 
Demonstrates an effective outreach and assistance program to previously 
underserved disadvantaged communities and/or organizations with the 
potential to participate in CPD programs.
    (3) (5 points) Provides for full geographic coverage, including 
urban and rural areas, (directly or through a consortium of providers) 
of a single State or Field Office jurisdiction or is targeted to 
address the needs of rural areas, minority groups or other under-served 
groups, or for HOPWA TA applicants, addresses national or regional 
approaches;
    (4) (5 points) Proposes a feasible, creative plan, which uses state 
of the art or new promising technology, to transfer models and lessons 
learned in each of its CD-TA program's activities to grantees and/or 
program beneficiaries in other CD-TA programs.
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure community resources 
(note: financing is a community resource) which can be combined with 
HUD's program resources to achieve program purposes. In evaluating this 
factor HUD will consider:
    The extent to which you have partnered with other entities to 
secure additional resources to increase the effectiveness of the 
proposed program activities. Resources may include funding or in-kind 
contributions, such as services or equipment, allocated to the 
purpose(s) of the award you are seeking. Resources may be provided by 
governmental entities, public or private nonprofit organizations, for-
profit private organizations, or other entities willing to partner with 
the applicant. You also may partner with other program funding 
recipients to coordinate the use of resources in the target area.
    You must provide evidence of leveraging/partnerships by including 
in the application letters of firm commitments, memoranda of 
understanding, or agreements to participate from those entities 
identified as partners in the application. Each letter of commitment, 
memorandum of understanding, or agreement to participate should include 
the organization's name, proposed level of commitment and 
responsibilities as they relate to the proposed program. The commitment 
must also be signed by an official of the organization legally able to 
make commitments on behalf of the organization.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which the applicant coordinated 
its activities with other known organizations, participates or promotes 
participation in a community's Consolidated Planning process and 
Continuum of Care homeless assistance strategy, and is working towards 
addressing a need in a holistic and comprehensive manner through 
linkages with other activities in the community.
    In evaluating this factor, HUD will consider the extent to which 
you demonstrates you have:
    (1) Coordinated your proposed activities with those of other groups 
or organizations prior to submission in order to best complement, 
support and coordinate all known activities and if funded, the specific 
steps it will take to share information on solutions and outcomes with 
others. Describe any written agreements, memoranda of understanding in 
place, or that will be in place after award.
    (2) Taken or will take specific steps to work with recipients of 
technical assistance services become active in the community's 
Consolidated Planning process (including the Analysis of Impediments to 
Fair Housing Choice) established to identify and address a need/problem 
that is related to the activities the applicant proposes.
    (3) Taken or will take specific steps to develop linkages to 
coordinate comprehensive solutions through meetings, information 
networks, planning processes or other mechanisms with:
    (a) Other HUD-funded projects/activities outside the scope of those 
covered by the Consolidated Plan; and
    (b) Other Federal, State or locally funded activities, including 
those proposed or on-going in the community.

VI. Application Submission Requirements

    In addition to the forms, certifications and assurances listed in 
Section II(G) of the General Section of the SuperNOFA, your application 
must, at a minimum, contain the following items, (except that the 
following paragraphs (C), (D), (E), (F), (G) and (H) do not apply to 
HOPWA TA applicants):
    (A) Transmittal Letter which identifies the SuperNOFA, the CD-TA 
programs for which funds are requested and the dollar amount requested 
for each program, and the applicant or applicants submitting the 
application. If your organization has never received a HUD technical 
assistance award, please include a statement to this effect in the 
transmittal letter.
    (B) Narrative statement addressing the Factors for Award described 
in Section V(B) of this CD-TA Program section of this SuperNOFA. You 
should number the narrative response in accordance with each factor for 
award. This narrative statement will be the basis for evaluating your 
application. It should include a plan of suggested TA activities as 
described in Factors 2, 3, and elsewhere. These suggested TA activities 
may form a starting point for negotiating the TADP described in Section 
IV(A)(3) of this CD-TA Program section of the SuperNOFA. However, they 
are used primarily for purposes of rating and evaluation and may be 
substantially altered and revised during negotiations with the Field 
Offices on the content of the TADPs (see Section IV(A)(3) or 
Headquarters program office for national projects.

[[Page 9643]]

    (C) Statement that identifies the Field Office jurisdictions in 
which you propose to offer services. If you will not offer services 
throughout the full jurisdictional area of the Field Office, your 
statement should identify the service areas involved (e.g., States, 
counties, etc.), as well as the communities in which you propose to 
offer services.
    (D) A matrix that summarizes the amount of funds you are requesting 
for each CD-TA program in each Field Office jurisdiction. (See CD-TA 
Appendix B for a copy of the matrix to be submitted.)
    (E) A statement as to whether you propose to use pass-through funds 
for CHDOs under the CHDO TA program, and, if so, the amount and 
proposed uses of such funds.
    (F) If applying for the CHDO TA program, a certification as to 
whether you qualify as a primarily single-State provider under section 
233(e) of the Cranston-Gonzalez Affordable Housing Act and as discussed 
in Section III(C)(3) of the CD-TA Program section of this SuperNOFA.
    (G) A statement as to whether you propose to be considered for the 
role of lead CD-TA provider in one or more specific program areas in a 
Field Office jurisdiction, and if so, your organization's capabilities 
and attributes that qualify you for the role.
    (H) Budget identifying costs for implementing the plan of suggested 
TA activities by cost category for each CD-TA program for which funds 
are requested by Field Office or as a National Provider (in accordance 
with the following):
    (1) Direct Labor by position or individual, indicating the 
estimated hours per position, the rate per hour, estimated cost per 
staff position and the total estimated direct labor costs;
    (2) Fringe Benefits by staff position identifying the rate, the 
salary base the rate was computed on, estimated cost per position, and 
the total estimated fringe benefit cost;
    (3) Material Costs indicating the item, quantity, unit cost per 
item, , estimated cost per item, and the total estimated material 
costs;
    (4) Transportation Costs, as applicable.
    (5) Equipment charges, if any. Equipment charges should identify 
the type of equipment, quantity, unit costs and total estimated 
equipment costs;
    (6) Consultant Costs, if applicable. Indicate the type, estimated 
number of consultant days, rate per day, total estimated consultant 
costs per consultant and total estimated costs for all consultants;
    (7) Subcontract Costs, if applicable. Indicate each individual 
subcontract and amount;
    (8) Other Direct Costs listed by item, quantity, unit cost, total 
for each item listed, and total other direct costs for the award;
    (9) Indirect Costs should identify the type, approved indirect cost 
rate, base to which the rate applies and total indirect costs.
    These line items should total the amount requested for each CD-TA 
program area. The grand total of all CD-TA program funds requested 
should reflect the grand total of all funds for which application is 
made.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    In accordance with 24 CFR 50.19(b)(9) and 58.34(a)(9), the 
assistance provided by these programs relates only to the provision of 
technical assistance and is categorically excluded from the 
requirements of the National Environmental Policy Act and not subject 
to environmental review under the related laws and authorities. This 
determination is based on the ineligibility of real property 
acquisition, construction, rehabilitation, conversion, leasing or 
repair for HUD assistance under these technical assistance programs.

IX. Authority

    CDBG Technical Assistance. The Community Development Block Grant 
Technical Assistance Program is authorized under Title I of the Housing 
and Community Development Act of 1974, (42 U.S.C. 5301-5320; 24 CFR 
570.402).
    CHDO Technical Assistance. The CHDO Technical Assistance Program is 
authorized by the HOME Investment Partnerships Act (42 U.S.C. 12773); 
24 CFR part 92.
    HOME Technical Assistance. The HOME Technical Assistance Program is 
authorized by the HOME Investment Partnerships Act (42 U.S.C. 12781-
12783); 24 CFR part 92.
    SHP Technical Assistance. The Supportive Housing Program is 
authorized under 42 U.S.C. 11381 et seq.; 24 CFR 583.140.
    HOPWA Technical Assistance. The HOPWA Technical Assistance program 
is authorized under the Department's FY 1999 appropriation act. The 
HOPWA program is authorized under the AIDS Housing Opportunities Act 
(42 U.S.C. 12901) and the HOPWA regulations are found at 24 CFR part 
574.

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Notices  

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  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

[[Page 9653]]



Funding Availability for the Community Outreach Partnership Centers 
Program Program Overview

    Purpose of the Program. To provide funds to community colleges, 
four-year colleges, and universities to establish and operate Community 
Outreach Partnership Centers (COPCs) to address the problems of urban 
areas.
    Available Funds. Approximately $7.5 million.
    Eligible Applicants. Public and private profit and nonprofit 
institutions of higher education granting two- or four-year degrees and 
accredited by a national or regional accrediting agency recognized by 
the U.S. Department of Education.
    Application Deadline. June 9, 1999.
    Match. 50% of the total costs of establishing and operating 
research activities and 25% of the total costs of establishing and 
operating outreach activities.

Additional Information:

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Your completed application is due on or 
before 12:00 midnight, Eastern time on June 9, 1999, at HUD 
Headquarters. See the General Section of this SuperNOFA for specific 
procedures governing the form of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Address for Submitting Applications. Submit your completed 
application (one original and two copies) to: Processing and Control 
Branch, Office of Community Planning and Development, U.S. Department 
of Housing and Urban Development, 451 Seventh Street, SW, Room 7251, 
Washington, DC 20410. When submitting your application, please refer to 
COPC and include your name, mailing address (including zip code) and 
telephone number (including area code).
    For Application Kits. For an application kit and supplemental 
information you should call the SuperNOFA Information Center at 1-800-
HUD-8929. Persons with hearing or speech impairments may call the 
Center's TTY number at 1-800-483-2209. When requesting an application 
kit, you should refer to COPC and provide your name, address (including 
zip code), and telephone number (including area code). You may also 
download the application kit on the Internet through the HUD web site 
at http://www.hud.gov.
    For Further Information. For answers to your questions, you have 
several options. You may contact Jane Karadbil of HUD's Office of 
University Partnerships at (202) 708-1537, ext. 5918. If you have a 
speech or hearing impairment, you may call HUD's TTY number (202) 708-
0770, or 1-800-877-8399 (the Federal Information Relay Service TTY). 
Other than the ``800'' number, these numbers are not toll-free. You may 
also reach Ms. Karadbil via the Internet at Jane__R.__K[email protected].
    For Technical Assistance. HUD will hold an information broadcast 
via satellite for potential applicants to learn more about the program 
and preparation of an application. For more information about the date 
and time of this broadcast, you should consult the HUD web site at the 
web address listed above.

II. Amount Allocated

    Up to $7.5 million to fund grants under the program. This year, HUD 
will award two kinds of grants--(A) New Grants to applicants who have 
never received a COPC grant before to undertake eligible work and (B) 
New Directions Grants to fund previous COPC recipients (as identified 
in III.(B) below) to undertake new directions in their activities. 
Institutionalization Grants will not be funded under this funding 
announcement for COPC. HUD will use up to $6.6 million to fund New 
Grants and up to $900,000 to fund New Directions Grants.

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. The purpose of this COPC Program is to 
assist in establishing or carrying out outreach and applied research 
activities addressing the problems of urban areas. Funding under this 
program is used to establish and operate local Community Outreach 
Partnership Centers (COPC).
    The five key concepts that your COPC Program should include are:
    (1) You should provide outreach, technical assistance, applied 
research, and empowerment to neighborhoods and neighborhood-based 
organizations based on what the residents decide is needed, not based 
on what the institution thinks is appropriate for that neighborhood;
    (2) Community-based organizations should be your partners 
throughout the life of the project, from planning to implementation;
    (3) Your applied research should be related to the outreach 
activities and be used to influence your activities within the grant 
period or shortly after it ends. HUD will not fund research without 
practical application;
    (4) The assistance you provide should be primarily by faculty, 
students, or to a limited extent, by neighborhood residents or 
community-based organizations funded by the university; and
    (5) Your program should be part of your institution's broader 
effort to meet its urban mission, and be supported by senior officials, 
rather than just the work of a few faculty members. Your proposed 
activities should not duplicate those of other entities in the 
community and should be appropriate for an institution of higher 
education to undertake in light of its teaching and research missions.
    (B) Eligible Applicants. Eligible applicants for both New Grants 
and New Directions Grants are public or private nonprofit institutions 
of higher education granting two- or four-year degrees and accredited 
by a national or regional accrediting agency recognized by the U.S. 
Department of Education. For New Grants, only applicants that have 
never previously received a New Grant or an Institutionalization Grant 
are eligible. For New Directions Grants, only COPC grantees who 
received grants in Fiscal Years 1994, 1995, or 1996 are eligible. Joint 
Community Development Program grantees are not eligible for either kind 
of funding, nor are FY 1997 and 1998 COPC Grantees.
    Consortia of eligible institutions may apply, as long as one 
institution is designated the lead applicant. Since the Statement of 
Work and other facets of the technical review are assessed in the 
context of the proposed staffing, and in order to fund as many eligible 
applicants as possible, HUD has determined that you may be part of only 
one consortium or submit only one application or you will be 
disqualified. HUD will hold you responsible for ensuring that neither 
you nor any part of your institution, including specific faculty, 
participate in more than one application. For New Directions Grants, if 
you originally received funding as a consortium, you are not required 
to submit again with all the consortium members. Members of a 
previously approved consortium may submit on their own or as part of 
their old consortium. However, as with New Grants, only one application 
from an institution will be permitted.
    Different campuses of the same university system are eligible to 
apply, even if one campus has already received COPC funding. Such 
campuses are eligible as separate applicants only if

[[Page 9654]]

they have administrative and budgeting structures independent of other 
campuses in the system.
    (C) Eligible Activities. Your COPC Program must combine research 
with outreach, work with communities and local governments and address 
the multidimensional problems that beset urban areas. To meet the 
threshold requirements, your application should be multifaceted and 
address three or more urban problems. You should address urban problems 
associated with housing, economic development, neighborhood 
revitalization, infrastructure, health care, job training, education, 
crime prevention, planning, community organizing, and other areas 
deemed appropriate by the Secretary. Single purpose applications are 
not eligible.
    Funded research must have a clear near-term potential for solving 
specific, significant urban problems. You must have the capacity to 
apply your research results and to work with communities and local 
institutions, including neighborhood groups and other appropriate 
community stakeholders, in applying these results to specific real-life 
urban problems.
    While the list of eligible and ineligible activities is the same 
for both New Grant applicants and New Directions Grant applicants, New 
Directions Grant applicants must demonstrate that the proposed 
activities either implement new eligible projects in the current target 
neighborhood(s) or implement eligible projects in a new target 
neighborhood(s).
    Eligible activities include:
    (1) Research activities that have practical application for solving 
specific problems in designated communities and neighborhoods, 
including evaluation of the effectiveness of the outreach activities. 
In order to ensure that the primary focus of your project is on 
outreach, research may not total more than one-quarter of the total 
project costs contained in any grant made under this COPC funding 
announcement (including the required 50% match).
    (2) Outreach, technical assistance and information exchange 
activities which are designed to address specific urban problems in 
designated communities and neighborhoods. Such activities must total no 
less than three-quarters of your total project costs (including the 
required 25% match). Examples of outreach activities include, but are 
not limited to:
    (a) Job training and other training projects, such as workshops, 
seminars and one-on-one and on-the-job training;
    (b) Design of community or metropolitan strategies to resolve urban 
problems of communities and neighborhoods;
    (c) Innovative use of funds to provide direct technical expertise 
and assistance to local community groups, residents, and other 
appropriate community stakeholders to assist them in resolving local 
problems such as homelessness, housing discrimination, and impediments 
to fair housing choice;
    (d) Technical assistance in business start-up activities for low-
and moderate-income individuals and organizations, including business 
start-up training and technical expertise and assistance, mentor 
programs, assistance in developing small loan funds, business 
incubators, etc;
    (e) Technical assistance to local public housing authorities on 
welfare-to-work initiatives and physical transformations of public or 
assisted housing, including development of accessible and visitable 
housing;
    (f) Assistance to communities to improve consolidated housing and 
community development plans and remove impediments to design and 
implementation of such plans;
    (g) Assistance to communities to improve their fair housing 
planning process;
    (h) Services to assist low-income students to attend college, as 
part of the U.S. Department of Education's Gaining Awareness and 
Readiness for Undergraduate Program (GEAR UP). (For more information 
call 1-800-USA-LEARN or visit the Department of Education's website at 
www.ed.gov.); and
    (i) Regional projects that maximize the interaction of targeted 
inner city distressed neighborhoods with suburban job opportunities 
similar to HUD's Bridges-to-Work or Moving to Opportunity programs.
    (3) Funds for faculty development including paying for course time 
or summer support to enable faculty members to work on the COPC.
    (4) Funds for stipends for students (which cannot cover tuition and 
fees) when they are working on the COPC.
    (5) Activities to carry out the ``Responsibilities'' listed under 
Section IV(B) below. These activities may include leases for office 
space in which to house the Community Outreach Partnership Center, 
under the following conditions:
    (a) The lease must be for existing facilities not requiring 
rehabilitation or consultation;
    (b) No repairs or renovations of the property may be undertaken 
with Federal funds; and
    (c) Properties in the Coastal Barrier Resource System designated 
under the Coastal Barrier Resources Act (16 U.S.C. 3501) cannot be 
leased with Federal funds.
    (6) Components of your program may address metropolitan or regional 
strategies. You must clearly demonstrate how:
    (a) Your strategies are directly related to what the targeted 
neighborhoods and neighborhood-based organizations have decided is 
needed; and
    (b) Neighborhoods and neighborhood organizations are involved in 
the development and implementation of the metropolitan or regional 
strategies.
    (D) Ineligible Activities. (1) Research activities that have no 
clear and immediate practical application for solving urban problems or 
do not address specific problems in designated communities and 
neighborhoods.
    (2) Any type of construction, rehabilitation, or other physical 
development costs.
    (3) Costs used for routine operations and day-to-day administration 
of institutions of higher education, local governments or neighborhood 
groups.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, grantees must meet the following program 
requirements:
    (A) Grant Sizes and Terms. Each New Grant will be for a three-year 
period. In order to ensure that as many eligible applicants are funded 
as possible, HUD has set the maximum size of any New Grant at $400,000. 
Because these projects are quite complex, HUD has also set the minimum 
grant size at $250,000. Since the Statement of Work and other facets of 
the technical review are assessed in the context of the proposed budget 
and grant request, and in the interest of fairness to all applicants, 
HUD will not accept a New Grant application that is under $250,000 or 
over $400,000.
    Each New Directions Grant will be for a two-year period. HUD has 
set the maximum size of any New Directions Grant at $150,000. Since the 
Statement of Work and other facets of the technical review are assessed 
in the context of the proposed budget and grant request, and in the 
interest of fairness to all applicants, HUD will not accept a New 
Directions application that is over $150,000.
    (B) Responsibilities. You are required to:
    (1) Employ the research and outreach resources of your institution 
of higher education to solve specific urban

[[Page 9655]]

problems identified by communities served by your Center;
    (2) Establish outreach activities in areas identified in your 
application as the communities to be served;
    (3) Establish a community advisory committee comprised of 
representatives of local institutions and residents of the communities 
to be served to assist in identifying local needs and advise on the 
development and implementation of strategies to address those issues;
    (4) Coordinate outreach activities in communities to be served by 
your Center;
    (5) Facilitate public service projects in the communities served by 
your Center;
    (6) Act as a clearinghouse for dissemination of information;
    (7) Develop instructional programs, convene conferences, and 
provide training for local community leaders, when appropriate; and
    (8) Exchange information with other Centers.
    The clearinghouse function in (6) above refers to a local or 
regional clearinghouse for dissemination of information and is separate 
and distinct from the functions in (8) above, which relate to the 
provision of information to the University Partnerships Clearinghouse, 
which is the national clearinghouse for the program.
    (C) Cap on Research Costs. No more than 25% of your total project 
costs (Federal share plus match) can be spent on research activities.
    (D) Match. The non-Federal share may include cash or the value of 
non-cash contributions, equipment and other allowable in-kind 
contributions as detailed in 24 CFR part 84, and in particular 
Sec. 84.23 entitled ``cost sharing or matching.'' You may not count as 
match any costs that would be ineligible for funding under the program 
(e.g., housing rehabilitation).
    (1) If you are a New Grant applicant, you must meet the following 
match requirements:
    (a) Research Activities. 50% of the total project costs of 
establishing and operating research activities.
    (b) Outreach Activities. 25% of the total project costs of 
establishing and operating outreach activities.
    (2) If you are a New Directions Grant applicant, you must meet the 
following match requirements:
    (a) Research Activities. 60% of the total project costs of 
establishing and operating research activities.
    (b) Outreach Activities. 35% of the total project costs of 
establishing and operating outreach activities.
    An example of how you should calculate the match is included in the 
application kit.
    (E) Administrative. Your grant will be governed by the provisions 
of 24 CFR part 84 (Grants and Agreements with Institutions of Higher 
Education, Hospitals, and Other Non-Profit Organizations), A-21 (Cost 
Principles for Education Institutions), and A-133 (Audits of States, 
Local Governments, and Non-Profit Organizations. You may not spend more 
than 20% of your grant on planning or administrative costs. The 
application kit contains a detailed explanation of what these costs 
are. You can access the OMB circulars at the White House website at 
http://whitehouse.gov/WH/EOP/OMB/html/circulars.

V. Application Selection Process

    There will be two separate competitions--one for New Grants and one 
for New Directions Grants. For each type of grant, applications will be 
rated, ranked, and selected separately. Two types of reviews will be 
conducted: a threshold review to determine your applicant eligibility; 
and a technical review to rate your application based on the rating 
factors in this Section, paragraph C below.
    (A) Additional Threshold Requirements For Funding Consideration. 
Under the threshold review, you will be rejected from the competition 
if you are not in compliance with the requirements of the General 
Section of the SuperNOFA or if you do not meet the following additional 
standards:
    (1) You have met the statutory match requirements, if applying for 
a New Grant or the higher match levels described above, if applying for 
a New Directions Grant.
    (2) You have proposed a program in which at least 75% of the total 
project costs will be for outreach activities.
    (3) For New Grants, you have requested a Federal grant between 
$250,000 and $400,000 over the three-year grant period. For New 
Directions Grants, you have requested a Federal grant that is no more 
than $150,000 over the two-year grant period.
    (4) You have addressed at least three urban issues, such as 
affordable housing, fair housing, economic development, neighborhood 
revitalization, infrastructure, health care; job training, education, 
crime prevention, planning, and community organizing.
    (5) You and any part of your organization are participating in only 
one application.
    (B) Factors For Award Used To Evaluate and Rate Applications. The 
factors for rating and ranking applicants, and maximum points for each 
factor, are provided below. The maximum number of points for this 
program is 102. This includes two EZ/EC bonus points, as described in 
the General Section of the SuperNOFA.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (15 Points)
    This factor addresses the extent to which you have the 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner. In rating this factor HUD will 
consider the extent to which the proposal demonstrates:
    (1) For New Grants (15 points): For New Direction Grants (10 
points).
    (a) The knowledge and experience of your overall proposed project 
director and staff, including the day-to-day program manager, 
consultants and contractors in planning and managing programs for which 
funding is being requested. Experience will be judged in terms of 
recent, relevant and successful experience of your staff to undertake 
eligible program activities. In rating this factor, HUD will consider 
experience within the last 5 years to be recent; experience pertaining 
to the specific activities being proposed to be relevant; and 
experience producing specific accomplishments to be successful. The 
following categories will be evaluated:
    (i) Undertaking research activities in specific communities that 
have a clear near-term potential for practical application to 
significant urban issues, such as affordable housing, fair housing 
including accessible and visitable housing, economic development, 
neighborhood revitalization, infrastructure, health care, job training, 
education, crime prevention, planning, and community organizing;
    (ii) Undertaking outreach activities in specific communities to 
solve or ameliorate significant urban issues;
    (iii) Undertaking projects with community-based organizations or 
local governments; and
    (iv) Providing leadership in solving community problems and making 
national contributions to solving long-term and immediate urban 
problems.
    (2) For New Directions Grants only (5 points). The extent to which 
you performed successfully under your previous COPC grant(s), as 
measured by:
    (a) Your achievement of specific measurable outcome objectives; and
    (b) Your leveraging of funding beyond the funds originally proposed 
to be leveraged for that project.

[[Page 9656]]

Rating Factor 2: Need/Extent of the Problem (15 Points)
    This factor addresses the extent to which there is a need for 
funding your proposed program activities and your indication of the 
urgency of meeting the need in the target area. In responding to this 
factor, you will be evaluated on the extent to which you document the 
level of need for the proposed activity and the urgency in meeting the 
need.
    You should use statistics and analyses contained in a data 
source(s) that:
    (1) Is sound and reliable. To the extent that the targeted 
community's Consolidated Plan and Analysis of Impediments to Fair 
Housing Choice (AI) identify the level of the problem and the urgency 
in meeting the need, you should include references to these documents 
in your response. The Department will review your application more 
favorably if you used these documents to identify need, when 
applicable.
    If the proposed activity is not covered under the scope of the 
Consolidated Plan and Analysis of Impediments to Fair Housing Choice 
(AI), you should indicate such, and use other sound data sources to 
identify the level of need and the urgency in meeting the need. Types 
of other sources include Census reports, Continuum of Care gaps 
analysis, law enforcement agency crime reports, Public Housing 
Authorities' Comprehensive Plan, and other sound and reliable sources 
appropriate for your program. You may also address needs in terms of 
fulfilling court orders or consent decrees, settlements, conciliation 
agreements, and voluntary compliance agreements.
    (2) To the extent possible, the data you use should be specific to 
the area where the proposed activity will be carried out. You should 
document needs as they apply to the area where activities will be 
targeted, rather than the entire locality or state, unless the target 
area is an entire locality or state.
Rating Factor 3: Soundness of Approach (50 Points)
    This factor addresses the quality and cost-effectiveness of your 
proposed work plan. There must be a clear relationship between your 
proposed activities, community needs and the purpose of the program 
funding for you to receive points for this factor. The factor will be 
evaluated based on the extent to which the proposed work plan will:
    (1) (10 points) Identify the specific services or activities to be 
performed. In reviewing this subfactor HUD will consider the extent to 
which:
    (a) Your proposal outlines a clear research agenda, based on your 
familiarity with existing research on the subject.
    (b) You demonstrate how the research will fit into and strengthen 
the outreach strategy and activities. For example, if you propose to 
study the extent of housing abandonment in a neighborhood and then 
design a plan for reusing this housing, you would be able to 
demonstrate the link between your proposed research and outreach 
strategies.
    (c) Your plan outlines a clear outreach agenda and there is a plan 
for involving your institution as a whole in the execution of your 
outreach strategy. Your outreach program should provide for on-site or 
a frequent presence in the targeted communities and neighborhoods.
    (d) Your outreach agenda includes training projects for local 
community leaders, for example, to increase their capacity to direct 
their organizations or undertake various kinds of community development 
projects.
    (e) You demonstrate that your proposed research and outreach 
activities do not duplicate research and outreach previously completed 
or currently underway by others.
    (f) You propose activities that are appropriate for an institution 
of higher education because they are tied to the institution's teaching 
or research mission.
    (2) (9 points) Involve the communities to be served in 
implementation of your activities. In reviewing this subfactor, HUD 
will look at the extent to which:
    (a) You have formed or will form one or more Community Advisory 
Committees, comprised of representatives of local institutions and a 
balance of the race, ethnic, disability status, gender, and income of 
the residents of the communities to be served to develop and implement 
strategies to address the needs identified in Factor 2. You will be 
expected to demonstrate that you have already formed such a 
committee(s) or secured the commitment of the appropriate persons to 
serve on the committee(s), rather than just describing generally the 
types of people whose involvement you will seek.
    (b) You have involved a wide range of neighborhood organizations 
and local government entities in the identification of your research 
and outreach activities.
    (3) (5 points) Help solve or address an urgent problem as 
identified in Rating Factor 2 and will achieve the purposes of the 
program within the grant period. In reviewing this subfactor, HUD will 
look at the extent to which:
    (a) You identify specific time phased and measurable objectives to 
be accomplished; your proposed short and long term program objectives 
to be achieved as a result of the proposed activities; the tangible and 
measurable impacts your work program will have on the community in 
general and the target area or population in particular including 
affirmatively furthering fair housing for classes protected under the 
Fair Housing Act; and the relationship of your proposed activities to 
other on-going or proposed efforts to improve the economic, social or 
living environment in the impact area; and
    (b) Grant funds will pay for activities you conduct directly, 
rather than passing funds through to other entities.
    (4) (4 points) Potentially yield innovative strategies or ``best 
practices'' that can be replicated and disseminated to other 
organizations, including nonprofit organizations, State and local 
governments. In reviewing this subfactor, HUD will assess your 
demonstrated ability to disseminate results of research and outreach 
activities to other COPCs and communities. HUD will evaluate your past 
experience and the scope and quality of your plan to disseminate 
information on COPC results, strategies, and lessons learned through 
such means as conferences, cross-site technical assistance, 
publications, etc.
    (5) (8 points)
    (a) (3 points) Further and support the policy priorities of HUD 
including:
    (i) Promoting healthy homes;
    (ii) Providing opportunities for self-sufficiency, particularly for 
persons enrolled in welfare to work programs;
    (iii) Enhancing on-going efforts to eliminate drugs and crime from 
neighborhoods through program policy efforts such as ``One Strike and 
You're Out'' or the ``Officer Next Door'' initiative;
    (iv) Providing educational and job training opportunities through 
such initiatives as Neighborhood Networks, Campus of Learners and 
linking to AmeriCorps activities.
    (b) (5 points) Include activities that affirmatively further fair 
housing, for example:
    (i) Working with other entities in the community to overcome 
impediments to fair housing, such as discrimination in the sale or 
rental of housing or in advertising, provision of brokerage services, 
or lending;
    (ii) Promoting fair housing choice through the expansion of 
homeownership opportunities and improved quality of services for 
minorities, families with children, and persons with disabilities; or

[[Page 9657]]

    (iii) Providing housing mobility counseling services.
    (6) For New Grants (14 points): For New Directions Grants (9 
points). Result in the COPC function and activities becoming part of 
the urban mission of your institution and being funded in the future by 
sources other than HUD. In reviewing this subfactor, HUD will consider 
the extent to which:
    (a) COPC activities relate to your institution's urban mission; are 
part of a climate that rewards faculty work on these activities through 
promotion and tenure policies; benefit students because they are part 
of a service learning program at your institution (rather than just 
volunteer activities); and are reflected in your curriculum. HUD will 
look at your institution's commitment to faculty and staff continuing 
work in COPC neighborhoods or replicating successes in other 
neighborhoods and to your longer term commitment (e.g., five years 
after the start of the COPC) of hard dollars to COPC work.
    (b) You have received commitments for funding from sources outside 
the university for related COPC-like projects and activities in the 
targeted neighborhood or other distressed neighborhoods. Funding 
sources to be considered include, but are not limited to, local 
governments, neighborhood organizations, private businesses, and 
foundations.
    (7) For New Direction Grants only (5 points). Previous grantees 
have a wealth of knowledge that they can and should share with other 
institutions. If you send a faculty member of your team who has been 
listed in your application to participate in the peer review process 
for New Grants, you will receive 5 points .
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses the ability of the applicant to secure 
community resources which can be combined with HUD's program resources 
to achieve program purposes. This factor measures the extent to which 
you have established partnerships with other entities to secure 
additional resources to increase the effectiveness of your proposed 
program activities. Resources may include funding or in-kind 
contributions, such as services or equipment, allocated to the 
purpose(s) of the award you are seeking. Resources may be provided by 
governmental entities, public or private nonprofit organizations, for-
profit private organizations, or other entities willing to establish 
partnerships with you. You may also establish partnerships with funding 
recipients in other grant programs to coordinate the use of resources 
in the target area. In evaluating this factor, HUD will allocate points 
as follows:
    (1) Up to a total of 5 points will be awarded for a match that is 
50% over the required match, as described in Section IV D above.
    The Department is concerned that applicants should be providing 
hard dollars as part of their matching contributions to enhance the 
tangible resources going into targeted neighborhoods. Thus, while 
indirect costs can count towards meeting the required match, they will 
not be used in calculating match overage. Only direct costs can count 
in this factor.
    (2) Up to an additional 5 points will be awarded for the extent to 
which you document that matching funds are provided from eligible 
sources other than your institution (e.g., funds from the city, 
including CDBG, other State or local government agencies, public or 
private organizations, or foundations).
    You must provide evidence of leveraging/partnerships by including 
in the application letters of firm commitment, memoranda of 
understanding, or agreements to participate from those entities 
identified as partners in the application. Each letter of commitment, 
memorandum of understanding, or agreement to participate should include 
the organization's name, proposed level of commitment and 
responsibilities as they relate to the proposed program. The commitment 
must also be signed by an official of the organization legally able to 
make commitments on behalf of the organization. Unless matching funds 
are accompanied by a commitment letter, they will not be counted 
towards the match.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you coordinated your 
activities with other known organizations, participate or promote 
participation in your community's Consolidated Planning process, and 
are working towards addressing a need in a holistic and comprehensive 
manner through linkages with other activities in the community.
    In evaluating this factor, HUD will consider the extent to which 
you have:
    (1) (4 points) Coordinated your proposed activities with those of 
other groups or organizations prior to submission in order to best 
complement, support and coordinate all known activities and, if funded, 
the specific steps you will take to share information on solutions and 
outcomes with others. Any written agreements, memoranda of 
understanding in place, or that will be in place after award should be 
described.
    (2) (3 points) Taken or will take specific steps to become active 
in the community's Consolidated Planning process (including the 
Analysis of Impediments to Fair Housing Choice) established to identify 
and address a need/problem that is related to the activities the 
applicant proposes.
    (3) (3 points) Taken or will take specific steps to develop 
linkages to coordinate comprehensive solutions through meetings, 
information networks, planning processes or other mechanisms with:
    (a) Other HUD-funded projects/activities outside the scope of those 
covered by the Consolidated Plan; and
    (b) Other Federal, State or locally funded activities, including 
those proposed or on-going in the community.
    (C) Selections. In order to be funded under COPC, you must receive 
a minimum score of 70. HUD intends to fund at least one eligible 
applicant that serves colonias, as defined by section 916(d) of the 
Cranston-Gonzalez National Affordable Housing Act, as long as the 
applicant receives a minimum score of 70.
    If two or more applications have the same number of points, the 
application with the most points for Factor 3, Soundness of Approach, 
shall be selected. If there is still a tie, the application with the 
most points for Factor 4, Leveraging Resources shall be selected.
    HUD reserves the right to make selections out of rank order to 
provide for geographic distribution of funded COPCs. If HUD decides to 
use this option, it will do so only if two adjacent HUD regions do not 
yield at least one fundable COPC on the basis of rank order. If this 
occurs, HUD will fund the highest ranking applicant within the two 
regions as long as the minimum score of 70 points is achieved.
    After all applications have been rated and ranked and selections 
have been made, HUD may require you, if you are selected, to 
participate in negotiations to determine the specific terms of your 
Statement of Work and grant budget. In cases where HUD cannot 
successfully conclude negotiations, or you fail to provide HUD with 
requested information, an award will not be made. In such instances, 
HUD may elect to offer an award to the next highest ranking applicant, 
and proceed with negotiations with that applicant.
    After award but before grant execution, if you are selected, you 
will be required to provide a certification

[[Page 9658]]

from an Independent Public Accountant or the cognizant government 
auditor, stating that the financial management system employed by your 
institution meets proscribed standards for fund control and 
accountability required by OMB Circular A-133, Audits of States, Local 
Governments, and Non-Profit Organizations, or 24 CFR part 84, Grants 
and Agreements with Institutions of Higher Education, Hospitals, and 
Other Non-Profit Organizations, or the Federal Acquisition Regulations 
(for all other applicants). This information should contain the name 
and telephone number of the Independent Auditor, cognizant Federal 
auditor, or other audit agency, as applicable.

VI. Application Submission Requirements

    You should include an original and two copies of the items listed 
below. In order to be able to recycle paper, please do not submit 
applications in bound form; binder clips or loose leaf binders are 
acceptable. Also, please, do not use colored paper. Please note the 
page limits for some of the items listed below and do not exceed them.
    In addition to the forms, certifications and assurances listed in 
Section II(G) of the General Section, your application must, at a 
minimum, contain the following items:
    (A) Transmittal Letter signed by the Chief Executive Officer of 
your institution or his or her designee. If a designee signs, your 
application must include the official delegation of signatory 
authority;
    (B) A Statement of Work (25 page limit) incorporating all 
activities to be funded in your application and details how your 
proposed work will be accomplished. Following a task-by-task format, 
the Statement of Work must:
    (1) Arrange the presentation of related major activities by project 
functional category (e.g., economic development, affordable housing, 
capacity building), summarize each activity, identify the primary 
persons involved in carrying out the activity, and delineate the major 
tasks involved in carrying it out.
    (2) Indicate the sequence in which the tasks are to be performed, 
noting areas of work which must be performed simultaneously.
    (3) Identify specific numbers of quantifiable intermediate and end 
products and objectives you will deliver by the end of the award 
agreement period as a result of the work performed.
    (C) Narrative statement addressing the Factors for Award in Section 
V (B). (25 page limit, including tables and maps, but not including 
letters of matching commitments). Your narrative response should be 
numbered in accordance with each factor and subfactor. Please do not 
repeat material in your Statements of Work or Need; instead focus on 
how you meet each factor.
    (D) Budget. Your budget presentation should be consistent with your 
Statement of Work and include:
    (1) Budget Form--The sample budget form included in the application 
kit should be used to prepare the budget.
    (2) A narrative explanation of how you arrived at your cost 
estimates, for any line item over $5,000.
    (3) A statement of your compliance with the 20% limitation on 
``Planning and Administration'' Costs.
    (4) An explanation of your compliance with the requirement that not 
more than 25% of the total budget be allocated to research activities.
    (5) An explanation of your compliance with the matching 
requirements. More guidance on all of these items is included in the 
application kit.
    (E) Abstract. (1 page limit) An abstract describing the goals and 
activities of your program.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    In accordance with 24 CFR 50.19(b) of the HUD regulations, 
activities assisted under this program are categorically excluded from 
the requirements of the National Environmental Policy Act and are not 
subject to environmental review under the related laws and authorities.

IX. Authority

    This program is authorized under the Community Outreach Partnership 
Act of 1992 (42 U.S.C. 5307 note; hereafter referred to as the ``COPC 
Act''). The COPC Act is contained in section 851 of the Housing and 
Community Development Act of 1992 (Pub.L. 102-550, approved October 28, 
1992) (HCD Act of 1992). Section 801(c) of the HCD Act of 1992 
authorizes $7.5 million for each year of the 5-year demonstration to 
create Community Outreach Partnership Centers as authorized in the COPC 
Act. The HUD, VA and Independent Agencies Appropriations Act of 1999 
(Pub.L. 105-276, approved October 21, 1998) continued the program 
beyond the initial five-year demonstration by providing funding for it 
for FY 1999.

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Funding Availability for the Historically Black Colleges and 
Universities Program

Program Overview

    Purpose of the Program. To assist HBCUs expand their role and 
effectiveness in addressing community development needs in their 
localities, including neighborhood revitalization, housing, and 
economic development, consistent with the purposes of Title I of the 
Housing and Community Development Act of 1974, as amended.
    Available Funds. Approximately $9 million.
    Eligible Applicants. Only HBCUs as determined by the Department of 
Education in 34 CFR 608.2 in accordance with that Department's 
responsibilities under Executive Order 12876, dated November 1, 1993, 
are eligible for funding under the HBCU Program.
    Application Deadline. June 9, 1999.
    Match: None

Additional Information

    If you are interested in applying for funding under the HBCU 
program, please review carefully the General Section of this SuperNOFA 
and the following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Your completed application is due on or 
before 12:00 midnight, Eastern time on June 9, 1999, at HUD 
Headquarters with a copy to the appropriate HUD CPD Field Office. See 
the General Section of this SuperNOFA for specific procedures covering 
the form of application submission (e.g., mailed applications, express 
mail, overnight delivery, or hand carried).
    Address for Submitting Applications. Submit your original signed 
application and one copy to the following address: Processing and 
Control Branch, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW, 
Room 7251, Washington, DC, 20410. When submitting your application, 
please refer to the HBCU Program, and include your name, mailing 
address (including zip code) and telephone number (including area 
code).
    Copies of Applications to HUD Offices. To facilitate processing and 
review of your application, submit one copy to the Community Planning 
and Development (CPD) Director in the appropriate HUD Field Office for 
the HBCU. The list of HUD Field Offices is included in the application 
kit.
    HUD will accept only one application per HBCU. If HUD receives more 
than one application from a single HBCU, the application that was 
received earliest will be considered for funding. All others are 
ineligible. If HUD receives more than one application simultaneously 
from an HBCU then all applications will be considered ineligible for 
funding. You should take this policy into account to ensure that 
multiple applications are not submitted.
    For Application Kits. For an application kit and any supplemental 
information, you should call the SuperNOFA Information Center at 1-800-
HUD-8929. If you have a hearing or speech impairment please call the 
Center's TTY number at 1-800-843-2209. When requesting an application 
kit, you should refer to the HBCU Program and provide your name, 
address (including zip code), and telephone number (including area 
code). You may also download the application on the Internet through 
the HUD web site at http://www.hud.gov.
    For Further Information. For answers to your questions, you have 
several options. You may call Ms. Delores Pruden, Historically Black 
Colleges and Universities Program, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
St, SW, Washington, DC 20410; telephone (202) 708-1590. (This is not a 
toll-free number.) If you have a hearing or speech impairment, you may 
access this number via TTY by calling the Federal Information Relay 
Service toll-free at 1-800-877-8339. You may also obtain information 
from the HUD Field Office located in your geographic area. The 
application kit contains the names, addresses and telephone numbers of 
the HUD Field Offices. For general information and information 
regarding training on this HBCU Program section of the SuperNOFA, you 
can call the SuperNOFA Information Center at 1-800-HUD-8929.

II. Amount Allocated

    (A) In order to ensure that some previously unfunded HBCUs will 
receive awards in this competition, approximately one-fourth of the 
available funds will be awarded to HBCUs that have not previously been 
funded under the HUD HBCU program. (The FY 1991 competition was the 
first funded under the current HBCU Program authorization, section 
107(b)(3) of the Housing and Community Development Act of 1974.) 
Therefore, of the $9 million in FY 1999 funds made available under this 
SuperNOFA for the HBCU Program:
    (1) Approximately $2,250,000 million will be awarded to HBCUs that 
have not received funding in past HUD HBCU competitions under section 
107(b)(3) of the Housing and Community Development Act of 1974, as 
amended. This includes competitions for Fiscal Years 1991 through 1998 
(``previously unfunded HBCUs''). Previously unfunded HBCUs are listed 
in Appendix A of this HBCU Program section of the SuperNOFA.
    (2) The remaining approximately $6,750,000 million of FY 1999 funds 
will be awarded to HBCUs that have received funding under such 
competitions (``previously funded HBCUs''). Previously funded HBCUs are 
listed in Appendix B of this HBCU Program section of the SuperNOFA.
    If recaptured funds are made available, those funds will also be 
divided proportionately between the two types of applicant funding 
pools; i.e. one fourth to previously unfunded HBCUs and three fourths 
to previously funded HBCUs.
    HUD reserves the right to make awards for less than the maximum 
amount or less than the amount requested in a particular application. 
Awards will be made in the form of grants. The maximum amount awarded 
to previously unfunded applicants will be $400,000 and the maximum 
amount awarded to previously funded applicants will be $500,000.
    (B) The maximum period for performance of your proposed program 
under this SuperNOFA for the HBCU Program is 24 months. The performance 
period will commence on the effective date of your grant agreement.

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. Approximately $9,000,000 is available in 
funding for the Historically Black Colleges and Universities (HBCU) 
Program. The HBCU Program assists HBCUs expand their role and 
effectiveness in addressing community development needs in their 
localities, including neighborhood revitalization, housing, and 
economic development, consistent with the purposes of Title I of the 
Housing and Community Development Act of 1974, as amended.
    (1) For the purposes of this program, the term ``locality'' 
includes any city, county, town, township, parish, village, or other 
general political subdivision of a State or the U.S. Virgin Islands 
within which an HBCU is located.
    (2) If your HBCU is located in a metropolitan statistical area 
(MSA), as established by the Office of Management and Budget, you may 
consider your

[[Page 9662]]

locality to be one or more of these entities within the entire MSA. The 
nature of the locality for each HBCU may differ, therefore, depending 
on its location.
    (3) A ``target area'' is the locality or the area within the 
locality in which your HBCU will implement its proposed HUD grant 
activities.
    (B) Eligible Applicants. Only HBCUs as determined by the Department 
of Education in 34 CFR 608.2 in accordance with that Department's 
responsibilities under Executive Order 12876, dated November 1, 1993, 
are eligible for funding under the HBCU Program. As indicated above, 
funds available under this program will be split between two classes of 
HBCU applicant, which will be rated, ranked, and selected separately.
    (1) The first category of eligible applicant, previously unfunded 
HBCUs, includes HBCUs that have not received funding under section 
107(b)(3)13 of the Housing and Community Development Act of 1974, which 
includes competitions for Fiscal Years 1991 through 1998.
    (2) The second category, previously-funded HBCUs, includes HBCUs 
that have received funding in past HUD HBCU competitions. Lists of 
previously unfunded HBCUs and previously funded HBCUs appear as 
Appendices A and B to the HBCU Program section of the SuperNOFA. HUD 
will use these lists to determine in which category your application 
should be considered.
    (C) Eligible Activities. (1) General. Each activity you propose for 
funding must meet both a Community Development Block Grant (CDBG) 
Program national objective AND the CDBG eligibility requirements. 
Eligible activities that may be funded under the HBCU Program are those 
activities eligible for CDBG funding. The activities are listed in 24 
CFR part 570, subpart C, particularly Secs. 570.201 through 570.206. 
Ineligible activities are listed at Sec. 570.207. If you propose an 
activity which otherwise is eligible it may not be funded if State or 
local law requires that it be carried out by a governmental entity.
    HUD will not fund specific proposed activities that do not meet 
eligibility requirements (see, particularly, 24 CFR part 570, subpart 
C), or that do not meet a national objective in accordance with 24 CFR 
570.208. The CDBG Publication entitled ``Everything You Wanted to Know 
About CDBG'' discusses the regulations, and a copy can be ordered from 
HUD's SuperNOFA Information Center at 1-800-HUD-8929. Each activity 
that may be funded under this SuperNOFA for the HBCU Program must meet 
one of the three national objectives of the Community Development Block 
Grant program which are:
    (a) Benefit to low- or moderate-income persons;
    (b) Aid in the prevention or elimination of slums or blight; or
    (c) Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    Criteria for determining whether an activity addresses one or more 
of these objectives are provided at 24 CFR 570.208. (It is not 
necessary for you to comply with the requirement that not less than 70% 
of the grant expenditures be for activities benefiting low and moderate 
income persons).
    (2) Examples of Eligible Activities. Examples of activities that 
generally can be carried out with these funds include, but are not 
limited to:
    (a) Acquisition of real property;
    (b) Clearance and demolition;
    (c) Rehabilitation of residential structures to increase housing 
opportunities for low- and moderate-income persons and rehabilitation 
of commercial or industrial buildings to correct code violations or for 
certain other purposes; e.g., making accessibility and visitability 
modifications to housing. If you are proposing to undertake this 
activity, you will be required to provide reasonable estimates, from a 
qualified entity other than your university, of the cost to complete 
projects. Such an entity must be involved in the business of housing 
rehabilitation, construction and/or management;
    (d) Direct homeownership assistance to low- and moderate-income 
persons, as provided in section 105(a)(25) of the Housing and Community 
Development Act of 1974;
    (e) Acquisition, construction, reconstruction, rehabilitation, or 
installation of public facilities and improvements, such as water and 
sewer facilities and streets. If you are proposing to undertake this 
activity, you will be required to provide reasonable estimates, from a 
qualified entity other than you, of the cost to complete projects. Such 
an entity must be involved in the business of housing rehabilitation, 
construction and/or management;
    (f) Special economic development activities described at 24 CFR 
570.203;
    (g) Eligible public service activities, including activities that 
provide a continuum of care for the homeless; adult basic education 
classes; GED preparation and testing; HBCU curriculum development of 
courses which will lead to a certificate or degree in community 
planning and development; job and career counseling and assessment; 
citizen participation academies, and public access telecommunications 
centers including ``Campus of Learners'' (COL) and ``Neighborhood 
Networks'' (NN); social and medical services; fair housing services 
designed to further the fair housing objectives of the Fair Housing Act 
(42 U.S.C. 3601-20) by making all persons, without regard to race, 
color, religion, sex, national origin, family status and/or disability 
aware of the range of housing opportunities available to them; and/ or 
other support activities for low- and moderate-income residents, senior 
citizens and youth, including the U.S. Department of Education's 
Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR 
UP). (For more information regarding GEAR UP, call 1-800-USA-LEARN or 
visit the Department of Education's website at www.ed.gov);
    (h) Assistance to facilitate economic development by providing 
technical or financial assistance for the establishment, stabilization, 
and expansion of microenterprises, including minority enterprises;
    (i) Establishment of a Community Development Corporation (CDC) to 
undertake eligible activities;
    (j) Assistance to a community based development organization (CBDO) 
to carry out a CDBG neighborhood revitalization, community economic 
development, or energy conservation project, in accordance with 24 CFR 
570.204. This could include activities in support of a HUD approved 
local CDBG Neighborhood Revitalization Strategy (NRS) or HUD approved 
State CDBG Community Revitalization Strategy (CRS). If you are 
proposing a Community Development Corporation (CDC) component, it may 
qualify for CBDO activities; and
    (k) Program administration costs related to the planning and 
execution of community development activities assisted in whole or in 
part with grant funds. In order to enhance the capacity of HBCUs 
eligible under this SuperNOFA, you may propose to use up to 10% of the 
award funds to acquire technical assistance (TA) from a qualified TA 
provider to assist you in implementing your proposed activities. While 
you are responsible for ensuring that potential TA providers are 
qualified, we would expect that the most qualified providers would be

[[Page 9663]]

entities/organizations that have demonstrated the expertise and 
capacity to successfully conceptualize, develop and implement community 
and economic development projects and initiatives similar to those you 
propose. Previously unfunded HBCUs are particularly encouraged to 
consider acquiring technical assistance from a qualified HBCU TA 
provider, as described in the paragraph below entitled ``Partnering 
With A Qualified HBCU Technical Assistance (TA) Provider.''
    (3) Activities Designed to Promote Training and Employment 
Opportunities. In selecting proposed eligible activities, we urge you 
to consider undertaking activities designed to promote opportunities 
for training and employment of low-income residents in connection with 
HUD initiatives such as ``Campus of Learners'' (COL) in public housing 
and ``Neighborhood Networks'' (NN) in other Federally-assisted or 
insured housing. We also encourage you, whenever feasible, to propose 
implementing activities in a Federally-designated Urban or Rural (HUD 
or Department of Agriculture) Empowerment Zone, Urban or Rural 
Enterprise Community (EZ or EC), or a HUD-approved local CDBG 
Neighborhood Revitalization Strategy Area or HUD-approved State CDBG 
Community Revitalization Strategy Area.
    (4) Use of Grant Funds for Acquisition of Computer Hardware and 
Software. We encourage you to propose the use of grant funds, at 
reasonable levels, for the acquisition of computer hardware and 
software compatible with Internet access and HUD's Community Planning 
2020 Software, if you do not currently have such capability. You may 
obtain more information on the Community 2020 Software from your local 
HUD Community Planning and Development Office.
    (5) Use of Grant Funds for the Provision of Public Services. If you 
plan to use grant funds to provide public services, you are bound by 
the statutory requirement that not more than 15% of the total grant 
amount be used for public service activities. Therefore, you must 
propose to use at least 85% of the grant amount for activities 
qualifying under an eligibility category other than public services (as 
described at 24 CFR 570.201(e)). While HUD encourages HBCUs to use a 
portion of their grant funds for curriculum development of courses that 
would lead to a certificate or degree in community planning and 
development, this activity is considered a public service and subject 
to the public service cap of 15%.
    (6) Partnering With A Qualified HBCU Technical Assistance (TA) 
Provider. In order to foster further partnerships between HBCUs, you 
are encouraged to propose using a portion of the award funds to acquire 
technical assistance from a qualified HBCU to assist you to develop and 
implement the proposed activities. The cost for the technical 
assistance must be for post award assistance and must be deemed by HUD 
as necessary and reasonable for the purposes of the grant. Under no 
circumstances may an applicant use more than 10 percent of the total 
HUD grant (not including matching funds, if any) to purchase technical 
assistance. While you are responsible for ensuring that potential TA 
providers are qualified, we would expect that the most qualified HBCU 
TA providers would be previously funded HBCUs that have demonstrated 
the expertise and capacity to successfully conceptualize, develop and 
implement community and economic development projects and initiatives, 
particularly by successfully carrying out activities funded under the 
HUD HBCU Program.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, you are subject to the following 
requirements:

(A) Leveraging

    Although a match is not required to qualify for funding, if you 
claim a match, you must provide letters or other documentation 
evidencing the extent and firmness of commitments of a match from other 
Federal (e.g., Americorps Programs), State, local, and/or private 
sources (including the applicant's own resources). These letters or 
documents must be dated no earlier than the date of this published 
SuperNOFA. If you have evidence in support of the proposed match 
commitment, then you are eligible for more rating points than those 
applicants not having a firm commitment for a match.
Potential Sources of Assistance
     State and local governments.
     Housing Authorities.
     Local or national nonprofit organizations.
     Banks and private businesses.
     Foundations.
     Faith Communities.
Documentation Requirements
    For each match, cash or in kind, you must submit a letter from the 
provider on the provider's letterhead. Number each letter as a page in 
your application. For each match, include a letter from the provider 
that addresses the following:
     The dollar amount or dollar value of the in-kind goods 
and/or services committed. For each cash match, the dollar amount in 
the commitment letter must be consistent with the dollar amount you 
indicated on the Standard Form (SF) 424 and in the Budget-By-Task;
     How the match is to be used;
     The date the match will be made available and a statement 
that it will be for the duration of the grant period;
     Any terms and conditions affecting the commitment, other 
than receipt of a HUD HBCU Grant; and
     The signature of the appropriate executive officer 
authorized to commit the funds and/or goods and/or services. (See the 
application kit for a sample commitment letter.)

(B) Forms, Certifications and Assurances

    The following forms, certifications and assurances are required to 
be submitted with your application:
    (1) Standard Form (SF) 424 Application for Federal Assistance;
    (2) Standard Form (SF) 424 B for Non-Construction Programs;
    (3) Applicant Certification;
    (4) Certification of Consistency with the Local Consolidated Plan; 
and
    (5) Letter Certifying Local Approval.
    (6) Certification Form for EZ/EC bonus points. These bonus points 
will only be awarded when the HBCU is located within the geographic 
boundaries of a high performing EZ/EC.

(C) Employment of Local Area Residents (Section 3)

    Please see Section II(E) of the General Section of this SuperNOFA. 
The requirements are applicable to certain activities that may be 
funded under this program section of the SuperNOFA.

V. Application Selection Process

(A) Rating and Ranking

    (1) Threshold Review. HUD will conduct a review to insure that 
applications are complete and consistent with the General Section of 
the SuperNOFA, this HBCU Program section of the SuperNOFA and the HBCU 
Program regulations (24 CFR 570.404) before reviewing the application 
for rating and ranking. The General Section of the SuperNOFA provides 
the procedures for corrections to deficient applications.
    (2) Funding of Applications. To be considered for funding, your 
application

[[Page 9664]]

must receive a minimum score of 70 out of the possible total of 100 
points possible for Factors 1 through 5. In addition, two bonus points 
may be awarded for EZ/EC, as described in the General Section of the 
SuperNOFA. Within each category of eligible applicant, HUD will fund 
applications in rank order, until it has awarded all available funds 
for that category of applicant, or until there are no fundable 
applications remaining in that category. If there is a tie in the point 
scores of two applications, the rank order will be determined by the 
score on Factor 3, 4, 2, 1, 5 in that order. HUD will give the higher 
rank to the application with the most points for a factor in the above 
order. At whichever factor one of the applicants has the higher score, 
the tie will be broken, and no other scores will be considered for the 
purpose of breaking the tie.
    If funds remain after approving all fundable applications within a 
category of applicants, HUD may choose to add those funds to the funds 
available for the other category of applicants.
    (3) After Selection. After selection, but prior to grant award, you 
will be required to:
    (a) Negotiate. After HUD has rated and ranked all applications and 
HUD has selected the competition winners, HUD requires that all winners 
participate in negotiations to determine the specific terms of the 
Statement of Work and the grant budget. HUD will follow the negotiation 
procedures described in Section III(D) of the General Section of the 
SuperNOFA.
    (b) Provide Financial Management and Audit Information. If you are 
selected for funding, you will be required to submit a certification 
from an Independent Public Accountant, or the cognizant government 
auditor, stating that the financial management system employed by you 
meets prescribed standards for fund control and accountability required 
by OMB Circular A-133, as codified at 24 CFR part 84.

(B) Factors for Award Used To Evaluate and Rate Applications

    HUD will use the Factors For Award set forth below to evaluate 
applications. Your application must contain sufficient information for 
HUD to review it for its merits. The score for each factor will be 
based on the qualitative and quantitative aspects of your response to 
that factor. You may use up to a total of twenty-five (25) pages to 
respond to Factor 1 through 5. This limitation applies to your 
narrative response, tables, and maps, and NOT to firm commitment 
letters, the performance narrative and progress reports for previously-
funded HBCUs. Please note that this page limitation is different from 
last year's in that (1) the page limitation has been decreased and (2) 
tables and maps are included in the limitation.
    The maximum number of points that may be awarded is 102. This 
includes two EZ/EC bonus points, as described in the General Section of 
the SuperNOFA.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (15 Points)
    This factor addresses the extent to which you have the 
organizational resources necessary to successfully implement your 
proposed activities in a timely manner. In rating this factor, HUD will 
consider the extent to which:
    (1) (10 points) Your application demonstrates the knowledge and 
experience of the overall project director and staff, including the 
day-to-day program manager, consultants (including TA providers) and 
contractors in planning and managing the kinds of programs for which 
funding is being requested. Experience will be judged in terms of 
recent, relevant and successful experience of your staff to undertake 
eligible program activities. In rating this factor, HUD will consider 
the extent to which your organization and staff have recent, relevant, 
and successful experience in:
    (a) Undertaking specific successful community development projects 
with community-based organizations or local governments; and
    (b) Providing proven leadership in solving community problems which 
have a direct bearing on the proposed activity.
    (c) Also, for previously funded HBCUs, the extent to which you have 
been successful with past HUD/HBCU projects. For each HUD HBCU grant, 
you must submit a performance narrative, as outlined in the application 
package, and copies of the last two progress reports. HUD will consider 
your performance, including meeting established target dates and 
schedules, in applying the rating for this subfactor.
    (2) (5 points) You propose to partner with a qualified HBCU 
technical assistance (TA) provider to receive technical assistance. 
Qualified HBCUs that will provide the technical assistance to other 
HBCUs responding to this SuperNOFA can also be awarded five (5) points 
for this subfactor. Whether you are a TA recipient or a TA provider, 
you must (a) name the other party to the TA assistance; (b) describe 
the technical assistance to be provided; (c) state the costs of the 
technical assistance; (d) state the duration of the technical 
assistance; and (e) state the expected results of the technical 
assistance.
Rating Factor 2: Need/Extent of the Problem (15 Points)
    This factor addresses the extent to which there is a need for 
funding your proposed program activities and an indication of the 
importance of meeting the need in the target area. In responding to 
this factor, you will be evaluated on the extent to which you document 
the level of need for the proposed activities and the importance of 
meeting the need.
    You should use statistics and analyses contained in a data 
source(s) that:
    (a) Are sound and reliable. To the extent that your community's 
Consolidated Plan and Analysis of Impediments to Fair Housing Choice 
(AI) identify the level of the problem and the urgency in meeting the 
need, you should include references to these documents in your response 
to this factor. The Department will view your application more 
favorably if you have used these documents to identify need.
    If your proposed activities are not covered under the scope of the 
Consolidated Plan and AI, you should indicate such, and use other sound 
data sources to identify the level of need and the urgency in meeting 
the need. Types of other sources include, but are not limited to, 
Census reports, HUD's Continuum of Care gaps analysis, law enforcement 
agency crime reports, Public Housing Authorities' Comprehensive Plan, 
community needs analysis such as provided by the United Way, local 
Urban League, the HBCU and other sound and reliable sources appropriate 
for the HBCU program. You also may address needs in terms of fulfilling 
court orders or consent decrees, settlements, conciliation agreements, 
and voluntary compliance agreements.
    (b) To the extent possible, the data you use should be specific to 
the area where the proposed activities will be carried out. You should 
document needs as they apply to the area where the activities will be 
targeted, rather than the entire locality or State, unless the target 
area is the entire locality or State.
Rating Factor 3: Soundness of Approach (50 Points)
    This factor addresses the quality and cost-effectiveness of your 
proposed work plan. There must be a clear relationship between the 
proposed activities, the community's needs and

[[Page 9665]]

the purpose of the HUD HBCU Program for you to receive points for this 
factor.
    HUD will consider the effectiveness/impact and feasibility of your 
work plan in addressing the needs described in your response to Factor 
2 (Needs) including the extent to which you will provide geographic 
coverage for the target area.
    (1) Quality of the Work Plan (35 Points). Your work plan must 
incorporate all proposed activities, describing in detail how your 
activities will alleviate and/or fulfill the needs identified in Factor 
2, including how your activities will benefit low-income and elderly 
residents, welfare recipients, and the working poor in the target area 
to be served, and how your activities will be implemented. If 
relocation is to be a part of your work activities, you should discuss 
your plan for temporary or permanent relocation of occupants of units 
affected, including storage or moving of household goods, stipends and/
or incentives. Your work plan must delineate tasks and subtasks for 
each activity, and indicate the sequence in which the tasks are to be 
performed, noting areas of work which must be performed simultaneously. 
In evaluating this factor, HUD will consider:
    (a) Specific Services or Activities. (20 points) The extent to 
which your proposed work program identifies the specific services or 
activities to be performed. In reviewing this subfactor, HUD will 
consider the extent to which:
    (i) Your proposal outlines a clear agenda based on a thorough 
familiarity with existing work/activities in the target area. You 
should demonstrate that your proposed activities do not duplicate work/
activities previously completed or work/activities currently underway 
by others and that they meet a CDBG national objective and are eligible 
activities under the CDBG program;
    (ii) You demonstrate how the activities will fit into and 
strengthen your role in addressing community development needs in the 
targeted locality, and how the proposed project will potentially yield 
innovative strategies or ``best practices'' that can be duplicated and 
disseminated to other organizations; and
    (iii) Your plan outlines a clear agenda for citizen involvement in 
the planning and implementation. HUD will look at the extent to which:
     Local community representatives are involved and reflect a 
balance of race, ethnic, disability, gender and income of the residents 
of the community to be served, or will be involved to address the needs 
identified in Factor 2;
     Evidence is provided that neighborhood organizations and 
local government entities were invited to, or participated in, the 
identification of activities to be undertaken; and
     The methods you used for outreach to the community during 
the development of your application and propose to use for the 
implementation of the proposed project will be effective.
    (b) Feasibility of Success and Timely Delivery of Products and 
Implementation. (10 points) In evaluating this subfactor, HUD will 
consider the extent to which your proposed activities will achieve the 
purposes of the program within the grant period, and the extent to 
which your schedule represents an efficient and feasible plan for 
implementation of your proposed activities. You should identify 
measurable objectives to be accomplished during the period of 
performance e.g., the number of persons to be trained, number of 
persons to be employed, number of houses to be built (pursuant to 24 
CFR 570.207) or rehabilitated, number of minority owned businesses to 
be started, etc.; the proposed short and long term program objectives 
to be achieved as a result of your proposed activities; the tangible 
and measurable impacts your work program will have on the community in 
general and the target area or population in particular; and the 
relationship of your proposed activities to other on-going or proposed 
efforts to improve the economic, social, or living environment in the 
target area.
    Your work plan must describe the timing of all activities you will 
undertake and complete under your grant. You should describe the 
products you will deliver in 6 month intervals, up to 24 months and 
indicate which staff described in your response to Factor 1 will be 
responsible and accountable for the deliverables.
    (c) HUD Priorities. (5 points) The extent to which your proposed 
application will further and support the policy priorities of HUD 
including:
    (i) Promoting healthy homes;
    (ii) Enhancing on-going efforts to eliminate drugs and crime from 
neighborhoods through program policy efforts such as ``one Strike and 
You Are Out'' or the ``Officer Next Door'' initiative; and
    (iii) Providing educational, job training, and homeownership 
opportunities through such initiatives as Neighborhood Networks and 
Campus of Learners, and linking programs to Americorps activities.
    The Healthy Homes initiative implements a series of initiatives to 
protect children from home hazards such as lead-based paint, radon, 
fires and accidents around the home.
    The Neighborhood Networks (NN) initiative enhances the self-
sufficiency, employability, and economic self-reliance of low-income 
families and the elderly living in HUD-insured and HUD-assisted 
properties by providing such residents with on-site access to computer 
and training resources.
    The Campus of Learners (COL) initiative is designed to transform 
public housing into safe and livable communities where families 
undertake training in new telecommunications and computer technology 
and partake in educational opportunities and job training initiatives.
    (2) Institutionalization of Project Activities (10 Points). The 
extent to which your project will result in the kinds of activities 
being proposed sustained by becoming part of the mission of your 
institution. HUD will look at your commitment to continuing to work in 
the target area or other similar areas and to your longer term 
commitment of hard dollars to similar work.
    (3) Affirmatively Furthering Fair Housing (5 Points). Activities to 
affirmatively further fair housing, for example:
    (a) Overcoming impediments to fair housing, such as discrimination 
in the sale or rental of housing or in advertising, provision of 
brokerage services, or lending;
    (b) Promoting fair housing through the expansion of homeownership 
opportunities and improved quality of services for minorities, families 
with children, and persons with disabilities; or
    (c) providing mobility counseling.
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure community resources 
which can be combined with HUD program funds to assist HBCUs expand 
their role and effectiveness in addressing community development needs 
in their localities, including neighborhood revitalization, housing, 
and economic development.
    In evaluating this factor, HUD will consider the extent to which 
you have established partnerships with other entities to secure 
additional resources to increase the effectiveness of your proposed 
activities. Resources may include funding or in-kind contributions, 
such as services or equipment, allocated solely to the purpose(s) of 
the award you are seeking.

[[Page 9666]]

Resources may be provided by governmental entities, public or private 
nonprofit organizations, for-profit private organizations, or other 
entities. You may also establish partnerships with other program 
funding recipients to coordinate the use of resources in the target 
area.
    You must provide letters or other documentation evidencing the 
extent and firmness of commitments of a match from other Federal (e.g., 
Americorps Programs), State, local, and/or private sources (including 
your own resources). These commitment letters or documents must be 
dated no earlier than the date of this published SuperNOFA. If you have 
evidence in support of your proposed match commitment, you are eligible 
for more rating points than applicants who do not have a firm 
commitment for a match.
    The maximum number of rating points you can receive for leveraging 
is 10 points. HUD will award a higher number of points for a CASH match 
than in-kind goods or services of the same value. To be recognized as 
leveraging, contributions must be made available for performance of 
pertinent grant activity(ies). If you do not have evidence of 
leveraging, you will receive zero (0) points for this Factor.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you have coordinated your 
activities with other known organizations, participate or promote 
participation in your community's Consolidated Planning process, and 
are working towards addressing a need in a holistic and comprehensive 
manner through linkages with other activities in the community. For 
specific information about your locality's planning process, contact 
the local or State Community Development Agency or the local HUD Field 
Office.
    In evaluating this factor, HUD will consider the extent to which 
you demonstrate you have:
    (1) (4 points) Coordinated your proposed activities with those of 
other groups or organizations before submission in order to best 
complement, support and coordinate all known activities, and if funded, 
the specific steps you will take to share information on solutions and 
outcomes with others. You should describe any written agreements, 
memoranda of understanding in place, or that will be in place after 
award.
    (2) (3 points) Taken or will take specific steps to become active 
in the community's Consolidated Planning process (including the 
Analysis of Impediments to Fair Housing Choice) established to identify 
and address a need/problem that is related to your proposed activities.
    (3) (3 points) Taken or will take specific steps to develop 
linkages to coordinate comprehensive solutions through meetings, 
information networks, planning processes or other mechanisms with:
    (a) Other HUD-funded projects/activities outside the scope of those 
covered by the Consolidated Plan; and
    (b) Other Federal, State or locally funded activities, including 
those proposed or on-going in the community.

VI. Application Submission Requirements

    You must complete and submit your application for an HBCU grant in 
accordance with instructions contained in the University and College 
Programs Application Kit for 1999. The application kit will request 
information in sufficient detail for HUD to determine whether your 
proposed activities are feasible and meet all the requirements of 
applicable statutes, regulations, and this SuperNOFA for the HBCU 
Program. Following is a list of items required for your HBCU 
application:
    (A) Transmittal Letter. A transmittal letter must accompany your 
application. Your cover letter must be signed by the Chief Executive 
Officer (usually the President or Provost) of your institution. If the 
Chief Executive Officer has delegated this responsibility to another 
official, that person may sign, but a copy of the delegation must also 
be included.
    (B) Application Checklist.
    (C) Abstract/Executive Summary (one page limit) describing the 
goals and activities of your project.
    (D) Budget Document The budget presentation must be consistent with 
the Work Plan and the Standard Form (SF) 424. Your budget submission 
must include: (1) a budget summary covering the Federal and non-Federal 
share of the costs proposed by cost category. You should pay particular 
attention to accurately estimating costs, determining the necessity for 
and reasonableness of costs; and correctly computing all budget items 
and totals. Indirect costs must be substantiated and approved by the 
cognizant Federal agency or you must provide an indirect cost rate 
plan. The indirect cost rate should be indicated in your budget; (2) a 
budget justification, which should be a narrative statement indicating 
how you arrived at your costs. When possible, you should use quotes 
from vendors or historical data. You must support all direct labor and 
salaries with mandated city/state pay scales or other documentation; 
and (3) a budget-by-task which includes a listing of tasks to be 
completed for each activity needed to implement the program, the 
overall costs for each task, and the cost for each funding source.
    You must submit reasonable cost estimates supplied by a qualified 
entity other than yourself if you are proposing to do any of the 
following: rehabilitation of residential, commercial and/or industrial 
structures; and/or acquisition, construction, or installation of public 
facilities and improvements. The supplier of cost estimates must be 
involved in the business of housing rehabilitation, construction and/or 
management. You may obtain guidance for securing these estimates from 
the CPD Director in the HUD field office or the local government. A 
format for the budget summary and the budget-by-task is included in the 
application kit.
    (E) Narrative Statement Responding To The Factors For Award (25 
page limit, including tables and maps, but not including firm 
commitment letters, the performance narrative and progress reports). 
The narrative should be numbered in accordance with each factor and 
subfactor.
    (F) Certifications. All certification forms must be signed by the 
Chief Executive Officer of your organization.
    HUD will not consider appendices to an application. You must submit 
your documentation, including firm commitment letters, the performance 
narrative and progress reports, with your responses to the pertinent 
factors in order to receive points for it.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Review

    If you propose activities (such as physical development activities) 
that are not excluded from environmental review under 24 CFR 50.19(b), 
an environmental review by HUD staff is required in accordance with 24 
CFR part 50, as indicated by 24 CFR 570.404(i), before HUD approves the 
proposal (i.e., releases CDBG funds). Before any HUD grant funds are 
released, environmental approval must be secured. If the requirements 
of part 50 are not met, HUD reserves the right to terminate all or 
portions of the award. You are not authorized to proceed with any 
activity requiring approval until written approval is received from the 
appropriate HUD Field Environmental Clearance Officer in your area 
certifying

[[Page 9667]]

that the project has been approved and released from all environmental 
conditions.

IX. Authority

    This program is authorized under section 107(b)(3) of the Housing 
and Community Development Act of 1974 (the 1974 Act) (42 U.S.C. 
5307(b)(3)), which was added by section 105 of the Department of 
Housing and Urban Development Reform Act of 1989 (Pub.L. 101-235). The 
HBCU Program is governed by regulations contained in 24 CFR 570.400 and 
570.404, and in 24 CFR part 570, subparts A, C, J, K, and O.

HBCU Program Appendix A

Historically Black Colleges and Universities (Previously Unfunded 
By HUD During Fiscal Years 1991-1998)

Alabama

Bishop State Community College
Concordia College
Fredd State Technical College
Lawson State Community College
Miles College
Selma University
J.F. Drake Technical College
Trenholm State Technical College

Arkansas

Shorter College

Delaware

Delaware State University

Florida

Bethune-Cookman College
Edward Waters College
Florida Memorial College

Georgia

Morehouse College
Morehouse School of Medicine
Paine College

Louisiana

Dillard University
Southern University at Shreveport/Bossier City

Maryland

University Of Maryland Eastern Shore

Michigan

Lewis College of Business

Mississippi

Hinds Community College
Mary Holmes College

North Carolina

Barber-Scotia College
Livingstone College

Ohio

Wilberforce University

Pennsylvania

Cheyney University of Pennsylvania

South Carolina

Allen University
Clinton Junior College
Denmark Technical College
Morris College

Tennessee

Knoxville College
Lane College
Meharry Medical College
Tennessee State University

Texas

Jarvis Christian College
Southwestern Christian College
Texas College

Virginia

Virginia Union University

West Virginia

Bluefield State College
West Virginia State University

U.S. Virgin Islands

University of the Virgin Islands

HBCU Program Appendix B

Historically Black Colleges and Universities (Previously Funded By 
HUD During Fiscal Years 1991-1998)

Alabama

Alabama A&M University
Alabama State University
Gadsden State Community College
Oakwood College
Stillman College
Talladega College
Tuskegee University

Arkansas

Arkansas Baptist College
Philander Smith College
University of Arkansas at Pine Bluff

District of Columbia

Howard University
University of the District of Columbia

Florida

Florida A&M University

Georgia

Albany State University
Clark Atlanta University
Fort Valley State University
Interdenominational Theological Center
Morris Brown College
Savannah State University
Spelman College

Kentucky

Kentucky State University

Louisiana

Grambling State University
Southern University A & M College System at Baton Rouge
Southern University at New Orleans
Xavier University of New Orleans

Maryland

Bowie State University
Coppin State College
Morgan State University

Mississippi

Alcorn State University
Coahoma Community College
Jackson State University
Mississippi Valley State University
Rust College
Tougaloo College

Missouri

Harris-Stowe State College
Lincoln University

North Carolina

Bennett College
Elizabeth City State University
Fayetteville State University
Johnson C. Smith University
North Carolina A&T State University
North Carolina Central University
St. Augustine's College
Shaw University
Winston-Salem State University

Ohio

Central State University

Oklahoma

Langston University

Pennsylvania

Lincoln University

South Carolina

Benedict College
Claflin College
South Carolina State University
Voorhees College

Tennessee

Fisk University
Lemoyne-Owen College

Texas

Huston-Tillotson College
Paul Quinn College
Prairie View A&M University
Saint Philip's College
Texas Southern University
Wiley College

Virginia

Hampton University
Norfolk State University
Saint Paul's College
Virginia State University

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[[Page 9671]]



Funding Availability for the Hispanic-Serving Institutions 
Assisting Communities Program

Program Overview

    Purpose of the Program. To assist Hispanic-serving institutions of 
higher education (HSIs) expand their role and effectiveness in 
addressing community development needs in their localities, consistent 
with the purposes of Title I of the Housing and Community Development 
Act of 1974, as amended.
    Available Funds. Approximately $5.65 million.
    Eligible Applicants: Only nonprofit Hispanic-serving institutions 
of higher education that meet the definition of an HSI established in 
Title V of the 1998 Amendments to the Higher Education Act of 1965 
(Pub. L. 105-244; enacted October 7, 1998).
    Application Deadline. June 9, 1999.
    Match. None.

Additional Information:

    If you are interested in applying for funds under the HSIAC 
Program, please review carefully the General Section of this SuperNOFA 
and the following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Your completed application is due on or 
before 12:00 midnight, Eastern Time on June 9, 1999 at HUD 
Headquarters.
    See the General Section of this SuperNOFA for specific procedures 
covering the form of the application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Address for Submitting Applications. Submit your original signed 
application and two copies to the following address: Processing and 
Control Branch, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW, 
Room 7251, Washington, DC, 20410. When submitting your application, 
please refer to HSIAC and include your name, mailing address (including 
zip code) and telephone number (including area code).
    HUD will accept only one application per HSI for this program. If 
your institution submits more than one application, all of your 
applications for HSIAC will be disqualified. You should take this 
policy into account and take steps to ensure that multiple applications 
are not submitted.
    For Application Kits. For an application kit and any supplemental 
information, you should call the SuperNOFA Information Center at 1-800-
HUD-8929. If you have a hearing or speech impairment, please call the 
Center's TTY number at 1-800-843-2209. When requesting an application 
kit, you should refer to HSIAC Program and provide your name and 
address (including zip code) and telephone number (including area 
code). You may also access the application on the Internet through the 
HUD web site at www.hud.gov.
    For Further Information and Technical Assistance. For answers to 
your questions, you have several options. You may call Jane Karadbil of 
HUD's Office of University Partnerships at 202-708-1537, extension 
5918. If you have a hearing or speech impairment, you may access this 
number via TTY by calling the Federal Information Relay Service toll-
free at 1-800-877-8339. You may also write to Ms. Karadbil via email at 
[email protected].
    There will be an information broadcast via satellite so that you 
can learn more about this program and how to prepare an application. 
For more information about the date and time of this broadcast, you 
should consult the HUD web site.

II. Amount Allocated

    Approximately $5.65 million in FY 1999 funds is being made 
available under this SuperNOFA for HSIAC. The maximum grant period is 
24 months. The performance period will commence on the effective date 
of the grant agreement. The maximum amount request and amount to be 
awarded is $400,000. Since the Statement of Work and other facets of 
the technical review are assessed in the context of the proposed budget 
and grant request, and in the interest of fairness to all applicants, 
if you submit an application requesting more than $400,000 in HUD 
funds, it will be ruled ineligible. HUD reserves the right to make 
awards for less than the maximum amount or less than the amount 
requested in your application.

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. The purpose of HSIAC is to assist HSIs 
expand their role and effectiveness in addressing community development 
needs in their localities, including neighborhood revitalization, 
housing, and economic development.
    (1) For the purposes of this program, the term ``locality'' 
includes any city, county. Township, parish, village, or other general 
political subdivision of a State, Puerto Rico, or the U.S. Virgin 
Islands within which your HSI is located.
    (2) If your HSI is located in a metropolitan statistical area 
(MSA), as established by the Office of Management and Budget, you may 
consider your locality to be one or more of these entities within the 
entire MSA. The nature of the locality for each HSI may differ, 
therefore, depending on its location.
    (3) A ``target area'' is the locality or the area within the 
locality in which your institution will implement its proposed HUD 
grant.
    (B) Eligible Applicants. Only if your institution is a nonprofit 
institution of higher education and meets the statutory definition of 
an HSI in Title V of the 1998 Amendments to the Higher Education Act of 
1965 (P.L. 105-244) are you eligible to apply. In order for you to meet 
this definition, at least 25 percent of the full-time undergraduate 
students enrolled in your institution must be Hispanic and not less 
than 50 percent of these Hispanic students must be low-income 
individuals. You are not required to be on the list of eligible 
institutions prepared by the U.S. Department of Education. However, if 
you are not, you will be required to certify in the application that 
you meet the statutory definition.
    (C) Eligible Activities. (1) General. Each activity you propose for 
funding must meet both a Community Development Block Grant Program 
(CDBG) national objective and the CDBG eligibility requirements. A 
discussion of the national objectives can be found at 24 CFR part 
570.208. There are three national objectives:
    (a) Benefit to low- and moderate-income persons;
    (b) Aid in the prevention or elimination of slums or blight; or
    (c) Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.

(It is not necessary for you to comply with the requirement that not 
less than 70% of the grant expenditures be for activities benefiting 
low- and moderate-income persons.)
    You can find the regulations governing activities eligible under 
the CDBG program at 24 CFR part 570, subpart C, particularly 
Secs. 570.201 through 570.206. Ineligible activities are listed at 
Sec. 570.207. The CDBG publication entitled ``Everything You Wanted to 
Know About CDBG''

[[Page 9672]]

discusses the regulations. You can obtain a copy from the SuperNOFA 
Information Center. If you propose an activity which otherwise is 
eligible, it may not be funded if State or local law requires that it 
be carried out by a governmental entity.
    In addition, you may not propose the construction or rehabilitation 
of your own facilities unless you can demonstrate that such activities 
would meet the purpose of this program to expand the role and 
effectiveness of an HSI in its locality. HUD will scrutinize proposed 
activities for eligibility. As examples of eligible and ineligible on-
campus activities, rehabilitating a library for use by your students 
would not be an eligible activity, but rehabilitating it to convert it 
to a micro-business enterprise center for the community would be.
    (2) Examples of Eligible Activities. Examples of activities that 
generally can be carried out with these funds, under one of the three 
national objectives, include, but are not limited to:
    (a) Acquisition of real property;
    (b) Clearance and demolition;
    (c) Rehabilitation of residential structures to increase housing 
opportunities for low- and moderate-income persons and rehabilitation 
of commercial or industrial buildings to correct code violations or for 
certain other purposes, e.g., making accessibility and visitability 
modifications to housing;
    (d) Direct homeownership assistance to low- and moderate-income 
persons, as provided in section 105(a)(25) of the Housing and Community 
Development Act of 1974;
    (e) Acquisition, construction, reconstruction, rehabilitation, or 
installation of public facilities and improvements, such as water and 
sewer facilities and streets;
    (f) Special economic development activities described at 24 CFR 
570.203;
    (g) Up to 15 percent of the grant for eligible public services 
activities including:
    (i) Work study programs that meet the program requirements of the 
Hispanic-serving Institutions Work Study program, which can be found at 
24 CFR 570.416;
    (ii) Outreach and other program activities as described in the 
Community Outreach Partnership Centers Program section of the 
SuperNOFA;
    (iii) Educational activities including English as a Second Language 
(ESL) classes, adult basic education classes, GED preparation and 
testing, and curriculum development of courses that will lead to a 
certificate or degree in community planning and development;
    (iv) Job and career counseling and assessment and other activities 
designed to promote employment opportunities;
    (v) Capacity building for community organizations;
    (vi) Social and medical services for youths, adults, senior 
citizens, and the homeless;
    (vii) Fair housing services designed to further the fair housing 
objectives of the Fair Housing Act (42 U.S.C. 3601-20) by making all 
persons, without regard to race, color, religion, sex, national origin, 
familial status and/or disability aware of the range of housing 
opportunities available to them;
    (viii) Day care services and costs for the children of students 
attending your institution;
    (ix) Continuum of care services for the homeless;
    (x) Public access telecommunications centers including ``Campus of 
Learners'' and ``Neighborhood Networks;''
    (xi) Services to assist low-income students to attend college, as 
part of the U.S. Department of Education's Gaining Awareness and 
Readiness for Undergraduate Program (GEAR UP). (For more information, 
call 1-800-USA-LEARN or visit the Department of Education's website at 
www.ed.gov).
    (h) Assistance to facilitate economic development by providing 
technical assistance or financial assistance for the establishment, 
stabilization, and expansion of microenterprises, including minority 
enterprises.
    (i) Establishment of a Community Development Corporation (CDC) at 
the institution to undertake eligible activities;
    (j) Assistance to community-based development organizations (CBDO) 
to carry out a CDBG neighborhood revitalization, community economic 
development, or energy conservation project, in accordance with 24 CFR 
570.204. This could include activities in support of a HUD approved 
local CDBG Neighborhood Revitalization Strategy (NRS) or HUD approved 
State CDBG Community Revitalization Strategy (CRS). If you are 
proposing a Community Development Corporation (CDC) component, it may 
qualify for CBDO activities;
    (k) Activities designed to promote training and employment 
opportunities;
    (l) Up to 20% of your grant for program administration costs 
related to the planning and execution of community development 
activities assisted in whole or in part with grant funds. Pre-award 
planning costs may not be paid out of grant funds.
    (3) Use of Grant Funds for Acquisition of Computer Hardware and 
Software. HUD encourages you to propose the use of grant funds, at 
reasonable levels, for the acquisition of computer hardware and 
software compatible with Internet access and HUD's Community Planning 
2020 Software, if you do not currently have such capability. You may 
obtain more information on the Community 2020 Software from the local 
HUD Community Planning and Development Office.
    (D) Other Requirements. (1) Leveraging. Although a match is not 
required to qualify for funding, if you claim a match, you must provide 
letters or other documentation evidencing the extent and firmness of 
commitments of a match from other Federal (e.g., Americorps Programs), 
State, local, and/or private sources (including the applicant's own 
resources). These letters or documents must be dated no earlier than 
the date of this published SuperNOFA.
Potential Sources of Assistance
     State and local governments.
     Housing Authorities.
     Local or national nonprofit organizations.
     Banks and private businesses.
     Foundations.
     Faith Communities.
Documentation Requirements
    For each match, cash or in kind, you must submit a letter from the 
provider on the provider's letterhead. Number each letter as a page in 
the application. For each match, include a letter from the provider 
that addresses the following:
     The dollar amount or dollar value of the in-kind goods 
and/or services committed. For each cash match, the dollar amount in 
the commitment letter must be consistent with the dollar amount you 
indicated on the SF-424 and in the Budget;
     How the match is to be used;
     The date the match will be made available and a statement 
that it will be for the duration of the grant period;
     Any terms and conditions affecting the commitment, other 
than receipt of a HUD HSIAC Grant; and
     The signature of the appropriate executive officer 
authorized to commit the funds and/or goods and/or services. (See the 
application kit for a sample commitment letter.)
    (2) Employment of local area residents (Section 3). Please see 
Section II(E) of the General Section of this SuperNOFA. The 
requirements are applicable to certain activities that may be funded 
under this program section of the SuperNOFA.

[[Page 9673]]

    (3) Labor Standards. If you are awarded a grant, you must comply 
with the labor standards as found at 24 CFR 570.6603.
    (4) OMB Circulars. Your grant will be governed by the provisions of 
24 CFR part 84 (Grants and Agreements with Institutions of Higher 
Education, Hospitals and other Nonprofit Organizations), A-21 (Cost 
Principles for Education Institutions, and A-133 (Audits of States, 
Local Governments, and Non-Profit Organizations. You may not spend more 
than 20% of your grant on planning or administrative costs. The 
application kit contains a detailed explanation of what these costs 
are. You can access the OMB circulars at the White House website at 
http://whitehouse.gov/WH/EOP/OMB/html/circulars.

IV. Application Selection Process

    HUD will conduct two types of review: a threshold review to 
determine applicant eligibility; and a technical review to rate the 
application based on the rating factors in this section.

(A) Threshold Factors for Funding Consideration

    Under this threshold review, your application will be rejected from 
competition if it is not in compliance with the requirements of the 
General Section of the SuperNOFA or the following additional standards 
are not met:
    (1) You must be an eligible HSI;
    (2) Your application requests a Federal grant that is no more than 
$400,000 over a two-year period;
    (3) There is only one application from your institution or a part 
of your institution;
    (4) At least one of the activities in your application is eligible.
    (B) Factors for Award Used to Evaluate and Rate Applications. The 
factors for rating and ranking applicants, and maximum points for each 
factor, are provided below. The maximum number of points for this 
program is 102. This includes two EZ/EC bonus points, as described in 
the General Section of the SuperNOFA.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (15 Points)
    This factor addresses the extent to which you have the organization 
resources necessary to successfully implement the proposed activities 
in a timely manner. In rating this factor, HUD will consider the extent 
to which your application demonstrates the knowledge and experience of 
the overall project director and staff, including the day-to-day 
program manager, consultants and contractors in planning and managing 
the kinds of programs for which funding is being requested. If this 
experience is found within the HSI, you will receive higher points on 
this factor than if you have secured this experience from consultants, 
contractors, and other staff outside your institution. In addition, if 
you demonstrate that the previous experience is for the project team 
from the institution proposed for this project, you will receive higher 
points than if the experiences are for people not proposed to work on 
this project. Experience will be judged in terms of recent, relevant, 
and successful experience of your staff to undertake activities in:
    (a) Outreach activities in specific communities to solve or 
ameliorate significant housing and community development issues;
    (b) Undertaking specific successful community development projects 
with community-based organizations; and
    (c) Providing proven leadership in solving community problems which 
have a direct bearing on the proposed activity.
Rating Factor 2: Need/Extent of the Problem (15 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed program activities and an indication of the 
importance of meeting the need in the target area. In responding to 
this factor, you will be evaluated on the extent to which you document 
the level of need for the proposed activities and the importance of 
meeting the need.
    You should use statistics and analyses contained in a data 
source(s) that:
    (1) Is sound and reliable. To the extent that your targeted 
community's Five (5) Year Consolidated Plan and Analysis of Impediments 
to Fair Housing Choice (AI) identify the level of the problem and the 
urgency in meeting the need, you should include references to these 
documents in your response to this factor. The Department will view 
your application more favorably if you have used these documents to 
identify need.
    If your proposed activities are not covered under the scope of the 
Consolidated Plan and AI, you should indicate such, and use other sound 
data sources to identify the level of need and the urgency in meeting 
the need. Types of other sources include Census reports, HUD Continuum 
of Care gaps analysis, law enforcement agency crime reports, Public 
Housing Authorities' Comprehensive Plans, community needs analyses such 
as provided by the United Way, the HSI, etc., and other sound and 
reliable sources appropriate for the HSIAC program. You may also 
address needs in terms of fulfilling court orders or consent decrees, 
settlements, conciliation agreements, and voluntary compliance 
agreements.
    (2) To the extent possible, the data you use should be specific to 
the area where the proposed activities will be carried out. You should 
document needs as they apply to the area where the activities will be 
targeted, rather than the entire locality or State, unless the target 
area is the entire locality or State.
Rating Factor 3: Soundness of Approach (50 Points)
    This rating factor addresses the quality and cost-effectiveness of 
your proposed work plan. There must be a clear relationship between the 
proposed activities, the community's needs, and the purpose of HSIAC 
for you to receive points on this factor.
    (1) Quality of the Statement of Work. (20 points) Your statement of 
work must incorporate all proposed activities, describing in detail how 
the activities will alleviate and/or fulfill the needs identified in 
Factor 2 and how the activities will be implemented. In evaluating this 
factor, HUD will consider:
    (a) (10 points) The extent to which your proposed statement of work 
identifies the specific services or activities to be performed. In 
reviewing this subfactor, HUD will consider the extent to which:
    (i) Your proposal outlines a clear agenda based on your familiarity 
with existing work/activities in the target area. You should 
demonstrate that your proposed activities do not duplicate work/
activities previously completed or currently underway by others and 
that they meet a CDBG national objective and are eligible activities 
under the CDBG program;
    (ii) You demonstrate how your activities will fit into and 
strengthen your role in addressing community development needs in your 
locality; and how the proposed project will potentially yield 
innovative strategies or ``best practices'' that can be duplicated and 
disseminated to other organizations.
    (b) (10 points) The extent to which the proposed activities involve 
the communities to be served in implementation of these activities. HUD 
will look at the extent to which:
    (i) Representatives of the local communities (that reflect a 
balance of race, ethnic, disability, gender, and income of the 
residents of the community to be served) are involved or

[[Page 9674]]

will be involved to address the needs identified in Rating Factor 2;
    (ii) Evidence is provided that you invited neighborhood 
organizations and local government entities to participate, or that 
they did participate in the identification of the activities to be 
undertaken; and
    (iii) The methods you used for outreach to the community during the 
development of the application and propose to use for implementation of 
the proposed project will be effective.
    (2) Feasibility of Successful and Timely Delivery of Products and 
Implementation. (10 points) Your statement of work must describe the 
timing of all activities to be undertaken and completed under the 
grant. You should describe the products you will deliver in 6 month 
intervals, up to 24 months and indicate which staff under Factor 1 will 
be responsible and accountable for the deliverables. In evaluating this 
factor, HUD will consider the extent to which the proposed activities 
will achieve the purposes of the program within the grant period and 
the extent to which the schedule represents an efficient and feasible 
plan for implementation of your proposed activities. You should 
identify specific time-phases and measurable objectives to be 
accomplished during the period of performance; the proposed short- and 
long-term program objectives to be achieved as a result of the proposed 
activities; the tangible and measurable impacts the statement of work 
will have on the community in general and on the target area in 
particular; and the relationship of the proposed activities to other 
on-going or proposed efforts to improve the economic, social, or living 
environment in the target area.
    (3) Affirmatively Furthering Fair Housing. (5 points) The extent to 
which you propose to undertake activities designed to affirmatively 
further fair housing, for example:
    (a) Working with other entities in the community to overcome 
impediments to fair housing, such as discrimination in the sale or 
rental of housing or in advertising, provision of brokerage services or 
lending;
    (b) Promoting fair housing choice through the expansion of 
homeownership opportunities and improved quality of services for 
minorities, families with children, and persons with disabilities; or
    (c) Providing housing mobility counseling services.
    (4) HUD priorities. (5 points) The extent to which your application 
will further and support the following priorities of HUD:
    (1) Promoting healthy homes;
    (2) Providing opportunities for self-sufficiency, particularly for 
persons enrolled in welfare-to-work programs;
    (3) Enhancing on-going efforts to eliminate drugs and crime from 
neighborhoods through program policy efforts such as ``One Strike and 
You Are Out'' or the ``Officer Next Door'' initiative; or
    (4) Providing educational, job training, and homeownership 
opportunities through such initiatives as GEAR UP, Neighborhood 
Networks, Campus of Learners, and linking programs to Americorps.
    The Healthy Homes initiative implements a series of initiatives to 
protect children from home hazards such as lead-based paint, radon, 
fires, and accidents around the home.
    The GEAR UP initiative promotes partnerships between colleges and 
middle or junior high schools in low-income communities, to help teach 
students how they can go to college by informing them about college 
options, academic requirements, costs, and financial aid, and by 
providing support services, including tutoring, counseling, and 
mentoring.
    The Neighborhood Networks initiative enhances the self-sufficiency, 
employability, and economic self-reliance of low-income families and 
the elderly living in HUD-insured and HUD-assisted properties by 
providing them with on-site access to computer and training resources.
    The Campus of Learners initiative is designed to transform public 
housing into safe and livable communities where families undertake 
training in new telecommunications and computer technology and partake 
in educational opportunities and job training initiatives.
    (4) Institutionalization of Project Activities. (10 points) The 
extent to which your project will result in the kinds of proposed 
activities being sustained by becoming part of the mission of your 
institution. In reviewing this subfactor, HUD will consider the extent 
to which program activities relate to your institution's mission; are 
part of a climate that rewards faculty work on these kinds of 
activities through promotion and tenure; benefits students because they 
are part of a service learning program at your institution; and are 
reflected in the curriculum. HUD will look at your commitment to 
faculty and staff continuing work in the target area or other similar 
areas and to your longer term commitment (five years after the start of 
the grant) of hard dollars to similar work.
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure community resources, 
which can be combined with HUD program funds to achieve program 
objectives.
    In evaluating this factor, HUD will consider the extent to which 
you have established partnerships with other entities to secure 
additional resources to increase the effectiveness of the proposed 
activities. Resources may include funding or in-kind contributions, 
such as services or equipment. Resources may be provided by 
governmental entities, public or private nonprofit organizations, for-
profit private organizations, or other entities. You may also establish 
partnerships with other program funding recipients to coordinate the 
use of resources in the target area.
    You may count overhead and other institutional costs (e.g., 
salaries) that are waived as leveraging. However, higher points will be 
awarded if you secure leveraging resources from sources outside the 
institution.
    You must provide letters or other documentation showing the extent 
and firmness of commitments of leveraged funds (including your own 
resources) in order for these resources to count in determining points 
under this factor. These commitment letters or documents must be dated 
no earlier than the date of this published SuperNOFA. This 
documentation should include the organization's name, proposed level of 
commitment and responsibilities as they relate to the proposed program. 
The commitment must also be signed by the official of the organization 
legally able to make commitments on behalf of the organization. Any 
resource for which there is no commitment letter will not be counted, 
nor will the resource be counted without the proposed level of 
commitment being quantified. If your application does not include 
evidence of leveraging, it will receive zero (0) points for this 
Factor.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you have coordinated your 
activities with other known organizations, participate or promote 
participation in a community's Consolidated Planning process, and are 
working towards addressing a need in a holistic and comprehensive 
manner through linkages with other activities in the community. For 
specific information about your locality's process, contact the local 
or State Community

[[Page 9675]]

Development Agency or the local HUD field office.
    In evaluating this factor, HUD will consider the extent to which 
you demonstrate that you have:
    (1) (4 points) Coordinated your proposed activities with those of 
other groups or organizations prior to submission in order to best 
complement, support, and coordinate all known activities and, if 
funded, the specific steps you will take to share information on 
solutions with others. Any written agreements, memoranda of 
understanding in place, or that will be in place after award, should be 
described.
    (2) (3 points) Taken or will take specific steps to become active 
in the community's Consolidated Planing process (including the Analysis 
of Impediments to Fair Housing Choice) established to identify and 
address a need/problem that is related to the activities you propose.
    (3) (3 points) Taken or will take specific steps to develop 
linkages to coordinate comprehensive solutions through meetings, 
information networks, planning processes or other mechanisms with:
    (a) Other HUD-funded projects/activities outside the scope of those 
covered by the Consolidated Plan; and
    (b) Other Federal, State or locally-funded activities, including 
those proposed or on-going in the community.
    (C) Selections. In order to be funded, you must receive a minimum 
score of 70 points. HUD will fund applications in rank order, until it 
has awarded all available funds. If two or more applications have the 
same number of points, the application with the most points for Factor 
3, Soundness of Approach, shall be selected. If there is still a tie, 
the application with the most points for Factor 4, Leveraging, shall be 
selected.
    HUD will not fund specific proposed activities that do not meet 
eligibility requirements (see 24 CFR part 570, subpart C) or do not 
meet a national objective in accordance with 24 CFR 570.208.
    HUD reserves the right to make selections out of rank order to 
provide for geographic distribution of funded HSIACs. If HUD decides to 
use this option, it will do so only if two adjacent HUD regions do not 
yield at least one fundable HSIAC on the basis of rank order. If this 
occurs, HUD will fund the highest ranking applicant within the two 
regions as long as the minimum score of 70 points is achieved.
    After all application selections have been made, HUD may require 
that you participate in negotiations to determine the specific terms of 
the Statement of Work and the grant budget. In cases where HUD cannot 
successfully complete negotiations, or you fail to provide HUD with 
requested information, an award will not be made. In such instances, 
HUD may elect to offer an award to the next highest ranking applicant, 
and proceed with negotiations with that applicant.
    After award but before grant execution, winners will be required to 
provide a certification from an Independent Public Accountant or the 
cognizant government auditor, stating that the financial management 
system employed by your institution meets proscribed standards for 
funds control and accountability required by OMB Circular A-133, Audits 
of States, Local Governments, and Non-Profit Organizations, or 24 CFR 
part 84, or the Federal Acquisitions Regulations (for all other 
applicants). This information should contain the name and telephone 
number of the Independent Auditor, cognizant Federal auditor, or other 
audit agency, as applicable.

V. Application Submission Requirements

    You should include an original and two copies of the items listed 
below. In order to be able to recycle paper, please do not submit 
applications in bound form; binder clips or loose leaf binders are 
acceptable. Also, please do not use colored paper. Please note the page 
limits for some of the items listed below and do not exceed them.
    In addition to the forms, certifications and assurances listed in 
Section II(G) of the General Section, your application must, at a 
minimum, contain the following items:
    (A) Transmittal Letter, signed by the Chief Executive Officer of 
your institution or his or her designee. If a designee signs, your 
application must include the official designation of signatory 
authority.
    (B) Application Checklist.
    (C) Abstract/Executive Summary (one page limit) describing the 
goals and activities of the project.
    (D) Statement of Work (25 page limit) incorporating all activities 
to be funded in your application and details how your proposed work 
will be accomplished. Following a task-by-task format, the Statement of 
Work must:
    (1) Arrange the presentation of major related activities (e.g., 
rehabilitation of a child care center, provision of tutoring services), 
summarize each activity, identify the primary persons involved in 
carrying out the activity, and delineate the major tasks involved in 
carrying it out.
    (2) Indicate the sequence in which tasks are to be performed, 
noting areas of work that must be performed simultaneously.
    (3) Identify the specific numbers of quantifiable intermediate and 
end products and objectives the applicant aims to deliver by the end of 
the grant period as a result of the work performed.
    (E) Narrative Statement Addressing the Factors for Award. (25 page 
limit, including tables, and maps, but not including any letters of 
commitment) You should number the narrative in accordance with each 
factor and subfactor. Please do not repeat material in the Statement of 
Work.
    (F) Budget. The budget presentation should be consistent with the 
Statement of Work and include:
    (1) A budget by task, using the sample form included in the 
application kit. This form separates the Federal and non-Federal costs 
of each program activity. Particular attention should be paid to 
accurately estimating costs; determining the necessity for and 
reasonableness of costs; and correctly computing all budget items and 
totals.
    (2) A narrative statement of how you arrived at your costs, for any 
line item over $5,000. When necessary, quotes from various vendors or 
historical data should be used and included. All direct labor or 
salaries must be supported with mandated city/state pay scales or other 
documentation. Indirect costs must be substantiated and the rate must 
have been approved by the cognizant Federal agency. If you are 
proposing to undertake rehabilitation of residential, commercial, or 
industrial structures or acquisition, construction, or installation of 
public facilities and improvements, you must submit reasonable costs 
supplied by a qualified entity other than your institution. Such an 
entity must be in the business of housing rehabilitation, construction 
or management. Guidance for securing these estimates can be obtained 
from the CPD Director in your HUD field office or from your local 
government.
    You may not submit appendices or general support letters or 
resumes. If you submit letters of leveraging commitment, they must be 
included in your response to Factor 4. If you submit other 
documentation, it must be included with the pertinent factor responses 
(taking note of the page limit).

VI. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

[[Page 9676]]

VII. Environmental Requirements

    If you propose activities (such as physical development activities) 
that are not excluded from environmental review under 24 CFR 50.19(b), 
HUD will conduct an environmental review in accordance with 24 CFR part 
50, before HUD approves the proposal (i.e., releases HSIAC funds). If 
the requirements of part 50 are not met, HUD reserves the right to 
terminate all or portions of your award. You are not authorized to 
proceed with any activity requiring such approval until written 
approval is received from the appropriate HUD Field Office 
Environmental Clearance Officer in its area certifying that the project 
has been approved and released from all environmental conditions.

VIII. Authority

    This program is authorized under the section 107 of the CDBG 
appropriation for fiscal year 1999, as part of the ``Veterans 
Administration, HUD and Independent Agencies Appropriations Act of 
1999'' (Pub. L. 105-276, approved October 21, 1998). For this first 
year of the program, HSIAC is being implemented through this program 
section of the SuperNOFA and the policies governing its operation are 
contained herein.

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Notices  

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Notices  

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Funding Availability for the Fair Housing Initiatives Program

Program Overview

    Purpose of the Program. To increase compliance with the Fair 
Housing Act (the Act) and with substantially equivalent State and local 
fair housing laws.
    Available Funds. Approximately $15,000,000 is allocated as follows:

A. Private Enforcement Initiative (PEI)...................    $9,300,000
B. Education and Outreach Initiative (EOI)................     4,500,000
C. Fair Housing Organizations Initiative (FHOI)...........     1,200,000
 

    Eligible Applicants. Qualified Fair Housing Organizations (QFHOs); 
Fair Housing Organizations (FHOs); public or private non-profit 
organizations or institutions and other public or private entities that 
are working to prevent or eliminate discriminatory housing practices; 
State and local governments; and Fair Housing Assistance Program 
Agencies (FHAP) (as defined in Section IV.(A)(13), Program Definitions, 
and described in detail under the initiatives that follow).
    Application Deadline. April 27, 1999.
    Match: None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. You must submit completed applications for 
all Initiatives/Components on or before 12:00 midnight, Eastern time on 
April 27, 1999 at HUD Headquarters.
    See the General Section of this SuperNOFA for specific procedures 
governing the form of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Address for Submitting Applications. You must submit completed 
applications (one original and five copies) to: FHIP SuperNOFA '99, 
[Specify Initiative/Component], FHIP/FHAP Support Division, Fair 
Housing and Equal Opportunity, U.S. Department of Housing and Urban 
Development, 451 Seventh Street, SW, Room 5234, Washington, DC 20410.
    When you submit your application, please provide your name, mailing 
address (including zip code) and telephone number (including area code) 
on the front of the mailing envelope.
    For Application Kits. For an application kit and supplemental 
information, please call the HUD SuperNOFA Information Clearinghouse at 
1-800-HUD-8929. If you have a hearing or speech impairment, you may use 
the Center's TTY at 1-800-HUD-2209. When requesting an application kit, 
please refer to FHIP SuperNOFA '99, and provide your name, address 
(including zip code), and telephone number (including area code). 
Application kits also will be available on the Internet at: http://
www.hud.gov.
    For Further Information and Technical Assistance. For answers to 
your technical questions, you may contact Ivy L. Davis, Director, FHIP/
FHAP Support Division at 202-708-0800 ext. 7028 (this is not a toll-
free number). If you prefer to use a TTY telephone, you may call 1-800-
290-1617.

II. Amount Allocated

    The amount of $23,500,000 has been appropriated for the Fair 
Housing Initiatives Program in FY 1999. Approximately $15,000,000 is 
being made available for National and Regional/Local/Community-Based 
activities on a competitive basis to eligible organizations responding 
to this SuperNOFA. The remaining approximately $8,500,000 will be made 
available through separate Requests for Proposals.
    The amount available for each initiative is divided as follows:
    (A) Private Enforcement Initiative (PEI). The objective of this 
initiative is to support private fair housing enforcement organizations 
in their investigations of alleged violations of the Fair Housing Act 
and substantially equivalent State and local fair housing laws. 
Approximately $9,300,000 is allocated as follows:
    (1) General Multi-Year Component. $7,800,000; award cap: $300,000 
for single projects, $600,000 for partnership projects; project 
duration 24-36 months.
    (2) Joint Enforcement Project Component. $1,500,000; award cap: 
$300,000; project duration 24-36 months.
    (B) Education and Outreach Initiative (EOI). The objective of this 
initiative is to assist projects which inform the public about their 
rights and obligations under the Fair Housing Act and substantially 
equivalent State and local fair housing laws, to educate the public 
about the procedures for filing claims with HUD, and to increase the 
referrals of credible, legitimate fair housing cases (complaints) and 
other information to HUD. Approximately $4,500,000 is allocated for 18 
month projects; of this, $450,000 is allocated for the National Program 
and $4,050,000 is allocated for the Regional/Local/Community-Based 
Program as follows:
    (1) Regional/Local/Community-Based Program.
    (a) General Component. $2,550,000; award cap: $300,000.
    (b) Homeownership Component. $750,000; award cap: $150,000.
    (c) Disability Component. $750,000; award cap: $150,000.
    (2) National Program. Best Practices Component. $450,000; award 
cap: $225,000.
    (C) Fair Housing Organizations Initiative (FHOI). The objective of 
this initiative is to establish new fair housing enforcement 
organizations and to build the capacity of fair housing enforcement 
organizations to carry out enforcement activities. Approximately, 
$1,200,000 is allocated for the following components:
    (1) Establishing New Organizations Component (ENOC). $800,000; 
award cap: $400,000; project duration 24-36 months.
    (2) Continued Development Component (CDC). $400,000; award cap: 
$200,000; project duration 24 months. Under this component, your award 
may not exceed 50 percent of the operating budget of your organization 
for one year. Operating budget means your organization's total planned 
budget expenditures from all sources, including the value of in-kind 
and monetary contributions, in the 24 months for which funding is 
received.

III. Program Descriptions; Eligible Applicants; Eligible Activities

    The Fair Housing Initiatives Program (FHIP) assists projects and 
activities that increase compliance with the Fair Housing Act and 
substantially equivalent State and local fair housing laws. In 
September 1997, HUD announced a ``crackdown on housing discrimination'' 
pledging to substantially increase its enforcement actions. The 
activities funded under this SuperNOFA are expected to contribute to 
the accomplishment of this pledge.
    Immigrant populations are increasingly responsible for new 
household formations in the United States and they often face 
formidable barriers because of discriminatory housing practices. As the 
President has stated, these unlawful barriers hinder the goal of ``One 
America.'' It is imperative that fair housing efforts be directed to 
educating immigrant populations about their fair housing rights and 
ensuring that enforcement mechanisms address the specific types of 
discrimination they encounter on a

[[Page 9680]]

national, regional, local or community basis. Therefore, activities 
under the following components should address the fair housing needs of 
these and other ``underserved populations:'' (1) the General Component 
of the Private Enforcement Initiative; (2) the General Component of the 
Regional/Local/Community-Based Education and Outreach Initiative; and, 
(3) the Best Practices Component of the Education and Outreach 
Initiative National Program.

(A) Private Enforcement Initiative (PEI)

    (1) PEI-General Multi-Year Component. (a) Component Description. If 
you apply for this component, you must place special emphasis on the 
fair housing enforcement needs of new immigrant groups and other 
underserved populations, as defined in the introductory paragraph of 
Section III. of this program section of the SuperNOFA. The objective of 
this component is to carry out audits, tests, and other investigative 
activities which:
    (i) Determine compliance with accessibility requirements;
    (ii) Discover and remedy discrimination in the public and private 
real estate markets;
    (iii) Propose and undertake activities to detect and remedy more 
subtle and sophisticated forms of discriminatory practices; and
    (iv) Reduce the incidence of steering and other practices 
perpetuating segregation.
    (b) Eligible Applicants. (i) Eligible organizations are FHOs with 
at least one year of experience in complaint intake, complaint 
investigation, testing for fair housing violations, and meritorious 
claims; and QFHOs.
    (ii) If you are currently receiving PEI Multi-Year funding awarded 
to you under a previous NOFA, and, as of the date of this SuperNOFA, 
your funding expires after June 30, 2000, you are not eligible to apply 
for this General Multi-Year Component under this SuperNOFA. You are, 
however, eligible to apply for funding under any other initiative/
component.
    (iii) Your proposal will be considered either as a single or 
partnership project (see Section IV.(C)(3), Program Requirements, for 
more details). If you are submitting a partnership proposal, although 
your award will be made to a single organization, all members of your 
partnership must meet the eligibility requirements of this initiative.
    (c) Eligible Activities. Eligible activities include:
    (i) Complaint intake of allegations of housing discrimination, 
testing, evaluating testing results, or providing other investigative 
and complaint support for administrative and judicial enforcement of 
fair housing laws;
    (ii) Investigations of individual complaints and systemic housing 
discrimination for further enforcement processing by HUD, through 
testing and other investigative methods;
    (iii) Mediation or otherwise voluntarily resolving allegations of 
fair housing discrimination after a complaint has been filed; and
    (iv) Costs and expenses of litigating fair housing cases, including 
expert witness fees.
    (2) Joint Enforcement Project Component (JEP). (a) Component 
Description. This component promotes partnerships between private fair 
housing enforcement organizations, FHAP agencies and/or traditional 
civil rights organizations to focus on systemic investigations of 
housing discrimination. As set forth in Rating Factor 3: Soundness of 
Approach, these partnerships are expected to result in enforcement 
proposals being filed with HUD or sufficient information being provided 
to HUD for the filing of Secretary-initiated complaints or other use by 
the Department.
    (b) Eligible Applicants. If you are a QFHO or FHO, you are eligible 
for funding under this component and may subcontract with other 
organizations to carry out Joint Enforcement Project Components. 
Subcontracts should be discussed in accordance with Rating Factor 3: 
Soundness of Approach.
    (c) Eligible Activities. Eligible activities include:
    (i) Conducting joint investigations;
    (ii) Conducting joint investigative activities through testing, 
review of property records, development of strategies, interviews, 
etc.;
    (iii) Developing complaints for referral to HUD for action; and
    (iv) Sharing information with HUD regarding potential violations 
for investigation based upon complaints, data, or other sources.

(B) Education and Outreach Initiative (EOI)

    (1) General. (a) Initiative Description. This initiative assists 
projects which inform and educate the public about their rights and 
obligations under the Fair Housing Act and substantially equivalent 
State and local fair housing laws, and educate the public about the 
procedures for filing claims with HUD. The activities funded under this 
initiative are expected to result in an increased number of referrals 
of credible, legitimate fair housing claims and other information 
regarding discriminatory practices.
    (b) Eligible Applicants. QFHOs; FHOs; public and private non-profit 
organizations or institutions and other public or private entities that 
are formulating or carrying out programs to prevent or eliminate 
discriminatory housing practices; State or local governments; and FHAP 
Agencies. If you are a traditional civil rights organization, you are 
encouraged to apply under this initiative.
    (c) Eligible Activities. The following activities are eligible for 
all components under this initiative, unless otherwise noted under the 
specific component: holding educational symposia; duplicating existing 
fair housing materials for distribution throughout your project area; 
conducting outreach and providing information on fair housing through 
printed and electronic media; and providing outreach to persons with 
disabilities and/or their support organizations and service providers, 
housing providers, and the general public on the rights of persons with 
disabilities under the Fair Housing Act. Regional/Local/Community-Based 
activities must use existing locally available materials. You may not 
develop new fair housing materials except as a supplement to existing 
materials and/or in languages other than English or Braille.
    (2) Regional/Local/Community-Based Program.
    (a) General Component. (i) Component Description. This component 
places special emphasis on the fair housing needs of new immigrant 
groups and other underserved populations.
    (ii) Eligible Applicants. Are the same as described in Section 
III.(B)(1)(b), above.
    (iii) Eligible Activities. Are the same as described in Section 
III.(B)(1)(c), above.
    (b) Homeownership Component. (i) Component Description. This 
component focuses on education and outreach activities that improve 
access to homeownership for racial/ethnic minorities by addressing 
multiple barriers to fair housing choice (e.g., mortgage lending 
discrimination) and education and outreach aimed at reducing racial and 
other housing segregation.
    (ii) Eligible Applicants. Are the same as described in Section 
III.(B)(1)(b), above.
    (iii) Eligible Activities. Are the same as described in Section 
III.(B)(1)(c), above.
    (c) Disability Component. (i) Component Description. This component 
focuses on the education and outreach efforts of organizations

[[Page 9681]]

that assist persons with disabilities to understand their fair housing 
rights and the forms of discrimination they confront.
    (ii) Eligible Applicants. Are the same as described in Section 
III.(B)(1)(b), above.
    (iii) Eligible Activities. Are the same as described in Section 
III.(B)(1)(c), above.
    (3) National Program. (a) Best Practices Component. (i) Component 
Description. This component will fund a Best Practices Campaign for 
Fair Housing Enforcement and Education to collect prototypes of 
successful fair housing education and enforcement business practices 
and techniques which benefit underserved populations making them 
available to State and local governments and others.
    (ii) Eligible Applicants. Are the same as described in Section 
III.(B)(1)(b), above.
    (iii) Eligible Activities. Your program must include: (1) 
collecting examples of good fair housing enforcement, business 
practices and education techniques which benefit underserved 
populations, particularly non-English speaking persons and new 
immigrants, and (2) disseminating these best practices for use by State 
and local governments, fair housing organizations, housing industry 
groups and others. The Department encourages you to address at least 
one of the following statutory objectives: cooperation with real estate 
industry organizations; and/or dissemination of educational information 
and technical assistance to support compliance with the housing 
adaptability and accessibility guidelines contained in the Fair Housing 
Amendments Act of 1988.

(C) Fair Housing Organizations Initiative (FHOI)

    (1) Establishing New Organizations Component (ENOC). 
    (a) Component Description. The objective of this component is to 
establish new fair housing enforcement organizations in underserved 
areas.
    (b) Eligible Applicants. Only QFHOs are eligible to apply under 
this component.
    (c) Eligible Activities. You must propose the establishment of a 
new fair housing organization in an underserved area.
    (2) Continued Development Component (CDC)
    (a) Component Description. The objective of this component is to 
provide support to build the enforcement capacity of newly established 
fair housing enforcement organizations created under past FHOI-ENOC 
awards (new organizations).
    (b) Eligible Applicants. Only new organizations previously funded 
as new organizations through FHOI-ENOC grants that will have expired as 
of June 30, 2000, are eligible for funding under this component. A list 
of these organizations is provided in the FHIP Appendix at the end of 
this program section of the SuperNOFA.
    (c) Eligible Activities. Your application must build your 
enforcement capacity by proposing all or some of the following 
activities:
    (i) Complaint intake of allegations of housing discrimination; 
testing, evaluating testing results or providing other investigative 
and complaint support for administrative and judicial enforcement of 
fair housing laws;
    (ii) Investigations of individual complaints and systemic housing 
discrimination for further enforcement processing by HUD, through 
testing and other investigative methods;
    (iii) Mediation or otherwise voluntarily resolving allegations of 
fair housing discrimination after a complaint has been filed; and
    (iv) Costs and expenses of litigating fair housing cases, including 
expert witness fees.

IV. Program Requirements

(A) Requirements for All Initiatives/Components.

    In addition to the requirements listed in Section II of the General 
Section of this SuperNOFA, you must also meet the following application 
requirements:
    (1) Performance Measures and Deliverables. Your application must 
demonstrate how your program activities will support HUD goals, 
identify performance measures/outcomes in support of those goals, and 
identify current (baseline) conditions and target level of the 
performance measure that you plan to achieve. Your proposal also must 
contain a strategy for achieving project deliverables, with related 
timelines and milestones. If you are selected, your final performance 
measures and deliverables will be negotiated between you and HUD as 
part of your executed grant agreement, based upon your proposal.
    (2) Reports and Meetings On Performance Measures and Deliverables. 
In your final grant report, you must describe the status of performance 
measures in a spreadsheet format or other manner specified by the 
Department [also see the reporting requirements for PEI and FHOI grants 
at Section IV.(B)(9), below, of this program section of the SuperNOFA]. 
You are required to report quarterly on the status of project 
deliverables against your approved milestones and timelines and meet at 
least semi-annually with HUD to ensure that project activities satisfy 
grant requirements.
    (3) Single Award Limitation/Preference Must be Stated. (a) Except 
as provided in paragraph (b) of this section, you may apply for funding 
under more than one component for which you are an eligible applicant, 
but you may receive only one award under this program section of the 
SuperNOFA. If you apply for funding under more than one component, you 
must state your priority for selection and submit your preference in 
your application. If you fail to submit your preference, your 
application will be ineligible.
    (b) The requirements of paragraph (a) of this section do not apply 
to the components listed in this paragraph. In addition to the single 
award for which you are eligible under paragraph (a) of this section, 
if you are an eligible applicant for the following components, you may 
also apply for, and are eligible to receive:
    (i) An FHOI-Establishing New Organizations Component (ENOC) award, 
and/or
    (ii) One EOI-National Program award.
    (4) Independence of Awards. Although there is no limitation on the 
number of applications that you may submit, each project or activity 
proposed in an application must be independent and capable of being 
implemented without reliance on the selection of other applications 
submitted by you or other applicants. This provision does not preclude 
you from submitting a proposal which includes other organizations as 
sub-recipient.
    (5) Project Starting Period. For planning purposes, assume a start 
date no later than September 30, 1999.
    (6) Page Limitation. The narrative response for each of the five 
rating factors for award is limited to ten pages (this does not include 
forms or documents which are required under each factor). Pages 
exceeding that limit will not be evaluated. Furthermore, unrequested 
items, such as brochures and news articles, will not be considered. You 
should respond to each factor. Failure to provide narrative responses 
to all factors will result in your application not receiving points for 
the information omitted, which may significantly affect your 
application score.
    (7) Training. Your proposed budget must include a training set-
aside of $3,000 for single-year projects and $6,000 for multi-year 
projects. HUD will permit recipients to use these funds to

[[Page 9682]]

attend both HUD-sponsored and HUD-approved training.
    (8) Payment Contingent on Completion. Payments including multi-year 
award increments, are contingent on the satisfactory completion of your 
project activities and deliverables as called for in your grant 
agreement.
    (9) Accessibility Requirements. All activities and materials funded 
by this Program must be accessible to persons with disabilities [24 CFR 
8.4, 8.6, and 8.54].
    (10) Copyright Materials. You may copyright any work that is 
subject to copyright; however, HUD reserves the right to reproduce, 
publish, or otherwise use your work for Federal purposes, and to 
authorize others to do so as outlined in 24 CFR 84.36.
    (11) Ineligible Applications.
    (a) If you fail to meet the requirements set forth in Section II of 
the General Section of this SuperNOFA, your application will be 
ineligible for funding.
    (b) Award Caps. If you exceed the award cap for the component for 
which you are requesting funding, your application will be ineligible.
    (c) Research Activities. Projects aimed solely or primarily at 
research or dependent upon such data-gathering, including but not 
limited to surveys and questionnaires, are not eligible for funding.
    (d) Non-Profit Status. If you are applying under the PEI and FHOI 
Initiatives, you must submit documentation with your application that, 
as of the application due date of this program section of the 
SuperNOFA, you are a 501(c)(3) tax-exempt organization as determined by 
the Internal Revenue Service. Failure to submit this documentation with 
your application will be treated as a technical deficiency as discussed 
in Section V of the General Section of this SuperNOFA.
    (e) JEP Component. You must include in your JEP application a 
memorandum of understanding (MOU) from all project participants 
describing the signatories's duties and responsibilities. The MOU must 
be signed by an official of each project organization who is authorized 
to make commitments on behalf of the participating organization. If you 
fail to submit this documentation with your application, you will be 
ineligible.
    (f) Single Award Limitation/Preference Must be Stated. If your 
application does not state a funding preference as required by Section 
IV.(A)(3), above, of this program section of the SuperNOFA, your 
application will be ineligible.
    (12) Ineligible Activities.
    (a) Fair Housing and Free Speech. None of the amounts made 
available under this SuperNOFA may be used to investigate or prosecute 
under the Fair Housing Act any otherwise lawful activity engaged in by 
one or more persons, including the filing or maintaining of a non-
frivolous legal action, that is engaged in solely for the purpose of 
achieving or preventing action by a government official or entity, or a 
court of competent jurisdiction.
    (b) Suits Against the United States. No recipient of assistance 
under this program may use any funds provided by HUD for the payment of 
expenses in connection with litigation against the United States (24 
CFR 125.104(f)).
    (13) Program Definitions. The definitions that apply to this FHIP 
section of the SuperNOFA are as follows:
    Enforcement actions includes charges issued under the Fair Housing 
Act, settlements with relief equivalent to or greater than what HUD 
would seek had a charge been issued; settlements with relief for a 
broad class of victims; referrals to the Department of Justice (DOJ) 
where it has legal authority to take further action: zoning and land 
use cases (42 U.S.C. 3614(b)); pattern and practice cases [42 U.S.C. 
3614(a)]; requests for prompt judicial action; [42 U.S.C. 3610(e)]; and 
allegations of criminal violations of the Fair Housing Act (42 U.S.C. 
3631).
    Enforcement proposals are potential complaints under the Fair 
Housing Act which are timely, jurisdictional, and well developed which 
could reasonably be expected to become an enforcement action if an 
impartial investigation finds evidence supporting the allegations and 
the case proceeds to a resolution with HUD involvement.
    Fair Housing Assistance Program (FHAP) Agencies means State and 
local agencies which administer laws substantially equivalent to the 
Fair Housing Act, as described in 24 CFR part 115.
    Fair Housing Enforcement Organization (FHO) means an organization 
engaged in fair housing activities as defined in 24 CFR 125.103.
    Meritorious Claims means enforcement activities by an organization 
as defined in 24 CFR 125.103.
    Qualified Fair Housing Enforcement Organization (QFHO) means an 
organization engaged in fair housing activities as defined in 24 CFR 
125.103.
    Regional/Local/Community-Based Activities are defined at 24 CFR 
125.301(d).
    Traditional Civil Rights Organizations means non-profit 
organizations or institutions and/or private entities with a history 
and primary mission of securing Federal civil rights protection for 
groups and individuals protected under the Fair Housing Act and 
substantially equivalent State or local laws and which are engaged in 
programs to prevent or eliminate discriminatory housing practices.
    Underserved areas means jurisdictions where no public or private 
fair housing enforcement organizations exist or which are not 
sufficiently served by one or more public or private enforcement fair 
housing organizations, and which contain large concentrations of 
protected classes.
    Underserved populations means protected class members among new 
immigrant populations (especially ethnic minorities who are not English 
speaking) rural populations, persons with disabilities and the homeless 
that can be documented as historically not having been the focus of 
Federal, State or local fair housing enforcement efforts.
    (B) Requirements For Private Enforcement Initiative and Fair 
Housing Organizations Initiative
    (1) Broad-Based and Full Service Projects. If you are applying 
under the Private Enforcement Initiative (PEI) and Fair Housing 
Organizations Initiative (FHOI), your activities must be broad-based 
and full service enforcement projects that address discrimination 
against persons protected by the Fair Housing Act. Furthermore, your 
activities must contribute in measurable ways to HUD's commitment to 
increase its number of enforcement actions. Full service projects must 
include more than one type of the following enforcement related 
activities in your project proposal: interviewing potential victims of 
discrimination; analyzing housing-related issues; intaking complaints; 
testing; evaluating testing results; conducting preliminary 
investigations; conducting mediation; enforcing meritorious claims 
through litigation or referral to administrative enforcement agencies; 
and disseminating information about fair housing laws. ``Broad-based'' 
projects are not limited to a single fair housing issue, instead they 
cover multiple issues related to housing discrimination covered under 
the Fair Housing Act, such as: rental, sales and financing of housing.
    (2) Non-Profit Status. If you are applying under the PEI and FHOI 
Initiatives, you must submit documentation with your application that, 
as of the application due date of this program section of the 
SuperNOFA, you are a 501(c)(3) tax-exempt organization as determined by 
the Internal Revenue Service. Failure to

[[Page 9683]]

submit this documentation with your application will be treated as a 
technical deficiency as described in Section V. of the General Section 
of this SuperNOFA.
    (3) Mandatory Referrals. You are required to refer to HUD all cases 
arising from FHIP-funded audit testing. In all FHIP-funded cases where 
you find a basis for filing a complaint with a bona fide complainant 
other than your organization, you must file the complaint with HUD 
unless, consistent with the Act, the complainant refuses, in writing, 
to do so. In addition to filing with HUD, a bona fide complainant may 
file in Federal or State Court.
    (4) Outreach Expenses. Your budget may designate up to 5% of 
requested funds for education and outreach to promote awareness of 
services available, if the education activities are necessary for the 
successful implementation of your project.
    (5) Tester Requirements. Testers in your FHIP-funded testing 
activities must not have prior felony convictions or convictions of 
crimes involving fraud or perjury. All testers must receive training or 
be experienced in testing procedures and techniques. Testers and the 
organizations conducting tests, and the employees and agents of these 
organizations may not:
    (a) Have an economic interest in the outcome of the test, without 
prejudice to the right of any person or entity to recover damages for 
any cognizable injury;
    (b) Be a relative of any party in a case;
    (c) Have had any employment or other affiliation, within one year, 
with the person or organization to be tested; or
    (d) Be a licensed competitor of the person or organization to be 
tested in the listing, rental, sale, or financing of real estate.
    (6) Testing Experience. When proposing testing other than rental or 
accessibility testing, you must document, to HUD's satisfaction, that 
at minimum you have conducted successful rental testing. Documentation 
of your experience must include, a general description of: when and 
where tests occurred, the entities tested, and the overall results of 
the tests, including complaints filed and settlements or remedies 
secured. You must include copies of testing methodologies and training 
materials used. The testing methodology and procedures will remain 
confidential for enforcement purposes.
    (7) Review and Approval of Testing Methodology. If your Statement 
of Work proposes testing, other than rental testing, HUD reserves the 
right to require as a deliverable to be reviewed and approved by HUD 
prior to your carrying out the testing activities: (a) The testing 
methodology to be used, and (b) the training to be provided to testers. 
Your testing methodology and procedures will remain confidential for 
enforcement purposes.
    (8) Conflict of Interest and Use of Settlement Funds 
Certifications.
    (a) You must certify you will not solicit funds from or seek to 
provide fair housing educational or other services or products for 
compensation, directly or indirectly, to any person or organization 
which has been the subject of FHIP-funded testing by you during the 12 
month period following the test. This does not preclude settlement 
based on investigative findings. HUD reserves the right to negotiate 
with awardees additional provisions addressing potential conflicts of 
interest.
    (b) You must certify that any compensation you receive directly or 
indirectly from a settlement, conciliation, or award of damages as a 
result of activities funded under this SuperNOFA, will be used only to 
carry out activities specifically authorized under your cooperative 
agreement/grant agreement or to carry out other activities approved by 
HUD.
    (9) Reports. You must provide reports in a format (which may be 
computer generated), at a frequency and with contents specified by HUD. 
Your report must include: the number and basis of claims/complaints 
filed with HUD or in Federal/State court, the number and terms of 
settlements or other outcomes achieved. The terms of settlements 
ordered by a court or other tribunal to be kept confidential need not 
be produced.
    (10) Enforcement Log. You are required to record information about 
the funded project in a case tracking log (or Fair Housing Enforcement 
Log) to be supplied by HUD. Such information must include: the number 
of complaints of possible discrimination you have received; the 
protected basis of these complaints; the issue, test type, and number 
of tests utilized in the investigation of each allegation; the 
respondent type and testing results; the time for case processing, 
including administrative or judicial proceedings; the cost of testing 
activities and case processing; to whom the case was referred; and the 
resolution and type of relief sought and received. You must agree to 
make this log available to HUD. This log will be considered 
confidential for enforcement purposes.
    (C) Additional Requirements for Private Enforcement Initiative
    (1) Your proposal must include a description of the enforcement 
proposals to be referred to HUD to increase enforcement actions. 
Therefore, you must state what information you intend to collect and 
analyze, the kind and number of complaints you anticipate referring to 
HUD for enforcement purposes, and a method for referring such 
complaints. Your application should explain how you plan to structure 
tests, train investigators, conduct investigations, etc. This 
description should make clear the safeguards to be used to ensure that 
complaints referred to HUD for enforcement action are fully 
jurisdictional under the Act and supported by credible and legitimate 
evidence that the Act has been violated.
    (2) Neither you nor any sub-recipient are permitted to charge or 
claim credit for any activities performed under the FHIP Program toward 
any other Federal project/funds. For example: If you receive a PEI-JEP 
award and you are a FHAP agency, you will not be able to count any 
cases/referrals arising under an approved project toward your FHAP case 
processing calculations.
    (3) PEI-General Multi-Year Component. If you apply for this 
component as a single or partnership project the amount awarded will 
vary as noted in Section II.(A)(1), Amount Allocated, above in this 
program section of the SuperNOFA. A higher award cap is allocated for 
partnership projects. If you are submitting a partnership proposal you 
must meet the following requirements:
    (a) You must designate a single organization with responsibility 
for administering the grant and overseeing project activities which 
must be the organization submitting the application.
    (b) All members of your partnership must be identified in your 
application with the duties and responsibilities for each partner 
described fully,
    (c) All partnership members must meet the eligibility requirements 
of this initiative (see Section III.(A)(1)(b), eligible applicants for 
PEI), and
    (d) Your application must make clear you are submitting a 
partnership proposal.
    (D) Additional Requirements for Education and Outreach Initiative 
National Program and Regional/Local/Community-Based Program
    (1) All projects must address housing discrimination based on race, 
color, religion, sex, disability, familial status, or national origin.
    (2) Your proposal must contain a description of how your activities 
or your final products can be used by other agencies and organizations. 
If modifications are necessary for use by others, describe the 
modifications.

[[Page 9684]]

    (3) Your proposal must describe the referral process and list in 
the Statement of Work the projected referrals to be submitted to HUD.
    (E) Additional Requirements for Fair Housing Organizations 
Initiative: Establishing New Organizations Component ENOC. You must 
propose the establishment of a new fair housing enforcement 
organization in an underserved area. You must provide a justification 
for why the target project area is underserved. Your justification must 
include data and studies that indicate the presence of housing 
discrimination, segregation and/or other indices of discrimination in 
the locality based upon race, color, religion, sex, national origin, 
familial status, or disability.

V. Application Selection Process

(A) Rating and Ranking

    (1) Your application for funding will be evaluated competitively 
under one of the following components:
    (a) Private Enforcement Initiative (PEI):
    (i) General Multi-Year Component;
    (ii) Joint Enforcement Project Component;
    (b) Education and Outreach Initiative (EOI):
    (i) Regional/Local/Community-Based Program:
    (1) General Component;
    (2) Homeownership Component;
    (3) Disability Component;
    (ii) National Program:
    (1) Best Practices Component;
    (c) Fair Housing Organizations Initiative (FHOI):
    (i) Establishing New Organizations Component;
    (iii) Continuing Development Component.
    (2) You will be awarded points and assigned a score based on the 
Factors for Award. After eligible applications are evaluated against 
the factors for award and assigned a score, they will be ranked in 
order by score. A minimum score will be established below which 
applications will not be considered to be of sufficient quality for 
funding. This score (based upon review of the applications by applying 
the factors for award) will identify applications that will not 
effectively achieve the objectives of this SuperNOFA. This score will 
vary based upon the overall quality of the proposals received in each 
program or component, but will be set within 30 percentage points of 
the average score of all proposals that are scored in that program or 
component. The Rating Factor requirements listed in the General Section 
of this SuperNOFA are applicable to applicants applying for funding 
under this Program.
    (3) Tie Breaking. When there is a tie in the overall score, the 
applicant with the higher score under Rating Factor 3: Soundness of 
Approach will be ranked higher. If the applications are equal in this 
respect, the application that receives a total higher number of points 
under Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Experience will be ranked higher. If these scores are 
identical then the applicant with the lower request for FHIP funding 
will be ranked higher.

(B) Selections

    (1) In General. Except as noted in paragraph (2) ``Achieving 
Diversity of Awards,'' proposals of sufficient quality to be funded 
will be funded in rank order until all available funds have been 
obligated or until no applications of sufficient quality remain. The 
final decision rests with the selecting official--the Assistant 
Secretary for Fair Housing and Equal Opportunity, or designee.
    (2) Achieving Diversity of Awards. The selecting official shall 
have discretion to pass over applicants in funding a component in 
accordance with the funding diversity or geographic diversity procedure 
or both procedures. If the selecting official decides to use any of 
these procedures, the selecting official shall apply that procedure 
equally to all applicants. If the selecting official opts to use both 
procedures, he/she will use the funding diversity procedure first, and 
then apply the geographic diversity procedure. These procedures are 
applied component-by-component. No shifting of leftover funds from a 
component will occur until all applications of sufficient quality in 
that component are awarded funds.
    (a) Funding Diversity. The selecting official may pass over 
applicants to provide broader representation among funded entities. For 
any component in which the Selecting Official decides to use this 
procedure, the selecting official will pass over applicants who have 
received two FHIP SuperNOFA grants in the past five years in favor of 
lower ranked applications of sufficient quality to be funded who have 
not received two FHIP SuperNOFA grants in the past five years. Prior 
receipt of an ENOC award will not be included in determining whether an 
applicant received two grants in the past five years. Passed over 
applications of sufficient quality will be placed at the bottom of the 
ranking list of applications of sufficient quality for the component, 
but will be placed in rank order among passed over applications. Once 
applications of sufficient quality to be funded are reordered to 
reflect the funding diversity procedure, the selecting official shall 
proceed in one of two ways:
    (i) The selecting official may apply the geographic diversity 
procedure to all applications of sufficient quality, or
    (ii) The selecting official may not apply geographic diversity and 
award funds to applicants based on their rank order except that passed 
over applicants are funded in rank order after all other applicants of 
sufficient quality are funded, until funds are exhausted or there are 
no more applications of sufficient quality to be funded.
    (b) Geographic Diversity. To provide for broader geographic 
representation among funded projects, the selecting official will have 
the discretion to pass over an applicant where there is more than one 
applicant located in a Metropolitan Statistical Area (MSA), as defined 
by the Bureau of the Census. If the selecting official decides to use 
this procedure in a component, the selecting official will select from 
the applications of sufficient quality to be funded the highest ranked 
applicant in each MSA, once applications of sufficient quality have 
been reordered to reflect the funding diversity procedure. If funding 
diversity has been applied, this is the highest ranked applicant in 
each MSA that was not passed over in that procedure. Passed over 
applications of sufficient quality will go to the bottom of the ranking 
list of applications of sufficient quality to be funded for the 
component, but will be placed in rank order among passed over 
applications, whether passed over for funding or geographic diversity. 
If additional funds remain in the component after funding the highest 
ranked applicant in each MSA, the selecting official shall proceed in 
one of two ways:
    (i) The selecting official may decide to apply geographic diversity 
to the passed over applicants, to the extent that additional funds 
remain. If, after applying geographic diversity a second time, 
additional funds still remain, the remaining funds will be awarded 
based on the rank order of any remaining applications of sufficient 
quality to be funded, irrespective of MSA.
    (ii) If the selecting official opts not to apply geographic 
diversity a second time, then remaining funds shall be awarded to 
passed over applicants based on their rank order until funds are 
exhausted.

(C) Priority for Shifting Left Over Funds

    If after all applications within funding range have been selected 
in a initiative/component and leftover funds remain

[[Page 9685]]

available, the selecting official or designee will have the discretion 
to shift leftover funds in rank order within and between initiatives/
components as follows:
    (1) First, within initiatives:
    (a) For PEI and EOI, leftover funds from any component will be 
shifted to the General Component;
    (b) For FHOI, leftover funds from ENOC will be shifted to CDC.
    (2) Second, between initiatives: if after shifting funds, as noted 
above, leftover funds remain, those funds will be shifted to the PEI-
Multi-Year General Component.

(D) Factors for Award Used To Evaluate and Rate All Applications Except 
the National Program of the Education and Outreach Initiative

    The factors for rating and ranking applicants and the maximum 
points for each factor, are provided below. The maximum number of 
points to be awarded any application is 102. This includes two EZ/EC 
bonus points, as described in the General Section of the SuperNOFA.
Rating Factor 1: Capacity of Applicant and Relevant Organizational 
Experience (20 Points)
    This factor addresses the extent to which you have the 
organizational resources necessary to successfully implement your 
proposed activities in a timely manner. In rating this factor HUD will 
consider the extent to which your proposal demonstrates:
    (1) (10 points) Specific Description of Staff for Proposed 
Activities.
    (a) The knowledge and experience of your proposed project director 
and staff, including the day-to-day program manager, consultants and 
contractors in planning and managing programs for which you're 
requesting funding. Experience will be judged in terms of recent, 
relevant and successful experience of you and your staff to undertake 
eligible program activities.
    (b) Whether there is sufficient personnel or you will be able to 
quickly access qualified experts or professionals to deliver the 
proposed activities in a timely and effective fashion, and your 
readiness and ability to immediately begin your proposed work program. 
To demonstrate there is sufficient personnel, you must submit the 
proposed number of staff years for your proposed employees and experts, 
the titles and relevant professional background and experience of each 
employee and expert proposed, and the roles to be performed by each. 
You should identify the key personnel in your Statement of Work, as 
discussed in Rating Factor 3: Soundness of Approach.
    (2) (10 points for either (a) or (b)) Specific Description of 
Experience Relevant to the Proposed Activities.
    (a) Your past grant experience in terms of your ability to attain 
demonstrated measurable progress in the implementation of your most 
recent activities where performance has been assessed as measured by 
expenditures and progress in achieving the purpose of the activities. 
HUD will also consider any evidence it has in its files of your failure 
under past awards to comply with grant award provisions; or
    (b) If you have not received funding in the past, your 
demonstration of experience in managing programs, and carrying out 
management responsibilities for programs similar in scope or nature to 
the work activities proposed. Therefore, if you have managed large, 
complex, interdisciplinary programs, or work similar in scope or 
complexity to your proposed program, you should include that 
information in your response.
Rating Factor 2: Need/Distress/Extent of the Problem (25 Points)
    This factor addresses the extent to which there is a need to fund 
your proposed activities and an indication for the urgency of meeting 
the need in your target area. In addition, if you are applying under 
the General Components of PEI and/or EOI, you should address the fair 
housing needs of new immigrants and other underserved populations as 
defined in Section IV.(A)(11) of this program section of the SuperNOFA. 
In rating this factor, HUD will consider the extent to which you 
demonstrate:
    (1) (15 points) Documentation of Need. The level of need for your 
project activities in your target area, including the needs of new 
immigrants and other underserved populations (under the EOI-General and 
PEI-General Components), and the urgency in meeting the need using 
statistics and analyses contained in a data source(s) that is sound and 
reliable. You should analyze the level of need for your proposed 
activities and document the level of need in the specific area where 
your activities will be carried out. Attention must be paid to 
documenting need where activities will be targeted, rather than the 
entire locality or State. If your target area is an entire locality or 
State, then documenting need at this level is appropriate. Your 
proposal may reference the extent to which your community's 
Consolidated Plan (CP) and Analysis of Impediments to Fair Housing 
Choice (AI) identify the level of the problem and urgency of need. In 
addition, your proposal should reference the extent to which project 
activities will affirmatively further fair housing (AFFH), by 
describing how proposed activities will assist in overcoming 
impediments to fair housing choice identified in the jurisdiction's AI 
(Analysis of Impediments to Fair Housing Choice), which is a component 
of the jurisdiction's Consolidated Plan (CP), or other planning 
document that addresses fair housing issues. Additional examples of how 
you may document need may be obtained from Chapter 5 of the ``Fair 
Housing Planning Guide, Vol. 1,'' use of HUD reports and analyses, 
relevant economic and/or demographic data including indices of 
segregation in areas by race or national origin, government or 
foundation reports and studies, news articles, and other information 
which relate to your proposed activities.
    In evaluating this sub-factor for applications submitted under the 
General Components of PEI and EOI, five of the 15 points will be 
awarded to proposals which address the needs of underserved 
populations, as defined in Section IV.(A)(11) of this program section 
of the SuperNOFA. When describing the need of underserved populations, 
you should include: (a) the extent to which there is an urgent and/or 
unmet need for undertaking eligible activities aimed at underserved 
populations in the area to be served, and (b) a strategy for providing 
fair housing services to these populations.
    (2) (10 points) Rationale for Proposed Activities and Methods. The 
extent to which your proposal provides a rationale for how the proposed 
activities and methods most effectively deal with the need you 
described in responding to the preceding sub-factor. You should discuss 
how you took into account existing and planned efforts of government 
agencies, community-based organizations, faith-based institutions, for-
profit firms, and other entities to address such needs in the 
community(ies) to be served, how the proposed program complements or 
supplements existing efforts and why additional funds are being 
requested.
Rating Factor 3: Soundness of Approach (35 Points)
    This factor addresses the quality and cost-effectiveness of your 
proposed Statement of Work. You must show a clear relationship between 
your proposed activities, community needs and the purpose of the 
program funding in order to receive points for this factor. In 
addition, HUD has pledged to substantially increase its enforcement

[[Page 9686]]

actions, and all projects funded under this SuperNOFA shall contribute 
to the accomplishment of this goal. In evaluating your response to this 
rating factor, HUD will consider the extent to which your proposal 
demonstrates:
    (1) (15 points) Description of Proposed Activities. How your 
proposed activities will result in the referral of enforcement 
proposals to HUD as demonstrated by the number projected in your 
proposal and method used to obtain that projection. Specifically, your 
projection should relate to cases being referred to HUD during the 
period of performance of the grant from activities you will perform 
under your award. In responding to this factor, describe the methods to 
be developed or used to identify and refer enforcement proposals to 
HUD, how you derived your projected number of referrals and the 
relationship to your proposed activities. If your past activities have 
resulted in successful enforcement proposals being referred to HUD, 
describe these actions and the outcome of such referrals.
    Examples of enforcement proposals include:
    (i) Allegations that are supported by evidence that meet the 
requirements for a filed complaint under the Fair Housing Act, 
including prima facie evidence, with or without related testing 
evidence;
    (ii) Results of testing or audits demonstrating potential housing 
discrimination;
    (iii) Well-developed analysis of data including Home Mortgage 
Disclosure Act (HMDA), Community Reinvestment Act (CRA) Analyses, 
Census data, current studies of residential segregation, or other 
similar documentation supporting allegations of discrimination; and
    (iv) Referrals of claims to HUD on behalf of individuals or groups 
other than your organization.
    (b) Your application must provide a basis for your specific 
activities relating to enforcement proposal referrals to HUD and your 
projected number of enforcement proposal referrals that are described 
in your Statement of Work. Your final performance measures for 
enforcement proposal referrals will be negotiated between you and HUD 
as part of the executed grant agreement and will be based upon your 
proposal.
    (2) (10 points) Statement of Work. Additionally, HUD is looking for 
an efficient, effective and feasible Statement of Work that:
    (a) Describes in broad terms the design and objectives of your 
proposal, including the geographic area to be served; the protected 
classes to be served; end product(s); program improvements to be 
achieved; total number of staff needed to complete all proposed 
activities and projected referrals to HUD; key personnel by years of 
experience, name and function; and the number of referrals for 
enforcement you expect to refer to HUD. You must also describe how 
program objectives for the component for which you are seeking funding 
will be met (e.g., enforcement efforts (PEI); education and outreach 
(EOI); creating or building a fair housing capacity organization 
(FHOI));
    (b) Outline in chronological order your administrative and program 
tasks to be performed and the duration of the project. Your outline 
should identify all tasks and sub-tasks to be performed and by whom, 
i.e., you or a sub-recipient; deliverables which will be provided to 
HUD and when; and technically competent methodologies you will use to 
carry out these tasks.
    (3) (10 points) Budget and Financial Controls. HUD also will assess 
the soundness of your approach by evaluating the following:
    (a) The quality, thoroughness and reasonableness of the cost 
estimates provided. As part of your response, a summary budget should 
be provided which identifies costs by category in accordance with the 
following:
    (i) Direct Labor by position or individual, indicating the 
estimated hours per position, the rate per hour, estimated cost per 
staff position and the total estimated direct labor costs;
    (ii) Fringe Benefits by staff position, identifying the rate, the 
salary base the rate was computed on, estimated cost per position, and 
the total estimated fringe benefit cost;
    (iii) Material Costs indicating the item, unit cost per item, the 
number of items to be purchased, estimated cost per item, and the total 
estimated material costs;
    (iv) Transportation Costs, as applicable. Where a local private 
vehicle is proposed to be used, costs should indicate the proposed 
number of miles, rate per mile of travel identified by item, and 
estimated total private vehicle costs. Where air transportation is 
proposed, costs should identify the destination(s), number of trips per 
destination, estimated air fare and total estimated air transportation 
costs. If other transportation costs are listed, you should identify 
the other method of transportation selected, the number of trips to be 
made and destination(s), the estimated cost, and the total estimated 
costs for other transportation costs;
    (v) Per diem, as applicable. You should identify per diem or 
subsistence costs per travel day and the number of travel days 
included, the estimated costs for per diem/subsistence and the total 
estimated transportation costs. You should use the Federal Travel 
Regulation for per diem rate for cities listed under ``Transportation 
Costs'' in your cost estimate;
    (vi) Equipment charges, if any. Equipment charges should identify 
the type of equipment, quantity, unit costs and total estimated 
equipment costs;
    (vii) Consultant Costs, if applicable. Indicate the type, estimated 
number of consultant days, rate per day, total estimated consultant 
costs per consultant and total estimated costs for all consultants;
    (viii) Subcontract Costs, if applicable. Indicate each proposed 
individual subcontract and amount. Each proposed subcontract should 
include a separate budget which identifies proposed costs by cost 
categories. In addition, your project budget should include any costs 
related to subcontract(s) with FHAP agencies and traditional civil 
rights organizations which account for activities related to the sub-
recipient's role in the project. A separate detailed budget for each 
subcontract should be included in the application. If you have selected 
sub-recipients or are submitting a joint application with one partner 
serving as a lead applicant, you must provide the actual subcontract 
costs;
    (ix) Other Direct Costs listed by item, quantity, unit cost, total 
for each item listed, and total direct costs for the award;
    (x) Indirect Costs should identify the type, approved indirect cost 
rate, base to which the rate applies and total indirect costs.
    (b) The rationale used to determine costs and validation of fringe 
and indirect cost rates, if you are not using an accepted, Federally 
negotiated indirect cost rate;
    (c) The extent to which your program is cost effective in achieving 
the anticipated results of your proposed activities as well as in 
achieving significant community impact; and
    (d) The extent to which you demonstrate capability in handling 
financial resources with adequate financial control procedures and 
accounting procedures. HUD will consider items such as findings 
identified in your most recent audits, internal consistency in the 
application of numeric quantities, accuracy of mathematical 
calculations and other available information on financial management 
capability.

[[Page 9687]]

Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure community resources 
(Note: financing is a community resource) which can be combined with 
HUD's program resources to achieve program purposes. In other words, to 
what extent can you get groups in the community to work with you. In 
evaluating this factor HUD will consider:
    (1) (5 points) Extent to Which Applicant Has Secured Other 
Resources. The extent to which local groups will provide additional 
resources to increase the effectiveness of the proposed activities. 
Resources may include funding or in-kind contributions, such as 
services or equipment, allocated to the purpose(s) of your proposal. 
Resources may be provided by governmental entities, public or private 
non-profit organizations, for-profit private organizations, or other 
entities willing to work with you. You may also work with other FHIP-
funded recipients to coordinate the use of resources in your project 
area.
    (2) (5 points) Evidence of Firm Commitment of Leveraging. The 
extent to which there is evidence of leveraging. You can establish this 
by providing letters of firm commitment; memoranda of understanding 
(MOU); or agreements to participate from those entities identified as 
partners in your application. Each letter of commitment, memorandum of 
understanding, or agreement to participate should: (a) identify the 
organization, (b) describe the proposed level of commitment, (c) 
outline the responsibilities as they relate to your proposal, and (d) 
be signed by an official of the organization legally able to make 
commitments on behalf of the organization. If you are applying under 
the PEI-JEP you must submit a memorandum of understanding in support of 
your leveraged partnership.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you coordinate your 
activities with other organizations in the project area, participate or 
promote participation in the project area's Consolidated Planning 
process (including Analysis of Impediments to Fair Housing Choice), and 
are creating linkages with other activities in the community. In other 
words, to what extent are you working with others to address community 
needs in your project area. In evaluating this factor, HUD will 
consider the extent to which you demonstrate:
    (1) Project activities will reach your targeted audience. This 
includes a discussion of how: (a) your methods or approaches will 
ensure that project activities and materials are made available to 
local groups and organizations, and (b) the project can enhance the 
activities or work in tandem with such groups or organizations in your 
project area. At a minimum, your application should discuss procedures 
you will use to promote awareness of the services provided by your 
proposal.
    (2) Project activities will make communities and organizations in 
your project area aware of opportunities for linking activities with:
    (a) Other proposed or on-going HUD-funded program activities;
    (b) Other proposed or on-going State, Federal, local or privately 
funded activities which, taken as a whole, support and sustain a 
comprehensive system to address the purpose of these programs; and
    (c) Other activities being undertaken to address barriers to 
housing choice identified in the Consolidated Plan's Analysis of 
Impediments to fair housing choice.

(E) Factors for Award Used To Evaluate and Rate Applications for the 
National Education and Outreach Initiative Program

    The factors for rating and ranking applicants and the maximum 
points for each factor, are provided below. The maximum number of 
points to be awarded any application is 102. This includes two EZ/EC 
bonus points, as described in the General Section of the SuperNOFA.
Rating Factor 1: Capacity of Applicant and Relevant Organizational 
Experience (20 Points)
    This factor addresses the extent to which you have the 
organizational resources necessary to successfully implement your 
proposed activities in a timely manner, and your ability to collect or 
make available prototypes of successful fair housing education and 
enforcement business practices and techniques, as appropriate, on a 
national scale. The rating of your organization and staff for technical 
merit or threshold compliance, unless otherwise specified, will include 
any consultants, sub-recipients, and partners that are firmly committed 
to the project. In rating this factor, HUD will consider the extent to 
which your application demonstrates:
    (1) (5 points) General Description of Applicant Organization and 
Relevant Experience.
    (a) The eligibility and qualifications of your organization; the 
type of organization (e.g., public, private, non-profit, for profit); 
and your general areas of activity or line of business;
    (b) Your management of large, complex, interdisciplinary projects;
    (c) Awards and major accomplishments of your organization. HUD may 
also consider any documented evidence, such as performance reviews, 
newspaper articles, or monitoring findings, that may reflect positively 
or negatively upon your ability and the proposed staff's ability to 
perform the work;
    (d) Your ability to handle financial resources with adequate 
financial control procedures and accounting procedures. In addition, 
HUD will consider findings identified in your most recent audits; 
internal consistency in the application of numeric quantities; accuracy 
of mathematical calculations; and other available information on 
financial management capability.
    (2) (10 points) Specific Description of Staff for Proposed 
Activities. Whether you have sufficient personnel or will be able to 
quickly access qualified experts or professionals to deliver your 
proposed activities in a timely and effective fashion, including your 
readiness and ability to immediately begin your proposed work program; 
the knowledge and experience of your overall proposed project director 
and staff, including the day-to-day program manager, consultants and 
sub-recipients in planning and managing programs for which funding is 
being requested. To demonstrate that you have sufficient personnel, you 
must submit the proposed number of staff hours for your employees and 
experts allocated to your project, the titles and relevant professional 
background and experience of each employee and expert proposed to be 
assigned to your project, and the roles to be performed by each 
identified employee and expert. Experience will be judged in terms of 
at least two years' worth of recent and relevant experience to 
undertake eligible program activities or projects similar in scope or 
nature and directly relevant to your work activities proposed.
    (3) (5 points) Specific Description of Experience Relevant to the 
Proposed Activities. Demonstrated past experience(s) in collecting, 
analyzing and making available prototypes of successful fair housing 
education and enforcement business practices and techniques, as 
appropriate, on a national scale. You must describe your ability to 
understand fair housing enforcement-related issues/policies/practices 
which influence discriminatory housing

[[Page 9688]]

practices. In responding to this rating factor, it will be especially 
helpful to describe your past experiences with developing and 
implementing innovative strategies and the results of those efforts. 
The rating of this factor for technical merit will include any 
consultants, sub-recipients, and partners that are identified as 
participants in your project. If you have or are currently receiving 
funding under FHIP, you should list and provide the status of your 
previous referrals of enforcement proposals to HUD, especially those 
made during FY 1998 and a list of cases referred to HUD for joint 
enforcement.
Rating Factor 2: Need/Distress/Extent of the Problem (25 Points)
    This factor addresses the extent to which you document and address 
the national need for educating immigrant and other underserved 
populations about their fair housing rights and ensure that enforcement 
mechanisms address the specific types of discrimination they encounter. 
You should state which activities and methods you intend to address, 
and how your proposal offers the most effective approach for dealing 
with that national need. In responding to this factor, you will be 
evaluated on the following:
    (1) (15 points) Documentation of Need. The extent to which you 
describe and document the national need you intend to address, and 
demonstrate a grasp of the elements of the problem and its 
pervasiveness at the national level. Your description of the national 
need will be used to evaluate the depth of your understanding of the 
problem as an indication of your ability to address the problem; and
    (2) (10 points) Rationale for Proposed Activities and Methods. The 
extent to which you provide a rationale for how your proposed 
activities and methods most effectively deal with the national need 
described in response to sub-factor (1), above.
Rating Factor 3: Soundness of Approach (35 Points)
    This factor addresses the quality and cost-effectiveness of your 
proposed Statement of Work. In evaluating this factor, HUD will 
consider the extent to which:
    (1) (15 Points) Description of Proposed Activities. Your proposed 
activities will be conducted in a manner (e.g., languages, formats, 
locations, distribution, use of minority media) to reach and benefit 
all members of the public, especially underserved populations; and 
proposed activities will yield long-term results and innovative 
strategies or ``best practices'' that can be readily disseminated to 
other organizations and State and local governments.
    (2) (10 Points) Statement of Work. Applications include Statement 
of Work that:
    (a) Clearly describe your specific tasks and sub-tasks to be 
performed; the sequence in which the tasks are to be performed, noting 
areas of work which must be performed simultaneously; estimated 
completion dates; and program deliverables to be completed within the 
grant period, including specific numbers of quantifiable end products 
and program improvements you intend to deliver by the end of the award 
agreement period as a result of the work performed;
    (b) Provide national coverage and identify the protected class 
focus of the project, and serve the needs of new immigrants and 
underserved populations; and
    (c) Describe the immediate benefits of your proposal and how you 
will measure the benefits. You must describe the methods you will use 
to determine the effectiveness of your proposed activities and benefits 
achieved to receive points.
    (3) (10 Points) Budget and Financial Controls. You must include 
proposed budgets that demonstrate:
    (a) Cost estimates, salary levels, staff assignments, number of 
staff hours, and other budget items are reasonable, allowable, and 
appropriate for your proposed activities.
    (b) Your proposed program is cost effective in achieving its 
anticipated results, as well as in achieving significant impact.
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure community resources 
(Note: financing is a community resource) which can be combined with 
HUD's program resources to achieve program purposes. In other words, to 
what extent can you get others to work with you. In evaluating this 
factor HUD will consider:
    (1) (5 points) Extent to Which Applicant has Secured Other 
Resources. The extent to which others will provide additional resources 
to increase the effectiveness of your proposed project activities. 
Resources may include funding or in-kind contributions, such as 
services or equipment allocated to the purpose(s) of your proposal. 
Resources may be provided by governmental entities, public or private 
non-profit organizations, for-profit private organizations, or other 
entities willing to work with you. You may also work with other FHIP-
funded recipients to coordinate the use of resources in the project 
area.
    (2) (5 points) Evidence of Firm Commitment of Leveraging. The 
extent to which there is evidence of leveraging. You can establish this 
by providing letters of firm commitment; memoranda of understanding; or 
agreements to participate from those entities identified as partners in 
your application. Each letter of commitment, memorandum of 
understanding, or agreement to participate should: (a) identify the 
organization, (b) describe the proposed level of commitment, (c) 
outline the responsibilities as they relate to the proposed project, 
and (d) be signed by an official of the organization legally able to 
make commitments on behalf of the organization.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you coordinate your 
activities with other organizations in your project area, and are 
creating linkages with other activities in your project area. In other 
words, to what extent are you working with others to address needs in 
your project area. In evaluating this factor, HUD will consider the 
extent to which you demonstrate:
    (1) Project activities will reach your targeted audience. This 
includes a discussion of how: (a) your methods or approaches will 
ensure that project activities and materials are made available to 
local groups and organizations, and (b) the project can enhance the 
activities or work in tandem with such groups or organizations in your 
project area. At a minimum, your application should discuss procedures 
you will use to promote awareness of services provided by your proposed 
project.
    (2) Project activities will make communities and organizations in 
your project area aware of opportunities for linking activities with:
    (a) Other HUD-funded programs activities, proposed or on-going; or 
(b) Other proposed or on-going State, Federal, local or privately 
funded activities which, taken as a whole, support and sustain a 
comprehensive system to address the purpose of these programs.

(F) Applicant Notification and Award Procedures

    (1) Notification. No information will be available to you during 
the period of HUD evaluation, approximately 90 days, except for 
notification in writing or by telephone if HUD determines your

[[Page 9689]]

application is ineligible or has correctable deficiencies (as described 
in Section V. of the General Section of the SuperNOFA). Selections will 
be announced by HUD upon completion of the evaluation process and will 
be subject to final award negotiations of award.
    (2) Negotiations. After HUD has ranked the applications and 
provided notifications to those selected, HUD will require selected 
applicants to participate in negotiations to determine the specific 
terms of the cooperative or grant agreement. HUD will follow the 
negotiation procedures described in Section III.(D) of the General 
Section of the SuperNOFA.
    (3) Funding Instrument. HUD expects to award a cost reimbursable or 
fixed-price cooperative or grant agreement to each successful 
applicant. HUD reserves the right, however, to use the form of 
assistance agreement determined to be most appropriate after 
negotiation with the selected applicants.
    (4) Adjustments to Grant Amounts. As provided in Section III.(E) of 
the General Section of the SuperNOFA, HUD may approve an application 
for an amount lower than the amount requested, fund only portions of an 
application, withhold funds after approval, and/or require that special 
conditions be added to the grant agreement, in accordance with 24 CFR 
84.14, the requirements of this SuperNOFA, or where:
    (a) HUD determines the amount requested for one or more eligible 
activity is unreasonable or unnecessary;
    (b) An ineligible activity is proposed in an otherwise eligible 
project;
    (c) Insufficient amounts remain to fund the full amount requested 
in the application, and HUD determines that partial funding is a viable 
option; or
    (d) An applicant has demonstrated an inability to manage HUD 
grants, particularly FHIP grants.
    (5) Performance Sanctions. A grantee or sub-recipient, failing to 
comply with the procedures set forth in its grant agreement will be 
liable for such sanctions as may be authorized by law, including 
repayment of improperly used funds, termination of further 
participation in the FHIP, and denial of further participation in 
programs of HUD or any Federal agency.

VI. Application Submission Requirements

    In addition to the statements, forms, certifications and assurances 
required by Section II(G) of the General Section of the SuperNOFA and 
by the Program Requirements in Section IV. of this program section of 
the SuperNOFA, your application must, at a minimum, contain the 
following items:
    (A) Transmittal Letter. Your letter must identify: (1) the dollar 
amount requested for each component, (2) the specific FHIP initiative 
and component under which your application is submitted, and (3) in the 
case of the EOI, whether it is the Regional/Local/Community Based 
Program or the National Program.
    (B) Narrative Statement. Your narrative statement must address, and 
should be numbered to track, the Factors for Award in Section V.(D), 
above, of this FHIP section of the SuperNOFA.
    (C) Financial Management and Audit Information. You must submit a 
certification from an Independent Public Accountant or the cognizant 
government auditor, stating that the financial management system 
employed by you meets proscribed standards for fund control and 
accountability required by: OMB Circular A-133, Audits of States, Local 
Governments and Non-Profit Organizations; OMB Circular A-110 (as 
codified at 24 CFR part 84), Uniform Administrative Requirements for 
Grants and Agreements With Institutions of Higher Education, Hospitals, 
and other Non-Profit Organizations; and/or OMB Circular A-102 (as 
codified at 24 CFR Part 85) Uniform Administrative Requirements for 
Grants and Cooperative Agreements to State, Local and Federally 
Recognized Indian Tribal Governments. This information should contain 
the name and telephone number of the Independent Auditor, cognizant 
Federal auditor, or other audit agency, as applicable.
    (D) Non-Profit Status. If you are applying under the PEI and FHOI 
Initiatives, you must submit documentation with your application that, 
as of the closing date of this FHIP section of the SuperNOFA, you are a 
501(c)(3) tax-exempt organization as determined by the Internal Revenue 
Service. Failure to submit this documentation with your application 
will be treated as a technical deficiency as discussed in Section V. of 
the General Section of this SuperNOFA.
    (E) JEP Component. If you are submitting a JEP application, your 
application must include a memorandum of understanding (MOU) from all 
project participants describing the signatories' duties and 
responsibilities. The MOU must be signed by an official of the 
partnership organization authorized to make commitments on behalf of 
the organization. If you fail to submit this documentation with your 
application, your application will be ineligible.
    (F) Preference for Award Must Be Stated. If your application does 
not state a funding preference as required by Section IV.(A)(3), above, 
of this program section of the SuperNOFA, your application will be 
ineligible.

VII. Corrections to Deficient Applications

    Section V of the General Section of the SuperNOFA provides the 
procedures for corrections to deficient applications.

VIII. Environmental Requirements

    In accordance with 24 CFR 50.19(b)(9) and (12) of HUD regulations, 
activities assisted under this program are categorically excluded from 
the requirements of the National Environmental Policy Act and are not 
subject to environmental review under related laws and authorities.

IX. Authority

    Section 561 of the Housing and Community Development Act of 1987 
(42 U.S.C. 3616 note, established the Fair Housing Initiatives Program 
(FHIP)) and the implementing regulations are found at 24 CFR part 125.

      FHIP Appendix--New Organizations Established Under FHIP ENOC
------------------------------------------------------------------------
     Name and address of new organization             Area served
------------------------------------------------------------------------
The Fair Housing Continuum, 846 N. Cocoa       Brevard County, Florida.
 Blvd., Cocoa, FL 32922.
North Carolina Fair Housing Center, 101 St.    State of North Carolina.
 Mary Street, Raleigh, NC 27609.
Southern Center of Civil Rights Enforcement,   Areas in Georgia,
 1083 Austin Ave, NE, Atlanta, GA 31107.        Arkansas, Mississippi
                                                and South Carolina.
Central Alabama Fair Housing Center, 207       Central and Southern
 Montgomery St. Suite 725, Montgomery, AL       Alabama.
 36104.
Arkansas Fair Housing Organization, 2101       Central Arkansas.
 South Main Street, Little Rock, AR 72206.
Arkansas Fair Housing Council, 103 West        Arkansas Congressional
 Capitol, #1115, Little Rock, AR 72201.         Districts #1, 2 and 4.
Fair Housing Action Center, 938 Lafayette      Greater Metropolitan New
 St., #413, New Orleans, LA 70113.              Orleans.

[[Page 9690]]

 
Legal Aid Society of Albuquerque, 121          State of New Mexico.
 Tijereas, NE, #3100, Albuquerque, NM 87102.
Louisiana Fair Housing Organization, 1624      Southern Louisiana.
 Elysian Fields, Ave., New Orleans, LA 70117.
New Mexico Fair Housing Organization, 918      Central New Mexico
 Silver SW, Albuquerque, NM 87102.              (primarily Albuquerque
                                                and Santa Fe).
Fair Housing Center of Nebraska, 2522 N. 24th  Omaha, Nebraska and South
 St., #103, Omaha, NE 68110.                    Sioux City.
Kansas City Fair Housing Center, 3033          Metropolitan Kansas City,
 Prospect Ave., Kansas City, MO 64128.          Missouri.
Metro St. Louis Equal Housing Opportunity      Metropolitan St. Louis,
 Center, 1027 VanDerventer Ave., 4th Floor,     Missouri.
 St. Louis, MO 63110.
North Dakota Fair Housing Council, 533         State of North Dakota.
 Airport Rd, Suite B, Bismark, ND 58504.
Greater Nevada Fair Housing Council, 410 East  Northern Nevada.
 John Street, Carson City, NV 89706.
Nevada Fair Housing Center, 2725 East Desert   Southern Nevada.
 Inn Road, Suite 180, Las Vegas, NV 89121.
Fair Housing Council of Fresno County, 2014    Fresno, California.
 Tulane St., #413, Fresno, CA 93721.
Idaho Fair Housing Council, 310 N. 5th         State of Idaho.
 Street, Boise, ID 83702.
Northwest Fair Housing Alliance, 1613 West     Eastern Washington.
 Gardner Ave., Spokane, WA 99201.
Fair Housing Council of South Puget Sound,     Puget Sound.
 8815 S. Tacoma Way, Suite 211, Tacoma, WA
 98499.
Asian Americans for Equality FH Cntr.........  Queens, NY.
San Antonio Fair Housing Center..............  San Antonio, TX.
Fair Housing Center of Houston...............  Houston, TX.
------------------------------------------------------------------------


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Notices  

[[Page 9691]]


      
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Notices  

[[Page 9693]]



Funding Availability for the Housing Counseling Program

Program Overview

    Purpose of the Program. The purpose of this program is to provide 
comprehensive housing counseling through national, regional, multi-
State housing counseling agencies, State housing finance agencies, and 
local HUD-approved housing counseling agencies. Counseling assists 
homebuyers, homeowners, and tenants to meet their housing needs and 
resolve their housing problems.
    Available Funds. Approximately $16.6 million.
    Eligible Applicants. (1) HUD-approved national, regional, or multi-
State intermediaries; (2) HUD-approved local housing counseling 
agencies; and (3) State housing finance agencies.
    Application Deadline. May 25, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. You must submit a completed application on or 
before 12:00 midnight, Eastern time on May 25, 1999 to the addresses 
shown below.
    See the General Section of this SuperNOFA for specific procedures 
governing the form of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Addresses for Submitting Applications. If you are a Local Housing 
Counseling Agencies or State Housing Finance Agencies: Send an original 
and two copies of your completed application to the respective HUD 
Homeownership Center (HOC) having jurisdiction over the locality, area 
or State in which your proposed program is located. Your application 
should be sent to the attention of the Program Support Division 
Director, and the envelope should be clearly marked ``FY 1999 Housing 
Counseling Application''. A list of the HUD Homeownership Centers, 
including their jurisdictions, and the Program Support Division 
Directors appears below and in the Application Kit.

------------------------------------------------------------------------
                                                      Office
------------------------------------------------------------------------
Philadelphia Homeownership Center:
    Mr. Michael Perretta, The Wanamaker  Albany, Baltimore, Boston,
     Building, 100 Penn Square East,      Buffalo, Camden, Cleveland,
     Philadelphia, PA 19107-3380,         Charleston, Cincinnati
     Contact: Robert Wright Flint,        Columbus, Detroit, Grand
     (215) 656-0527 x3406.                Rapids, Hartford, Manchester,
                                          New York, Newark Philadelphia,
                                          Pittsburgh, Providence,
                                          Richmond, District of
                                          Columbia.
Atlanta Homeownership Center:
    Ms. Gayle Knowlson, Richard B.       Atlanta, Birmingham, Caribbean,
     Russell Federal Building, 75         Chicago and Springfield,
     Spring Street, S.W., Room 572,       Columbia, Coral Gables,
     Atlanta, GA 30303-3308, Contact:     Greensboro, Indianapolis,
     Fellece Sawyer-Coleman (404) 331-    Jackson, Jacksonville,
     5001 x2675.                          Knoxville, Louisville,
                                          Memphis, Nashville, Orlando,
                                          Tampa.
Denver Homeownership Center:
    Ms. Jane Hall First Interstate       Albuquerque, Denver, (Casper,
     Tower North, 633 17th Street,        Fargo, Sioux Falls), Dallas,
     Denver, CO 80202-3607, Contact:      Des Moines, Denver, Ft. Worth,
     Lorraine Griscavage-Frisbee (303)    Helena, Houston, Kansas City,
     672-5216 x1515.                      Little Rock, Lubbock,
                                          Milwaukee, Minneapolis, New
                                          Orleans, Oklahoma City, Omaha,
                                          Salt Lake City, San Antonio,
                                          Shreveport, St. Louis, Tulsa.
Santa Ana Homeownership Center:
    Mr. Jerrold Mayer, 1600 N.           Anchorage, Boise, Fresno,
     Broadway, Suite 100, Santa Ana, CA   Honolulu, Las Vegas and Reno,
     92706-3927, Contact: Rhonda J.       Los Angeles, Phoenix,
     Rivera, Chief, x3210, 1-888-827-     Portland, Sacramento, San
     5605, (714) 796-1200.                Diego, San Francisco, Santa
                                          Ana, Seattle, Spokane, Tucson.
------------------------------------------------------------------------

    If you are a National, Regional or Multi-State Housing Counseling 
Intermediary, send an original and two copies of the completed 
application to Director, Program Support Division, Office of Single 
Family Housing, HUD Headquarters, 451 7th Street, S.W., Washington, DC 
20410, Room 9166. The envelope should be clearly marked, ``FY 1999 
Intermediary Application''. If you submit an application to HUD using 
the above procedures, you will avoid having your application 
disqualified.
    Application Kits. For an application kit and any supplemental 
information, please call the SuperNOFA Information Center at 1-800-HUD-
8929. Persons with hearing or speech impairments may call the Federal 
Information Relay Service at 1-800-877-8339. The application kit also 
will be available on the Internet through the HUD web site at http://
www.HUD.gov. When requesting an application kit, please refer to the 
Housing Counseling Program. The SuperNOFA Information Center can 
provide you with assistance in determining which HUD locations should 
receive a copy of your application.
    For Further Information and Technical Assistance. If you are a 
local housing counseling agency or State housing finance agency, you 
may call the HUD Homeownership Center serving your area. If you are a 
national, regional, or multi-State intermediary, you may call HUD 
Headquarters. Please see above and your application kit for a list of 
offices and telephone numbers you can call to receive assistance. 
Before the application deadline, HUD staff will be available to provide 
general guidance.

II. Amount Allocated

    Under this SuperNOFA, $16.6 million of the $17.5 million 
appropriated is made available for eligible applicants. An allocation 
of $900,000 of the $17.5 million total in program funding has been set 
aside for Housing Counseling support, which may include continuation of 
the Housing Counseling Clearinghouse, and/or HUD counseling 
initiatives.
    The estimated amount of funds available for sub-allocation is as 
follows:

--Local Housing Counseling Agencies (LHCA). Approximately $ 5.6 million 
has been made available for grants to local HUD-approved housing 
counseling agencies. Funding is allocated to each of the HUD 
Homeownership Centers by a formula that reflects the increased emphasis 
on the expansion of homeownership opportunities for first-time 
homebuyers and HUD's intent to ensure appropriate geographical 
distribution of program funds. For FY 1999, no individual local housing

[[Page 9694]]

counseling agency may be awarded more than $100,000.
--National, Regional, and Multi-State Intermediaries. Approximately 
$7.5 million is being set aside to fund HUD-approved national, regional 
and multi-State intermediaries that apply for funding under this 
SuperNOFA. There is no longer any cap on the amount that national, 
regional, or multi-State intermediaries may receive.
--State Housing Finance Agencies (SHFA). Approximately $3.5 million is 
being set aside to fund State housing finance agencies. HUD will fund 
State housing finance agencies according to the budget submitted with 
the application, in an amount not to exceed $500,000.

    The amount of funding available to each of the four HUD 
Homeownership Center jurisdictions for allocation to local housing 
counseling agencies and State housing finance agencies is:

------------------------------------------------------------------------
                                              Funding         Funding
          Homeownership center              allocation*    allocation**
                                              (LHCA)          (SHFA)
------------------------------------------------------------------------
Atlanta, GA.............................      $1,200,000        $890,000
Denver, CO..............................       1,400,000         890,000
Philadelphia, PA........................       1,700,000         935,000
Santa Ana, CA...........................       1,300,000        785,000
------------------------------------------------------------------------
* Each HOC has been allocated a minimum of $1 million, with the balance
  being distributed to each HOC based on the number of clients counseled
  within its jurisdiction during FY 1998.
** Each HOC has been allocated a minimum of $750,000, with the balance
  being distributed to each HOC based on the number of SHFAs funded
  within its jurisdiction under the FY 1998 SuperNOFA.

    Remaining and Deobligated Funds/Reallocations. If funds remain 
after HUD has funded all approvable grant applications in its 
Homeownership Center jurisdictions, or Headquarters, or if any funds 
become available due to deobligation, that amount will be retained by 
HUD Headquarters for future housing counseling use.
    Funding Levels. The Factors for Award will be used to evaluate your 
application for funding. If you are a successful applicant, HUD 
requires that you participate in negotiations to determine the specific 
grant amount and the terms of the grant agreement. HUD will follow the 
negotiation procedures described in Section III(D) of the General 
Section of the SuperNOFA. Housing Counseling grants are fundable for a 
period of twelve (12) calendar months. This period may begin from the 
date that your award is executed by HUD, or not more than 90 days prior 
to your award execution date.

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    HUD-approved housing counseling agencies provide counseling and 
advice to tenants and homeowners on property maintenance, financial 
management, and other matters appropriate to assist tenants and 
homeowners in improving their housing conditions and meeting 
responsibilities of tenancy and homeownership. In addition, HUD-
approved housing counseling agencies conduct community outreach 
activities and provide counseling to individuals, including persons 
with visual or hearing impairments or other disabilities, with the 
objective of increasing awareness of homeownership opportunities and 
improving access of low and moderate income households to sources of 
mortgage credit. HUD believes that this activity is key to the 
revitalization and stabilization of low income and minority 
neighborhoods. Agencies assist first-time homebuyers by offering 
Homebuyer Education and Learning Program (HELP) training sessions. 
Agencies also meet the counseling needs of eligible persons 62 or older 
who desire to use the Home Equity Conversion Mortgage (HECM) to convert 
their equity into a lump sum payment or an income stream that can be 
used for home improvements, medical costs, and/or living expenses.

(B) Eligible Applicants

    Under the housing counseling program, HUD contracts with qualified 
public or private nonprofit organizations to provide housing counseling 
services. There are three categories of applicants eligible to submit 
applications:
--HUD-approved national, regional, or multi-State intermediaries.

    If you are a HUD-approved national, regional, or multi-State 
intermediary, your primary activity is to manage the use of HUD housing 
counseling funds. This includes the distribution of housing counseling 
funding to affiliated local housing counseling agencies. Your local 
affiliates are eligible to undertake any or all of the housing 
counseling activities, described for HUD-approved local housing 
counseling agencies. Local affiliates receiving funding through your 
organization do not need to be HUD-approved in order to receive funds 
from you. However, your intermediary organization must be HUD-approved 
as of the date of this SuperNOFA. You must identify all of your 
proposed affiliates in your application. An affiliate of your 
organization may also apply to a State housing finance agency for a 
sub-grant, whether or not it received a sub-grant from you. However, if 
your affiliate is not HUD-approved, you must certify the quality of 
services provided will meet, or exceed, standards for local HUD-
approved housing counseling agencies.
    As a selected intermediary, you must distribute the majority of 
your award funds to your housing counseling affiliates. HUD will give 
you wide discretion to implement your housing counseling program with 
your affiliates. You must execute sub-grant agreements with your 
affiliates that clearly delineate the mutual responsibilities for 
program management and appropriate time frames for reporting results to 
HUD.
    You can decide how to allocate funding among your affiliates with 
the understanding that a written record must be kept of how you 
determined your funding levels. This record must be made available to 
your affiliates and to HUD. You should budget an amount which reflects 
your best estimate of the cost to oversee and fund the housing 
counseling efforts of your affiliates. You must seek other private and 
public sources of funding to supplement HUD funding. HUD does not 
intend for its counseling grant funds to cover all costs incurred by an 
agency participating in this program.
    Your organization, as well as all your affiliates, must meet the 
Civil Rights Threshold requirements that are listed in Paragraph II.(B) 
of the General Section of the SuperNOFA.

    Note: If you are a national, regional, or multi-State intermediary, 
you must assure that your proposed affiliates are unique to your team, 
and will not undertake a separate application for

[[Page 9695]]

funds. Should any duplication occur, both your intermediary 
organization and the local housing counseling agency requesting 
separate funds will automatically be ineligible for further 
consideration to receive FY 1999 housing counseling funds.

--HUD-approved local housing counseling agencies

    These agencies are private and public non-profit organizations, 
approved by HUD to provide housing counseling services directly to 
clients. If you are a HUD-approved private or public non-profit 
organization, HUD will fund your local housing counseling agency 
activities according to the budget submitted with your application. The 
amounts you request should reflect anticipated operating needs for your 
housing counseling activities, based upon your counseling experience 
during the previous fiscal year and your current agency capacity.
    You may also apply for a sub-grant to a State housing finance 
agency, whether or not you have a housing counseling grant from HUD. 
However, you must disclose all funding sources to HUD. If you are a 
local housing counseling agency that is not currently HUD-approved, you 
may receive FY 1999 funding only as an affiliate of a HUD-approved 
national, regional, or multi-State intermediary; or State housing 
finance agency.

--State housing finance agencies
    Your primary activity as a State housing finance agency is to 
provide housing counseling services as a local housing counseling 
agency and/or manage the use of HUD housing counseling funds, including 
the distribution of counseling funding to your affiliated local housing 
counseling organizations. You and your local affiliates are eligible to 
undertake any or all of the housing counseling activities described for 
HUD-approved local housing counseling agencies. As either a housing 
counseling agency or intermediary, you and your local affiliates do not 
need to be HUD-approved in order to receive these funds. As a State 
housing finance agency, you can operate as a housing counseling agency 
and/or as an intermediary for affiliates that perform housing 
counseling functions in your State or territory. As an intermediary, 
you must identify all your proposed affiliates in your application. The 
amount you request should reflect anticipated operating needs for 
housing counseling activities, based upon the counseling experience 
during FY 1998 and your current capacity. In your role as an 
intermediary, the amount you request should reflect your best estimate 
of costs to oversee and fund your housing counseling affiliates. HUD 
will give you wide discretion to implement your housing counseling 
program with your affiliates. As a State intermediary, you must execute 
sub-grant agreements with your affiliates that clearly delineate the 
mutual responsibilities for program management, including appropriate 
time frames for reporting results to HUD. Your affiliate may be a local 
housing counseling agency. Local housing counseling agencies may also 
be affiliates of national, regional, or multi-State intermediaries. You 
must decide how to allocate funding among your affiliates with the 
understanding that a written record will be kept of how your 
determination was made. This record must be made available to the 
affiliates and to HUD. You must certify that, if your affiliate is not 
HUD-approved, the quality of services provided will meet, or exceed, 
standards for local HUD-approved housing counseling agencies.
    You must seek other private and public sources of funding to 
supplement HUD funding. HUD does not expect its counseling grant funds 
to cover all costs incurred by your organization's participation in 
this program. You may use the HUD grant to undertake any of the 
eligible counseling activities.

(C) Eligible Activities.

    If you are a housing counseling agency funded under this SuperNOFA, 
you may use HUD funds to deliver comprehensive housing counseling, or 
you may specialize in delivering of particular housing counseling 
services. Either way, your activities must reflect the housing needs 
you submitted in your funding application for your target area and 
identified in your plan. You may conduct a wide range of housing 
counseling services that are eligible under this program, including:
    (1) Homebuyer Education Programs where HUD's Homebuyer Education 
and Learning Program (HELP) materials are used in sessions consisting 
of approximately sixteen (16) hours of training. Completion of the 
training allows graduates to receive first-time homebuyer incentives, 
such as a reduction in their FHA insurance premium. HUD staff at each 
HUD Homeownership Center will be available to provide you with the HELP 
materials.
    (2) Pre-purchase Homeownership Counseling covering purchase 
procedures, mortgage financing, down payment/closing cost fund 
accumulation, accessibility requirements, and if appropriate, credit 
improvement, and debt consolidation.
    (3) Post-purchase Counseling including property maintenance, and 
personal money management.
    (4) Mortgage delinquency and default resolution counseling 
including restructuring debt, arrangement of reinstatement plans, loan 
forbearance, and loss mitigation.
    (5) Home Equity Conversion Mortgage (HECM) counseling to assist 
clients who are 62 years old or older with the complexities of 
converting the equity in their homes to income to pay living expenses 
or medical expenses.
    (6) Loss Mitigation Counseling for clients who may be facing 
default and foreclosure, and need mortgage default resolution and 
foreclosure avoidance counseling.
    (7) Marketing and Outreach Initiatives including providing general 
information about housing opportunities within your target area and 
providing housing counseling services and information to persons with 
disabilities. Under this program, you are required to extend marketing 
and outreach services to all segments of the population.
    (8) Renter Assistance Counseling including information about rent 
subsidy programs, rights and responsibilities of tenants, and lease and 
rental agreements.
    (9) Fair Housing Assistance including:
    (a) Advocating with lenders, appraisers and developers on behalf of 
clients to recognize the value of non-traditional lending standards, 
the vitality of housing values in all areas, and the added value of 
accessible housing design; and
    (b) Advising clients on how to recognize discriminatory acts, and 
how to file a Fair Housing complaint. (This will require being familiar 
with the provisions of the Fair Housing Act).
    You may elect to offer your services to a wide range of clients, or 
serve a more limited audience, provided your limited services do not 
constitute discrimination on the basis of race, color, religion, sex, 
national origin, disability or familial status. Your potential clients 
include: first-time homebuyers, homebuyers and homeowners eligible for, 
and applying for, HUD, VA, FmHA (or its successor agency), State, 
local, or conventionally financed housing or housing assistance; or 
persons who occupy such housing and seek the assistance of a housing 
counseling agency to resolve a housing need. You may elect to offer 
this assistance in conjunction with any HUD housing program; however, 
to do this, you must be familiar with FHA's single

[[Page 9696]]

family and multifamily housing programs.

IV. Program Requirements

(A) General Requirements.

    The requirements listed in Section II of the General Section of the 
SuperNOFA apply to this program.

(B) Requirements Applicable to Religious Organizations.

    Where your organization is, or you propose to contract with, a 
primarily religious organization, or a wholly secular organization 
established by a primarily religious organization, to provide, manage, 
or operate a housing counseling program, you must undertake your 
responsibilities in accordance with the following principles:
    (1) You will not discriminate against any segment of the 
population;
    (2) You will not provide religious instruction or religious 
counseling, conduct religious services or worship, engage in religious 
proselytizing, and exert religious influence in the provision of 
assistance under your Housing Counseling Program.
    (3) You will make counseling offices and services accessible to 
persons with a wide range of disabilities and help such persons locate 
suitable housing in locations throughout your community, target area or 
metropolitan area.

(C) Performance Measurement.

    You are required to complete and submit a form HUD-9902, Fiscal 
Year Activity Report. The information compiled from this report 
provides HUD with its primary means of measuring your program 
performance and program effectiveness.

V. Application Selection Process

(A) General

    Your application will be evaluated competitively, and ranked 
against all other applicants that applied in the same funding category. 
However, after selection, the actual amount funded will be based on 
successful completion of negotiations. National, regional, and multi-
State applications will be rated and ranked in HUD Headquarters, and 
selected for funding in rank order. Local agency and State Housing 
Finance Agency applications will be rated and ranked by the HUD 
Homeownership Centers and selected for funding in rank order.

(B) Factors for Award Used To Rate and Rank Applications.

    The factors for rating and ranking applicants, and maximum points 
for each factor, are provided below. The maximum number of points for 
each applicant is 102. This includes two EZ/EC bonus points, as 
described in the General Section of the SuperNOFA.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points)
    This factor addresses the extent to which you have the 
organizational resources necessary to successfully implement your 
proposed activities in a timely manner. Your rating or the rating of 
your organization and staff for technical merit will include any 
subcontractors, consultants, subrecipients, and members of consortia 
that are identified as participants in your proposal. In rating this 
factor, HUD will consider the extent to which your proposal 
demonstrates:
    (1) (10 points) The knowledge and experience of your proposed 
project director and staff, including the day-to-day program manager, 
consultants and contractors in planning and managing programs for which 
you are requesting funding. Your experience will be judged in terms of 
recent, relevant and successful experience of your staff to undertake 
eligible program activities. You are expected to have sufficient 
personnel, or be able to quickly access qualified experts or 
professionals, to deliver the proposed activities in a timely and 
effective fashion. HUD will assess the readiness and ability of your 
organization to immediately begin your proposed work program. To 
demonstrate that you have sufficient personnel, you must submit the 
proposed number of staff for each task to be conducted, by the 
employees and experts allocated to each activity you plan to undertake 
in your program. You must identify their titles and relevant 
professional background and experience related to the tasks they are to 
perform. In addition, you must allocate the staff hours for each task 
of these employees and experts.
    (2) (10 points) Your past experience in terms of your ability to 
attain measurable progress in the implementation of your most recent 
activities where your performance has been assessed. HUD will consider 
your performance as measured by your expenditures and demonstrated 
progress in achieving the purpose of the activities. HUD will also 
consider any documented evidence, such as form HUD-9902, of your 
failure under past awards to comply with grant award provisions.
Rating Factor 2: Need/Extent of the Problem (20 Points)
    This factor addresses the extent to which there is a need for 
funding your proposed program activities to address a documented 
problem in your target area. To the extent that the community served by 
your housing counseling organization has documented the need in the 
community's Consolidated Plan or Analysis of Impediments to Fair 
Housing Choice (AI); or requirements of court orders or consent 
decrees, settlements and voluntary compliance agreements, references to 
these documents should be included in the response. If your proposed 
activities are not covered under the scope of the Consolidated Plan or 
AI, you should indicate such and use other sound data sources to 
identify the level of need for your proposed program of activities.
    In responding to this factor, you will be evaluated on the extent 
to which you document a critical level of need for your proposed 
activities in the area where activities will be carried out. The 
documentation of need should demonstrate the extent of the problem 
addressed by the proposed activities. Examples of data that might be 
used to demonstrate need, include economic and demographic data 
relevant to the target area and your proposed activities. There must be 
a clear relationship between the proposed activities, community needs 
and the purposes of this program for an applicant to receive points for 
this factor.
Rating Factor 3: Soundness of Approach (40 Points)
    This factor addresses the quality and effectiveness of your 
proposed work plan. In rating this factor, HUD will consider the 
following:
    (1) The extent to which the design and scope of your activities 
provide for geographic coverage for target areas as well as persons 
traditionally underserved, including identification of immediate 
benefits to be achieved and indicators by which these benefits will be 
measured;
    (2) The extent to which you have a clear agenda and identify 
specific activities to be performed, such as:
    (a) Screening interviews with clients;
    (b) Setting up a client file with intake information and counseling 
plan; and
    (c) Having the client sign an agreement accepting the counseling 
plan and making a commitment to attend the required counseling 
sessions;
    (3) The extent to which your proposed tasks use documented, 
technically competent methodologies for conducting the work to be 
performed.

[[Page 9697]]

HUD will assess the extent to which your proposed work plan identifies 
documented, proven methodologies for the types of services to be 
performed.
    (4) The extent to which you demonstrate the relationship between 
the proposed activities, community needs and the purposes of this 
program.
    (5) The extent to which your proposed activities undertake 
affirmatively furthering fair housing (AFFH). Affirmatively furthering 
fair housing may be undertaken in a variety of ways, as appropriate to 
your target area. The following are some suggestions for all housing 
counseling agencies:
    (a) Implementing affirmative marketing strategies to attract all 
segments of the population regardless of race, color, religion, 
national origin, sex, familial status, and disability, especially those 
least likely to request housing counseling services to purchase or 
retain their homes.
    (b) Being pro-active in reducing concentrations of poverty and/or 
minority populations in the target area. This could include working 
with, or adopting the counseling practices of, agencies which conduct 
housing opportunity counseling to encourage low-income and minority 
persons to move to low-concentration areas, and helping to locate 
suitable housing in such areas.
    (c) Working with local lenders to develop alternative lending 
criteria. For instance, you may make referrals to lenders of clients 
with good credit and payment histories, but who do not fit the standard 
profiles for lending practices, or advocate with financial institutions 
on behalf of clients with financial patterns which reflect cultural 
differences (such as family savings pools, which are common among some 
Asian populations). Your activities should also focus on finding 
appropriate housing, free from environmental hazards, for all segments 
of the population in neighborhoods with good transportation, schools, 
employment opportunities, and other services.
    (b) The following are some suggested activities for national, 
regional, or multi-State intermediaries and State Housing Finance 
Agencies:
    (i) Training affiliates in Fair Housing issues.
    (ii) Making national or regional agreements with lenders, insurers, 
and organizations which train appraisers and loan appraisers on fair 
housing requirements, accessibility, and financing methods which 
support your organization's fair housing and housing opportunity 
efforts.
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure community resources 
which can be combined with HUD's program resources to achieve your 
program purposes. In evaluating this factor HUD will consider:
    (1) The extent to which you have partnered with other entities to 
secure additional resources to increase the effectiveness of your 
proposed program activities. Resources may include funding or in-kind 
contributions, such as services or equipment, allocated to the 
purpose(s) of your program. Resources may be provided by governmental 
entities, public or private nonprofit organizations, for-profit private 
organizations, or other entities willing to partner with you. You may 
also partner with other program funding recipients to coordinate the 
use of housing counseling and support services in your target area.
    (2) You must provide evidence of leveraging/partnerships by 
including in your application letters of firm commitments, memoranda of 
understanding, or agreements to participate from entities identified as 
partners in your application. Each letter of commitment, memoranda of 
understanding, or agreement to participate should include the 
partnering organization's name, proposed level of commitment and 
responsibilities as they relate to your proposed program. The 
commitment letter must also be signed by an official of the 
organization legally able to make commitments on behalf of the 
partnering organization.
    If you are a local counseling agency, you are expected to seek 
other private and public sources of funding to supplement HUD funding. 
HUD never intends for its counseling grant funds to cover all costs 
incurred by an agency participating in the program.
    If you are a local housing counseling agency, you may use your HUD 
grant to undertake any of the eligible housing counseling activities 
described in this Housing Counseling Program section of the SuperNOFA. 
All of your proposed activities and the activities of your partners 
must be included in your HUD-approved plan. NOTE: HUD housing 
counseling funding is not intended to fully fund either an 
intermediary's housing counseling program, or the housing counseling 
programs of the its local affiliates. All intermediaries and their 
local affiliates are expected to seek other private and public sources 
of funding for housing counseling to supplement HUD funding.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you have coordinated your 
activities with other known organizations, participated or promoted 
participation in a community's Consolidated Planning process and are 
working towards addressing identified needs in a holistic and 
comprehensive manner through linkages with other activities in your 
community. In evaluating this factor, HUD will consider the extent to 
which you can demonstrate you have:
    (1) Coordinated your proposed activities with those of other groups 
or organizations prior to submission in order to best complement, 
support and coordinate all known activities; and, if funded, the 
specific steps you will take to share information on solutions and 
outcomes with others. Any written agreements or memoranda of 
understanding in place should be described.
    (2) Taken or will take specific steps to become active in the 
Consolidated Planning process (including the Analysis of Impediments to 
Fair Housing Choice) established in your target area to identify and 
address needs/problems related to the activities you propose in your 
application. If you reported in your FY 1998 application that you 
``will take specific steps'', describe what steps you have taken.
    (3) Taken or will take specific steps to develop linkages to 
coordinate comprehensive solutions through meetings, information 
networks, planning processes or other mechanisms with:
    (a) Other HUD-funded projects/activities outside the scope of those 
covered by the target area's Consolidated Plan; and
    (b) Other Federal, State or locally funded activities, including 
those proposed or on-going in your target area.
    If you reported in your FY 1998 application that you ``will take 
specific steps'', describe what steps you have taken.

VI. Application Submission Requirements

(A) General.

    The contents of your application will differ if you are a local 
housing counseling agency; or a national, regional, or multi-State 
intermediary; or a State housing finance agency. However, all 
applicants are expected to submit the forms, certifications and 
assurances set forth in the General Section of the SuperNOFA. Copies of 
all form/documents required to be

[[Page 9698]]

completed can be found in the application kit. In addition to these 
certifications and assurances the following are required to be part of 
your housing counseling application:
    (1) Narrative statement addressing the five Rating Factors in 
Section V.(B) of this program section of the SuperNOFA. Your narrative 
response should be numbered in accordance with the rating factors and 
subfactors identified in Section V.(B) of this program section of the 
SuperNOFA.
    (2) Form HUD-9902, Housing Counseling Agency Fiscal Year Activity 
Report, for fiscal year October 1, 1997 through September 30, 1998. If 
you did not participate in HUD's Housing Counseling Program during FY 
1998, this report should be completed to reflect your counseling 
workload during that period. This form must be fully completed and 
submitted by every applicant for FY 1999 HUD funding;
    (3) Budget Work Sheet. A proposed budget for use of the requested 
HUD funds;
    (4) Evidence of Housing Counseling Funding Sources (required by all 
applicants);
    (5) You must provide a descriptive narrative that sets forth your 
prior fiscal year's performance as related to its goals, objectives and 
mission. Your narrative must describe the most recent operational and 
program activities of your organization;
    (6) Current Housing Counseling Plan. Your Housing Counseling Plan 
must describe your housing counseling needs, goals, and objectives 
related to the scope of services you propose to provide, including a 
description of all counseling activities to be performed.
    (7) Direct-labor and Hourly-labor rate and Counseling Time Per 
Client for proposed tasks;
    (8) The Congressional District in which your proposed activities 
are to occur;
    (9) If you are a State housing finance agency, you must submit your 
statutory authority to operate as a State housing finance agency.

(B) National, Regional, and Multi-State Intermediaries; and State 
Housing Finance Agencies.

    If you are a national, regional, or multi-State intermediary or a 
State housing finance agency, you must submit an application which 
covers both your network organization and your affiliated agencies. 
Your application must include:
    (1) A description of your affiliated agencies. For each affiliated 
agency, list the following information:
    (a) Organization name;
    (b) Address;
    (c) Director and contact person (if different);
    (d) Phone/FAX numbers (including TTY, if available);
    (e) Federal tax identification number;
    (f) ZIP code service areas;
    (g) Number of staff providing counseling;
    (h) Type of services offered (defined by homebuyer education 
programs, pre-purchase counseling, post-purchase counseling, mortgage 
default and delinquency counseling, HECM counseling, outreach 
initiatives, renter assistance, and other);
    (i) Number of years of housing counseling experience.
    (2) Relationship with Affiliates. You must briefly describe your 
relationship with your affiliates (i.e. membership organization, field 
or branch office, subsidiary organization, etc.).
    (3) Oversight System. You must briefly describe the process that 
will be used to determine affiliate funding levels, distribute funds, 
and monitor affiliate performance.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    In accordance with 24 CFR 50.19(b)(9) and (12) of the HUD 
regulations, activities assisted under this program are categorically 
excluded from the requirements of the National Environmental Policy Act 
and are not subject to environmental review under the related laws and 
authorities.

IX. Authority

    HUD's Housing Counseling Program is authorized by section 106 of 
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x), and is 
generally governed by HUD Handbook 7610.1, REV-4, dated August 9, 1995.

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[[Page 9701]]



Funding Availability for the Lead-Based Paint Hazard Control Grant 
Program

Program Overview

    Purpose of the Program. The purpose of the Lead-Based Paint Hazard 
Control Grant Program is to assist States, Indian Tribes and local 
governments in undertaking comprehensive programs to identify and 
control lead-based paint hazards in eligible privately-owned housing 
for rental or owner-occupants in partnership with community-based 
organizations.
    Available Funds. Approximately $56 million.
    Eligible Applicants. States, Indian Tribes or local governments. If 
you are a State or Tribal applicant, you must have a Lead-Based Paint 
Contractor Certification and Accreditation Program authorized by EPA.
    Application Deadline. May 26, 1999.
    Match. A minimum of 10% match in local funds.

Additional Information

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Submit your original and four copies of your 
completed application to HUD on or before May 26, 1999.
    See the General Section of this SuperNOFA for additional 
information regarding submitting your application.
    Address for Submitting Applications. Submit your completed 
application (original and four copies): Department of Housing and Urban 
Development, Office of Lead Hazard Control, Room P3206, 451 Seventh 
Street, SW, Washington, D.C. 20410. Applications which are hand carried 
or sent via overnight delivery should be delivered to Suite 3206, 490 
East L'Enfant Plaza, Washington, D.C. 20024.
    For Application Kits. You may obtain an application kit from the 
SuperNOFA Information Center at 1-800-HUD-8929, or the TTY number at 1-
800-483-2209. When requesting an application kit, please refer to the 
Lead-Based Paint Hazard Control Grant Program. Please be sure to 
provide your name, address (including zip code), and telephone number 
(including area code).
    For Further Information. Contact Ellis G. Goldman, Director, 
Program Management Division, Office of Lead Hazard Control, at the 
address above; telephone (202) 755-1785, extension 112 (this is not a 
toll-free number). If you are a hearing-or speech-impaired person, you 
may reach the above telephone numbers via TTY by calling the toll-free 
Federal Information Relay Service at 1-800-877-8339.
    For Technical Assistance. Please refer to the General Section of 
this SuperNOFA for information regarding the provision of technical 
assistance. The HUD Lead Hazard Control staff that will provide 
technical assistance for the Lead-Based Paint Hazard Control Program. 
Please see the ``For Further Information'' section above for the 
address and phone number.

II. Amount Allocated

    (A) Approximately fifty six million dollars ($56 million) will be 
available for the Lead-Based Paint Hazard Control Grant Program.
    (B) Approximately 20-25 grants of $1 million-$4 million will be 
awarded. If you are an existing grantee or previously unfunded 
applicant, you are eligible to apply for grants of $1 million-$4 
million. A maximum of 60% of the funds under this program section of 
the SuperNOFA shall be available to current Lead-Based Paint Hazard 
Control grantees. Applications from existing (or previous) grantees 
will be evaluated and scored as a separate group and will not be in 
direct competition with applications from previously unfunded 
applicants.
    (C) In the selection process, once available funds have been 
allocated to meet the requested or negotiated amounts of the top 
eligible applicants, HUD reserves the right to offer any residual 
amount as partial funding to the next eligible applicant, provided HUD 
is satisfied that the residual amount is sufficient to support a 
viable, though reduced effort, by such applicant(s). If you are an 
applicant offered a reduced grant amount you will have a maximum of 
seven (7) calendar days to accept such the reduced award. If you fail 
to respond within the seven day limit, you shall be considered to have 
declined the award.

III. Program Description, Eligible Applicants, and Eligible 
Activities

(A) Program Description.

    The Lead-Based Paint Hazard Control Grant Program assists States, 
Indian Tribes and local governments in undertaking programs for the 
identification and control of lead-based paint hazards in eligible 
privately-owned housing units for rental and owner-occupants. The 
application kit for this program section of the SuperNOFA lists HUD-
associated housing programs which also meet the definition of eligible 
housing.
    (1) Because lead-based paint is a national problem, these funds 
will be awarded to:
    (a) Maximize both the number of children protected from lead 
poisoning and housing units where lead-hazards are controlled;
    (b) Target lead hazard control efforts at housing in which children 
are at greatest risk of lead poisoning;
    (c) Stimulate cost-effective approaches that can be replicated;
    (d) Emphasize lower cost methods of hazard control;
    (e) Build local capacity to safely and effectively address lead 
hazards during lead hazard control, renovation, remodeling, and 
maintenance activities; and
    (f) Affirmatively further fair housing and environmental justice.
    (2) The objectives of this program include:
    (a) Implementation of a national strategy, as defined in Title X, 
to build the community's capacity necessary to eliminate lead-based 
paint hazards in all housing, as widely and quickly as possible by 
establishing a workable framework for lead-based paint hazard 
identification and control;
    (b) Mobilization of public and private resources, involving 
cooperation among all levels of government, the private sector, and 
community-based organizations to develop, cost-effective methods for 
identifying and controlling lead-based paint hazards;
    (c) Development of comprehensive community approaches which result 
in integration of all community resources (governmental, community-
based, and private businesses) to address lead hazards in housing;
    (d) Integration of lead-safe work practices into housing 
maintenance, repair, weatherization, rehabilitation, and other programs 
which will continue beyond your grant period;
    (e) Establishment of a public registry (listing) of lead-safe 
housing; and
    (f) To the greatest extent feasible, promotion of job training, 
employment, and other economic opportunities for low-income and 
minority residents and businesses that are owned by and/or employ low-
income and minority residents as defined in 24 CFR 135.5 (See 59 FR 
33881, June 30, 1994).

(B) Eligible Applicants.

    (1) To be eligible to apply for funding under this program, you 
must be a State, Indian Tribe, or unit of local government. Multiple 
units of a local government (or multiple local governments) may apply 
as part of a consortium; however, you must identify a single lead 
government or agency as ``the applicant.'' You may submit only one 
application. In the event you submit multiple applications, this will 
be

[[Page 9702]]

considered a curable (minor) defect and the application review process 
delayed until you notify HUD in writing which application should be 
reviewed. Your other applications will be returned unevaluated.
    (2) As an applicant, you must meet all of the threshold 
requirements of Section II (B) of the General Section of the SuperNOFA.
    (3) Consolidated Plans.
    (a) If your jurisdiction has a current HUD approved Consolidated 
Plan, you must submit documentation of the HUD approval of the current 
program year Consolidated Plan. You must submit, as an appendix, a copy 
of the lead-based paint element included in the approved Consolidated 
Plan.
    (b) If your jurisdiction does not have a currently approved 
Consolidated Plan, but it is otherwise eligible for this grant program, 
you must include your jurisdiction's abbreviated Consolidated Plan, 
which includes a lead-based paint hazard control strategy developed in 
accordance with 24 CFR 91.235.
    (4) If you are a local government, your application must provide 
written documentation of partnerships or contractual relationships with 
community-based organizations to carry out the proposed work plan. Such 
relationships may include program planning; public awareness, 
education, and outreach; inspection and hazard control; relocation; and 
other related services.
    If you are a State government, you must provide written 
documentation of partnerships or contractual relationships with 
community-based organizations prior to grant award. This requirement 
does not apply to Indian Tribes.
    (5) If you are a State government or an Indian Tribal government, 
you must have an authorized EPA Lead-Based Paint Contractor 
Certification and Accreditation Program to be eligible.
    (6) If you were funded under the FY 1998 Lead-Based Paint Hazard 
Control NOFA issued March 31, 1998 (63 FR 15555), you are not eligible 
for funding under this program section of the SuperNOFA.
    (7) The eligibility factors discussed in (1) through (6) above are 
threshold requirements. If you do not satisfy the appropriate 
eligibility requirements stated in these paragraphs, your HUD will not 
review your application.

(C) Eligible Activities

    HUD will provide considerable latitude to grantees in designing and 
implementing the methods of lead-based paint hazard control to be used 
in their jurisdictions. Experience and data from past and ongoing 
evaluations have identified effective approaches. HUD is interested in 
promoting lead hazard control approaches that result in the reduction 
of this health threat for the maximum number of low-income residents, 
and that demonstrate techniques which are cost-effective, efficient, 
and can be used elsewhere. HUD will allow flexibility within the 
parameters established below.
    (1) Generally, funds will be available only for projects conducted 
by contractors, risk assessors, inspectors, workers and others engaged 
in lead-based paint activities who meet the requirements of an EPA 
authorized State or Tribal Lead-Based Paint Contractor Certification 
and Accreditation Program under the requirements of section 404 of the 
Toxic Substances Control Act (TSCA). However, low level hazard 
interventions (e.g., dust control and minor paint stabilization) do not 
require certified personnel.
    (2) Direct Project Elements that you may undertake directly or 
through subrecipients, include:
    (a) Performing dust testing, hazard screens, inspections, and risk 
assessments of eligible housing constructed before 1978 to determine 
the presence of lead hazards from paint, dust, or soil.
    (b) Conducting pre-hazard control blood lead testing of children 
under the age of six residing in units undergoing inspection, risk 
assessment, or hazard control.
    (c) Conducting lead hazard control, which may include any 
combination of the following: interim control of lead-based paint 
hazards in housing (which may include intensive cleaning techniques to 
address lead dust); abatement of lead-based paint hazards using 
different methods for each unit (based on the condition of the unit and 
the extent of hazards); and abatement of lead-based paint hazards, 
including soil and dust, by means of removal, enclosure, encapsulation, 
or replacement methods. Complete abatement of all lead-based paint or 
lead-contaminated soil is not acceptable as a cost effective strategy 
unless justification is provided and approved by HUD. Abatement of 
lead-contaminated soil should be limited to areas with bare soil in the 
immediate vicinity of the structure, i.e., dripline or foundation of 
the structure being treated, and children's play areas.
    (d) Carrying out temporary relocation of families and individuals 
during the period in which hazard control is conducted and until the 
time the affected unit receives clearance for reoccupancy.
    (e) Performing blood lead testing and air sampling to protect the 
health of the hazard control workers, supervisors, and contractors.
    (f) Undertaking minimal housing rehabilitation activities that are 
specifically required to carry out effective hazard control, and 
without which the hazard control could not be completed and maintained. 
Hazard Control grant funds may be used for lead hazard control work 
done in conjunction with other housing rehabilitation programs. HUD 
strongly encourages integration of this grant program with housing 
rehabilitation.
    (g) Conducting clearance dust-wipe testing and laboratory analysis.
    (h) Engineering and architectural activities that are required for, 
and in direct support of, lead hazard control.
    (i) Providing lead-based paint worker or contractor certification 
training and/or licensing to low-income persons.
    (j) Providing free training on lead-safe, essential maintenance 
practices to homeowners, renters, painters, remodelers, and apartment 
maintenance staff working in low-income private housing.
    (k) Providing cleaning supplies for lead-hazard control to 
community/neighborhood-based organizations, homeowners, and renters in 
low-income private housing.
    (l) Conducting general or targeted community awareness, education 
or outreach programs on lead hazard control and lead poisoning 
prevention. This includes educating owners of rental properties on the 
Fair Housing Act and training on lead-safe maintenance and renovation 
practices. Upon request, this also would include making all materials 
available in alternative formats to persons with disabilities (e.g.; 
Braille, audio, large type).
    (m) Securing liability insurance for lead-hazard control 
activities.
    (n) Supporting data collection, analysis, and evaluation of grant 
program activities. This includes compiling and delivering such 
information and data as may be required by HUD. This activity is 
separate from administrative costs.
    (o) Conducting applied research activities directed at 
demonstration of cost effective methods for lead hazard control.
    (p) Purchasing or leasing equipment having a per unit cost under 
$5,000, except for X-ray fluorescence (XRF) analyzers.
    (q) Purchasing or leasing up to two (2) X-ray fluorescence 
analyzers for use by the Lead-Based Paint Hazard Control Grant Program.

[[Page 9703]]

    (r) Preparing a final report at the conclusion of grant activities.
    (3) Support Elements.
    (a) Administrative costs. There is a 10% maximum for administrative 
costs. The application kit contains specific information on 
administrative costs in Annex 7.
    (b) Program planning and management costs of sub-grantees and other 
sub-recipients.

(D) Ineligible Activities

    You may not use grant funds for any of the following:
    (1) Purchase of real property.
    (2) Purchase or lease of equipment having a per unit cost in excess 
of $5,000, except for X-ray fluorescence analyzers.
    (3) Chelation or other medical treatment costs related to children 
with elevated blood lead levels. Non-Federal funds used to cover these 
costs may be counted as part of the required matching contribution.
    (4) Lead hazard control activities in publicly owned housing, or 
project-based Section 8 housing. A table listing eligibility of various 
HUD programs is included in Annex 5 of the application kit.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, you, the applicant, must comply with the 
following requirements:
    (A) Budgeting. (1) Matching Contribution. You must provide a 
matching contribution of at least 10% of the requested grant sum. This 
may be in the form of a cash or in-kind (non-cash) contribution or a 
combination of both. With the sole exception of Community Development 
Block Grant (CDBG) funds, Federal funds may not be used to satisfy the 
statutorily required ten (10) percent matching requirement. Federal 
funds may be used, however, for contributions above the statutory 
requirement. If you do not show a minimum 10% match in your 
application, you will be rated lower during the evaluation process, 
and, if selected, you will be required to provide the matching 
contribution before being given the grant.
    (2) Applied Research Activities. You may identify a maximum of five 
(5%) percent of the total grant request for applied research 
activities.
    (3) Administrative Costs. There is a 10% maximum for administrative 
costs.
    (B) Period of Performance. The period of performance is 36 months.
    (C) Certified Performers. You may use grant funds only for projects 
conducted by certified contractors, risk assessors, inspectors, workers 
and others engaged in lead-based paint activities.
    (D) Coastal Barrier Resources Act. Pursuant to the Coastal Barrier 
Resources Act (16 U.S.C. 3501), you may not use grant funds for 
properties located in the Coastal Barrier Resources System.
    (E) Flood Disaster Protection Act. Under the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128), you may not use grant 
funds for lead-based paint hazard control of a building or mobile home 
that is located in an area identified by the Federal Emergency 
Management Agency (FEMA) as having special flood hazards unless:
    (1) The community in which the area is situated is participating in 
the National Flood Insurance Program in accordance with the applicable 
regulations (44 CFR parts 59-79), or less than a year has passed since 
FEMA notification regarding these hazards; and
    (2) Where the community is participating in the National Flood 
Insurance Program, flood insurance on the property is obtained in 
accordance with section 102(a) of the Flood Disaster Protection Act (42 
U.S.C. 4012a(a)). You are responsible for assuring that flood insurance 
is obtained and maintained for the appropriate amount and term.
    (F) National Historic Preservation Act. The National Historic 
Preservation Act of 1966 (16 U.S.C. 470) and the regulations at 36 CFR 
part 800 apply to the lead-based paint hazard control activities that 
are undertaken pursuant to this program. HUD and the Advisory Council 
for Historic Preservation have developed an optional Model Agreement 
for use by grantees and State Historic Preservation Officers in 
carrying out activities under this program.
    (G) Waste Disposal. You must handle waste disposal according to the 
requirements of the appropriate local, State and Federal regulatory 
agencies. You must handle disposal of wastes from hazard control 
activities that contain lead-based paint but are not classified as 
hazardous in accordance with the HUD Guidelines for the Evaluation and 
Control of Lead-Based Hazards in Housing (HUD Guidelines).
    (H) Worker Protection Procedures. You must observe the procedures 
for worker protection established in the HUD Guidelines, as well as the 
requirements of the Occupational Health and Safety Administration 
(OSHA) (29 CFR 1926.62--Lead Exposure in Construction), or the State or 
local occupational safety and health regulations, whichever are most 
protective. If other applicable requirements contain more stringent 
requirements than the HUD Guidelines, the more rigorous standards shall 
be followed.
    (I) Prohibited Practices. You must not engage in practices that are 
not allowed because of health and safety risks. Methods that generate 
high levels of lead dust shall be undertaken only with requisite worker 
protection, containment of dust and debris, suitable clean-up, and 
clearance. Prohibited practices include:
    (1) Open flame burning or torching;
    (2) Machine sanding or grinding without a high-efficiency 
particulate air (HEPA) exhaust control;
    (3) Uncontained hydroblasting or high pressure wash;
    (4) Abrasive blasting or sandblasting without HEPA exhaust control;
    (5) Heat guns operating above 1100 degrees Fahrenheit;
    (6) Chemical paint strippers containing methylene chloride; and
    (7) Dry scraping or dry sanding, except scraping in conjunction 
with heat guns or around electrical outlets or when treating no more 
than two (2) square feet in any one interior room or space, or totaling 
no more than 20 square feet on exterior surfaces.
    (J) Proposed Modifications From Current Procedures. Proposed 
methods that differ from currently approved standards or procedures 
will be considered on their merits through a separate HUD review and 
approval process after the grant award is made and a specific 
justification has been presented. When you make such a request, either 
in the application or during the planning phase, HUD may consult with 
experts from both the public and private sector as part of its final 
determinations and will document its findings in an environmental 
assessment. HUD will not approve proposed modifications that, in HUD's 
opinion, involve a lowering of standards with potential to adversely 
affect the health of residents, contractors or workers, or the quality 
of the environment.
    (K) Written Policies and Procedures. You must have clearly 
established, written policies and procedures for all phases of lead 
hazard control, including risk assessment, inspection, development of 
specifications, pre-hazard control blood lead testing, financing, 
relocation and clearance testing. Grantees, subcontractors, sub-
grantees, sub-recipients, and their contractors must adhere to these 
policies and procedures.
    (L) Continued Availability of Lead Safe Housing to Low-Income 
Families.

[[Page 9704]]

Units in which lead hazards have been controlled under this program 
shall be occupied by and/or continue to be available to low-income 
residents as required by Title X. You must maintain a registry 
(listing) of units in which lead hazards have been controlled for 
distribution and marketing to agencies and families as suitable housing 
for children under six.
    (M) Testing. In developing your application budget, include costs 
for inspection, risk assessment, and clearance testing for each 
dwelling that will receive lead hazard control, as follows:
    (1) Testing.
    (a) General. All testing and sampling shall conform to the current 
HUD Guidelines. It is particularly important to provide this full cycle 
of testing for lead hazard control, including interim controls.
    (b) Pre-Hazard Control. A combined inspection and risk assessment 
is recommended. You should ensure that the results of the pre-hazard 
control investigation are sufficient to support hazard control 
decisions. When appropriate, you may elect to perform a lead hazard 
screen in lieu of an inspection or risk assessment.
    (c) In the event you propose to conduct lead hazard control work 
without identification of lead hazards from paint, dust, and soil, you 
must fully justify the technical and other rationale for such a 
proposal. HUD must approve such proposals. Approval is subject to HUD 
environmental review under 24 CFR part 50.
    (d) Clearance Testing. Clearance dust testing must be conducted 
according to the HUD Guidelines. You are required to meet the current 
post-hazard control dust-wipe test clearance thresholds contained in 
the HUD Guidelines (these are also provided in the application kit). 
Wipe tests shall be conducted by a certified inspector who is 
independent of the lead hazard control contractor. Dust-wipe and soil 
samples, and any paint samples to be analyzed by a laboratory, must be 
analyzed by a laboratory recognized by the EPA National Lead Laboratory 
Accreditation Program (NLLAP). Units treated shall not be reoccupied 
until clearance is achieved.
    (2) Blood lead testing. Before lead hazard control work begins, 
each occupant who is under six years old must be tested for lead 
poisoning within six months prior to the housing intervention. Any 
child with an elevated blood lead level must be referred for 
appropriate medical follow-up.
    (N) Cooperation With Related Research and Evaluation. You shall 
cooperate fully with any research or evaluation sponsored by HUD and 
associated with this grant program, including preservation of project 
data and records and compiling requested information in formats 
provided by the researchers, evaluators or HUD. This also may include 
the compiling of certain relevant local demographic, dwelling unit, and 
participant data not contemplated in your original proposal. 
Participant data shall be subject to Privacy Act protection.
    (O) Data collection. You will be required to collect and maintain 
the data necessary to document the various lead hazard control methods 
used in order to determine the effectiveness and relative cost of these 
methods.
    (P) Section 3 Employment Opportunities. Please see the General 
Section of this SuperNOFA. The Section 3 requirements are applicable to 
the Lead-Based Paint Hazard Control Program.
    (Q) Certifications and Assurances. In addition to the 
certifications and assurances listed in the General Section of the 
SuperNOFA, a single certification form is included in the application 
kit for your signature. This includes:
    (1) Assurance of your compliance with the environmental laws and 
authorities described in 24 CFR part 58.
    (2) Certification of your compliance with the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970, and the 
implementing regulations at 49 CFR part 24; and HUD Handbook 1378 
(Tenant Assistance, Relocation and Real Property Acquisition).
    (3) Assurance that your financial management system meets the 
standards for fund control and accountability described in 24 CFR 
85.20.
    (4) Assurance that you will conduct testing associated with pre-
hazard control and clearance conducted by certified performers.
    (5) Assurance that, to the extent possible, you will conduct the 
blood lead testing, blood lead level test results, and medical referral 
and follow up for children under six years of age occupying affected 
units according to the recommendations of the Centers for Disease 
Control and Prevention (CDC) publication Preventing Lead Poisoning in 
Young Children (1991).
    (6) Assurance that you will not use Lead-Based Paint Hazard Control 
Grant Program funds to replace existing resources dedicated to any 
ongoing project.
    (7) Assurance that the housing units in which lead hazards have 
been controlled under this program will be occupied by and/or continue 
to be available to low-income residents as required by Title X. You are 
required to maintain a registry of units in which lead hazards have 
been controlled for distribution and marketing to agencies and families 
as suitable housing for children under six.
    (8) Certification that you will carry out your lead hazard control 
program under an EPA authorized State lead-based paint contractor 
certification and accreditation program that is at least as protective 
as the training and certification program requirements cited in the 
application kit for this program section of the SuperNOFA.
    (R) Davis-Bacon Act. The Davis-Bacon Act does not apply to this 
program. However, if you use grant funds in conjunction with other 
Federal programs in which Davis-Bacon prevailing wage rates apply, then 
Davis-Bacon provisions would apply to the extent required under the 
other Federal programs.

V. Application Selection Process

(A) Rating and Ranking

    HUD intends to fund the highest ranked applications within the 
limits of funding, but reserves the right to advance other eligible 
applicants in funding rank. A decision to advance an applicant will be 
based on programs that: foster local approaches or lead hazard control 
methods that have not been employed before, or provide lead hazard 
control services to populations or communities that have high need (as 
measured by the ``Need'' factor for award) and have never received 
funding under this grant program.

(B) Factors for Award Used To Evaluate and Rate Applications

    The factors for rating and ranking applicants, and maximum points 
for each factor, are stated below. The maximum number of points to be 
awarded is 102. This maximum includes two EZ/EC bonus points as 
described in the General Section of the SuperNOFA. Also, Section 
III(C)(2) of the General Section, which addresses a court-ordered 
consideration, is applicable to this program. The application kit will 
provide additional guidance for responding to these factors. The 
application kit also contains definitions and references that will be 
incorporated into your grant award.

[[Page 9705]]

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (15 points for previously unfunded applicants; 25 points for 
existing grantees)
    This factor addresses your organizational capacity necessary to 
successfully implement the proposed activities in a timely manner. The 
rating of the ``applicant'' or the ``applicant's staff'' for technical 
merit or threshold compliance, unless otherwise specified, includes any 
community-based organizations, sub-contractors, consultants, sub-
recipients, and members of consortia which are firmly committed to your 
project. In rating this factor, HUD will consider:
    (1) Your recent, relevant and successful demonstrated experience 
(including governmental and community-based partners) to undertake 
eligible program activities. You must describe the knowledge and 
experience of the proposed overall project director and day-to-day 
program manager in planning and managing large and complex 
interdisciplinary programs, especially involving housing 
rehabilitation, public health, or environmental programs. You must 
demonstrate that you have sufficient personnel or will be able to 
quickly retain qualified experts or professionals, to immediately begin 
your proposed work program and to perform your proposed activities in a 
timely and effective fashion. In the narrative response for this 
factor, you should include information on your program staff, their 
experience, commitment to the program, salary information, and position 
titles. Resumes (for up to three key personnel), position descriptions, 
and a clearly identified organizational chart for the lead hazard 
control grant program effort must be included in an appendix. Indicate 
the percentage of time that key personnel will devote to your project. 
We recommend using a full-time day-to-day program manager. Describe how 
other principal components of your agency or other organizations will 
participate in or otherwise support the grant program. You may 
demonstrate capacity by prior experience in initiating and implementing 
lead hazard control efforts and/or related environmental, health, or 
housing projects and should be thoroughly described. You should 
indicate how this prior experience will be used in carrying out your 
proposed comprehensive Lead-Based Paint Hazard Control Grant Program.
    (2) If you have received previous HUD Lead Hazard Control Grant 
funding, your past experience will be evaluated in terms of progress 
under the most recent previous grant. You must provide a description of 
your progress in implementing your most recent grant award within the 
period of performance, including the total number of housing units 
completed as of the most recent calendar quarter.
Rating Factor 2: Needs/Extent of the Problem (20 Points)
    This factor addresses the extent to which there is a need for the 
proposed program activities to address a documented problem in the 
target area.
    (1) Document a critical level of need for your proposed activities 
in the area where activities will be carried out. Since the principal 
objective of the program is to prevent at-risk children from being 
poisoned, specific attention must be paid to documenting such need as 
it applies to the targeted areas, rather than the entire locality or 
state. If the target area is an entire locality or state, then 
documenting need at this level is appropriate.
    (2) Document the extent of the problem which will be addressed by 
your proposed activities. Examples of data that you might use to 
demonstrate need, include, but are not limited to:
    (a) Numbers and proportions of children with elevated blood lead 
levels;
    (b) Economic and demographic data relevant to the target area, 
including poverty and unemployment rates;
    (c) Housing market data available from HUD, or other data sources, 
including the Consolidated Plan/AI, Public Housing Authority's Five 
Year Comprehensive Plan, State or local Welfare Department's Welfare 
Reform Plan; or
    (d) Lack of other Federal, State or local funding that could be, or 
is used, to address lead hazard control.
    (3) To the extent that statistics and other data contained in your 
community's Consolidated Plan or Analysis of Impediments to Fair 
Housing Choice (AI) support the extent of the problem, you should 
include references to the Consolidated Plan and the AI in your 
response.
    (4) Provide information on your jurisdiction, or preferably, the 
areas targeted for the lead hazard control activities (data may be 
available in your currently approved Consolidated Plan, derived from 
1990 Census Data, or special local studies):
    (a) The age and condition of housing;
    (b) The number and percentage of very-low (income less than 50% of 
the area median) and low (income less than 80% of the area median) 
income families, as determined by HUD, with adjustments for smaller and 
larger families;
    (c) The number and proportion of children under six years (72 
months) of age at risk of lead poisoning;
    (d) The extent of the lead poisoning problem in children under six 
years of age in target areas;
    (e) The health and economic impacts of Superfund or Brownfields 
sites on the targeted neighborhoods or communities; and
    (f) Other socioeconomic or environmental factors that demonstrate a 
need to establish or continue lead hazard control work in your 
jurisdiction.
    (5) You also must provide documentation of the priority that the 
community's Consolidated Plan has placed on addressing the needs you 
described.
    (6) If your application addresses needs that are in the 
Consolidated Plan, Analysis of Impediments to Fair Housing Choice, 
court orders or consent decrees, settlements, conciliation agreements, 
and voluntary compliance agreements, you will receive more points than 
applicants that do not relate their program to identified needs.
    (7) For you to receive maximum points for this factor, there must 
be a direct relationship between your proposed activities, community 
needs, and the purpose of the program funding.
Rating Factor 3: Soundness of Approach (45 points for previously 
unfunded applicants and 35 points for existing grantees)
    This factor addresses the quality and cost-effectiveness of your 
proposed work plan. You should present information on your proposed 
lead-based paint hazard control program and describe how it will 
satisfy the identified needs. To the extent possible, describe a 
comprehensive strategy to address the need to protect entire 
neighborhoods rather than individual units or homes. Your response to 
this factor should include the following elements:
    (1) Lead Hazard Control Strategy (35 points for previously unfunded 
applicants; 25 points for existing grantees). Describe your strategy to 
plan and execute your lead hazard control grant program. You should 
provide information on:
    (a) Implementing a Lead Hazard Control Program (15 points for 
previously unfunded applicants; 10 points for existing grantees). 
Describe your overall strategy for your proposed lead hazard control 
program. The description must include information on:

[[Page 9706]]

    (i) Your previous experience in reducing or eliminating lead-based 
paint hazards in conjunction with other Federal, State or locally 
funded programs.
    (ii) Your overall strategy for the identification, selection, 
prioritization, and enrollment of units of eligible privately-owned 
housing for lead hazard control. Describe the proposed activities that 
will occur in a high performing Empowerment Zone or Enterprise 
Community (EZ/EC). Provide estimates of the total number of owner 
occupied and/or rental units which will receive lead hazard control.
    (iii) The degree to which the work plan focuses on eligible 
privately-owned housing units with children under six years (72 months) 
old. Describe your planned approach to control lead hazards before 
children are poisoned and/or to control lead hazards in units where 
children have already been identified with an elevated blood lead 
level. Describe your process for referring and tracking children with 
elevated blood lead levels for medical case management. Provide 
estimates of the number of children you will assist through this 
program.
    (iv) The financing strategy, including eligibility requirements, 
terms, conditions, and amounts available, you will use in carrying out 
lead hazard control activities. You must discuss the way these funds 
will be administered (e.g. use of grants, deferred loans, forgivable 
loans, other resources, private sector financing, etc.), as well as the 
agency that will administer the financing process.
    (v) You should describe how your proposed program will satisfy the 
stated needs or will assist in addressing the impediments in the AI. 
Describe how your proposed program will further and support the policy 
priorities of the Department, including promoting healthy homes; 
providing opportunities for self-sufficiency, particularly for persons 
enrolled in welfare to work programs; or providing educational and job 
training opportunities.
    (b) Lead Hazard Control Outreach and Community Involvement (5 
points for all applicants). Your application must describe:
    (i) Proposed methods of community education. These may include 
community awareness, education, training, and outreach programs in 
support of the work plan and objectives. This description should 
include general and/or targeted efforts undertaken to assist your 
program in reducing lead exposure. Programs should be culturally 
sensitive, targeted, and linguistically appropriate. Upon request, this 
approach would include making all materials available in alternative 
formats to persons with disabilities (e.g., Braille, audio, large 
type), to the extent possible.
    (ii) How you intend to involve neighborhood or community-based 
organizations in your proposed activities. Your activities may include 
outreach, community education, marketing, inspection (including dust 
lead testing), and the conduct of lead hazard control activities. HUD 
will evaluate the level of substantive involvement during the review 
process.
    (iii) Outreach strategies and methodologies to affirmatively 
further fair housing and provide lead-safe housing to all segments of 
the population: homeowners, owners of rental properties, and tenants; 
especially for occupants least likely to receive its benefits. Once the 
population to which outreach will be ``targeted'' is identified, 
outreach strategies directed specifically to them should be 
multifaceted. This criterion goes beyond testing and hazard control; it 
concerns what happens to the units after lead hazard control activities 
and tries to ensure, for the long term, that all families will have 
adequate, lead-safe housing choices.
    (iv) Describe the ways you will train individuals and contractors 
in housing related trades, such as painters, remodelers, renovators, 
and maintenance personnel, in lead-safe practices. Describe how you 
will integrate such practices into lead hazard control activities.
    (c) Technical Approach for Conducting Lead Hazard Control 
Activities (15 points for previously unfunded applicants; 10 points for 
existing grantees).
    (i) Describe your process for risk assessment and/or inspection of 
units of eligible privately-owned housing in which you will undertake 
lead hazard control. You may include in the inventory of housing to 
receive lead hazard control housing having a risk assessment or 
inspection already performed by certified inspectors or risk assessors, 
in accordance with the HUD Guidelines and identified with lead-based 
paint hazards.
    (ii) Describe your testing methods, schedule, and costs for 
performing blood lead testing, risk assessments and/or inspections to 
be used. If you propose to use a more restrictive standard than the HUD 
thresholds (e.g., 0.5% or 1.0 mg/cm 2), identify the lead-
based paint threshold for undertaking lead hazard control which will be 
used. All testing shall be performed in accordance with the HUD 
Guidelines.
    (iii) Describe the lead hazard control methods you will undertake 
and the number of units you will treat for each method selected 
(interim controls, hazard abatement, and complete abatement). Provide 
an estimate of the per unit costs (and a basis for those estimates) for 
each lead hazard control method proposed and a schedule for initiating 
and completing lead hazard control work in the selected units. Discuss 
efforts to incorporate cost-effective lead hazard control methods. If 
you propose complete abatement, provide HUD with a detailed rationale 
for that decision.
    (iv) Describe how you will integrate proposed lead hazard control 
activities with rehabilitation activities.
    (v) Describe your contracting process, including development of 
specifications for selected lead hazard control methods. Describe the 
management processes you will use to ensure the cost-effectiveness of 
your lead hazard control methods. Your application must include a 
discussion of the contracting process for the conduct of lead hazard 
control activities in the selected units.
    (vi) Describe your plan for occupant protection or the temporary 
relocation of occupants of units selected for lead hazard control work. 
This discussion should address your use of safe houses and other 
housing arrangements, storage of household goods, stipends, incentives, 
etc.
    (vii) If you are an existing grantee, you must describe the actions 
you will take to ensure that your proposed lead hazard control work 
will occur concurrently with other ongoing HUD lead hazard control 
grant work. Your application must provide the detail necessary to 
assure HUD that you will implement the proposed work immediately and 
perform it concurrently with existing lead hazard control grant work.
    (viii) If you are an existing grantee, you must describe your 
progress in implementing your most recent lead hazard control grant 
award. If the production achieved is below the performance values 
(percentages of units completed) provided in the application kit, and 
no changes are proposed, you should explain why the strategy in the 
earlier grant remains appropriate.
    (2) Economic Opportunity (5 points for all applicants)
    Describe the methods to be used to provide economic opportunities 
for residents and businesses in the community. This discussion should 
include information on how you will promote training, employment, 
business development, and contract

[[Page 9707]]

opportunities as part of your lead hazard control program. Describe how 
you will accomplish the requirements of Section 3 of the Housing and 
Community Development Act of 1992 to give preference to hiring of low- 
and very low-income persons or contracting with businesses owned by or 
employing low- and very low-income persons.
    (3) Program Evaluation, Data Collection, and Research (5 points for 
all applicants).
    Identify and discuss the specific methods and measures you will use 
(in addition to HUD reporting or data collection forms) to measure 
progress, evaluate program effectiveness, and make program changes to 
improve performance. Describe how you will obtain, document and report 
the information. Describe your plans to develop and maintain a registry 
of publicly available information on lead-safe units, so that families 
(particularly those with children under age six) can make informed 
decisions regarding their housing options. In addition, provide a 
detailed description of any proposed applied research activities.
    (4) Budget (not scored) HUD will evaluate your proposed budget (for 
36 month period) to determine if it is reasonable, clearly justified, 
and consistent with the intended use of grant funds. HUD is not 
required to approve or fund all proposed activities. You may devote up 
to 36 months for the planning, implementation, and completion of lead 
hazard control activities. You must thoroughly document and justify all 
budget categories and costs (Part B of Standard Form 424A) and all 
major tasks. Describe in detail the budgeted costs for each program 
element (major task) included in the overall plan (the program elements 
are: administration; program management; marketing, community 
awareness, education and outreach; lead hazard control (including 
testing); relocation; program evaluation (including data collection); 
and applied research).
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to obtain other community 
resources (financing is a community resource) that can be combined with 
HUD's program resources to achieve program objectives.
    (1) In evaluating this factor, HUD will consider the extent to 
which you have established working partnerships with other entities to 
get additional resources or commitments to increase the effectiveness 
of the proposed program activities. Resources may include cash or in-
kind contributions (such as services or equipment) allocated to the 
proposed program. Resources may be provided by governmental entities, 
public or private organizations, or other entities partnering with you. 
Partnership relationships with community-based organizations are a 
requirement for State and local government applicants. State applicants 
which do not have such partnerships at the time of application will be 
required to establish partnership relationships between the state and/
or local subgrantees and community-based organizations immediately 
following grant award (this requirement does not apply to you if you 
are an Indian Tribe applicant). You also may partner with other program 
funding recipients to coordinate the use of resources in your target 
area.
    (2) You may not include funding from any Federally funded program 
(except the CDBG program) as part of your required 10% match. Other 
resources committed to the program that exceed the required 10% match 
will provide points for this rating factor and may include funds from 
other Federally funded programs. You must support each source of 
contributions, cash or in-kind, both for the required minimum and 
additional amounts, by a letter of commitment from the contributing 
entity, whether a public or private source. This letter must describe 
the contributed resources that you will use in the program. Staff in-
kind contributions should be given a monetary value. If you do not 
provide letters specifying details and the amount of the actual 
contributions, those contributions will not being counted.
    (3) You must provide evidence of leveraging or partnerships by 
including letters of firm commitment, memoranda of understanding, or 
agreements to participate from those entities identified as partners in 
your application. Each letter of commitment, memorandum of 
understanding, or agreement to participate should include the 
organization's name, the proposed level of commitment and 
responsibilities as they relate to your proposed program. The 
commitment must be signed by an official of the organization legally 
able to make commitments on behalf of the organization. Describe the 
role of community-based organizations in specific program activities, 
such as hazard evaluation and control; monitoring; and awareness, 
education, and outreach within the community.
Rating Factor 5: Comprehensiveness and Coordination (10 Points).
    This factor addresses the extent to which your program reflects a 
coordinated, community-based process of identifying needs and building 
a system to address the needs by using available HUD and other 
community resources. In evaluating this factor, HUD will consider how 
you have:
    (1) Coordinated your proposed activities with those of other groups 
or organizations to best support and coordinate all known activities 
and, the specific steps you will take to share information on solutions 
and outcomes with others. Any written agreements or memoranda of 
understanding in place or proposed should be described.
    (2) Become actively involved (or if not currently active, the 
specific steps it will take to become active) in your community's 
Consolidated Planning process established to identify and address a 
need/problem that is related in whole, or part, directly, or indirectly 
to the activities you propose.
    (3) Developed linkages, or the specific steps you will take to 
develop linkages with other activities, programs or projects through 
meetings, information networks, planning processes or other mechanisms 
to coordinate your activities so solutions are comprehensive, including 
linkages with:
    (a) Other HUD funded projects/activities outside the scope of those 
covered by the Consolidated Plan; and
    (b) Other HUD, Federal, State or locally funded activities, 
including those proposed or on-going in the community(s) served.
    (4) Coordinated and integrated lead hazard control work with 
housing rehabilitation, housing and health codes, other related housing 
programs, or including work of community development corporations and 
childhood lead poisoning prevention programs.
    (a) Described the degree to which lead hazard control work will be 
done in conjunction with other housing-related activities (i.e., 
rehabilitation, weatherization, correction of code violations, and 
other similar work), and your plan for the integration and coordination 
of lead hazard control activities into those activities.
    (b) Described plans to incorporate lead-based paint maintenance, 
essential maintenance practices, and hazard control standards with the 
applicable housing codes and health regulations.
    (c) Described plans to generate and use public subsidies or other 
resources (such as revolving loan funds) to finance future lead hazard 
control activities.
    (d) Described plans to develop public-private lending partnerships 
to finance lead hazard control as part of acquisition and 
rehabilitation financing

[[Page 9708]]

including the use of Community Reinvestment Act ``credits'' by lending 
institutions.
    (e) Evidenced firm commitments from participating organizations by 
describing:
    (i) The name of each organization;
    (ii) The capabilities or focus of each organization;
    (iii) The proposed level of effort of each organization; and
    (iv) The resources and responsibilities of each organization, 
including the applicant's clearly proposed plans for the training and 
employment of low-income residents.
    (f) Described plans to implement a registry of lead-safe housing.
    (g) Detailed the extent to which the policy of affirmatively 
furthering fair housing for all segments of the population is advanced 
by the proposed activities. Detail how your proposed work plan will 
support the community's efforts to further housing choices for all 
segments of the population. If you have an existing grant, you should 
discuss activities which have contributed to enhanced lead safe housing 
opportunities to all segments of the population.
    (h) Described plans to adapt or amend statutes, regulations, or 
policies which will more fully integrate lead hazard control into 
community policies and priorities.
    (5) Coordinated and cooperated with other organizations which will 
lead to a reduction in lead risks to community residents. This could 
include such activities as free training on lead-safe repainting and 
remodeling; promotion of essential maintenance practices; and provision 
of lead dust testing to low-income, privately-owned homes which may not 
receive lead hazard control assistance under this grant program.

VI. Application Submission Requirements

(A) Applicant Information

(1) Application Format
    The application narrative response to the Rating Factors is limited 
to a maximum of 25 pages. Your response must be typewritten on one (1) 
side only on 8\1/2\''  x  11'' paper using a 12 point (minimum) font 
with not less than \3/4\'' margins on all sides. Appendices should be 
referenced and discussed in the narrative response. Materials provided 
in the appendices should directly apply to the rating factor narrative.
(2) Application Checklist
    In addition to the certifications and assurances listed in the 
General Section of the SuperNOFA, you must submit the following:
    (a) Transmittal Letter that identifies ``the applicant'' (or 
applicants) submitting the application, the dollar amount requested, 
what the program funds are requested for, and the nature of involvement 
with community-based organizations.
    (b) The name, mailing address, telephone number, and principal 
contact person of ``the applicant.'' If you have consortium associates, 
sub-grantees, partners, major subcontractors, joint venture 
participants, or others contributing resources to your project, you 
must provide similar information for each of these partners.
    (c) Lead-Based Paint Contractor Certification and Accreditation 
Program
    (i) If you are a State or Indian Tribe, the EPA authorization of 
the state program (Section 402 and 404 of TSCA) must be included.
    (ii) If you are a local government in States which do not have an 
EPA authorized lead-based paint contractor certification program, you 
must provide assurances that you will use only performers certified 
under EPA-authorized state programs in conducting lead hazard control 
work.
    (d) A detailed budget with supporting cost justifications for all 
budget categories of your grant request. You must provide a separate 
estimate for the overall grant management element (Administrative 
Costs), which is more fully defined in the application kit for this 
program section of the SuperNOFA. The budget shall include not more 
than 10% for administrative costs and not less than 90% for direct 
project elements. In the event of a discrepancy between grant amounts 
requested in various sections of the application, the amount you 
indicate on the SF-424 will govern as the correct value.
    (e) An itemized breakout (using the SF-424A) of your required 
matching contribution, including:
    (i) Values placed on donated in-kind services;
    (ii) Letters or other evidence of commitment from donors; and
    (iii) The amounts and sources of contributed resources.
    (f) Memoranda of Understanding or Agreement, letters of commitment 
or other documentation describing the proposed roles of agencies, local 
broad-based task forces, participating community or neighborhood-based 
groups or organizations, local businesses, and others working with the 
program.
    (g) A copy of your approval notification for the current program 
year for your jurisdiction's Consolidated Plan. You also should include 
a copy of the lead hazard control element included in your current 
program year's Consolidated Plan.
    (h) Narrative responses to the five rating factors.

(B) Proposed Activities

    All applications must, at a minimum, contain the following items:
    (1) A description of the affected housing and population you will 
serve.
    (a) Describe the size and general characteristics of the target 
housing within the jurisdiction, including a description of the 
housing's location, condition, and occupants, and a current estimate of 
the number of children under the age of six in these units. You should 
provide other characteristics described in Rating Factor 2 (Need). If 
you are targeting specific area(s) (neighborhoods, census tracts, etc.) 
within your jurisdiction for lead hazard control activities, describe 
these same characteristics for the area. You should also include vacant 
housing that subsequently will be occupied by low-income renters or 
owners in this description. You may include maps as an appendix.
    (b) Provide information on the magnitude and extent of the 
childhood lead poisoning problem within your jurisdiction and for any 
area(s) you will include in your lead hazard control program.
    (c) Narrative statement addressing the rating factors for award of 
funding under this program section of the SuperNOFA. Your narrative 
statement must be numbered in accordance with each factor for award 
(Factor 1 through 5).

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    In accordance with HUD regulations in 24 CFR part 58, recipients of 
lead-based paint hazard control grants will assume Federal 
environmental review responsibilities. Recipients of a grant under this 
NOFA will be given guidance in these responsibilities.

IX. Authority

    The Lead-Based Paint Hazard Control Program is authorized by 
section 1011 of the Residential Lead-Based Paint Hazard Reduction Act 
of 1992 (Title X of the Housing and Community Development Act of 1992).

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Notices  

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  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

[[Page 9711]]



Notice of Funding Availability for Research to Improve the 
Evaluation and Control of Residential Lead-Based Paint Hazards

Program Overview

    Purpose of the Program. To fund research to improve methods for 
detecting and controlling residential lead-based paint hazards.
    Available Funds. Approximately $2.5 million.
    Eligible Applicants. Academic and not-for-profit institutions 
located in the U.S., and State and local governments. For-profit firms 
also are eligible; however, they are not allowed to earn a fee (i.e., 
no profit can be made from the project).
    Application Deadline. May 26, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Submit an original and four copies of your 
completed application on or before 12:00 midnight Eastern time on May 
26, 1999.
    See the General Section of this SuperNOFA for specific procedures 
that you must follow for the form of application submission (e.g., 
mailed applications, express mail, overnight delivery, or hand 
carried).
    Address for Submitting Applications. For Mailed Applications. The 
address for mailed applications is: Department of Housing and Urban 
Development, 451 7th Street, S.W., Room P3206, Washington, D.C. 20410.
    For Overnight/Express Mail or Hand Carried Applications. The 
address for overnight/express mail or hand carried applications is: HUD 
Office of Lead Hazard Control, 490 L'Enfant Plaza, SW, Suite 3206, 
Washington, DC 20024.
    For Application Kits. You may obtain an application kit from the 
SuperNOFA Information Center at 1-800-HUD-8929, or the TTY number at1-
800-483-2209. When requesting an application kit, please refer to the 
Lead Hazard Control Research grant program. Please be sure to provide 
your name, address (including zip code), and telephone number 
(including area code).
    For Further Information and Technical Assistance. For further 
information, you may contact: Dr. Peter Ashley, Office of Lead Hazard 
Control, at the address above; telephone (202) 755-1785, extension 115, 
or Ms. Karen Williams, Grants Officer, extension 118 (these are not 
toll-free numbers). Hearing- and speech-impaired persons may access the 
above telephone number via TTY by calling the toll-free Federal 
Information Relay Service at 1-800-877-8339.

II. Amount Allocated

    Approximately $2.5 million will be available to fund research 
proposals in FY 1999. Grants or cooperative agreements will be awarded 
on a competitive basis according to the Rating Factors described in 
section V(B). HUD anticipates that individual awards will range from 
approximately $250,000 to approximately $1,000,000.

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    Background. HUD has been actively engaged in a number of activities 
relating to lead-based paint as a result of the Lead-Based Paint 
Poisoning Prevention Act (LBPPPA) of 1971, as amended, 42 U.S.C. 4801-
4846. Sections 1051 and 1052 of the Lead Based Paint Hazard Reduction 
Act of 1992 (``Title X'') (42 U.S.C. 4854 and 4854a) state that the 
Secretary of HUD, in cooperation with other Federal agencies, shall 
conduct research on specific topics related to the evaluation and 
subsequent mitigation of residential lead hazards. This research 
program also implements, in part, HUD's Departmental Strategy for 
Achieving Environmental Justice pursuant to Executive Order 12898 
(Federal Actions to Address Environmental Justice in Minority 
Populations and Low-Income Populations).
    The HUD-sponsored research also responds to recommendations that 
were made by the Task Force on Lead-Based Paint Hazard Reduction and 
Financing, which was established pursuant to section 1015 of Title X. 
The Task Force presented its final report to HUD and the Environmental 
Protection Agency (EPA) in July 1995. The Task Force Report, entitled 
``Putting the Pieces Together: Controlling Lead Hazards in the Nation's 
Housing'' (see Appendix A of this program section of the SuperNOFA), 
recommended research be conducted on a number of key topics to address 
significant gaps in our knowledge of lead exposure and hazard control. 
Research findings will be used in part to update HUD's Guidelines for 
the Evaluation and Control of Lead-Based Paint in Housing 
(``Guidelines''), which were published in June, 1995 (see Appendix A of 
this program section of the SuperNOFA). The Guidelines are a report on 
state-of-the-art procedures for all aspects of lead-based paint hazard 
evaluation and control. The Guidelines reflect the Title X framework 
for lead hazard control, which distinguishes three types of control 
measures: interim controls, abatement of lead-based paint hazards, and 
complete abatement of all lead-based paint. Interim controls are 
designed to address hazards quickly, inexpensively, and temporarily, 
while abatement is intended to produce a permanent solution. While the 
Guidelines recommend procedures that are effective in identifying and 
controlling lead hazards while protecting the health of abatement 
workers and occupants, HUD recognizes that targeted research and field 
experience will result in future changes to the Guidelines.

(B) Eligible Applicants

    Academic and not-for-profit institutions located in the U.S., and 
State and local governments are eligible under all existing 
authorizations. Nonprofit institutions must submit proof of their 
nonprofit status. For-profit firms also are eligible; however, they are 
not allowed to earn a fee (i.e., no profit can be made from the 
project). Federal agencies and Federal employees are not eligible to 
submit applications. The General Section of the SuperNOFA provides 
additional eligibility requirements.

(C) Eligible Activities

    (1) General Goals and Objectives. The overall goal of this research 
is to gain knowledge to improve the efficacy and cost-effectiveness of 
methods for lead-based paint hazard evaluation and control. Specific 
research topics for which applications are being solicited include:
    (a) Treatment of lead-contaminated residential soils;
    (b) Efficacy of the current guidance on conducting risk assessments 
of multifamily housing; and,
    (c) Other areas of research that are consistent with the overall 
goals of this program section of the SuperNOFA.
    Research objectives for the specific research topics listed above 
are provided separately in the expanded discussion of these topic areas 
that follows in Section III(C)(2). Although HUD is soliciting proposals 
for research on these specific topics, the Department will also 
consider funding applications for research on topics which are relevant 
under the overall goals and objectives of this research, as described 
above. In such instances, the applicant

[[Page 9712]]

should describe how the proposed research activity addresses these 
overall goals and objectives.
    (2) Background and Objectives for Specific Research Topic Areas. 
    (a) Treatment of Lead-Contaminated Soils. 
    (i) General. Soils can become lead contaminated as a result of the 
shedding of leaded paint from the exterior of structures and by the 
deposition of airborne particulate lead. Before the removal of lead 
from gasoline, vehicular emissions were a significant source of 
airborne lead, especially in urban areas. Children can be exposed to 
lead in soil and exterior dust through direct contact and incidental 
ingestion, and indirectly as a result of soil or dust being tracked or 
blown into the home and becoming incorporated into house dust. The 
degree to which soil-lead is a hazard depends upon the potential for 
contact and the lead concentration of the soil.
    The HUD Guidelines (Chapter 5) indicate that bare soils should be 
considered hazardous if they exceed 400 ppm Pb in ``high contact'' 
areas (e.g., play areas) and if they exceed 2,000 ppm Pb in other areas 
of the yard. The Guidelines further indicate that outside of high 
contact areas, hazard control measures are not required unless the 
surface area for bare soils exceeds 9 ft2. Requirements for 
soil-lead hazard assessment and controls in HUD's proposed rule 
implementing sections 1012 and 1013 of Title X (evaluation and control 
of lead hazards in federally assisted housing) are generally consistent 
with the HUD Guidelines. The Guidelines are also generally consistent 
with interim guidance for lead in soil published by the U.S. EPA 
(Guidance on the Identification of Lead-Based Paint Hazards, 60 FR 
47247; September 11, 1995).
    The EPA has also recently proposed soil-lead standards, as required 
by section 403 of the Toxic Substances Control Act (TSCA) (63 FR 30302-
55; June 3, 1998). Soil-lead hazards can be mitigated using approaches 
that can be described as either interim controls or long term abatement 
measures (i.e., interventions that remain effective for at least 20 
years). Interim controls include various means of covering bare soil, 
such as with grass, gravel, or mulch. Land use controls can also be 
employed and include measures such as fencing and changing the location 
of play equipment. Interim controls are generally low cost and 
relatively easy to employ; however, they require periodic monitoring to 
ensure that they remain effective.
    Current HUD guidance calls for residential soils to be abated if 
soil-lead levels exceed 5,000 ppm. Soil abatement includes such 
measures as covering soil with impervious materials like concrete or 
asphalt, or removing contaminated soils for off-site disposal. Another, 
more experimental approach, includes removing soil for on-site 
treatment that removes lead, followed by replacing the ``cleaned'' 
soil. Because of the high cost of soil abatement methods, in 
conjunction with other barriers to their implementation (e.g., 
disposing of lead-contaminated soils), these methods are currently 
impractical for widespread adoption.
    Other approaches to reducing soil-lead hazards cannot be readily 
characterized as either interim controls or soil abatement. An example, 
which has not been evaluated scientifically, is tilling the soil to 
reduce the lead concentration at the soil surface. Another example is 
the untested concept of treating soil with a substance (e.g., ground 
phosphate rock) that would be expected to reduce the biological 
availability (i.e., the degree to which the lead is absorbed into the 
bloodstream following ingestion) of the soil-lead to humans.
    Relatively little research has been reported on the effectiveness 
of residential soil treatments in reducing children's lead exposures. 
Some studies have reported significant reductions in the blood-lead 
levels of children following the implementation of interim soil hazard 
reduction measures in conjunction with other lead hazard control 
measures performed on dwelling interiors. However, this type of study 
design makes it difficult to parse out the effect of the soil hazard 
controls in reducing lead exposure.
    The EPA-funded ``Three City Study'' assessed the impact of 
residential or neighborhood soil and dust abatement on children's blood 
lead levels (USEPA 1996). A small decline in the mean blood lead of 
children was observed following soil abatement at one of the three 
study sites.
    The major goals of this research are to improve methods for 
assessing potential risks from soil-lead exposure, to determine the 
effectiveness of various interim control methods of reducing 
residential soil-lead hazards, and to identify novel, cost-effective 
approaches to reducing or eliminating residential soil-lead hazards.
    (ii) Specific Research Objectives. Specific research objectives 
include the following:
    (1) Assess the effectiveness of selected interim control methods at 
reducing or eliminating residential soil-lead hazards;
    (2) Develop and assess novel, cost-effective methods for reducing 
or eliminating residential soil-lead hazards;
    (3) Assess the adequacy of the current EPA (1994 interim guidelines 
and 1998 proposed rule) and HUD Guidelines for identifying residential 
soil-lead hazards (e.g., area of bare soil for a hazardous condition, 
soil sampling guidelines); and
    (4) Improve knowledge regarding the relative importance of exterior 
dust and soil as lead exposure sources for children in various 
residential environments.
    (b) Lead Hazard Risk Assessment of Multifamily Housing.
    (i) General. For the purpose of assessing residential housing for 
lead-based paint hazards, Title X defines a lead-based paint hazard 
risk assessment as an on-site investigation of a dwelling for the 
purpose of identifying any lead-based paint hazards. Risk assessments 
include, but are not limited to, a visual assessment and limited 
environmental sampling, and creation of a written report with results 
and recommendations. It is also suggested that a risk assessor, to the 
extent feasible, conduct an investigation of the history and management 
of a dwelling and the age of the residents. Chapter 5 of the HUD 
Guidelines provides guidance on conducting risk assessments in single 
and multifamily housing, and addresses painted surfaces, dust, and 
soil. The described approaches for conducting lead hazard risk 
assessments in multifamily housing include methods that are based on: 
(a) targeted, worst case, and random sampling of housing units and 
common areas when assessing painted surfaces and/or dust for lead-based 
paint hazards, and (b) sampling of selected locations of building 
properties when assessing soil for lead hazards. These aspects of risk 
assessment are addressed by the Guidelines as follows:

Painted surfaces and dust

    Targeted sampling involves the selection of housing units and 
common areas deemed most likely to contain lead-based paint hazards. 
These units and common areas are identified primarily through 
information that is supplied by the owner (i.e., verbally and/or 
through written records). Examples of criteria for selecting units to 
be sampled include condition (e.g., select if ``poor''), the presence 
of children under age 6, and recent preparation for reoccupancy. One 
limitation of condition-based targeting is that most owners have little 
knowledge of lead risk assessment, and

[[Page 9713]]

may unintentionally fail to identify the units most likely to have LBP 
hazards; another arises from the potential conflict of interest of a 
risk assessor's reliance on the owner's characterization of the units 
and common areas. The Guidelines also provide a minimum number of units 
to be sampled in conducting risk assessments of similar multifamily 
units in developments of various sizes. The values provided were in 
part derived from a public housing risk assessment/insurance program.
    The other approaches discussed in the Guidelines for choosing units 
to be assessed, worst case and random sampling, are suggested for use 
when there is not adequate information on which to select a target 
sample. They would be more costly than the targeted approach in most 
cases. The worst-case sampling approach requires an initial visual 
inspection of all units and common areas with subsequent selection of 
those in poorest condition, while the random sampling method requires 
the random selection of a statistically based sample, as is required 
for conducting lead-based paint inspections. The statistically based 
random sample generally requires the selection of many more units than 
targeted sampling.
    A focused research effort is needed to assess the adequacy of the 
current HUD guidance for conducting risk assessments of multifamily 
developments. Research efforts could include the analysis of existing 
data from past risk assessments of multifamily developments (e.g., 
public housing) and/or the generation and analysis of new data 
generated from the assessment of a limited number of multifamily 
developments. As part of an evaluation of multifamily risk assessment 
guidance, consideration should be given as to how an assessor should 
characterize the results of a multifamily risk assessment in a manner 
that would maximize its utility to the client. If no lead hazards are 
identified, or if a clear pattern in the occurrence of lead hazards 
emerges, the reporting of results is straightforward. Other findings, 
however, such as the situation in which some lead hazards are detected 
with no apparent pattern of occurrence, are more difficult to 
characterize.

Soil

    Chapter 5 of the HUD Guidelines recommends that bare soils be 
sampled during a risk assessment of multifamily housing; however, no 
additional guidance specific to multifamily housing is provided. The 
general guidance for soil sampling is to collect a minimum of two 
composite samples per building, with one sample collected from the 
children's play area and the other sample collected from the front or 
back yard and/or an additional sample from the foundation drip line. It 
would be useful to expand this guidance to cover a wider range of 
conditions, such as large-area properties with a few high-occupancy 
buildings and multiple areas of bare soil, or small properties for 
which play areas may not be distinct from other areas. Improving the 
clarity of identification and characterization of play areas would also 
improve the existing guidance. Another question relates to the possible 
sampling of exterior dust. Should exterior dust be sampled, and if so, 
using what protocol, and how should results be interpreted?
    (ii) Specific Research Objectives. The major objective is to assess 
the utility of the current HUD guidance on conducting lead-based paint 
hazard risk assessments in multifamily developments and to identify 
changes that could be made to improve this guidance. Specific research 
objectives include:
    (1) Assess the utility of a ``targeted sampling'' approach in 
identifying lead hazards in multifamily housing in contrast to other 
approaches (e.g., random sampling).
    (2) Evaluate the current guidance on the minimum number of units to 
be assessed in targeted risk assessments of multifamily housing.
    (3) Develop guidance to risk assessors on cost effective methods of 
determining the location of hazards in unsampled units when the pattern 
of hazard occurrence is uncertain based on sampled units.
    (4) Improve the guidance for conducting soil sampling in 
conjunction with risk assessments for a wide variety of multifamily 
housing.
    (c) Other Relevant Research. HUD will also consider funding 
applications for research on topics which, although not specifically 
identified in this program section of the SuperNOFA, are relevant under 
the overall objective of improving the efficacy and cost-effectiveness 
of methods for the evaluation and control of lead-based paint hazards. 
All applications must comply with all requirements of this program 
section of the SuperNOFA.
    Other research topics that are of interest to HUD include, but are 
not limited to:
    (i) Assessment of the level of worker protection required for 
typical lead hazard abatement and control activities (i.e., as 
determined by personal exposure monitoring) with respect to evaluations 
of the type of work, properties of the work surfaces, training and 
experience of workers and supervisors, etc.
    (ii) The degree to which it is necessary to follow the approach 
recommended in the HUD Guidelines (Chapter 14) for clean-up (e.g., 
washing walls and ceilings, use of a HEPA vacuum and high phosphate 
detergents) following the completion of various lead hazard control 
interventions.

IV. Program Requirements.

    The threshold requirements are listed in Section II.B of the 
General Section of this SuperNOFA.

V. Application Selection Process

(A) Submitting Applications for Grants

    Your application must conform to the formatting guidelines 
specified in the application kit. This program section of the SuperNOFA 
specifies the sections to be included in the application and the 
application kit provides related formatting and content guidelines.
    Applications that meet all of the threshold requirements will be 
eligible to be scored and ranked, based on the total number of points 
allocated for each of the rating factors described below in section 
V(B). Your application must receive a total score of at least 65 points 
to remain in consideration for funding.
    HUD intends to make awards to qualifying applications in the 
following order:
    STEP 1 An award will be made to the highest ranked application in 
each of the three topic areas (including the ``other'' area) listed at 
sections III(C)(1)(a) through (c) of this program section of the 
SuperNOFA, within the limits of funding availability. If there are 
insufficient funds to award in all topic areas, HUD will make awards in 
topics (a) through (c) in rank order;
    STEP 2 If funding remains available, an award will be made to the 
second highest ranked application in each of the three topic areas 
listed at sections III.(C)(1)(a) through (c), within the limits of 
funding availability.
    STEP 3 If funding remains available, awards will be made in rank 
order regardless of topic area.
    You may address more than one of the research topic areas within 
your proposal; however, each topic area will be rated and ranked 
separately. Separate budgets should also be included for each of the 
topic areas, with the total cost not to exceed the total amount to be 
awarded. Projects need not address all of the objectives within a given 
topic area. While you will not be penalized for not addressing all of 
the specific objectives for a given topic area, if two applications for 
research in a given

[[Page 9714]]

topic have equal scores, HUD will select the applicant whose project 
addresses the most objectives.
    You are encouraged to plan projects that can be completed over a 
relatively short time period (e.g., 12 to 24 months from the date of 
award) so that any useful information that is generated from the 
research can be available for policy or program decisions and be 
disseminated to the public as quickly as possible.
    (B) Rating Factors. The factors for rating and ranking applicants, 
and maximum points for each factor, are provided below. The maximum 
number of points to be awarded is 102. This maximum includes two EZ/EC 
bonus points as described in the General Section of the SuperNOFA. 
Also, Section III(C)(2) of the General Section, which addresses a 
court-ordered consideration, is applicable to this program. The 
application kit contains additional guidance for responding to these 
factors.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points)
    This factor addresses the extent to which you have the ability and 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner. The rating of you, the 
``applicant,'' will include any sub-grantees, consultants, sub-
recipients, and members of consortia which are firmly committed to the 
project (generally, ``subordinate organizations''). In rating this 
factor HUD will consider the extent to which your application 
demonstrates:
    (1) The capability and qualifications of the principal investigator 
and key personnel (10 points). Qualifications to carry out the proposed 
study as evidenced by academic background, relevant publications, and 
recent (within the past 10 years) relevant research experience. 
Publications and research experience are considered relevant if they 
required the acquisition and use of knowledge and skills that can be 
applied in the planning and execution of the research that is proposed 
under this program section of the SuperNOFA.
    (2) Past performance of the research team in managing similar 
research (10 points). Demonstrated ability to successfully manage the 
various aspects of a complex research study in such areas as logistics, 
research personnel management, data management, quality control, 
community research involvement (if applicable), and report writing, as 
well as overall success in project completion (i.e., research completed 
on time and within budget). You should also demonstrate that the 
project would have adequate administrative support, including clerical 
and specialized support in areas such as accounting and equipment 
maintenance.
Rating Factor 2: Need/Extent of the Problem (15 Points)
    (1) You must demonstrate responsiveness to solicitation objectives. 
You should explain in detail the likelihood that the research would 
make a significant contribution towards achieving some or all of HUD's 
stated goals and objectives for one or more of the topic areas 
described in sections III(C)(2)(a)-(c) of this program section of the 
SuperNOFA. You also should explain how the proposed research could lead 
to improvements or additions to the HUD Guidelines.
    (b) If you are seeking funding for ``other'' research, as is 
described in section III(C)(2)(c), you must provide an explanation 
which demonstrates the importance and need for the research with 
respect to addressing the overall goal of this program section of the 
SuperNOFA (see section III(C)(1)).
Rating Factor 3: Soundness of Approach (45 Points)
    This factor addresses the quality of your proposed research plan. 
Specific components include the following:
    (1) Soundness of the study design (25 points). The study design 
must be thorough and feasible, and reflect your knowledge of the 
relevant scientific literature. You should include a plan for analyzing 
and archiving data.
    (2) Project management plan (10 points). The proposal should 
include a management plan that provides a schedule for the completion 
of major tasks and deliverables, with an indication that there will be 
adequate resources (e.g., personnel, financial) to successfully meet 
the proposed schedule. Projects with a duration of 24 months or less 
will be awarded more points in this category than projects with a 
longer duration.
    (3) Quality assurance mechanisms (5 points). You must describe the 
quality assurance mechanisms which will be integrated into your 
research design to ensure the validity and quality of the results. 
Areas to be addressed include acceptance criteria for data quality, 
procedures for selection of samples/sample sites, sample handling, 
measurement and analysis, and any standard/nonstandard quality 
assurance/control procedures to be followed. Documents (e.g., 
government reports, peer-reviewed academic literature) which provide 
the basis for the quality assurance mechanisms should be cited.
    (4) Budget Proposal (5 Points). The budget proposal should be 
thorough in the estimation of all applicable direct and indirect costs, 
and should be presented in a clear and coherent format in accordance 
with the requirements listed in the General Section of this SuperNOFA.
Rating Factor 4: Leveraging Resources (10 Points)
    The extent to which you can demonstrate that the effectiveness of 
the HUD research grant funds is being increased by securing other 
public and/or private resources or by structuring the research in a 
cost-effective manner, such as integrating the project into an existing 
research effort. Resources may include funding or in-kind contributions 
(such as services, facilities or equipment) allocated to the purpose(s) 
of the research. Staff and in-kind contributions should be given a 
monetary value.
    You must provide evidence of leveraging/partnerships by including 
in the application letters of firm commitment, memoranda of 
understanding, or agreements to participate from those entities 
identified as partners in the application. Each letter of commitment, 
memorandum of understanding, or agreement to participate should include 
the organization's name, proposed level of commitment and 
responsibilities as they relate to the proposed program. The commitment 
must also be signed by an official of the organization legally able to 
make commitments on behalf of the organization.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    You should describe how the results of your proposed research 
efforts will support planning, policy development, implementation of 
lead hazard control programs, and/or public education in the area of 
residential lead hazard control.

VII. Application Submission Requirements

(A) Applicant Data

    Applications should be submitted in accordance with the format and 
instructions contained in this program section of the SuperNOFA. The 
following are required elements of the application (the application kit 
provides all necessary details and information):
    (1) Transmittal Letter that identifies what the program funds are 
requested

[[Page 9715]]

for, the dollar amount requested, and the applicant or applicants 
submitting the application.
    (2) The name, mailing address, telephone number, and principal 
contact person of the applicant. If the applicant has consortium 
associates, sub-grantees, partners, major subcontractors, joint venture 
participants, or others contributing resources to the project, similar 
information shall also be provided for each of these entities.
    (3) Completed Forms HUD-2880, Applicant/Recipient Disclosure/Update 
Report; Certification Regarding Lobbying; and SF-LLL, Disclosure of 
Lobbying Activities, where applicable.
    (4) Standard Forms SF-424, 424A, 424B, and other certifications and 
assurances listed in the General Section of the SuperNOFA and in 
section VII(B) of this program section of the SuperNOFA.
    (5) A detailed total budget with supporting cost justification for 
all budget categories of the Federal grant request.
    (6) A one-page abstract containing the following information: The 
project title, the names and affiliations of all investigators, and a 
summary of the objectives, expected results, and study design described 
in the proposal.
    (7) A project description that does not exceed 25 pages for each 
research topic area.
    (8) Any important attachments, appendices, references, or other 
relevant information may accompany the project description, but must 
not exceed fifteen (15) pages for the entire application.
    (9) A narrative statement addressing the rating factors for award 
of funding under this program section of the SuperNOFA. The narrative 
statement must be numbered in accordance with each factor for award 
(Factor 1 through 5). The response to the rating factors should not 
exceed a total of 20 pages for each research topic area. (See 
application kit for format and required elements.)
    (10) The resumes of the principal investigator and other key 
personnel. Resumes shall not exceed three pages, and are limited to 
information that is relevant in assessing the qualifications of key 
personnel to conduct and/or manage the proposed research.
    (11) Copy of State Clearing House Approval Notification (see 
application kit to determine if applicable).
    (B) Certifications and Assurances. The following certifications and 
assurances are to be included in all applications:
    (1) Compliance with all relevant State and Federal regulations 
regarding exposure to and proper disposal of hazardous materials.
    (2) Assurance that the financial management system meets the 
standards for fund control and accountability (24 CFR 84.21 or 24 CFR 
85.20, as applicable);
    (3) Assurance, to the extent possible and applicable, that any 
blood lead testing, blood lead level test results, and medical referral 
and follow-up for children under six years of age will be conducted 
according to the recommendations of the Centers for Disease Control and 
Prevention (CDC) (Preventing Lead Poisoning in Young Children, See 
Appendix A of this program section of the SuperNOFA);
    (4) Assurance that HUD research grant funds will not replace 
existing resources dedicated to any ongoing project; and
    (5) Certification of compliance with the Drug-Free Workplace Act of 
1988 in accordance with the requirements set forth at 24 CFR part 24.
    (6) Assurance that laboratory analysis covered by the National Lead 
Laboratory Accreditation Program (NLLAP) is conducted by a laboratory 
recognized under the program.
    (7) Assurance that human research subjects will be protected from 
research risks in conformance with the Common Rule (Federal Policy for 
the Protection of Human Subjects, codified by HUD at 24 CFR part 60).

VIII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

IX. Environmental Requirements

    In accordance with 24 CFR 50.19(b)(1) and (5) of the HUD 
regulations, activities assisted under this program are categorically 
excluded from the requirements of the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321) and are not subject to environmental review 
under the related laws and authorities.

X. Authority

    These grants are authorized under sections 1051 and 1052 of the 
Residential Lead-Based Paint Hazard Reduction Act of 1992, which is 
Title X of the Housing and Community Development Act of 1992.

Appendix A--Relevant Publications and Guidelines

    To secure any of the documents listed, call the listed telephone 
number (generally, the telephone numbers are not toll-free).

Regulations

    1. Worker Protection: OSHA publication--Telephone: 202-693-1888 
(OSHA Regulations) (available for a charge)--Government Printing 
Office--Telephone: 202-512-1800 (not a toll-free number):

--General Industry Lead Standard, 29 CFR 1910.1025; (Document Number 
869022001124)
--Lead Exposure in Construction, 29 CFR 1926.62, and appendices A, 
B, C, and D; (Document Number 869022001141)
    2. Waste Disposal: 40 CFR parts 260-268 (EPA regulations) 
(available for a charge)--Telephone 1-800-424-9346, or, from the 
Washington, DC, metropolitan area, 1-703-412-9810 (not a toll-free 
number).
    3. Lead; Requirements for Lead-Based Paint Activities in Target 
Housing and Child-Occupied Facilities; Final Rule: 40 CFR Part 745, 
Subparts L and Q (EPA) (State Certification and Accreditation 
Program for those engaged in lead-based paint activities)--
Telephone: 1-202-554-1404 (Toxic Substances Control Act Hotline) 
(not a toll-free number).
    4. Requirements for Notification, Evaluation and Reduction of 
Lead-Based Paint Hazards in Federally Owned Residential Property and 
Housing Receiving Federal Assistance; Proposed Rule: 24 CFR Parts 
35, 36 and 37 (HUD)--Telephone: 1-202-755-1785 (Office of Lead 
Hazard Control) (not a toll-free number).
    5. U.S. Environmental Protection Agency. Lead; Identification of 
Dangerous Levels of Lead; Proposed Rule. Federal Register: 63 FR 
30302-30355, June 3, 1998. TSCA Hotline: 202-554-1404 (not a toll-
free number).

Guidelines

    1. Guidelines for the Evaluation and Control of Lead-Based Paint 
Hazards in Housing; HUD, June 1995 (available for a charge)--
Telephone: 800-245-2691:
    2. Preventing Lead Poisoning in Young Children; Centers for 
Disease Control, October 1991: Telephone: 888-232-6789.
    3. Screening Young Children for Lead Poisoning: Guidance for 
State and Local Public Health Officials, November 1997; Centers for 
Disease Control and Prevention (CDC): Telephone: 888-232-6789.

Reports

    1. Putting the Pieces Together: Controlling Lead Hazards in the 
Nation's Housing, (Summary and Full Report); HUD, July 1995 
(available for a charge)--Telephone 800-245-2691.
    2. Comprehensive and Workable Plan for the Abatement of Lead-
Based Paint in Privately Owned Housing: Report to Congress; HUD, 
December 7, 1990 (available for a charge)--Telephone 800-245-2691.
    3. A Field Test of Lead-Based Paint Testing Technologies: 
Summary Report (Summary also available); U.S. Environmental 
Protection Agency, May 1995. EPA 747-R-95-002a (available at no 
charge)--Telephone 800-424-5323.
    4. Urban Soil Lead Abatement Demonstration Project. EPA 
Integrated Report, U.S. Environmental Protection Agency, April, 
1996. EPA/600/P-93-001AF (available from National Technical 
Information Service (NTIS) for a charge)--Telephone 800-553-6847.

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Notices  

[[Page 9717]]


      
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BILLING CODE 4210-32-C

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

[[Page 9719]]



Funding Availability for Interventions to Control Mold and Moisture 
Problems in Inner-City Housing

Program Overview

    Purpose of the Program. The purpose of the program is to assist 
State and local governments in undertaking demonstration projects of 
preventive measures to correct mold and moisture problems in inner-city 
housing occupied by families with young children in communities where 
exposure to toxigenic molds has been linked to cases of acute pulmonary 
hemorrhage and death in infants.
    Available Funds. Approximately $4.0 million.
    Eligible Applicants. State or local governments.
    Application Deadline. May 26, 1999.
    Match. None.

Additional Information

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Submit an original and four copies of your 
completed application on or before 12:00 midnight Eastern Time on May 
26, 1999.
    The General Section of the SuperNOFA provides additional 
information regarding the delivery methods for the applications.
    Address for Submitting Applications. For Mailed Applications. The 
address for mailed applications is: Department of Housing and Urban 
Development, 451 Seventh Street, SW, Room P3206, Washington, D.C. 
20410.
    For Overnight/Express Mail or Hand Carried Applications. The 
address for applications that are hand carried or sent via overnight 
delivery is : HUD Office of Lead Hazard Control, Suite 3206, 490 
L'Enfant Plaza SW, Washington, D.C. 20024.
    For Application Kits. You may obtain an application kit from the 
SuperNOFA Information Center at 1-800-HUD-8929, or the TTY number at 1-
800-483-2209. When requesting an application kit, please refer to 
``Interventions to Control Mold and Moisture.'' Please be sure to 
provide your name, address (including zip code), and telephone number 
(including area code). Alternatively, you may obtain an application kit 
by downloading it from the internet at http://www.hud.gov.
    For Further Information Contact. Dr. Peter Ashley, Planning and 
Standards Division, Office of Lead Hazard Control, at the address 
above; telephone (202) 755-1785, extension 115, or Ms. Karen Williams, 
Grants Officer, extension 118 (these are not toll-free numbers). 
Hearing- and speech-impaired persons may access the above telephone 
numbers via TTY by calling the toll-free Federal Information Relay 
Service at 1-800-877-8339.

II. Amount Allocated

    Approximately $4.0 million will be available to fund demonstration 
projects in FY 1999. Grants will be awarded on a competitive basis 
following evaluation of all proposals according to the Rating Factors 
described in section V(B). HUD anticipates that approximately 1 to 3 
grants will be awarded, ranging from approximately $1,500,000 to 
approximately $4,000,000.

III. Program Description, Eligible Applicants, and Eligible 
Activities

(A) Program Description

    (1) Background. (a) Molds (filamentous fungi) can grow on and 
within various substrates within a home following water intrusion as a 
result of events such as flooding and plumbing and roof leaks. Of 
particular concern is the growth of molds that are capable of forming 
toxic substances (i.e., toxigenic molds). Exposure to molds and their 
toxic byproducts can be hazardous to humans through direct contact with 
the skin, ingesting mold-contaminated foods, or by inhaling mold 
particles. Such exposures have been associated with a variety of 
symptoms, including rashes, fever, headache, upper respiratory 
infection, asthma, chronic fatigue, and in severe cases, death (Croft 
et al. 1986, Johanning et al. 1996).
    One of the most hazardous of the toxigenic molds is Stachybotrys 
chartarum. Stachybotrys is a greenish-black mold that grows on water-
soaked, cellulose-containing materials such as wood paneling, ceiling 
tiles, paper products, and some types of insulation. An association was 
found between the presence of this mold in water-damaged homes in a 
large, midwestern city, and the occurrence of acute pulmonary 
hemorrhage in infants, leading to death in some cases (Etzel et al. 
1998; MMWR 1994, 1997). Air sampling conducted in the homes of the 
disease cases also identified considerably higher concentrations of 
other varieties of mold in the homes of victims as compared to control 
homes. The cases were found to be geographically clustered in an area 
of the city with housing that is old and often times inadequately 
maintained, with evidence of water damage and chronic moisture 
problems. A cluster of cases of acute infant pulmonary hemorrhage was 
also reported in another U.S. city; however, no epidemiological study 
of potential causative environmental agents has been published (MMWR 
1995).
    Inspection of homes for mold problems can include visual survey for 
mold and water damage, bulk and surface sampling of contaminated 
materials, and air monitoring. Mold is especially serious when 
substantial amounts are found to occur in air ducts that are part of 
the home heating system. Heating ducts provide a means for the wide 
distribution of mold particulates throughout the house. To be 
effective, any remediation strategy must include elimination of 
moisture intrusion into the home. Because water damage and mold growth 
are most likely to occur in older housing, as has been reported, it is 
likely that the affected dwellings also contain lead-based paint which 
could be in a deteriorated condition. Therefore, any remediation 
strategy for mold growth should include the identification and control 
of lead-based paint hazards. Remediation workers must be trained to 
work safely in mold-contaminated environments as well as in safe 
methods for lead hazard control. Precautions also must be taken to 
adequately protect occupants during interventions.
    (b) References. See Appendix A.
    (2) Goals and Objectives. The primary goal of this program is to 
protect children by supporting one or more demonstration projects 
employing cost-effective, replicable interventions to remediate 
moisture intrusion and associated mold growth in inner-city housing 
occupied by families with young children in communities where toxic 
mold exposure has been linked to acute pulmonary hemorrhage in infants 
(``eligible housing'').
    Objectives include the following:
    (a) Developing a cost-effective survey protocol for identifying 
homes that are candidates for moisture control interventions, 
identifying lead-based paint and other hazards associated with moisture 
intrusion, and screening out homes where structural or other condition 
factors make interventions infeasible or impractical.
    (b) Developing a flexible set of intervention strategies that take 
into account the range of conditions likely to be encountered in older 
inner-city housing, and the need to maximize the number of housing 
units that receive an intervention.
    (c) Developing an efficient strategy for evaluating the 
effectiveness of interventions in preventing moisture intrusion and 
controlling mold growth.
    (d) Building local capacity to develop a sustainable program that 
will continue to prevent and, where they occur, minimize and control 
toxic mold

[[Page 9720]]

hazards in low and very-low income residences when HUD funding is 
exhausted.
    (e) Affirmatively furthering fair housing and environmental 
justice.
    (f) Mobilizing public and private resources, involving cooperation 
among all levels of government, the private sector, and community-based 
organizations to develop the most promising, cost-effective methods for 
identifying and controlling moisture problems and associated mold 
hazards in inner city housing.
    (g) Integrating mold- and lead-safe work practices into housing 
maintenance, repair, and improvements.
    (h) To the greatest extent feasible, promoting job training, 
employment, and other economic opportunities for low-income and 
minority residents and businesses which are owned by and/or employ low-
income and minority residents as defined in 24 CFR 135.5 (See 59 FR 
33881, June 30, 1994).

(B) Eligible Applicants

    To apply for funding under this announcement, you must be a State 
or unit of local government. Multiple units of local government (or 
multiple local governments) may apply as part of a consortium; however, 
a single lead government or agency must be identified and that agency 
will be considered ``the applicant.'' Only one application may be 
submitted from each applicant. If your name appears as lead agency in 
multiple applications, this will be considered a curable (minor) 
defect. HUD will request that you clarify which application you want 
HUD to consider as your application. If you fail to respond, any 
application in which you are identified as the lead agency will be 
returned unevaluated.

(C) Eligible Activities

    You will be afforded considerable latitude in designing and 
implementing the interventions to prevent moisture intrusion and 
remediate existing mold hazards. However, in developing a strategy, you 
should use all reasonably available sources of information on 
controlling moisture and associated mold problems in buildings and 
protecting workers and occupants during and after the intervention 
process. HUD is interested in promoting housing intervention approaches 
that result in the reduction of this health threat for the maximum 
number of residents, and in particular low-income residents, and that 
demonstrate replicable techniques which are cost-effective and 
efficient.
    The following direct and support activities are eligible under this 
grant program.
    (1) Direct Project Elements (activities conducted by you and any 
sub-recipients):
    (a) Performing evaluations of eligible housing to determine the 
presence of moisture intrusion and related conditions (e.g., mold 
growth, damaged lead-based paint) through the use of generally accepted 
testing procedures.
    (b) Conducting medical examinations of young children for 
conditions caused or exacerbated by mold exposure where this is 
considered essential to your project, and there are no alternative 
sources to cover these costs.
    (c) Conducting housing interventions to remediate existing mold 
growth and address conditions that could result in the recurrence of 
mold growth by preventing the intrusion of moisture into a dwelling. 
Any lead hazard evaluation and control work shall be conducted in 
accordance with the HUD Guidelines for the Evaluation and Control of 
Lead-Based Paint Hazards in Housing (``Guidelines'').
    (d) Carrying out temporary relocation of families and individuals 
during the period in which intervention is conducted and until the time 
the affected unit receives clearance for reoccupancy.
    (e) Performing medical testing recommended by a physician or 
applicable occupational or public health agency for individuals working 
with toxic molds and air sampling to protect the health of the 
intervention workers, supervisors, and contractors.
    (f) Undertaking housing rehabilitation activities that are 
specifically required to carry out effective control of moisture 
intrusion and mold hazards, and without which the intervention could 
not be completed and maintained. Grant funds under this program may 
also be used to control immediate lead-based paint hazards.
    (g) Conducting clearance testing and analysis for lead and/or mold, 
as appropriate.
    (h) Carrying out architectural, engineering and work specification 
development and other construction management services necessary to, 
and in direct support of, activities to control moisture problems and 
remediate existing mold and/or lead hazards.
    (i) Providing training on safe maintenance practices to homeowners, 
renters, painters, remodelers, and housing maintenance staff working in 
low- or very-low income housing.
    (j) Providing cleaning supplies for mold-hazard intervention and 
lead-hazard control to community/neighborhood-based organizations for 
use by homeowners and renters in low income housing, or to such 
homeowners, and renters directly, in conjunction with training under 
section III.(C)(1)(i), or as part of research activities under section 
III.(C)(1)(n) of this program section of this SuperNOFA.
    (k) Conducting general or targeted community awareness or education 
programs on environmental health hazards associated with moisture 
intrusion. This activity would include training on safe maintenance and 
renovation practices. It would also include making materials available, 
upon request, in alternative formats for persons with disabilities 
(e.g., Braille, audio, large type), and in languages other than English 
that are common in the community, whenever possible.
    (l) Securing liability insurance for mold-intervention and lead-
hazard evaluation and control activities to be performed.
    (m) Supporting data collection, analysis, and evaluation of project 
activities. This activity is separate from administrative costs.
    (n) Conducting applied research activities directed at 
demonstration of cost-effective evaluation and intervention methods for 
preventing moisture intrusion into dwellings and abating associated 
mold hazards, particularly in conjunction with concurrently evaluating 
and controlling other moisture-related environmental health hazards.
    (o) Presenting research findings at a scientific conference in each 
project year after the first.
    (p) Maintaining a registry (updated at least monthly) of housing 
units in which moisture problems, mold hazards and lead hazards were 
not found during evaluation, or in which such problems and hazards have 
been controlled.
    (q) Preparing quarterly progress reports, interim and final 
research reports, and an overall final grant report detailing 
activities, findings, conclusions and recommendations, at the 
conclusion of grant activities.
    (2) Support Elements.
    (a) Your administrative costs.
    (b) Program planning and management costs of sub-grantees and other 
sub-recipients.

(D) Ineligible Activities

    Program funds shall not be used for:
    (1) Purchase of real property.
    (2) Purchase or lease of equipment having a per unit cost in excess 
of $5,000, except upon approval by HUD.
    (3) Medical treatment costs for children with illness associated 
with

[[Page 9721]]

exposure to molds or for children with elevated blood lead levels, 
except as part of research activities under section III.(C)(1)(n), 
above, in this program section of the SuperNOFA.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, applicants are subject to the following 
requirements:
    (A) Budgeting. Administrative Costs. There is a 10% maximum for 
administrative costs. The application kit contains specific information 
on allowable administrative costs.
    (B) Period of Performance. The period of performance cannot exceed 
36 months.
    (C) Coastal Barrier Resources Act. Pursuant to the Coastal Barrier 
Resources Act (16 U.S.C. 3501), funds may not be used for properties 
located in the Coastal Barrier Resources System.
    (D) Flood Disaster Protection Act. Under the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128), funds may not be used for 
construction, reconstruction, repair or improvement of a building or 
mobile home which is located in an area identified by the Federal 
Emergency Management Agency (FEMA) as having special flood hazards 
unless:
    (1) The community in which the area is situated is participating in 
the National Flood Insurance Program in accordance with the applicable 
regulations (44 CFR parts 59-79), or less than a year has passed since 
FEMA notification regarding these hazards; and
    (2) Where the community is participating in the National Flood 
Insurance Program, flood insurance on the property is obtained in 
accordance with section 102(a) of the Flood Disaster Protection Act (42 
U.S.C. 4012a(a)). You are responsible for assuring that flood insurance 
is obtained and maintained for the appropriate amount and term.
    (E) National Historic Preservation Act. The National Historic 
Preservation Act of 1966 (16 U.S.C. 470) (NHPA) and the regulations at 
36 CFR part 800 apply to the mold intervention and related hazard 
control activities that are undertaken pursuant to this program. HUD 
and the Advisory Council for Historic Preservation have developed an 
optional Model Agreement for use by grantees and State Historic 
Preservation Officers in carrying out any lead hazard control 
activities under this program.
    (F) Waste Disposal. Waste disposal will be handled according to the 
requirements of OSHA (e.g., 29 CFR part 1910 and/or 1926, as 
applicable), the Environmental Protection Agency (EPA) (e.g., 40 CFR 
parts 61, 260-299, 300-399, and/or 700-799, as applicable), the 
Department of Transportation (e.g., 49 CFR parts 171-177), and/or 
appropriate State or local regulatory agency(ies). Disposal of wastes 
from intervention activities that contain lead-based paint but are not 
classified as hazardous will be handled in accordance with the HUD 
Guidelines.
    (G) Worker Protection Procedures. You must comply with the 
requirements of the Occupational Health and Safety Administration 
(OSHA; e.g., 29 CFR part 1910 and/or 1926, as applicable), or the State 
or local occupational safety and health regulations, whichever are most 
stringent.
    (H) Written Policies and Procedures. You must have written policies 
and procedures for all phases of intervention, including evaluation, 
development of specifications, financing, occupant relocation, 
independent project inspection, and clearance testing (for mold and/or 
lead, as applicable). You and all your subcontractors, sub-recipients, 
and their contractors must comply with these policies and procedures.
    (I) Continued Availability of Safe Housing to Low-Income Families. 
Units in which mold hazards have been controlled under this program 
shall be occupied by and/or continue to be available to low-income 
residents.
    (J) Data collection and provision. You must collect, maintain and 
provide to HUD the data necessary to document the various approaches 
used to evaluate and control mold and lead hazards, including 
evaluation and control methods, building conditions, medical and 
familial information (with confidentiality of individually-identifiable 
information ensured) in order to determine the effectiveness and 
relative cost of these methods.
    (K) Section 3 Employment Opportunities. Please see Section II(E) of 
the General Section of this SuperNOFA. The requirements of Section 3 
are applicable to this program.
    (L) Certifications and Assurances.
    In addition to the certifications and assurances listed in the 
General Section of the SuperNOFA, a single certification form is 
included in the application kit. This includes:
    (1) An assurance in accordance with 24 CFR 50.3(h) that the 
applicant will carry out its responsibilities regarding HUD's 
environmental review.
    (2) A certification of compliance with the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970, and the 
implementing regulations at 49 CFR 24; and HUD Handbook 1378 (Tenant 
Assistance, Relocation and Real Property Acquisition).
    (3) An assurance that the applicant's financial management system 
meets the standards for fund control and accountability described in 24 
CFR 85.20.
    (4) An assurance that any pre-intervention and clearance evaluation 
for lead will be conducted by certified performers.
    (5) An assurance that project funds obtained through this SuperNOFA 
will not replace existing resources dedicated to any ongoing project.
    (6) Assurance that human research subjects will be protected from 
research risks in conformance with the Common Rule (Federal Policy for 
the Protection of Human Subjects, codified by HUD at 24 CFR part 60).
    (M) Davis-Bacon Act. The Davis-Bacon Act does not apply to this 
program. However, if program funds are used in conjunction with other 
Federal programs in which Davis-Bacon prevailing wage rates apply, then 
Davis-Bacon provisions would apply to the extent required under the 
other Federal programs.

V. Application Selection Process

(A) Rating and Ranking

    HUD intends to fund the highest ranked applications within the 
limits of funding. Once available funds have been allocated to meet the 
requested or negotiated amounts of the top eligible applicants, HUD 
reserves the right, in successive order, to offer any residual amount 
as partial funding to the next eligible applicant provided HUD, in its 
sole judgment, is satisfied that the residual amount is sufficient to 
support a viable, though reduced effort.

(B) Factors for Award Used to Evaluate and Rate Applications

    This section provides the factors for rating and ranking your 
application and the maximum points for each factor. The application kit 
provides additional instructions for responding to these factors. The 
maximum number of points to be awarded is 102. This maximum includes 
two EZ/EC bonus points as described in the General Section of the 
SuperNOFA. Also, Section III(C)(2) of the General Section, which 
addresses a court-ordered consideration, is applicable to this program.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points)
    This factor addresses your organizational capacity necessary to

[[Page 9722]]

successfully implement your proposed activities in a timely manner. The 
rating of you or your staff includes any community-based organizations, 
sub-contractors, consultants, sub-recipients, and members of consortia 
that are firmly committed to your project. In rating this factor HUD 
will consider:
    (1) Your recent, relevant and successful demonstrated experience in 
undertaking eligible program activities. You must describe the 
knowledge and experience of the proposed overall project director and 
day-to-day program manager in planning and managing large and complex 
interdisciplinary programs, especially those involving housing 
rehabilitation, public health, or environmental programs. In your 
narrative response for this factor, you should include information on 
your program staff, their experience, commitment to the program, and 
position titles. Resumes of up to three (3) pages each and position 
descriptions for up to three personnel in addition to the project 
director and program manager, and a clearly delineated organizational 
chart for your project must be included as an appendix. Copies of job 
announcements (including salary range) should be included for any key 
positions that are currently vacant. Indicate the percentage of time 
that key personnel will devote to your project and any salary costs to 
be paid by funds from this program.
    (2) Whether you have sufficient personnel or will be able to 
quickly retain qualified experts or professionals to begin your 
proposed program immediately and to perform your proposed activities in 
a timely and effective fashion. Describe how other principal components 
of your agency or other organizations will participate in or support 
your project. You should thoroughly describe capacity, as demonstrated 
by experience in initiating and implementing related environmental, 
health, or housing projects.
Rating Factor 2: Need/Extent of the Problem (15 Points)
    This factor addresses the extent to which there is a need for your 
proposed program activities to address a documented problem in your 
target inner city area(s).
    (1) Document a critical level of need for your proposed activities 
in the inner city area where activities will be carried out. You should 
pay specific attention to documenting need as it applies to your target 
area(s), rather than the larger geographic area.
    (2) Your documentation of need should summarize available data 
linking toxigenic mold growth with cases of acute pulmonary hemorrhage 
in infants in your target area(s). Examples of supporting data that 
might be used to demonstrate need, include:
    (a) Economic and demographic data relevant to your target area(s), 
including poverty and unemployment rates;
    (b) Rates of childhood illnesses (e.g., asthma) that could be 
caused or exacerbated by mold exposure, among children residing in your 
target area(s), and rates of environmental intervention blood lead 
levels in your target area(s);
    (c) Lack of other Federal, State or local funding that could be, or 
is used, to address the problem HUD program funds are designed to 
address.
    (3) For the areas targeted for your project activities, provide 
data available in your jurisdiction's currently approved Consolidated 
Plan, or derived from 1990 Census Data, or derived from other sources 
(all data should be documented):
    (a) The age and condition of housing;
    (b) The number and percentage of very-low and low income families 
with incomes less than 80% of the median income, as determined by HUD, 
for the area, with adjustments for smaller and larger families (See 
application kit for additional information.);
    (c) The number and proportion of children under six years old.
    (4) Describe how proposed research activities would help HUD 
achieve its goals for this program area of this SuperNOFA.
    (5) There must be a direct relationship between the proposed 
activities, community needs, and the purpose of the program.
Rating Factor 3: Soundness of Approach (45 Points)
    This factor addresses the quality and cost-effectiveness of your 
proposed work plan. You should present information on the proposed 
approach for controlling moisture intrusion and remediating existing 
mold problems. The response to this factor should include the following 
elements:
    (1) Intervention Strategy (30 points). Describe the strategy you 
will use in planning and executing the moisture control and mold hazard 
interventions in inner city housing. You should provide information on:
    (a) Strategy for Implementing the Demonstration Project (10 
points). Describe your overall strategy for your proposed demonstration 
project. The description must include a discussion of:
    (i) Your previous experience in reducing or eliminating mold and 
moisture problems in urban housing (if any).
    (ii) Your overall strategy for identifying, selecting, 
prioritizing, and enrolling units of eligible housing in which you will 
undertake mold and moisture control. Describe the extent to which your 
proposed activities will occur in an Empowerment Zone or Enterprise 
Community (EZ/EC), if applicable.
    (iii) The estimated total number of owner occupied and/or rental 
units in which you will conduct interventions.
    (iv) The degree to which your work plan focuses on eligible 
privately-owned and/or publicly-owned housing units with young 
children. Describe your planned approach to control moisture, mold and 
other environmental health problems associated with moisture intrusion 
before children are affected; and/or to control these hazards in units 
where children have already been treated for illnesses associated with 
mold exposure (e.g., acute pulmonary hemorrhage, asthma). Describe the 
process for your referral of ill children for medical case management 
if this is not ongoing.
    (v) The financing strategy, including eligibility requirements, 
terms, conditions, and amounts available, to be employed in conducting 
mold and moisture control activities. You must discuss the way funds 
will be administered (e.g., use of grants, deferred loans, forgivable 
loans, other resources, private sector financing, etc.) as well as the 
agency which will administer the process. Describe how your proposed 
project will further and support the policy priorities of the 
Department, including promoting Healthy Homes; providing opportunities 
for self-sufficiency, particularly for persons enrolled in welfare-to-
work programs; or providing educational and job training opportunities.
    (b) Outreach and Community Involvement (5 points). You must 
describe:
    (i) Proposed methods of community education. These should include 
community awareness, education, training, and outreach programs in 
support of your work plan and objectives. This should include general 
and/or targeted efforts undertaken to assist your efforts in reducing 
exposure to residential mold hazards. To the extent possible, programs 
should be culturally sensitive, targeted, and linguistically 
appropriate.
    (ii) Proposed involvement of neighborhood or community-based 
organizations in the proposed activities. These activities may include 
outreach, community education, marketing,

[[Page 9723]]

inspection, and housing evaluations and interventions.
    (c) Technical Approach for Conducting Mold and Moisture 
Interventions (15 points)
    (i) Describe your process for evaluating units of eligible housing 
in which you will undertake moisture control and mold removal.
    (ii) Describe any specialized testing or visual inspection that you 
will conduct during unit inspection with reference to source(s) of the 
protocol(s). Describe qualifications and experience requirements for 
laboratories, which shall include, as applicable, successful 
participation in the Clinical Laboratory Program, National Lead 
Laboratory Accreditation Program, and/or National Voluntary Laboratory 
Accreditation Program.
    (iii) Describe the mold and moisture control interventions you will 
undertake. Provide an estimate of the per unit costs (and a basis for 
those estimates) for the type of interventions that are planned. 
Provide a schedule for initiating and conducting interventions in the 
selected units. Discuss efforts to incorporate cost-effective control 
methods to address other environmental health hazards resulting from 
water damage (e.g., deteriorating lead-based paint, damaged asbestos-
containing materials). Work should be conducted in accordance with the 
HUD Guidelines in units where lead hazards are identified.
    (iv) Describe your process for the development of work 
specifications for selected interventions. Describe your management 
processes to be used to ensure the cost-effectiveness of the housing 
interventions. Discuss your contracting process to obtain contractors 
to conduct interventions in selected units.
    (v) Describe your plan for the temporary relocation of occupants of 
units selected for intervention, and how you will determine the need 
for relocation. Address the use of safe houses and other housing 
arrangements, storage of household goods, stipends, incentives, etc.
    (2) Economic Opportunity (5 points) Describe methods that will 
result in economic opportunities for residents and businesses in the 
community where activities will be carried out. Include information on 
how you will provide employment, business development, and contract 
opportunities. Describe how you or your partners will satisfy the 
requirements of Section 3 of the Housing and Community Development Act 
of 1992 to give preference to hiring low- and very low-income persons 
or contracting with businesses owned by or employing low-and very-low 
income persons.
    (3) Program Evaluation and Research (10 points).
    (a) Identify and discuss the specific methods you will use to 
measure progress, and evaluate the effectiveness of interventions. 
Describe how the information will be obtained, documented, and 
reported.
    (b) Provide a detailed description of your proposed applied 
research activities. Your research designs should be feasible and 
display thorough knowledge of relevant scientific literature. They 
should include an appropriate plan for managing, analyzing and 
archiving data. Also, quality assurance mechanisms must be well 
integrated into your research design to ensure the validity and quality 
of collected data.
    (4) Budget (Not Scored). Your proposed budget will be evaluated for 
the extent to which it is reasonable, clearly justified, and consistent 
with the intended use of program funds. HUD is not required to approve 
or fund all proposed activities. You must thoroughly document and 
justify all budget categories and costs (Part B of Standard Form 424A) 
and all major tasks. Describe in detail your budgeted costs for each 
required program element (major task) included in your overall plan. 
The four required program elements are: administration; education and 
outreach; control of mold and moisture-related hazards (including 
sampling); and program evaluation and applied research.
    (5) Court-Ordered Consideration. Due to an order of the U.S. 
District Court for the Northern District of Texas, Dallas Division, HUD 
will award up to two (2) additional points to an application submitted 
by the City of Dallas, Texas, to the extent the application's proposed 
activities will eradicate the vestiges of racial segregation in the 
Dallas Housing Authority's programs consistent with the Court's order.
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure other community 
resources (such as financing, supplies or services) which can be 
combined with HUD's resources to achieve project purposes.
    (1) In evaluating this factor, HUD will consider the extent to 
which you have partnered with other entities to secure additional 
resources to increase the effectiveness of your proposed project. 
Resources may include funding or in-kind contributions (such as 
services or equipment) allocated to your proposed program. Resources 
may be provided by governmental entities, public or private 
organizations, or other entities willing to be your partner in this 
effort.
    (2) Each source of contributions must be supported by a letter of 
commitment from the contributing entity, whether a public or private 
source, which must describe the contributed resources that will be used 
in your program. Staff in-kind contributions should be given a market-
based monetary value. If you fail to provide letters of commitment with 
specific details including the amount of the actual contributions, you 
will not get rating points for this factor. Each letter of commitment, 
memorandum of understanding, or agreement to participate shall include 
the organization's name and the proposed level of commitment and 
responsibilities as they relate to the proposed program. The commitment 
must be signed by an official legally able to make commitments on 
behalf of the organization.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which your program reflects a 
coordinated, community-based process of identifying needs and building 
a system to address the needs by using available HUD and other 
community resources. In evaluating this factor, HUD will consider:
    (1) The degree of coordination of your proposed project with those 
of other groups or organizations to best support and coordinate all 
activities, and the specific steps you will take to share information 
on solutions and outcomes with others. Any written agreements or 
memoranda of understanding in place must be described.
    (2) The extent to which you have developed linkages, or the 
specific steps you will take to develop linkages, to coordinate your 
activities so solutions are holistic and comprehensive. Linkages 
include linkages with other HUD, Federal, State or locally funded 
activities through meetings, information networks, planning processes, 
or other means.
    (3) The degree of coordination with housing rehabilitation, housing 
and health codes, and other related housing programs.
    (a) Describe your plan for integrating and coordinating mold and 
moisture control interventions with other housing-related activities 
(e.g., lead hazard control, rehabilitation, weatherization, removal of 
code violations, and other similar work).
    (b) Describe your plans to incorporate mold and moisture control 
interventions

[[Page 9724]]

with applicable housing codes and health regulations.
    (c) Describe your plans to generate and use public subsidies or 
other resources (such as revolving loan funds) to finance future 
interventions to prevent and control mold hazards, particularly in low- 
and very-low-income housing.
    (d) Detail the extent to which you will ensure that the needs of 
minorities and persons with disabilities will be addressed adequately 
during your intervention activities; and that housing in which mold and 
moisture problems have been addressed will still be available and 
affordable for low income minority and disabled individuals.

VI. Application Submission Requirements

(A) Applicant Information

    You should submit your application in accordance with the format 
and instructions contained in this program section of this SuperNOFA. 
The following is a checklist of required application contents:
    (1) Transmittal letter that summarizes your proposed program, 
provides the dollar amount requested, and identifies you and your 
partners in the application.
    (2) The name, mailing address, telephone number, and principal 
contact person. If you are a consortium of associates, sub-recipients, 
partners, major subcontractors, joint venture participants, or others 
contributing resources to the project, similar information shall also 
be provided for each of these entities and you must specify the lead 
entity.
    (3) Completed Forms HUD-2880, Applicant/Recipient Disclosure/Update 
Report; Certification Regarding Lobbying; and SF-LLL, Disclosure of 
Lobbying Activities, where applicable.
    (4) Standard Forms SF-424, 424A, 424B, and other certifications and 
assurances listed in the General Section of the SuperNOFA and in this 
program section of the SuperNOFA (see application kit).
    (5) A narrative statement addressing the rating factors for award. 
The narrative statement must be numbered in accordance with each factor 
for award (Factor 1 through 5). The response to the rating factors 
should not exceed a total of 30 pages.
    (6) Any attachments, appendices, references, or other relevant 
information may accompany the project description, but must not exceed 
fifteen (15) pages for your entire application.
    (7) A detailed budget with supporting cost justification for all 
budget categories of your funding request.
    (8) The resumes and position descriptions of your project director 
and program manager and up to three additional key personnel.

VII. Corrections to Deficient Applications

    The General Section to this SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    Activities assisted under this program are subject to HUD 
environmental review to the extent required under 24 CFR part 50. An 
award under the Mold and Moisture Control Program does not constitute 
approval of specific sites where activities may be carried out. 
Following award execution, HUD will perform environmental reviews for 
activities to be carried out on properties proposed by your 
organization. You may not rehabilitate, convert, repair or construct a 
property, or commit or expend program funds or non-HUD funds for 
program activities for any eligible property until you receive written 
notification from the appropriate HUD official that HUD has completed 
its environmental review and the property has been approved. The 
results of environmental reviews may require that proposed activities 
be modified or proposed sites rejected.

IX. Authority

    This program is authorized by the Fiscal Year 1999 Appropriations 
Act.

Appendix A

References

Centers for Disease Control and Prevention. Acute pulmonary 
hemorrhage/hemosiderosis among infants: Cleveland, January 1993-
November 1994. MMWR Morb. Mortal. Wkly. Rep. 1994; 43(48):881-883.
Centers for Disease Control and Prevention. Acute pulmonary 
hemorrhage among infants--Chicago, April 1992-November 1994. MMWR 
Morb. Mortal. Wkly. Rep. 1995; 44(4):67.
Centers for Disease Control and Prevention. Update: Pulmonary 
hemorrhage/hemosiderosis among infants--Cleveland, Ohio, 1993-1996. 
MMWR Morb. Mortal. Wkly. Rep. 1997; 46(2):33-35.
Croft, W.A., B.B. Jarvis and C.S. Yatawara. 1986. Airborne outbreak 
of trichothene toxicosis. Atmospheric Environment. 20: 549-552.
Etzel, R.A., E. Montana, W.G. Sorenson, G. Kullman, T.M. Allan, and 
D.G. Dearborn. 1998. Acute pulmonary hemorrhage in infants 
associated with exposure to Stachybotrys chartarum and other fungi. 
Arch. Pediatr. Adolesc. Med. 152: 757-762.
Johanning, E., R. Biagini, D. Hull, P. Morey, et al. 1996. Health 
and immunology study following exposure to toxigenic fungi 
(Stachybotrys chartarum) in a water-damaged office environment. Int. 
Arch. Occup. Environ. Health. 68:207-218.

BILLING CODE 4210-32-P

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Notices  

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    [GRAPHIC] [TIFF OMITTED] TN26FE99.029
    

BILLING CODE 4210-32-C

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

[[Page 9727]]



Funding Availability for the Demolition and Revitalization of 
Severely Distressed Public Housing (HOPE VI)

Program Overview

    Purpose of the Program. The purpose of this program is to provide 
Revitalization Grants to enable public housing agencies (PHAs) to 
improve the living environment for public housing residents of severely 
distressed public housing projects and Demolition Grants to expedite 
the demolition of obsolete and/or severely distressed public housing 
units.
    Available Funds. Approximately $583 million, as allocated in 
accordance with Section II.(A) of this program section of the 
SuperNOFA, below.
    Eligible Applicants. PHAs that own public housing units, in 
accordance with the requirements at Section III.(B) of this program 
section of the SuperNOFA, below.
    Application Deadlines. Revitalization grant applications are due on 
May 27, 1999. Demolition grant applications are due on May 6, 1999. 
(See Section V.(D)(2)(c), below, for important information regarding 
the application deadline and deficiency cure period for Demolition 
grants.)
    Match. For Revitalization grants only, 5 percent of total grant 
amount plus an additional match for Community and Supportive Services, 
as described in Section IV.(B)(4) of this program section of the 
SuperNOFA, below. No match is required for Demolition grants.

Additional Information

    If you are interested in applying for a HOPE VI grant, please 
review the following information, the General Section of this 
SuperNOFA, and the HOPE VI Application Kit.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. HUD must receive your Revitalization grant 
application at HUD Headquarters no later than 12:00 midnight Eastern 
time on May 27, 1999. HUD must receive your Demolition grant 
application at HUD Headquarters on or before 12:00 midnight Eastern 
time on May 6, 1999. See Section V.(D)(2)(c) below for important 
information regarding the application deadline and deficiency cure 
period for Demolition grants.
    Address for Submitting Applications. Send one copy of your 
completed application to HUD Headquarters, 451 Seventh Street, SW, Room 
4138, Washington, DC 20410, Attention: Elinor Bacon, Deputy Assistant 
Secretary for Public Housing Investments. In addition, send two copies 
of your completed application to your local HUD Field Office. HUD will 
determine whether your application is timely filed based on the date 
and time of receipt at HUD Headquarters, not the date and time that 
copies are received in your local Field Office.
    Mailed Applications. HUD will consider your application to be 
timely filed if it is postmarked no later than 12:00 midnight on the 
application due date and if HUD receives it at HUD Headquarters on or 
within ten days of the application due date.
    Applications Sent by Overnight/Express Mail Delivery. If you send 
your application by overnight delivery or express mail, HUD will 
consider it to be timely filed if HUD receives it at Headquarters on or 
before the application due date. HUD will also consider it to be timely 
filed if HUD does not receive it on the due date, but you can provide 
documentary evidence that you placed the application in transit with 
the overnight delivery service by no later than the application due 
date.
    Hand Carried Applications. If you wish to hand carry your 
application to HUD Headquarters, you may bring it to Room 4138 of the 
HUD Headquarters Building in Washington, DC any time between 8:45 am 
and 5:45 pm Eastern Time before or on the application due date. You may 
also hand carry your application to HUD Headquarters between 5:15 pm 
and 12:00 midnight Eastern Time by delivering it to the South Lobby of 
the HUD Headquarters Building.
    Applications Submitted to HUD Field Offices. If you wish to hand 
carry the required two copies of your application to your local HUD 
Field Office, you may do so during normal business hours before the 
application due date. On the application due date, business hours will 
be extended to 6:00 pm. (Please see the Appendix A of the General 
Section of the SuperNOFA for the hours of operation of the HUD Field 
Offices.)
    For Application Kits, Further Information and Technical Assistance. 
If you are planning to apply for a HOPE VI grant under this program 
section of the SuperNOFA, your application must conform to the 
requirements of the Fiscal Year (FY) 1999 HOPE VI application kit. The 
kit provides specific instructions, data forms to complete, 
certification forms, and other information required in every 
application. Each Revitalization application must contain no more than 
75 pages of narrative and 100 pages of attachments. HUD will mail a 
copy of the application kit to every eligible PHA. You may also obtain 
copies of application kits and any supplementary information by 
contacting the SuperNOFA Information Center at 1-800-HUD-8929. Persons 
with hearing or speech impairments may call the Center's TTY number at 
1-800-483-2209. When requesting an application kit, please refer to 
HOPE VI and provide your name, address (including zip code), and 
telephone number (including area code). The application kit also will 
be available on the Internet through the HUD web site at http://
www.hud.gov.
    For answers to your questions, you may call Mr. Robert Prescott, 
Acting Director, Office of Urban Revitalization, Department of Housing 
and Urban Development, 451 Seventh Street, SW, Room 4142, Washington, 
DC 20410; telephone (202) 708-2822 (this is not a toll free number). 
Persons with hearing or speech impairments may access this number via 
TTY by calling the Federal Information Relay Service at 1-800-877-8339.

II. Amount Allocated

------------------------------------------------------------------------
                                                          Announced in
                                        Allocation of     this program
         Type of assistance             appropriation    section of the
                                                            SuperNOFA
------------------------------------------------------------------------
Revitalization......................      $523,050,000      $523,050,000
Demolition..........................        60,000,000        60,000,000
Section 8...........................        26,950,000  ................
Technical Assistance................        15,000,000  ................
                                     -----------------------------------
    Total...........................       625,000,000       583,050,000
------------------------------------------------------------------------


[[Page 9728]]

(A) Revitalization Grants

     Approximately $523 million of the FY 1999 HOPE VI appropriation 
has been allocated to fund HOPE VI Revitalization grants and will be 
awarded in accordance with this program section of the SuperNOFA. The 
total amount you may request is limited to the sum of the amounts in 
Section (1) below or the amount in Section (2) below, whichever is 
lower.
    (1)(a) Total Development Cost. The total cost of development, 
including relocation costs, is limited to the sum of:
    (i) HUD's Total Development Costs (TDCs) up to 100 percent of HUD's 
published TDC limits for the costs of demolition and new construction, 
multiplied by the number of HOPE VI Replacement Units; and/or
    (ii) 90 percent of the TDC limits, multiplied by the number of 
public housing units after substantial rehabilitation and 
reconfiguration.
    TDCs are limited by the HUD-published TDC Cost Tables, which are 
issued for each fiscal year for the building type and bedroom 
distribution for the public housing replacement units. You may not 
request funds to replace units if you have previously received HOPE VI 
or other public housing funds to replace those same units. However, you 
may use any non-HUD funds to supplement HUD funds for any project cost. 
Your application must disclose all prior HUD grant assistance received 
for the project(s) you have targeted for revitalization.
    (b) Community and Supportive Services. You may request an amount up 
to 15 percent of the total HOPE VI grant to pay the costs of Community 
and Supportive Services. These costs are in addition to the TDC 
calculation in section II.(A)(1)(a) of this program section of the 
SuperNOFA, above.
    (c) Demolition and Site Remediation Costs of Unreplaced On-site 
Units. You may request an amount necessary for demolition and site 
remediation costs of units that will not be replaced on-site. This cost 
is in addition to the TDC calculation in section II.(A)(1)(a) of this 
program section of the SuperNOFA, above.
    (d) Extraordinary Site Costs. You may request an amount necessary 
to pay extraordinary site costs necessary to complete the project. 
These costs are in addition to the TDC calculation in section 
II.(A)(1)(a) of this program section of the SuperNOFA, above.
    (2) Total Grant Amount. (a) You may submit one or two separate 
Revitalization applications. The total amount you may request in one or 
both applications may not exceed $35 million. If you submit two 
applications, each application will be reviewed separately.
    (b) Each of the one or two applications you submit may request 
funds for only one public housing development. For the purposes of this 
program section of the SuperNOFA, the definition of one ``development'' 
may also include more than one project, as long as those projects are 
contiguous, immediately adjacent to one another, or within a quarter-
mile of each other at their closest. If you include more than one 
project in a single application, you must provide clear documentation 
that the projects are within a quarter-mile of each other.
    (3) Within the grant limitations above, you may request funds for 
as few or as many units as you wish in a single application. HUD will 
review requests for small numbers of units on an equal basis with 
requests for large numbers of units.
    (B) Demolition Grants
    Approximately $60 million of the FY 1999 HOPE VI appropriation has 
been allocated to fund HOPE VI Demolition grants and will be awarded in 
accordance with this program section of the SuperNOFA. If all of these 
funds are not needed for demolition of obsolete and/or severely 
distressed public housing, unused funds will be reallocated for HOPE VI 
Revitalization grants.
    (1) You may submit multiple applications;
    (2) You may target units in only one public housing project per 
application;
    (3) You may submit more than one application targeting units in a 
single housing project;
    (4) You may request funds for as many or as few units in an 
application as you wish, subject to the following provisions:
    (a) Per Unit Limitation. You may receive no more than:
    (i) $5,000 per vacant unit;
    (ii) $6,500 per unit occupied as of the date of HOPE VI demolition 
funding application submission. This amount includes relocation costs; 
and
    (iii) Reasonable costs for demolition of significant nondwelling 
facilities related to the demolition of dwelling units, such as heating 
plants, community buildings, or streets. These costs must be included 
in an application for funding of demolition of public housing units; 
you may not apply for them in a separate application.
    (b) Overall Limitation. The sum of all Demolition funding 
applications from a single applicant may not exceed $12.5 million, in 
accordance with the evaluation procedures provided in section V.(D) of 
this NOFA, below. It is recognized that the HOPE VI grant may not pay 
for the total costs of relocation, abatement and demolition in all 
cases, and that the PHA may have to provide additional funding from 
other sources.
    (2) You may apply for both HOPE VI Revitalization and Demolition 
funding to demolish the same units. If HUD determines that both 
applications are eligible for funding, HUD will use its discretion to 
determine whether the demolition will be funded under a Revitalization 
or a Demolition grant.
    (C) Section 8
    If necessary, HUD reserves the right to allocate up to $26,950,000 
(approximately 3,500 units) for Section 8 tenant-based assistance for 
public housing relocation or public housing replacement (including 
units associated with HOPE VI grants). If any funds allocated for 
Section 8 tenant-based assistance are not needed for such assistance, 
those funds will be reallocated for HOPE VI Revitalization grants. If 
you have already received Section 8 assistance to relocate residents 
from obsolete or severely distressed units, you may still apply for 
HOPE VI funds to physically replace those same units. If you will need 
Section 8 assistance in order to carry out the proposed revitalization, 
you must indicate the number of certificates needed in your HOPE VI 
application. HUD will award Section 8 certificates needed for HOPE VI 
sites after the HOPE VI selections have been made.
    (D) Technical Assistance. The FY 1999 appropriation allocated $15 
million to provide Technical Assistance in the planning, development, 
and implementation of the HOPE VI program.

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    (1) HOPE VI Revitalization grants enable public housing agencies 
(PHAs) to:
    (a) Improve the living environment for public housing residents of 
severely distressed public housing projects through the demolition, 
substantial rehabilitation, reconfiguration, and/or replacement of 
severely distressed units;
    (b) Revitalize the sites on which severely distressed public 
housing projects are located and contribute to the improvement of the 
surrounding neighborhood;
    (c) Lessen isolation and reduce the concentration of low-income 
families;
    (d) Build sustainable mixed-income communities; and
    (e) Provide well-coordinated, results-based community and 
supportive

[[Page 9729]]

services that directly complement housing redevelopment and that help 
residents to achieve self-sufficiency, young people to attain 
educational excellence, and the community to secure a desirable quality 
of life.
    (2) HOPE VI Demolition Grants enable PHAs to expedite the 
demolition of obsolete and/or severely distressed public housing units. 
Any subsequent new construction or revitalization of any remaining 
units must be funded from other resources.
    (B) Eligible Applicants
    An eligible applicant for any HOPE VI grant is:
    (1) Any PHA that is not designated as ``troubled'' pursuant to 
section 6(j)(2) of the United States Housing Act of 1937 (1937 Act);
    (2) Any PHA for which a private housing management agent has been 
selected, or a receiver has been appointed, pursuant to section 6(j)(3) 
of the 1937 Act; and
    (3) Any PHA that is designated as ``troubled'' pursuant to section 
6(j)(2) of the 1937 Act and that:
    (a) Was designated as troubled principally for reasons that will 
not affect its capacity to carry out the proposed revitalization or 
demolition;
    (b) Is making substantial progress toward eliminating the 
deficiencies that resulted in its troubled status; or
    (c) Has sufficiently demonstrated to HUD that it is capable of 
carrying out the proposed revitalization or demolition.

(C) Eligible Activities

    (1) Revitalization Grants. Eligible activities are those eligible 
under the Appropriations Acts for the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies, for the 
Fiscal Years 1993, 1994, 1995, 1997, 1998 and 1999; and the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996. In addition, 
eligible HOPE VI activities are those included in the 1937 Act, 
including Section 24 of the 1937 Act, as amended by Section 535 of the 
Quality Housing and Work Responsibility Act of 1998 (Pub.L. 105-276, 
112 Stat. 2461, approved October 21, 1998) (QHWRA).
    Revitalization activities using HOPE VI funds must be for severely 
distressed Public Housing projects. Accordingly, certain proposed 
activities are subject to statutory requirements applicable to public 
housing projects under the 1937 Act, other statutes, and the Annual 
Contributions Contract (ACC). Within such restrictions, HUD seeks 
innovative solutions to the long-standing problems of severely 
distressed public housing projects. You may request, for the 
revitalized development, a waiver of HUD regulations (that are not 
statutory requirements) governing rents, income eligibility, or other 
areas of public housing management that will permit you to undertake 
measures that enhance the long-term viability of a development 
revitalized under this program.
    The following is a list of specific activities that are eligible 
using HOPE VI Revitalization grant funds. Other activities may also be 
eligible with HUD approval. If HOPE VI Revitalization funds are used 
for any of the following activities, you must conduct them in 
accordance with the following program requirements unless HUD has 
provided written approval to follow other requirements.
    (a) Total or partial demolition of buildings. Section 24 of the 
1937 Act provides that severely distressed public housing demolished in 
conjunction with a revitalization plan with HOPE VI funds is not 
subject to Section 18 of the 1937 Act or regulations at 24 CFR Part 
970. Instead, if you are selected to receive a HOPE VI Revitalization 
grant, HUD will use information in your application to determine 
whether the proposed demolition can be approved. If you are not 
selected to receive a HOPE VI Revitalization grant, the information in 
your application will not be used to process a request for demolition. 
Please note that demolition is not a required element of a HOPE VI 
Revitalization application.
    (b) Disposition of property, in accordance with Section 18 of the 
1937 Act and regulations at 24 CFR part 970;
    (c) Public housing development through the acquisition of land, or 
acquisition of off-site units with or without rehabilitation to be used 
as public housing, in accordance with 24 CFR part 941;
    (d) Major rehabilitation and other physical improvements of housing 
and community facilities primarily intended to facilitate the delivery 
of self-sufficiency, economic development, or other community and 
supportive service opportunities for residents of the targeted 
development, in accordance with 24 CFR 968.112(b), (d), (e), and (g)-
(o), 24 CFR 968.130, and 24 CFR 968.135(b) and (d);
    (e) Construction of replacement rental housing, both on-site and 
off-site, and community facilities primarily intended to facilitate the 
delivery of self-sufficiency, economic development, or other supportive 
services for residents of the targeted development and off-site 
replacement housing, in accordance with 24 CFR part 941, including 
mixed-finance development in accordance with subpart F;
    (f) Homeownership activities, including: (i) Development of 
replacement homeownership units that meet the regulatory requirements 
of the Section 5(h) Program at 24 CFR part 906;
    (ii) Development of replacement homeownership units that meet the 
statutory requirements of the HOPE II program (42 U.S.C. 12871-80; Pub. 
L. 101-625, secs. 421-31; 104 Stat. 4079, 4162-72);
    (iii) Development of replacement homeownership units that meet the 
statutory requirements of the HOPE III program (42 U.S.C. 12891-98; 
Pub.L. 101-625, secs. 441-48; 104 Stat. 4079, 4172-80);
    (iv) Replacement homeownership units that are made available 
through housing opportunity programs for construction or substantial 
rehabilitation of homes meeting essentially the same eligibility 
requirements as the Nehemiah Program; and
    (v) Other appropriate replacement homeownership activities, 
including downpayment assistance for displaced residents and the 
provision of closing costs.
    (g) Management improvements;
    (h) Reasonable costs for administration, planning, and technical 
assistance, including fees and costs as specifically approved by HUD;
    (i) Well-integrated Community and Supportive Services programs 
designed to assist residents to attain educational excellence, gain 
employment, and become self-sufficient, and related support programs 
such as day care, after school activities, etc.;
    (j) Economic development activities, including the costs of 
infrastructure and site improvements associated with developing retail/
commercial facilities, but excluding hard development costs;
    (k) Leveraging other resources, including additional housing 
resources, retail supportive services, jobs, and other economic 
development uses on or near the project that will benefit future 
residents of the site; and
    (1) Relocation, conducted in accordance with 24 CFR 970.5 
(demolition) or 24 CFR 968.108 (rehabilitation), as appropriate.
    (2) Demolition Grants. The following is a list of specific 
activities that are eligible using HOPE VI Demolition grant funds. 
Other activities may also be eligible with HUD approval. If HOPE VI 
Demolition funds are used for any of the following activities, you must 
conduct them in accordance with the following program requirements 
unless HUD has

[[Page 9730]]

provided written approval to follow other requirements.
    (a) Demolition, including any required asbestos and/or lead-based 
paint abatement, of dwelling units and nondwelling facilities, in 
accordance with Section 18 of the 1937 Act and regulations at 24 CFR 
part 970;
    (b) Minimal site restoration after demolition and subsequent site 
improvements to benefit the remaining portion of the project, to 
provide project accessibility, or to make the site more saleable;
    (c) Demolition of nondwelling facilities, only where related to the 
demolition of dwelling units;
    (d) Necessary administrative costs; and
    (e) Relocation and other assistance related to the permanent 
relocation of families under the approved demolition, conducted in 
accordance with 24 CFR 970.5.

IV. Program Requirements

    In addition to the requirements listed in section II. of the 
General Section of this SuperNOFA, you must also meet the following 
requirements.

(A) Program Requirements--All HOPE VI Applications

    (1) Flood Insurance. In accordance with the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128), HUD will not approve your 
application for a grant that proposes to provide financial assistance 
for acquisition or construction (including rehabilitation) of 
properties located in an area identified by the Federal Emergency 
Management Agency (FEMA) as having special flood hazards, unless:
    (a) The community in which the area is situated is participating in 
the National Flood Insurance program (see 44 CFR parts 59 through 79), 
or less than one year has passed since FEMA notification regarding such 
hazards; and
    (b) Where the community is participating in the National Flood 
Insurance Program, flood insurance is obtained as a condition of 
execution of a Grant Agreement and approval of any subsequent 
demolition or disposition application.
    (2) Coastal Barrier Resources Act. In accordance with the Coastal 
Barrier Resources Act (16 U.S.C. 3501), HUD will not approve your grant 
application if it targets properties in the Coastal Barrier Resources 
System.
    (3) Internet Access. If you are selected for funding, you must have 
access to the Internet and provide HUD with email addresses of key 
staff and contact people.
    (4) Labor Standards. Davis-Bacon or HUD-determined wage rates apply 
to development or operation of revitalized housing to the extent 
required under Section 12 of the U.S. Housing Act of 1937. In the case 
of demolition, Davis-Bacon wage rates apply to demolition followed by 
construction on the site; HUD-determined wage rates apply to demolition 
followed only by filling in the site and establishing a lawn. Under 
Section 12, the wage rate requirements do not apply to individuals who: 
perform services for which they volunteered; do not receive 
compensation for those services or are paid expenses, reasonable 
benefits, or a nominal fee for the services; and are not otherwise 
employed in the work involved (24 CFR part 70). In addition, if other 
Federal programs are used in connection with your HOPE VI Program, 
labor standards requirements apply to the extent required by the other 
Federal programs, on portions of the project that are not subject to 
Davis-Bacon rates under the Act.
    (5) Lead-Based Paint Testing and Abatement. All property assisted 
under your HOPE VI Program is covered by the Lead-Based Paint Poisoning 
Prevention Act (24 U.S.C. 4821 et seq.) and 24 CFR part 35; 24 CFR part 
965, subpart H; and 24 CFR 968.110(k).
    (6) Building Standards. (a) All activities that include 
construction, rehabilitation, lead-based paint removal, and related 
activities must meet or exceed local building codes. New construction 
must comply with the latest HUD-adopted Model Energy Code issued by the 
Council of American Building Officials. In addition, HUD encourages you 
to set higher standards for energy and water efficiency in HOPE VI new 
construction, which can achieve utility savings of 30 to 50 percent 
with minimum extra cost. Upon request, HUD will provide technical 
assistance and training in design and financing to assist your 
authority, architects, and contractors in improving resource 
efficiency.
    (b) You are encouraged to design programs that incorporate 
sustainable construction and demolition practices, such as the 
dismantling or ``deconstruction'' of public housing units, recycling 
demolition debris, and reusing salvage materials in new construction.
    (7) Program Income. If you expect to receive program-related income 
prior to grant closeout (e.g., from sale of homeownership Replacement 
Units or the disposition of improved land), this income must be 
reflected in your HOPE VI budget and used for program purposes.
    (8) Environmental Review. (a) Under 24 CFR part 58, the responsible 
entity, as defined in 24 CFR 58.2(a)(7), must assume the environmental 
responsibilities for projects being funded by HOPE VI. If your 
organization objects to the responsible entity conducting the 
environmental review, on the basis of performance, timing or 
compatibility of objectives, HUD will review the facts and determine 
who will perform the environmental review. At any time, HUD may reject 
the use of a responsible entity to conduct the environmental review in 
a particular case on the basis of performance, timing or compatibility 
of objectives, or in accordance with 24 CFR 58.77(d)(1). If a 
responsible entity objects to performing an environmental review, or if 
HUD determines that the responsible entity should not perform the 
environmental review, HUD may designate another responsible entity to 
conduct the review or may conduct the environmental review in 
accordance with the provisions of 24 CFR part 50. After selection by 
HUD for Joint Review, you must provide any documentation to the 
responsible entity (or HUD, where applicable) that is needed to perform 
the environmental review.
    (b) If the environmental review is completed before HUD approval of 
the HOPE VI Revitalization Plan (RP) and you have submitted your 
request for release of funds (RROF), the RP approval letter will 
require any conditions, modifications, prohibitions, etc. arising from 
the environmental review.
    (c) If the environmental review is not completed and/or you have 
not submitted the RROF before HUD approval of the RP, the RP approval 
letter will require you to refrain from undertaking, or obligating or 
expending funds on, physical activities or other choice-limiting 
actions, until HUD approves your RROF and the related certification of 
the responsible entity (or HUD has completed the environmental review). 
The RP approval letter will also tell you that the approved RP may be 
modified on the basis of the results of the environmental review.

(B) Program Requirements--Revitalization Applications

    (l) Severe Distress. The targeted public housing project or 
building in a project must be severely distressed. The term ``severely 
distressed public housing'' means a public housing project or building 
in a project that fits the description of either all of the elements in 
paragraph (a) of this section, or is described by paragraph (b) of this 
section, as follows:

[[Page 9731]]

    (a)(i) The public housing requires major redesign, reconstruction 
or redevelopment, or partial or total demolition, to correct serious 
deficiencies in the original design (including inappropriately high 
population density), deferred maintenance, physical deterioration or 
obsolescence of major systems, and other deficiencies in the physical 
plant of the project;
    (ii) The condition of the public housing project is a significant 
contributing factor to the physical decline of and disinvestment by 
public and private entities in the surrounding neighborhood;
    (iii)(1) The public housing is occupied predominantly by families 
who are very low-income families with children, are unemployed, and are 
dependent on various forms of public assistance; or
    (2) The public housing has high rates of vandalism and criminal 
activity (including drug-related criminal activity) in comparison to 
other housing in the area;
    (iv) The public housing cannot be revitalized with funds from other 
programs because the costs are much greater than the amounts that are 
available;
    (v) If only individual buildings of the project are targeted for 
revitalization, they must be sufficiently separated from the remainder 
of the project to make use of the building feasible; or
    (b) Public housing that has been legally vacated or demolished is 
deemed severely distressed if it met the description in paragraph (a) 
of this section, above, and has not yet been replaced other than with 
Section 8 certificates.
    (c) To demonstrate that the targeted public housing project, or 
buildings in a project, meets the severe distress requirement you must:
    (i) Sign a certification, included in the HOPE VI Revitalization 
Certifications as provided in Appendix A below, that the public housing 
targeted in the application meets the definition of severe distress 
provided in paragraphs (a) or (b) of this section, above; and
    (ii) Include in your application a certification by an independent 
engineer, signed on or before the application deadline date, that the 
project meets the severe distress requirement in paragraph (a)(1) of 
this section, above.
    (2) Public Meetings. (a) You must conduct at least one training 
session for residents on the HOPE VI development process and at least 
three public meetings with residents and community members to involve 
them in the process of planning the revitalization and preparing the 
application. At least one meeting must be held after the publication 
date of this HOPE VI NOFA.
    (b) You must cover the following issues in the public meetings:
    (i) The HOPE VI planning and implementation process;
    (ii) The proposed physical plan, including site and unit design;
    (iii) The extent of proposed demolition;
    (iv) Community and supportive services;
    (v) Relocation issues; and
    (vi) Other proposed revitalization activities.
    (c) To demonstrate that you have conducted the required public 
meetings, you must include the following evidence of each meeting in 
your application:
    (i) The notices announcing the meetings. In addition to other means 
of notification, at least one notice for each meeting must be placed in 
a commercial newspaper or journal that serves both the public housing 
project and the broader community;
    (ii) A copy of the meeting sign-in sheets; and
    (iii) A signed and notarized copy of the meeting minutes, 
describing in detail the resident training and/or discussion regarding 
the proposed plan.
    (d) Submission of the documentation required of the meetings is a 
curable item and is not rated. If you fail to properly document that 
you have conducted all of the required meetings, after being provided 
with the opportunity to correct any deficiencies in accordance with 
section V of the General Section of this SuperNOFA, your application 
cannot be considered for funding. You may not conduct a required 
meeting after the application due date in order to cure a deficiency 
identified by HUD.
    (3) Community and Supportive Services.
    (a) Each HOPE VI Revitalization application must propose a program 
of Community and Supportive Services that meets the needs of residents, 
and self-sufficiency programs that are designed to promote upward 
mobility, independence, and improved quality of life for residents of 
the targeted public housing development.
    (b) Community and Supportive Services must be designed to serve 
existing residents of the severely distressed project, residents who 
have been displaced by revitalization activities, and new residents of 
the revitalized units.
    (c) Community and Supportive Services may also be provided to non-
public housing residents, as long as the primary users of the services 
are residents as described in paragraph (b) of this section, above.
    (d) Community and Supportive Service Programs may include, but are 
not limited to:
    (i) Substance/alcohol abuse treatment and counseling;
    (ii) Health care services;
    (iii) Domestic violence prevention;
    (iv) Transportation as necessary to enable any participating family 
member to receive available services or to commute to his or her place 
of employment;
    (v) On-site credit unions;
    (vi) ``Life skills'' courses on topics such as parenting, family 
budgeting, consumer education;
    (vii) Child care that provides sufficient hours of operation and 
serves appropriate ages as needed to facilitate parental access to 
education and job opportunities and that stimulates children to learn 
and be responsible citizens;
    (viii) Employment training and counseling, such as the Step-Up and 
Youthbuild Programs, that includes job training, preparation, 
counseling, development, placement, and follow-up assistance after job 
placement;
    (ix) Motivational and self-empowerment training;
    (x) Computer skills training;
    (xi) Education, including remedial education, literacy training, 
completion of secondary or post-secondary education, assistance in the 
attainment of certificates of high school equivalency, and the 
integration of modern computer technology into the education program;
    (xii) Programs that promote learning for children from infancy, 
created with strong partnerships with public and private educational 
institutions;
    (xiii) Mentoring for children, non-literate adults, potential 
entrepreneurs, and English as a Second Language (ESL), as needed;
    (xiv) Job placements for residents who complete adult education and 
job training programs, as provided through partnerships with local 
businesses;
    (xv) Services and programs provided through results-oriented 
partnerships with Empowerment Zones and Enterprise Community Boards and 
economic development agencies and non-profit organizations; and
    (xvi) Business development training, with the goal of establishing 
resident-owned businesses.
    (4) Match.
    (a) Overall Match. The HOPE VI Revitalization Applicant 
Certifications (Appendix A to this NOFA, below) include a certification 
that if you are

[[Page 9732]]

selected for funding, you will provide resources other than HOPE VI 
funds in an amount that is at least 5 percent of the HOPE VI grant 
amount.
    (b) Additional Community and Supportive Services Match. In addition 
to the match requirement in paragraph (a) of this section, above, if 
you use more than 5 percent of the HOPE VI grant for Community and 
Supportive Services programs described in section IV.(B)(3) of this 
program section of the SuperNOFA, above, you must certify that you will 
provide resources other than HOPE VI funds in an amount that is equal 
to the amount used over 5 percent.
    (c) Matching Funds. Your matching funds may include amounts from 
other Federal sources, any State or local government sources, any 
private contributions, the value of any donated material or building, 
the value of any lease on a building, the value of the time and 
services contributed by volunteers, and the value of any other in-kind 
services or administrative costs provided. Active involvement of the 
city government in your HOPE VI plan is key to the success of the 
program. Providing a strong city match is one way for a city to 
demonstrate its commitment to the proposed development.
    (5) Replacement Units.
    (a) Rental units will be deemed Replacement Units and qualify for 
operating subsidy only if they are to be placed under Annual 
Contributions Contract and operated as Public Housing.
    (b) Homeownership units will be deemed Replacement Units only if 
they meet the requirements listed in Section III(C)(1)(f) of this 
program section of the SuperNOFA, above.
    (c) HOPE VI funds may not directly support mixed-finance units, 
including tax credit units, which are not themselves to be placed under 
ACC or to be sold as homeownership units as specified above.
    (6) Timeliness of Construction. If selected, you will be held to 
strict schedules and performance measures. If you fail to obligate 
construction funds within the timeframes provided below, HUD may 
withdraw grant funds. HUD will take into consideration those delays 
caused by factors beyond your control when enforcing these schedules.
    (a) You must enter into a binding General Contractor (GC) Contract 
within 18 months from the date of HUD's approval of the Revitalization 
Plan (RP). In no event may this time period exceed 24 months from the 
date the Grant Agreement is executed.
    (b) You must complete construction under the GC Contract within 48 
months from the date of HUD's approval of the RP. In no event may the 
time period for completion exceed 54 months from the date the Grant 
Agreement is executed.

(C) Program Requirements--Demolition Applications

    (1) Eligible Units. Public housing units to be demolished with HOPE 
VI Demolition grant funds must meet one of the following criteria:
    (a) The units must be targeted in an approved or submitted 
Conversion Plan (i.e., a plan for removal of the obsolete and/or 
severely distressed project from the public housing inventory in 
accordance with the requirements at 24 CFR 971.7(b)). To meet this 
requirement, you must have submitted a Conversion Plan to HUD on or 
before the HOPE VI Demolition funding application due date. You must 
meet the requirements of 24 CFR part 971 to meet this requirement; or
    (b) The units must have been targeted in a HOPE VI Demolition 
funding application that you submitted in FY 1998 but that HUD did not 
fund solely because of a lack of funds; or
    (c) The units must be approved by HUD for demolition in accordance 
with 24 CFR part 970 on or before the application due date, but the 
approved units have not yet been demolished. The demolition application 
must be approved:
    (i) If you have merely submitted a demolition application, your 
HOPE VI application does not meet this requirement.
    (ii) If HUD has approved your demolition application but HUD later 
rescinded the approval at your request, your HOPE VI application does 
not meet this requirement.
    (2) Previous Demolition. You must not have an executed demolition 
contract for or have previously demolished any of the targeted units.
    (3) Previous Funding. You may not submit a HOPE VI Demolition 
application for units that have been previously funded for demolition 
with HOPE VI funds. HUD will determine whether the units have been 
previously funded by looking at the most recent HUD-approved budget for 
any HOPE VI Revitalization or Demolition grant for the same 
development. If that grant budget shows that HOPE VI funds have been 
budgeted for demolition of the units you have targeted in your HOPE VI 
Demolition application, even if you have subsequently made an internal 
decision not to fund the demolition with HOPE VI funds, your HOPE VI 
Demolition application will not be considered for funding.
    (4) Timeliness of Demolition. You must procure a demolition 
contractor within six months from the date of ACC Amendment execution, 
and complete the demolition within two years from the date of ACC 
Amendment execution.

V. Application Selection Process

(A) Revitalization Threshold Criteria

    In addition to any applicable threshold requirements listed in the 
General Section of this SuperNOFA, your application must meet the 
following threshold requirements to be considered for funding.
    (1) Eligible Applicant. You must be an eligible Public Housing 
Agency, as defined in Section III.(B) of this program section of the 
SuperNOFA, above. If HUD has designated your housing authority as 
troubled pursuant to section 6(j)(2) of the 1937 Act, HUD's Troubled 
Agency Recovery Center will use documents and information available to 
it to determine whether you meet the eligibility criteria in this 
program section of the SuperNOFA.
    (2) Severe Distress. The targeted public housing project, or 
buildings in a project must be severely distressed, as defined in 
section IV.(B)(1) of this program section of the SuperNOFA, above.
    (3) Public Meetings. You must conduct at least one training session 
and at least three public meetings in accordance with section IV.(B)(2) 
of this program section of the SuperNOFA, above.

(B) Revitalization Application Evaluation

    HUD's selection process is designed to ensure that HOPE VI 
Revitalization grants are awarded to PHAs with the most meritorious 
applications.
    (1) Threshold and Completeness Review. HUD will screen each 
application to determine if it is complete and meets the Threshold 
Criteria in Section V.(A) of this program section of the SuperNOFA, 
above. If necessary, HUD will contact you to provide missing 
information, in accordance with the provisions of section V. of the 
General Section of this SuperNOFA.
    (2) Preliminary Rating and Ranking. (a) HUD will preliminarily 
review, rate and rank each eligible application on the basis of the 
rating factors described in Section V.(C) of this program section of 
the SuperNOFA, below.
    (b) After preliminary review, the following applications will be 
deemed ``competitive:''
    (i) Applications with a preliminary score above a base score that

[[Page 9733]]

encompasses all applications that represent approximately twice the 
amount of funds available, and
    (ii) Applications that propose revitalization of public housing 
that was targeted in HOPE VI Revitalization applications submitted to 
HUD in both the FY 1997 and 1998 HOPE VI Revitalization competitions 
but were not selected for funding.
    (3) Final Panel Review. (a) A Final Review Panel will:
    (i) Assess each competitive application;
    (ii) Assign the final scores; and
    (iii) Recommend for funding the most highly-rated eligible 
applications up to the amount of available funding.
    (b) If two or more applications have the same score and there are 
insufficient funds to select all of them, HUD will select for funding 
the application(s) with the highest score for Rating Factor 3, 
Soundness of Approach. If a tie still remains, HUD will select for 
funding the application(s) with the highest score for the Capacity 
rating factor. HUD will select further tied applications on the basis 
of their scores in the Need, Leveraging Resources, and 
Comprehensiveness and Coordination rating factors, in that order.
    (c) HUD reserves the right to make adjustments to funding in 
accordance with Section III.(E) of the General Section of this 
SuperNOFA.
    (d) HUD may not give competitive advantage to applications that 
propose to use HOPE VI grant funds to pay judgments or undertake HOPE 
VI revitalization activities in order to settle litigation.

(C) Revitalization Application Rating Factors. 

    The following are the factors HUD will use to rate and rank your 
HOPE VI Revitalization application and the maximum points for each 
factor. The maximum number of points for each Revitalization 
application is 102, which includes two Empowerment Zone/Enterprise 
Community (EZ/EC) bonus points, in accordance with section III.(C)(1) 
of the General Section of this SuperNOFA.
Rating Factor 1: Capacity (20 Points Total)
    This factor measures the capability and record of the applicant PHA 
or any alternative entity you choose to serve as your representative 
for managing large-scale redevelopment or substantial rehabilitation 
projects and administering Community and Supportive Services and 
management improvements. To ensure that revitalization efforts will 
take place without delays due to problems in administration and 
management, HUD will award the most points to applications that 
demonstrate the highest degree of capacity to implement revitalization 
in a timely manner upon grant award.
    If you are selected for funding, HUD may require you to use an 
outside entity as directed by HUD to carry out the revitalization 
activities. HUD does not require you to select a developer and/or 
Program Manager, if any, prior to submission of your application, 
although you may choose to do so. Rather, you must demonstrate (1) your 
current capacity to manage a large scale redevelopment and/or 
substantial rehabilitation project, or (2) your ability to identify 
needs in your current staffing and fill such gaps in order to 
successfully implement your proposed program, and/or (3) your proposed 
method for securing a program manager, and/or development partner to 
implement your plan. The rating of the ``applicant'' or the 
``applicant's organization and staff,'' unless otherwise specified, 
will include any sub-contractors, consultants, subrecipients, and 
members of consortia that are firmly committed to the project.
    HUD will evaluate the information you provide in your application 
when rating subfactors (1)-(3) below.
    (1) Revitalization Capacity and Experience: 7 Points. To receive 
maximum points, you and/or your proposed partners, including the 
overall proposed development director and staff of the PHA, the 
developer (if any), program manager (if any), consultants, and 
contractors, must convincingly demonstrate your team's knowledge and 
recent, successful experience in planning, implementing, and managing 
large scale revitalization activities as described in the first two 
paragraphs above, and meeting construction timetables.
    (2) Community and Supportive Services Experience: 5 Points. To 
receive maximum points, you and/or your proposed partners, including 
the overall proposed development director and staff of the PHA, the 
developer (if any), program manager (if any), consultants, and 
contractors, must convincingly demonstrate your team's knowledge and 
recent, successful experience in planning, implementing, and managing 
the Community and Supportive Service Programs proposed in your 
application.
    (3) Property Management Experience: 5 Points. To receive maximum 
points, you and/or your proposed partners, including the overall 
proposed development director and staff of the PHA, the developer (if 
any), program manager (if any), consultants, and contractors, must 
convincingly demonstrate your team's knowledge and recent, successful 
experience in property management of public housing. You must 
thoroughly evaluate the obstacles, if any, that previously prevented 
good management, as well as other problems that contributed to the 
severe distress of the targeted project, and develop a new management 
plan that will protect against such obstacles and problems in the 
future and will improve the efficiency and economy of management.
    (4) Obligation of Modernization Funds: 3 Points. To receive maximum 
points, you must have obligated at least 90 percent of your FY 1997 and 
prior year Modernization (e.g., Comprehensive Improvement Assistance 
Program or Comprehensive Grant Program) amounts by the HOPE VI 
application submission date. HUD will use the LOCCS disbursement system 
as of the application due date to verify your obligation rate.
Rating Factor 2: Need (20 Points Total)
    This factor addresses the extent to which you have demonstrated 
that the targeted public housing project, or portion of the project, is 
severely distressed.
    To be considered for funding, your application must earn at least 
12 of the 14 points available for elements (1)-(4) of this rating 
factor, and your application must earn all 5 points for element (1), 
Physical Distress.
    For all elements under this factor, HUD will consider the extent to 
which the information you provide is documented by objective, 
measurable indicators.
    In rating this factor, HUD will consider:
    (1) Physical Distress: 5 Points. To receive maximum points, the 
targeted project or portion of the project must be severely distressed 
as defined in Section IV.(B)(1) of this SuperNOFA, above. If a targeted 
site has been demolished or approved by HUD for demolition (including 
sites approved for demolition under 24 CFR Part 970 (demolition) and 24 
CFR Part 971 (Mandatory Conversion)) on or before the HOPE VI 
application due date, your application will receive full points for 
this subfactor. Indications of physical distress may include:
    (a) Major structural deficiencies, including settlement, leaking 
roofs, electrical systems not meeting code, high levels of lead based 
paint, high levels of deferred maintenance, and

[[Page 9734]]

units that do not meet Housing Quality Standards;
    (b) Major site deficiencies, including lack of reliable and 
efficient heat and hot water, poor soil conditions, inadequate 
drainage, deteriorated laterals and sewers, and inappropriate 
topography;
    (c) Design deficiencies, including inappropriately high population 
density, isolation, indefensible space, inaccessibility for persons 
with disabilities with regard to individual units, entrance ways, and/
or common areas;
    (d) Environmental conditions that make the current site or a 
portion of the site and its housing structures unsuitable for 
residential use.
    (2) Impact on the Neighborhood: 5 Points. To receive maximum 
points, the public housing must be a significant current or potential 
contributing factor to the physical decline of and disinvestment by 
public and private entities in the surrounding neighborhood. If the 
surrounding neighborhood is not currently distressed, you must 
demonstrate that the targeted project is causing deterioration in the 
neighborhood which will become worse if the project remains in its 
current condition and that its revitalization would have a positive 
effect on the neighborhood. It is critical to show concretely how the 
public housing revitalization through HOPE VI will spur reinvestment in 
the surrounding community and/or how the redevelopment will positively 
impact and support the surrounding community. You should include a 
careful strategy for comprehensive revitalization with housing 
redevelopment as the impetus.
    (3) Demographic Distress: 3 Points. To receive maximum points, the 
public housing must:
    (a) Be occupied predominantly by families who are very low-income 
families with children, are unemployed and dependent on various forms 
of public assistance; or
    (b) Have high rates of vandalism and criminal activity (including 
drug-related criminal activity) in comparison to other housing in the 
area.
    (4) Need for Funding: 2 Points. To receive maximum points, the 
public housing cannot be revitalized with funds from other programs 
because the costs are much greater than available funds. Indications 
that you have inadequate funds are:
    (a) If you receive Comprehensive Grant Program (CGP) funds and you 
will use 50 percent or more of your CGP funds for one year to fund a 
combination of emergency needs and critical needs at other public 
housing projects. A critical need is defined as a modernization need 
that is a threat to health and safety of residents but that does not 
qualify as an emergency since there is no immediate threat to resident 
health or safety. An example of a critical need is the repair of roofs 
and plumbing in cases where failure to repair the problem would result 
in a significant increase in the expenditure of funds in the future.
    (b) If you receive CIAP funds and you do not have adequate leftover 
CIAP funds (i.e., funds remaining from previous modernization programs 
that are subject to reprogramming after completion of all approved work 
items in the program) to perform the revitalization activities without 
affecting current emergency or critical needs.
    (5) Need for Affordable Housing in the Community: 2 Points. To 
receive maximum points, there must be a need for affordable housing in 
the community, and there must be an inadequate supply of other housing 
available and affordable to accommodate families receiving tenant-based 
assistance under Section 8. HUD will make this determination based on 
your analysis of the need for affordable housing in the community on 
the basis of the rental apartment listings in a newspaper of general 
circulation in the community over the most recent complete month prior 
to the HOPE VI application deadline, supplemented by additional 
relevant data, if any.
    (6) Documentation of Need: 3 Points. To receive maximum points, you 
must document the level of need for your proposed activities and the 
urgency in meeting the need with statistics and analyses contained in a 
data source(s) that is sound and reliable. If your community's 
Consolidated Plan and Analysis of Impediments to Fair Housing Choice 
identify the level of the problem and the urgency in meeting the need, 
you must include references to these documents in your response in 
order to receive maximum points. If these documents are not applicable 
to your jurisdiction or do not address the level of problem and the 
urgency in meeting the need, specifically state as such.
    If your proposed activities are not covered under the scope of the 
Consolidated Plan and Analysis of Impediments to Fair Housing Choice, 
explain why they are not covered and use other sound data sources to 
identify the level of need and the urgency in meeting the need. Types 
of other sources include, but are not limited to, Census reports, 
Continuum of Care gaps analysis, law enforcement agency crime reports, 
Public Housing Authorities' Five Year Comprehensive Plan, and other 
sound and reliable sources.
Rating Factor 3: Soundness of Approach (40 Points Total)
    This factor addresses the quality of your design and planning and 
the cost-effectiveness of your proposed revitalization activities; your 
plan's appropriateness in the context of the broader community; the 
degree to which housing and non-housing aspects of your strategy are 
integrated and well-segmented; how your plan fits into needs of the 
local housing market; and the likelihood that a HOPE VI grant will 
result in a revitalized site that will enhance the neighborhood in 
which the project is located and enhance economic opportunities for 
residents. HUD will award full points to applications that demonstrate 
a clear relationship between the proposed activities, community assets 
and needs, and the purpose of HOPE VI funding.
    (1) Vision: 5 Points. To receive maximum points, you must present 
the most innovative physical, social, and economic development approach 
possible given your local conditions, constraints, and opportunities. 
HUD will evaluate your Executive Summary to make this determination.
    (2) Feasibility: 4 Points Total.
    (a) Market. 1 Point. To receive this point there must be a 
demonstrated considerable market for the revitalized and/or replacement 
units of the type and size proposed. HUD will use a preliminary market 
assessment letter prepared by an independent, third party, recognized 
market resource firm or professional to make this determination.
    (b) Development Costs. 2 Points. To receive maximum points, you 
must show that:
    (i) Hard costs are comparable to industry standards for the kind of 
construction to be performed in the proposed geographic area;
    (ii) Soft costs (developers' fees, PHA administration costs, legal 
fees, program manager's fees, consultants' fees, etc.) are reasonable, 
comparable to industry standards, and justified. HUD is particularly 
concerned that soft costs be minimized and will review carefully the 
proposed soft cost structure (i.e., is your reliance on outside 
entities at an appropriate level given the scope of your project and 
your in-house capacity), total soft costs as a percentage of overall 
development costs, and any innovative means you propose to keep such 
costs at a minimum so that as many HOPE VI resources as possible

[[Page 9735]]

can go into hard development and transforming the lives of the 
residents;
    (iii) Costs are realistic and developed through the use of 
technically competent methodologies; and
    (iv) Cost estimates represent a cost-effective plan for designing, 
organizing and carrying out your proposed activities.
    (c) Coherence and Consistency. 1 Point. To receive this point, the 
information and strategies described in the application must be 
coherent and internally consistent, particularly the data provided for 
types and numbers of units, budgets and other financial estimates, and 
other numerical information. It is critical that you carefully review 
all numbers for unit mix, costs, etc. to make sure that all numbers are 
consistent throughout the application. HUD will make this determination 
based on your entire application.
    (3) Lessen Concentration: 9 Points Total. The activities you 
propose must lessen concentration of low-income households, create 
opportunities for desegregation, and offer viable housing choices.
    (a) Physical Plan and Design. 6 Points. To receive maximum points, 
you must show that:
    (i) The physical plan and design of the proposed on-site housing 
will significantly reduce the isolation of low-income residents and/or 
significantly promote mixed-income communities in well-functioning 
neighborhoods;
    (ii) Any plans for off-site housing will lessen concentration of 
low-income residents and create opportunities for desegregation by 
actively ensuring that locations of housing will not be in 
neighborhoods with high levels of poverty and/or high concentrations of 
minorities. (You do not have to have selected the precise location of 
off-site units in your application to receive full points for this 
element.);
    (iii) For both on-site and any off-site units, the plan will 
increase access to municipal services, jobs, mentoring opportunities, 
transportation, and educational facilities; i.e., the physical plan and 
services strategy are integrated;
    (iv) Proposed new units and buildings are designed in a creative 
way that ensures that they blend into and enrich the surrounding 
neighborhood. Design elements and amenities present in houses in the 
broader community are incorporated into the revitalized homes and will 
appeal to the market segments for which they are intended.
    (b) Section 8. 3 Points. To receive maximum points, you must 
propose to provide assistance to residents of the targeted development 
receiving Section 8 certificates and vouchers with relocation 
assistance and smooth the transition from public to private housing for 
relocatees and members of their new communities. Such activities 
include:
    (i) Helping Section 8 assistance holders find housing in non-
poverty areas;
    (ii) Conducting programs designed to prepare residents for the 
transition to private rental housing;
    (iii) Involving faith-based, non-profit and/or other institutions 
and/or individual members of the community that relocatees choose to 
move into, in order to ease the transition and minimize the impact on 
the neighborhood. HUD will view favorably innovative programs such as 
community mentors, support groups, and the like;
    (iv) Tracking families receiving Section 8 assistance;
    (v) Providing Community and Supportive Service program support to 
Section 8 relocatees to achieve self-sufficiency;
    (vi) Offering eligible residents who have been given Section 8 
relocation assistance as a result of HOPE VI revitalization 
opportunities to return to the revitalized units.
    (4) Community and Supportive Services: 5 Points
    This factor evaluates the quality of your proposed Community and 
Supportive Services Programs, as required and described in Section 
IV.(B)(3) of this program section of the SuperNOFA, above, and gauges 
the probability that the Community and Supportive Services Programs you 
propose will result in ``living wage'' jobs, economic development, and 
educational advancements which are quantifiable and long-lasting. You 
are encouraged to be innovative and to create results-based programs 
which break new ground and can serve as national models.
    You must implement public housing revitalization in tandem with the 
principles of welfare reform, self-sufficiency, and educational 
achievement. Not only must the physical environment meet the needs of 
residents, but the social environment must encourage and enable low-
income residents to achieve long-term self-sufficiency, particularly 
for persons enrolled in welfare-to-work programs. To that end, it is 
crucial that local welfare agencies are part of your HOPE VI 
partnership. Many HOPE VI residents are directly affected by Temporary 
Assistance to Needy Families (TANF), making these self-sufficiency 
efforts critical to their success. You must design your Community and 
Supportive Services Programs not only for residents remaining on-site, 
but also for residents who have relocated to other PHA units or to 
Section 8 housing, and for new residents of the revitalized units.
    To receive maximum points, your proposed Community and Supportive 
Services Programs must:
    (a) Identify objectives that are results-oriented, with measurable 
goals and outcomes that will result in ``living wage'' jobs and 
educational advancements;
    (b) Demonstrate consistency with state and local welfare reform 
requirements and goals;
    (c) Be well integrated with the development process, both in terms 
of timing and the provision of facilities to house on-site service 
programs;
    (d) Be of an appropriate scale, type, and variety of services to 
meet the needs of residents remaining on-site, residents who have 
relocated to other PHA units or Section 8 housing, and new residents of 
the revitalized units;
    (e) Demonstrate an effective use of technology;
    (f) Incorporate the enforcement of Section 3, both in the area of 
hiring residents from the HOPE VI site and in contracting with Section 
3 firms;
    (g) Be developed in response to a rigorous resident needs 
identification process and directly respond to the identified needs;
    (h) Be coordinated with the efforts of other service providers and 
agencies in your locality; and
    (i) Be sustainable after the grant term has expired.
    (5) Evaluation: 2 Points
    To receive maximum points, you must propose to work with local 
universities and other institutions of learning, foundations, and/or 
others to evaluate the performance and impact of your proposed HOPE VI 
revitalization. Where possible, HUD encourages you to form partnerships 
with Historically Black Colleges and Universities (HBCUs) and Hispanic-
Serving Institutions (HBIs), Community Outreach Partnership Centers 
(COPCs), others in HUD's University Partnerships Program. Areas for 
evaluation might include such issues as:
    (a) The impact of your HOPE VI effort on the lives of the 
residents;
    (b) The nature and extent of economic development generated;
    (c) The effect of the revitalization effort on surrounding 
communities, including spillover revitalization activities, property 
values, etc.;
    (d) Your success at integrating physical and non-physical 
(Services) aspects of your strategy.
    (6) Resident and Community Outreach and Involvement: 5 Points

[[Page 9736]]

    In addition to the Threshold requirement for public meetings 
provided in Section IV.(B)(2) of this program section of the SuperNOFA, 
above, this rating subfactor evaluates the nature, extent, and quality 
of the resident and community outreach and involvement you have done by 
the time your application is submitted, as well as your plans for 
continued and/or additional outreach and involvement. HUD will evaluate 
your efforts to include affected residents and members of the 
surrounding community in the planning and development of your 
application.
    To receive maximum points, you must demonstrate that you have:
    (a) Communicated regularly with affected residents and members of 
the surrounding community about your application and that you have:
    (i) Included all interested parties, especially affected residents 
and members of the surrounding community, in the development of your 
application;
    (ii) Developed specific plans for continued or different 
involvement and participation in the planning and implementation of 
revitalization activities if your application is successful;
    (iii) Scheduled informational and planning meetings with affected 
residents and other interested parties during the development of your 
application at frequent and convenient times; and
    (iv) Announced meetings in ways that are designed to generate the 
most participation. Methods of announcing upcoming meetings include, 
but are not limited to:
    (1) Publishing notices of meetings in newspapers of local 
distribution;
    (2) Hand distributing flyers to residences and locations likely to 
attract notice;
    (3) Posting meeting information in adequate time to allow 
participants to plan to attend;
    (4) Addressing the language needs of affected residents;
    (5) Making meetings and information available to persons with 
disabilities.
    (b) Communicated effectively with affected residents and members of 
the surrounding community and that you have:
    (i) Provided training and technical assistance on the HOPE VI 
development process and general principles of development to affected 
residents to enable them to participate meaningfully in the development 
of your application, and developed plans to provide further training 
and technical assistance if your application is successful;
    (ii) Provided information to affected residents and other 
interested parties about your planned revitalization;
    (iii) Provided affected residents with substantive opportunities to 
participate in the development of your HOPE VI plan;
    (iv) Incorporated input and recommendations of interested parties, 
especially affected residents, into your application;
    (v) Generated support for your application among interested 
parties;
    (vi) Recognized and addressed dissenting viewpoints among affected 
residents and other interested parties. Your application will not lose 
points if there has been opposition to your plan, but may lose points 
if you do not demonstrate that any such opposition has been addressed; 
and
    (vii) Provided status reports on the development of your 
application.
    (7) Operation and Management Principles and Policies: 5 Points.
    (a) Self Sufficiency and Economic Diversity. To receive maximum 
points, you must propose operation and management principles and 
policies to be applied to on-site public housing and any on-site or 
adjacent assisted housing that will encourage residents to move in, 
move up, and move on. Such principles must:
    (i) Complement self-sufficiency programs and result in a mix of 
residents in the revitalized development who have a range of incomes, 
including substantial numbers of working residents;
    (ii) Reward work and promote family stability by promoting positive 
incentives such as income disregards and ceiling rents;
    (iii) Promote economic and demographic diversity by instituting a 
system of local preferences; and
    (iv) Encourage self-sufficiency by including lease requirements 
that promote resident involvement in the tenants association, community 
service, self-sufficiency, and transition from public housing.
    (b) Safety and Security. To receive maximum points, you must 
demonstrate that your proposed operation and management principles and 
policies will provide greater safety and security by:
    (i) Instituting tough screening requirements;
    (ii) Enforcing tough lease and eviction provisions;
    (iii) Enhancing on-going efforts to eliminate drugs and crime from 
neighborhoods through collaborative efforts with local law enforcement 
agencies and local United States Attorneys and program policy efforts 
such as ``One Strike and You're Out,'' the ``Officer Next Door'' 
initiative, the Department of Justice ``Weed and Seed'' programs, or 
HUD's ``Operation Safe Home'' and Drug Elimination programs;
    (iv) Improving the safety and security of residents through the 
implementation of defensible space principles, anti-crime measures, and 
the installation of physical security systems such as surveillance 
equipment, control engineering systems, etc.;
    (v) Improving the safety of children by promoting the concept of 
healthy homes. Healthy homes activities are described in Section VI(D) 
of the General Section of this SuperNOFA.
    (8) Affirmatively Furthering Fair Housing: 5 Points. To receive 
maximum points, you must affirmatively further fair housing through the 
physical design of the revitalized units, the location of new units, 
and marketing of housing that will encourage diversity. You are 
encouraged to work with local advocacy groups which represent 
individuals with disabilities, the elderly, and other special needs 
populations to further these goals.
    (a) Accessibility. (i) Accessibility Requirements. The design of 
your proposed new construction and/or rehabilitation of housing must 
conform to the civil rights statutes and regulations required in 
Section II.(B) of the General Section of this SuperNOFA.
    (ii) Accessibility Priorities. HUD encourages you to promote 
greater opportunities for housing choice by implementing the following 
accessibility activities:
    (1) Make at least 5 percent of for-sale units accessible to 
individuals with mobility disabilities and 2 percent of for-sale units 
accessible to individuals who have visual or hearing disabilities;
    (2) Provide one-bedroom accessible rental units for single 
individuals with disabilities so that they too can live in the 
revitalized community;
    (3) Implement innovative designs and room configurations, 
particularly for homeownership housing, which are both accessible to 
disabled residents and marketable to non-disabled households;
    (4) Provide for accessibility modifications, where necessary, to 
Section 8 units of residents who have been relocated out of the 
targeted project due to revitalization activities.
    (iii) Visitability. HUD encourages you to meet the visitability 
standards adopted by HUD that apply to units not otherwise covered by 
the accessibility requirements. The elements of visitability are 
described in Section VI.(C) of the General Section of this

[[Page 9737]]

SuperNOFA and in the HOPE VI Application Kit Glossary.
    (iv) Adaptability. HUD encourages you to meet the adaptability 
standards adopted by HUD at 24 CFR 8.3 that apply to those units not 
otherwise covered by the accessibility requirements. The elements of 
adaptability are included in the HOPE VI Application Kit Glossary.
    (b) Diversity. To receive maximum points, program activities must 
aid a broad diversity of eligible residents, including the elderly, the 
disabled, etc. HUD will also evaluate your efforts to increase 
community awareness in a culturally sensitive manner through education 
and outreach, as applicable. Describe specific steps to address the 
elimination of impediments to fair housing that were identified in your 
jurisdiction's Analysis of Impediments to Fair Housing Choice, remedy 
discrimination in housing, or promote fair housing rights and fair 
housing choice. Your marketing and outreach activities should be 
targeted to all segments of the population on a nondiscriminatory 
basis, promote housing choice and opportunity throughout your 
jurisdiction, and contribute to the deconcentration of minority and 
low-income neighborhoods.
Rating Factor 4: Leveraging Resources (10 Points Total)
    In accordance with Section IV(B)(4) of this program section of the 
SuperNOFA, above, all HOPE VI Revitalization grant funds are subject to 
a matching requirement. By signing the HOPE VI Revitalization Applicant 
Certifications (Appendix A to this NOFA, below), you are certifying 
that, if selected, you will provide matching funds which can be 
combined with HUD funds to carry out revitalization activities, 
including Community and Supportive Services Programs. Although firm 
commitments for these matching resources are not required in your 
application, if funded you will be required to show evidence of 
matching resources through your quarterly reports as your project 
proceeds.
    Although you will provide evidence of matching resources during the 
course of the grant term, you must provide evidence of any currently-
available funds in order to earn points under this rating factor. Your 
application will be rated based on the extent to which you have secured 
additional resources now for proposed activities which can be added to 
HUD funds to achieve program purposes, and will secure additional 
resources. It is important that you do not just seek endorsements from 
organizations or describe vendor relationships, but actively enlist 
individuals and/or entities who will provide significant financial and/
or other assistance to the revitalization effort.
    In rating this factor, HUD will evaluate the strength of your 
partnerships and relationships with other entities, and the extent 
those other entities will provide significant, firm funding commitments 
and other resources if HOPE VI funds are awarded.
    In your application, you must provide evidence of each proposed 
resource by including letters of firm commitments, memoranda of 
understanding, agreements to participate, or letters of support. If you 
cannot secure firm commitments, the entity must describe why the firm 
commitment cannot be made at the current time and affirm that your PHA 
and your HOPE VI project meet all eligibility criteria for receiving 
the resource. This is particularly important with regard to Low Income 
Housing Tax Credits (LIHTC). All such documentation must include the 
donor organization's name, the specific resource proposed, and the 
purpose of that resource. Letters providing only general support of the 
revitalization effort, and letters offering to provide vendor services 
will not count toward this rating factor. The commitment must be signed 
by an official of the organization legally authorized to make 
commitments on behalf of the organization. HUD will evaluate the 
strength of commitment that the letters articulate.
    If you propose to use Low Income Housing Tax Credits (LIHTC) as a 
part of your financing, provide in your application a letter from your 
State Housing Finance Agency that provides information from the state 
allocation plan regarding the total amount and type (4 percent vs. 9 
percent) of tax credits available, any setasides available for PHAs, 
per project funding limits, the schedule of funding rounds, 
verification that your project meets eligibility criteria, and other 
pertinent information.
    (1) Development Resources: 6 Points. HUD seeks to fund mixed-
finance development that will use HOPE VI funds to leverage other 
development funds, resulting in revitalized public housing, other types 
of assisted and market rate housing, and retail and economic 
development. To receive full points, you must actively enlist other 
stakeholders who are vested in and can provide significant financial 
assistance to your revitalization effort. In rating this factor, HUD 
will consider the amount, breadth, and firmness of financial 
commitments for development purposes.
    Sources of development resources may include public and private 
non-profit and for-profit entities with experience in the development 
and/or management of low- and moderate-income housing; foundations; 
LIHTC syndicators; State Housing Finance Agencies; nonprofit 
organizations; private debt and equity; and banks or insured loans. If 
your PHA is also a redevelopment agency or otherwise has citywide 
responsibilities, HUD will consider the City's housing and/or 
redevelopment agency or other functional area to be a separate entity 
with which you are partnering.
    (2) Community and Supportive Services Program Resources: 4 Points. 
It is critical that you form partnerships to achieve quantifiable self-
sufficiency goals and that you leverage scarce HOPE VI self-sufficiency 
funds with other funds. It is essential that you provide for the 
sustainability of Community and Supportive Services programs so that 
they may continue after the HUD funds have been expended.
    HUD encourages you to create public/private partnerships with hard 
commitments from and accountability to organizations skilled in the 
delivery of services to residents of public housing. It is particularly 
important to create partnerships with local Boards of Education which 
will provide the foundation for young people from infancy through high 
school graduation to succeed in academia, the professional world, and 
mainstream society. You are encouraged to form partnerships with 
organizations such as local businesses, faith-based organizations, non-
profit organizations, foundations, banks, welfare departments, Private 
Industry Councils, Departments of Transportation, Police, and economic 
development agencies, charitable, fraternal, and business 
organizations, Weed and Seed programs, and individual employers. 
Identify prospective employers, the number and types of jobs they 
propose to make available, the kind and level of training needed to 
prepare residents for such jobs and how such training will be provided.
    Resources may include financial resources such as Federal, State, 
or local government grants or private contributions. Resources may also 
include in-kind contributions such as the value of any donated material 
or building; the value of any lease on a building; the value of the 
time and services contributed by volunteers, staff, supplies, municipal 
or county

[[Page 9738]]

government services and infrastructure; and the value of any other in-
kind services or administrative costs provided which are critical to 
the successful transformation of the project and the lives of its 
residents.
    In rating this factor, HUD will consider the amount, breadth and 
firmness of financial and in-kind commitments for Community and 
Supportive Services Programs, and the sustainability of such programs 
during the life of the grant and after HOPE VI funds have been 
expended.
Rating Factor 5: Comprehensiveness and Coordination (10 Points Total)
    This factor evaluates your efforts to address the need for 
revitalized public housing in a holistic and comprehensive manner by 
creating linkages with other activities in the community, incorporating 
the revitalization of public housing into the overall plans for 
revitalization of the broader community, and participating or promoting 
participation in the community's Consolidated Planning process.
    (1) Coordination: 5 Points. To receive maximum points, you must 
indicate that you have and/or will:
    (a) Coordinate your proposed activities with related activities of 
other groups or organizations prior to submission in order to best 
complement, support and coordinate all known related activities. For 
example, it is important to know about changes in transportation, 
infrastructure, land use, and other revitalization issues when planning 
the locations of revitalized housing to prevent future site problems.
    (b) Take specific steps to share information about solutions and 
outcomes with others.
    (c) Take specific steps to develop linkages to coordinate 
comprehensive solutions through meetings, information networks, 
planning processes or other mechanisms with other HUD-funded projects/
activities outside the scope of those covered by the Consolidated Plan, 
such as civil rights organizations; Local Area Agency on Aging, if 
applicable; local agencies and organizations serving persons with 
disabilities; Local Weed and Seed task force if the targeted project is 
located in a designated Weed and Seed area; HUD drug elimination, 
welfare-to-work, and self-sufficiency programs; other Federal, State or 
locally funded activities, including those proposed or on-going in the 
community; and Local law enforcement agencies and the local United 
States Attorney.
    (d) Forge relationships with local Boards of Education, 
institutions of higher learning, non-profit or for-profit educational 
institutions and public/private mentoring programs that will lead to 
new or improved educational facilities and improved educational 
achievement of young people in the revitalized development from birth 
through higher education.
    (2) Community Planning: 5 points. To receive maximum points, you 
must indicate that you have or that you will take specific steps to 
become active in the community's Consolidated Planning process 
(including the Analysis of Impediments to Fair Housing Choice) 
established to identify and address the need for revitalized public 
housing, that your plans are tied to revitalization plans for the 
broader community and the jurisdiction as a whole, and that your plans 
are consistent with plans or organizing efforts in the immediate, 
surrounding neighborhoods.

(D) Demolition Application Evaluation

    (1) Demolition Funding Categories. HUD will select Demolition 
applications on a first-come, first-served basis, by an application's 
Funding Tier, Priority Group, and Ordinal. Demolition applications are 
not rated.
    (a) Funding Tiers. If you wish to request more than $7.5 million 
for HOPE VI Demolition grants, you must divide your applications and 
identify each of your applications as either Tier 1 or Tier 2. If funds 
remain after all Tier 1 applications are funded, HUD will begin to fund 
Tier 2 applications, in accordance with the procedures in Section 
V.(D)(3) of this program section of the SuperNOFA, below.
    (i) The total amount requested in all of your Tier 1 applications 
may not equal more than $7.5 million.
    (ii) The total amount requested in all of your Tier 2 applications 
may not equal more than $5 million.
    (iii) The total amount requested in all your applications, both 
Tier 1 and Tier 2, may not exceed $12.5 million.
    (b) Priority Groups. You must also identify each of your 
applications by its appropriate Priority Group, as described below. 
Each application must target units of a single Priority Group, e.g., do 
not include Priority Group I units in the same application as Priority 
Group 2 units.
    (i) Priority Group 1: HOPE VI Demolition funding applications that 
target units included in a Conversion Plan (i.e., plan for removal of 
the obsolete and/or severely distressed development from the public 
housing inventory in accordance with the requirements at 24 CFR 
971.7(d)) that HUD has approved on or before the HOPE VI Demolition 
funding application due date under this program section of the 
SuperNOFA. Please note that the term ``Conversion Plan'' used in this 
program section NOFA is the plan required by 24 CFR part 971.
    (ii) Priority Group 2: HOPE VI Demolition funding applications that 
target units that were included in a HOPE VI Demolition funding 
application that you submitted in FY 1998 and that HUD deemed eligible 
for funding, but could not select for lack of sufficient funds.
    (iii) Priority Group 3: (1) HOPE VI Demolition funding applications 
that target units included in a Conversion Plan (i.e., plan for removal 
of the obsolete and/or severely distressed development from the public 
housing inventory in accordance with the requirements at 24 CFR 
971.7(d)) that you have submitted to HUD on or before the HOPE VI 
Demolition funding application due date under this program section of 
the SuperNOFA.
    (a) If you submit a HOPE VI Demolition funding application for 
units that are targeted in a Conversion Plan that was submitted under 
24 CFR Part 971 but not yet approved (Priority Group 3), and the 
Conversion Plan is subsequently approved (before the application 
deadline), you may revise your application and it will be reclassified 
as Priority Group 1. HUD will change the Ordinal to the Ordinal 
corresponding to the date that the revised application was received.
    (b) If you submit a Conversion Plan but you are not eligible under 
24 CFR part 971, your HOPE VI Demolition will not be considered to be 
in Priority Group 3. Please check with your local HUD Office before 
submitting a HOPE VI Demolition funding application based on submission 
of a Conversion Plan.
    (2) Applications that target units that you included in a HUD-
approved 24 CFR part 970 Demolition Application. If you have submitted 
a Part 970 Demolition Application to HUD's Special Applications Center 
(SAC) but it has not yet been approved by HUD, your HOPE VI Demolition 
application will not be considered complete and you will not receive an 
Ordinal until your Part 970 Demolition application is approved.
    (c) Ordinals. Upon receipt, HUD will assign each application an 
Ordinal (i.e., ranking number) that reflects the date HUD Headquarters 
received the application. Ordinals correspond to business days, 
starting with the date HUD receives the first Demolition funding 
application and ending on the application due date, as specified in 
Section I of this program section of the SuperNOFA, above. HUD will 
consider all applications received on the same

[[Page 9739]]

date as received at the same time on that date, and those applications 
will all be assigned the same Ordinal.
    (2) Demolition Screening. (a) Within a day after HUD receives your 
application, HUD will screen the application to ensure that it has met 
each HOPE VI Demolition funding program requirement listed in Section 
IV.(C) of this program section of the SuperNOFA, above, and that it 
includes each application submission requirement listed in Section 
VI.(B) of this program section of the SuperNOFA, below.
    (b) If HUD determines that an application is not eligible for 
funding (e.g., the applicant is not a PHA), HUD will not consider the 
application further and will immediately notify the applicant that the 
application has been rejected.
    (c) If HUD determines that an application is eligible but 
incomplete, within one day of receipt of the application, HUD will 
contact you in writing by fax (followed up with a hard copy by mail) to 
request the missing information. If HUD finds your application and 
other applications received on the same day to be incomplete, HUD will 
notify all such applicants of their missing items on the same day. 
Since Demolition funding applications are not rated, you may submit 
information to complete your application at any time before the 
Demolition funding application deadline date. However, if your 
application is received on the deadline date and it is missing a 
required submission, you will have no opportunity to submit any missing 
item after the deadline date and your application will be ineligible 
for funding.

    Please Note: This provision means that the nearer to the 
deadline you submit your application, the less time you will have to 
correct any deficiencies, and if HUD receives your application ON 
the deadline date and there is a deficiency, that application will 
NOT be considered for funding. You are advised to submit your 
application as soon as possible, in the event that HUD identifies a 
deficiency that you need to correct.

    (d) When HUD receives information in response to its letter asking 
for missing information and determines that it completes the 
application, HUD will change the application's Ordinal to the Ordinal 
corresponding to the date that HUD received the information. If the 
information does not make the application complete, HUD will treat the 
submitted information in the same manner as a newly-submitted 
application and send you another letter requesting the missing 
information, up until the deadline date.
    (e) Notwithstanding the above, if HUD approves a demolition 
application or a conversion plan on the day before or on the 
application deadline date, the requirements to provide evidence of 
these approvals will be considered to be met and you will not be 
required to submit your approval letters from HUD.
    (3) Funding. HUD will award HOPE VI Demolition grants in the 
following order, based on fund availability.
    (a) HUD will fund eligible Tier 1, Priority Group 1 applications by 
Ordinal.
    (b) If funds remain after HUD has funded all eligible Tier 1, 
Priority Group 1 applications, HUD will fund Tier 1, Priority Group 2 
applications by Ordinal.
    (c) If funds remain after HUD has funded all eligible Tier 1, 
Priority Group 2 applications, HUD will fund Tier 1, Priority Group 3 
applications by Ordinal.
    (d) If funds remain after HUD has funded all eligible Tier 1 HOPE 
VI Demolition funding applications, HUD will fund eligible Tier 2 
applications, by Priority Group and Ordinal.
    (e) If funds remain after all eligible Tier 1 and Tier 2 HOPE VI 
Demolition funding applications have been funded, the remaining funds 
will be reallocated for HOPE VI Revitalization grants.
    (f) At any stage, if there are insufficient funds to fund all 
applications with the next Ordinal, HUD will conduct a lottery among 
the applications sharing the Ordinal to determine funding. HUD reserves 
the right to partially fund the last lottery winner chosen if 
insufficient funds remain to fund the entire amount requested, if HUD 
deems such partial funding will be a viable alternative to full 
funding.

(E) Grant Award Procedures

    (1) Notification of Funding Decisions. (a) The HUD Reform Act 
prohibits HUD from notifying you as to whether or not you have been 
selected to receive a Revitalization grant until it has announced all 
HOPE VI Revitalization grant recipients. If your application has been 
found to be ineligible or that it did not receive enough points to be 
funded, you will not be notified until the successful applicants have 
been notified. HUD will provide written notification to all HOPE VI 
applicants, whether or not they have been selected for funding.
    (b) HUD notification that you have been selected to receive a HOPE 
VI grant constitutes only preliminary approval. Grant funds may not be 
released until the following activities have been completed:
    (i) You or HUD must complete a subsidy layering review pursuant to 
24 CFR 941.10(b), if required by HUD;
    (ii) You and HUD must execute a HOPE VI Revitalization Grant 
Agreement or Demolition ACC Amendment in accordance with Sections (2) 
or (3) below, as applicable; and
    (iii) The responsible entity has completed an environmental review 
and you have submitted and obtained HUD approval of a request for 
release of funds and the responsible entity's environmental 
certification in accordance with Section IV(A)(8) of this program 
section of the SuperNOFA, above.
    (2) Revitalization Grant Agreement. When you are selected to 
receive a Revitalization grant, HUD will send you a HOPE VI Grant 
Agreement, which constitutes the contract between you and HUD to carry 
out and fund public housing revitalization activities. Both you and HUD 
will sign the cover sheet of the Grant Agreement, and it is effective 
on the date of HUD's signature. The Grant Agreement sets forth:
    (a) The amount of the grant;
    (b) Applicable rules, terms, and conditions, including sanctions 
for violation of the Agreement;
    (c) The precise schedules of the HOPE VI Program;
    (d) Program requirements;
    (e) Requirements for implementation of the proposed plan;
    (f) Any applicable special conditions that you must meet;
    (g) Certifications in which you will agree to:
    (i) Carry out the program in accordance with the provisions of this 
program section of the SuperNOFA, applicable law, the approved 
application, and all other applicable requirements, including 
requirements for mixed finance development;
    (ii) Comply with any other terms and conditions, including 
recordkeeping and reports, that HUD may establish for the purposes of 
administering, monitoring, and evaluating the program in an effective 
and efficient manner, including full cooperation with HUD's program 
oversight contractor;
    (iii) Assemble a team to implement the HOPE VI Program that has a 
strong management and development track record and is able to start and 
carry out a quality HOPE VI program. If you fail to demonstrate your 
ability to assemble a competent team to the satisfaction of HUD and its 
program oversight manager, HUD will direct corrective

[[Page 9740]]

actions as a condition of retaining the grant;
    (iv) Execute a construction contract within 18 months from the date 
of HUD's approval of the revitalization Plan (or a period specified in 
the Grant Agreement);
    (v) Establish interim performance goals and complete the physical 
component of the HOPE VI revitalization within 54 months from the date 
that HUD executed the Grant Agreement. If you fail to meet this or 
other deadlines established in the Grant Agreement, HUD may enforce 
default remedies described in the Grant Agreement, up to and including 
the withdrawal of grant funding. HUD will take into consideration those 
delays caused by factors beyond your control when enforcing these 
schedules;
    (vi) Execute an ACC Amendment for Mixed-Finance development with 
HUD, if required by HUD; and
    (vii) Foster the involvement of and gather input and 
recommendations from affected residents throughout the entire 
development process.
    (3) Demolition ACC Amendment. If you are selected to receive a 
Demolition grant, HUD will send you an ACC Amendment setting forth the 
amount of the grant. Both you and HUD will sign the ACC Amendment, and 
it is effective on the date of HUD's signature.
    (a) By signing the ACC Amendment, you will agree that:
    (i) You will carry out the demolition and relocation work in 
accordance with the requirements of this program section of the 
SuperNOFA, applicable law including all HUD regulations, the approved 
HOPE VI Demolition Funding Application, applicable Demolition 
Application approval, and all other applicable requirements; and
    (ii) You will procure a demolition contractor within six months 
from the date of ACC Amendment execution, and complete the demolition 
within two years from the date of ACC Amendment execution; and
    (iii) You will comply with such other terms and conditions, 
including recordkeeping and reports, as HUD may establish for the 
purposes of administering, monitoring, and evaluating the program in an 
effective and efficient manner.
    (b) Subject to the provisions of Part A of the ACC, and to assist 
in the demolition and relocation, HUD will agree to disburse to the PHA 
from time to time as needed, up to the amount of funding assistance 
awarded.

VI. Application Submission Requirements

(A) Revitalization Application Exhibits

    (1) Application Kit. The HOPE VI Application Kit provides explicit, 
specific instructions as to the format of a HOPE VI Revitalization 
application. Your application must conform to the requirements of this 
program section of the SuperNOFA and follow the format described in the 
Kit. In addition to the narratives that respond to the rating criteria 
in this program section of this SuperNOFA, your application will also 
include submissions that provide HUD with detailed information about 
your proposed revitalization, including forms and other documentation.
    (2) Submissions Required for Rating. HUD will review the following 
application submissions and rate them in accordance with the 
Revitalization rating factors in section V.(C) of this program section 
of the SuperNOFA, above. Because these submissions are rated, they 
cannot be improved after submission of the application, and you may not 
submit any missing submissions after the deadline date.
    (a) An Executive Summary.
    (b) A description of your experience and that of your committed 
partners in developing and managing housing and providing Community and 
Supportive Services Programs.
    (c) A description of existing site conditions, which demonstrates 
the extent of need for your proposed revitalization.
    (d) A description of all predevelopment activities.
    (e) A description of all revitalization activities proposed in your 
application and details of how the proposed work will be accomplished.
    (f) A description of Community and Supportive Services Programs.
    (g) A plan for resident and community outreach and involvement in 
the planning process.
    (h) A description of current or planned coordination with related 
activities of other groups or organizations, including any applicable 
EZ/EC local empowerment board.
    (i) A description of proposed management principles and policies 
which will support revitalization efforts, increase safety and security 
for residents, affirmatively further fair housing, lessen concentration 
of low-income residents and create desegregation opportunities, and 
promote mixed-income communities.
    (j) Program Resources and Financing: budget, sources and uses, 
documentation of resources.
    (k) Photographs of distressed public housing and representative 
photographs of the neighborhood.
    (l) A current site map showing the various buildings of the project 
and identifying the buildings to be demolished and/or disposed of.
    (m) A relocation plan for relocation not described in a demolition 
application.
    (n) A city map which clearly identifies key facilities in the 
context of existing city streets, the central business district, other 
key city sites, and census tracts and which indicates the existing 
project, the planned development, and any off-site housing.
    (o) A neighborhood map which clearly shows the distance, and 
distance scale, between two projects, if the two projects are being 
submitted as a single development for HOPE VI funding, pursuant to 
Section II.(A)(2)(b), above, of this NOFA.
    (p) A proposed site map which indicates where proposed 
construction, rehabilitation acquisition, or disposition activities 
will take place.
    (q) Site and unit design illustrations.
    (3) Submissions Required for Completeness. The following 
submissions are required in your application but HUD will not use them 
for rating purposes. In accordance with section V. of the General 
Section of this SuperNOFA, HUD will give you the opportunity to submit 
missing submissions. If, after the cure period, HUD has not received 
and accepted the missing submissions, your application will not be 
eligible for funding.
    (a) A certification by an independent engineer that the targeted 
public housing project, or buildings in a project, meets the severe 
distress requirement described in Section IV.(B)(1)(a)(i) of this 
program section of the SuperNOFA, above.
    (b) An Implementation Schedule.
    (c) Evidence that at least one training session on the HOPE VI 
development process and three public meetings were held in accordance 
with the requirements of section IV.(B)(2) of this program section of 
the SuperNOFA, above.
    (d) The HOPE VI Revitalization Applicant Certifications. The text 
of the Revitalization Applicant Certifications is included as Appendix 
A below, and the actual form to sign is located in the HOPE VI 
Application Kit; and
    (e) Signed copies of the standard forms, certifications, and 
assurances listed in section II.(G) of the General Section of this 
SuperNOFA.

[[Page 9741]]

(B) Demolition Application Requirements

    The HOPE VI Application Kit provides explicit, specific 
instructions as to the format of a HOPE VI Demolition application. Your 
application must conform to the requirements of this program section of 
the SuperNOFA and follow the format described in the kit. The following 
is a summary of the application information required by this program 
section of the SuperNOFA. Demolition grants are awarded on a first-
come, first-served basis and HUD does not rate the applications. 
Therefore, any missing information may be submitted after the 
application is first submitted in accordance with section V.(D) of this 
program section of the SuperNOFA, above. HUD will not consider any 
application for funding until you submit each of the following 
requirements to HUD's satisfaction.
    (1) Standard Form 424, Request for Federal Assistance, signed by a 
person legally authorized to enter into an agreement with the 
Department.
    (2) Site Information and Proposed Activities: information and 
description of the proposed demolition and related activities.
    (3) Documentation of unit eligibility:
    (a) Evidence of HUD approval of a demolition/disposition 
application (approval letter); or
    (b) Approval by HUD or submission to HUD by the HOPE VI demolition 
application due date of an obsolete and/or severely distressed public 
housing conversion plan in conformance with the requirements of 24 CFR 
part 971.
    (4) A description of program financing, including a program budget 
submitted on Form HUD-52825-A and third-party certification of 
reasonable and accurate costs.
    (5) A program schedule which clearly shows that you will complete 
the proposed demolition within two years from the date your ACC 
Amendment is executed.
    (6) The HOPE VI Demolition Applicant Certifications. The text of 
the Demolition Applicant Certifications is included in Appendix B 
below, and the actual form to execute is located in the HOPE VI 
Application Kit; and
    (7) Signed copies of the standard forms, certifications, and 
assurances listed in Section II.(G) of the General Section of this 
SuperNOFA.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Authority

    The funding for HOPE VI Revitalization and Demolition grants under 
this program section of the SuperNOFA is provided by the FY 1999 HUD 
Appropriations Act under the heading ``Revitalization of Severely 
Distressed Public Housing (HOPE VI).''

Appendix A--HOPE VI Revitalization Applicant Certifications

    The text of the HOPE VI Revitalization Applicant Certifications 
is as follows:
    Acting on behalf of the Board of Commissioners of the Housing 
Authority listed below, as its Chairman, I approve the submission of 
the HOPE VI application of which this document is a part and make 
the following certifications to and agreements with the Department 
of Housing and Urban Development (HUD) in connection with the 
application and implementation thereof:
    1. The PHA will comply with all policies, procedures, and 
requirements prescribed by HUD for the HOPE VI program, including 
the implementation of HOPE VI activities in a timely, efficient, and 
economical manner.
    2. The PHA has not and will not receive assistance from the 
Federal government, State, or unit of local government, or any 
agency or instrumentality, for the specific activities for which 
funding is requested in the application. The PHA has established 
controls to ensure that any activity funded by the HOPE VI grant is 
not also funded by any other HUD program, thereby preventing 
duplicate funding of any activity.
    3. The PHA will not provide to any development more assistance 
under the HOPE VI Program than is necessary to provide affordable 
housing after taking into account other governmental assistance 
provided. The PHA could not undertake the activities proposed in the 
application without the additional assistance provided by the 
requested HOPE VI grant.
    4. The PHA will supplement the aggregate amount of the HOPE VI 
grant with funds from sources other than HOPE VI in an amount not 
less than 5 percent of the amount of HOPE VI grant.
    5. In addition to supplemental amounts provided in accordance 
with Certification 4 above, if the PHA uses more than 5 percent of 
the HOPE VI grant for Community and Supportive Services Programs, it 
will provide supplemental funds from sources other than HOPE VI in 
an amount equal to the amount used in excess of 5 percent.
    6. The PHA has conducted at least one training session for 
residents on the HOPE VI development process and three public 
meetings with residents and community members to involve them in the 
process of planning the revitalization and preparing the 
application. At least one meeting was held after the publication 
date of the FY 1999 HOPE VI Revitalization NOFA.
    7. The PHA does not have any litigation pending which would 
preclude timely startup of activities.
    8. The application is in full compliance with any desegregation 
or other court order related to Fair Housing (e.g., Title VI of the 
Civil Rights Act of 1964, the Fair Housing Act, and Section 504 of 
the Rehabilitation Act of 1973) that affects the PHA's public 
housing program and that is in effect on the date of application 
submission.
    9. Disposition activity under the grant will be conducted in 
accordance with 24 CFR part 970.
    10. Acquisition of land, or acquisition of off-site units with 
or without rehabilitation to be used as public housing, will be 
carried out in accordance with 24 CFR part 941.
    11. Major rehabilitation and other physical improvements of 
housing and non-dwelling facilities will be carried out in 
accordance with 24 CFR 968.112(b), (d), (e), and (g)-(o), 24 CFR 
968.130, and 24 CFR 968.135(b) and (d).
    12. Construction of replacement rental housing, both on-site and 
off-site, economic development, and community facilities, will be 
carried out in accordance with 24 CFR part 941, including mixed-
finance development in accordance with subpart F.
    13. Replacement housing activity with units acquired or 
otherwise provided for homeownership under Section 5(h) of the 1937 
Act will be conducted in accordance with 24 CFR part 906.
    14. Replacement housing activities provided through housing 
opportunity programs of construction or substantial rehabilitation 
of homes will meet essentially the same eligibility requirements of 
the Nehemiah Program.
    15. The administration and operation of units will be in 
accordance with all existing public housing rules and regulations.
    16. The PHA will comply with the requirements of the Fair 
Housing Act (42 U.S.C. 3601-19) and regulations pursuant thereto (24 
CFR part 100); Executive Order 11063 (Equal Opportunity in Housing) 
and regulations pursuant thereto (24 CFR part 107); the fair housing 
poster regulations (24 CFR part 110) and advertising guidelines (24 
CFR part 109); Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
2000d) and regulations pursuant thereto (24 CFR part 1).
    17. The PHA will comply with the prohibitions against 
discrimination on the basis of age pursuant to the Age 
Discrimination Act of 1975 (42 U.S.C. 6101-07) and regulations 
issued pursuant thereto (24 CFR part 146); the prohibitions against 
discrimination against, and reasonable modification and 
accommodation and accessibility requirements for, handicapped 
individuals under Section 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794) and regulations issued pursuant thereto (24 CFR part 8); 
the Americans with Disabilities Act (42 U.S.C. 12101 et. seq.) and 
regulations issued pursuant thereto (28 CFR Part 36); and the 
Architectural Barriers Act of 1968, as amended (42 U.S.C. 4151) and 
regulations issued pursuant thereto (24 CFR Part 40).
    18. The PHA has adopted the goal of awarding a specified 
percentage of the dollar value of the total of the HOPE VI contracts 
to be awarded during subsequent fiscal years to minority business 
enterprises and will take appropriate affirmative action to assist 
resident-controlled and women's business enterprises in accordance 
with the requirements of Executive Orders 11246, 11625, 12432, and 
12138.

[[Page 9742]]

    19. The PHA will comply with the requirements of 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 regulation at 24 CFR 
part 135.
    20. The PHA will comply with Davis-Bacon or HUD-determined 
prevailing wage rate requirements to the extent required under 
Section 12 of the U.S. Housing Act of 1937.
    21. The PHA will comply with the relocation assistance and real 
property acquisition requirements of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 and 
government-wide implementing regulations at 49 CFR part 24 and will 
provide temporary relocation assistance in accordance with 24 CFR 
968.108.
    22. The PHA will comply with the HOPE VI requirements for 
reporting, and for access to records and audits as required in the 
HOPE VI Grant Agreement.
    23. The PHA will comply with the Lead-Based Paint Poisoning 
Prevention Act (42 U.S.C. 4821, et seq.) and is subject to 24 CFR 
parts 35 and 965 (subpart H) and Section 968.110(k), as they may be 
amended from time to time.
    24. The PHA will comply with the policies, guidelines, and 
requirements of OMB Circular Nos. A-87 (Cost Principles Applicable 
to Grants, Contracts, and Other Agreements with State and Local 
Governments) and 24 CFR part 85 (Administrative Requirements for 
Grants and Cooperative Agreements to State, Local and Federally 
Recognized Indian Tribal Governments), as modified by 24 CFR 941 
subpart F relating to the procurement of partners in mixed finance 
developments, except when inconsistent with the provisions of the 
1998 Appropriations Act or other applicable Federal statutes or the 
NOFA pursuant to which the application was submitted.
    25. PHA has returned any excess advances received during 
development or modernization, or amounts determined by HUD to 
constitute excess financing based on a HUD-approved Actual 
Development Cost Certificate (ADCC) or Actual Modernization Cost 
Certificate (AMCC), or that HUD has approved a pay-back plan.
    26. There are no environmental factors, such as sewer 
moratoriums, precluding development in the requested locality.
    27. The application is consistent with Environmental Justice 
Executive Order 12898, in that the proposed public housing will be 
developed only in environmentally sound and desirable locations and 
will avoid disproportionately high and adverse environmental effects 
on minority and low-income communities.
    28. The PHA will comply with the provisions of 24 CFR part 24 
with regard to the employment, engagement of services, awarding of 
contracts, subgrants, or funding of any recipients, or contractors 
or subcontractors, during any period of debarment, suspension, or 
placement in ineligibility status.
    29. The public housing project or building in a project targeted 
in this HOPE VI application meets the definition of severe distress 
provided in Section IV.(B)(1) of the FY 1999 HOPE VI NOFA.

Appendix B--HOPE VI Demolition Applicant Certifications

    The text of the HOPE VI Demolition Applicant Certifications is 
as follows:
    Acting on behalf of the Board of Commissioners of the Public 
Housing Authority (PHA) listed below, as its Chairman, I approve the 
submission of the HOPE VI Demolition funding application of which 
this document is a part and make the following certifications to and 
agreements with the Department of Housing and Urban Development 
(HUD) in connection with the application and implementation thereof:
    1. The PHA will comply with all policies, procedures, and 
requirements prescribed by HUD for the HOPE VI program, including 
the implementation of HOPE VI activities in a timely, efficient, and 
economical manner.
    2. The PHA has not and will not receive assistance from the 
Federal government, State, or unit of local government, or any 
agency or instrumentality, for the specific activities for which 
funding is requested in the application. The PHA has established 
controls to ensure that any activity funded by the HOPE VI grant is 
not also funded by any other HUD program, thereby preventing 
duplicate funding of any activity.
    3. The PHA will not provide to any development more assistance 
under the HOPE VI Program than is necessary to perform demolition 
activities after taking into account other governmental assistance 
provided.
    4. Disposition activity under the grant will be conducted in 
accordance with 24 CFR part 970;
    5. The PHA will comply with the requirements of the Fair Housing 
Act (42 U.S.C. 3601-19) and regulations pursuant thereto (24 CFR 
part 100); Executive Order 11063 (Equal Opportunity in Housing) and 
regulations pursuant thereto (24 CFR part 107); the fair housing 
poster regulations (24 CFR part 110) and advertising guidelines (24 
CFR part 109); Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
2000d) and regulations pursuant thereto (24 CFR part 1).
    6. The PHA will comply with the prohibitions against 
discrimination on the basis of age pursuant to the Age 
Discrimination Act of 1975 (42 U.S.C. 6101-07) and regulations 
issued pursuant thereto (24 CFR part 146); the prohibitions against 
discrimination against, and reasonable modification and 
accommodation and accessibility requirements for, handicapped 
individuals under Section 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794) and regulations issued pursuant thereto (24 CFR part 8); 
the Americans with Disabilities Act (42 U.S.C. 12101 et seq.) and 
regulations issued pursuant thereto (28 CFR Part 36); and the 
Architectural Barriers Act of 1968, as amended (42 U.S.C. 4151) and 
regulations issued pursuant thereto (24 CFR Part 40).
    7. The PHA will address the elimination of impediments to fair 
housing that were identified in the jurisdiction's Analysis of 
Impediments to Fair Housing Choice; remedy discrimination in 
housing; and promote fair housing rights and fair housing choice.
    8. The PHA has adopted the goal of awarding a specified 
percentage of the dollar value of the total of the HOPE VI contracts 
to be awarded during subsequent fiscal years to minority business 
enterprises and will take appropriate affirmative action to assist 
resident-controlled and women's business enterprises in accordance 
with the requirements of Executive Orders 11246, 11625, 12432, and 
12138.
    9. The PHA will comply with the requirements of 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 regulation at 24 CFR 
part 135.
    10. The PHA will comply with Davis-Bacon or HUD-determined 
prevailing wage rate requirements to the extent required under 
Section 12 of the U.S. Housing Act of 1937.
    11. The PHA will comply with the relocation assistance and real 
property acquisition requirements of 24 CFR 970.5.
    12. The PHA will keep records in accordance with 24 CFR 85.20 
that facilitate an effective audit to determine compliance with 
program requirements.
    13. The PHA will comply with the Lead-Based Paint Poisoning 
Prevention Act (42 U.S.C. 4821, et seq.) and is subject to 24 CFR 
parts 35 and 965 (subpart H) and Section 968.110(k), as they may be 
amended from time to time.
    14. The PHA will comply with the policies, guidelines, and 
requirements of OMB Circular Nos. A-87 (Cost Principles for State, 
Local and Indian Tribal Governments) and 24 CFR part 85 
(Administrative Requirements for Grants and Cooperative Agreements 
to State, Local and Federally Recognized Indian Tribal Governments).
    15. The PHA does not have any litigation pending which would 
preclude timely startup of activities.
    16. PHA has returned any excess advances received during 
development or modernization, or amounts determined by HUD to 
constitute excess financing based on a HUD-approved Actual 
Development Cost Certificate (ADCC) or Actual Modernization Cost 
Certificate (AMCC), or that HUD has approved a pay-back plan.

BILLING CODE 4210-32-P

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Notices  

[[Page 9743]]


     
    [GRAPHIC] [TIFF OMITTED] TN26FE99.030
    

BILLING CODE 4210-32-C

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

[[Page 9745]]



Funding Availability for the Public and Indian Housing Drug 
Elimination Program (PHDEP)

Program Overview

    Purpose of the Program. To provide grants to eliminate drugs and 
drug-related crime in public housing and Indian communities.
    Available Funds. Approximately $242,750,000 is available during FY 
99 for PHDEP grants.
    Eligible Applicants. Public Housing Authorities (PHAs), Tribes, or 
Tribally Designated Housing Entities (TDHEs) on behalf of the Tribe.
    Application Deadline. June 16, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following information.

I. Application Due Date, Application Kits, Further Information and 
Technical Assistance

    Application Due Date. Applications (an original and two copies) are 
due on or before 6:00 pm local time on June 16, 1999 at the address 
shown below.
    See the General Section of this SuperNOFA for specific procedures 
governing the form of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Address For Submitting Applications. Submit an original and two 
identical copies of the application by the application due date at the 
local Field Office with delegated public housing responsibilities: 
Attention: Director, Office of Public Housing, or, in the case of the 
Tribes or TDHEs, to the local HUD Administrator, Area Office of Native 
American Programs (AONAP), as appropriate.
    For Application Kits. To receive a copy of the Public Housing Drug 
Elimination Program (PHDEP) application kit please call the SuperNOFA 
Information Center at 1-800-HUD-8929. Persons with hearing or speech 
impairments may call the Center's TTY number at 1-800-483-2209. When 
requesting an application kit, please refer to the Public Housing Drug 
Elimination Program (PHDEP). Please provide your name, address 
(including zip code, and telephone number (including area code)). The 
application kit contains information on all exhibits, forms, and 
certifications required for PHDEP.
    For Further Information and Technical Assistance. Please call the 
local HUD Field Office HUB with delegated housing responsibilities for 
your housing agency, the Area Office of Native American Programs 
(AONAPs) with jurisdiction over your Tribe or Tribally Designated 
Housing Entity (TDHE) preparing your application, HUD's Drug 
Information and Strategy Clearinghouse (DISC) at 1-800-952-2232; or 
Sonia Burgos in the Community Safety and Conservation Division, Office 
of Public and Indian Housing, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Room 4206, Washington, DC 20410, 
telephone (202) 708-1197, extension 4227; or Tracy C. Outlaw, National 
Office of Native American Programs, Department of Housing and Urban 
Development, 1999 Broadway, Suite 3390, Denver, CO 80202, telephone 
(303) 675-1600. (With the exception of the ``1-800'' telephone number, 
these are not toll-free numbers.)

II. Amount Allocated

    Public Law 105-276 (the FY 1999 HUD Appropriations Act) 
appropriated $310,000,000 for the Public Housing Drug Elimination 
Program. Of the total $310,000,000 appropriated, approximately 
$242,750,000 is being made available for PHDEP grants. Additionally, 
$14,399 in FY 1999 funds is awarded to the Housing Authority of the 
City of Cedartown, GA, an FY 1997 PHDEP grantee mistakenly denied this 
amount for an eligible law enforcement activity.

III. Program Description; Eligible Applicants; Eligible/Ineligible 
Activities

(A) Program Description

    Funds are available for Public Housing Authorities (PHAs), Tribes 
or Tribally Designated Housing Entities (TDHEs) to develop and finance 
drug and drug-related crime elimination efforts in their developments. 
You may use funds for enhancing security within your developments, 
making physical improvements to enhance security; and/or developing and 
implementing prevention, intervention and treatment programs to stop 
drug use in public and Indian housing communities.
    In FY 1999, HUD is requiring all applicants to establish measurable 
baseline information and realistic goals for drug-related crime in 
Public Housing and for all major PHDEP activities being proposed. This 
information will be reported in a new PHDEP Semi-Annual Reporting 
System which will be implemented by July 1999. In addition, HUD is 
developing a formula based system for use in awarding PHDEP grants.

(B) Eligible Applicants

    Eligible applicants include PHAs, Tribes or TDHEs. (A Tribe can 
apply either in its own name or through its TDHE. A TDHE cannot apply 
on behalf of a Tribe that is applying on its own behalf.) Resident 
Management Corporations (RMCs); and incorporated Resident Councils 
(RCs) are eligible for funding from PHAs as sub-grantees. RMCs and ROs 
that were operating pursuant to 24 CFR part 950 are eligible for 
funding from Tribes or TDHEs as subgrantees to develop security and 
substance abuse prevention programs.

(C) Eligible/Ineligible Activities

    Under statute, PHDEP grants may be used for seven types of 
activities including: Physical improvement specifically designed to 
enhance security; Programs designed to reduce use of drugs in and 
around public or Indian housing developments including drug-abuse 
prevention, intervention, referral, and treatment; Funding for non-
profit public housing resident management corporations (RMCs), Resident 
Councils (RCs), and Resident Organizations (ROs) to develop security 
and drug abuse prevention programs involving site residents; Employment 
of security personnel; Employment of personnel to investigate and 
provide evidence in administrative or judicial proceeding; 
Reimbursement of local law enforcement agencies for additional security 
and protective services; and Training, communications equipment, and 
related equipment for use by voluntary tenant patrols.
    Following is a discussion by activity type of: what is fundable; 
what is not fundable; and specific requirements or items that need to 
be discussed in your application if you are including that activity in 
your application.
    (1) Physical Improvements to Enhance Security. (a) Physical 
improvements specifically designed to enhance security may include: 
installing barriers, speed bumps, lighting systems, fences, 
surveillance equipment (e.g., Closed Circuit Television (CCTV), 
computers and software, fax machines, cameras, monitors, and supporting 
equipment), bolts, locks, and landscaping or reconfiguring common areas 
to discourage drug-related crime.
    (i) All physical improvements must be accessible to persons with 
disabilities. For example, locks or buzzer systems that are not 
accessible to persons with restricted or impaired strength, mobility, 
or hearing may not be funded by PHDEP. Defensible space improvements 
must comply with civil rights requirements and cannot exclude

[[Page 9746]]

or segregate people because of their race, color, or national origin 
from benefits, services, or other terms or conditions of housing. All 
physical improvements must meet the accessibility requirements of 24 
CFR part 8.
    (ii) Funding is permitted for the purchase or lease of house 
trailers of any type that are not designated as a building if they are 
used for eligible community policing, educational, employment, and 
youth activities. A justification of purchase versus lease must be 
supported by your cost-benefit analysis.
    (b) Ineligible Improvements. (i) Physical improvements that involve 
demolishing any units in a development.
    (ii) Physical improvements that would displace persons are 
ineligible.
    (iii) Acquiring real property.
    (2) Programs to Reduce Drug Use (Prevention, Intervention, 
Treatment, Structured Aftercare and Support Systems). (a) General 
Requirements and Strategies. HUD is looking for you to structure your 
substance abuse prevention, intervention, treatment, and aftercare 
program using a ``continuum of care'' approach. A ``continuum of care'' 
approach includes not just treating the addiction or dependency but 
providing aftercare, mentoring, and support services such as day care, 
family counseling, education, training, employment development 
opportunities, and other activities.
    You must develop a substance abuse/sobriety (remission)/treatment 
(dependency) strategy to adequately plan your substance abuse 
prevention, intervention, treatment, and structured aftercare efforts. 
In many cases, you may want to include education, training, and 
employment opportunities for residents; and support Welfare to Work 
initiatives. When undertaking these activities, you should be 
leveraging your PHDEP resources with other Federal, State, local and 
Tribal resources. For example, your application may propose providing 
space and other infrastructure for these efforts with several public 
agencies providing staff and other resources at limited or no cost. 
Your application should also discuss how your strategy incorporates 
existing community resources and how they will be used in your program. 
The strategy should also document how community resources will be 
provided on-site, or how participants will be referred and transported 
to treatment programs that are not on-site.
    A community-based approach also requires you to develop a 
culturally appropriate strategy. Curricula, activities, and staff 
should address the cultural issues of the local community, which 
requires your application to indicate your familiarity and facility 
with the language and cultural norms of the community. As applicable, 
your strategy should discuss cultural competencies associated with 
Hispanic, African-American, Asian, Native American or other racial or 
ethnic communities.
    Your activities should focus resources directly to housing 
authority residents and families.
    For all activities involving education, training and employment, 
you should demonstrate efforts to coordinate with Federal, Tribal, 
State and local employment training and development services, ``welfare 
to work'' efforts, or other new ``welfare reform'' efforts.
    The current Diagnostic and Statistical Manual (DSM) of Mental 
Disorders of the American Psychiatric Association dated May 1994, 
contains information on substance abuse, dependency and structured 
aftercare. For more information about this reference, contact: APPI, 
1400 K. Street, NW, Suite 1100, Washington, DC 20005 on 1(800) 368-5777 
or World Wide Web site at http://www.appi.org.
    Eligible activities may include:
    (i) Substance abuse prevention, intervention, and referral 
programs;
    (ii) Programs of local social, faith-based and/or other 
organizations that provide treatment services (contractual or 
otherwise) for dependency/remission; and
    (iii) Structured aftercare/support system programs.
    (b) Activities must be ``in and around''. PHDEP funding is 
permitted for programs that reduce/eliminate drug-related crime ``in 
and around'' the premises of the housing authority/development(s). HUD 
has defined the term ``in and around'' to mean within, or adjacent to, 
the physical boundaries of a public or Indian housing development. This 
ensures that program funds and activities are targeted to benefit, as 
directly as possible, public and Indian housing developments and their 
residents.
    (c) Eligible cost. (i) Funding is permitted for reasonable, 
necessary, and justified purchasing or leasing (whichever is documented 
as the most cost effective) of vehicles for transporting adult and 
youth residents for education, job training, and off-site treatment 
programs directly related to reducing drugs and drug-related crime. The 
cost reasonableness can be determined by a comparison of the number of 
participants in and anticipated costs of these programs compared to the 
purchase or lease cost of the vehicles. If these costs are included in 
your application, you must include a description of why the expenses 
are necessary. Under no circumstances are these vehicles to be used for 
other than their intended purpose under your grant.
    (ii) Funding is permitted for reasonable, necessary and justified 
program costs, such as meals and beverages incurred only for training, 
education and employment activities, and youth services directly 
related to reducing drugs and drug-related crime. Refer to Office of 
Management and Budget (OMB) Circular A-87, Cost Principles for State, 
Local and Indian Tribal Governments.
    (d) Prevention. Prevention programs must demonstrate that they will 
provide directly, or otherwise make available, services designed to 
distribute substance/drug education information, to foster effective 
parenting skills, and to provide referrals for treatment and other 
available support services in the housing development or the community 
for housing authority families.
    Prevention programs should provide a comprehensive prevention 
approach for residents that address the individual resident and his or 
her relationship to family, peers, and the community. Your prevention 
programs activities should identify and change the causal factors 
present in housing authorities that lead to drug-related crime thereby 
lowering the risk of drug usage. Many components of a comprehensive 
approach, including refusal and restraint skills training programs or 
drug, substance abuse/dependency and family counseling, may already be 
available in the community of your housing developments and should be 
included to the maximum extent possible in your proposed program of 
activities.
    The following eligible activities under a prevention program are 
discussed in more detail below: educational opportunities; family and 
other support services; youth services; and economic and educational 
opportunities for resident adult and youth activities.
    (i) Educational Opportunities. The causes and effects of illegal 
drug/substance abuse must be discussed in a culturally appropriate and 
structured setting. You may contract (in accordance with 24 CFR 85.36) 
to provide such knowledge and skills through training programs. The 
professionals contracted to provide these services are required to base 
their services on your needs assessment and program plan. These 
educational opportunities may be a part of resident

[[Page 9747]]

meetings, youth activities, or other gatherings of public and Indian 
housing residents.
    (ii) Family and Other Support Services. ``Supportive services'' are 
services that allow housing authority families to have access to 
prevention, educational and employment opportunities. Supportive 
services may include: child care; employment training; computer skills 
training; remedial education; substance abuse counseling; help in 
getting a high school equivalency certificate; and other services to 
reduce drug-related crime.
    (iii) Youth Services. ``Educating and enabling America's youth to 
reject illegal drugs'' is Goal #1 of the Office of National Drug 
Control Policy (ONDCP) top five goals in the Nation's Drug Control 
Strategy. Activities that target youth further this goal. Proposed 
youth prevention programs must demonstrate that they have included 
groups composed of young people ages 16 through 18. Your youth 
prevention activities should be coordinated by adults but have housing 
authority youth actively involved in organizing youth leadership, 
sports, recreational, cultural and other activities. Eligible youth 
services may include: youth sports; youth leadership skills training; 
cultural and recreational activities. These youth services provide an 
alternative to drugs and drug-related criminal activity for public 
housing and Native American youth. Youth leadership skills training may 
include training in leadership, peer pressure reversal, resistance or 
refusal skills, life skills, goal planning, parenting skills, and other 
relevant topics. Youth leadership training should be designed to place 
youth in leadership roles including: mentors to younger program 
participants, assistant coaches, managers, and team captains. Cultural 
and recreational activities may include ethnic heritage classes, art, 
dance, drama and music appreciation.
    The following are eligible youth services activities:
    (1) Salaries and expenses for staff for youth sports programs and 
cultural activities and leadership training;
    (2) Sports and recreation equipment to be used by participants;
    (3) Non-profit subgrantees that provide scheduled organized sports 
competitions, cultural, educational, recreational or other activities, 
including: Boys and Girls Clubs, YMCAs, YWCAs, the Inner City Games, 
Association of Midnight Basketball Leagues.
    (4) Liability insurance costs for youth sports activities.
    (iv) Economic and Educational Opportunities for Resident Adult and 
Youth. Your proposed economic and educational activities must provide 
residents opportunities for interaction with, or referral to, 
established higher education, vocational institutions and/or private 
sector businesses in the immediate surrounding communities with the 
goal of developing or building on the residents' skills to pursue 
educational, vocational and economic goals and become self-sufficient.
    You should discuss your economic and educational opportunities for 
residents and youth activities in the context of ``welfare to work'' 
and related Federal, Tribal, State and local government efforts for 
employment training, education and employment opportunities related to 
``welfare to work'' goals. Establishing or referring adults and youth 
to computer learning centers, employment service centers (coordinated 
with Federal, Tribal, State and local employment offices), and micro-
business centers are eligible.
    Limited educational scholarships are permitted under this section. 
No one individual award may exceed $500.00, and there is a total 
maximum scholarship program cap of $10,000. Educational scholarship FY 
1999 PHDEP funds must be obligated and expended during the term of your 
grant. You must demonstrate in your plan and timetable the scholarship 
strategy; the financial and management controls that will be used; and 
projected outcomes.
    (e) Intervention. The aim of intervention is to identify or detect 
residents with substance abuse issues, assist them in modifying their 
behavior, and in getting early treatment, and structured aftercare.
    (f) Substance Abuse/Dependency Treatment. (i) Treatment funded 
under this program should be ``in and around'' the premises of the 
housing authority/development(s) you proposed for funding. In 
undertaking substance abuse/dependency treatment programs, you must 
establish a confidentiality policy regarding medical and disability 
related information.
    (ii) Funds awarded for substance abuse/dependency treatment must be 
targeted towards developing and implementing, or expanding and 
improving sobriety maintenance, substance-free maintenance support 
groups, substance abuse counseling, referral treatment services, and 
short or long range structured aftercare for residents.
    (iii) Your proposed drug program must address the following goals 
for residents:
    (1) Increasing accessibility of treatment services;
    (2) Decreasing drug-related crime ``in and around'' your housing 
authority/development(s) by reducing and/or eliminating drug use; and
    (3) Providing services designed for youth and/or adult drug abusers 
and recovering addicts (e.g., prenatal and postpartum care, specialized 
family and parental counseling, parenting classes, domestic or youth 
violence counseling).
    (iv) Approaches that have proven effective with similar populations 
will be considered for funding. You must discuss in your overall 
strategy the following factors:
    (1) Formal referral arrangements to other treatment programs in 
cases where the resident is able to obtain treatment costs from sources 
other than this program.
    (2) Family/youth counseling.
    (3) Linkages to educational and vocational training and employment 
counseling.
    (4) Coordination of services from and to appropriate local 
substance abuse/treatment agencies, HIV-related service agencies, 
mental health and public health programs.
    (v) As applicable, you must demonstrate a working partnership with 
the Single State Agency or local, Tribal or State license provider or 
authority with substance abuse program(s) coordination responsibilities 
to coordinate, develop and implement your substance dependency 
treatment proposal.
    (vi) You must demonstrate that counselors (contractual or 
otherwise) meet Federal, State, Tribal, and local government licensing, 
bonding, training, certification and continuing training re-
certification requirements.
    (vii) You must get certification from the Single State Agency or 
authority with substance abuse and dependency programs coordination 
responsibilities that your proposed program is consistent with the 
State plan; and that the service(s) meets all Federal, State, Tribal 
and local government medical licensing, training, bonding, and 
certification requirements.
    (viii) Funding is permitted for drug treatment of housing authority 
residents at local in-patient medical treatment programs and 
facilities. PHDEP funding for structured in-patient drug treatment 
under PHDEP funds is limited to 60 days, and structured drug out-
patient treatment, which includes individual/family aftercare, is 
limited to 6 months. If you are undertaking drug treatment programs, 
your proposal must demonstrate how individuals that complete drug 
treatment will be provided employment training, education and 
employment

[[Page 9748]]

opportunities related to ``welfare to work.''
    (ix) Funding is permitted for detoxification procedures designed to 
reduce or eliminate the short-term presence of toxic substances in the 
body tissues of a patient.
    (x) Funding is not permitted for maintenance drug programs. 
Maintenance drugs are medications that are prescribed regularly for a 
short/long period of supportive therapy (e.g. methadone maintenance), 
rather than for immediate control of a disorder.
    (3) Resident Management Corporations (RMCs), Resident Councils 
(RCs), and Resident Organizations (ROs). RMCs, and incorporated RCs and 
ROs, may be a subcontractor to their housing authorities, or Tribe/
TDHE, to develop security and substance abuse prevention programs for 
residents. Such programs may include voluntary tenant patrol 
activities, substance abuse education, intervention, and referral 
programs, youth programs, and outreach efforts. The elimination of 
drug-related crime within housing authorities/developments must have 
the active involvement and commitment of public and Indian housing 
residents and their organizations. Active involvement requires that 
residents be involved in the planning process and implementation.
    To enhance the ability of housing authorities, and Tribes/TDHEs, to 
combat drug-related crime within their developments, Resident Councils 
(RCs), Resident Management Corporations (RMCs), and Resident 
Organizations (ROs) may undertake program management functions, 
notwithstanding the otherwise applicable requirements of 24 CFR part 
964. Subcontracts with the RMC/RC/RO must include the amount of 
funding, applicable terms, conditions, financial controls, payment 
mechanism schedule, performance and financial report requirements, 
special conditions, including sanctions for violating the agreement, 
and monitoring requirements.
    Costs must not be incurred until a written contract is executed.
    (4) Employment of HA Security Personnel. You may employ HA security 
personnel. Employment of security personnel is divided into two 
categories: security personnel services, and housing authority police 
departments. You are encouraged to involve police officials residing in 
public housing to partake in PHDEP security-related programs. The 
following specific requirements apply to all employment of security 
personnel activities funded under PHDEP:
    (a) Compliance. Security guard personnel and public housing 
authority police departments must meet; and demonstrate compliance 
with, all relevant Federal, State, Tribal or local government 
insurance, licensing, certification, training, bonding, or other law 
enforcement requirements.
    (b) Law Enforcement Service Agreement. You must enter into a law 
enforcement service agreement with the local law enforcement agency and 
if applicable, the contract provider of security. Your service 
agreement must include:
    (i) The activities security guard personnel or the public housing 
authority police department (HAPD) will perform; the scope of 
authority; written policies, procedures, and practices that will govern 
security personnel or HAPD performance (i.e., a policy manual and how 
security guard personnel or the HAPD shall coordinate activities with 
your local law enforcement agency);
    (ii) The types of activities that your approved security guard 
personnel or the HAPD are expressly prohibited from undertaking.
    (c) Policy Manual. Security guard personnel services and PHPDs must 
be guided by a policy manual that directs the activities of its 
personnel and contains the policies, procedures, and general orders 
that regulate conduct and describes in detail how jobs are to be 
performed. The policy manual must exist before HUD will execute your 
grant agreement. To comply with State police department standards and/
or Commission on Accreditation Law Enforcement Agencies (CALEA), you 
must also ensure all security guard personnel and housing authority 
police officers are trained in the following areas. These areas must 
also be covered in your policy manual:

    (i) Use of force;
    (ii) Resident contacts;
    (iii) Enforcement of HA rules;
    (iv) Response criteria to calls;
    (v) Pursuits;
    (vi) Arrest procedures;
    (vii) Reporting of crimes and workload;
    (viii) Feedback procedures to victims;
    (ix) Citizens' complaint procedures;
    (x) Internal affairs investigations;
    (xi) Towing of vehicles;
    (xii) Authorized weapons and other equipment;
    (xiii) Radio procedures internally and with local police;
    (xiv) Training requirements;
    (xv) Patrol procedures;
    (xvi) Scheduling of meetings with residents;
    (xvii) Reports to be completed;
    (xviii) Record keeping and position descriptions on all 
personnel;
    (xix) Post assignments;
    (xx) Monitoring;
    (xxi) Self-evaluation program requirements; and
    (xxii) First aid training.

    (d) Data Management. A daily activity and incident complaint form 
approved by the housing authority must be used by security personnel 
and officers for the collection and analysis of criminal incidents and 
responses to service calls. Security guard personnel and HAPDs must 
establish and maintain a system of records management for the daily 
activity and incident complaint forms that appropriately ensures the 
confidentially of personal criminal information. Management 
Informational Systems (MIS) (computers, software, and associated 
equipment) and management personnel. Costs in support of these 
activities are eligible for funding.
    (5) Security Personnel Services. Contracting for, or direct housing 
authority employment of, security personnel services in and around 
housing development(s) is permitted under this program. However, 
contracts for security personnel services must be awarded on a 
competitive basis.
    (a) Eligible Services--Over and Above. Security guard personnel 
funded by this program must perform services that are over and above 
those usually performed by local municipal law enforcement agencies on 
a routine basis. Eligible services may include patrolling inside 
buildings, providing personnel services at building entrances to check 
for proper identification, or patrolling and checking car parking lots 
for appropriate parking decals.
    (b) Employment of Residents. HUD encourages you to employ qualified 
resident(s) as security guard personnel, and/or to contract with 
security guard personnel firms that demonstrate a program to employ 
qualified residents as security guard personnel. Since your program of 
eliminating drug-related crime should promote ``welfare to work'' an 
excellent way to implement this is to employ residents.
    (6) Employment of Personnel and Equipment for HUD Authorized 
Housing Authority Police Departments. Funding equipment and employment 
of housing authority police department (HAPD) personnel is permitted 
for housing authorities that already have HAPDs. The following 12 
housing authorities are approved by HUD as being eligible under the FY 
1999 PHDEP for these activities:

Baltimore Housing Authority and Community Development, Baltimore, MD
Boston Housing Authority, Boston, MA
Buffalo Housing Authority, Buffalo, NY

[[Page 9749]]

Chicago Housing Authority, Chicago, IL
Cuyahoga Metropolitan Housing Authority, Cleveland, OH
Housing Authority of the City of Los Angeles, Los Angeles, CA
Housing Authority of the City of Oakland, Oakland, CA
Philadelphia Housing Authority, Philadelphia, PA
Housing Authority of the City of Pittsburgh, Pittsburgh, PA
Waterbury Housing Authority, Waterbury, CT
Virgin Islands Housing Authority, Virgin Islands
District of Columbia Housing Authority, Washington, DC

    (a) Notice PIH 98-16, issued March 11, 1998, reinstated PIH 95-58 
(PHA) ``Guidelines for Creating, Implementing and Managing Public 
Housing Authority Police Departments in Public Housing Authorities).'' 
This Notice identifies prerequisites for creating HAPDs and provides 
guidance to assist housing authorities in making decisions about public 
housing security, analysis of security needs, and performance measures 
and outcomes.
    (b) Housing authorities with their own HAPDs, but that are not 
included in the list above, shall request (in writing) to be recognized 
by HUD as a HAPD. The written request must be sent to the Office of the 
Deputy Assistant Secretary for Public and Assisted Housing Delivery, 
Public and Indian Housing, Department of Housing and Urban Development, 
Room 4204, 451 Seventh Street, SW, Washington, D.C. 20410. This request 
must be approved by HUD before you submit your FY 1999 PHDEP 
application.
    (c)(i) HAPDs funded under this program that are not nationally or 
state accredited must submit a plan and timetable for such 
accreditation. Housing authorities may use either their State 
accreditation program, if one exists, or the Commission on 
Accreditation for Law Enforcement Agencies (CALEA) for this purpose. 
Use of grant funds for HAPD accreditation activities is permitted.
    (ii) Housing authorities receiving grants for funding HAPDs are 
required to hire an HAPD accreditation specialist to manage the 
accreditation program. HAPDs must submit a plan and timetable to be 
funded for this activity. If you have a public housing police 
department funded under the FY 1996, 1997, or 1998 PHDEP you must 
demonstrate in your plan what progress you made in implementing your 
accreditation program and the projected date of accreditation. HUD will 
monitor results of your plan and timetable. HAPDs not meeting their 
timetables will be ineligible for funding in FY 2000.
    (d) If you are an applicant seeking funding for this activity, you 
must describe the current level of local law enforcement agency 
baseline services being provided to the housing authority/
development(s) proposed for assistance. Local law enforcement baseline 
services are defined as ordinary and routine services provided to the 
residents as part of the overall city and/or county-wide deployment of 
police resources to respond to crime and other public safety incidents 
including: 911 communications, processing calls for service, routine 
patrol officer responses to calls for service, and investigative 
follow-up of criminal activity.
    (e) If you are requesting funding for housing authority public 
housing authority police department officers, you must have car-to-car 
(or other vehicles) and portable-to-portable radio communications links 
between public housing authority police officers and local law 
enforcement officers to assure a coordinated and safe response to 
crimes or calls for services. The use of scanners (radio monitors) is 
not sufficient to meet the requirements of this section. If you do not 
have such links you must submit a plan and timetable for the 
implementation of such communications links. This activity is eligible 
for funding. If you were a housing authority funded under the FY 1994, 
1995, 1996, 1997, and/or 1998 PHDEP for public housing police 
departments, you must demonstrate what progress has been made in 
implementing its planned communications links.
    (f) HAPDs funded under this program that are not employing a 
community policing concept must submit a plan and timetable for the 
implementation of community policing with their application for 
funding. If you were a housing authority funded under the FY 1994, 
1995, 1996, 1997, or 1998 PHDEP for HAPDs shall demonstrate what 
progress they have made in implementing a community policing program.
    (g) Community policing under PHDEP is defined as a method of 
providing law enforcement services partnership among residents, police, 
schools, churches, government services, the private sector, and other 
local, State, Tribal, and Federal law enforcement agencies to prevent 
crime and improve the quality of life by addressing the conditions and 
problems that lead to crime and fear of crime. Community policing uses 
proactive measures including foot patrols, bicycle patrols, and motor 
scooters patrols. It also includes KOBAN activities where police 
officers operate out of police mini-stations, and other community-based 
facilities in housing authorities providing human resource activities 
with youth), and citizen contacts. This concept empowers police 
officers at the beat and zone level and residents in neighborhoods to:
    (i) Reduce crime and fear of crime;
    (ii) Ensure the maintenance of order;
    (iii) Provide referrals of residents, victims, and homeless persons 
to social services and government agencies;
    (iv) Ensure feedback of police actions to victims of crime; and
    (v) Promote a law enforcement value system based on the needs and 
rights of residents.
    For additional information regarding KOBAN community policing 
contact Cedric Brown, (202) 708-1197, extension 4057.
    (h) Authorized PHPDs can purchase or lease law enforcement clothing 
or equipment. Eligible law enforcement clothing or equipment may 
include uniforms and protective vests; firearms/weapons and ammunition; 
police vehicles including cars, vans, buses; or other equipment 
supporting PHPDs crime prevention and security mission. If you have not 
been identified by HUD as having an authorized PHPD, you are not 
permitted to use PHDEP funds to purchase any clothing or equipment for 
use by local municipal police departments and/or other law enforcement 
agencies.
    (7) Reimbursement of Local Law Enforcement Agencies for Additional 
(Supplemental--Over and Above Local Law Enforcement Baseline Services) 
Security and Protective Services. Additional security and protective 
services are permitted if services are over and above the local police 
department's current level of baseline services. Housing authorities, 
Tribes, and TDHEs are required to identify the level of local law 
enforcement services received and the increased level of services to be 
received in their local Cooperation Agreement.
    (8) Employment of Investigators. Employment of, and equipment for, 
one or more individuals to investigate drug-related crime ``in and 
around'' the real property comprising your development(s) and providing 
evidence relating to such crime in any administrative or judicial 
proceedings is permitted. Under this section, reimbursable costs 
associated with the investigation of drug-related crimes (e.g., travel 
directly related to the investigator's activities, or costs associated 
with the investigator's testimony at judicial or administrative 
proceedings) may only be those directly incurred by the investigator.

[[Page 9750]]

    (a) If you are a housing authority that employs investigators 
funded by this program, you must demonstrate compliance with all 
relevant Federal, Tribal, State or local government insurance, 
licensing, certification, training, bonding, or other similar law 
enforcement requirements.
    (b) Both you and the provider of the investigative services are 
required to execute a written agreement that describes the following:
    (i) The activities that your investigators will perform, their 
scope of authority, reports to be completed, established investigative 
policies, procedures, and practices that will govern their performance 
(i.e., a Policy Manual; and how your investigators will coordinate 
their activities with local, State, Tribal, and Federal law enforcement 
agencies); and prohibited activities.
    (ii) The activities the housing authority/Tribal investigators are 
expressly prohibited from undertaking.
    (c) Your investigator(s) may use PHDEP funds to purchase or lease 
any law enforcement clothing or equipment, such as vehicles, uniforms, 
ammunition, firearms/weapons, or vehicles; including cars, vans, buses, 
protective vests, and any other supportive equipment.
    (d) Your investigator(s) shall report on drug-related crime in your 
developments. You must establish, implement and maintain a system of 
records management that ensures confidentiality of criminal records and 
information. Housing authority-approved activity forms must be used for 
collection, analysis and reporting of activities by your investigators. 
You are encouraged to develop and use Management Information Systems 
(MIS) (Computers, software, hardware, and associated equipment) and 
hire management personnel for crime and workload reporting in support 
of your crime prevention and security activities.
    (e) You may not expend funds and funds will not be released by the 
local HUD Field Office/AONAP until you have met the requirements of 
(6)(i)(d).
    (9) Voluntary Tenant Patrols. HUD believes the elimination of drug-
related crime within and around the housing authority/development(s) 
requires the active involvement and commitment of residents and their 
organizations. Members of tenant patrols must be volunteers and must be 
residents of the housing authority's development(s). Voluntary tenant 
patrols are expected to patrol in your development(s) proposed for 
assistance, and to report illegal activities to appropriate housing 
authority staff, and local, State, Tribal, and Federal law enforcement 
agencies, as appropriate.
    (a) Training equipment, uniforms) for use by voluntary tenant 
patrols acting in cooperation with officials of local law enforcement 
agencies is permitted. All costs must be reasonable, necessary and 
justified. Bicycles, motor scooters, all season uniforms and associated 
equipment to be used, exclusively, by the members of your voluntary 
tenant patrol are eligible items. Voluntary tenant patrol uniforms and 
equipment must be identified with your specific housing authority/
development(s) identification and markings.
    (b) Housing authorities are required to obtain liability insurance 
to protect themselves and the members of the voluntary tenant patrol 
against potential liability for the activities of the patrol under this 
program. The cost of this insurance is eligible.
    (c) If you are funding voluntary tenant patrol activities, you, 
your local law enforcement agency, and the tenant patrol, before 
expending grant funds, are required to execute a written agreement that 
includes:
    (i) The nature of the activities to be performed by your voluntary 
tenant patrol, the patrol's scope of authority, assignment, policies, 
procedures, and practices that will govern the voluntary tenant 
patrol's performance and how the patrol will coordinate its activities 
with the law enforcement agency;
    (ii) The activities the voluntary tenant patrol is expressly 
prohibited from undertaking and that the carrying or use of 
firearms,weapons, nightsticks, clubs, handcuffs, or mace is prohibited;
    (iii) Required initial and on-going voluntary tenant patrol 
training members will receive from the local law enforcement agency; 
(Please note that training by HUD-approved trainers and/or the local 
law enforcement agency is required before putting a voluntary tenant 
patrol into effect); and
    (iv) Voluntary tenant patrol members will be subject to individual 
or collective liability for any actions undertaken outside the scope of 
their authority (described in paragraph (ii) above) and that such acts 
are not covered under your housing authority liability insurance.
    (d) PHDEP grant funds must not be used for any type of financial 
compensation, such as full-time wages or salaries for voluntary tenant 
and/or patrol participants. Funding for housing authority personnel or 
resident(s) to be hired to coordinate this activity is permitted. 
Excessive staffing is not submitted.
    (10) Evaluation of PHDEP Activities. Funding is permitted to 
contractually hire organizations and/or consultant(s) to conduct an 
independent assessment and evaluation of the effectiveness of your 
PHDEP program. You should include in your plan and budget contracting 
with an independent survey organization to conduct an annual resident 
survey in your targeted developments/areas. The amount of funding 
proposed for conducting assessments or evaluations should be necessary, 
reasonable, and justified. However, even except if adequately 
justified, HUD would not expect that this cost should exceed ten (10) 
percent of the total grant amount requested.
    (11) High Intensity Drug Trafficking Areas (HIDTAs). Funding may be 
used for activities to eliminate drug-related crime in housing owned by 
a public housing agency that is not public housing assisted under the 
United States Housing Act of 1937 and is not otherwise federally 
assisted. For example, housing that receives tenant subsidies under 
Section 8 is federally assisted and would not qualify, but housing that 
receives only State, Tribal, or local assistance would qualify if it 
meets the following two requirements:
    (a) The housing is located in a high intensity drug trafficking 
area designated pursuant to Section 1005 of the Anti-Drug Abuse Act of 
1988 (see Appendix A); and
    (b) The PHA owning the housing demonstrates, on the basis of 
information submitted, that the drug-related crime at the housing 
authority project has a detrimental affect in or around the housing.
    The High Intensity Drug Trafficking Areas (HIDTAs) are areas 
identified as having problems that adversely impact the rest of the 
country.

(D) Ineligible Activities.

    PHDEP funding is not permitted for any of the activities listed 
below, unless otherwise specified in this PHDEP section of the 
SuperNOFA.
    (1) Costs incurred before the effective date of your grant 
agreement (Form HUD-1044), including, but not limited to, consultant 
fees related to the development of your application or the actual 
writing of your application.
    (2) The purchase of controlled substances for any purpose. 
Controlled substance shall have the meaning provided in section 102 of 
the Controlled Substance Act (21 U.S.C. 802).
    (3) Compensation of informants, including confidential informants. 
These should be part of the baseline services provided and budgeted by 
local law enforcement agencies.

[[Page 9751]]

    (4) Direct purchase or lease of clothing or equipment, vehicles 
(including cars, vans, and buses), uniforms, ammunition, firearms/
weapons, protective vests, and any other supportive equipment for use 
in law enforcement or military enforcement except for HAPDs and 
investigator activities listed in this program section of the 
SuperNOFA.
    (5) Construction of facility space in a building or unit, and the 
costs of retrofitting/modifying existing buildings owned by the housing 
authorities and TDHEs for purposes other than: community policing mini-
station operations, adult/youth education, employment training 
facilities, and drug abuse treatment activities.
    (6) Organized fund raising, advertising, financial campaigns, 
endowment drives, solicitation of gifts and bequests, rallies, marches, 
community celebrations, stipends and similar expenses.
    (7) Court costs and attorneys fees related to screening or evicting 
residents for drug-related crime are not allowable.
    (8) PHDEP grant funds cannot be transferred to any Federal agency.
    (9) Costs to establish councils, resident associations, resident 
organizations, and resident corporations are not allowable.
    (10) Indirect costs are not allowable.
    (11) Supplant existing positions/activities. For purposes of the 
PHDEP, supplanting is defined as ``taking the place of or to 
supersede''.
    (12) Alcohol-exclusive activities and programs are not eligible for 
funding under this program section of the SuperNOFA, although 
activities and programs may address situations of multiple abuse 
involving controlled substances and alcohol. This is because under law, 
PHDEP is limited to only controlled substances.

IV. Program Requirements

    Your application must meet all the applicable threshold 
requirements described in Section II.B. of the General Section of this 
SuperNOFA. In addition to the program requirements listed in the 
General Section of this SuperNOFA, the following are requirements 
specific to PHDEP:

(A) Maximum Grant Award Amounts

    HUD is distributing grant funds for PHDEP under this SuperNOFA on a 
national competition basis. Maximum grant award amounts are computed 
for PHDEP on a sliding scale, using an overall maximum cap, depending 
upon the number of housing authority, tribe or TDHE units eligible for 
funding.
    (1) PHAs. (a) The unit count includes rental, Turnkey III 
Homeownership, and Section 23 leased housing bond-financed projects. 
Eligible units are those that are under management and fully developed, 
and must be covered by an ACC during the period of grant award. In 
determining unit count for PHA-Owned Rental Housing, a long-term 
vacancy unit as defined in 24 CFR 990.102 is included in the count.
    (b) PHAs preparing PHDEP applications are required to confirm/
validate the unit count with the local Field Office (Office of Public 
Housing) before you submit your application. Field Offices shall not 
include non-Federally Assisted Housing located in High Intensity Drug-
Trafficking Areas in the unit count. Confirmation/Validation may be 
given if the unit count to be used for a particular program (e.g., PHA-
Owned Rental) is the same as the unit count reflected on a PHA's most 
recently approved Operating Budget (Form HUD-52564) and/or subsidy 
calculation (Form HUD-52723) submitted for that program. Field Offices 
that have PHAs that are not required to submit either of these forms 
may confirm/validate the PHDEP unit count if it is the same as the most 
recently submitted Form HUD-51234. Field Offices in validating the unit 
count shall not include Non-Federally Assisted Housing units located in 
High Intensity Drug-Trafficking Areas.
    (2) Tribes and TDHEs. (a) The unit count includes rental, Turnkey 
III and Mutual Help Homeownership units which have not been conveyed to 
a homebuyer, and Section 23 lease housing bond-financed projects. Such 
units must be counted as Current Assisted Stock under the Indian 
Housing Block Grant Program.
    (b) Eligible units are those units which are under management and 
fully developed. However, you should note that in determining the unit 
count for PHA-owned or Native American rental housing, a long-term 
vacancy unit, as defined in 990.102 or 24 CFR 950.102 (as revised May 
1, 1996), is still included in the count. If you are an applicant for 
Native American housing developments, you must certify that the 
targeted units were covered by an Annual Contributions Contract (ACC) 
on September 30, 1997.
    (c) Use the number of units counted as Formula Current Assisted 
Stock for Fiscal Year 1999 as defined in 24 CFR 1000.316.
    (3) FY 1999 grant award amounts. (i) If you are a PHA, Tribe, or 
TDHE with 1-1,250 units: The maximum grant award cap is $300.00 
multiplied by the number of eligible units.
    (ii) If you are a PHA, Tribe, or TDHE with 1,251-24,999 units: The 
maximum grant award is $260.00 multiplied by the number of eligible 
units.
    (iii) If you are a PHA, Tribe, or TDHE with 25,000-49,999 units: 
The maximum grant award is $230.00 multiplied by the number of eligible 
units.
    (iv) If you are a PHA, Tribe, or TDHE with 50,000 or more units: 
The grant award is $200.00 multiplied by the number of eligible units; 
up to, but not to exceed, a maximum grant award of $35 million.
    You can not apply for more funding than is permitted in accordance 
with the maximum grant award amounts described above. If you request 
funding that exceeds the maximum grant award amount permitted your 
application will be rejected and you will not be eligible for any 
funding, unless a computational error was involved in the funding 
request.

(B) Complying With Civil Rights Requirements

    To protect and insure the civil rights of occupants of HUD-
sponsored housing and residents around that housing, your proposed 
strategies should ensure that you do not undertake crime-fighting and 
drug prevention activities that violate civil rights and fair housing 
statutes. You may not use race, color, sex, religion, national origin, 
disability or familial status to profile persons as suspects or 
otherwise target them in conducting these activities. You are 
encouraged to involve as many segments of your intended population as 
possible in developing and implementing your strategies.

(C) Section 3 Economic Opportunity

    Please see Section II of the General Section of this SuperNOFA. 
Section 3 may be applicable to some of your activities funded by this 
PHDEP NOFA.

(D) Confidentiality of Records Requirements

    You must establish a confidentiality policy regarding medical and 
disability-related information for programs involving prevention, 
intervention, or substance abuse/dependency treatment and aftercare.

(E) Commingling of Funds

    Housing authorities must not co-mingle funds of multiple HUD 
programs including: CIAP; CGP; OTAR; EDSS; TOP; IHBG; HOPE projects; 
Family Investment; Elderly Service Coordinator; and Operating Subsidy.

[[Page 9752]]

(F) Term of Grant

    Your grant funds must be expended within 24 months after HUD 
executes a Grant Agreement. There will be no extensions of this grant 
term and at the end of the grant term all unspent funds will be 
returned to HUD.

(G) Reports and Closeout

    (1) In accordance with 24 CFR 761.35, if funded, you are required 
to submit semiannually a PHDEP Semi-Annual Performance Report and the 
Semi-Annual Financial Status Report (SF-269A) to the appropriate HUD 
Field Office.
    (2) In the past, the PHDEP Semi-Annual Performance report was often 
referred to as the ``narrative'' report. For FY 1999 PHDEP grants, HUD 
will be requiring more specific data to facilitate providing more 
meaningful performance information to comply with the requirements of 
the Government Performance and Results Act (GPRA), and to provide 
greater assurance that the program activities undertaken are effective 
in reducing drugs and drug-related or violent crime in areas targeted 
by PHDEP funds. These reports will evaluate your overall performance 
under the grant, against the baselines and goals and objectives 
contained in your approved FY 99 application.
    (3) For FY 1999 grants, HUD will require selected applicants to 
report semiannually on their progress in reducing drugs and drug-
related crime using the objective Part I and Part II crime data as a 
baseline and the specific percentage reduction goals within targeted 
areas over the 24 month grant period as stated in your application. HUD 
will also be requiring you to report the number of full-time equivalent 
positions for law enforcement and security services. Thirdly, you will 
be reporting on PHDEP-supported activities for residents broken out by: 
(1) youth; and (2) adults, families, or communities. For each category 
of PHDEP-supported activities, other than law enforcement, you will be 
required to report program or activity goals that are specific, 
measurable and were contained in your application, the results achieved 
and the total hours of participation in the activity. Lastly, you will 
be required to have an independent survey organization conduct an 
annual resident survey within the PHDEP targeted developments to 
determine if residents feel safer than before PHDEP activities began.
    (4) These PHDEP Semi-Annual Performance Reports shall cover the 
periods ending June 30 and December 31, and must be submitted to HUD by 
July 30 and January 31 of each year. You must submit these reports 
electronically. Access to grants funds will be denied if these reports 
are not received on a timely basis.
    (5) At grant completion, you must comply with the closeout 
requirements described in Public Housing Notice PIH 98-60 (HA), 
entitled ``Grant Closeout Procedures,'' and, when appropriate, in the 
return of grant funds not expended according to applicable 
requirements.

(H) Affirmatively Furthering Fair Housing

    The first two sentences of the requirement in Section II.(D) of the 
General Section of this SuperNOFA do not apply to this program.

V. Application Selection Process

(A) Rating and Ranking

    (1) General. HUD will rate and rank applications based on the 5 
rating factors listed in Section V(B) of this PHDEP section of the 
SuperNOFA, below. HUD will select and fund the highest ranking 
applications based on total score, and continue the process until all 
funds allocated to it have been awarded or to the point where there are 
insufficient acceptable applications for to award funds. The maximum 
number of points for this program is 102. This includes two EZ/EC bonus 
points, as described in the General Section of the SuperNOFA, and 
included under Rating Factor 3.
    (2) Tiebreakers. In the event of a tie, HUD will select the highest 
ranking application that can be fully funded. In the event that two 
eligible applications receive the same score, and neither can be funded 
because of insufficient funds, the applicant with the highest score in 
rating factor two will be funded. If rating factor two is scored 
identically, the scores in rating factors one and four will be compared 
in that order, until one of the applications receives a higher score. 
If both applications still score the same then the application which 
requests the least funding will be selected in order to promote the 
more efficient use of resources.
    (B) Factors For Award to Evaluate and Rank Applications. Your 
application must address the five (5) factors, and subfactors listed 
below. The maximum number of points for this program is 102. This 
includes the two bonus points for EZ/EC. Your application must receive 
a score of at least 70 points to be eligible for funding.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points)
    This factor addresses the extent to which you have the capacity, 
the proper organizational experience and resources to implement the 
proposed activities in a timely and effective manner. The rating of the 
``applicant'' or the ``applicant's organization and staff'' for 
technical merit, unless otherwise specified, includes any 
subcontractors, consultants, subrecipients, and members of consortia 
which are firmly committed to your project. In rating this factor, HUD 
will consider the following:
    (1) (10 points.) The knowledge and experience of your staff and 
your administrative capability to manage grants of this size and type. 
This includes your administrative support and procurement entities, 
defined organizational lines of authority, and demonstrated fiscal 
management capacity.
    (2) (10 points.) Past performance in administering Drug Elimination 
grants and/or other Federal, state or local grants of similar size and 
complexity during the last 3 years.
    You must identify your participation in HUD grant programs within 
the last three years and discuss the degree of your success in 
implementing planned activities, achieving program goals and 
objectives, timely drawdown of funds, timely submission of required 
reports with satisfactory outcomes within budget and schedule, audit 
compliance, whether there are, and the extent of any, unresolved 
findings and/or outstanding recommendations from prior HUD reviews or 
audits undertaken by HUD, HUD-Office of Inspector General, the General 
Accounting Office (GAO) or independent public accountants (IPAs). For 
PHAs (and TDHEs that had previously applied as IHAs), HUD will consider 
the results of: PHMAP and more specifically Security Indicator #8, 
physical inspections, agency monitoring of records, Line of Credit 
Control System Reports (LOCCS) on the status of prior grants, audits 
and other relevant information available to HUD on your capacity to 
undertake this grant.
    In response to HUD-OIG audit findings concerning outstanding, 
unexpended PHDEP funds remaining from prior grants, HUD will reduce 
your score by two (2) points for every open PHDEP grant for FY 91 
through FY 95 without HUD approved extensions or waivers. HUD will use 
the LOCCS disbursement system as of the date the application is 
received to verify grant status.

[[Page 9753]]

Rating Factor 2: Need/Extent of the Problem (25 Points)
    This factor examines the extent to which there is a need for 
funding the proposed program activities to address a documented problem 
in your proposed target area (i.e., the degree of the severity of the 
drug-related crime problem in the project proposed for funding). In 
responding to this factor, you will be evaluated on: (1) the extent to 
which a critical level of need for your proposed activities is 
explained; and (2) the urgency of meeting the need in the target area. 
You must include in your response a description of the extent and 
nature of drug-related crime ``in or around'' the housing units or 
developments proposed for funding.
    Applicants will be evaluated on the following:
    (1) (20 points) ``Objective Crime Data'' relevant to your target 
area. To the extent that you can provide objective drug-related crime 
data specific to the community or targeted development proposed for 
funding, you will be awarded up to 20 points. Objective crime data must 
include the most current and specific Part I Crime data and relevant 
Part II Crime data available from the FBI's Uniform Crime Reporting 
Program (UCR) system or the local law enforcement's crime statistics. 
Part I Crimes include: homicide; rape; robbery; aggravated assault; 
burglary; larceny; auto theft; and arson. Part II drug-related crimes 
include: drug abuse violations; simple assault; vandalism; weapons 
violations; and other crimes which you are proposing to be targeted as 
part of your grant. In assessing this subfactor, HUD will consider the 
extent of specificity that the statistical data is provided and the 
data's specificity to the targeted sites (e.g., data specific to those 
targeted developments proposed for funding by Part I crime type versus 
HA/TDHE-wide data by aggregated Part I crimes).
    The objective crime data provided in your application will become a 
``baseline'' against which the success of your grant activities will be 
measured if funded. You will also be required to report not only this 
objective crime data in your first PHDEP Semiannual Performance Report 
but your goal(s) for reducing drug-related crime in the developments 
targeted under your grant. Your grant will be measured against these 
targets. This information will also support the ONDCP's National Drug 
Control Strategy's Goal 2 to, ``increase the safety of America's 
citizens by substantially reducing drug-related crime and violence.''
    If you can not provide objective crime data, you will receive 5 
points for including:
    (a) The reasons why objective crime data can not be obtained;
    (b) The efforts being made to obtain it;
    (c) What efforts will be made during the grant period to begin 
obtaining the data; and
    (d) An explanation of how you plan to measure how grant activities 
will result in reducing drug-related crime in the targeted developments 
and what will be used as a baseline. If you can not provide objective 
crime data and are awarded an FY 99 PHDEP grant, you will be required 
to provide baseline objective crime data in your first PHDEP semi-
annual report. Such data may include police records or other verifiable 
information from records on the types or sources of drug related crime 
in the targeted developments and surrounding area, PHA/Tribe or TDHE 
wide, or at jurisdictional level.
    (2) (5 Points) Other Data Supporting the extent of Drug and Drug-
related Crime. You must identify supporting data indicating the extent 
of drugs and drug-related crime problems in the developments proposed 
for assistance under your program. HUD will consider the extent and 
quality of the data provided. Examples of the data include:
    (a) Surveys of residents and staff in your targeted developments 
about drugs and drug-related crime or on-site reviews to determine 
drug/crime activity;
    (b) Government or scholarly studies or other research in the past 
year that analyze drug-related crime activity in your targeted 
developments.
    (c) Annual vandalism cost at your targeted developments, to include 
elevator vandalism (where appropriate) and other vandalism attributable 
to drug-related crime as a ratio to total annual approved budget for 
the targeted developments.
    (d) Information from schools, health service providers, residents 
and Federal, State, local, and Tribal officials, and the verifiable 
opinions and observations of individuals having direct knowledge of 
drug-related crime and the nature and frequency of these problems in 
developments proposed for assistance. (These individuals may include 
Federal, State, Tribal, and local government law enforcement officials, 
resident or community leaders, school officials, community medical 
officials, substance abuse, treatment (dependency/remission) or 
counseling professionals, or other social service providers).
    (e) The school dropout rate and level of absenteeism for youth that 
you can relate to drug-related crime as a percentage or ratio of the 
rate outside the area.
    (f) To the extent that your community's Consolidated Plan 
identifies the level of the problem and the urgency in meeting the 
need, references to these documents should be included in your 
response. The Department will review more favorably applicants who used 
these documents to identify need, when applicable.
    (g) The number of lease terminations or evictions for drug-related 
crime at the targeted developments; and
    (h) The number of emergency room admissions for drug use or that 
result from drug-related crime. Such information may be obtained from 
police Departments and/or fire departments, emergency medical service 
agencies and hospitals.
    (i) The number of police calls for service from housing authority 
developments that include resident initiated calls, officer-initiated 
calls, domestic violence calls, drug distribution complaints, found 
drug paraphernalia, gang activity, graffiti that reflects drugs or 
gang-related activity, vandalism, drug arrests, and abandoned vehicles. 
You should show these as a ratio of calls for service to calls in the 
community as a whole.
Rating Factor 3: Soundness of Approach--(Quality of the Plan) (35 
Points)
    This factor examines the quality and effectiveness of your proposed 
work plan. In rating this factor, HUD will consider the impact of your 
activities on the drug and drug-related crime problems identified in 
Factor 2 and the extent to which you identify attainable goals, 
objectives, and performance measures to ensure that; tangible benefits 
can be attained by the community and by your target population.
    Your application must include a detailed narrative describing: each 
proposed activity for your developments proposed for assistance; the 
amount and extent of resources committed to each activity or service 
proposed; measurable goals and objectives for all major program 
activities that focus on outcome and results; and the process used to 
collect the data needed to report progress made against these goals.
    In evaluating this factor, HUD will consider the following:
    (1) The quality of your plan to address the drug-related crime 
problem, and the problems associated with drug-related crime in your 
developments proposed for funding, the resources allocated, and how 
well the proposed activities fit with the plan, including:

[[Page 9754]]

    (a) The extent to which you have stated:
    (i) Performance goals that will measure program outcomes;
    (ii) The actual baseline data which will establish a starting point 
against which program outcomes will be measured and stated expected 
results for all major grant activities proposed in your application;
    (iii) What performance measurement system exists for providing 
information to HUD semi-annually on progress made in achieving the 
established outcome goals. Please note: If your application is funded, 
this information will be the basis for required semi-annual reporting 
throughout your grant period.
    (b) The extent to which you have designed your major activities to 
meet stated, measurable goals and objectives for drug and drug-related 
crime reduction. The extent to which your goals and objectives focus on 
program outcomes and results in addition to ``process or output'' data 
measures. While measures of process or outputs (number of residents 
trained) are important, they do not measure program outcomes. Outcomes 
include accomplishments, results, impact, and the ultimate effects of 
your program on the drug or crime problem in your target/project area. 
The goals must be objective, quantifiable, and/or qualitative and they 
must be stated in such a way that at the end of the 24 month grant, one 
can determine if the activities were effective.
    (c) The extent and quality of your plan in defining specific crime 
reduction goals that are specific and measurable, and defining 
``baselines from objective crime'' data in Factor 2. For example, 
eliminate or reduce crime and drug-related crime is not specific nor 
measurable, whereas a goal of, ``reducing Part 1 reported homicides or 
Part II drug abuse, etc. by 5% in development X by the end of the 24 
month grant period based on measurements against the baseline year 
crime selection rate in the targeted development X as stated in the 
application,'' is specific and measurable.
    (d) The rationale for your proposed activities and methods used 
including evidence that proposed activities have been effective in 
similar circumstances in controlling drug-related crime. If you are 
proposing new methods for which there is limited knowledge of the 
effectiveness, you should provide the basis for modifying past 
practices and rationale for why you believe the modification will yield 
more effective results.
    If you are proposing PHDEP supported activities for residents, HUD 
will evaluate the quality and extent to which you provide measurable, 
specific and objective goals and objectives for your major activities 
and programs; and how the data to measure success against your goals 
will be obtained. HUD will award greater points if you report youth 
activities separately from activities for families, adults, or 
communities.
    (2) Two bonus points will be awarded for EZs/ECs as described in 
the General Section of this SuperNOFA. For bonus points related to 
activities located in Empowerment Zones or Enterprise Communities, the 
applicant must demonstrate that there is a connection between such EZ 
or EC and tenant, local government, and local community support and 
participation in the design and implementation of the proposed 
activities to be funded under this program.
Rating Factor 4: Leveraging Resources--(Support of Residents, the Local 
Government and the Community in Planning and Implementing the Proposed 
Activities) (10 Points)
    This factor addresses your ability to secure community and 
government resources that can be combined with HUD's program resources 
to achieve program purposes.
    (1) In assessing this factor, HUD will consider the following:
    (a) Evidence of commitment of funding, staff, or in-kind resources, 
partnership agreements, and on-going or planned cooperative efforts 
with law enforcement agencies, memoranda of understanding, or 
agreements to participate. Such commitments must be signed by an 
official of the organization legally able to make commitments for the 
organization.
    (b) This evidence of commitment must include organization name, 
resources, and responsibilities of each participant. This also includes 
interagency activities already undertaken, participation in local, 
state, Tribal or Federal anti-drug related crime efforts such as: 
education, training and employment provision components of Welfare 
Reform efforts, ``One Strike and You're Out,'' Operation Weed and Seed, 
Neighborhood Networks, Campus of Learners, Computerized Community 
Connections, Operation Safe Home, Safe Neighborhood Anti-drug Program 
(SNAP), local law enforcement initiatives and/or successful 
coordination of its law enforcement, or other activities with local, 
state, Tribal or Federal law enforcement agencies. Additional points 
will be given if your activities supporting these efforts extend beyond 
the 24 month grant period.
    (2) In evaluating this factor, HUD will also consider the extent to 
which these initiatives are used to leverage resources for your housing 
authority community, and are part of the comprehensive plan and 
performance measures outlines in Rating Factor 3, Soundness of 
Approach--Quality of the Plan.
    (a) Your application must describe what role residents in your 
targeted developments, applicable community leaders and organizations, 
and law enforcement agencies have had in planning the activities 
described in your application and what role they will have in carrying 
out such activities.
    (b) Your application must include a discussion of the extent to 
which community representatives and Tribal, local, state and Federal 
Government officials, including law enforcement agency officials were 
actively involved in the design and implementation of your plan and 
will continue to be involved in implementing such activities during and 
after the period of your PHDEP funding.
    (c) Your application must demonstrate the extent to which the 
relevant governmental jurisdiction has met its local law enforcement 
obligations under the Cooperation Agreement with your organization (as 
required by the Annual Contributions Contract with HUD). You must 
describe the current level of baseline local law enforcement services 
being provided to your housing authority/developments proposed for 
assistance.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you have coordinated your 
activities with other known organizations, participate or promote 
participation in your Community's Consolidated Planning Process, and is 
working towards addressing a need in a holistic and comprehensive 
manner through linkages with other activities in your community. In 
evaluating this factor, HUD will consider the extent to which you can 
demonstrate you have:
    (1) Coordinated your proposed activities with those of other groups 
or organizations prior to submission in order to best complement, 
support and coordinate all known activities and if funded, the specific 
steps you will take to share information on solutions and outcomes with 
others. Any written agreements, memoranda of understanding in place, or 
that will be in place after award should be described.

[[Page 9755]]

    (2) Taken or will take specific steps to become active in your 
community's Consolidated Planning process (including the Analysis of 
Impediments to Fair Housing Choice) established to identify and address 
a need/problem that is related to the activities you propose.
    (3) Taken or will take specific steps to develop linkages to 
coordinate comprehensive solutions through meetings, information 
networks, planning processes or other mechanisms with:
    (a) Other HUD-funded projects/activities outside the scope of those 
covered by the Consolidated Plan; and
    (b) Other Federal, State, or locally funded activities, including 
those proposed, or on-going in the community.

VI. Application Submission Requirements

    (A) You must comply with the submission requirements described in 
the General Section of the SuperNOFA. To qualify for a grant under this 
program, your application submitted to HUD must also include those 
requirements listed under Section V., above, of the PHDEP section of 
this SuperNOFA, including the plan to address the problem of drug-
related crime in the developments proposed for funding. You must 
accurately complete the form for HUD's application database entry. The 
form, with examples, is provided in the application kit.
    (B) You must submit no more than one application per housing 
authority (or per Tribe or TDHE on behalf of the Tribe) for each drug 
elimination program contained in this PHDEP section of the SuperNOFA. 
In addition, joint applications that include more than one housing 
authority (or TDHE representing the Tribe) are permitted only in those 
cases where the HAs have a single administration (such as HAs managing 
another HA under contract or HAs sharing a common executive director). 
In those cases, a separate budget, plan and timetable, and unit count 
shall be supplied in the application. In addition, you must respond to 
the factors for award for each HA for which you are acting as 
administrator and requesting funds, if your responses would be 
different (e.g., the HAs are in different jurisdictions and, therefore, 
the Consolidated Plans, crime data, etc. would all be different). The 
application kit includes the forms, certifications and assurances 
listed in the General Section of the SuperNOFA.
    (C) Each PHDEP application must conform to the requirements of this 
PHDEP section of the SuperNOFA and the PHDEP application kit, both in 
format and content. Each PHDEP application must include the following 
items:
    (1) An application cover letter.
    (2) A summary of the proposed program activities in five (5) 
sentences or less.
    (3) A description of the subgrantees, if applicable. The 
description must include the names of the subgrantees, as well as the 
relative roles and contributions of each subgrantee in implementing the 
PHDEP grant activities.
    (4) An overall budget and timetable that includes separate budgets, 
goals, and timetables for each activity, and addresses milestones 
towards achieving each described goal. You must also describe the 
contributions and implementation responsibilities of each partner for 
each activity, goal, and milestone.
    (5) A description of the number of staff, the titles, professional 
qualifications, and respective roles of the staff assigned full or 
part-time to grant implementation.
    (6) Your plan and lines of accountability (including an 
organization chart) for implementing the grant activity, coordinating 
the partnership, and assuring that the commitment made by you and your 
subgrantees will be met.

VII. Corrections to Deficient Applications

    The General Section of this SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    It is anticipated that activities under the PHDEP will be 
categorically excluded under 24 CFR 50.19(b)(4), (b)(12), or (b)(13). 
If grant funds will be used to cover the cost of any non-exempt 
activities, HUD will perform an environmental review to the extent 
required by 24 CFR part 50, prior to grant awards.

IX. Authority

    Chapter 2, Subtitle C, Title V of the Anti-Drug Abuse Act of 1988 
(42 U.S.C. 11901 et. seq), as amended by section 581 of the National 
Affordable Housing Act of 1990 (Pub.L. 101-625, approved November 28, 
1990) (NAHA), and section 161 of the Housing and Community Development 
Act of 1992 (Pub.L. 102-550, approved October 28, 1992 (HCDA 1992). The 
regulations for this program are found in 24 CFR part 761, Drug 
Elimination Programs.

Appendix A

    Additional Information on High Intensity Drug Trafficking Areas 
(HIDTAs). These areas are designated as HIDTAs by the Director, 
Office of National Drug Control Policy (ONDCP), pursuant to the 
Anti-Drug Abuse Act of 1988. As of October 30, 1998, the following 
areas were confirmed by the ONDCP as designated HIDTAs:

--New York/New Jersey HIDTA consists of the city of New York and all 
the municipalities therein and Nassau, Suffolk, and Westchester 
Counties (in New York), and Union, Hudson, Essex, Bergen, and 
Passaic Counties (in New Jersey) and all municipalities therein.
--Washington, DC/Baltimore HIDTA consists of Washington, DC; the 
City of Baltimore, and Baltimore, Howard, Anne Arundel, Prince 
George's, Montgomery and Charles Counties (in Maryland); and the 
City of Alexandria, and Arlington, Fairfax, Prince William, and 
Loudoun Counties (in Virginia) and all municipalities therein.
--South Florida HIDTA consists of the city of Miami and the 
surrounding areas of Broward, Dade, and Monroe Counties and all 
municipalities therein.
--Houston HIDTA consists of the city of Houston and surrounding 
areas of Harris, and Galveston Counties, and Aransas, Brooks, Jim 
Wells, Kenedy, Kleberg, Nueces, Refugio, San Patricio, and Victoria 
counties, and all municipalities therein;
--Lake County HIDTA consists of Lake County, Indiana, and all 
municipalities therein.
--Gulf Coast HIDTA consist of Baldwin, Jefferson, Mobile, and 
Montgomery Counties (in Alabama); Caddo, East Baton Rouge, 
Jefferson, and Orleans Parishes (in Louisiana); and Hancock, 
Harrison, Hinds, and Jackson Counties (in Mississippi) and all the 
municipalities therein.
--Midwest HIDTA consists of Muscatine, Polk, Pottawattamie, Scott 
and Woodbury Counties (in Iowa); Cherokee, Crawford, Johnson, 
Labette, Leavenworth, Saline, Seward, and Wyandotte Counties (in 
Kansas); Cape Garardeau, Christian, Clay, Jackson, Lafayette, 
Lawrence, Ray, Scott, and St. Charles Counties, and the City of St. 
Louis (in Missouri); Dakota, Dawson, Douglas, Hall, Lancaster, 
Sarpy, and Scott's Bluff Counties (in Nebraska); Clay, Codington, 
Custer, Fall River, Lawrence, Lincoln, Meade, Minnehaha, Pennington, 
Union, and Yankton Counties (in South Dakota); and all 
municipalities therein.
--Rocky Mountains HIDTA consists of Adams, Arapahoe, Denver, 
Douglas, Eagle, El Paso, Garfield, Jefferson, La Plata, and Mesa 
Counties (in Colorado); Davis, Salt Lake, Summit, Utah, and Weber 
Counties (in Utah); and Laramie, Natrona, and Sweetwater Counties 
(in Wyoming) and all municipalities therein.
--Southwest Border HIDTA consists of San Diego and Imperial Counties 
(in California), and all municipalities therein; Yuma, Maricopa, 
Pinal, Pima, Santa Cruz, and Cochise Counties, (in Arizona) and all 
municipalities therein; Bernalillo, Hidalgo, Grant, Luna, Dona Ana, 
Eddy, Lea, and Otero, Chaves, and Lincoln counties, (in New Mexico) 
and all municipalities therein; El Paso, Hudspeth, Culberson, Jeff 
Davis, Presidio, Brewster, Pecos, Terrell, Crockett Counties (in 
West Texas) and all

[[Page 9756]]

municipalities therein; Bexar, Val Verde, Kinney, Maverick, Zavala, 
Dimmit, La Salle, Webb, Zapata, Jim Hogg, Starr, Hildago, Willacy 
and Cameron Counties (in South Texas) and all municipalities 
therein.
--Northwest HIDTA consists of King, Pierce, Skagit, Snohomish, 
Thurston, Whatcom and Yakima Counties (in the State of Washington) 
and all municipalities therein.
--Los Angeles HIDTA consists of the city of Los Angeles and 
surrounding areas of Los Angeles, Orange, Riverside, and San 
Bernadino Counties, and all municipalities therein.
--Puerto Rico/U.S. Virgin Islands HIDTA consists of the U.S. 
territories of Puerto Rico and the Virgin Islands.
--San Francisco Bay Area HIDTA consists of Alameda, Contra Costa, 
Lake, Marin, Monterey, San Francisco, San Mateo, Santa Clara, Santa 
Cruz, Sonoma counties and all the municipalities therein.
--Appalachia HIDTA consist of Adair, Bell, Breathitt, Clay, Clinton, 
Cumberland, Floyd, Harlan, Jackson, Knott, Knox, Laurel, Lee, 
Leslie, McCreary, Magoffin, Marion, Monroe, Owsley, Perry, Pike, 
Pulaski, Rockcastle, Taylor, Wayne, and Whitley counties in 
Kentucky; Boone, Braxton, Cabell, Gilmer, Lewis, Lincoln, Logan, 
Mason, McDowell, Mingo and Wayne Counties in West Virginia, Bledsoe, 
Campbell, Claiborne, Clay, Cocke, Cumberland, Fentress, Franklin, 
Grainger, Greene, Grundy, Hamblen, Hancock, Hawkins, Jackson, 
Jefferson, Macon, Marion, Overton, Pickett, Putnam, Rhea, Scott, 
Sequatchie, Sevier, Unicoi, Van Buren and White Counties in 
Tennessee and all the municipalities therein.
--Central Florida HIDTA consists of Hillsborough, Orange, Osceola, 
Pinellas, Polk, Seminole, and Volusia counties and all the 
municipalities therein.
--Chicago HIDTA consists of Cook County, incorporating the City of 
Chicago.
--Atlanta HIDTA consists of Fulton, Dekalb counties and the City of 
Atlanta.
--Milwaukee HIDTA consists of Milwaukee county and all the 
municipalities therein.
--Southeastern Michigan HIDTA consists of Wayne, Oakland, Macomb, 
and Washtenaw counties and all the municipalities therein.
--Philadelphia/Camden HIDTA: consists of the Cities of Philadelphia 
and Camden.
--North Texas HIDTA consists of the cities of Dallas and Fort Worth, 
the surrounding counties of Collin, Dallas, Ellis, Henderson, Hood, 
Hunt, Johnson, Lubbock, Kaufman, Parker, Rockwall and Tarrant, Texas 
and all the municipalities therein.

    For further information on HIDTAs contact Rich Yamamoto, at the 
ONDCP, Executive Office of the President, Washington, DC 20500 on 
(202) 395-6755 and/or Catherine S. Barker on (202) 395-6603, fax 
(202) 395-6841.

BILLING CODE 4210-32-P

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

[[Page 9757]]


     
    [GRAPHIC] [TIFF OMITTED] TN26FE99.031
    

BILLING CODE 4210-32-C

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

[[Page 9759]]



Funding Availability for the New Approach Anti-Drug Program 
(Formerly Known as the Safe Neighborhood Grant Program)

Program Overview

    Purpose of the Program. The purpose of this program is to provide 
funding to owners or managers of certain housing developments to: (1) 
augment security; (2) assist in the investigation and prosecution of 
drug-related criminal activity in and around the housing developments; 
and (3) provide for the development of capital improvements directly 
relating to the security of the developments. With these grants, HUD is 
taking a comprehensive neighborhood/community-based approach to crime 
prevention. In applying, you will be required to demonstrate that you 
have formed a partnership with units of general local government, 
including with the local law enforcement agency to play key roles in 
this partnership.
    Available Funds. Approximately $28.3 million, which includes FY 
1998 carryover funds.
    Eligible Applicants. Eligible applicants include: units of general 
local government, public housing agencies (PHAs), Indian tribes or 
Tribally Designated Housing Entities (TDHEs), and owners of assisted 
housing developments. To be an eligible applicant you must be an owner 
of an assisted housing development, as defined in this program section 
of the SuperNOFA, except a unit of general local government may qualify 
if it operates an assisted housing development. The assisted housing 
development that makes a PHA eligible may not be assisted under the 
United States Housing Act of 1937 with the exception of project-based 
Section 8 assistance. Similarly, for an Indian tribe or a TDHE, the 
development may not be formerly assisted under those programs.
    Application Deadline. July 1, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.
    Application Due Date. Your application must be physically received 
on or before 6:00 pm, local time on July 1, 1999 at the address shown 
below.
    See the General Section of this SuperNOFA for specific procedures 
governing the form of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Address for Submitting Applications. An original and two copies of 
your application must be physically received on or before the 
application deadline at the local HUD Field Office, Attention: Director 
of Multifamily Housing Programs or, in the case of the Native American 
population, to the local HUD Administrator, Area Offices of Native 
American Programs (AONAPs), as appropriate. See Appendix A to this NOFA 
for a list of local HUD Field Offices, AONAPs, and their respective 
jurisdictions.
    For Application Kits. For an application kit and any supplemental 
information, please call the SuperNOFA Information Center at 1-800-HUD-
8929. When requesting an application kit, please refer to the New 
Approach Anti-Drug Program, and provide your name, address (including 
zip code) and telephone number (including area code). Persons with 
hearing or speech impairments may call the Center's TTY number at 1-
800-483-2209. An application kit also will be available on the Internet 
through the HUD web site at http://www.HUD.gov.
    For Further Information and Technical Assistance. For program, 
policy, and other guidance, contact Henry Colonna, Department of 
Housing and Urban Development, Virginia State Office, 3600 West Broad 
Street, Richmond, VA 23230-4920, telephone (804) 278-4500, x 3027, or 
(804) 278-4501 (the TTY number).

II. Amount Allocated

(A) Available Funding

    Approximately $28.3 million is available for funding under the New 
Approach Anti-Drug Program, as provided in the FY 1999 Appropriations 
Act, including FY 1998 carryover funding.

(B) Maximum Grant Award

    The maximum grant award amount is limited to $250,000 per 
application.

(C) Reduction of Requested Grant Amounts

    You may be awarded an amount less than requested if:
    (1) HUD determines that some elements of the proposed action plan 
are ineligible for funding;
    (2) HUD determines the amount requested for an eligible activity 
and/or any budget line item is not cost effective;
    (3) Insufficient amounts remain under the allocation to fund the 
full amount you requested, and HUD determines that partial funding is a 
viable option; or
    (4) HUD determines that a reduced grant would prevent duplicative 
Federal funding.

III. Definitions, Program Description; Eligible Applicants; 
Eligible Activities

(A) Definitions

    (1) Assisted Housing Development. For purposes of this program, the 
term ``assisted housing development'' means five or more dwelling units 
in a building or five or more adjoining, adjacent, or scattered site 
(within a single neighborhood) dwelling units, having common ownership 
and project identity. Some or all of the units must be receiving a 
project-based subsidy from a unit of government at the Federal, State, 
or local level, or from a private nonprofit entity. This subsidy must 
be associated with a requirement and/or contractual agreement that all 
or a portion of the units be occupied by households with incomes at or 
below those of families at the low-income limit as defined by the 
United States Housing Act of 1937.
    (2) Assisted Housing Unit. For purposes of this program, the term 
``assisted housing unit'' means a unit within an assisted housing 
development for which occupancy is restricted to households with 
incomes at or below that of ``low-income families'' as defined by the 
U.S. Housing Act of 1937 or to households meeting an income standard 
below that defined as ``low-income;'' and rents are restricted to 
amounts that the public or nonprofit entity determines to be 
affordable.
    (3) Augmented Services. For purposes of this program, augmented 
services are activities which exceed current levels of services or 
``baseline'' services provided by any other parties signing the 
memorandum of understanding required for this program.
    (4) Drug-related crime. For purposes of this New Approach Anti-Drug 
Program, the term ``drug-related crime'' means drug-related crime as 
defined in 42 U.S.C. 11905(2) and Part I Crime and Part II Crime as 
defined by the Uniform Crime Reporting System.
    (5) Eligible project area. For purposes of the New Approach Anti-
Drug Program, the term ``neighborhood'' means a geographic area within 
a jurisdiction of a unit of general local government designated in 
comprehensive plans, ordinances, or other local documents as a 
neighborhood, village, or similar geographical designation. If, 
however, the unit of general local government has a population of less 
than 25,000 persons, then ``neighborhood'' means

[[Page 9760]]

the entire jurisdiction of the unit of general local government.
    (c) A project area must include at least one assisted housing 
development under:
    (i) Section 221(d)(3), section 221(d)(4), or section 236 of the 
National Housing Act (12 U.S.C. 1715l, 1715z-1), provided that such 
development has been provided a Below Market Interest Rate mortgage, 
interest reduction payments, or project-based assistance under Rent 
Supplement, Rental Assistance Payments (RAP) or Section 8 programs. An 
FHA-insured project that has no project-based subsidy does not qualify 
as an area for eligibility even though it houses tenants receiving 
tenant-based assistance, such as Section 8 rental vouchers or 
certificates.
    (ii) Section 101 of the Housing and Urban Development Act of 1965 
(12 U.S.C. 1701s); or
    (iii) Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f). This includes housing with project-based Section 8 assistance, 
whether or not the mortgage was insured by HUD-FHA, but does not 
include projects which receive only Section 8 tenant-based assistance 
(i.e., certificates or vouchers).
    (5) Project-based Subsidies. For purposes of this program, the term 
``project-based subsidies'' means financial assistance that is 
initially designated and assigned by the funding source specifically 
for the project rather than to eligible assisted resident households 
which might also benefit from these subsidies, and provided on a one 
time up-front or on a periodic basis to the project or its owner to 
write down, subsidize, or waive: project development costs; costs of 
financing; project operating costs (including but are not limited to: 
utilities, taxes, fees, maintenance and debt service payments); owner 
taxes; unit rent levels; or tenant rent payments.

(B) Program description

    (1) Purpose. The purpose of these competitive grants is to assist 
entities managing or operating Federally assisted multifamily housing 
developments, public and Indian housing developments (including those 
Indian housing units formerly defined as public housing under section 3 
of the U.S. Housing Act of 1937 and now counted as current assisted 
stock under the Indian Housing Block Grant Program), or other 
multifamily-housing developments for low-income families supported by 
non-Federal governmental housing entities or similar housing 
developments supported by nonprofit private sources, to augment 
security (including personnel costs); assist in the investigation and/
or prosecution of drug-related criminal activity in and around such 
developments, and provide for capital improvements that enhance 
security at these developments.
    Drug- and crime-fighting activities, if only directed to a single 
assisted housing development, may have the unfortunate effect of simply 
moving the problem to nearby housing and businesses. The long term 
solution to the crime problems of assisted housing developments and 
their surrounding neighborhoods rest in a comprehensive approach that 
changes the conditions--and the culture that exists. HUD believes that 
crime fighting efforts are most effective when partnering takes place 
with law-enforcement agencies at various levels and with a full range 
of community stakeholders (such as PHAs and TDHEs). Therefore, to 
address crime in a comprehensive manner to receive funding, you must 
take the following actions:
    (a) Have a subgrantee or subrecipient relationship with the local 
police department and the local district attorney or prosecutor's 
office. If the local police department, local district attorney or 
prosecutor's office does not have the legal authority to accept program 
funds or enter into a binding agreement with you, then you must provide 
funds through the unit of general local government--city or county.
    (b) Enter into Memorandums of Understanding with the owners of, and 
resident organizations in, assisted housing developments that receive 
grant funds from you.
    (c) Encourage other neighborhood based entities to participate in 
your program of activities through partnership arrangements. Such 
entities are community residents; neighborhood businesses; and non-
profit providers of support services, including spiritually-based 
organizations and their affiliates.
    (2) Implementation Principles. HUD has established the following 
principles in implementing the New Approach Anti-Drug Program Grants:
    (a) Comprehensive Approach. With these grants, HUD is taking a 
comprehensive neighborhood/community-based approach to crime. The long 
term solution to the crime problems of assisted housing developments 
and their surrounding neighborhoods rests in changing the conditions--
and the culture that exists.
    (b) Required Partnerships. You will be required to demonstrate that 
you have formed a partnership with units of general local government, 
with the local police department and the local district attorney or 
prosecutor's office playing key roles in this partnership. You must 
also form partnerships with the following entities, if they will 
receive funding from you:
    (i) All owners of assisted housing developments in the targeted 
neighborhood; and
    (ii) Resident organizations of these assisted housing developments.
    (c) Encouraging Partnerships. (i) HUD encourages the use of 
effective working partnerships in new locations to leverage the many 
Federal resources that are available to eliminate crime in and around 
public and assisted housing developments through the Drug Elimination 
Grant, Operation Safe Home, and Weed and Seed programs; and partnering 
with the U.S. Attorney's Office, the Federal Bureau of Investigation, 
and the Drug Enforcement Agency. HUD now wishes to encourage these 
successful partnerships to address similar problems in and around 
privately-owned, Federally assisted housing. In addition to providing 
points for applications with these partnerships, HUD is requiring that 
at least one project in each targeted neighborhood be multifamily 
housing with either:
    (A) A HUD-insured, held, or direct mortgage and Rental Assistance 
Payments (RAP), Rent Supplement, or interest reduction payments; or
    (B) Section 8 project-based assistance with or without HUD interest 
in the project mortgage.
    (ii) This emphasis on HUD assisted privately-owned housing does not 
negate the eligibility of other low-income housing developments 
assisted by Federal, State, and local government, and not-for-profit 
sources to apply for the New Approach Anti-Drug Program. By awarding 
points for neighborhoods with high concentrations of assisted housing, 
HUD is encouraging you to address the needs of multiple assisted 
housing developments which may feature a mix of ownership types and 
subsidy sources.
    (d) Complying with Civil Rights Requirements. With the very real 
need to protect occupants of HUD-sponsored housing and the areas around 
the housing, the civil rights of all citizens must be protected. Your 
proposed strategies should be developed to ensure that crime-fighting 
and drug prevention activities are not undertaken in such a manner that 
civil rights or fair housing statutes are violated. Profiling on any 
prohibited basis is not allowed. In addition, all segments of the 
population should be represented in developing and implementing crime-
fighting strategies.

[[Page 9761]]

    (e) Coordination with Other Law Enforcement Efforts. In addition to 
working closely with residents and local governing bodies, it is 
critically important that owners establish ongoing working 
relationships with Federal, State, and local law enforcement agencies 
in their efforts to address crime and violence in and around their 
housing developments. HUD firmly believes that the war on crime and 
violence in assisted housing can only be won through the concerted and 
cooperative efforts of owners and law enforcement agencies working 
together in cooperation with residents and local governing bodies. HUD 
encourages owners to participate in Departmental and other Federal law 
enforcement agencies' programs such as: Operation Safe Home, Operation 
Weed and Seed through the Department of Justice and the Safe 
Neighborhood Action Program (SNAP). The use of New Approach Anti-Drug 
funds, however, is to be part of a comprehensive approach. These funds 
may indirectly support other Federal law enforcement activities 
provided that use is consistent with the comprehensive approach.
    (f) Safe Neighborhood Action Program (SNAP) Grants. (i) The New 
Approach Anti-Drug Program was formerly known as the Safe Neighborhood 
Action Program, announced June 12, 1994 by HUD, the National Assisted 
Housing Management Association (NAHMA), and the U.S. Conference of 
Mayors (USCM). The New Approach Anti-Drug Program was expanded from the 
SNAP Program to include funds to augment security; assist in the 
investigation and prosecution of drug related criminal activity in and 
around the housing developments; and provide for the development of 
capital improvements directly related to the security of the 
developments. SNAP is an anti-crime and empowerment strategies 
initiative in HUD assisted housing neighborhoods in 14 SNAP cities. The 
major thrust of SNAP is the formation of local partnerships in 14 
targeted cities where ideas and resources from government, owners and 
managers of assisted housing, residents, service providers, law 
enforcement officials, and other community groups meet to work on 
innovative, neighborhood anti-crime strategies.
    (ii) There is no funding associated with SNAP, which relies on 
existing ideas and resources of the participants. Some common 
initiatives from these SNAP teams have included the following: 
community policing; crime watch programs; tenant selection policies; 
leadership training; individual development or job skills training; 
expansion of youth activities; police tip line or form; community 
centers; anti-gang initiatives; police training for security officers; 
environmental improvements; and a needs assessment survey to determine 
community needs.
    (iii) In addition, a HUD-sponsored initiative to increase the 
presence of AmeriCorps' VISTAs in assisted housing units has led to the 
placement of 25 VISTAs on 12 SNAP teams. The AmeriCorps VISTA program, 
which incorporates a theme of working within the community to find 
solutions to community needs, has provided additional technical 
assistance to the SNAP teams.
    (iv) The cities participating in the SNAP initiative include: 
Atlanta, Ga; Boston, Mass; Denver, Co; Houston, TX; Newark, NJ; 
Philadelphia, PA; Baltimore, MD; Columbus, OH; Detroit, MI; Los 
Angeles, CA; New Orleans, LA; Little Rock, AR; Richmond, VA; and 
Washington, DC.
    (v) For more information on SNAP, contact Henry Colonna, National 
SNAP Coordinator, Virginia State Office, 3600 West Broad Street, 
Richmond, VA 23230-4920; telephone (804) 278-4500, extension 3027; or 
(804) 278-4501 (TTY). For more information on AmeriCorps' VISTAs in 
Assisted Housing, contact Deanna E. Beaudoin, National VISTAs in 
Assisted Housing Coordinator, Colorado State Office, First Interstate 
Tower North, 633 17th Street, Denver, CO 80202; telephone (303) 672-
5291, extension 1068; or (303) 672-5248 (TTY). These numbers are not 
toll-free.

(C) Eligible Applicants

    (1) General. To be an eligible applicant:
    (a) You must be:
    (i) The owner of a federally-assisted housing development. If you 
are a unit of general local government you do not need to be the owner, 
but must be the operator of such housing. (A TDHE is not a unit of 
general local government.);
    (ii) The owner of an assisted housing development that is assisted 
by a non-Federal governmental entity or similar housing development 
supported by nonprofit sources. If you are a unit of general local 
government, you do not need to be the owner, but must be the operator 
of such housing;
    (iii) A PHA. To be eligible to apply you must own an assisted 
housing development that is not assisted under the United States 
Housing Act of 1937, with the exception of project-based assistance 
under section 8 of the Act. If you do not own such an assisted housing 
development, you may still participate in the New Approach Anti-Drug 
Program as a subgrantee or subrecipient of an eligible applicant; or
    (iv) An Indian tribe or TDHE. To be eligible to apply you must own 
an assisted housing development that was not formerly assisted under 
the United States Housing Act of 1937, with the exception of project-
based assistance under section 8 of the Act. If you do not own such an 
assisted housing development, you may still participate in the New 
Approach Anti-Drug Program as a subgrantee or subrecipient of an 
eligible applicant;
    (b) The property that makes you eligible must be in the 
neighborhood to be assisted; and
    (c) You may not have any outstanding findings of civil rights 
violations. (See Section II(B) of the General Section of this 
SuperNOFA.)
    (2) Lead Applicant. Two or more eligible applicants may file a 
joint application. If filing jointly, you must designate one entity to 
be the lead applicant. The lead applicant will be the grantee if HUD 
funds your application.

(D) Memorandum of Understanding

    You must include with your application Memorandums of Understanding 
(MOU) that you have entered with each required party. (See Section 
III(B) of this program section of the SuperNOFA). The MOU may indicate 
the agreement is subject to the actual receipt of funds from HUD.
    (1) Required Parties to the MOU. (a) You must sign a MOU that 
provides funds through a subgrantee or subrecipient relationship with 
the following entities:
    (i) The local police department; and
    (ii) The local district attorney's office or the local prosecutor's 
office.
    (b) If you provide funds to an owner or entity participating in the 
program, you also must sign a MOU with that owner or other entity; and
    (c) You also must sign an MOU with each resident organization that 
will receive grant funding through you. The resident organization must 
have been established by, and have a governing board consisting of, 
tenants in an assisted housing development in the neighborhood. The 
resident organization's commitment must describe the extent to which it 
is involved in the planning, and will be participating in, and 
supporting, your action plan.
    (d) All parties signing the MOU must have the legal authority to 
enter into a binding agreement with you.
    (2) Content of MOU. This MOU must commit these entities to actively 
support the grant project in partnership with you. The MOU must also 
describe:

[[Page 9762]]

    (a) The level of current services (baseline) being provided by 
these entities;
    (b) The level of services above this baseline which the entities 
are committed to providing in support of your grant;
    (c) The amount of time to be devoted to the activities by each 
party;
    (d) The skills each party brings to assist in implementation of 
your specific action plan activities.
    Your MOU will be taken into account in reviewing and rating your 
application, so you should strive to be as specific as possible in your 
MOU document.
    (3) Encourage Partnerships. We encourage you to partner with other 
appropriate neighborhood and community stakeholders, including: 
neighborhood businesses and business associations; nonprofit service 
providers; neighborhood resident associations; and faith communities or 
religious institutions. You are encouraged to enter into MOUs with 
these entities but an MOU is not required.

(E) Eligible Project Areas

    (1) HUD will award one grant per project neighborhood. The project 
area must be a ``neighborhood.''
    (2) The project area must include at least one assisted housing 
development. See definition in Section III(A)(1) of this program 
section of the SuperNOFA.
    (3) You must provide documentation of the population used to define 
eligibility as a neighborhood. The documentation may include census 
data or documentation provided by local government officials.

(F) Eligible Activities

    The following is a listing of eligible activities under this 
program and guidance as to their parameters:
    (1) Augmenting Security (Including Personnel).
    (a) General. You must document in your MOU(s) all security services 
above baseline established in your MOU. Anyone providing augmented 
security services must have liability insurance.
    (b) Baseline Services. Additional security services are permitted 
but must be over and above the local police department's current level 
of baseline services. If you are seeking funding for augmenting 
security, you must describe the local police department's current level 
of baseline services to the neighborhood (including ordinary and 
routine services, patrols, police officer responses to 911 
communications and other calls for services, and investigative follow-
up of criminal activity). Your description of baseline services must 
include the number of officers and the actual percent of their time 
assigned to the development(s) proposed for funding. For a proposed 
activity to be considered eligible as an augmented security activity, 
you must demonstrate to what extent the proposed funded activity will 
represent an increase over and above the baseline.
    (c) Police Presence. You may reimburse local law enforcement 
entities for the costs of additional police presence (police salaries 
and other expenses directly related to additional police presence or 
security that is over and above baseline services) in and around 
assisted housing developments in the neighborhood. Of the funds devoted 
to additional police presence, at least 70 percent of such reimbursed 
costs must be for police presence in assisted housing developments 
served and the remaining 30 percent must be for police presence within 
the project area.
    HUD is strongly encouraging that additional law enforcement in the 
assisted housing developments and surrounding neighborhoods be targeted 
to implementing an overall crime fighting strategy, rather than merely 
responding to crime emergencies. Two potentially effective anti-crime 
strategies that can benefit from additional police presence are:
    (i) Combined multi-agency task force initiatives, in which local 
and Federal law enforcement agencies pool resources, first, to 
infiltrate organizations that promote violent and/or drug-related crime 
in the neighborhood and, second, to initiate strategic and coordinated 
mass arrests to break up these organizations; and
    (ii) Community policing (i.e., sustained proactive police presence 
in the development or neighborhood, often conducted from an on site 
substation or mini-station, that involves crime prevention, citizen 
involvement, and other community service activities, as well as 
traditional law enforcement).
    If reimbursement is provided for community policing activities that 
are committed to occur over a period of at least 3 years and/or are 
conducted from a police substation or administration within the 
neighborhood, the costs during the grant period of constructing such a 
station or of equipping the substation with communications and security 
equipment to improve the collection, analysis and use of information 
about criminal activities in the properties and the neighborhood may be 
reimbursed.
    (d) Security Services Provided by Other Entities (such as the Owner 
of an Assisted Housing Development). (i) The activities of any contract 
security personnel funded under this Program must be coordinated with 
other law enforcement and crime prevention efforts under your proposed 
action plan. You must describe in your action plan your efforts to 
achieve this coordination. The coordination efforts must include 
frequent periodic scheduled meetings of security personnel with housing 
project management and residents, local police and, as appropriate, 
with other public law enforcement personnel, neighboring residents, 
landlords, and other neighborhood stakeholders. Any contract security 
personnel funded under this Program must meet State and local licensing 
requirements.
    (ii) You may only contract with a security service provider that 
has a policy manual that directs the activities of its personnel and 
contains the policies, procedures, and general orders that regulate 
conduct and describe in detail how jobs are to be performed. If you use 
your own staff to provide security services, then you must have such a 
policy manual.
    (2) Enhancing the Investigation and Prosecution of Drug-Related 
Crime.
    (a) Reimbursement of State and Local Law Enforcement Agencies.
    As the grantee, you may reimburse local or State prosecuting 
offices and related public agencies for activities, other than salaries 
or ineligible activities in Section III(G) of this program section of 
the SuperNOFA, related to the prosecution or investigation of crime 
committed in the neighborhood identified in your application. These 
costs are subject to a cost reimbursement agreement. Reimbursement must 
be for costs over and above what the office or agency incurred for such 
purposes for crimes committed in the same neighborhood during the 
period equal in length and immediately before the period of 
reimbursement. For any grant, at least 70 percent of reimbursed costs 
must be in connection with crimes committed in and around the assisted 
housing developments and the remainder of reimbursed costs directly 
related to crime committed within the neighborhood.
    (b) Hiring of Private Investigator Services. You may use grant 
funds to hire private investigator services to investigate crime in and 
around an assisted housing development and the surrounding 
neighborhood. You must explain why local law enforcement services are 
inadequate and justify the need for hiring private investigator 
services.

[[Page 9763]]

    (3) Capital Improvements to Enhance Security. You may use grant 
funds for capital improvements to enhance security. You should, 
however, consider using other sources of funding for this purpose. 
These improvements must be accessible to persons with disabilities. For 
example, locks or buzzer systems that are not accessible to people with 
restricted or impaired strength, mobility, or hearing may not be funded 
by your grant. Capital improvements to implement defensible space 
concepts in the design and implementation of your enhanced security 
measures are eligible provided such design elements permit 
accessibility and visitability by persons with disabilities. Capital 
improvements to enhance security must comply with civil rights 
requirements and cannot exclude or segregate persons based upon their 
race, color, or national origin from benefits, services, and other 
terms and conditions of housing. Under the selection criterion entitled 
``Quality of Plan,'' HUD will reward capital improvements to enhance 
the security of an entire neighborhood as opposed to specific projects 
at the expense of other dwellings in the neighborhood. The capital 
improvements may include, but are not limited to:
    (a) New construction or rehabilitation of structures housing police 
substations or mini-stations;
    (b) Installation of barriers (including speed bumps and fences) and 
appropriate use of close circuit television (CCTV), provided any 
barriers make reasonable accommodations for persons with disabilities;
    (c) Improved door or window security such as locks, bolts, or bars; 
and
    (d) Landscaping or other reconfiguration of common areas to 
discourage drug-related criminal activities.

(G) Ineligible Activities

    In addition to the ineligible activities mentioned elsewhere in 
this program section of the SuperNOFA, New Approach Anti-Drug Program 
Grant funding is not permitted for any of the activities listed below, 
unless otherwise specified in this program section of the SuperNOFA:
    (1) Crime prevention, treatment, or intervention activities;
    (2) Costs incurred before the effective date of the grant 
agreement, including but not limited to consultant fees related to the 
development of your application or the actual writing of your 
application;
    (3) Purchase of controlled substances for any purpose. Controlled 
substance has the meaning provided in section 102 of the Controlled 
Substance Act (21 U.S.C. 802);
    (4) Compensating informants, including confidential informants. 
These should be part of the baseline services provided and budgeted by 
local law enforcement agencies; or
    (5) Although participation in activities with Federal drug 
interdiction or drug enforcement agencies is encouraged, these grant 
funds may not be transferred to any Federal agency.
    Profiling on any prohibited basis is not allowed.

(H) Threshold Requirements

    In addition to requirements listed in Section II of the General 
Section of the SuperNOFA, you are subject to the following:
    (a) You must show how you meet the eligibility requirements; and
    (b) The amount of funding requested must be within the maximum 
grant award amount.

IV. Program Requirements

    The following requirements apply to all activities, programs, or 
functions used to plan, budget, implement, and evaluate the work funded 
under this program.

(A) Grant Agreement

    After applications have been ranked and selected, HUD and a 
successful applicant will enter into a grant agreement setting forth 
the amount of the grant, the physical improvements or other eligible 
activities to be undertaken, financial controls, and special 
conditions, including sanctions for violation of the agreement. The 
Grant Agreement will incorporate your HUD approved application as may 
be amended by any special condition in the Grant Agreement. HUD will 
monitor your grant using your Grant Agreement to ensure that you have 
achieved commitments set out in your approved grant agreement. Failure 
to honor such commitments would be the basis for HUD determining your 
default of the Grant Agreement, and exercising available sanctions, 
including grant suspension, termination, and/or the recapture of your 
grant funds.

(B) Requirements Governing Grant Administration, Audits and Cost 
Principles

    The policies, guidelines, and requirements of this NOFA, 48 CFR 
part 31, 24 CFR parts 44, 45, 84 and/or 85, OMB Circulars A-87 and/or 
A-122, other applicable administrative, audit, and cost principles and 
requirements, and the terms of grant/special conditions and subgrant 
agreements apply to your acceptance and use of funds. The requirements 
cited above, as applicable, must be followed in determining procedures 
and practices related to the separate accounting of grant funds from 
other grant sources, personnel compensation, travel, procurement, the 
timing of drawdowns, the reasonableness and allocation of costs, 
audits, reporting and closeout, budgeting, and preventing conflict of 
interests or duplicative charging of identical costs to two different 
funding sources. All costs must be reasonable and necessary.

(C) Term of Grant

    Your grant funds must be expended within 24 months after HUD 
executes a Grant Agreement with you. There will be no extensions or 
waivers of this grant term.

(D) Subgrants and Subcontracting

    (1) In accordance with your approved grant agreement, you may 
directly undertake any of the eligible activities under this NOFA, you 
may contract with a qualified third party, or you may make a subgrant 
to any entity approved by HUD as a member of the partnership, provided 
such entity is a unit of government, a prosecutor's office, a police 
department or a TDHE; is incorporated as a not-for-profit organization; 
or is an incorporated for-profit entity that owns and/or manages an 
assisted housing project benefiting from the grant. Resident groups 
that are not incorporated may participate in the implementation of the 
program, but may not receive funds as subgrantees. For-profit 
organizations other than owners or managers of an assisted housing 
development benefiting from the grant that have been approved by HUD as 
part of the partnership may only receive grant funds subject to the 
applicable Federal procurement procedures (See 24 CFR parts 84 or 85).
    (2) Subgrants may be made only under a written agreement executed 
between you, the grantee, and your subgrantee. The agreement must 
include a program budget that is acceptable to you, and that is 
consistent with the eligible activities and requirements. The agreement 
must require the subgrantee to permit you to inspect your subgrantee's 
work and to follow applicable OMB and HUD administrative requirements, 
audit requirements, and cost principles, including those related to 
procurement, drawdown of funds for immediate use only, and accounting 
for the use of grant funds and implementation of program activities. In 
addition, your subgrant must describe the nature of the activities to 
be undertaken by the subgrantee, the scope of the subgrantee's 
authority, and

[[Page 9764]]

the amount of any insurance to be carried by you and the subgrantee to 
protect your respective interests.
    (3) You are responsible for monitoring, and for providing technical 
assistance to, any subgrantee to ensure compliance with applicable HUD 
and OMB requirements. You must also ensure that subgrantees have 
appropriate insurance liability coverage.

(E) Ineligible Contractors

    The provisions of 24 CFR part 24 relating to the employment, 
engagement of services, awarding of contracts or funding of any 
contractors or subcontractors during any period of debarment, 
suspension, or placement in ineligibility status apply to this grant.

(F) Section 3 Economic Opportunity

    See Section II(E) of the General Section of the SuperNOFA. The 
requirements of Section 3 apply to some of the activities that may be 
funded by this NOFA.

(G) Drawdown of Grant Funds

    You will be required to access your grant funds through HUD's Line 
of Credit Control System-Voice Response System in accordance with 
procedures for minimizing the time lapsing between drawdowns and use of 
funds for eligible purposes as described in 24 CFR parts 84 and/or 85, 
as applicable. If HUD changes the procedures for the draw of grant 
funds, HUD will notify you through the issuance of a grant amendment.

(H) Reports and Closeout

    If you receive a grant, you will be required to submit to HUD a 
semi-annual progress report (Form 269). The narrative of the Form 269 
must be sent in a format prescribed by HUD that indicates program 
expenditures and measures performance in achieving goals. At grant 
completion, you will be required to participate in a closeout process 
which shall include a final report in a format prescribed by HUD that 
reports final program expenditures and measures performance in 
achieving program goals. Closeout will culminate in a closeout 
agreement between you and HUD and, when appropriate, in the return of 
grant funds which have not been expended in accordance with applicable 
requirements, or which may be remaining after all activities have been 
completed and paid for.

(I) Suspension or Termination of Funding

    HUD may suspend or terminate funding if you fail to undertake the 
approved program activities on a timely basis in accordance with your 
grant agreement, adhere to grant agreement requirements or special 
conditions, or submit timely and accurate reports.

(J) Affirmatively Furthering Fair Housing

    You do not have to address Section II(D) of the General Section of 
the SuperNOFA.

V. Application Selection Process

(A) Rating and Ranking

    (1) HUD will evaluate all eligible applications based on the 
factors for award identified in this Section V.
    (2) After the applications have been scored, HUD will rank them on 
a national basis. An application must receive a score of at least 70 
points, excluding the EZ/EC and Dallas bonus points, to be eligible for 
funding. Awards will be made in ranked order until all funds are 
expended.
    (3) In the event of a tie, HUD will select the applicant with the 
highest score in Rating Factor 1. If Rating Factor 1 is scored 
identically, the scores in Rating Factors 2, 3 and 4 will be compared 
in that order, until one of the applications receives a higher score. 
If both applications still score the same then the application which 
requests the least funding will be selected to promote the more 
efficient use of resources.

(B) Factors for Award To Evaluate and Rank Applications

    The maximum number of points for this program is 102 (except for an 
application submitted by the City of Dallas, Texas which would be 
eligible for a maximum of 104 points in accordance with Rating Factor 
3, paragraph (7), below. This includes two EZ/EC bonus points, as 
described in the General Section of the SuperNOFA.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points)
    This factor addresses the extent to which you have proper 
organizational resources necessary to successfully implement the 
proposed New Approach Anti-Drug Program activities in an effective, 
efficient, and timely manner. In rating this factor, HUD will consider 
the extent to which the application demonstrates the capabilities 
described below:
    (1) (5 Points) The applicants' administrative capacity to implement 
the grant. HUD will award points based on the quality and amount of 
staff allocated to the grant activity by you; the anticipated 
effectiveness of your systems for budgeting, procurement, drawdown, 
allocation, and accounting for grant funds and matching resources in 
accordance with OMB administrative requirements; and the lines of 
accountability for implementing your grant activity, coordinating your 
partnerships, and ensuring that you and your MOU partners' commitments 
will be met. You must include in your narrative a discussion of 
financial capacity, staff resources, and prior experience that will 
enable you to effectively administer the grant and meet reporting 
requirements. This narrative must not exceed five pages. For an owner 
of an assisted housing development that is HUD-insured, HUD will 
consider the most recent Management Review (including Rural Housing 
Management Review), Housing Quality Standards (HQS) review, State 
Agency review and such other relevant information available to HUD on 
the capacity of the owner and manager to undertake the grant; you must 
include a copy of the most recent management review (not a physical 
inspection report) for the property to be served by your grant. These 
documents will not be counted against your 5 page narrative limitation.
    (2) The applicant's performance in administering Drug Elimination 
grants and/or other Federal, state or local grants of similar size and 
complexity during the last 3 years. In assessing this factor, HUD will 
verify you and your partners' successful experience and performance 
based on information on file with the Department and will consider the 
following factors with the indicated total available points:
    (a) (5 Points) Your successful experience combined with your MOU 
partners' successful experience in utilizing similar strategies to 
alleviate crime. You must identify your participation in HUD grant 
programs within the last three years and discuss the degree of your 
success in implementing planned activities; achieving program goals and 
objectives; timely drawdown of funds; timely submission of required 
reports and ability to complete activities on time and within budget; 
what if any audit findings were noted; whether there was audit 
compliance; whether there are and the extent of any unresolved findings 
and/or outstanding recommendations from prior HUD reviews or audits 
undertaken by HUD, HUD-Office of Inspector General, the General 
Accounting Office (GAO) or independent public accountants (IPAs). To 
receive maximum points under this section, you must have worked in 
partnership with one or more of your MOU partners (or two or more of 
your

[[Page 9765]]

MOU partners may have worked together in partnership) using similar 
strategies to reduce crime in and around assisted housing developments. 
To demonstrate success in implementing past projects, you must identify 
the reduction in the occurrence of the types of crime as indicated in 
Rating Factor 2 of this NOFA. In the absence of previous partnerships, 
your capacity will weigh more heavily than the experience of any of 
your partners, in HUD's assignment of points under this subfactor.
    (b) (4 Points) Your performance in administering other Federal, 
State or local grant programs. You must identify your participation in 
HUD grant programs within the preceding three years, and discuss the 
degree of your success in implementing and managing (program 
implementation, timely drawdown of funds, timely submission of required 
drawdown of funds, timely submission of required reports with 
satisfactory outcomes related to the plan and timetable, audit 
compliance and other HUD reviews) these grant programs.
    (3) (6 Points) The strength of the applicants' partnership as it 
relates to eliminating the crime problem identified in Rating Factor 2. 
HUD will award points in this area based on the strength of resource 
commitments identified in your MOUs in terms of the amount of staff, 
time, money, or other assets committed by each MOU party toward 
implementing your program. Your description should identify what skill 
each party will bring to help successfully implement your program, and 
the firmness of the commitments); evidence of your MOU partners' (and 
project tenants') pre-application role in developing the plan and 
prospective role in program implementation; indications of the capacity 
of the assisted housing developments' ownership and management (based 
on available management reviews by governing public entities) to 
undertake their share of responsibilities in the partnership (including 
evidence of whether management carefully screens applicants for units 
and takes appropriate steps to deal with tenants known to exhibit or 
suspected of exhibiting criminal behavior) and to cooperate with law 
enforcement actions on their project premises; the willingness of the 
unit of general local government to use its prosecutor's office as its 
lead agency in implementing the grant; participation of additional 
partners other than those required to sign MOUs (for example, 
neighborhood business organizations); and the effectiveness of the 
partnership structure.
Rating Factor 2: Need/Extent of the Problem (25 Points)
    This factor addresses the extent to which there is a need for 
funding your proposed program activities to address the documented 
degree of the severity of the drug-related crime problem in the project 
area proposed for funding. In responding to this factor, HUD will 
evaluate the extent to which you have explained a critical level of 
need for your proposed activities and have indicated the urgency of 
meeting the need in the target area. You must include a description of 
the extent and nature of drug-related crime ``in and around'' the 
housing units or developments proposed for funding.
    You will be evaluated on the following:
    (1) (15 points) ``Objective Crime Data'' relevant to the target 
area. To the extent that you can provide objective crime data specific 
to the community or targeted development proposed for funding, your 
application will be awarded up to 15 points. Your application must 
include the most current and specific Part I Crime data and relevant 
Part II Crime data available from the FBI's Uniform Crime Reporting 
Program (UCR) system or the local law enforcement's crime statistics. 
Part I Crimes include: homicide; rape; robbery; aggravated assault; 
burglary; larceny; auto theft; and arson. Part II drug-related crimes 
include: drug abuse violations; simple assault; vandalism; weapons 
violations; and other crimes which you are proposing to be targeted as 
part of your grant. In assessing this subfactor, HUD will consider the 
extent of specificity that the statistical data is provided (e.g., data 
specific to the neighborhood covered by your application). These data 
must consist of verifiable records and not anecdotal reports. Where 
appropriate, the statistics should be reported both in real numbers and 
as an annual percentage of the residents in each development (e.g., 20 
arrests in a two-year period for distribution of heroin in a 
development with 100 residents reflects a 20% occurrence rate). These 
data may include:
    (a) Police records or other verifiable information from records on 
the types or sources of drug related crime in your targeted 
developments and surrounding area;
    (b) The number of lease terminations or evictions for drug-related 
crime at your targeted developments; and
    (c) The number of emergency room admissions for drug use or that 
result from drug-related crime. Such information may be obtained from 
police departments and/or fire departments, emergency medical service 
agencies and hospitals. The number of police calls for service from 
housing authority developments that include resident initiated calls, 
officer-initiated calls, domestic violence calls, drug distribution 
complaints, found drug paraphernalia, gang activity, graffiti that 
reflects drugs or gang-related activity, vandalism, drug arrests, and 
abandoned vehicles.
    For PHAs, such data should include housing authority police records 
on the types and sources of drug related crime ``in and around'' 
developments as reflected in crime statistics or other supporting data 
from Federal, State, Tribal or local law enforcement agencies.
    (2) (10 Points) Other Crime Data: Other supporting data on the 
extent of drug-related crime. For this element, you can receive up to 
10 points. To the extent that objective data as described above may not 
be available, or to complement that data, your assessment must use data 
from other verifiable sources that have a direct bearing on drug-
related crime in the developments proposed for assistance under this 
program. If you are using other relevant information in place of 
objective data, however, your application must indicate the reasons why 
you could not obtain objective data and what efforts you made to obtain 
it and what efforts you will make during the grant period to begin 
obtaining the data. Examples of the data should include (but are not 
necessarily limited to):
    (a) Surveys of residents and staff in your targeted developments 
surveyed on drug-related crime or on-site reviews to determine drug/
crime activity; and government or scholarly studies or other research 
in the past year that analyze drug-related crime activity in the 
targeted developments.
    (b) Vandalism cost at your targeted developments, including 
elevator vandalism (where appropriate) and other vandalism attributable 
to drug-related crime.
    (c) Information from schools, health service providers, residents 
and Federal, State, local, and Tribal officials, and the verifiable 
opinions and observations of individuals having direct knowledge of 
drug-related crime and the nature and frequency of these problems in 
developments proposed for assistance. (These individuals may include 
Federal, State, Tribal, and local government law enforcement officials, 
resident or community leaders, school officials, community medical 
officials, substance abuse, treatment (dependency/

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remission) or counseling professionals, or other social service 
providers.)
    (d) The school dropout rate and level of absenteeism for youth that 
you can relate to drug-related crime. If crime or other statistics are 
not available at the development or precinct level, you must use other 
verifiable, reliable and objective data.
    (e) To the extent that the community's Consolidated Plan identifies 
the level of the problem and the urgency in meeting the need, 
references to the Consolidated Plan should be included in your 
response. The Department will review more favorably those applicants 
who used the Consolidated Plan to identify need, when applicable.
Rating Factor 3: Soundness of Approach (Quality of the Plan) (35 
Points)
    This factor addresses the quality and anticipated effectiveness of 
your proposed action plan in taking a comprehensive community-based 
approach toward the problem of drugs and drug-related crime in the 
neighborhood identified in your application.
    Your application must include an action plan for crime reduction 
and elimination efforts, describing in detail: the specific activities 
to be under taken; the parties responsible for or involved in the 
activities for each development proposed for assistance; and the dollar 
amount and extent of resources committed to each activity or service 
proposed.
    In evaluating this factor, HUD will consider the following:
    (1) (25 Points) The quality, comprehensiveness of your action plan 
to address the drug-related crime problem, and the problems associated 
with drug-related crime in the developments proposed for funding, 
including its anticipated effectiveness in reducing or eliminating 
drug-related crime problems immediately and over an extended period, as 
evidenced by:
    (a) The extent to which your proposed activities provide services 
over the existing baseline of services currently provided to the 
project area;
    (b) The extent of the commitment of the partners, as described and 
documented in the MOU in implementing your plan. HUD will evaluate the 
extent to which the activities are comprehensive and result of 
collective actions that effectively work together. If you provide for a 
comprehensive approach, you will receive a higher number of rating 
points. HUD will provide no points under this subfactor if your 
application does not include an MOU with the local law enforcement 
entity with jurisdiction over the neighborhood identified in your 
application;
    (c) The extent to which you have partnered with appropriate 
neighborhood and community stakeholders;
    (d) The extent to which the resources allocated and the budget 
proposed are adequate to conduct the work plan as proposed; and
    (e) Your rationale for the proposed activities and methods and why 
you believe the activities will be effective in reducing drug use and 
drug-related crime. If you are proposing new methods for which there is 
limited knowledge of the effectiveness, you should provide the basis 
for modifying past practices and rationale for why you believe the 
modification will yield more effective results.
    (2) (10 Points) The adequacy of the process you will use to 
collect, maintain, analyze and report Part I and II crimes as defined 
by the Uniform Crime Reporting (UCR System), as well as police workload 
data. The process must include the collection of police workload data 
such as, but not limited to, all calls for service at the housing 
authority by individual development, patterns over a period of time, 
type of crime, and plans to improve data collection and reporting. Your 
proposed analysis of the data collected should include a method for 
assessing the impact of grant activities on the collected crime 
statistics on an on-going basis during the award period.
    (3) Up to two (2) additional points will be awarded to any 
application submitted by the City of Dallas, Texas, to the extent this 
subfactor is addressed. Due to an order of the U.S. District Court for 
the Northern District of Texas, Dallas Division, with respect to any 
application submitted by the City of Dallas, Texas, HUD's consideration 
of this subfactor will consider the extent to which the applicant's 
plan for the use of New Approach Anti-Drug funds will be used to 
eradicate the vestiges of racial segregation in the Dallas Housing 
Authority's programs consistent with the Court's order.
Rating Factor 4: Leveraging Resources (Support of Residents, the Local 
Government and the Community in Planning and Implementing the Proposed 
Activities and Interagency Activities) (10 Points)
    This factor addresses your ability to secure community and 
government resources, in-kind services from local governments, non-
profit entities, including resident organizations, for-profit entities, 
or private organizations to be combined with HUD's program resources to 
achieve program purposes. To be considered as documented evidence of 
leveraging, you must submit a letter signed by the organization head 
authorized to commit the organization which details the amount of funds 
or type of services to be provided. The letter also must identify the 
dollar value of any services or goods in lieu of a cash contribution. 
Therefore, in responding to the factor you must equate the time or 
services provided into a dollar value. This dollar value will be added 
to any cash funding commitments identified as part of your leveraging 
of funds. For example, if you are receiving a donation of security 
alarm systems, you should indicate the number of security systems to be 
provided and give a dollar value for those alarm systems. The value 
will be added to any cash contributions you have noted from others. The 
letter may indicate that the commitment is predicated on the applicant 
receiving the grant from HUD. In assessing this factor, HUD will 
consider the following:
    (1) Evidence of the extent and amount of the commitment of funding, 
staff, or in-kind resources, partnership agreements, and on-going or 
planned cooperative efforts with law enforcement agencies, memoranda of 
understanding, or agreements to participate. Such commitments must be 
signed by an official of the organization legally able to make 
commitments for the organization. This evidence of commitment must 
include organization name, resources, and responsibilities of each 
participant. This also includes interagency activities already 
undertaken, participation in local, state, Tribal or Federal anti-drug 
related crime efforts such as: education, training and employment 
provision components of Welfare Reform efforts, Operation Weed and 
Seed, Operation Safe Home, local law enforcement initiatives and/or 
successful coordination of its law enforcement, or other activities 
with local, state, Tribal or Federal law enforcement agencies.
    (2) HUD may award more points for applications with a higher 
percentage of these resources as compared to Anti-Drug New Approach 
funds requested.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you have coordinated your 
activities with other known organizations, participants or have 
promoted participation in a community's Consolidated Planning process, 
and are working towards addressing a need in a holistic and 
comprehensive manner through

[[Page 9767]]

linkages with other activities in the community.
    In evaluating this factor, HUD will consider the extent to which:
    (1) You have coordinated your proposed activities with those of 
other groups or organizations prior to submission in order to best 
complement, support and coordinate all known activities and if funded, 
the specific steps you will take to share information on solutions and 
outcomes with others. Any written agreements, memoranda of 
understanding in place, or that will be in place after award should be 
described.
    (2) You have taken or will take specific steps to become active in 
the community's Consolidated Planning process (including the Analysis 
of Impediments to Fair Housing Choice) established to identify and 
address a need/problem that is related to the activities the applicant 
proposes.
    (3) You have shared and coordinated information on solutions and 
outcomes with other law-enforcement and governmental agencies, and a 
description of any written agreements in place or that will be put in 
place.
    (4) You have taken or will take specific steps to develop linkages 
to coordinate comprehensive solutions through meetings, information 
networks, planning processes or other mechanisms with:
    (a) Other HUD-funded project/activities outside the scope of those 
covered by the Consolidated Plan; and
    (b) Other Federal, State, or locally funded activities, including 
those proposed or on-going in the community.

VI. Application Submission Requirements

    Each New Approach Anti-Drug application must conform to the 
requirements of the applicable application kit, both in format and 
content. Each New Approach Anti-Drug application must provide the 
following items in addition to the submission requirements listed in 
Section VI of this program section of the SuperNOFA:
    (A) Application Cover Letter;
    (B) Congressional Summary--Summary of your proposed program 
activities in five (5) sentences or less:
    (C) A neighborhood description. The neighborhood description must 
include a basic description (e.g., boundaries and size), population, 
number of housing units in the neighborhood, a map, a population 
profile (e.g., relevant census data on the socio-economic, ethnic and 
family makeup of neighborhood residents), and the basis on which the 
area meets the definition of ``neighborhood'' as described in this 
notice (i.e., describe and include a copy of the comprehensive plan, 
ordinance or other official local document which defines the area as a 
neighborhood, village, or similar geographical designation). If the 
entire jurisdiction is defined as a neighborhood by virtue of having a 
population at less than 25,000, indicate the jurisdiction's population 
under the 1990 census and describe/include more recent information 
which gives the best indication as to the current population.
    (D) The description of the assisted housing development(s) in the 
neighborhood. This must include the name of the project; the name of 
the project owner; the nature, sources, and program titles of all 
project-based subsidies or other assistance provided to the project by 
units of government or private nonprofit entities (any names of public 
or nonprofit programs other than programs sponsored by HUD should be 
accompanied by a description of the program and the name and business 
phone number of a contact person responsible for administering the 
program for the subsidy provider); the number of housing units in the 
project; and the number of housing units in the project that meet the 
definition of ``assisted housing units'' in this notice, and a 
description of the restrictions on rents and resident incomes that, in 
combination with the subsidy provided to the project, qualify the units 
as assisted/affordable in accordance with the definition in this NOFA; 
and the number, geographic proximity (adjoining, adjacent, or scattered 
site, and if scattered site, the distance between the two buildings 
which are furthest apart), and type (single family detached, townhouse, 
garden, elevator) of buildings in the project.
    (E) Application for Federal Assistance form (Standard Form SF-424) 
signed by the chief executive officer of your organization.
    (F) An action plan which describes the activities and roles to be 
undertaken by you and each subgrantee or subrecipient of program funds. 
This action plan may be attached to and referenced in your MOU.
    (G) Narrative responses to the factors for award including any 
required documentation identified under each factor.
    (H) A line item budget which identifies salaries, fringe benefits, 
consultants or subgrantees, equipment, supplies, travel, and general 
and administrative expenses; as well as an estimated dollar amount for 
each activity to be undertaken as part of your action plan.
    (I) Overall budget and timetable that includes separate budgets, 
goals, milestones, and timetables for each activity and addresses 
milestones towards achieving the goals described above; and indicates 
the contributions and implementation responsibilities of each partner 
for each activity, goal, and milestone.
    (J) The number of staff years, the titles and professional 
qualifications, and respective roles of staff assigned full or part-
time to grant implementation by the applicant/grantee.
    (K) Your plan and lines of accountability (including an 
organization chart) for implementing your grant activity, coordinating 
the partnership, and assuring that your and your subgrantees' 
commitments will be met. There must be a discussion of the various 
agencies of the unit of government that will participate in grant 
implementation (which must include the prosecutor's office and at least 
one, but preferably both, of the following: the police department and 
an agency dealing with community development), their respective roles 
(i.e., which has the lead), and their lines of communication.

VII. Corrections to Deficient Applications

    The General Section of this SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    Prior to the award of grant funds under the program, HUD will 
perform an environmental review to the extent required under the 
provisions of 24 CFR part 50. Should the environmental review indicate 
adverse environmental impacts, your application may be downgraded or 
rejected.
    The General Section of this SuperNOFA provides additional guidance 
on Environmental Reviews.

IX. Authority

    This program is authorized under the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1999 (Pub.L. 105-276, approved October 21, 1998), 
under the heading ``Drug Elimination Grants for Low-Income Housing.''

Appendix A--Office of Public Housing, Field Office Directory

New England Region

Boston (Hub)

Donna Ayala, Deputy Director, Office of Public Housing, DHUD--
Massachusetts State Office, Thomas P. O'Neill, Jr. Federal Building, 
10 Causeway Street, Room 553, Boston, MA 02222-1092, (617) 565-5197, 
(617) 565-7305 (FAX)

[[Page 9768]]

Hartford (Program Center)

Sonia D. Samuels, Program Center Coordinator, Office of Public 
Housing, DHUD--Connecticut State Office, One Corporate Center, 19th 
Floor, Hartford, CT 06103-3220, (860) 240-4800, (860) 240-4854 (FAX)

New York/NJ Region

New York (Hub)

Mirza Del Rosario, Director, Office of Public Housing, DHUD--New 
York State Office, 26 Federal Plaza, Suite 32-116, New York, New 
York 10278-0068, (212) 264-8931, (212) 264-9834 (FAX)

Buffalo (Hub)

Joan Spilman, Director, Office of Public Housing, DHUD--Buffalo 
State Office, Lafayette Court, 465 Main Street, Fifth Floor, 
Buffalo, New York 14203-1780, DIRECT NUMBER: (716) 551-5719, (716) 
551-5755, (716) 551-4789 (FAX)

Newark (Hub)

Carmen Valenti, Director, Office of Public Housing, DHUD--New Jersey 
State Office, One Newark Center, 13th Floor, Newark, NJ 07102-5260, 
(973) 622-7900, Ext. 3600, (973) 645-2270 (FAX)

Mid-Atlantic Region

Philadelphia (Hub)

Malinda Roberts, Director, Office of Public Housing, DHUD--
Pennsylvania State Office, The Wanamaker Building, 100 Penn Square 
East, Philadelphia, PA 19107-3390, (215) 656-0576, ext. 3308, (215) 
656-3424 (FAX)

Baltimore (Hub)

William Tamburrino, Director, Office of Public Housing, DHUD--
Maryland State Office, City Crescent Building, 10 South Howard 
Street, 5th Floor, Baltimore, Maryland 21201-2505, (410) 962-2520, 
ext. 3102, (410) 962-4378 (FAX)

Pittsburgh (Hub)

Paul LaMarca, Director, Office of Public Housing, DHUD--Pittsburgh 
Area Office, 339 Sixth Avenue, Sixth Floor, Pittsburgh, PA 15222-
2515, (412) 644-6571, (412) 644-5486 (FAX)

Richmond (Program Center)

Pat Anderson, Program Center Coordinator, Office of Public Housing, 
DHUD--Virginia State Office, The 3600 Centre, 3600 West Broad 
Street, P.O. Box 90331, Richmond, VA 23230-0331, (804) 278-4500, 
X3217, (804) 278-4636 (FAX)

Washington, DC (Program Center)

Lee Palman, Program Center Coordinator, DHUD--District of Columbia 
Office, 820 First Street, NE; Suite 450, Washington, DC 20002-4205, 
(202) 275-7965, ext 3175, (202) 275-6690 (FAX)

Southeast Region

Atlanta (Hub)

Boyce Norris, Deputy Director, Office of Public Housing, DHUD--
Georgia State Office, Richard B. Russell Federal Building, 75 Spring 
Street, SW, Atlanta, GA 30303-3388, (404) 331-4766, (404) 331-1022 
(FAX)

Birmingham (Hub)

Mack Heaton, Director, Office of Public Housing, DHUD--Alabama State 
Office, Beacon Ridge Tower, 600 Beacon Parkway West, #300, 
Birmingham, AL 35209-4144, (205) 290-7601, ext 1101, (205) 290-7502 
(FAX)

Columbia (Program Center)

Larry Knighter, Program Center Coordinator, Office of Public 
Housing, DHUD--South Carolina State Office, Strom Thurmond Federal 
Building, 1835 Assembly Street, Columbia, SC 29201-2480, (803) 765-
5831, (803) 765-5515 (FAX), (806) 253-3428

Greensboro (Hub)

Ledford Austin, Director, Office of Public Housing, DHUD--North 
Carolina State Office, Koger Building, 2306 West Meadowview Road, 
Greensboro, NC 27407-3707, (336) 547-4038, (336) 547-4129 (FAX)

Jackson (Program Center)

George Smith, Program Center Coordinator, Office of Public Housing, 
DHUD--Mississippi State Office, Doctor A.H. McCoy Federal Building, 
100 West Capitol Street, Room 910, Jackson, MS 39269-1016, (601) 
965-4761, (601) 965-4733 (FAX)

Coral Gables (Hub)

Karen Cato-Turner, Director, Office of Public Housing, DHUD--Florida 
State Office, Gables I Towers, Suite 501, 1320 South Dixie Highway, 
Coral Gables, FL 33146-2911, (305) 662-4589, X2270, (305) 662-4537 
(FAX)

Jacksonville (Hub)

John Niesz, Director, Office of Public Housing, DHUD--Jacksonville 
Area Office, Southern Bell Tower, 301 West Bay Street, Suite 2200, 
Jacksonville, FL 32202-5121, (904) 232-1777, X2142, (904) 232-1721 
(FAX)

Louisville (Hub)

Arthur Wasson, Director, Office of Public Housing, DHUD--Kentucky 
State Office, 601 West Broadway, Post Office Box 1044, Louisville, 
KY 40201-1044, (502) 582-6163, ext 370, (502) 582-6558 (FAX)

Knoxville (Program Center)

Sidney McBee, Program Center Coordinator, Office of Public Housing, 
DHUD--Knoxville Area Office, John J. Duncan Federal Building, 710 
Locust Street, Third Floor, Knoxville, TN 37902-2526, (423) 545-
4402, X4, (423) 545-4558 (FAX)

Nashville (Program Center)

Karen Gill, Acting Program Center Coordinator, Office of Public 
Housing, DHUD--Tennessee State Office, 251 Cumberland Bend Drive, 
Suite 200, Nashville, TN 37228-1803, (615) 736-5063, ext. 6132, 
(615) 736-2385 (FAX)

San Juan (Hub)

Hildamar Ortiz, Director, Office of Public Housing, DHUD--Caribbean 
Office, Administracion de Terrenos Building, 171 Carlos E. Chardon 
Avenue, Suite 301, San Juan, PR 00918-0903, (787) 766-5400, X2031, 
(787) 766-6504 (FAX)

Mid-West Region

Chicago (Hub)

Debra Torres, Director, Office of Public Housing, DHUD--Illinois 
State Office, Ralph H. Metcalf Federal Building, 77 West Jackson 
Boulevard, Chicago, IL 60604-3507, (312) 353-1915, (312) 353-6236, 
x2302, (312) 886-4060 (FAX)

Cleveland (Hub)

Thomas Marshall, Director, Office of Public Housing, DHUD--Cleveland 
Area Office, Renaissance Building, 1350 Euclid Avenue, Suite 500, 
Cleveland, OH 44115-1815, (216) 522-2700, (216) 522-7100 (FAX)

Columbus (Program Center)

David Kellner, Program Center Coordinator, Office of Public Housing, 
DHUD--Ohio State Office, 200 North High Street, Columbus, OH 43215-
2499, (614) 469-5787, X8224, (614) 469-5123 (FAX)

Detroit (Hub)

Joann L. Adams, Director, Office of Public Housing, DHUD--Michigan 
State Office, Patrick V. McNamara Federal Building, 477 Michigan 
Avenue, Detroit, MI 48226-2592, (313) 226-6880, X8111, (313) 226-
6160 (FAX)

Indianapolis (Program Center)

Forrest Jones, Program Center Coordinator, Office of Public Housing, 
DHUD--Indiana State Office, 151 North Delaware Street, Suite 1200, 
Indianapolis, IN 46204-2556, (317) 226-6557, (317) 226-5594 (FAX)

Milwaukee (Program Center)

John Finger, Program Center Coordinator, DHUD--Wisconsin State 
Office, Henry S. Reuss Federal Plaza, 310 West Wisconsin Avenue, 
Suite 1380, Milwaukee, WI 53203-2289, (414) 297-1029, Ext. 8212, 
(414) 297-1180 (FAX)

Minneapolis (Hub)

Daniel Larson, Director, Office of Public Housing, DHUD--Minnesota 
State Office, 220 South Second Street, Minneapolis, Minnesota 55401-
2195, (612) 370-3135, Ext. 2220, (612) 370-3003 (FAX)

Southwest Region

Fort Worth (Hub)

Eileen Rogers, Director, Office of Public Housing, DHUD--Texas State 
Office, 1600 Throckmorton, Post Office Box 2905, Fort Worth, TX 
76113-2905, (817) 978-9325, X3332, (817) 978-9382 (FAX)

Albuquerque (Program Center)

Dolly A. Clark, Acting Program Center Coordinator, Office of Public 
Housing, DHUD--New Mexico State Office, 625 Truman Street, N.E., 
Albuquerque, N.M. 87110-6443, (505) 346-7303, ext. 271, (505) 346-
6604 (FAX)

Houston (Program Center)

Raynold Richardson, Program Center Coordinator, Office of Public 
Housing, DHUD--Houston Area Office, Norfolk Tower, 2211 Norfolk, 
Suite 200, Houston, TX 77098-4096, (713) 313-2274/2280, (713) 313-
2371 (FAX)

[[Page 9769]]

Little Rock (Hub)

Catherine Lamberg, Director, Office of Public Housing, DHUD--
Arkansas State Office, TCBY Tower, 425 West Capitol Avenue, Suite 
900, Little Rock, AR 72201-3488, (501) 324-5933, (501) 324-5448 
(FAX)

New Orleans (Hub)

Chester Drozdowski, Director, Office of Public Housing, DHUD--
Louisiana State Office, 501 Magazine Street, Ninth Floor, New 
Orleans, LA 70130, (504) 589-7235, (504) 589-6177 (FAX)

Oklahoma City (Program Center)

Robert Vasquez, Program Center Coordinator, Office of Public 
Housing, DHUD--Oklahoma State Office, 500 West Main Street, Oklahoma 
City, OK 73102, (405) 553-7454, (405) 552-7530 (FAX)

San Antonio (Hub)

Diana Armstrong, Director, Office of Public Housing, DHUD--San 
Antonio Area Office, Washington Square, 800 Dolorosa Street, San 
Antonio, TX 78207-4563, (210) 475-6865, (210) 472-6816 (FAX)

Great Plains Region

Kansas City (Hub)

Andrew Boeddeker, Director, Office of Public Housing, DHUD--Kansas/
Missouri State Office, Gateway Tower II, 400 State Avenue, Kansas 
City, KS 66101-2406, (913) 551-5582, (913) 551-6981 (FAX)

Omaha (Program Center)

Charlie D. Hill, Program Center Coordinator, Office of Public 
Housing, DHUD--Nebraska State Office, Executive Tower Centre, 10909 
Mill Valley Road, Omaha, NE 68154-3955, (402) 492-3137, (402) 492-
3163 (FAX)

St. Louis (Program Center)

Patricia Straussner, Program Center Coordinator, Office of Public 
Housing, DHUD--St. Louis Area Office, Robert A. Young Federal 
Building, 1222 Spruce Street, St. Louis, MO 63103, (314) 539-6505, 
(314) 539-6508 (FAX)

Rocky Mountain Region

Denver (Hub)

John Dibella, Director, Office of Public Housing, DHUD--Colorado 
State Office, First Interstate Tower North, 633--17th Street, 12th 
Floor, Denver, CO 80202-3607, (303) 672-5380, ext 1244, (303) 672-
5065 (FAX)

Pacific/Hawaii Region

San Francisco (Hub)

Joyce Lee, Director, Office of Public Housing, DHUD--California 
State Office, Phillip Burton Federal Building/Courthouse, 450 Golden 
Gate Avenue, Ninth Floor, San Francisco, CA 94102-3448, (415) 436-
8375, (415) 436-6440 (FAX)

Los Angeles (Hub)

Bob Cook, Director, Office of Public Housing, DHUD--Los Angeles Area 
Office, AT&T Center, 611 West 6th Street, Suite 800, Los Angeles, CA 
90017-3127, (213) 894-8000, ext 3500, (213) 894-8125 (FAX)

NW/Alaska Region

Seattle (Hub)

Lynn Martin, Director, Office of Public Housing, DHUD--Washington 
State Office, Seattle Federal Office Building, 909--1st Avenue, 
Suite 360, Seattle, WA 98104-1000, (206) 220-5290, Ext 3694, (206) 
220-5255 (FAX)

Portland (Program Center)

Elizabeth Santone, Program Center Coordinator, DHUD--Oregon State 
Office, 400 Southwest Sixth Avenue, Suite 700, Portland, OR 97204-
1596, (503) 326-2619, (503) 326-4065 (FAX)

BILLING CODE 4210-32-P

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Notices  

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BILLING CODE 4210-32-C

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[[Page 9773]]



Funding Availability for Public and Indian Housing Drug Elimination 
Technical Assistance Program

Program Overview

    Purpose of the Program. The purpose of the Public and Indian 
Housing Drug Elimination Technical Assistance Program (PHDE-TA) is to 
provide no more than 30 billable days of technical assistance (TA) 
consultant services to assist public housing agencies (PHAs), Indian 
tribes and Tribally Designated Housing Entities (TDHEs), Resident 
Management Corporations (RMCs), incorporated Resident Councils (RCs), 
and Resident Organizations (ROs) in responding immediately to drug and 
drug-related crime in public and Tribal housing communities. The TA 
services may be conducted over a period of not more than 90 days.
    Available Funds. Approximately $2 million (which includes Fiscal 
Year 1997 carryover) is available for funding short-term technical 
assistance.
    Eligible Applicants. Public Housing Authorities (PHAs), Indian 
tribes and Tribally Designated Housing Entities (TDHEs); incorporated 
Resident Management Corporations (RMCs), incorporated Resident Councils 
(RCs), and Resident Organizations (ROs).
    Application Deadline. June 16, 1999.
    Match. None.
Additional Information
    If you are interested in applying for Public Housing Drug 
Elimination Technical Assistance funding, please review carefully the 
General Section of this SuperNOFA and the following additional 
information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Submit one original application and one copy 
to the Community Safety and Conservation Division (CSCD), Room 4206 at 
the HUD Headquarters Building located at 451 Seventh Street, SW, 
Washington, DC, 20410, on or before 12:00 midnight on June 16, 1999. 
The only exception to this deadline is for HUD-Initiated Public Housing 
Drug Elimination Technical Assistance, for which there is no 
application deadline. See the General Section of this SuperNOFA for 
specific procedures governing the form of application submission (e.g., 
mail applications, express mail, overnight delivery, or hand-carried).
    Submit a copy of your application to the appropriate HUD Field 
Office or HUB with delegated public housing responsibilities for your 
organization. See Appendix I for a list of HUD offices with delegated 
responsibilities. You may also call the SuperNOFA Information Center at 
1-800-HUD-8929 if you have a question regarding where you should submit 
your application (persons with hearing or speech impairments may call 
the Center's TTY number at 1-800-843-2209).
    You must submit with your application(s) to CSCD, a Confirmation 
Form documenting that the appropriate HUD Field Office or HUB received 
your TA application (this form is a threshold requirement).
    HUD will review PHDE-TA applications on a continuing basis until 
June 15, 1999, or until funds available under this program are 
expended. Due to the reduced availability of funds in FY 1999, HUD 
encourages you to submit early.
    For Application Kits. For an application kit and any supplemental 
information, please call the SuperNOFA Information Center at 1-800-HUD-
8929. Persons with hearing or speech impairments may call the Center's 
TTY number at 1-800-843-2209. When requesting an application kit, 
please refer to the Public Housing Drug Elimination Technical 
Assistance Program, and provide your name, address (including zip code) 
and telephone number (including area code). An application kit is also 
available on the Internet through the HUD web site at http://
www.hud.gov.
    For Further Information and Technical Assistance. For answers to 
your questions please call the local HUD Field Office or HUB where you 
will be submitting your application or you may call the Public Housing 
Drug Elimination TA Support Center at the 1-800-578-3472.

II. Amount Allocated

    For FY 1999, approximately $2 million is available for Public 
Housing Drug Elimination Technical Assistance.

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    (1) The purpose of this program is to provide not more than 30 
billable days of technical assistance (TA) consultant services to 
assist public housing agencies (PHAs), Indian tribes and Tribally 
Designated Housing Entities (TDHEs), Resident Management Corporations 
(RMCs), incorporated Resident Councils (RCs) and Resident Organizations 
(ROs) in responding immediately to drug and drug-related crime in 
public and Tribal housing communities. The TA services may be conducted 
over a period not to exceed 90 days. Housing Authorities are encouraged 
to use this program as a tool to evaluate and monitor the Public 
Housing Drug Elimination Program grants.
    (2) HUD may also initiate TA under this program. HUD initiated TA 
does not require an application but is also short term assistance.
    (3) The program will fund the use of consultants who can provide 
the necessary consultation and/or training for the types of activities 
outlined below. HUD will fund the use of consultants to assist the 
applicant undertaking tasks including preparing a proposed strategic or 
long-range plan for reducing drugs and drug-related crime, or 
conducting a needs assessment or comprehensive crime survey. The PHDE-
TA program also funds efforts in:
    (a) Assessing, quantifying and establishing performance measurement 
systems (including gathering baseline statistics) relating to drug and 
drug-related crime problems in public or Tribal housing development(s) 
and surrounding community(ies);
    (b) Training for housing authority staff and residents in anti-
crime and anti-drug prevention practices and programs;
    (c) Evaluating current anti-crime and anti-drug-related crime 
programs.
    (d) Designing and identifying appropriate anti-crime and anti-drug-
related practices and programs in the following areas:
    (i) Law enforcement strategies, including negotiating with the 
local police, working with Federal law enforcement, Operation Safe 
Home, Weed and Seed, and other Federal anti-crime efforts;
    (ii) Crime data collection for establishing baseline performance 
measurements;
    (iii) Youth leadership development; youth anti-gang, anti-violence, 
anti-drug initiatives; youth peer mediation and conflict resolution to 
deal directly with anger/violence to prevent future violent episodes;
    (iv) Resident patrols; and
    (v) Security and physical design.

(B) Eligible Applicants

    PHAs, Indian tribes and TDHEs, RCs, ROs in the case of Indian 
tribes and TDHEs, and RMCs are eligible to receive short-term technical 
assistance services under this PHDE-TA Program. Specific eligibility 
requirements are:
    (1) If you are an RC or RO, you must be an incorporated nonprofit 
organization or association that meets all seven of the following 
requirements:
    (a) You must be representative of the residents you purport to 
represent.
    (b) You may represent residents in more than one development or in 
all of

[[Page 9774]]

the developments of a PHA or Indian tribe or TDHE, but you must fairly 
represent residents from each development that you represent.
    (c) You must adopt written procedures providing for the election of 
specific officers on a regular basis, but at least once every 3 years.
    (d) You must have a democratically elected governing board. The 
voting membership of your board must consist of residents of the 
development or developments that you represent.
    (e) You must be supported in your application by a PHA or an Indian 
tribe or TDHE.
    (f) You must provide evidence of incorporation.
    (g) You must provide evidence of adopted written procedures for 
electing officers.
    (2) If you are an RMC, you must be an entity that proposes to enter 
into, or that enters into, a management contract with a PHA under 24 
CFR part 964, or a management contract with an Indian tribe or TDHE. 
You must have all seven of the following characteristics:
    (a) You must be a nonprofit organization incorporated under the 
laws of the State or Indian tribe where you are located.
    (b) You may be established by more than one RO or RC, so long as 
each: approves the establishment of your corporation; and has 
representation on the Board of Directors of your corporation.
    (c) You must have an elected Board of Directors.
    (d) Your by-laws must require the Board of Directors to include 
representatives of each RO or RC involved in establishing the 
corporation.
    (e) Your voting members must be residents of the development or 
developments you manage.
    (f) You must be approved by the RC. If there is no council, a 
majority of the households of the development must approve the 
establishment of your organization to determine the feasibility of 
establishing a corporation to manage the development.
    (g) You may serve as both the RMC and the RC, so long as your 
corporation meets the requirements of 24 CFR part 964 for a RC. (In the 
case of a RMC for an Indian tribe or TDHE, you may serve as both the 
RMC and the RO, so long as your corporation meets the requirements of 
this program for a RO.)
    (3) You can only submit one application per award period. A PHA and 
its eligible resident groups, and an Indian tribe and its TDHE may 
apply during the same award period as long as there is no conflict or 
overlap in your proposed activities. You are eligible to apply to 
receive technical assistance even if you are already receiving 
technical assistance under this program, as long as your request 
creates no scheduling conflict with other PHDE-TA requests. If HUD 
Initiates TA with your organization, you may not receive more than one 
type of technical assistance concurrently unless HUD, in consultation 
with your organization, determines that the TA will not negatively 
affect the quality of the PHDE-TA.
    (4) You are eligible to apply to receive technical assistance 
whether or not you are already receiving drug elimination funds under 
the Public and Indian Housing Drug Elimination Program.
    (5) You must comply with the laws, regulations, and Executive 
Orders applicable to the Drug Elimination TA Program, including 
applicable civil rights laws.

(C) Eligible Activities

    (1) Funding is limited to technical assistance for carrying out 
activities authorized under Chapter 2, Subtitle C, Title V of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11901 et. seq.), as amended by 
section 581 of the National Affordable Housing Act of 1990 (Pub.L. 101-
625, approved November 28, 1990) (NAHA), and section 161 of the Housing 
and Community Development Act of 1992 (Pub.L. 102-550, approved October 
28, 1992) (HCDA 1992).
    (2) The following circumstances are eligible for HUD-Initiated 
Technical Assistance under the Public and Indian Housing Drug 
Elimination Technical Assistance Program. Eligible parties may receive 
technical assistance initiated and approved by HUD due to drug- and/or 
crime-related circumstances that require immediate attention. HUD-
Initiated technical assistance may be requested by HUD staff for one or 
more of the following circumstances:
    (a) Housing authorities, Indian tribes, TDHEs, RCs, ROs, and RMCs 
that applied, but did not receive a Public Housing Drug Elimination 
Program Grant;
    (b) Housing authorities, Indian tribes, TDHEs, RCs, ROs, and RMCs 
that are unable to document their drug and/or crime problems through 
crime statistics;
    (c) Housing authorities, Indian tribes, TDHEs, RCs, ROs, and RMCs 
that do not have the expertise to develop effective drug and crime 
prevention programs;
    (d) Housing authorities, Indian tribes, TDHEs, RCs, ROs, and RMCs 
that have difficulty developing and/or maintaining partnerships within 
the community;
    (e) Housing authorities, Indian tribes, TDHEs, RCs, ROs, and RMCs 
that have difficulty developing and/or fostering a sense of partnership 
regarding drug- and/or crime-related problems with residents;
    (f) Housing authorities, Indian tribes, TDHEs, RCs, ROs, and RMCs 
that need assistance in developing evaluation mechanisms for drug 
elimination programs and strategies to include ``One Strike and You're 
Out'' and the Public Housing Drug Elimination Program; and
    (g) Housing authorities, Indian tribes, TDHEs, RCs, ROs, and RMCs 
with special circumstances whose needs fit under the scope of this 
program section of the SuperNOFA.
    (4) Ineligible Activities. Funding is not permitted for:
    (a) Any type of monetary compensation for residents.
    (b) Any activity that is funded under any other HUD program, 
including TA and training for the incorporation of RCs or RMCs, and 
other management activities.
    (c) Any type of resident training that does not relate to or result 
in crime and drug reduction or elimination.
    (d) Salary or fees to your staff, or your former staff within a 
year of their employment.
    (e) Underwriting conferences.
    (f) Conference speakers.
    (g) Program implementation, proposal writing, financial support for 
existing programs, or efforts requiring more than 30 billable days of 
technical assistance over a 90 day period or assistance that will 
require more than 90 days to complete; the purchase of hardware or 
equipment, or any activities deemed ineligible in the Drug Elimination 
Program, excluding consultant's fees.

IV. Program Requirements

    Except as stated below in this section, you must meet the 
requirements listed in Section II of the General Section of this 
SuperNOFA. You must also meet these additional requirements:
    (A) Individual Award Amounts. You may not submit an application for 
more than $15,000.
    (1) Applications for short-term technical assistance may be funded 
up to $15,000, with HUD providing payment directly to your authorized 
consultant for the consultant's fee, travel, room and board, and other 
approved costs at the government rate approved by HUD.
    (2) Technical assistance initiated by HUD may be for any amount up 
to $25,000 when HUD staff determine that more than 30 billable days of 
technical assistance over a 90-day period is justified.
    (B) Receipt of More than One Application. If HUD receives more than

[[Page 9775]]

one application from a HA, or a group of RCs, ROs, or RMCs, or an 
Indian tribe and a TDHE, in proximity to one another, HUD may exercise 
discretion to consider any two or more applications as one, 
recommending one or more consultants and executing contracts for any 
combination of applications.
    (C) Affirmatively Furthering Fair Housing. Section II.(D) of the 
General Section does not apply to this technical assistance program.
    (D) Eligible Consultants. HUD is seeking individuals or entities 
who have experience working with public or Tribal housing or other low-
income populations to provide short-term technical assistance under 
this PHDE-TA Program section of the SuperNOFA. Consultants who have 
previously been deemed eligible and are part of HUD's TA Consultant 
Database need not reapply, but are encouraged to update their file with 
more recent experience and rate justification.
    (1) To qualify as an eligible consultant, you should have 
experience in one or more of the following general areas:
    (a) PHA/Indian tribe or TDHE-related experience with: agency 
organization and management; facility operations; program development; 
and experience working with residents and community organizations.
    (b) Anti-crime and anti-drug-related experience with: prevention/
intervention programs; and enforcement strategies.
    (c) Experience as an independent consultant, or as a consultant 
working with a firm with related experience and understanding of on-
site work requirements, contractual, reporting and billing 
requirements.
    (2) HUD is especially interested in encouraging TA consultant 
applications from persons who are qualified and have extensive 
experience planning, implementing, and/or evaluating the following 
professional areas:
    (a) Lease, screening and grievance procedures;
    (b) Defensible space, security and environmental design;
    (c) Parenting, peer support groups and youth leadership;
    (d) Career planning, job training, tutoring and entrepreneurship;
    (e) Community policing, neighborhood watch and anti-gang work;
    (f) Strengthening resident organizing, involvement, and relations 
with management; and
    (g) ``One Strike You're Out'' programs.
    (3) Additional requirements for consultants include the following:
    (a) In addition to the conflict of interest requirements in 24 CFR 
part 85, no person who is an employee, agent, officer, or appointed 
official of an eligible applicant may be funded as a consultant to that 
organization by this Drug Elimination Technical Assistance Program.
    (b) If you are a consultant who wishes to provide drug elimination 
technical assistance services through this program, you must not have 
had any involvement in the preparation or submission of any PHDE-TA 
proposal. Your involvement will be considered a conflict of interest, 
making you ineligible for providing consulting services to the eligible 
applicant and will disqualify you from future consideration. This 
prohibition shall also be invoked for preparing and distributing 
prepared generic or sample applications to entities eligible to apply 
for funding under this program. If HUD determines that any application 
submitted by a PHA, Indian tribe or TDHE, RC, RO or RMC duplicates a 
sufficient amount of any prepared sample to raise issues of possible 
conflict of interest, and HUD determines you provided and distributed 
the sample, you will be disqualified from receiving HUD funds.
    (4) HUD-registered consultants are eligible to receive funds to be 
reimbursed for up to $15,000 for conducting short-term technical 
assistance. Long-term results are expected from each job. After your 
work is completed, evaluations from recipients of the technical 
assistance services will be submitted to HUD on your work performance. 
The evaluations will be carefully reviewed to make sure the recipients 
of TA are satisfied with your services. If your performance receives a 
satisfactory rating, you will be reimbursed by HUD. In extreme cases of 
technical assistance needs, staff members of HUD Headquarters and field 
offices may recommend specialized technical assistance for which you 
can receive up to $25,000 in funds.
    (E) Ineligible Consultants. Consultants and/or companies currently 
debarred or suspended by HUD are not eligible to perform services under 
this program. Also, consultants that are not in the official Consultant 
database are considered ineligible for this program.
    (F) Application Process for Consultants. (1) If you are an 
individual or entity interested in being listed in the PHDE-TA 
Consultant Database, you must prepare your application and send it to 
the address specified in the application kit. Before you can be entered 
into the Consultant Database, you must submit an application that 
includes the following information:
    (a) The Consultant Resource Inventory Questionnaire, including at 
least three written references, all related to the general areas listed 
in this PHDE-TA Program section of the SuperNOFA. One or two of the 
written references must relate to work for a PHA, Indian tribe or TDHE, 
RC, RO or RMC;
    (b) A resume;
    (c) Documented evidence of the standard daily fee previously paid 
to you for technical assistance services similar to eligible activities 
under this PHDE-TA Program. If you can justify up to the equivalent of 
ES-IV, or $462.00 per day, your evidence must include an accountant's 
statement, W-2 Wage Statements, or payment statements, supplemented 
with a signed statement or other evidence from the employer of days 
worked in the course of the particular project (for a payment 
statement) or the tax year (for a W-2 Statement).
    (2) You may not have any more than two contracts or purchase orders 
at one time nor be involved with more than one company at a time that 
has active Technical Assistance contracts. If you are working as a 
member of a multi-person firm, the key individual for the specific 
contract must be listed on each contract as the point of contact. The 
point of contact must be on-site more hours than any other contracted 
staff billing to the purchase order, and that individual may have no 
more than two purchase orders active at the same time.
    (3) HUD will determine your specific fee based upon the evidence 
you submitted under this PHDE-TA Program.
    (4) If you are an employee of a housing agency (HA), Indian tribe, 
or TDHE, you may not serve as a consultant to your employer. If you 
serve as a consultant to other than your employer, you must be on 
annual leave to receive the consultant fee.
    (5)(i) Consultants may not be requested by name from HUD's 
database.
    (ii) Consultants will be recommended to an organization seeking TA, 
based on factors including previous experience, reasonableness of the 
fee, and geographic proximity to the site where TA will be provided. 
Section V of this PHDE-TA section of this SuperNOFA explains this 
further.

V. Application Selection Process

(A) General

    HUD will review applications on a continuing first-come, first-
served basis, until funds under this PHDE-TA section of the SuperNOFA 
are no longer available. Eligible applications will be

[[Page 9776]]

funded in the order in which negotiations for a statement of work are 
completed. HUD-Initiated applications will be received throughout the 
year with no deadline or until funds are expended.

(B) Threshold Requirements for Funding Consideration

    If you are requesting TA services, you must meet the following 
requirements:
    (1) Your application must not request an ineligible activity. You 
cannot request PHDE-TA by answering ``to conduct a needs assessment or 
survey.'' You must be able to answer the questions below and discuss 
what prevents you from identifying, describing, and/or measuring the 
problems.
    (a) What is the nature of the drug-related crime problem in your 
community in terms of the extent of crime, the types of crime, and the 
types of drugs being used? You should include quantifiable or 
qualitative data on drug problems or criminal activity.
    (b) What problem(s) do you need technical assistance to address, 
how do you plan to address them, and how will you know the technical 
assistance provided was successful in addressing the problem(s)?
    (c) What types of partnerships currently exist between your 
organization and other organizations in or within the community (i.e., 
the police, social service organizations, universities, the YMCA/YWCA, 
etc.)?
    (d) How will PHDE-TA be used to improve those relationships?
    (e) What specific output, outcome, results, or deliverables do you 
expect from the consultant, including improved coordination or 
partnership arrangements within your community?
    (f) What steps are you and your organization currently taking to 
measure, understand or address the drug-related crime problem in your 
development or housing authority?
    (g) How will the proposed assistance allow you to develop an anti-
drug, anti-crime strategy; or how will the proposed assistance fit into 
your current strategy?
    (2) The application must include the form, ``HUD Field Office/AONAP 
Confirmation Form.''
    (3) If your application does not meet the requirements described 
above it will not be considered for funding.

(C) Application Awards

    (1) If your application is deemed eligible for funding and 
sufficient funds are available, you will be contacted by HUD or its 
agent to confirm the work requirements.
    (2) Only one application will be accepted from a HA, Indian tribe 
or TDHE; or group of RCs, ROs or RMCs in proximity to one another. HUD 
may exercise its discretion to consider any two or more applications as 
one, assuming that the applications are received at the same time, or 
before approval by the Office of Finance and Accounting and the Office 
of Procurement and Contracts, executing the contract, and providing 
notification to the consultant to proceed to work.
    (3) Once your application for TA has been reviewed and found 
acceptable by HUD, the TA Consultant Database will be searched for 
consultants who have:
    (a) A principal place of business or residence located within the 
same geographic area as the applicant. For purposes of this program 
section of the SuperNOFA, the term ``geographic area'' refers to, in 
order of priority: city, state, region, and country;
    (b) The requisite knowledge, skills, and abilities to respond to 
the request and in address the identified needs; and
    (c) The most reasonable (least expensive) fees.
    (4) HUD will then forward to you a list of suggested consultants 
from the consultant data base. From this list, you must select a 
consultant to provide your requested TA.
    (5)(a) From the list provided by HUD, you must contact three TA 
consultants. HUD may request confirmation from each contacted 
consultant that they were contacted. If HUD determines that any 
consultant was not contacted, HUD may consider your selection by the 
applicant void, and can choose a consultant for you.
    (b) After contacting each consultant, you must send a written 
justification for your recommended selection in order preference. If 
any are unacceptable, you must also indicate the consultant and the 
reasons you find them unacceptable.
    (c) If you find that all referred consultants lack the requisite 
expertise, you must provide written detailed documentation justifying 
this decision. If HUD determines that your justification is adequate, 
you will be provided with a second list of potential consultants.
    (d) If you do not provide HUD the written justification of 
consultant choice within 30 calendar days, HUD reserves the right to 
cancel your TA request.
    (6)(a) HUD or its agent will work with your selected consultant and 
you to develop a ``statement of work.'' The statement of work should 
include:
    (i) A time line and estimated budget;
    (ii) A discussion of the kind of technical assistance and skills 
needed to address the problem, and how the technical assistance 
requested will address these needs; and
    (iii) A description of the current crime and drug elimination 
strategy, and how the requested technical assistance will assist that 
strategy. If the applicant does not currently have a strategy, there 
should be a statement of how the technical assistance will help them 
develop a crime and drug elimination strategy.
    (b)(i) When HUD has completed the authorization to begin work, your 
selected consultant will be contacted to start work. Your consultant 
must receive written authorization from HUD or its authorized agent 
before beginning to provide technical assistance. The requesting 
organization and the relevant Field Office or Area Office of Office of 
Native American Programs will also be notified that authorization to 
begin work has been given.
    (ii) Work begun before the authorized date will be considered 
unauthorized and will not be compensated by HUD.
    (iii) Consultants will only be reimbursed for a maximum of 30 days 
of work, which must be completed in fewer than 90 days from the date of 
the approved statement of work. The exception to this will be for HUD-
Initiated technical assistance.

VI. Application Submission Requirements

(A) General

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, each TA application must conform to the 
requirements of the Public and Indian Housing Drug Elimination 
Technical Assistance Application Kit, both in format and content. A 
PHDE-TA application must include both the descriptive letter (or form 
provided in the application kit) and certification statement (or form 
provided in the application kit) to be eligible for funding.

(B) Forms, Certifications and Assurances

    In addition to the forms, certifications and assurances listed in 
Section IV of the General Section of the SuperNOFA, the following must 
be complied with:
    (1) Applications must be signed and certified by both the Executive 
Director or Tribal Council or authorized TDHE official and a resident 
leader.
    (2) The certification must indicate that:
    (a) A copy of the application was sent to the local HUD Field 
Office, Director of Public Housing Division, or Administrator, Office 
of Native American Programs;
    (b) The application was reviewed by both the housing authority 
Executive

[[Page 9777]]

Director or Tribal Council or authorized TDHE official, and a resident 
leader of your organization; and
    (c) Any technical assistance received will be used in compliance 
with all requirements in the SuperNOFA.
    (3) The application must contain a four page (or fewer) application 
letter responding to each of the requirements listed in Section V(B) of 
the PHDE-TA Program section of the SuperNOFA.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    In accordance with 24 CFR 50.19(b)(9), the assistance provided 
under this program relates only to the provision of technical 
assistance and therefore is categorically excluded from the 
requirements of the National Environmental Policy Act and is not 
subject to environmental review under the related laws and authorities. 
This determination is based on the ineligibility of real property 
acquisition, construction, rehabilitation, conversion, leasing, or 
repair for HUD assistance under this program.

IX. Authority

    The FY 1999 HUD Appropriations Act under the heading, ``Drug 
Elimination Grants for Low-Income Housing (Including Transfer of 
Funds).''

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Notices  

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Notices  

[[Page 9781]]



Funding Availability for Drug Elimination Grants for Federally 
Assisted Low-Income Housing (Multifamily Housing Drug Elimination)

Program Overview

    Purpose of the Program. The purpose of this Multifamily Housing 
Drug Elimination Grant Program is to enable owners of federally 
assisted low-income housing developments to deal effectively with drug-
related criminal activity in and around their developments, through a 
plan of activities including enhanced security measures, and drug-abuse 
prevention, intervention, referral, and treatment programs.
    Available Funds. Approximately $16.25 million.
    Eligible Applicants. Only owners of eligible developments may apply 
for and become the recipient of grant funds. Property management 
companies may administer grant programs, but are not eligible 
applicants.
    Application Deadline. June 16, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Your completed application (an original and 
two copies) is due on or before 6:00 pm local time in the HUD Field 
Office with jurisdiction over your development on June 16, 1999.
    See the General Section of this SuperNOFA for specific procedures 
concerning the form of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Address for Submitting Applications. The Appendix contains a list 
of HUD Field Offices where you must send your application by the 
deadline. Please address your application to the Director, Multifamily 
Housing Hub or Program Center in your local HUD Field Office.
    For Application Kits. For an application kit, please call the 
SuperNOFA Information Center at 1-800-HUD-8929. If you have a hearing 
or speech impairment, please call the Center's TTY number at 1-800-843-
2209. When requesting an application kit, please refer to Multifamily 
Housing Drug Elimination Grants, and provide your name, address 
(including zip code) and telephone number (including area code). An 
application kit also will be available on the Internet at http://
www.hud.gov.
    For Further Information and Technical Assistance. Your local HUD 
Field Office staff can answer most of the questions you have regarding 
this program section of the SuperNOFA and your application kit. Please 
contact the Resident Initiatives Specialist or Drug Elimination Grants 
contact person in your local office.. If you have a general question 
that the Field staff are unable to answer, please call Carissa Janis, 
Housing Project Manager, Office of Portfolio Management, Department of 
Housing and Urban Development, 451 Seventh Street, SW, Room 6174, 
Washington, DC 20410; (202) 708-3944, extension 2484 (this number is 
not toll free). If you are hearing or speech impaired, you may access 
this number via TTY by calling the Federal Information Relay Service at 
1-800-877-8339.

II. Amount Allocated

    HUD is allocating grant funds under this Multifamily Drug 
Elimination Grant Program section of the SuperNOFA to the four Award 
Offices, in accordance with the following schedule:

------------------------------------------------------------------------
                  Award office covered                      Allocation
------------------------------------------------------------------------
Buffalo:                                                      $4,015,000
    Vermont, Massachusetts, Connecticut, Rhode Island,
     Maine, New Hampshire, New York, New Jersey,
     Pennsylvania, Delaware, Maryland, District of
     Columbia, West Virginia, Virginia..................
Knoxville:                                                     4,110,000
    Kentucky, Tennessee, North Carolina, South Carolina,
     Georgia, Alabama, Puerto Rico, Mississippi,
     Florida, Iowa, Kansas, Missouri, Nebraska..........
Minneapolis                                                    3,919,000
    Illinois, Minnesota, Indiana, Wisconsin, Michigan,
     Ohio...............................................
Little Rock                                                    4,206,000
    Arkansas, Louisiana, New Mexico, Oklahoma, Texas,
     Colorado, Montana, North Dakota, South Dakota,
     Utah, Wyoming, Arizona, California, Hawaii, Nevada,
     Alaska, Idaho, Oregon, Washington..................
------------------------------------------------------------------------

    The Award Offices will select applicants for award according to the 
process discussed in Section V of this program section of the 
SuperNOFA.

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    The Federally Assisted Low-Income Housing Drug Elimination Grant 
program is designed to assist property owners to reduce or eliminate 
drug-related criminal activity in and around their developments and to 
provide programs to prevent or eliminate drug use and abuse among their 
residents. While this program is centered in and around the premises of 
one or more HUD assisted multifamily housing sites, you are expected to 
work closely with other community social service and law enforcement 
organizations to achieve specific program objectives to reduce or 
eliminate drug-related criminal activity. The development of these 
strong working partnerships is an essential part of this program and is 
seen by the Department as necessary for long-term strategies to fight 
crime and drug abuse. Thus, while your activities are targeted in or 
around one or more developments, HUD expects you to link your 
activities with services available in your community. In particular, 
HUD is seeking plans that provide successful, proven, and cost-
effective deterrents to drug-related crime and drug abuse that are 
designed to address the realities of federally assisted low-income 
housing environments.
    Changes to This Year's Program. This year the Rating Factors, 
application selection process, and submission requirements have changed 
significantly from last year. In developing your application, please 
pay special attention to Sections V.(A), V.(B), and VI., below, of this 
program section of the SuperNOFA, which discuss these items in detail. 
This program section of the SuperNOFA also clarifies that Section 202 
developments with project-based Section 8 assistance are eligible to 
apply. A number of activities have been added to both the ``eligible'' 
and ``ineligible'' activities sections, so be sure to read these 
carefully.

[[Page 9782]]

(B) Eligible Applicants

    (1) To be eligible for funding, you must meet all of the applicable 
threshold requirements of Section II.(B) of the General Section of the 
SuperNOFA and must be owners of developments assisted under the 
following programs:
    (a) Sections 221(d)(3), 221(d)(4), or 236 of the National Housing 
Act;
    (b) Section 101 of the Housing and Urban Development Act of 1965; 
or
    (c) Project-based assistance under Section 8 of the United States 
Housing Act of 1937. This includes Section 202, Section 515, State 
Housing Finance Agency, and Moderate Rehabilitation developments.
    (2) If you are a management agent, you may prepare applications and 
sign application documents if you provide written authorization from 
the owner corporation as part of your application.
    (3) If your eligibility status changes during the course of the 
grant term, making you ineligible to receive a grant (e.g. due to 
prepayment of mortgage, sale of property, or opting out of a Section 8 
Housing Assistance Payment (HAP) contract), HUD has the right to 
terminate your grant.

(C) Eligible Activities

    Your proposed drug elimination program should foster 
interrelationships among the residents, the housing owner and 
management, the local law enforcement agencies, and other community 
groups affecting your development. Resident participation in the 
determination of programs and activities to be undertaken is critical 
to the success of all aspects of your program. In addition to working 
closely with the development's residents, your program must include 
working with community groups, the neighborhood law enforcement 
precinct, residents of adjacent developments, and the community as a 
whole to enhance and magnify the effect of your specific program 
activities. HUD seeks result-oriented programs that promote stability, 
positive and lasting changes in and around your development and the 
surrounding community, and which use proven cost-effective measures to 
reduce drug use or prevent criminal activity.
    With the very real need to protect occupants of HUD-assisted 
housing and the areas around the housing, the civil rights of all 
citizens must be protected. Your proposed strategies should be 
developed to ensure that crime-fighting and drug prevention activities 
are not undertaken in such a manner that civil rights or fair housing 
statutes are violated. You may not use race, color, sex, religion, 
national origin, disability, or familial status to profile persons as 
suspects or otherwise target them in conducting these activities. In 
addition, all segments of the population should be represented in 
developing and implementing your crime-fighting strategies.
    (1) Physical Improvements To Enhance Security. Physical 
improvements to enhance security are eligible activities under this 
program. All physical improvements must be accessible to persons with 
disabilities and must meet the accessibility requirements of 24 CFR 
part 8, Nondiscrimination Based on Handicap in Federally Assisted 
Programs and Activities of the Department of Housing and Urban 
Development.
    Your physical improvements may include systems to limit building 
access to development residents; installation of barriers, lighting 
systems, fences, bolts, locks; landscaping or reconfiguration of common 
areas to discourage drug-related crime; or other physical improvements 
that enhance security and discourage drug-related activities. 
Rehabilitation of existing space for use by drug-related intervention 
and prevention programs is an eligible activity.
    (2) The provision of training, communications equipment, and other 
related equipment for use by voluntary tenant patrols acting in 
cooperation with local law enforcement officials is an eligible 
activity.
    (3) Programs to Reduce the Use of Drugs. Programs to reduce the use 
of drugs in and around your development, including drug-abuse 
prevention, intervention, referral, and treatment are eligible for 
funding. Where appropriate, you must establish a confidentiality policy 
regarding medical and disability-related information. Funding is 
permitted for reasonable, necessary, and justified leasing of vehicles 
for resident youth and adult education and training activities directly 
related to ``programs to reduce the use of drugs'' under this section.
    (a) Drug Prevention. Your drug prevention activities should provide 
a comprehensive drug prevention approach that will address the 
individual resident and his or her relationship to family, peers, and 
the community. Prevention activities should identify and change the 
conditions in federally assisted low-income housing that lead to drug-
related problems and lower the risk of drug usage. Many components of a 
comprehensive approach, such as refusal and restraint skills training 
or drug-related family counseling, may already be available in your 
community. Your plan should include bringing program components already 
available in the community onto the premises. Proposed activities may 
include the following:
    (i) Drug Education Opportunities for Residents. Activities should 
provide both young people and adults with the working knowledge and 
skills needed to avoid the potential and immediate dangers of illegal 
drugs. You may contract (in accordance with 24 CFR Part 85.36) with 
drug education professionals to provide training or workshops. 
Contracted drug education services must reflect or be tied to your 
program plan.
    (ii) Family and Other Support Services. Prevention programs should 
be designed to help foster successful family relationships that may 
inhibit or reduce drug use. Examples of services include parenting 
skills workshops, short-term family counseling, child care, or family 
educational, cultural, or educational programs. You may provide these 
programs directly or refer residents to such services already available 
in your community.
    (iii) Youth Services. If you propose drug prevention services in 
your plan and your development has a substantial number of young 
residents, HUD strongly encourages you to include youth in your 
prevention programs. Your proposed prevention activities for youth must 
involve the active participation of youth in planning programs and 
service delivery. Such youth-oriented drug prevention programs may 
include youth leadership skills training; events incorporating 
dissemination of drug education information; and sports, recreational, 
cultural, and general education activities.
    (iv) Economic/Educational Opportunities. Eligible economic or 
educational programs should have the objectives of assisting residents 
in improving their educational status, vocational and job readiness 
skills, and opportunities for obtaining employment. The ultimate goal 
of services should be to assist residents in obtaining suitable 
lifelong employment and self-sufficiency to deter drug use, abuse, and 
related crime.
    (b) Intervention. The aim of intervention is to provide residents 
with substance abuse/dependency remission services to assist them in 
modifying their behavior; obtaining early treatment and structured 
aftercare; and maintaining remission. Your program should also be 
designed to prevent drug problems from continuing once detected. If you 
propose any

[[Page 9783]]

intervention program that seeks to accomplish the above objectives, you 
must describe how you expect the activities to assist residents in 
reducing or ceasing their use of illicit drugs and involvement in drug-
related crime.
    (c) Drug Treatment. If your program provides treatment services, 
they must be targeted to the development and its residents. Your 
program should be conducted in or around the premises of the 
development, or residents must be referred to receive treatment from 
other available sources within the community. You may include 
implementing new drug referral treatment or aftercare services, or 
improve or expand currently available services. Your proposed drug 
treatment program should aim to reduce illicit drug use among residents 
by increasing resident accessibility to, and effective participation 
in, drug treatment activities, and decreasing criminal activity in and 
around your development. Your proposed plan must demonstrate a working 
partnership with your Single State Agency (or State license provider or 
authority with drug program coordination responsibilities in your 
State) to coordinate, develop, and implement your drug treatment 
program. In particular, you and the appropriate agency must confirm 
that your proposed drug treatment provider(s) has provided these 
services to similar populations for two prior years and your drug 
treatment program is consistent with the State treatment plan, meeting 
all State licensing requirements. Services eligible for funding may 
include:
    (i) Drug treatment supportive services designed for youth and/or 
maternal drug abusers. Examples of services are: prenatal/postpartum 
care; specialized counseling for women; or, parenting classes. You are 
encouraged to draw upon approaches that have proven effective with 
similar populations.
    (ii) Formal referral arrangements to treatment programs not in or 
around the development when treatment costs from sources other than 
this program are available.
    (iii) Transportation for residents to out-patient treatment and/or 
support programs.
    (iv) Family/collateral counseling.
    (v) Linking programs with educational/vocational counseling.
    (vi) Coordinating services with appropriate local drug agencies, 
HIV-related service agencies, and mental health and public health 
programs.

(D) Ineligible Activities

    The following activities are not eligible for funding:
    (1) Hiring of, or contracting for, employment of security guards to 
provide security services in and around the development.
    (2) Any activity or improvement that is normally funded from 
project operating revenues for routine maintenance or repairs, or those 
activities or improvements that may be funded through reasonable and 
affordable rent increases;
    (3) The acquisition of real property or those physical improvements 
that involve the demolition of any units in your development or 
displacement of tenants;
    (4) Costs incurred prior to the effective date of your grant 
agreement, including consultant fees for surveys related to your 
application or its preparation;
    (5) Reimbursement of local law enforcement agencies for additional 
security and protective services;
    (6) Employment of one or more individuals to investigate drug-
related crime in or around federally-assisted low-income developments 
and/or to provide evidence relating to such crime in any administrative 
or judicial proceeding;
    (7) Treatment of residents at any in-patient medical treatment 
programs or facilities;
    (8) Detoxification procedures designed to reduce or eliminate the 
presence of toxic substances in body tissues of a patient;
    (9) Maintenance drug programs; [Maintenance drugs are medications 
that are prescribed regularly for a long period of supportive therapy 
(e.g., methadone maintenance), rather than for immediate control of a 
disorder.]
    (10) Programs to treat alcoholism; and
    (11) Funding of police informants who provide information about 
drug-related activity.

IV. Program Requirements

    In addition to the requirements listed in Section II of the General 
Section of this SuperNOFA, you must also meet the additional 
requirements in this Section IV. These requirements apply to all 
activities, programs, and functions used to plan, budget, and evaluate 
the work funded under your program.

(A) Administrative Costs

    Administrative costs cannot exceed 10% of your proposed program's 
total cost.

(B) Term of Funded Activities

    Your grant term cannot exceed twelve months.

(C) Multiple Developments

    There is no limit to the number of developments that can be 
included in your application. However, if you include more than one 
development in your application, all developments must be eligible and 
located in the same Field Office jurisdiction. In addition, you must 
demonstrate in your response to Rating Factor 3 ``Soundness of 
Approach--(Quality of the Plan)'' that your program will be feasible to 
implement among all proposed developments.

(D) Subgrants and Subcontracting

    You may directly undertake or subcontract for any of the eligible 
activities under this Multifamily Drug Elimination Program section of 
the SuperNOFA. Resident groups that are not incorporated may work with 
you in the implementation of your program, but may not receive funds as 
subgrantees.

(E) Collection of Crime Data

    If you receive a grant, you will be required to collect and report 
on Parts I and II crime data. Parts I and II crime data are defined by 
the Uniform Crime Reporting (UCR) System (see Rating Factor 2, 
paragraph (1)(d)).

V. Application Selection Process

(A) Rating and Ranking

    All applications will be evaluated competitively and ranked against 
applications in the same Field Office.
    The maximum number of points for this program is 102. This includes 
two Empowerment Zone/Enterprise Community (EZ/EC) bonus points, as 
described in the General Section of the SuperNOFA. For bonus points 
related to activities located in Empowerment Zones or Enterprise 
Communities, the applicant must demonstrate that there is a connection 
between such EZ or EC and tenant, local government, and local community 
support and participation in the design and implementation of the 
proposed activities to be funded under this program.

(B) Distribution of Funds

    Each Award Office may recommend a total number of awards up to the 
amount allocated for the area covered by the Award Office. Award 
Offices will receive the scores from each HUD Field Office which has 
received, rated, and ranked its applications.
    The Award Offices will conduct the selection process as follows: 
The Award Office will first select the highest ranked application in 
each Field Office for funding. After this ``round,'' the Award Office 
will select the second highest

[[Page 9784]]

ranked application in each Field Office for funding (the second round). 
The Award Office will continue this process with the third, fourth, and 
so on, highest ranked applications in each Field Office until the last 
complete round is selected for funding. If available funds exist to 
fund some but not all eligible applications in the next round, the 
Award Office will make awards to those remaining applications in rank 
order regardless of Field Office and will fully fund as many as 
possible with remaining funds. Any funds still remaining after the 
Award Office distribution by rank will be forwarded to Headquarters, 
which shall make awards to fully fund as many remaining applications as 
possible by national rank order. All applications must receive a score 
equal to or greater than the minimum score of 70 without bonus points 
to be considered for funding.
    The selection process is designed to achieve both geographic 
diversity and a more equitable distribution of grant awards throughout 
the country. Every HUD Field Office will receive several grant awards, 
as long as the scores of their applications meet or exceed the minimum 
score. It also means that your one application submitted to a Field 
Office will primarily compete for funding with other applications 
submitted to that same Field Office.

(C) Procedure to resolve tied scores. 

    If two or more applications have the same score and there are 
insufficient funds to fund all of them, the application with the 
highest score for the Soundness of Approach rating factor shall be 
selected for funding. If a tie still remains, the application with the 
highest score for the Capacity of the Applicant and Relevant 
Organizational Experience rating factor shall be selected. Further tied 
applications will be selected by their scores in the Need/Extent of 
Problem, Leveraging Resources, and Comprehensiveness and Coordination 
rating factors, in that order. If the applications received the same 
score for each of the five factors, the Award office or Headquarters 
will break the remaining tie by selecting the application that requests 
less funding.

(D) Factors for Award Used to Evaluate and Rate Applications.

    The five factors in this section total 100 points. An application 
must receive a score of at least 70 points to be eligible for funding 
under this competition. Each application submitted will be evaluated 
using the following selection criteria set forth below.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points)
    This factor addresses the extent to which you have organizational 
resources necessary to successfully implement the proposed activities 
in a timely manner. In rating this factor, HUD will consider the extent 
to which you demonstrate the capabilities described below.
    (1) (20 points) The knowledge and experience of your staff and 
administrative capacity to manage grants, including administrative 
support functions, procurement, lines of authority, and fiscal 
management capacity. Your narrative must include a discussion of 
financial capacity, staff resources, and prior experience that will 
enable you to effectively administer a grant and meet reporting 
requirements. This narrative must not exceed five pages.
    (2) HUD's evaluation approach. (a) For Public Housing Authorities 
(PHAs) and tribally designated housing entities (TDHEs) that had 
previously applied as IHAs, HUD will also consider such measurements as 
the uniform crime index, physical inspections, agency monitoring of 
records, Line of Credit Control System (LOCCS) Reports, audit and such 
other relevant information available to HUD on the capacity of the 
owner or manager to administer the grant.
    (b) For owners of federally-assisted low income housing, HUD will 
also consider the most recent Management Review (including Rural 
Housing Management Review), HUD's Uniform Physical Conditions Standards 
review, State Agency review, physical inspection, and other relevant 
information available to HUD on the capacity of the owner and manager 
to undertake the grant.
    (3) (Deduct up to 5 points for prior poor performance) Your 
performance in administering Drug Elimination funding in the previous 5 
years.
    You must identify your participation in HUD grant programs within 
the preceding five years and discuss the degree of your success in 
implementing and managing these grant programs. Your discussion should 
describe program implementation, timely drawdown of funds, timely 
submission of required reports with satisfactory outcomes related to 
the plan and timetable, audit compliance, whether there are any 
unresolved findings from prior HUD reports (e.g., performance or 
finance) reviews of audits undertaken by HUD, the Office of Inspector 
General, the General Accounting Office or independent public 
accountants).
    For PHAs, your past experience will be evaluated in terms of your 
ability to attain demonstrated measurable progress in tracking drug 
related crime, enforcement of screening and lease procedures in 
implementation of the ``One Strike and You're Out Initiative'' (as 
applicable), the extent to which you have formed a collaboration with 
Tribal, State and local law enforcement agencies and courts to gain 
access to criminal conviction records of potential tenants to determine 
their suitability for residence in public housing. Such data will be 
measured and evaluated based on your Public Housing Management 
Assessment Program (PHMAP) score (24 CFR part 901).
Rating Factor 2: Need/Extent of the Problem (25 Points)
    This factor addresses the extent to which there is a need for 
funding your proposed program activities to address a documented 
problem in the target area (i.e., the degree of the severity of the 
drug-related crime problem in the development proposed for funding). In 
responding to this factor, HUD will evaluate your application based on 
the extent to which a critical level of need for the proposed 
activities is explained and you provide a justification for the urgency 
of meeting the need in your development and the area around your 
development. Your application must include a description of the extent 
and nature of drug-related crime ``in or around'' the housing units or 
development you propose for funding.
    You will receive up to 25 points for this factor if your statistics 
and explanation of need establish critical crime problems and an 
urgency to address these problems in and around your development. To 
receive the maximum number of points, you must provide statistics for 
both the premises of your development and the smallest geographic area 
surrounding your development for which objective statistics are 
available in your community, town, or city. If you use statistics from 
institutions (e.g. hospitals or schools), the institutions must 
directly serve the residents of the targeted development. If the 
statistics you provide do not indicate a critical need, urgency to meet 
this need, or you do not provide statistics that document the need 
within your development or the area around your development, you will 
not receive the maximum number of points. If you do not submit the 
letter or documentation for the ``non-objective'' data, indicated in 
paragraph

[[Page 9785]]

2(a), below, you will also receive fewer points.
    The statistics and information you provide must include the 
following:
    (1) ``Objective Crime Data'' relevant to the target area. Such data 
should consist of verifiable records and not anecdotal reports. Where 
appropriate, the statistics should be reported both in real numbers and 
as an annual percentage of the residents in each development (e.g., 20 
arrests in a one-year period for distribution of heroin in a 
development with 100 residents reflects a 20% occurrence rate). Such 
data may include:
    (a) Police records or other verifiable information from records on 
the types or sources of drug related crime in the targeted development 
and surrounding area;
    (b) The number of lease terminations or evictions for drug-related 
crime at the targeted development; and
    (c) The number of emergency room admissions for drug use or that 
result from drug-related crime. Such information may be obtained from 
police Departments and/or fire departments, emergency medical service 
agencies and hospitals. The number of police calls for service from 
your development that include resident initiated calls, officer-
initiated calls, domestic violence calls, drug distribution complaints, 
found drug paraphernalia, gang activity, graffiti that reflects drugs 
or gang-related activity, vandalism, drug arrests, and abandoned 
vehicles.
    (d) To the extend possible, you should obtain statistics on Part I 
and Part II crimes, as defined by the Uniform Crime Reporting (UCR) 
System. Part 1 crimes include: criminal homicide, forcible rape, 
robbery, aggravated assault two (including domestic violence through 
use of a weapon or by means likely to produce death or great bodily 
harm), burglary-breaking or entering, larceny-theft (except motor 
vehicle theft), motor vehicle theft, and arson. Part II crimes include: 
assaults, forgery and counterfeiting, fraud, embezzlement, vandalism, 
weapons (carrying or possessing), prostitution and commercialized vice, 
sex offenses (except forcible rape, prostitution, and commercialized 
vice), drug abuse violations, gambling, offenses against the family and 
children, driving under the influence, violation of liquor laws, 
drunkenness, disorderly conduct, vagrancy, all other offenses related 
to curfew and loitering laws and runaways.
    For PHAs, such data should include housing authority police records 
on the types and sources of drug related crime ``in or around'' 
developments as reflected in crime statistics or other supporting data 
from Federal, State, Tribal, or local law enforcement agencies.
    (2) Other Crime Data. If you are unable to attain objective crime 
statistics as mentioned above, you may submit other supporting, 
verifiable data on the extent of drug-related crime in the target area. 
If you submit other relevant information in place of objective data, 
you must provide the following to receive the maximum number of points:
    (a) A letter or supporting documentation from your local law 
enforcement agency or another relevant neighborhood organization 
explaining why the objective data mentioned above is not available, and
    (b) A narrative explanation of the reasons why objective data could 
not be obtained, what efforts were made to obtain it, and what efforts 
will be made (if possible) during the grant period to begin obtaining 
the data. Such data may include the following:
    (i) Surveys of residents and staff in the targeted development 
surveyed on drug-related crime or on-site reviews to determine drug/
crime activity; and government or scholarly studies or other research 
in the past year that analyze drug-related crime activity in your 
targeted development.
    (ii) Vandalism cost at your targeted development, to include 
elevator vandalism (where appropriate) and other vandalism attributable 
to drug-related crime.
    (iii) Information from schools, health service providers, residents 
and Federal, State, local, and Tribal officials, and the verifiable 
opinions and observations of individuals having direct knowledge of 
drug-related crime, and the nature and frequency of these problems in 
your development proposed for assistance. (These individuals may 
include Federal, State, Tribal, and local government law enforcement 
officials, resident or community leaders, school officials, community 
medical officials, substance abuse, treatment (dependency/remission) or 
counseling professionals, or other social service providers.)
    (iv) The school dropout rate and level of absenteeism for youth 
that you can relate to drug-related crime.
    (v) To the extent that the community's Consolidated Plan identifies 
the level of the drug abuse and related crime problems in and around 
your targeted development, and the urgency in meeting the need, 
references to these documents should be included in your response. You 
will receive more points if you use these documents to identify need.
Rating Factor 3: Soundness of Approach--(Quality of the Plan) (35 
Points)
    This factor addresses the quality and effectiveness of your 
proposed work plan. In rating this factor, HUD will consider the impact 
of your proposed activities and the tangible benefits that can be 
attained by the community and by the target population. Your 
application must include a detailed narrative describing each proposed 
activity for crime reduction and elimination efforts for each 
development proposed for assistance, the amount and extent of resources 
committed to each activity or service proposed, and process used to 
collect, maintain, analyze and report Part I and II crimes as defined 
by the Uniform Crime Reporting (UCR System, as well as police workload 
data.
    In evaluating this factor, HUD will consider the following:
    (1) (14 points) Your plan's approach to address the drug-related 
crime problem and associated problems in the development proposed for 
funding, the resources allocated, and the extent to which your proposed 
activities are targeted to residents, provide for linkages with 
existing community resources, and are likely to have long term impacts 
on reducing drug use and drug-related crime in and around your targeted 
development. Also, you must include the rational for the proposed 
activities and methods to be used in developing your program and 
approach to reducing drug-related crime and drug abuse. If you propose 
drug prevention or intervention activities, these services must 
constitute a continuing and comprehensive approach to deter drug use or 
abuse among your residents and their neighbors. Your proposal must 
demonstrate how your activities work together with other on-going 
activities in the community and how these activities rely upon each 
other to form a holistic plan. Your plan must include the following 
items. If these are not included, you will receive fewer points under 
this subfactor:
    (a) An explanation of how any proposed physical improvements will 
be accessible to persons with disabilities and a statement that they 
will meet the accessibility requirements of 24 CFR part 8, 
Nondiscrimination Based on Handicap in Federally Assisted Programs and 
Activities of the Department of Housing and Urban Development;
    (b) A discussion of how any drug education services that you 
propose to

[[Page 9786]]

undertake directly or through a subcontract will reflect the objectives 
of your program plan;
    (c) A specific explanation of how you plan to incorporate the 
active participation of youth in planning prevention programs and 
services targeted to their needs; and
    (d) If you propose drug treatment activities, you must provide a 
letter from your Single State Agency (or State license provider or 
authority with drug program coordination responsibilities in your 
State) that states that your program is effectively coordinating, 
developing, and implementing drug treatment programs in partnership 
with that entity.
    (2) (10 points) The anticipated effectiveness of the plan and 
proposed activities in reducing or eliminating drug-related crime 
problems immediately and over an extended period. This should include 
the following:
    (a) A description of established performance goals for the results 
to be achieved during the period of your grant. The goals must be 
objective, quantifiable, and measurable, and they must be outcome or 
result-oriented. Outcomes include accomplishments, results, impact and 
the ultimate effects of the program on the drug or crime problem in the 
target/development area.
    (b) An explanation of how your proposed activities enhance and are 
coordinated with on going or proposed programs sponsored by HUD, such 
as Neighborhood Networks, Campus of Learners, Operation Safe Home, 
``One Strike and You're Out'', Department of Justice Weed and Seed 
Efforts, or any other prevention/intervention/treatment activities in 
your community. Explain the specific steps you will take to share and 
coordinate information on solutions and outcomes with other law-
enforcement and governmental agencies, and a description of any written 
agreements in place or that will be put in place by you with these 
entities.
    (3) (3 points) Evidence and explanation of how proposed activities 
have been effective in similar circumstances in controlling drug-
related crime. If you are proposing new methods for which there is 
limited knowledge of effectiveness, you should provide the basis for 
modifying past practices and rationale for why you believe the 
modification will yield more effective results. HUD will look more 
favorably upon proposals that target grant funds to hard program costs 
and propose minimal, if any, administrative expenses.
    (4) (3 points) The process you will use to maintain, analyze, and 
report Part I and II crimes, as well as police workload data. Police 
workload data may include, but are not limited to: all calls for 
service by residents of your development, crime pattern over a period 
of time by type of crime, and plans to improve data collection and 
reporting. Your proposed analysis of the data collected must include a 
method for assessing the impact of activities on the collected crime 
statistics throughout your award period. The results of your activities 
and the effect on statistics is of much greater importance than the 
method you will use to collect such data, so you should pay attention 
to the benchmarks you establish for measuring and evaluating your 
performance, particularly measuring changes in crime rates by Part I 
and Part II crime data.
    (5) (1 point deducted if not addressed) The extent to which the 
applicant's elimination of crime in a development or neighborhood will 
expand fair housing choice and will affirmatively further fair housing. 
Provide a brief statement outlining the benchmarks you will use to 
measure your success in affirmatively furthering fair housing through 
this program. This may include such items as lower vacancy and turnover 
rates and increased new applications for housing in your development 
and in other rental properties in your neighborhood, new businesses and 
other community development initiatives in your area, or increased 
rates of homeownership in your community. If such a statement is not 
provided, you will not receive this point.
    (6) (5 points) Resident Support. The extent to which you have 
sought the support of residents in planning and implementing the 
proposed activities.
    (a) You must provide evidence that you actively sought comments, 
suggestions, and support from residents for your proposed plan. State 
the steps you took to obtain this information and support.
    (b) Describe and provide written documentation of these comments, 
suggestions, and support. HUD needs clear evidence that the residents 
agree with, support, and will work with your proposed program. If 
applicable, you must explain why you do not have written documentation 
of such support or did not receive any comments or suggestions.
    (c) Describe how residents will be involved in implementing your 
program. If involvement would be minimal or not appropriate, please 
state and explain why.
Rating Factor 4: Leveraging Community Resources (10 Points)
    To receive points under this rating factor, you must provide 
evidence of the level and type of participation and support by the 
local government or law enforcement agency for your proposed 
activities. This should include the level of assistance received from 
local government, community organizations, and/or law enforcement 
agencies. If a community organization is providing you with staff or 
supporting services, you must include a letter from each organization 
providing staff or support in order to receive maximum points. Each 
letter must specify what type of participation or contributions the 
organization will make to your program. Such letters must be from 
community or public agencies (or businesses) within your unit of 
general local government (i.e. county, town, city) or incorporated 
resident organizations. Letters stating general support or from people 
or organizations not in or around your development are not adequate and 
you should not include them in your application.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you coordinate your 
activities with other known organizations, participate or promote 
participation in your community's Consolidated Planning process, and 
are working towards addressing a need in a holistic and comprehensive 
manner through linkages with other activities in the community.
    In evaluating this factor, HUD will consider your prior efforts and 
future plans to coordinate with other local agencies and organizations 
as follows:
    (1) (3 points) Describe past efforts to coordinate your proposed 
activities with those of other groups or organizations prior to 
submission of your application in order to best complement, support, 
and coordinate all known activities. Explain what specific steps you 
will take to share information on solutions and outcomes with others. 
Please describe any written agreements or memoranda of understanding 
that are or will be in place after award.
    (2) (6 points) Explain what specific steps you have taken or will 
take to develop linkages or coordinate comprehensive solutions through 
meetings, information networks, planning processes, or other 
mechanisms. Explain your past efforts or planned efforts for 
involvement with such programs or other HUD-funded projects/activities 
outside the scope of

[[Page 9787]]

those covered by the Consolidated Plan; and/or other Federal, State, or 
locally funded activities, including those proposed or on-going in the 
community.
    (3) (1 point) Explain specific steps you have taken or will take to 
become active in your community's Consolidated Planning process 
(including the Analysis of Impediments to Fair Housing Choice) 
established to identify and address a need/problem that is related to 
the activities you propose.

VI. Application Submission Requirements

    (A) Number of Applications, Projects Per Application, and Maximum 
Application Amounts. If you are an owner of an eligible project listed 
in Section III.(B) of this program section of the SuperNOFA, you may 
only submit one application for one or more projects within a local HUD 
Field Office jurisdiction. The maximum amount of funds you may receive 
for an application with one development is $125,000 and the maximum for 
an application for two or more developments is $200,000.
    (B) If you are an owner of developments served by a number of HUD 
Field Offices, you may submit multiple applications, as long as you 
submit only one application per Field Office jurisdiction.
    (C) There is no limit to the number of developments per 
application. However, all developments in one application must be 
eligible and located in the same Field Office jurisdiction. You must 
demonstrate in Rating Factor 3 ``Soundness of Approach--(Quality of the 
Plan)'' that your program will be feasible to implement among all 
proposed developments. In addition, you must provide pertinent 
information for each Rating Factor for each proposed development.

VI. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VII. Environmental Requirements

    It is anticipated that activities under this program are 
categorically excluded under 24 CFR 50.19(b)(4), (b)(12), or (b)(13). 
If grant funds will be used to cover the cost of any non-exempt 
activities, HUD will perform an environmental review to the extent 
required by 24 CFR part 50, prior to grant award.

VIII. Authority

    This program is authorized under Chapter 2, subtitle C, title V of 
the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 et. seq.), as amended 
by section 581 of the National Affordable Housing Act of 1990 (Pub. L. 
102-550, approved October 28, 1992). The regulations for the program 
are found in 24 CFR part 761, Drug Elimination Programs.

BILLING CODE 4210-32-Y

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

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    [GRAPHIC] [TIFF OMITTED] TN26FE99.034
    

BILLING CODE 4210-32-C

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notice  

[[Page 9791]]



Funding Availability for the Economic Development Initiative (EDI)

Program Overview

    Purpose of the Program. EDI funds are used to enhance the security 
of the Section 108 guaranteed loan for the same project or to improve 
the viability of a project financed with a Section 108-guaranteed loan. 
An EDI grant is required to be used in conjunction with a new Section 
108 guaranteed loan commitment.
    Available Funds. Approximately $35 million is available for EDI 
grants under this SuperNOFA.
    Eligible Applicants. Any public entity eligible to apply for 
Section 108 loan guarantee assistance in accordance with 24 CFR 570.702 
may apply for EDI assistance under section 108 (q) and this SuperNOFA. 
(See Section III(B) below for additional information regarding eligible 
applicants.)
    Application Deadline. June 11, 1999.
    Match. None.

Additional Information:

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Submit your completed applications (one 
original and two copies) on or before 12:00 midnight, Eastern time, on 
June 11, 1999, to the addresses shown below.
    See the General Section of this SuperNOFA for specific procedures 
governing the form of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Address for Submitting Applications. To HUD Headquarters. Submit 
your completed application (an original and one copy) to: Processing 
and Control Unit, Room 7251, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW, Washington, DC 20410,
    Attention: EDI Grant, by mail or hand delivery.
    To the Appropriate CPD Field Office. At the same time you submit 
your application to HUD Headquarters, you must submit an additional 
copy of your application to the Community Planning and Development 
Division of the appropriate HUD Field Office for your jurisdiction.
    When submitting your application, please refer to EDI, and include 
your name, mailing address (including zip code) and telephone number 
(including area code).
    For Application Kits. For an application kit and any supplemental 
information, please call HUD's SuperNOFA Information line toll free at 
1-800-HUD-8929. When requesting the application kit, please refer to 
EDI. Please provide your name, address (including zip code), and 
telephone number (including area code). The application kit also will 
be available on the Internet through the HUD web site at http://
www.hud.gov. Persons with hearing or speech impairments may call the 
Center's TTY number at 1-800-HUD-2209 to obtain an application kit.
    For Further Information and Technical Assistance. Contact either 
Stan Gimont or Paul Webster, Financial Management Division, Office of 
Block Grant Assistance, Department of Housing and Urban Development, 
451 Seventh Street, SW, Room 7178, Washington, DC 20410; telephone 
(202) 708-1871 (this is not a toll-free number). Persons with speech or 
hearing impairments may access this number via TTY by calling the toll-
free Federal Information Relay Service at 1-800-877-8339.
    See the General Section of this SuperNOFA for guidance on technical 
assistance. With respect to the Section 108 Loan Guarantee program, 
which is not a competitive program and thus not subject to those 
provisions of the HUD Reform Act pertaining to competitions, HUD staff 
will be available to provide advice and assistance to develop Section 
108 loan applications.

II. Amount Allocated

    HUD has available a maximum of $35 million for the EDI program, as 
appropriated in Pub.L. 105-276 (the FY 1999 VA-HUD Appropriations Act). 
If any additional EDI grant monies for this SuperNOFA become available, 
HUD may either fund additional applicants in accordance with this 
SuperNOFA during Fiscal Year 1999 or may add any funds that became 
available to funds that are available for any future EDI competitions.
    As part of EDI, HUD is developing a program enhancement designed to 
reduce the risk that CDBG funds will have to be used to repay Section 
108 loans that finance economic development projects. This mechanism 
will allow public entities to pool economic development loans and 
related reserves. The diversification created by the pooling of loans 
and reserves will reduce the risk that a public entity will incur a 
catastrophic loss to its CDBG program if a business defaults on an 
economic development loan made with Section 108 funds. The CDBG Risk 
Reduction Pool will also assist public entities in satisfying the 
collateral requirements for Section 108 loans. The pool's reserves and 
incremental cash flows will provide an additional credit enhancement 
for the Section 108 loan and thereby satisfy Section 108 additional 
collateral requirements.
    HUD is developing this pooling mechanism in consultation with other 
Federal agencies and outside experts. HUD is considering a $10 to $20 
million demonstration in FY 1999 (only $10 million of this 
demonstration will be from FY 1999 funds). If the demonstration occurs, 
then $25 million will be available for the EDI competition announced in 
this SuperNOFA. In this event, HUD will publish a notice announcing the 
availability of the funds for the FY 1999 demonstration of this 
mechanism. Should there be no demonstration in FY 1999, then HUD 
reserves the right to utilize the $10 million in FY 1999 funds for the 
EDI competition announced in this SuperNOFA, making the total amount 
available $35 million.

III. Program Description; Eligible Applicants; Eligible Activities.

(A) Program Description.

    EDI is designed to enable local governments to enhance both the 
security of loans guaranteed through HUD's Economic Development Loan 
Fund (also known as the Section 108 loan guarantee program) and the 
feasibility of the economic development and revitalization projects 
that Section 108 guarantees finance. EDI accomplishes this by providing 
grants to local governments to be used in conjunction with Section 108 
loan guarantees.
    (1) Definitions. Terms used in this program section of this 
SuperNOFA have the meanings given in 24 CFR part 570 unless otherwise 
specified.
    Act means Title I, Housing and Community Development Act of 1974, 
as amended, (42 U.S.C. 5301-et seq.).
    CDBG funds means those funds collectively defined at 24 CFR 570.3, 
including grant funds received pursuant to section 108(q) of the Act 
and this program section of this SuperNOFA.
    Economic Development Initiative (EDI) means the provision of 
economic development grant assistance under section 108(q) of the Act, 
as authorized by Section 232 of the Multifamily Housing Property 
Disposition Reform Act of 1994 (Pub.L. 103-233, approved April 11, 
1994).

[[Page 9792]]

    Economic development project means an activity or activities 
(including mixed use projects with housing components) that are 
eligible under the Act and under 24 CFR 570.703, and that increase 
economic opportunity for persons of low- and moderate-income or that 
stimulate or retain businesses or jobs or that otherwise lead to 
economic revitalization.
    Empowerment Zone or Enterprise Community means an urban area so 
designated by the Secretary of HUD pursuant to 24 CFR part 597 or 598, 
or a rural area so designated by the Secretary of Agriculture pursuant 
to 7 CFR part 25, subpart B.
    Strategic Plan means a strategy developed and agreed to by the 
nominating local government(s) and State(s) and submitted in partial 
fulfillment of the application requirements for an Empowerment Zone or 
Enterprise Community designated pursuant to 24 CFR part 597 or 598.
    (2) Background. (a) HUD has multiple programs which are intended to 
stimulate and promote economic and community development. Primary among 
HUD's resources are the Community Development Block Grant (CDBG) 
program and the Section 108 loan guarantee program.
    (b) The CDBG program provides grant funds (approximately $4.232 
billion in FY 1999) by formula to local governments (either directly or 
through States) to carry out community and economic development 
activities. The Section 108 loan guarantee program provides local 
governments with a source of financing for economic development, 
housing rehabilitation and other eligible large scale physical 
development projects. HUD is authorized pursuant to Section 108 to 
guarantee notes issued by CDBG entitlement communities and non-
entitlement units of general local government eligible to receive funds 
under the State CDBG program. The Section 108 program is subject to the 
regulations of 24 CFR part 570 applicable to the CDBG program, with the 
exception of changes embodied in 24 CFR part 570, subpart M. EDI grants 
support Section 108 loan guarantees as generally described under the 
above section entitled ``Purpose of the Program.''
    (c) For FY 1999, the Section 108 program is authorized at $1.261 
billion in loan guarantee authority. The full faith and credit of the 
United States will be pledged to the payment of all guarantees made 
under Section 108. Under this program, communities (and States, if 
applicable) pledge their future years' CDBG allocations as security for 
loans guaranteed by HUD. The Section 108 program, however, does not 
require CDBG funds to be escrowed for loan repayment (unless such an 
arrangement is specifically negotiated as loan security and included in 
the applicable ``Contract for Loan Guarantee Assistance''). This means 
that a community can ordinarily continue to spend its existing 
allocation for other CDBG purposes, unless needed for loan repayment.
    (3) EDI Program. The EDI program was enacted in 1994 and is 
intended to complement and enhance the Section 108 Loan Guarantee 
program. A purpose of EDI grant funds is to further minimize the 
potential loss of future CDBG allocations:
    (a) By strengthening the economic feasibility of the projects 
financed with Section 108 funds (and thereby increasing the probability 
that the project will generate enough cash to repay the guaranteed 
loan);
    (b) By directly enhancing the security of the guaranteed loan; or
    (c) Through a combination of these or other risk mitigation 
techniques.
    (4) Purpose of EDI Funding. HUD intends the approximately $35 
million in EDI funds to stimulate economic development by local 
governments and private sector parties. HUD desires to see EDI and 
Section 108 funds used to finance projects and activities that will 
provide near-term results and demonstrable economic benefits, such as 
job creation and increases in the local tax base.
    (5) Additional Security for Section 108 Loan Guarantee. Public 
entities should be mindful of the need to provide additional security 
for the Section 108 loan guarantee pursuant to 24 CFR 570.705(b)(3). 
Although a public entity is required by the Act to pledge its current 
and future CDBG funds as security for the Section 108 loan guarantee, 
the public entity will usually be required to furnish additional 
collateral. In most cases, the additional collateral consists (in whole 
or in part) of the asset financed with the Section 108 loan funds 
(e.g., a loan made to a business as part of an economic development 
project). Applications proposing uses for EDI funding that enhance the 
viability of projects will help ensure that the project-based asset(s) 
will satisfy the additional collateral requirements.
    (6) Typical Project Structures. Provided that proposals are 
consistent with other CDBG requirements, including national objectives, 
HUD envisions that the following project structures could be typical:
    (a) Funding Reserves. The cash flow generated by an economic 
development project may be expected to be relatively ``thin'' in the 
early stages of the project, i.e. potentially insufficient cash flows 
to meet operating expenses and debt service obligations. The EDI grant 
can make it possible for reserves to be established in a way that 
enhances the economic feasibility of the project.
    (b) Over-Collateralizing the Section 108 Loan. (i) The use of EDI 
grant funds may be structured in appropriate cases so as to improve the 
likelihood that project-generated cash flow will be sufficient to cover 
debt service on the Section 108 loan and directly to enhance the 
guaranteed loan. One technique for accomplishing this approach is over-
collateralization of the Section 108 loan.
    (ii) An example is the creation of a loan pool funded with Section 
108 and EDI grant funds. The community would make loans to various 
businesses from the combined pool at an interest rate equal to or 
greater than the rate on the Section 108 loan. The total loan portfolio 
would be pledged to the repayment of the Section 108 loan.
    (c) Direct Enhancement of the Security of the Section 108 Loan. The 
EDI grant can be used to cover the cost of providing credit 
enhancements. An example of how the EDI grant can be used for this 
purpose is by using the grant funds to cover the cost of a standby 
letter of credit, issued in favor of HUD. This letter of credit will be 
available to fund amounts due on the Section 108 loan if other sources 
fail to materialize and thus will serve to protect the public entity's 
future CDBG funds.
    (d) Provision of Financing to For-Profit Businesses at a Below 
Market Interest Rate. (i) While the rates on loans guaranteed under 
Section 108 are only slightly above the rates on comparable U.S. 
Treasury obligations, they may nonetheless be higher than can be 
afforded by businesses in severely economically distressed 
neighborhoods. The EDI grant can be used to make Section 108 financing 
affordable.
    (ii) EDI grant funds could serve to ``buy down'' the interest rate 
up front, or make full or partial interest payments, allowing the 
businesses to be financially viable in the early start-up period not 
otherwise possible with Section 108 alone. This strategy would be 
particularly useful where a community was undertaking a large 
commercial/retail project in a distressed neighborhood to act as a 
catalyst for other development in the area.

[[Page 9793]]

    (e) Combination of Techniques. You could employ a combination of 
these or other techniques in order to implement a strategy that carries 
out an economic development project.

(B) Eligible Applicants.

    Any public entity eligible to apply for Section 108 loan guarantee 
assistance pursuant to 24 CFR 570.702 may apply for EDI grant 
assistance under Section 108(q). Eligible applicants are CDBG 
entitlement units of general local government and non-entitlement units 
of general local government eligible to receive loan guarantees under 
24 CFR part 570, subpart M. Urban Counties, as defined at 24 CFR 570.3 
and 570.307, are eligible applicants for EDI funds; units of general 
local government which participate in an Urban County program are not 
independently eligible applicants. For non-entitlement applicants other 
than those in the States of Hawaii and New York, non-entitlement 
applicants will be required to provide proof that the State will 
support the related Section 108 loan with a pledge of its CDBG funds 
pursuant to the requirements of 24 CFR 570.705(b)(2). Note that 
effective January 25, 1995, non-entitlement public entities in the 
states of New York and Hawaii were authorized to apply to HUD for 
Section 108 loans (see 59 FR 47510, December 27, 1994). Thus, non-
entitlement public entities in all 50 states and Puerto Rico are 
eligible to participate in the Section 108 and EDI programs.

(C) Eligible Activities and National Objectives.

    (1) EDI grant funds may be used for activities listed at 24 CFR 
570.703, provided such activities are carried out as part of an 
economic development project as described in Section III(A) of this EDI 
section of this SuperNOFA. If your application fails to meet the 
requirements for an EDI project as set forth in this SuperNOFA, HUD 
will not give it a rating.
    (2) Each activity assisted with Section 108 loan guarantee or EDI 
funds must meet a national objective of the CDBG program as described 
in 24 CFR 570.208. You must clearly identify in your narrative 
statement (as described in Section V.(B) below) the CDBG national 
objective your proposed project will achieve and provide the 
appropriate CDBG national objectives regulatory citation found at 24 
CFR 570.208. Also, you must address, when applicable, how your proposed 
activities will comply with the public benefit standards of the CDBG 
program as reflected in the regulation at 24 CFR 570.209 for the CDBG 
Entitlement program and 24 CFR 570.482 for the State CDBG program.
    (3) In the aggregate, your use of CDBG funds, including any Section 
108 loan guarantee proceeds and section 108(q) (EDI) funds provided 
pursuant to this program section of this SuperNOFA, must comply with 
the CDBG primary objectives requirement as described in section 101(c) 
of the Act and 24 CFR 570.200(c)(3), or 24 CFR 570.484 in the case of 
State grantees.

IV. Program Requirements

(A) CDBG Program Regulations

    In addition to 24 CFR 570.701 (Definitions), 570.702 (Eligible 
applicants), and 570.703 (Eligible activities), as explained elsewhere 
in this program section of the SuperNOFA, the CDBG regulatory 
requirements cited in 24 CFR 570.707, including subparts J (Grant 
Administration), K (Other Program Requirements), and O (Performance 
Reviews) govern the use of EDI funds, as applicable.

(B) Compliance with Applicable Laws

    An award of EDI funding does not in any way relieve you or third 
party users of EDI funds from compliance with all applicable Federal, 
State and local laws.

(C) Related Section 108 Loan Guarantee Application

    (1) Each EDI application must be accompanied by a request for new 
Section 108 loan guarantee assistance. Both the EDI and Section 108 
funds must be used in conjunction with the same economic development 
project. This request may take any of several forms as defined below.
    (a) A formal application for new Section 108 loan guarantee(s), 
including the documents listed at 24 CFR 570.704(b).
    (b) A brief description (not to exceed three pages) of a new 
Section 108 loan guarantee application(s). Such 108 application(s) will 
be submitted within 60 days, with HUD reserving the right to extend 
such period for good cause on a case-by-case basis, of a notice of EDI 
selection. EDI awards will be conditioned on approval of actual Section 
108 loan commitments. This Section 108 application description must be 
sufficient to support the basic eligibility of the proposed project or 
activities for Section 108 assistance. (See Section III(C) of this 
program section of this SuperNOFA.).
    (c) A copy of a pending, unapproved Section 108 loan guarantee 
application, and any proposed amendments to the Section 108 application 
which are related to the EDI application. The applicant's submission of 
such a EDI/Section 108 application shall be deemed by HUD to constitute 
a request to suspend separate processing of the Section 108 
application. The Section 108 application will not be approved until on 
or after the date of the related EDI award.
    (d) A request for a Section 108 loan guarantee amendment (analogous 
to Section IV(C)(1)(a) or (b) above) that proposes to increase the 
amount of a previously approved application. However, any amount of 
Section 108 loan guarantee authority approved before HUD's announcement 
of an EDI grant for the same project pursuant to this SuperNOFA is not 
eligible to be used in conjunction with a EDI grant under this 
SuperNOFA.
    (2) Further, a Section 108 loan guarantee amount that is required 
to be used in conjunction with a prior EDI or Brownfields Economic 
Development Initiative (BEDI) grant award, whether or not the Section 
108 loan guarantee has been approved as of the date of this SuperNOFA, 
is not eligible for an EDI award under this SuperNOFA. For example, if 
a public entity has a previously approved Section 108 loan guarantee 
commitment of $12 million, even if none of the funds have been 
utilized, or if the public entity had previously been awarded an EDI 
grant of $1 million and had certified that it will submit a Section 108 
loan application for $10 million in support of that EDI grant, the 
public entity's EDI application under this SuperNOFA must propose to 
increase the amount of its total Section 108 loan guarantee commitments 
beyond those amounts (the $12 million or $10 million in this example) 
to which it has previously agreed.

(D) Limitations on Use of EDI and Section 108 Funds

    Certain restrictions shall apply to the use of EDI and Section 108 
funds:
    (1) EDI grants must not be used as a resource to immediately repay 
the principal of a loan guaranteed under Section 108. Repayment of 
principal is only permissible with EDI grant funds as a matter of 
security if other sources projected for repayment of principal prove to 
be unavailable.
    (2) You should not use Section 108 funds to finance activities that 
also include financing generated through the issuance of federally tax 
exempt obligations. Pursuant to Office of Management and Budget (OMB) 
Circular A-129 (Policies for Federal Credit Programs and Non-Tax 
Receivables), Section 108 guaranteed loan funds may not directly or

[[Page 9794]]

indirectly support federally tax-exempt obligations.
    (3) HUD will not consider for funding any EDI proposal in which the 
related Section 108 loan guarantee would be used solely as security. 
EDI funds are to be used to support and enhance activities financed 
with Section 108 loan guarantee proceeds from HUD's interim lending or 
public offering mechanisms and thereby leverage greater use of the 
Section 108 program. Awarding EDI funds to a project which would use 
the Section 108 guarantee only as a security guarantee for other 
financing can be tantamount to making a simple grant to the project and 
thereby fails to fulfill the goals of the EDI program.

(E) Limitations on Grant Amounts

    (1) HUD expects to approve EDI grant amounts for approvable 
applications at a range of ratios of EDI grant funds awarded to new 
Section 108 loan guarantee commitments, but the minimum ratio will be 
$1 of Section 108 loan guarantee commitments for every $1 of EDI grant 
funds. However, if you propose a leverage ratio of 1:1, you will not 
receive any points under Rating Subfactor 4(1): ``Leverage of Section 
108 Funds.'' For example, an applicant requesting an EDI grant of $1 
million will be required to leverage a minimum of at least $1 million 
in new Section 108 loan guarantee commitments. This will be a special 
condition of the EDI grant award. Of course, even though there is a 
minimum ratio of 1:1, applications with higher ratios will receive more 
points under Rating Factor 4, ``Leveraging Resources/Financial Need'' 
and, all other things being equal, will be more competitive. You should 
propose projects with a greater leverage ratio of new Section 108 to 
EDI grant funds (assuming such projects are financially viable). For 
example, $1 million of EDI could leverage $12 million of new Section 
108 loan commitments. HUD intends that the EDI funds will be used for 
projects which leverage the greatest possible amount of Section 108 
loan guarantee commitments. Because a fundable application is 
competitive in part because of the applicant's proposed ratio of EDI 
funds to funds guaranteed by a Section 108 loan guarantee, HUD will 
condition a EDI grant award on the grantee's achievement of that 
specific ratio. Your failure to meet that condition by obtaining timely 
HUD approval of a commitment for, and issuance of, the required Section 
108 guaranteed obligations ratio may result in the cancellation and 
recapture of all or a proportionate share of the EDI grant award.
    (2) HUD will cap EDI awards at a maximum of $2 million. Any 
application in excess of $1 million may be reduced below the amount 
requested by the applicant if HUD determines that such a reduction is 
appropriate.
    (3) If additional EDI grant funds become available to HUD as the 
result of recaptures prior to the date of this SuperNOFA, HUD reserves 
the right to award grants under this SuperNOFA whose aggregate total 
may exceed the $35 million announced in this SuperNOFA, up to the 
maximum amount authorized by law.
    (4) In the event you are awarded an EDI grant that has been reduced 
below the original request (e.g. the application contained some 
activities that were ineligible or there were insufficient funds to 
fund the last competitive application at the full amount requested), 
you will be required to modify your project plans and application to 
conform to the terms of HUD's approval before HUD will execute a grant 
agreement. HUD also will proportionately reduce or deobligate the EDI 
award if you do not submit approvable Section 108 loan guarantee 
applications on a timely basis (including any extension authorized by 
HUD) in the amount required by the EDI/108 leveraging ratio which will 
be approved by HUD as a special condition of the EDI grant award (see 
Section IV(E)(1) above of this program section of the SuperNOFA). Any 
modifications or amendments to your application approved pursuant to 
this SuperNOFA, whether requested by you or by HUD, must be within the 
scope of the approved original EDI application in all respects material 
to rating the application, unless HUD determines that the revised 
application remains within the competitive range and is otherwise 
approvable under this SuperNOFA competition.
    (5) In the case of requested amendments to a previously approved 
Section 108 loan guarantee commitment (as further discussed in Section 
IV(C)(1)(d), above), the EDI assistance approved will be based on the 
increased amount of Section 108 loan guarantee assistance.
    (6) Pursuant to another portion of this SuperNOFA, HUD is 
simultaneously announcing the availability of $25 million of 
Brownfields Economic Development Initiative (BEDI) funds. While HUD 
will permit applicants to pursue BEDI and EDI funds for the same 
project, HUD requires that the BEDI and EDI applications (and their 
components) be independent of one another. Thus, each application 
should have an identifiable amount of Section 108 funding associated 
with its respective request for EDI and BEDI funds for purposes of 
determining the leverage of Section 108 funding to the corresponding 
amount of EDI or BEDI funds requested. Further, the proposed amount of 
Section 108 borrowing associated with the BEDI or EDI grant shall not 
be used to determine leverage of other financial resources under Rating 
Subfactor 4(3). Further, if you seek both BEDI and EDI funds for the 
same project, you must include in your response to Rating Factor 3 and 
the ``Financial feasibility'' portion of Rating Factor 4 a discussion 
of how the project can be financed and implemented if you fail to 
obtain either BEDI or EDI funds under this SuperNOFA.

(F) Timing of Grant Awards

    (1) To the extent you submit a full Section 108 application with 
your EDI grant application, HUD will evaluate the Section 108 
application concurrently with the request for EDI grant funds. Note 
that EDI grant assistance cannot be used to leverage a Section 108 loan 
guarantee approved prior to the date of HUD's announcement of an EDI 
grant pursuant to this SuperNOFA. However, the EDI grant may be awarded 
before HUD approval of the Section 108 commitment if HUD determines 
that such award will further the purposes of the Act.
    (2) HUD notice to you of the amount and conditions of EDI funds 
awarded, based upon review of the EDI application, constitutes an 
obligation of grant funds, subject to compliance with the conditions of 
award and execution of a grant agreement. EDI funds must not be 
disbursed to the public entity before the issuance of the related 
Section 108 guaranteed obligations.

(G) Economic Opportunities for Low and Very Low-Income Persons (Section 
3)

    Section 3 of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701u) is applicable to EDI grant recipients. Please see Section 
II(E) of the General Section of the SuperNOFA.

V. The Application Selection Process

(A) Rating and Ranking

    (1) Each rating factor and the maximum number of points is provided 
below. The maximum number of points to be awarded is 102. This includes 
two EZ/EC bonus points as described in the General Section of this 
SuperNOFA.
    (2) Once scores are assigned, all applications will be ranked in 
order of points assigned, with the applications receiving more points 
ranking above those receiving fewer points.

[[Page 9795]]

Applications will be funded in rank order.
    (3) Prior to award, if HUD determines that your application rated, 
ranked and fundable could be funded at a lesser EDI grant amount than 
requested consistent with feasibility of the funded project or 
activities and the purposes of the Act, HUD reserves the right to 
reduce the amount of the EDI award and/or increase the Section 108 loan 
guarantee commitment, if necessary, in accordance with such 
determination. An application in excess of $1 million may be reduced 
below the amount requested by the applicant if HUD determines that such 
a reduction is appropriate.
    (4) HUD may decide not to award the full amount of EDI grant funds 
available under this program section of this SuperNOFA and may make any 
remaining amounts available under a future SuperNOFA, or under a 
supplementary notice.
    (5) HUD desires to fund projects which will quickly produce 
demonstrable results. EDI grant awards will contain conditions 
requiring you to adhere to your stated timeframes for implementing your 
proposed projects and drawing Section 108 and EDI funds. If you fail to 
adhere to these schedules, HUD may recapture the EDI funds.

(B) Narrative Statement

    (1) Provide narrative statements describing the activities that you 
will carry out with the EDI grant funds. Your narrative statement must 
not exceed three (3) 8.5'' by 11'' pages.
    (2) Describe how your proposed uses of EDI funds will meet the 
national objectives under 24 CFR 570.208 for the CDBG program and 
qualify as eligible activities under 24 CFR 570.703. You must include 
citations to the specific regulatory subsections supporting eligibility 
and national objective. (See Section III(D) of this program section of 
this SuperNOFA).
    (3) Respond to the rating factors below. Each of the listed rating 
factors (or, where applicable, each subfactor) below also has a 
separate page limitation specified.
    (4) Print your narrative statement in 12 point type/font, and use 
sequentially numbered pages.

(C) Factors for Award Used to Evaluate and Rate Applications

    HUD will consider your application for selection based on the 
following factors that demonstrate the quality of your proposed project 
or activities, and your creativity, capacity and commitment to obtain 
maximum benefit from the EDI funds, in accordance with the purposes of 
the Act.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (15 Points)
    [Your response to this factor is limited to three (3) pages.]
    This factor addresses the extent to which you have the 
organizational resources necessary to successfully implement your 
proposed activities in a timely manner. The rating of the ``applicant'' 
or the ``applicant's organization and staff'' for technical merit or 
threshold compliance, unless otherwise specified, will include any 
subcontractors, consultants, subrecipients, and members of consortia 
that are firmly committed (i.e., has a written agreement or a signed 
letter of understanding with the applicant agreeing in principle to its 
participation and role in the project). In rating this factor, HUD will 
consider the following:
    (1) With regard to the EDI/Section 108 project you propose, you 
should demonstrate that you have the capacity to implement the specific 
steps required to successfully carry out your proposed EDI/Section 108 
project. This includes factors such as your:
    (a) Performance in the administration of your CDBG, HOME or other 
programs;
    (b) Previous experience, if any, in administering a Section 108 
loan guarantee;
    (c) Performance and capacity in carrying out economic development 
projects;
    (d) Ability to conduct prudent underwriting;
    (e) Capacity to manage and service loans made with the guaranteed 
loan funds or previous EDI or BEDI grant funds;
    (f) Capacity to carry out your projects and programs in a timely 
manner; and,
    (g) If applicable, your capacity to manage projects under this 
program section of this SuperNOFA along with any federal funds awarded 
as a result of a federal urban Empowerment Zone/Enterprise Community 
designation (including Enhanced Enterprise Community (EEC) 
designation).
    (2)(a) If you have previously received an EDI or BEDI grant 
award(s), you must describe the status of the implementation of those 
project(s) assisted with EDI or BEDI funds, any delays that have been 
encountered and the actions you are taking to overcome any such delays 
in order to carry out the project in a timely manner. For such 
previously funded EDI or BEDI grant projects, HUD will consider the 
extent to which you have used the awarded EDI or BEDI grant funds and 
the associated Section 108 guaranteed loan funds.
    (b) Further, if you have EDI or BEDI funds and related Section 108 
loan guarantee authority available as a result of earlier HUD awards 
and commitments for activities such as (but not limited to) economic 
development loan funds, community development banks, and community and 
individual investment corporations, you should use those existing 
financial resources before applying for additional EDI or BEDI funds 
and Section 108 commitments. If HUD determines that you could fund your 
project from such existing resources, HUD will reduce your score under 
this rating factor to 0.
    (3) The capacity of subrecipients, nonprofit organizations and 
other entities that have a role in implementing the proposed program 
will be included in this review. HUD also may rely on information from 
performance reports, financial status information, monitoring reports, 
audit reports and other information available to HUD in making its 
determination under this factor.
Rating Factor 2: Distress/Extent of the Problem (15 Points)
    [Your response to this factor is limited to three (3) pages.]
    This factor addresses the extent to which there is need for funding 
your proposed activities based on levels of distress, and an indication 
of the urgency of meeting the need/distress in your target area.
    (1) In applying this factor, HUD will consider current levels of 
distress in the immediate community to be served by your project and 
the jurisdiction applying for assistance. If you are able to indicate a 
level of distress in the immediate project area that is greater than 
the level of distress in your jurisdiction as a whole, HUD will give 
your application a higher score under this factor than other 
applications that do not. HUD requires you to use sound and reliable 
data that is verifiable to support the level of distress you claim in 
your application. You must provide a source for all information you 
cite and indicate the publication date or origination date of the data.
    (2) In previous EDI competitions, the poverty rate was often 
considered the best indicator of distress. You must provide the poverty 
rate for your jurisdiction as a whole and for the areas to be served 
and/or where the EDI/Section 108 funded project is located; however, in 
addition, you may demonstrate the level of distress with other factors 
such as income levels and unemployment rates.

[[Page 9796]]

    (3) To the extent that your Consolidated Plan and your Analysis of 
Impediments to Fair Housing choice (AI) identifies the level of 
distress in the community and the neighborhood in which your project is 
being carried out, you should include references to such documents in 
preparing your response to this factor. Also, you should discuss the 
extent to which the analysis of impediments identifies unhealthy 
environmental conditions in your project area, and how such conditions 
negatively impact your target neighborhood.
Rating Factor 3: Soundness of Approach (25 Points)
    [Your response to this factor is limited to three (3) pages.]
    This factor addresses the quality and cost-effectiveness of your 
proposed plan. There must be a clear relationship between the proposed 
activities, community needs and purposes of the program funding for you 
to receive points for this factor. In rating this factor, HUD will 
consider the following:
    (1) The quality of your plan/proposal for the use of EDI funds and 
Section 108 loan funds, including the extent to which your proposed 
plan for effective use of EDI grant/Section 108-guaranteed loan funds 
will address the needs you described in Rating Factor 2 above regarding 
the distress and extent of the problem in your immediate community and/
or jurisdiction. As part of the response to this factor, you should 
identify the eligible activities you will carry out and fully describe 
how your project will achieve a national objective. You should make 
substantial efforts to demonstrate how your proposed project would 
mitigate or otherwise address the distress identified in Rating Factor 
2 above.
    (2) The extent to which the plan is logically, feasibly, and 
substantially likely to achieve its stated purpose. HUD's desire is to 
fund projects and activities which will quickly produce demonstrable 
results and advance the purposes of the EDI program, including the 
number of jobs to be created by the project and the impact of the 
project on job creation that will benefit individuals on or previously 
on welfare. You should demonstrate that you have a clear understanding 
of the steps required to implement your project, the actions that you 
and others responsible for implementing your project must complete. You 
must include a reasonable time schedule for carrying out your project. 
The application kit contains a timeline form that you must use to 
indicate your project timing.
    (3) The extent to which your proposed project addresses your 
Analysis of Impediments and the needs identified in Rating Factor 2; 
the extent to which such project activities will result in the physical 
and economic improvement for the residents in the neighborhood in which 
your project will be carried out; the extent to which you will offer 
residents an opportunity to relocate to environmentally healthy housing 
or neighborhoods; or the extent to which residents will benefit from 
the funded project to enable them to continue to live in a redeveloped 
or revitalized neighborhood and thus share in the anticipated economic 
benefits your project is expected to generate.
    (4) The extent to which your project incorporates one or more 
elements that facilitate a successful transition of welfare recipients 
from welfare to work. Such an element could include, for example, 
linking your proposed project or loan fund to social and/or other 
services needed to enable welfare recipients to successfully secure and 
carry out full-time jobs in the private sector; provision of job 
training to welfare recipients who might be hired by businesses 
financed through the proposal; and/or incentives for businesses 
financed with EDI/section 108 funds to hire and train welfare 
recipients.
    (5) Due to an order of the U.S. District Court for the Northern 
District of Texas, Dallas Division, with respect to any application 
submitted by the City of Dallas, Texas, HUD's consideration of the 
response to this factor, ``Soundness of Approach,'' will include the 
extent to which Dallas' plan for the use of EDI funds and Section 108 
loans will be used to eradicate the vestiges of racial segregation in 
the Dallas Housing Authority's programs consistent with the Court's 
order. Up to two (2) additional points will be awarded to any 
application submitted by the City of Dallas, Texas, to the extent this 
subfactor is addressed.
Rating Factor 4: Leveraging Resources/Financial Need (35 Points)
    [Page limits for the response to this factor are listed separately 
for each subfactor under this factor.]
    In evaluating this factor, HUD will consider the extent to which 
your response demonstrates the financial need and feasibility of your 
project and the leverage ratio of Section 108 loan proceeds to EDI 
grant funds. This factor has three subfactors, each with its own 
maximum point total:
    (1) Leverage of Section 108 funds (20 points). Your response to 
this subfactor is limited to one (1) page. The minimum ratio of Section 
108 funds to EDI funds in any project may not be less than 1:1. The 
extent to which your proposed project leverages an amount of Section 
108 funds beyond the 1:1 ratio will be considered a positive factor. If 
you have a ratio of 1:1, your application will not receive any points 
under this subfactor. If you use your EDI grant to leverage more new 
Section 108 commitments, your application will receive more points 
under this subfactor.
    (2) Financial feasibility (10 points). [Your response to this 
subfactor is limited to three (3) pages.] HUD will consider the extent 
to which you demonstrate that your project is financially feasible. In 
responding to this subfactor, you must clearly address the question of 
why the EDI funds are critical to the success of this project. This may 
include factors such as:
    (a) Project costs and financial requirements. You should provide a 
funding sources and uses statement (not included in the 3 page 
narrative limit), as well as justifications for project costs.
    (b) The amount of any debt service or operating reserve accounts 
you will establish in connection with the economic development project.
    (c) The reasonableness of the costs of any credit enhancement paid 
with EDI grant funds.
    (d) The amount of program income (if any) you will receive each 
year during the repayment period for the guaranteed loan.
    (e) Interest rates on those loans to third parties (other than 
subrecipients) (either as an absolute rate or as a plus/minus spread to 
the Section 108 rate).
    (f) Underwriting criteria that you will use in determining project 
feasibility.
    (3) Leverage of other financial resources (5 points). [Your 
response to this subfactor is limited to one (1) page plus supporting 
documentation evidencing third party commitment (written and signed) of 
funds.] HUD will evaluate the extent to which you leverage other funds 
(public or private) with EDI grant funds and Section 108 guaranteed 
loan funds and the extent to which such other funds are firmly pledged 
to the project. This could include the use of CDBG funds, other Federal 
or state grants or loans, your general funds, project equity or 
commercial financing provided by private sources or funds from non-
profits or other sources. Funds will be considered pledged to the 
project if there is evidence of the third party's written commitment to 
make the funds available for the EDI/108 project, subject to approval 
of the EDI and Section 108 assistance and completion of any 
environmental review required under 24

[[Page 9797]]

CFR part 50 for the project. Note, that with respect to CDBG funds, 
your pledge of its CDBG funds will be considered sufficient commitment.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    [Your response to this factor is limited to two (2) pages.]
    This factor addresses the extent to which you have coordinated your 
activities with other known organizations; you participate or promote 
participation in your or a State's Consolidated Planning process; and 
you are working towards addressing a need in a comprehensive manner 
through linkages with other activities in the community.
    In evaluating this factor, HUD will consider the extent to which 
you demonstrate you have:
    (1) Coordinated your proposed activities with those of other groups 
or organizations before submission, in order to best complement, 
support and coordinate all known activities; and developed specific 
steps to share information on solutions and outcomes with others. 
Describe any written agreements, memoranda of understanding in place, 
or that will be in place after award.
    (2) Developed linkages, or specific steps to develop linkages with 
other activities, programs or projects (through meetings, information 
networks, planning processes or other mechanisms to coordinate its 
activities), so that solutions are holistic and comprehensive. Describe 
any linkages with other HUD-funded projects/activities outside the 
scope of those covered by the Consolidated Plan, as well as established 
linkages and outreach with residents of your project area.

VI. Application Submission Requirements

    (A) Public entities seeking EDI assistance must make a specific 
request for that assistance, in accordance with the requirements of 
this program section of this SuperNOFA.
    (B) You must submit an original and one copy of the items listed 
below to HUD Headquarters (see the section ``Addresses For Submitting 
Applications in this program section of this SuperNOFA). In addition, 
you must submit one additional copy directly to the Community Planning 
and Development Division of the appropriate HUD Field Office for your 
jurisdiction.
    (C) Your EDI application shall consist of the following items:
    (1) Your transmittal letter;
    (2) Table of contents;
    (3) Application check list (supplied in application kit);
    (4) A request for loan guarantee assistance under Section 108 as 
further described in Section IV(C) of this program section of the 
SuperNOFA. Application guidelines for the Section 108 loan guarantee 
program are found at 24 CFR 570.704;
    (5) As described in Section V(B) of this program section of this 
SuperNOFA, a narrative statement (3 page limit) describing the 
activities that you will carry out with the EDI grant funds;
    (6) Responses to each of the rating factors (within the page limits 
provided for each factor or subfactor as applicable);
    (7) Completion of a funding sources and uses statement and a EDI 
and Section 108 eligibility statement (see the application kit);
    (8) Written agreements or signed letters of understanding in 
support of Rating Factor 1: ``Capacity of the Applicant and Relevant 
Organizational Experience;''
    (9) Signed third party commitment letters pledging funds in support 
of subfactor 4(2): ``Leverage of other financial resources;''
    (10) In addition to the certifications specified in section II(G) 
of the General Section of this SuperNOFA, the forms and certifications 
required at 24 CFR 570.704(b)(3), (b)(4), (b)(8)(i), (b)(8)(ii), 
(b)(8)(vi), (b)(8)(vii), (b)(8)(viii), (b)(8)(x), and (b)(9); and
    (11) Acknowledgement of Application Receipt form.
    (D) A single application must contain a request for funds for a 
single EDI project. You may submit more than one application for each 
additional unrelated EDI project. Each application will be rated and 
ranked individually. In no event will HUD rate and rank more than one 
EDI project per application.
    (E) Your application must meet all of the applicable threshold 
requirements of Section IIB of the General Section of this SuperNOFA.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

(A) Environmental Review

    After the completion of this competition and after HUD's award of 
EDI grant funds, pursuant to 24 CFR 570.604, each project or activity 
assisted under this program is subject to the provisions of 24 CFR part 
58, including limitations on the EDI grant and Section 108 public 
entity's commitment of HUD and non-HUD funds prior to the completion of 
environmental review, notification and release of funds. No such 
assistance will be released by HUD until a request for release of funds 
is submitted and the requirements of 24 CFR part 58 have been met. All 
public entities, including nonentitlement public entities, shall submit 
the request for release of funds and related certification, required 
pursuant to 24 CFR part 58, to the appropriate HUD field office for 
each project to be assisted.

(B) Environmental Justice

    Executive Order 12898 (Federal Actions to Address Environmental 
Justice in Minority Populations and Low-Income Populations) directs 
Federal agencies to develop strategies to address environmental 
justice. Environmental justice seeks to rectify the disproportionately 
high burden of environmental pollution that is often borne by low-
income, minority, and other disadvantaged communities, and to ensure 
community involvement in policies and programs addressing this issue.

IX. Authority

    Section 108(q), Title I, Housing and Community Development Act of 
1974, as amended, (42 U.S.C. 5301-5320); 24 CFR part 570.

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Funding Availability for the Brownfields Economic Development 
Initiative (BEDI)

Program Overview

    Purpose of the Program. BEDI funds are used to enhance the security 
of the Section 108 guaranteed loan for the same project or to improve 
the viability of a project financed with a Section 108-guaranteed loan. 
A BEDI grant is required to be used in conjunction with a new Section 
108 guaranteed loan commitment.
    Available Funds. Approximately $25 million is available for BEDI 
grants under this SuperNOFA.
    Eligible Applicants. Any public entity eligible to apply for 
Section 108 loan guarantee assistance in accordance with 24 CFR 570.702 
may apply for BEDI grant assistance under section 108(q) and this 
SuperNOFA. (See Section III(B) below for additional information 
regarding eligible applicants.)
    Application Deadline. June 25, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance.

    Application Due Date. Submit your completed applications (one 
original and two copies) on or before 12:00 midnight, Eastern time, on 
June 25, 1999, to the addresses shown below.
    See the General Section of this SuperNOFA for specific procedures 
governing the form of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Addresses for Submitting Applications. To HUD Headquarters. Submit 
your completed application (an original and one copy) to: Processing 
and Control Unit, Room 7251, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW, Washington, D.C. 20410, Attention: BEDI Grant, by mail or 
hand delivery.
    To the Appropriate CPD Field Office. At the same time you submit 
your application to HUD Headquarters, you must submit an additional 
copy of the application to the Community Planning and Development 
Division of the appropriate HUD Field Office for your jurisdiction.
    When submitting your application, please refer to BEDI, and include 
your name, mailing address (including zip code) and telephone number 
(include area code).
    For Application Kits. For an application kit and any supplemental 
information, please call HUD's SuperNOFA Information line toll free at 
1-800-HUD-8929. When requesting an application kit, please refer to 
BEDI. Please be sure to provide your name, address (including zip 
code), and telephone number (including area code). Persons with hearing 
or speech impairments may call the Center's TTY number at 1-800-HUD-
2209 to obtain an application kit. The application kit will also be 
available on the Internet through the HUD web site at http://
www.hud.gov.
    For Further Information and Technical Assistance. Contact either 
Stan Gimont or Paul Webster, Financial Management Division, Office of 
Block Grant Assistance, Department of Housing and Urban Development, 
451 Seventh Street, SW, Room 7178, Washington, DC 20410, telephone 
(202) 708-1871 (this is not a toll-free number). Persons with speech or 
hearing impairments may access this number via TTY by calling the toll-
free Federal Information Relay Service at 1-800-877-8339.
    See the General Section of this SuperNOFA for guidance on technical 
assistance. With respect to the Section 108 Loan Guarantee program, 
which is not a competitive program and thus not subject to those 
provisions of the HUD Reform Act pertaining to competitions, HUD staff 
will be available to provide advice and assistance to develop Section 
108 loan applications.

II. Amount Allocated

    HUD has available a maximum of $25 million for the BEDI program, as 
appropriated in Pub.L. 105-276 (the FY 1999 VA-HUD Appropriations Act) 
for the purpose of assisting public entities in the redevelopment of 
brownfields.

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description.
    BEDI is designed to help cities redevelop abandoned, idled, or 
underutilized industrial and commercial facilities where expansion or 
redevelopment is complicated by real or perceived environmental 
contamination--brownfields. BEDI accomplished this by providing funding 
to local governments to be used in conjunction with Section 108 loan 
guarantees to finance redevelopment of brownfield sites.
    (1) Definitions. Unless otherwise defined herein, terms defined in 
24 CFR part 570 and used in this program section of this SuperNOFA 
shall have the respective meanings given thereto in that part.
    Act means Title I, Housing and Community Development Act of 1974, 
as amended, (42 U.S.C. 5301 et seq.).
    Brownfield means abandoned, idled, or under-used real property 
(including industrial and commercial facilities) where expansion or 
redevelopment is complicated by real or perceived contamination.
    Brownfields Economic Development Initiative (BEDI) means the 
competitive award of up to $25 million, as appropriated in the FY 1999 
VA-HUD Appropriations Act, for economic development grant assistance 
under section 108(q) of the Act for the purpose of assisting public 
entities in the redevelopment of brownfields.
    Brownfields economic development initiative (BEDI) project means an 
activity or activities (including mixed use projects with housing 
components) that are eligible under the Act and under 24 CFR 570.703, 
and that increase economic opportunity for persons of low- and 
moderate-income or that stimulate or retain businesses or jobs or that 
otherwise lead to economic revitalization in connection with 
brownfields.
    CDBG funds means those funds collectively defined at 24 CFR 570.3, 
including grant funds received pursuant to section 108(q) and this 
program section of this SuperNOFA.
    Economic Development Initiative (EDI) means the provision of 
economic development grant assistance under section 108(q) of the Act, 
as authorized by Section 232 of the Multifamily Housing Property 
Disposition Reform Act of 1994 (Pub. L. 103-233, approved April 11, 
1994).
    Empowerment Zone or Enterprise Community means an urban area so 
designated by the Secretary of HUD pursuant to 24 CFR part 597 or 598, 
or a rural area so designated by the Secretary of Agriculture pursuant 
to 7 CFR part 25, subpart B.
    EPA means the U.S. Environmental Protection Agency.
    Showcase Community means an applicant chosen by the Federal 
Government's Brownfields National Partnership for inclusion in the 
Federal Government's Brownfields Showcase Communities program.
    Strategic Plan means a strategy developed and agreed to by the 
nominating local government(s) and State(s) and submitted in partial 
fulfillment of the application requirements for an Empowerment Zone

[[Page 9802]]

or Enterprise Community designated pursuant to 24 CFR part 597 or 598.
    (2) Background.
    (a) HUD has multiple programs which are intended to stimulate and 
promote economic and community development and can be effectively 
employed to address and remedy brownfield conditions. Primary among 
HUD's resources are the Community Development Block Grant (CDBG) 
program and the Section 108 loan guarantee program.
    (b) The CDBG program provides grant funds (approximately $4.232 
billion in FY 1999) by formula to local governments (either directly or 
through States) to carry out community and economic development 
activities. The Section 108 loan guarantee program provides local 
governments with a source of financing for economic development, 
housing rehabilitation, and other eligible large scale physical 
development projects. HUD is authorized pursuant to Section 108 to 
guarantee notes issued by CDBG entitlement communities and non-
entitlement units of general local government eligible to receive funds 
under the State CDBG program. Regulations governing the Section 108 
program are found at 24 CFR part 570, subpart M. It must be noted that 
the Section 108 program is subject to the regulations of 24 CFR part 
570 applicable to the CDBG program with the exception of changes 
embodied in 24 CFR part 570, subpart M. EDI and BEDI grants support 
Section 108 loan guarantees as generally described under the above 
section entitled ``Purpose of the Program.''
    (c) For FY 1999, the Section 108 program is authorized at $1.261 
billion in loan guarantee authority. The full faith and credit of the 
United States will be pledged to the payment of all guarantees made 
under Section 108. Under this program, communities (and States, if 
applicable) pledge their future years' CDBG allocations as security for 
loans guaranteed by HUD. The Section 108 program, however, does not 
require CDBG funds to be escrowed for loan repayment (unless such an 
arrangement is specifically negotiated as loan security) and included 
in the applicable ``Contract for Loan Guarantee Assistance.'' This 
means that a community can ordinarily continue to spend its existing 
allocation for other CDBG purposes, unless needed for loan repayment.
    (3) EDI Program. The EDI program was enacted in 1994 and is 
intended to complement and enhance the Section 108 Loan Guarantee 
program. A purpose of EDI (and BEDI) grant funds is to further minimize 
the potential loss of future CDBG allocations:
    (a) By strengthening the economic feasibility of the projects 
financed with Section 108 funds (and thereby increasing the probability 
that the project will generate enough cash to repay the guaranteed 
loan);
    (b) By directly enhancing the security of the guaranteed loan; or
    (c) Through a combination of these or other risk mitigation 
techniques.
    (4) BEDI Program. For FY 1999, Congress has made a specific 
appropriation of $25 million for the EDI program to assist in financing 
``brownfields'' redevelopment. HUD intends the $25 million in 
Brownfields EDI (BEDI) funds available pursuant to this program section 
of this SuperNOFA to be used with a particular emphasis upon the 
redevelopment of brownfield sites consistent with the statutory purpose 
of the FY 1999 HUD Appropriations Act. Accordingly, BEDI funds shall be 
used as the stimulus for local governments and private sector parties 
to commence redevelopment or continue phased redevelopment efforts on 
brownfield sites where contamination is known or suspected and a 
redevelopment plans exist. HUD desires to see BEDI and Section 108 
funds used to finance projects and activities that will provide near-
term results and demonstrable economic benefits, such as job creation 
and increases in the local tax base. HUD does not encourage 
applications whose scope is limited only to site acquisition and/or 
remediation (i.e., land banking), where there is no immediately planned 
redevelopment.
    (5) Redevelopment Focus. The redevelopment focus for BEDI-assisted 
projects is also prompted by the need to provide additional security 
for the Section 108 loan guarantee pursuant to 24 CFR 570.705(b)(3). 
While public entities are required by the Act to pledge their current 
and future CDBG funds as a source of security for the Section 108 loan 
guarantee, the public entity will usually be required to furnish 
additional collateral which, ideally, will be the assets financed with 
the Section 108 loan funds. Clearly, a redevelopment focus for the BEDI 
funds will help achieve this goal by enhancing the value and improving 
the viability of projects assisted with Section 108 financing.
    (6) Integration of Other Government Brownfield Programs. HUD 
expects and encourages local governments which are designated through 
(a) the Federal Government's Brownfields Showcase Community program, 
(b) other Federal brownfields programs (e.g., EPA's Assessment Pilot or 
Revolving Loan Fund programs), (c) a State-supported brownfields 
program, or (d) a State or local related economic development program, 
to integrate efforts arising from those programs in developing projects 
for assistance under HUD's BEDI and Section 108 programs. Applicants 
should elaborate upon these ties in their response to the rating 
factors, where appropriate (e.g. ``Capacity of the Applicant,'' 
``Soundness of Approach,'' ``Leveraging Resources,'' or 
``Comprehensiveness and Coordination,''--Rating Factors 1, 3, 4, and 5 
respectively.)
    (7) Typical Project Structures. Provided that proposals are 
consistent with other CDBG requirements, including national objectives, 
HUD envisions that the following project structures could be typical:
    (a) Land Writedowns. Local governments may use a combination of 
Section 108 and BEDI funds to acquire a brownfield site for purposes of 
reconveying the site to a private developer at a discount from its 
purchase price. This approach would provide the developer with an asset 
of enhanced value which could be used as collateral for other sources 
of funding. Such other sources of financing could be used to finance 
environmental remediation or other development costs. In theory, the 
level of BEDI assistance would approximate the difference between the 
original cost of the site and its remediation in comparison to the 
market value of the remediated property.
    (b) Site Remediation Costs. Local governments may use BEDI funds in 
any of several ways to address site remediation costs. If the local 
government used Section 108 funds to acquire real property, BEDI funds 
could be used to address assessment and site remediation costs as part 
of demolition, clearance, or site preparation activities. If the local 
government used Section 108 funds to make a loan to a developer, BEDI 
funds could be granted to the developer for the purpose of addressing 
remediation costs as part of an economic development activity.
    (c) Funding Reserves. The cash flow generated by an economic 
development project may be expected to be relatively ``thin'' in the 
early stages of the project, i.e. potentially insufficient cash flows 
to meet operating expenses and debt service obligations. The BEDI grant 
can make it possible for reserves to be established in a way that 
enhances the economic feasibility of the project.
    (d) Over-Collateralizing the Section 108 Loan.

[[Page 9803]]

    (i) The use of BEDI grant funds may be structured in appropriate 
cases so as to improve the likelihood that project-generated cash flow 
will be sufficient to cover debt service on the Section 108 loan and 
directly to enhance the guaranteed loan. One technique for 
accomplishing this approach is over-collateralization of the Section 
108 loan.
    (ii) An example is the creation of a loan pool made up of Section 
108 and BEDI grant funds. The community would make loans to various 
businesses from the combined pool at an interest rate equal to or 
greater than the rate on the Section 108 loan. The total loan portfolio 
would be pledged to the repayment of the Section 108 loan.
    (e) Direct Enhancement of the Security of the Section 108 Loan. The 
BEDI grant can be used to cover the cost of providing enhanced 
security. An example of how the BEDI grant can be used for this purpose 
is by using the grant funds to cover the cost of a standby letter of 
credit, issued in favor of HUD. This letter of credit will be available 
to fund amounts due on the Section 108 loan if other sources fail to 
materialize and thus will serve to protect the public entity's future 
CDBG funds.
    (f) Provision of Financing to For-Profit Businesses at a Below 
Market Interest Rate.
    (i) While the rates on loans guaranteed under Section 108 are only 
slightly above the rates on comparable U.S. Treasury obligations, they 
may nonetheless be higher than can be afforded by businesses in 
severely economically distressed neighborhoods. The BEDI grant can be 
used to make Section 108 financing affordable.
    (ii) BEDI grant funds could serve to ``buy down'' the interest rate 
up front, or make full or partial interest payments, allowing the 
businesses to be financially viable in the early start-up period not 
otherwise possible with Section 108 alone. This strategy would be 
particularly useful where a community was undertaking a large 
commercial/retail project in a distressed neighborhood to act as a 
catalyst for other development in the area.
    (g) Combination of Techniques. An applicant could employ a 
combination of these or other techniques in order to implement a 
strategy that carries out an economic development project.
    (B) Eligible Applicants. Any public entity eligible to apply for 
Section 108 loan guarantee assistance in accordance with 24 CFR 570.702 
may apply for BEDI grant assistance under section 108(q). Eligible 
applicants are CDBG entitlement units of general local government and 
non-entitlement units of general local government eligible to receive 
loan guarantees under 24 CFR part 570, subpart M. Urban Counties, as 
defined at 24 CFR 570.3 and 570.307, are eligible applicants for BEDI 
funds; units of general local government which participate in an Urban 
County program are not independently eligible applicants. Non-
entitlement applicants, other than those in the States of Hawaii and 
New York, will be required to provide proof that the State will support 
the related Section 108 loan with a pledge of its CDBG funds pursuant 
to the requirements of 24 CFR 570.705(b)(2). Note that effective 
January 25, 1995, non-entitlement public entities in the states of New 
York and Hawaii were authorized to apply to HUD for Section 108 loans 
(see 59 FR 47510, December 27, 1994). Thus non-entitlement public 
entities in all 50 states and Puerto Rico are eligible to participate 
in the Section 108 and BEDI programs.

(C) Eligible Activities and National Objectives

    (1) BEDI grant funds may be used for activities listed at 24 CFR 
570.703, provided such activities are carried out as part of a BEDI 
project as defined in Section III(A) of this BEDI section of this 
SuperNOFA. You are required to submit applications that seek funding 
for BEDI projects that will contribute to the redevelopment and 
revitalization of brownfields. Applications that fail to meet the 
requirements for a BEDI project as set forth in this SuperNOFA will not 
be rated by HUD.
    (2) Each activity assisted with Section 108 loan guarantee or BEDI 
funds must meet a national objective of the CDBG program as described 
in 24 CFR 570.208. Applicants must clearly identify in their narrative 
statement (as described in Section V.(B) below) the CDBG national 
objective to be achieved by the proposed project and provide the 
appropriate CDBG national objective regulatory citation found at 24 CFR 
570.208. Applicants must also address, when applicable, how the 
proposed activities will comply with the public benefit standards of 
the CDBG program as reflected in the regulation at 24 CFR 570.209 for 
the Entitlement program and 24 CFR 570.482 for the State CDBG program.
    (3) In the aggregate, a grantee's use of CDBG funds, including any 
Section 108 loan guarantee proceeds and section 108(q) (EDI) funds 
provided pursuant to this program section of this SuperNOFA, must 
comply with the CDBG primary objectives requirements as described in 
section 101(c) of the Act and 24 CFR 570.200(c)(3) or 570.484 in the 
case of State grantees.

IV. Program Requirements

(A) CDBG Program Regulations

    In addition to 24 CFR 570.701 (Definitions), 570.702 (Eligible 
applicants), and 570.703 (Eligible activities), as explained elsewhere 
in this program section of the SuperNOFA, the CDBG regulatory 
requirements cited in 24 CFR 570.707, including subparts J (Grant 
Administration), K (Other Program Requirements), and O (Performance 
Reviews) govern the use of BEDI funds, as applicable.

(B) Compliance with Applicable Laws

     Applicants are advised that an award of BEDI funding does not in 
any way relieve the applicant or third party users of BEDI funds from 
compliance with all applicable Federal, State and local laws, 
particularly those addressing the environment. Applicants are further 
advised that HUD may require evidence that any project involving 
remediation has been or will be carried out in accordance with State 
law, including voluntary clean up programs.

(C) Related Section 108 Loan Guarantee Application

    (1) Each BEDI application must be accompanied by a request for new 
Section 108 loan guarantee assistance. Both the BEDI and Section 108 
funds must be used in conjunction with the same BEDI project. The 
request may take any of several forms as defined below.
    (a) A full application for new Section 108 loan guarantee(s), 
including the documents listed at 24 CFR 570.704(b).
    (b) A brief description (not to exceed three pages) of a new 
Section 108 loan guarantee application(s). Such 108 application(s) will 
be submitted within 60 days of a notice of BEDI selection, with HUD 
reserving the right to extend such period for good cause on a case-by-
case basis. BEDI awards will be conditioned on approval of actual 
Section 108 loan commitments. The application description must be 
sufficient to support the basic eligibility of the proposed project or 
activities for Section 108 assistance. (See Section III(C) of this 
program section of this SuperNOFA.); or
    (c) A copy of a pending, unapproved Section 108 loan guarantee 
application, and any proposed amendments to the Section 108 application 
which are related to the BEDI application. The applicant's submission 
of such a BEDI/Section 108 application shall be deemed by HUD to 
constitute a request to

[[Page 9804]]

suspend separate processing of the Section 108 application. The Section 
108 application will not be approved until on or after the date of the 
related BEDI award.
    (d) A request for a Section 108 loan guarantee amendment (analogous 
to Section IV(C)(1)(a) or (b) of this BEDI section of the SuperNOFA) 
that proposes to increase the amount of a previously approved 
application. However, any amount of Section 108 loan guarantee 
authority approved before HUD's announcement of a BEDI grant for the 
same project pursuant to this SuperNOFA is not eligible to be used in 
conjunction with a BEDI grant under this SuperNOFA.
    (2) Further, a Section 108 loan guarantee amount that is required 
to be used in conjunction with a prior EDI or BEDI grant award, whether 
or not the Section 108 loan guarantee has been approved as of the date 
of this SuperNOFA, is not eligible for a BEDI award under this 
SuperNOFA. For example, if a public entity has a previously approved 
Section 108 loan guarantee commitment of $12 million, even if none of 
the funds have been utilized, or if the public entity had previously 
been awarded an EDI grant of $1 million and had certified that it will 
submit a Section 108 loan application for $10 million in support of 
that EDI grant, the public entity's application under this program 
section of this SuperNOFA must propose to increase the amount of its 
total Section 108 loan guarantee commitments beyond those amounts (the 
$12 million or $10 million in this example) to which it has previously 
agreed.

(D) Limitations on Use of BEDI and Section 108 Funds

    Certain restrictions shall apply to the use of BEDI and Section 108 
funds:
    (1) BEDI grants shall not be used as a resource to immediately 
repay the principal of a loan guaranteed under Section 108. Repayment 
of principal is only permissible with BEDI grant funds as a matter of 
security if other sources projected for repayment of principal prove to 
be unavailable.
    (2) You should not use Section 108 funds to finance activities 
which also include financing generated through the issuance of 
federally tax exempt obligations. Pursuant to Office of Management and 
Budget (OMB) Circular A-129 (Policies for Federal Credit Programs and 
Non-Tax Receivables), Section 108 guaranteed loan funds may not 
directly or indirectly support federally tax-exempt obligations.
    (3) HUD will not consider for funding any BEDI proposal in which 
the related Section 108 loan guarantee would be used solely as 
security. BEDI funds are to be used to support and enhance activities 
financed with Section 108 loan guarantee proceeds from HUD's interim 
lending or public offering mechanisms and thereby leverage greater use 
of the Section 108 program. Awarding BEDI funds to a project which 
would use the Section 108 guarantee only as a security guarantee for 
other financing can be tantamount to making a simple grant to the 
project and thereby fails to fulfill the goals of the BEDI program.
    (4) BEDI grant funds shall not be used in any manner by grantees to 
provide public or private sector entities with funding to remediate 
conditions caused by their actions, where the public entity (or other 
known prospective beneficiary of the proposed BEDI grant) has been 
determined responsible for causation and remediation by order of a 
court or a Federal, State, or local regulatory agency, or is 
responsible for the remediation as part of a settlement approved by 
such a court or agency.
    (5) Applicants may not propose projects on sites which are listed 
or proposed to be listed on EPA's National Priority List (NPL). 
Further, applicants are cautioned against proposing projects on sites 
where the nature and degree of environmental contamination is not well 
quantified or which are the subject of on-going litigation or 
environmental enforcement action.

(E) Limitations on Grant Amounts

    (1) HUD expects to approve BEDI grant amounts for approvable 
applications at a range of ratios of BEDI grant funds awarded to new 
Section 108 loan guarantee commitments but the minimum ratio will be $1 
of Section 108 loan guarantee commitments for every $1 of BEDI grant 
funds. However, if you propose a leverage ratio of 1:1, your 
application will not receive any points under the Rating Subfactor 
4(1): ``Leverage of Section 108 Funds.''
    For example, if you request a BEDI grant of $1 million, you will be 
required to leverage a minimum of at least $1 million in new Section 
108 loan guarantee commitments. Of course, even though there is a 
minimum ratio of 1:1, applications with higher ratios will receive more 
points under Rating Factor 4, ``Leveraging Resources/Financial Need'' 
and, all other things being equal, will be more competitive. You are 
encouraged to propose projects with a greater leverage ratio of new 
Section 108 to BEDI grant funds (assuming such projects are financially 
viable). For example $1 million of BEDI could leverage $12 million of 
new Section 108 loan commitments. HUD intends that the BEDI funds will 
be used for projects that leverage the greatest possible amount of 
Section 108 loan guarantee commitments. Because a fundable application 
is competitive in part because of the applicant's proposed ratio of 
BEDI funds to funds guaranteed by a Section 108 loan guarantee, HUD 
will condition a BEDI grant award on the grantee's achievement of that 
specific ratio. Your failure to meet that condition by obtaining timely 
HUD approval of a commitment for, and issuance of, the required Section 
108 guaranteed obligations ratio may result in the cancellation and 
recapture of all or a proportionate share of the BEDI grant award.
    (2) HUD will cap BEDI awards at a maximum of $2 million. Any 
application in excess of $1 million may be reduced below the amount 
requested by the applicant if HUD determines that such a reduction is 
appropriate.
    (3) In the event you are awarded a BEDI grant that has been reduced 
below the original request (e.g., your application contained some 
activities that were ineligible or there were insufficient funds to 
fund the last competitive application at the full amount requested), 
you will be required to modify your project plans and application to 
conform to the terms of HUD approval before execution of a grant 
agreement. HUD also will proportionately reduce or deobligate the BEDI 
award if you do not submit an approvable Section 108 loan guarantee 
application on a timely basis (including any extension authorized by 
HUD) in the amount required by the BEDI/108 leveraging ratio, which 
will be approved by HUD as a special condition of the BEDI grant award 
(see Section IV(E)(1) above of this program section of the SuperNOFA). 
Any modifications or amendments to your application approved pursuant 
to this SuperNOFA, whether requested by you or by HUD, must be within 
the scope of the approved original BEDI application in all respects 
material to rating the application, unless HUD determines that your 
revised application remains within the competitive range and is 
otherwise approvable under this SuperNOFA competition.
    (4) In the case of requested amendments to a previously approved 
Section 108 loan guarantee commitment (as further discussed in section 
IV(C)(1)(d) above), the BEDI assistance approved will be based on the 
increased amount of Section 108 loan guarantee assistance.

[[Page 9805]]

    (5) Pursuant to another portion of this SuperNOFA, HUD is 
simultaneously announcing the availability of up to $35 million of EDI 
funds. While HUD will permit you to pursue BEDI and EDI funds for the 
same project, HUD requires that your BEDI and EDI applications (and 
components contained in the applications) be independent of one 
another. Thus, each application should have an identifiable amount of 
Section 108 funding associated with its respective request for EDI and 
BEDI funds, for purposes of determining the leverage of Section 108 
funding to the corresponding amount of EDI or BEDI funds requested. 
Further, the proposed amount of Section 108 borrowing associated with 
either the BEDI or EDI grant must not be used to determine leverage of 
other financial sources under Rating Subfactor 4(3). Further, if you 
seek both BEDI and EDI funds for the same project, you must include, in 
your response to Rating Factor 3 and the ``Financial feasibility'' 
portion of Rating Factor 4, a discussion of how your project can be 
financed and implemented if you fail to obtain either BEDI or EDI funds 
under this SuperNOFA.

(F) Timing of Grant Awards

    (1) To the extent you submit a full Section 108 application with 
the BEDI grant application, HUD will evaluate your Section 108 
application concurrently with your request for BEDI grant funds. Note 
that BEDI grant assistance cannot be used to leverage a Section 108 
loan guarantee approved prior to the date of HUD's announcement of a 
BEDI grant pursuant to this SuperNOFA. However, the BEDI grant may be 
awarded prior to HUD approval of the Section 108 commitment if HUD 
determines that such award will further the purposes of the Act.
    (2) HUD's notice to you of the amount and conditions of BEDI funds 
awarded, based upon review of the BEDI application, constitutes an 
obligation of grant funds, subject to compliance with the conditions of 
award and execution of a grant agreement. BEDI funds will not be 
disbursed to the public entity before the issuance of the related 
Section 108 guaranteed obligations.

(G) Economic Opportunities for Low and Very Low-Income Persons (Section 
3)

    Section 3 of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701u) is applicable to BEDI grant recipients. Please see 
Section II(E) of the General Section of the SuperNOFA.

V. The Application Selection Process

(A) Rating and Ranking

    (1) Each rating factor and the maximum number of points is provided 
below. The maximum number of points to be awarded is 102. This includes 
two EZ/EC bonus points as described in the General Section of the 
SuperNOFA, or two bonus points for having received a Federal 
designation as a Brownfields Showcase Community. (Please note that in 
any event, the maximum number of bonus points is limited to a total of 
two (2).)
    (2) Once scores are assigned, HUD will rank all applications in 
order of points assigned, with the applications receiving more points 
ranking above those receiving fewer points. Applications will be funded 
in rank order.
    (3) Prior to award, if HUD determines that an application rated, 
ranked and fundable could be funded at a lesser BEDI grant amount than 
requested consistent with feasibility of the funded project or 
activities and the purposes of the Act, HUD reserves the right to 
reduce the amount of the BEDI award and/or increase the Section 108 
loan guarantee commitment, if necessary, in accordance with such 
determination. An application in excess of $1 million may be reduced 
below the amount requested by the applicant if HUD determines that such 
a reduction is appropriate.
    (4) HUD may decide not to award the full amount of BEDI grant funds 
available under this program section of this SuperNOFA and may make any 
remaining amounts available under a future SuperNOFA.
    (5) HUD desires to fund projects which will quickly produce 
demonstrable results. BEDI grant awards will contain conditions 
requiring you to adhere to your stated timeframes for implementing your 
proposed projects and drawing Section 108 and EDI funds. Failure to 
adhere to these schedules may be cause for HUD to recapture the BEDI 
funds.

(B) Narrative Statement

    (1) Provide a narrative statement describing the activities that 
you will carry out with the BEDI grant funds, explaining the nature and 
extent of the Brownfield's problems(s) affecting the project. Your 
narrative statement must not exceed three (3) 8.5'' by 11'' pages for 
the description of the activities to be carried out with the BEDI grant 
funds.
    (2) Describe how your proposed uses of BEDI funds will meet the 
national objectives for the CDBG program under 24 CFR 570.208 and 
qualify as eligible activities under 24 CFR 570.703. You must include 
citations to the specific regulatory subsections supporting eligibility 
and national objectives. (See Section III(C) of this program section of 
this SuperNOFA.)
    (3) Respond to the rating factors below. Each of the listed rating 
factors (or, where applicable, each subfactor) below also has a 
separate page limitation specified.
    (4) Print your narrative statement in 12 point type/font, and use 
sequentially numbered pages.

(C) Factors for Award Used to Evaluate and Rate Applications

    HUD will consider your application for selection based on the 
following factors that demonstrate the quality of your proposed project 
or activities, and your creativity, capacity and commitment to obtain 
maximum benefit from the BEDI funds, in accordance with the purposes of 
the Act.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (15 Points)
    [Your response to this factor is limited to three (3) pages.]
    This factor addresses the extent to which you have the 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner. The rating of the ``applicant'' 
or the ``applicant's organization and staff'' for technical merit or 
threshold compliance, unless otherwise specified, will include any 
subcontractors, consultants, subrecipients, and members of consortia 
that are firmly committed (i.e. have a written agreement or a signed 
letter of understanding with you agreeing in principle to their 
participation and role in the project). In rating this factor, HUD will 
consider the following:
    (1) With regard to the BEDI/Section 108 project you propose, you 
should demonstrate that you have the capacity to implement the specific 
steps required to successfully carry out the proposed BEDI/Section 108 
project. This includes factors such as your:
    (a) Performance in the administration of your CDBG, HOME or other 
programs;
    (b) Previous experience, if any, in administering a Section 108 
loan guarantee;
    (c) Performance and capacity in carrying out economic development 
projects;
    (d) Performance and capacity to carry out Brownfields redevelopment 
projects;
    (e) Ability to conduct prudent underwriting;

[[Page 9806]]

    (f) Capacity to manage and service loans made with the guaranteed 
loan funds or previous EDI or BEDI grant funds;
    (g) Capacity to carry out your projects and programs in a timely 
manner; and,
    (h) If applicable, your capacity to manage projects under this 
program section of this SuperNOFA along with any federal funds awarded 
as a result of a federal urban Empowerment Zone/Enterprise Community 
designation (including Enhanced Enterprise Community (EEC) 
designations).
    (2)(a) If you have previously received an EDI or BEDI grant 
award(s), you must describe the status of the implementation of those 
project(s) assisted with EDI or BEDI funds, any delays that have been 
encountered and the actions you are taking to overcome any such delays 
in order to carry out the project in a timely manner. For such 
previously funded EDI or BEDI grant projects, HUD will consider the 
extent to which you have used the awarded EDI or BEDI grant funds and 
the associated Section 108-guaranteed loan funds.
    (b) Further, if you have EDI or BEDI funds and related Section 108 
loan guarantee authority available as a result of earlier HUD awards 
and commitments for activities such as (but not limited to) economic 
development loan funds, community development banks, and community and 
individual investment corporations, you should use those existing 
financial resources before applying for additional BEDI or EDI funds 
and Section 108 commitments. If HUD determines that you could fund your 
project from such existing resources, HUD will reduce your score under 
this rating factor to 0.
    (3) The capacity of subrecipients, nonprofit organizations and 
other entities that have a role in implementing your proposed program 
will be included in this review. HUD also may rely on information from 
performance reports, financial status information, monitoring reports, 
audit reports and other information available to HUD in making its 
determination under this factor.
Rating Factor 2: Distress/Extent of the Problem (15 Points)
    [Your response to this factor is limited to three (3) pages.]
    This factor addresses the extent to which there is need for funding 
your proposed activities based on levels of distress, and an indication 
of the urgency of meeting the need/distress in your target area.
    (1) In applying this factor, HUD will consider current levels of 
distress in the immediate community to be served by your project and 
the jurisdiction applying for assistance. If you are able to indicate a 
level of distress in the immediate project area that is greater than 
the level of distress in your jurisdiction as a whole, HUD will give 
your application a higher score under this factor than other 
applications that do not. HUD requires you to use sound and reliable 
data that is verifiable to support the level of distress you claim in 
your application. You must provide a source for all information you 
cite and indicate the publication date or origination date of the data.
    (2) In previous EDI competitions, the poverty rate was often 
considered the best indicator of distress. You must provide the poverty 
rate for your jurisdiction as a whole and for the areas to be served 
and/or where the BEDI/Section 108-funded project is located; however, 
in addition, you may demonstrate the level of distress with other 
factors such as income levels and unemployment rates.
    (3) To the extent that your Consolidated Plan and its Analysis of 
Impediments to Fair Housing choice (AI) identifies the level of 
distress in the community and the neighborhood in which your project is 
being carried out, you should include references to such documents in 
preparing your response to this factor. Also, you should discuss the 
extent to which the analysis of impediments identifies unhealthy 
environmental conditions, such as contaminated soil and/or water and 
how such conditions negatively impact your target neighborhood.
Rating Factor 3: Soundness of Approach (25 Points)
    [Your response to this factor is limited to three (3) pages.]
    This factor addresses the quality and cost-effectiveness of your 
proposed plan. There must be a clear relationship between the proposed 
activities, community needs and purposes of the program funding for you 
to receive points for this factor. In rating this factor, HUD will 
consider the following:
    (1) The quality of your plan/proposal for using BEDI funds and 
Section 108 loan funds, including the extent to which your proposed 
plan for effective use of BEDI grant/Section 108-guaranteed loan funds 
will address the needs you described in Rating Factor 2 above regarding 
the distress and extent of the problem in your immediate community and/
or jurisdiction. As part of the response to this factor, you should 
identify the eligible activities you will carry out and fully describe 
how your project will achieve a CDBG national objective. You should 
make substantial efforts to demonstrate how your proposed project would 
mitigate or otherwise address the distress you identified in Rating 
Factor 2 above.
    (2) The extent to which your plan is logically, feasibly, and 
substantially likely to achieve your stated purpose. HUD's desire is to 
fund projects and activities that will quickly produce demonstrable 
results and advance the public interest including the number of jobs to 
be created by the project. You should demonstrate that you have a clear 
understanding of the steps required to implement your project, the 
actions that you and others responsible for implementing the project 
must complete. You must include a reasonable time schedule for carrying 
out your project. The application kit contains a timeline form that you 
must use to indicate your project timing.
    (3) The extent to which your response to this factor takes into 
account certain site selection, planning, and environmental issues. 
Further, you are cautioned against proposing projects on sites where 
the nature and degree of environmental contamination is not well 
quantified or that are the subject of on-going litigation or 
environmental enforcement. Sites with unknown or exceptionally 
expensive contamination problems may be beyond the scope of the BEDI 
program's financial resources, and sites subject to pending and current 
litigation may not be available for remediation and development in a 
timeframe consistent with HUD's desire for rapid progress in the use of 
BEDI and Section 108 funds.
    (4) The extent to which your projects will integrate environmental 
justice concerns and provide demonstrable benefits for affected 
communities and their residents. The BEDI program is intended to 
promote the clean up and redevelopment of brownfield sites.
    (5) The extent to which your proposed project addresses your 
Analysis of Impediments and the needs identified in Rating Factor 2; 
the extent to which such project activities will result in the physical 
and economic improvement for the residents in the neighborhood in which 
your project will be carried out; the extent to which you will offer 
residents an opportunity to relocate to environmentally healthy housing 
or neighborhoods; or the extent to which residents will benefit from 
the funded project to enable them to continue to live in a redeveloped 
or revitalized neighborhood and thus share in the anticipated economic 
benefits and environmental improvements your project is expected to 
generate.
    (6) The extent to which your project incorporates one or more 
elements that

[[Page 9807]]

facilitate a successful transition of welfare recipients from welfare 
to work. Such an element could include, for example, linking your 
proposed project or loan fund to social and/or other services needed to 
enable welfare recipients to successfully secure and carry out full-
time jobs in the private sector; provision of job training to welfare 
recipients who might be hired by businesses financed through the 
proposal; and/or incentives for businesses financed with BEDI/section 
108 funds to hire and train welfare recipients.
    (7) Due to an order of the U.S. District Court for the Northern 
District of Texas, Dallas Division, with respect to any application 
submitted by the City of Dallas, Texas, HUD's consideration of the 
response to this factor, ``Soundness of Approach'' will include the 
extent to which Dallas' plan for BEDI funds and Section 108 loans will 
speed eradication of the vestiges of racial segregation in the Dallas 
Housing Authority's programs consistent with the Court's order. Up to 
two (2) additional points will be awarded to any application submitted 
by the City of Dallas, Texas, to the extent this subfactor is 
addressed.
Rating Factor 4: Leveraging Resources/Financial Need (35 Points)
    [Page limits for the response to this factor are listed separately 
for each subfactor under this factor.]
    In evaluating this factor, HUD will consider the extent to which 
your response demonstrates the financial need and feasibility of your 
project and the leverage ratio of Section 108 loan proceeds to BEDI 
grant funds. This factor has three subfactors, each with its own 
maximum point total:
    (1) Leverage of Section 108 funds (20 points). [Your response to 
this subfactor is limited to one (1) page.] The minimum ratio of 
Section 108 funds to BEDI funds in any project may not be less than 
1:1. The extent to which your proposed project leverages an amount of 
Section 108 funds beyond the 1:1 ratio will be considered a positive 
factor. If you have a ratio of 1:1, your application will not receive 
any points under this subfactor. If you use your BEDI grant to leverage 
more new Section 108 commitments, your application will receive more 
points under this subfactor.
    (2) Financial feasibility (10 points). [Your response to this 
subfactor is limited to three (3) pages.] HUD will consider the extent 
to which you demonstrate that your project is financially feasible. In 
responding to this subfactor, you must clearly address the question of 
why the BEDI funds are critical to the success of your project. This 
may include factors such as:
    (a) Project costs and financial requirements. You should provide a 
funding sources and uses statement (not included in the 3 page 
narrative limit), as well as justifications for project costs.
    (b) The amount of any debt service or operating reserve accounts 
you will establish in connection with your economic development 
project.
    (c) The reasonableness of the costs of any credit enhancement you 
pay with BEDI grant funds.
    (d) The amount of program income (if any) you will receive each 
year during the repayment period for the guaranteed loan.
    (e) Interest rates on those loans to third parties (other than 
subrecipients) (either as an absolute rate or as a plus/minus spread to 
the Section 108 rate).
    (f) Underwriting criteria that you will use in determining project 
feasibility.
    (3) Leverage of other financial resources (5 points). [Your 
response to this subfactor is limited to one (1) page plus supporting 
documentation evidencing third party commitment (written and signed) of 
funds.] HUD will evaluate the extent to which you leverage other funds 
(public or private) with BEDI grant funds and section 108 guaranteed 
loan funds, and the extent to which such other funds are firmly pledged 
to the project. This could include the use of CDBG funds, other Federal 
or state grants or loans, your general funds, project equity or 
commercial financing provided by private sources or funds from non-
profits or other sources. Funds will be considered pledged to your 
project if there is evidence of the third party's written commitment to 
make the funds available for the BEDI/108 project, subject to approval 
of the BEDI and Section 108 assistance and completion of any 
environmental clearance required under 24 CFR part 58 for the project. 
Note that with respect to CDBG funds, your pledge of your CDBG funds 
will be considered sufficient commitment.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    [Your response to this factor is limited to two (2) pages.]
    This factor addresses the extent to which you have coordinated your 
activities with other known organizations; you participate or promote 
participation in your or a State's Consolidated Planning process; and 
you are working towards addressing a need in a comprehensive manner 
through linkages with other activities in the community.
    In evaluating this factor, HUD will consider the extent to which 
you demonstrate you have:
    (1) Coordinated your proposed activities with those of other groups 
or organizations before submitting your application, in order to best 
complement, support and coordinate all known activities; and developed 
specific steps to share information on solutions and outcomes with 
others. Describe any written agreements, memoranda of understanding in 
place, or that will be in place after award.
    (2) Developed linkages, or specific steps to develop linkages with 
other activities, programs or projects (through meetings, information 
networks, planning processes or other mechanisms to coordinate your 
activities), so that solutions are holistic and comprehensive. Describe 
any linkages with other HUD-funded projects/activities outside the 
scope of those covered by the Consolidated Plan, as well as established 
linkages and outreach with residents of your project area.
    (3) Coordinated your efforts with other Federal, State or locally 
supported activities, including EPA's various Brownfields initiatives, 
and those proposed or on-going in the community.

VI. Application Submission Requirements

    (A) Public entities seeking BEDI assistance must make a specific 
request for that assistance, in accordance with the requirements of 
this program section of this SuperNOFA.
    (B) You must submit an original and one copy of the items listed 
below to HUD Headquarters (see the section ``Addresses For Submitting 
Applications in this program section of this SuperNOFA). In addition, 
you must submit one additional copy directly to the Community Planning 
and Development Division of the appropriate HUD Field Office for your 
jurisdiction.
    (C) Your BEDI application consists of the following items:
    (1) Your transmittal letter;
    (2) Table of contents;
    (3) Application check list (supplied in application kit);
    (4) A request for loan guarantee assistance under Section 108, as 
further described in Section IV(C) of this program section of this 
SuperNOFA. Application guidelines for the Section 108 program are found 
at 24 CFR 570.704;
    (5) As described in Section V(B) of this program section of this 
SuperNOFA, a narrative statement (3 page limit) describing the 
activities that

[[Page 9808]]

you will carry out with the BEDI grant funds;
    (6) Responses to each of the rating factors (within the page limits 
provided for each factor or subfactor as applicable);
    (7) Completion of a funding sources and uses statement and a BEDI 
and Section 108 eligibility statement (see the application kit);
    (8) Written agreements or signed letters of understanding in 
support of Rating Factor 1: ``Capacity of the Applicant and Relevant 
Organizational Experience;''
    (9) Signed third party commitment letters pledging funds in support 
of subfactor 4(2): ``Leverage of other financial resources;''
    (10) In addition to the certifications specified in section II(G) 
of the General Section of this SuperNOFA, the forms and certifications 
required at 24 CFR 570.704(b)(3), (b)(4), (b)(8)(i), (b)(8)(ii), 
(b)(8)(vi), (b)(8)(vii), (b)(8)(viii), (b)(8)(x), and (b)(9); and
    (11) Acknowledgement of Application Receipt form.
    (D) A single application must contain a request for funds for a 
single BEDI project. You may submit more than one application for each 
additional unrelated BEDI project. Each application will be rated and 
ranked individually. In no event will HUD rate and rank more than one 
BEDI project per application.
    (E) Your application must meet all of the applicable threshold 
requirements of Section II.B. of the General Section of this SuperNOFA.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

(A) Environmental Review

    After the completion of this competition and after HUD's award of 
BEDI grant funds, pursuant to 24 CFR 570.604, each project or activity 
assisted under this program is subject to the provisions of 24 CFR part 
58, including limitations on the EDI grant and Section 108 public 
entity's commitment of HUD and non-HUD funds prior to the completion of 
environmental review, notification and release of funds. HUD will not 
release such assistance until you submit a request for release of funds 
and you satisfy the requirements of 24 CFR part 58. All public 
entities, including nonentitlement public entities, must submit the 
request for release of funds and related certification, pursuant to 24 
CFR part 58, to the appropriate HUD field office for each project to be 
assisted.

(B) Environmental Justice

    (1) Executive Order 12898 (Federal Actions to Address Environmental 
Justice in Minority Populations and Low-Income Populations directs 
Federal agencies to develop strategies to address environmental 
justice. Environmental justice seeks to rectify the disproportionately 
high burden of environmental pollution that is often borne by low-
income, minority, and other disadvantaged communities, and to ensure 
community involvement in policies and programs addressing this issue.
    (2) Brownfields are often located in distressed neighborhoods, 
contribute to neighborhood blight, and lower the quality of social, 
economic, and environmental health of communities. The BEDI program is 
intended to promote the clean up and redevelopment of brownfield sites 
and, to this end, HUD expects that projects presented for BEDI funding 
will integrate environmental justice concerns and provide demonstrable 
benefits for affected communities and their residents.

IX. Authority

    Section 108(q), Title I, Housing and Community Development Act of 
1974, as amended, (42 U.S.C. 5301-5320); 24 CFR part 570.

BILLING CODE 4210-32-P

[[Page 9809]]

[GRAPHIC] [TIFF OMITTED] TN26FE99.036



BILLING CODE 4210-32-C

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

[[Page 9811]]



Funding Availability for Self-Help Homeownership Opportunity (SHOP) 
Program

Program Overview

    Purpose of the Program. To facilitate and encourage innovative 
homeownership opportunities through self-help housing where the 
homebuyer contributes a significant amount of sweat-equity toward the 
construction of the new dwelling.
    Available Funds. $20,000,0000.
    Eligible Applicants. You must be a nonprofit national or regional 
organization or consortium.
    Application Deadline. April 29, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information:

I. Application Due Date, Standard Forms, Further Information, and 
Technical Assistance

    Application Due Date. Applications for SHOP grants must be 
physically received by HUD on or before 12:00 midnight Eastern Time on 
April 29, 1999.
    See the General Section of this SuperNOFA for specific procedures 
governing the form of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Address for Submitting Applications. Submit one original and two 
copies of the application to Department of Housing and Urban 
Development, Office of Community Planning and Development, Processing 
and Control Unit, 451 Seventh Street, SW, Room 7251, Washington, DC 
20410, ATTN: Self-Help Program.
    Standard Forms. No kit will be made available. For copies of the 
standard forms, please call HUD's SuperNOFA Information Center at: 1-
800-HUD-8929. Please refer to the ``Self-Help Program'' in your 
request.
    Further Information. Further information and technical assistance 
is available from Joan Morgan, Office of Affordable Housing Programs, 
Department of Housing and Urban Development, room 7168, 451 Seventh 
Street, SW, Washington, DC 20410; telephone (202) 708-3226, ext. 2213; 
(this is not a toll-free number). This number can be accessed via TTY 
by calling the Federal Information Relay Service Operator at 1-800-877-
TDDY (1-800-877-8339).

II. Amount Allocated

    The amount available for this program is $20,000,000

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    SHOP is intended to facilitate and encourage innovative 
homeownership opportunities on a national geographically-diverse basis 
through self-help housing where the homebuyer contributes a significant 
amount of sweat-equity toward the construction or rehabilitation of the 
dwelling.
    Decent, safe, and sanitary non-luxury dwellings developed under 
SHOP must be made available to eligible homebuyers at prices below the 
prevailing market prices. Eligible homebuyers are low-income families 
(families whose annual incomes do not exceed 80 percent of the median 
income for the area, as established by HUD) who are unable to purchase 
a dwelling. Housing assisted under this Notice must involve community 
participation through the use of homebuyers and/or volunteers in the 
construction of dwellings and by other activities which involve the 
community in the project.

(B) Eligible Applicants

    You must be a nonprofit national or regional organization or 
consortium that has the capacity and experience to provide or 
facilitate self-help housing homeownership opportunities. Local 
affiliates of national or regional organizations or consortia must 
apply as part of the national or regional organization and may not 
apply for SHOP independently. ``Regional'' is defined for the purpose 
of this program section of the SuperNOFA to be a ``regional area'' such 
as the Southwest or Northeast which must include at least two or more 
States (the States need not be contiguous and the operational 
boundaries of the organization need not precisely conform to State 
boundaries). If you are a consortium, one organization must be chosen 
as the lead entity. The lead entity must submit the application and, if 
selected for funding, will execute the grant agreement and assume 
primary responsibility for carrying out grant activities in compliance 
with all program requirements. Other participants in your consortium 
must be identified in your application.
    Your application may not propose a partnership with or funding for 
any affiliate or consortium member which is also included in another 
SHOP application. You must assure that any affiliate, consortium 
member, or potential subrecipient under your FY 1999 application is not 
also seeking funding from another SHOP applicant for FY 1999 funds.

(C) Eligible Activities

    The only eligible activities are land acquisition (including 
financing and closing costs), infrastructure improvement (installing, 
extending, constructing, rehabilitating, or otherwise improving 
utilities and other infrastructure, including removal of environmental 
hazards), and administration, planning and management development (as 
defined under the HOME Investment Partnerships Program (24 CFR Part 
92.207) and not to exceed 20 percent of any SHOP grant). Costs 
associated with the rehabilitation, improvement, or construction of 
dwellings are not eligible uses of program funds.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, you are subject to the following SHOP 
requirements:

(A) Statutory Requirements

    You must comply with all statutory requirements applicable to SHOP 
as cited in Section VIII below. There are no regulations for this 
program. You must be capable of:
    (1) Developing, through significant amounts of sweat-equity and 
volunteer labor, at least 30 dwellings at an average cost of no more 
than $10,000 per unit in SHOP funds;
    (2) Using your grant to leverage other sources of funding, 
including private or other public funds;
    (3) Developing quality dwellings that comply with local building 
and safety codes and standards and which will be available to 
homebuyers at prices below the prevailing market price; and
    (4) Scheduling activities to expend all grant funds awarded and 
substantially fulfill your construction obligations under your grant 
agreement within 24 months after grant funds are first made available 
to you.

(B) Economic Opportunities for Low and Very Low-Income Persons (Section 
3)

    If you fund infrastructure improvements under this program, you are 
required to comply with Section 3 of the Housing and Urban Development 
Act of 1968, 12 U.S.C. 1701u (Economic Opportunities for Low and Very 
Low-Income Persons) and the HUD regulations at 24 CFR part 135, 
including the reporting requirements subpart E. Section 3 requires that 
you

[[Page 9812]]

provide training, employment and other economic opportunities, to the 
greatest extent feasible, to (1) low and very low income persons, 
particularly those who are recipients of government assistance for 
housing and (2) business concerns which provide economic opportunities 
to low and very low income persons.

V. Application Selection Process

(A) Rating

    HUD will review all applications in accordance with the Application 
Selection Process in the General Section of this SuperNOFA. HUD will 
review all applications based on the threshold factors listed in 
Section V.(C) below. Applications which meet all threshold requirements 
will be rated according to the selection factors in this section of the 
SuperNOFA. Applications which do not meet all threshold factors will be 
rejected and will not be rated.

(B) Ranking and Selection Procedures

    Applications that receive a total rating of 60 points or more 
(without the addition of EC/EZ bonus points) will be eligible for 
selection, and HUD will place them in rank order. After adding any 
bonus points for EC/EZ, HUD will select these applications based on 
rank order, up to and including the last application that can be 
funded, up to amount of funding available.
    HUD reserves the right to fund less than the full amount requested 
in any application to ensure fair distribution of the funds and that 
dwellings will be developed on a national geographically-diverse basis 
as required by the statute. HUD may choose not to fund portions of your 
application that are ineligible for funding under program statutory 
requirements, or which do not meet the requirements of the General 
Section of this SuperNOFA or the requirements in the SHOP section of 
the SuperNOFA, and fund eligible portions of your applications. HUD 
will not fund any eligible applicant for less than the minimum amount 
necessary to complete at least 30 homes (at a maximum of $10,000 per 
home or a lesser amount if lower costs are reflected in the 
application). If funds remain after all selections have been made, 
these funds may be available for other competitions.

(C) Threshold Requirements

    The following threshold requirements apply specifically to SHOP. 
You must also be sure to address the threshold requirements listed in 
the General Section of the SuperNOFA and must submit all forms, 
certifications, and assurances identified in the General Section.
    (1) You, the applicant, must be eligible to apply under SHOP (see 
Section III(B) of this program section of the SuperNOFA.
    (2) The amount of funding you request must support no less than 30 
self-help units and may not exceed an average amount of $10,000 per 
unit.
    (3) The population you plan to serve must be eligible under SHOP 
(see Section III(A) of this program section of the SuperNOFA.
    (4) You must demonstrate that you have completed at least 30 self-
help homeownership units within a national or regional area (where the 
homebuyers contributed a significant amount of sweat-equity and/or 
volunteer labor toward the construction of the dwellings) within the 24 
month period preceding the publication of this SuperNOFA.

Submission Requirements for Thresholds:

    (1) Evidence of your non-profit status, such as a copy of a current 
Internal Revenue Service ruling that your organization is exempt from 
taxation under section 501(c)(3) or 501(c)(4) of the Internal Revenue 
Code of 1986. Where an IRS ruling is unavailable, you may submit a 
certified copy of your approved charter, articles of incorporation or 
bylaws demonstrating that you are established as a nonprofit 
organization under state law. If you are a consortium, each participant 
in your consortium must be a nonprofit organization, but only the lead 
entity should submit evidence of its nonprofit status. However, the 
lead entity must maintain a copy of the above-described documentation 
for each participant in your consortium.
    Submission requirements (2) through (4) require no additional 
submissions, these requirements are addressed under the submission 
requirements for the rating factors listed in Section V(D) of this 
program section of the SuperNOFA below.

(D) Factors for Award Used to Evaluate Applications

    HUD will rate all SHOP applications that successfully complete 
technical processing using the Rating Factors and the Application 
Submission Requirements described below. The maximum number of points 
for this program is 102. This includes two EZ/EC bonus points, as 
described in the General Section of the SuperNOFA.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (20 Points)
    This factor examines the extent to which you, as a single applicant 
or as a consortium (including sub-recipients and/or members of the 
consortium, if any), have the experience and organizational resources 
necessary to carry out the proposed activities in a timely manner.
    In evaluating this factor, HUD will consider your recent and 
relevant experience in carrying out the activities you propose, and 
your administrative ability, and fiscal management ability. HUD may 
also rely on information from performance reports, financial status 
information, monitoring reports, audit reports and other information 
available to HUD in making its determination under this factor. If you 
are not a current recipient of HUD funds, you may submit evidence of 
internal or external performance reports or other information which 
will assist HUD in making this determination.

Submission Requirements for Factor 1

    (1) You must describe your past experience in carrying out 
activities that are the same as, or similar to, the activities you 
propose for funding, and demonstrate reasonable success in carrying out 
those activities. You may demonstrate such reasonable success by 
showing that your previous activities were carried out as proposed and 
in a timely manner. You must show that established benchmarks were met 
and performance reports were prepared, as required. You must also 
describe any delays that were encountered, and the actions you took to 
overcome such delays to successfully complete your program.
    (2) You must demonstrate that you have completed at least 30 self-
help homeownership units within a national or regional area (where the 
homebuyers contributed sweat-equity and/or volunteer labor toward the 
construction of the dwellings) within the 24 month period preceding the 
publication of this SuperNOFA.
    (3) You must provide a description of your management structure. 
You must also describe how you will staff and manage your proposed 
activities.
    (4) You must demonstrate your ability to handle financial resources 
with adequate financial control and accounting procedures. Your 
existing financial control procedures must meet 24 CFR Part 84.21, 
``Standards for Financial Management Systems''. You must provide a copy 
of your most recent audit (only an audit of the lead entity

[[Page 9813]]

must be provided with an application for a consortium).
    (5) You must demonstrate your experience and ability in 
constructing and altering homes with accessibility features, when 
necessary.
Rating Factor 2: Need/Extent of the Problem (15 Points)
    This factor examines the extent to which you identify the community 
need, or problem, or distress that your proposed activities will 
target, and the urgency of meeting that need.
    The purpose of this factor is to make sure that funding is provided 
where a need for funding exists. Under this factor, you must identify 
the need or needs in the community that your proposed activities are 
designed to address or, if you plan to select specific subrecipients 
only after you receive SHOP funding, you must demonstrate how you plan 
to identify need prior to your selection of any subrecipients.
    Submission Requirements for Factor 2.
    (1) Identify the communities or areas in which your proposed 
activities will be carried out or how you will select communities or 
projects based on need after you have received an award under SHOP.
    (2) Depending on the type of activities proposed, the kind of 
information you submit to demonstrate the need or needs in the target 
area may include, but is not limited to, one or more of the following:
    (a) Housing market data such as information included in the local 
Five Year Comprehensive Plan or other data sources;
    (b) Data dealing with such factors as housing density, housing 
affordability, housing age or deterioration, and lack of adequate 
infrastructure or utilities;
    (c) Data on the need for accessible homes in the area;
    (d) Evidence of housing discrimination;
    (e) Evidence from the local Analysis of Impediments to Fair Housing 
Choice which shows the need for this program.
Rating Factor 3: Soundness of Approach (40 Points)
    This factor examines the quality of your plan of proposed 
activities. In evaluating this factor HUD will consider the specificity 
in your plan; your established benchmarks for performance; your 
schedule; your proposed budget and the cost effectiveness of your 
program; and your plans to reach all potentially-eligible homebuyers, 
including those with disabilities or least-likely to apply.
    In addition, HUD will consider how your planned activities further 
one or more of the policy priorities of the Department. Department 
policy priorities are: (i) Affirmatively furthering fair housing by 
promoting greater opportunities for housing choice for all segments of 
the population regardless of race, color, religion, national origin, 
sex, familial status and disability; (ii) Promoting healthy homes; 
(iii) Providing opportunities for self-sufficiency, particularly for 
persons enrolled in Welfare to Work programs; (iv) Providing 
educational and job training opportunities through such initiatives as 
Neighborhood Networks, and linking programs to AmeriCorps activities; 
and (v) Enhancing on-going efforts to eliminate drugs and crime from 
neighborhoods through program policy efforts such as ``One Strike and 
You're Out'' or the ``Officer Next Door'' initiative.
    Submission Requirements for Factor 3.
    (1) You must identify all activities you propose to fund with SHOP.
    (2) Provide a timetable for the selection of your participating 
local affiliates or partners, if they are not specified in the 
application.
    (3) You must submit a construction and completion schedule which 
expends SHOP funds within 24 months.
    (4) List the benchmarks against which HUD is to measure your 
performance progress in expending funds, completing activities, and 
substantially fulfilling the obligations of SHOP.
    (5) Describe how your proposed activities address the need or needs 
you have identified under Factor 2, above.
    (6) List the long and short term benefits from your activities to 
the community and targeted groups within the community, and describe 
how you will ascertain and measure the benefits.
    (7) Provide a detailed budget with a break-out for each proposed 
task and each budget category in the SF-424A.
    (8) Demonstrate that projected costs for the proposed activities do 
not deviate substantially from the norm in the locale in which your 
activities will take place, will not exceed an average cost of $10,000 
per home in SHOP funds, and your ability to carry out your proposed 
activities cost effectively.
    (9) Describe how the policy priorities of the Department are 
furthered by your proposed activities.
    (10) Describe how you will reach potential homebuyers through the 
use of services and materials that are accessible or visitable to all 
persons, including persons with disabilities (e.g., languages, formats, 
locations, distribution, use of minority media to attract those least 
likely to apply).
    (11) Describe how activities will benefit eligible homebuyers and 
your selection factors for participating homebuyers.
    (12) Describe how your proposed activities will yield long-term 
results and innovative strategies or ``best practices'' that can be 
readily disseminated to other organizations, communities, and/or State 
and local governments.
Rating Factor 4: Leveraging Resources (15 Points)
    This factor addresses your ability to secure other resources that 
can be combined with HUD's program resources to achieve the purposes of 
SHOP. HUD will consider the extent to which you document firm 
commitments of resources in the form of cash funding, in-kind 
contributions, or personnel from Federal, State, local, and private 
sources, who are jointly referred to as your leverage partners. HUD 
will also consider the extent that the applicant's proposed sweat-
equity requirements and other leveraged resources will serve to reduce 
costs to the homebuyers.
    Submission Requirements for Factor 4.
    (1) Provide a list of amounts and sources of all firm commitments 
of cash funding, in-kind contributions, or personnel from other 
Federal, State, local, and private sources which will be available to 
complete your project. Together with the grant funds, these commitments 
must be sufficient to develop not less than 30 units.
    (2) Provide copies of written evidence to support your list of firm 
commitments from the source of the commitment. There must be a written 
agreement to provide the resources. The written agreement may be 
contingent upon you receiving a grant award.
    (3) You must provide a description of the individual sweat-equity 
requirements of your program and how this contribution of labor will 
serve to reduce the costs of the home to the homebuyer. Reasonable 
accommodation must be allowed for persons with a variety of 
disabilities to participate in your program.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which your application reflects 
a coordinated, comprehensive approach to identifying community needs 
and addressing them on an ongoing basis. In evaluating this factor, HUD 
will consider:
    (1) The extent to which you demonstrate the support and 
participation of the community's

[[Page 9814]]

residents, organizations, businesses, and government in the design and 
implementation of the proposed activities.
    (2) The specific steps you will take to share information on 
solutions, outcomes, and best practices resulting from the activities, 
if funded.
    (3) The specific steps you have taken or will take to coordinate, 
through meetings, information networks, planning processes, or other 
mechanisms, your activities with other proposed or on-going activities 
in the community funded by Federal, State, local, or private sources.

Submission Requirements for Factor 5

    (1) Describe what role residents, community leaders and 
organizations, and government and private entities in the targeted 
community have had, or will have, in planning the activities described 
in your application and what role they will have in carrying out such 
activities.
    (2) Describe how you will share with others information on 
solutions and outcomes resulting from the activities, if funded.
    (3) Describe the specific steps you have taken or will take to 
become active in the community's Consolidated Plan and Analysis of 
Impediments to Fair Housing Choice process; or the community's Indian 
Housing Plan process; and to address, through these processes, the 
needs that are the focus of the proposed activities.
    (4) Describe the specific steps you have taken, or will take, to 
coordinate your activities with other proposed or on-going activities 
in the community funded by Federal, State, local, or private sources 
(through meetings, information networks, planning processes, or other 
mechanisms).

VI. Checklist for Application Submission

______Standard Form 424, Application for Federal Assistance
______Signed by organization eligible to receive funds
______ Evidence of Non-Profit status
Narrative Statement Addressing:
______ Factor 1--Capacity of the Applicant and Relevant Organizational 
Staff
______ Factor 2--Need/Extent of the Problem
______ Factor 3--Soundness of Approach
______ Factor 4--Leveraging Resources
______ Factor 5--Comprehensiveness and Coordination Forms, 
Certifications and Assurances:
______ SF 424A, Budget Information, Non-Construction Programs
______ SF 424B, Assurances--Non-Construction Programs
______ SF 424M, Federal Assistance Funding Matrix
______ HUD-50070, Certification for a Drug-Free Workplace
______ HUD-50071, Certification of Payment to Influence Federal 
Transactions
______ SF LLL, Disclosure of Lobbying Activity
______ HUD-2880, Applicant/Recipient Disclosure/Update Report
______ HUD-2990, Certification of Consistency with the EZ/EC Strategic 
Plan
______ HUD-2992, Certification Regarding Debarment and Suspension
______ Acknowledgement of Application Receipt

    Note: No kit will be made available. (See Section I for 
information on how to obtain standard forms.)

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    The provisions contained in Section 305(c) of the Multifamily 
Housing Property Disposition Reform Act of 1994, Environmental Review, 
implemented in the Environmental Review regulations at 24 CFR part 58, 
are applicable to properties assisted with SHOP funds. All SHOP 
assistance is subject to the National Environmental Policy Act of 1969 
and related federal environmental authorities. SHOP grant applicants 
are cautioned that no federal or non-federal funds or assistance which 
limits reasonable choices or could produce a significant adverse 
environmental impact may be committed to a project until all required 
environmental reviews and notifications have been completed by a unit 
of general local government, tribe or State and until HUD approves a 
recipient's request for release of funds under the environmental 
provisions contained in 24 CFR part 58.

VIII. Authority

    The funding made available under this program section of the 
SuperNOFA is authorized by section 11 of the Housing Opportunity 
Program Extension Act of 1996 (42 U.S.C. 12805 note) (the ``Extension 
Act''). No separate implementing regulations will be issued.

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[[Page 9815]]


     
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[[Page 9817]]



Funding Availability for the Youthbuild Program

Program Overview

    Purpose of the Program. The purpose of the Youthbuild program is to 
provide disadvantaged young adults with education, employment, and 
leadership skills.
    Available Funds. Approximately $40,000,000 is available for the 
Youthbuild Program.
    Eligible Applicants. Eligible applicants are public or private 
nonprofit agencies, State or local housing agencies or authorities, 
State or local units of general local government, or any entity 
eligible to provide education and employment training under other 
Federal employment training programs, as further defined in 24 CFR 
585.4.
    Application Deadline. April 30, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Your completed application (one original and 
two copies) is due on or before 12:00 midnight, Eastern time, on April 
30, 1999.
    See the General Section of this SuperNOFA for specific procedures 
that you must follow for the form of application submission (e.g., 
mailed applications, express mail, overnight delivery, or hand 
carried).
    Addresses for Submitting Applications. To HUD Headquarters. Submit 
your original completed application (that contains the original 
application and one copy), by hand or mail delivery, to: Processing and 
Control Branch, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW, 
Room 7255, Washington, D.C. 20410, Attention: Youthbuild Grant.
    To the Appropriate CPD Field Office. Submit the second copy of your 
application to the Community Planning and Development Division of the 
appropriate HUD Field Office for your jurisdiction.
    For Application Kits. For an application kit and any supplemental 
information please call the SuperNOFA Information Center at 1-800-HUD-
8929. Persons with hearing or speech impairments may call the Center's 
TTY number at 1-800-483-2209. An application kit also will be available 
on the Internet through the HUD web site at http://www.hud.gov. When 
requesting an application kit, please refer to Youthbuild and provide 
your name, address (including zip code), and telephone number 
(including area code).
    For Further Information. Phyllis Williams, Office of Economic 
Development and Empowerment Service in the Office of Community Planning 
and Development, Department of Housing and Urban Development, 451 
Seventh Street, SW, Room 7140, Washington, DC 20410, telephone (202) 
708-2035. Persons with speech or hearing impairments may call HUD's TTY 
number (202) 708-0770, or 1-800-877-8399 (the Federal Information Relay 
Service TTY). Other than the ``800'' number, these numbers are not 
toll-free.
    For Technical Assistance. Peter Twichell, YouthBuild USA, 58 Day 
Street, Somerville, MA 02144, telephone (617) 623-9900, ext. 1211, 
under contract with HUD to provide technical assistance in developing 
your application.

II. Amount Allocated

    Approximately $40,000,000 is available for the Youthbuild Program. 
The net available program funds will be divided between two categories 
of grants (as further specified in Section III(C)):
    1. $ 4,800,000--Grants for new applicants for up to $300,000; and
    2. $35,200,000--Grants for up to $700,000.

III. Program Description; Eligible Applicants; Eligible Activities; 
Eligible Participants

(A) Program Description

    The purposes of the Youthbuild Program are:
    (1) To provide economically-disadvantaged young adults with 
opportunities to obtain education, employment skills, and meaningful 
on-site construction work experience as a service to their communities 
and a means to achieve self-sufficiency;
    (2) To foster the development of leadership skills and commitment 
to community;
    (3) To expand the supply of permanent affordable housing for 
homeless and low- and very low-income persons by providing 
implementation grants for carrying out a Youthbuild program.
    (4) To provide disadvantaged young adults with meaningful on-site 
training experiences in housing construction and rehabilitation to 
enable them to provide a service to their communities by helping to 
meet the housing needs of homeless and low-income families;
    (5) To give, to the greatest extent feasible, job training, 
employment, contracting and other economic opportunities to low-income 
persons.

(B) Eligible Activities

    (1) Work and activities associated with the acquisition, 
rehabilitation or construction of the housing and related facilities to 
be used in the program;
    (2) Relocation payments and other assistance required to comply 
with 24 CFR 585.308;
    (3) Costs of ongoing training and technical assistance needs 
related to carrying out a Youthbuild program;
    (4) Education, job training, counseling, employment leadership 
development services and activities;
    (5) Wages, benefits, and need-based stipends for participants; and 
(6) Administrative costs--Youthbuild funds for these costs should not 
exceed 15 percent of the total amount of Youthbuild assistance, unless 
a higher amount is justified to support capacity development by a 
private nonprofit organization.
    Please refer to 24 CFR 585.305 for further details on eligible 
activities.

(C) Eligible Participants

    Participants in a Youthbuild program must be very low-income high 
school dropouts between the ages of 16 and 24, inclusive, at the time 
of enrollment. Up to 25 percent of participants may be above very low-
income or high school graduates (or equivalent), but must have 
educational needs that justify their participation in the program.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, as an applicant you must comply with the 
following requirements:

(A) Resources From Other Federal, State, Local or Private Entities

    You should use existing housing and homeless assistance programs 
administered by HUD or other Federal, State, local, or private and 
nonprofit housing programs as part of your Youthbuild program. In 
addition, you should use other non-Youthbuild funds available for 
vocational, adult, and bilingual education programs or for job training 
under the Job Training Partnership Act and the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996. The

[[Page 9818]]

selection process described in this Youthbuild Program section of the 
SuperNOFA provides for applicants to receive points where grant 
applications contain firm commitments from Federal, State, local, or 
private sources to provide resources to carry out Youthbuild 
activities.

(B) Grant Period

    You should expend funds awarded within 30 months of the effective 
date of the grant agreement, or such other period specified.

(C) Locational Limitations

    You may submit more than one application in the current competition 
if your program's participant recruitment and housing areas are in 
different jurisdictions. Each application you submit may only propose 
activities to carry out one Youthbuild program, i.e., to start a new 
Youthbuild program or to fund new classes of Youthbuild participants 
for an existing program.

(D) Youthbuild Program Components

    Youthbuild programs that receive assistance under this Youthbuild 
Program section of the SuperNOFA must contain the three components 
described in paragraphs (1), (2), and (4) below. Other activities 
described in paragraph (3) are optional.
    (1) Educational and job training services.
    (2) Leadership training, counseling, and other support activities.
    (3) Special activities such as entrepreneurial training, drivers' 
education, internships, programs for those with learning disabilities, 
and in-house staff training. (Optional)
    (4) On-site training through actual housing rehabilitation and/or 
construction work, including the provision of alternative training 
experiences that are necessary as reasonable accommodation for students 
with disabilities. Each program must be structured so that 50 percent 
of each participant's time is spent in on-site training.

(E) Desirable Elements of a Youthbuild Program

    You should document the extent to which HUD's policy priorities are 
furthered by the proposed activities. Such policy priority areas are:
    (1) Affirmatively furthering fair housing by promoting greater 
opportunities for housing choice for minorities and persons with 
disabilities;
    (2) Promoting healthy homes;
    (3) Providing opportunities for self-sufficiency, particularly for 
persons enrolled in welfare to work programs;
    (4) Providing educational and job training opportunities and 
linking programs to Americorps activities; and
    (5) Promoting welfare reform. Refer to 24 CFR 585.3 for a detailed 
description of program components.

V. Application Selection Process

    You, the applicant, must meet all of the applicable threshold 
requirements of Section II(B) of the General Section of the SuperNOFA. 
HUD will review each application and assign points in accordance with 
the selection factors described in this section. The maximum number of 
points is 102 (except for an application submitted by the City of 
Dallas, Texas, which would be eligible for a maximum of 104 points, in 
accordance with Rating Factor 3, paragraph (3), below). This maximum 
includes two EZ/EC bonus points as described in the General Section of 
the SuperNOFA.
    To afford applicants every opportunity to submit a ratable 
application, while at the same time ensure the fairness, integrity and 
timeliness of the selection process, the following application 
submission and selection procedures apply to this program:
    (A) Rating and Ranking. HUD will rate each eligible application 
based upon the rating factors described in Section V of this Youthbuild 
Program section of the SuperNOFA. Using the scores assigned, HUD will 
place the application in rank order within each category. HUD will 
select applications for funding in accordance with their rank order. An 
application will be eligible for EZ/EC bonus points and for the Housing 
Program Priority points in Rating Factor 3, paragraph (2), only if the 
application receives a combined score of at least 50 points for Rating 
Factor 1, Rating Factor 2, and Rating Factor 3, paragraph (1), under 
this Section V.
    If two or more applications are rated fundable, and have the same 
score, but there are insufficient funds to fund all of them, HUD will 
select the application(s) with the highest score for Rating Factor 3(1) 
under Soundness of Approach.
    (B) Initial Screening. During the period immediately following the 
application deadline, HUD will screen each application to determine 
eligibility. Applications will be rejected if they:
    (1) Are submitted by ineligible applicants, or
    (2) Propose a program for which significant activities are 
ineligible.
    (C) Categories of Grants.
    HUD will award Youthbuild implementation grants only to eligible 
applicants for the purpose of carrying out Youthbuild programs in 
accordance with subtitle D of title IV of the Act. HUD will select 
applications in a competition in accordance with the grant selection 
process described in Section V of this Youthbuild Program section of 
the SuperNOFA.
    HUD will make grants in two categories:
    (1) Grants for new applicants that have not previously received 
Youthbuild Implementation Grants and that have elected not to apply 
under category (2), below. These grants will be limited to $300,000, 
for a period of 18 months, with a maximum of 20 students.
    (2) Grants for up to $700,000 to implement a full range of 
Youthbuild activities for up to a 30-month period. HUD will award half 
the funding in this category to applicants that propose grants of 
$400,000 or less for up to 24 months. Applicants in category (1) will 
receive twelve percent of the funds available. Applicants in category 
(2) will receive the remainder of the funds available, which in turn 
will be split evenly between grants for up to and including $400,000, 
and grants over $400,000. If you have not received funding before, you 
may apply in either category. If you have received funding before for 
implementation, you may apply only in category (2).
    (D) Maximum Awards.
    Under the competition established by this Youthbuild Program 
section of the SuperNOFA, the maximum award for a Youthbuild grant is 
$700,000. HUD reserves the right to determine the maximum or minimum of 
any Youthbuild award per application, project, program or budget line 
item. HUD will not make amendments to awards under this competition 
that will increase previously approved grant amounts. In order to 
ensure reasonable geographic diversity, HUD will not give a CDBG 
entitlement jurisdiction more than $2.1 million in Youthbuild grants.
    (E) Potential Environmental Disqualification. HUD reserves the 
right to disqualify an application where one or more environmental 
thresholds are exceeded if HUD determines that it cannot conduct the 
environmental review and satisfactorily complete the review within the 
HUD review period. (See 24 CFR 585.307.)
    (F) Notification of Approval or Disapproval. HUD will notify you 
whether or not you have been selected for an award. If you are 
selected, HUD's notice to you of the amount of the grant award based on 
the approved

[[Page 9819]]

application will constitute HUD's preliminary approval, subject to 
execution of the grant agreement by HUD.
    (G) Economic Opportunities for Low and Very Low-Income Persons 
(Section 3). Section 3 of the Housing and Urban Development Act of 1968 
(12 U.S.C. 1701u) is applicable to Youthbuild implementation grant 
recipients. Please see Section II(E) of the General Section of the 
SuperNOFA.
    (H) Factors for Award Used to Evaluate and Rate Applications.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (30 Points)
    This factor addresses the qualification and experience of the 
applicant and participating parties to implement a successful young 
adult education and training program within a reasonable time period. 
HUD will review and evaluate the information provided documenting 
capability. In assigning points for this criterion, HUD will consider 
evidence in the application that demonstrates the following:
    (1) Experience in implementing a comprehensive, integrated, 
multidisciplinary program with the following components:
    (a) Young adult education and training programs, including programs 
for low-income persons from economically distressed neighborhoods.
    (b) Young adult leadership development training and related 
activities for young adults.
    (c) Young adult on-site training in housing construction or 
rehabilitation for the production of sound and affordable housing for 
the homeless and low-income families.
    (2) The extent to which you or participating parties have been 
successful in past education, training, and employment programs and 
activities, including Federally-funded Youthbuild programs. If you have 
received a Youthbuild grant, you must submit a performance narrative as 
outlined in the application package, and copies of your last two 
progress reports or, if applicable, a closeout report. In applying the 
rating criteria, HUD will take into consideration your performance 
(including meeting target dates and schedules) as reported.
    (3) The extent to which you, including your program director, 
principal staff, or participating parties have demonstrated past 
ability to leverage other resources to cover administrative, 
educational, and training costs.
    (4) Staff capacity should address the extent to which you 
demonstrate that your proposed Staff and Program Manager possess the 
background, experience, and capacity to conduct the proposed project, 
as evidenced by recent work experience in managing projects of the same 
or similar size, dollar amount, and types of activities as those 
proposed in the application.
Rating Factor 2: Need/Extent of the Problem (15 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed program activities and an indication of the 
urgency of meeting the need in the target area. Documentation of need 
should address the extent to which you document a critical level of 
need for the proposed activities in the area where activities will be 
implemented. The documentation must apply to the targeted area rather 
than the entire locality. If the target area is an entire locality or 
State, then documenting need at this level is appropriate.
    Your documentation of need should demonstrate the extent and 
urgency of the problem the proposed activities address. To the extent 
that your community's Consolidated Plan or Analysis of Impediments to 
Fair Housing Choice (AI) identifies the level of the problem and the 
urgency in meeting the need, you should include references to these 
documents in your response. HUD will review more favorably those 
applicants that use these documents to identify need, when applicable. 
Examples of data you might use to demonstrate need include, but are not 
limited to, economic and demographic data relevant to the target area, 
including poverty and unemployment rates; levels of homelessness; 
extent of drug usage and crime statistics; lead poisoning rates; 
housing market data available from HUD or other data sources including 
the Public Housing Authorities' Five Year Comprehensive Plan, State or 
local Welfare Department's Welfare Reform Plan (including, where 
applicable, the Welfare to Work Plan Addendum); and/or lack of other 
Federal, State, or local funding that could be or are used to address 
the problem HUD program funds are designed to address. If the proposed 
activity is not covered under the scope of the Consolidated Plan and 
AI, you should indicate such, and use other sound data sources to 
identify the level of need and the urgency in meeting the need. Types 
of other sources include, but are not limited to, Census reports, 
Continuum of Care gaps analysis, law enforcement agency crime reports, 
Public Housing Authorities' Five Year Comprehensive Plan, etc.
Rating Factor 3: Soundness of Approach (40 Points)
    (1) (30 points) HUD will consider the overall quality and 
feasibility of the proposed program as measured by the principles and 
goals of the proposed program; whether proposed program activities meet 
the overall objectives of the Youthbuild program; whether the proposed 
program activities will be accomplished within the projected time 
frame; whether the proposed program activities are comprehensive and 
integrated; and the potential for success of the proposed program. 
Areas HUD will consider in evaluating the overall quality of the 
proposed program are:
    (a) Outreach, recruitment and selection activities including:
    (i) Specific steps you will take to attract potential eligible 
participants who are unlikely to be aware of this program (because of 
race, ethnicity, sex or disability) and selection strategies;
    (ii) Special outreach efforts you will make to recruit eligible 
young women, young women with dependent children, and persons receiving 
public assistance; and
    (iii) Recruitment arrangements you have made with public agencies, 
courts, homeless shelters, local school systems, local workforce 
development systems, community-based organizations, etc.
    (b) Educational and job training services and activities including:
    (i) The types of instructional services you will provide;
    (ii) The number and qualification of program instructors and ratio 
of instructors to participants;
    (iii) Realistic scheduling plan for classroom and on-the-job 
training; and
    (iv) Reasonable payments of participants' wages, stipends, and 
incentives.
    (c) Leadership development, including the leadership development 
training you will offer to participants, and including the strategies, 
activities, and plans to build group cohesion and peer support.
    (d) Support services, including documentation of counseling and 
referral services to be offered to participants, including the type of 
counseling, social services, and/or need-based stipends you will 
provide (supported by letters of commitments from providers).
    (e) On-site training, including:
    (i) The housing construction or rehabilitation activities 
participants will undertake at the site(s) to be used for the on-site 
training component of the program;
    (ii) The qualification and number of on-site supervisors;

[[Page 9820]]

    (iii) The ratio of trainers to students;
    (iv) The number of students per site; and
    (v) The amounts, reasonable wages, and/or stipends you will pay to 
participants during on-site work.
    (f) Job placement assistance, including your commitments, 
strategies, and procedures for:
    (i) Participant placement in meaningful employment, enrollment in 
postsecondary education programs, job development, starting business 
enterprises, or other opportunities leading to economic independence; 
and
    (ii) Follow-up assistance and support activities to program 
graduates.
    (g) Americorps support or participation as evidenced by approval of 
Americorps or appropriate State agency.
    (2) (10 points) HUD will assign Housing Program Priority Points to 
all applications that contain evidence that housing resources from 
other Federal, State, local, or private sources that are available to 
cover the cost, in full, for the following housing activities for the 
proposed Youthbuild program: acquisition, architectural and engineering 
fees, construction, and rehabilitation. It also is imperative that your 
proposed housing sites provide quality training. The number of units 
you propose to rehabilitate or construct is secondary in rating this 
factor. Applications that do not include proper documentation of 
commitment of non-Youthbuild resources or propose to use Youthbuild 
grant funds, in whole or in part, for any one of the housing activities 
listed above will not be entitled to the full priority points. HUD will 
not use housing resources in evaluating the Leveraging Resources 
factor.
    HUD considers that the quality of the training to be provided is 
more important than the number of units per se, in evaluating housing 
sites proposed for Youthbuild training.
    (3) HUD will award up to two (2) additional points to any 
application submitted by the City of Dallas, Texas, to the extent this 
subfactor is addressed. Due to an order of the U.S. District Court for 
the Northern District of Texas, Dallas Division, with respect to any 
application submitted by the City of Dallas, Texas, HUD will consider 
the extent to which the application's proposed activities will 
eradicate the vestiges of racial segregation in the Dallas Housing 
Authority's programs consistent with the Court's order.
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses the extent to which firm commitment of 
resources are obtained from Federal, State, local, and private and 
nonprofit sources other than the applicant. In assigning points for 
this criterion, HUD will consider the level of nonhousing resources 
obtained for cash or in-kind contribution to cover the following kinds 
of areas:
    (1) Social services (i.e., counseling and training);
    (2) Use of existing vocational, adult, and bilingual educational 
courses;
    (3) Donation of labor, resource personnel, supplies, materials, 
classroom, and/or meeting space;
    (4) Other commitments.
    In rating this element, HUD will consider only those contributions 
for which current firm commitments have been provided. HUD will 
evaluate the level of nonhousing resources proposed based on their 
importance to the total program.
Rating Factor 5: Comprehensiveness and Coordination (5 Points)
    This factor addresses the extent to which your program reflects a 
coordinated, community-based process of identifying needs and building 
a system to address the needs by using available HUD funding resources 
and other resources available to the community.
    In evaluating this factor, HUD will consider the extent to which 
you demonstrate that you have:
    (1) Coordinated your proposed activities with those of other groups 
or organizations in order to best complement, support, and coordinate 
all known activities, and the specific steps you will take to share 
information on solutions and outcomes with others. You should describe 
any written agreements, memoranda of understanding in place, or those 
that will be in place after award.
    (2) Taken or will take specific steps to become active in the 
community's Consolidated Planning process (including the Analysis of 
Impediments to Fair Housing Choice) established to identify and address 
a need/problem that is related to the activities you propose.
    (3) Taken or will take specific steps to develop linkages to 
coordinate comprehensive solutions through meetings, information 
networks, planning processes, or other mechanisms with:
    (a) Other HUD funded projects/activities outside the scope of those 
covered by the Consolidated Plan; and
    (b) Other activities funded by HUD, Federal, State, or local 
sources, including those proposed or on-going in the community(s) 
served.

VI. Application Submission Requirements

    You must complete and submit your application for a Youthbuild 
grant in accordance with the instructions in the FY 1999 Youthbuild 
application kit. The application kit will request information in 
sufficient detail for HUD to determine whether your proposed activities 
are feasible and meet all the requirements of applicable statutes and 
regulations. The application kit requires you to describe: your and 
participating parties' experiences in young adult and housing programs; 
your proposed Youthbuild program; the other public and private 
resources to be used for the program, including other housing resources 
(including documentation of these). In addition, you must submit a 
schedule for the program, budgets, identification of housing sites, and 
demonstration of site access. The application kit also contains 
necessary certifications regarding Federal requirements. In addition, 
you must provide the required certification that the proposed 
activities are consistent with the HUD-approved Consolidated Plan in 
accordance with 24 CFR part 91. You should refer to the Youthbuild 
application kit for further instructions and take into account the 
uniform guidebook available to all applicants.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    Environmental procedures apply to HUD approval of grants when you 
propose to use Youthbuild funds to cover any costs for the lease, 
acquisition, rehabilitation, or new construction of real property 
proposed for housing project development. Environmental procedures do 
not apply to HUD approval of your application when you propose to use 
your Youthbuild funds solely to cover costs for classroom and/or on-
the-job construction training and support services.
    If you propose to use your Youthbuild funds to cover any costs of 
the lease, acquisition, rehabilitation, or new construction of real 
property, you must submit all relevant environmental information in 
your application to support HUD decisionmaking in accordance with the 
environmental

[[Page 9821]]

procedures and standards set forth in 24 CFR 585.307.

IX. Authority

    This program is authorized under subtitle D of title IV of the 
Cranston-Gonzalez National Affordable Housing Act (the Act), as added 
by section 164 of the Housing and Community Development Act of 1992 
(Pub. L. 102-550, 106 Stat. 3723, 42 U.S.C. 12899). The Youthbuild 
Program regulations are found in 24 CFR part 585.

BILLING CODE 4210-32-P

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Notices  

[[Page 9823]]


     
    [GRAPHIC] [TIFF OMITTED] TN26FE99.038
    

BILLING CODE 4210-32-C

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

[[Page 9825]]



Funding Availability for Continuum of Care Homeless Assistance 
Programs--Supportive Housing Program (SHP), Shelter Plus Care 
(S+C), Section 8 Moderate Rehabilitation Single Room Occupancy 
Program for Homeless Individuals (SRO)

Program Overview

    Purpose of the Programs. The purpose of the Continuum of Care 
Homeless Assistance Programs is to fund projects that will fill gaps in 
locally developed Continuum of Care systems to assist homeless persons 
move to self-sufficiency and permanent housing.
    Available Funds. Approximately $750 million.
    Eligible Applicants. The chart in the Appendix to this program 
section of this SuperNOFA identifies the eligible applicants for each 
of the three programs under the Continuum of Care.
    Application Deadline. June 2, 1999.
    Match. Yes.

Additional Information

    If you are interested in applying for funding under any of the 
Continuum of Care Homeless Assistance programs, please review carefully 
the General Section of the SuperNOFA and the following additional 
information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Your completed application (an original 
containing the signed documentation and two copies) is due on or before 
12:00 midnight, Eastern time, on June 2, 1999 to the addresses shown 
below. See the General Section of this SuperNOFA for specific 
procedures that you must follow for the form of application submissions 
(e.g., mailed applications, express mail, overnight delivery, or hand 
carried).
    Addresses for Submitting Applications. To HUD Headquarters. Submit 
your original completed application (the application with the original 
signed documentation) to: Room 7270, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW, Washington, DC 20410, Attention: Continuum of Care 
Programs.
    To the Appropriate CPD Field Office. Also submit two copies of your 
completed application to the Community Planning and Development 
Division of the appropriate HUD Field Office for your jurisdiction. The 
HUD Field Office must receive the two copies of your application by the 
deadline date as well. The determination, however, that your 
application was received on time will be made solely on receipt of the 
application at HUD Headquarters in Washington. Reviews will be based 
upon the contents of the application submitted to HUD Headquarters.
    For Application Kits. For an application kit, please call the 
SuperNOFA Information Center at 1-800-HUD-8929 (voice) or 1-800-483-
2209 (TTY), or you may download an application by Internet at http://
www.HUD.gov.
    For Further Information. For answers to your questions, you may 
call the HUD Field Office serving your area, at the telephone number 
shown in the application kit for this program, or you may contact the 
Community Connections Information Center at 1-800-998-9999 (voice) or 
1-800-483-2209 (TTY) or by Internet at: http://www.comcon.org/
ccprog.html.
    For Technical Assistance. Before the application deadline, HUD 
staff will be available to provide you with general guidance. HUD 
staff, however, cannot provide you with guidance in actually preparing 
your application. HUD Field Office staff also will be available to help 
you identify organizations in your community that are involved in 
developing the Continuum of Care system and, in the case of renewals, 
to determine the HUD final year amount (e.g., leasing, supportive 
services and operations for SHP, and rental assistance for S+C). 
Following conditional selection of applications, HUD staff will be 
available to assist selected applicants in clarifying or confirming 
information that is a prerequisite to the offer of a grant agreement or 
Annual Contributions Contract by HUD. However, between the application 
deadline and the announcement of conditional selections, HUD will 
accept no information that would improve the substantive quality of 
your application pertinent to HUD's funding decision.

II. Amount Allocated

    Approximately $750 million is available for this competition in FY 
1999. Any unobligated funds from previous competitions or additional 
funds that may become available as a result of deobligations or 
recaptures from previous awards may be used in addition to 1999 
appropriations to fund applications submitted in response to this 
program section of this SuperNOFA. The funds available for the 
Continuum of Care program can be used under any of three programs that 
can assist in creating community systems for combating homelessness. 
The three programs are:
    (1) Supportive Housing;
    (2) Shelter Plus Care; and
    (3) Section 8 Moderate Rehabilitation for Single Room Occupancy 
Dwellings for Homeless Individuals.
    The chart in the Appendix to this program section of this SuperNOFA 
summarizes key aspects of the programs, and also provides the citations 
for the statutes and regulations that authorize these programs. The 
regulations listed in the chart provide more detailed descriptions of 
each of the programs.
    As in previous funding availability announcements for the Continuum 
of Care Homeless Assistance Programs, HUD will not specify amounts for 
each of the three programs this year. Instead, the distribution of 
funds among the three programs will depend largely on locally 
determined priorities and overall demand. Local priorities 
notwithstanding, due to recent Congressional action, not less than 30 
percent of this year's total homeless assistance appropriation of $975 
million must be used for permanent housing projects. Pursuant to the 
provisions of the FY 1998 NOFA, up to $60 million of the FY 1999 
appropriation may be made available under the FY 1998 NOFA. Permanent 
housing projects funded with that $60 million will be counted toward 
the 30 percent requirement. (See Sections V(A)(4)(b) and V(A)(7) of 
this program section of the SuperNOFA for additional information.)

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    (1) Developing Continuum of Care Systems. The purpose of the 
Continuum of Care Homeless Assistance Programs is to fund projects that 
will fill gaps in locally developed Continuum of Care systems to assist 
homeless persons move to self-sufficiency and permanent housing. The 
process of developing a Continuum of Care system to assist homeless 
persons is part of the community's larger effort of developing a 
Consolidated Plan. For a community to successfully address its often 
complex and interrelated problems, including homelessness, the 
community must marshall its varied resources--community and economic 
development resources, social service resources, housing and homeless 
assistance resources--and use them in a coordinated and effective 
manner. The Consolidated Plan, including the Analysis of Impediments to 
Fair Housing Choice, serves as the vehicle for a community to 
comprehensively

[[Page 9826]]

identify each of its needs and to coordinate a plan of action for 
addressing them.
    A Continuum of Care system consists of four basic components:
    (a) A system of outreach and assessment for determining the needs 
and conditions of an individual or family who is homeless;
    (b) Emergency shelters with appropriate supportive services to help 
ensure that homeless individuals and families receive adequate 
emergency shelter and referral to necessary service providers or 
housing finders;
    (c) Transitional housing with appropriate supportive services to 
help those homeless individuals and families who are not prepared to 
make the transition to permanent housing and independent living; and
    (d) Permanent housing, or permanent supportive housing, to help 
meet the long-term needs of homeless individuals and families.
    A Continuum of Care system is developed through a community-wide or 
region-wide process involving nonprofit organizations (including those 
representing persons with disabilities), government agencies, other 
homeless providers, housing developers and service providers, private 
foundations, neighborhood groups, and homeless or formerly homeless 
persons. A Continuum of Care system should address the specific needs 
of each homeless subpopulation: the jobless, veterans, persons with 
serious mental illnesses, persons with substance abuse issues, persons 
with HIV/AIDS, persons with multiple diagnoses, victims of domestic 
violence, youth, and any others. The term ``multiple diagnoses'' may 
include diagnoses of multiple physical disabilities or multiple mental 
disabilities or a combination of these two types.
    As an applicant, the community process you use in developing a 
Continuum of Care system should include interested veteran service 
organizations. To ensure that the Continuum of Care system addresses 
the needs of homeless veterans, it is particularly important that you 
involve veteran service organizations with specific experience in 
serving homeless veterans. In addition, given the large number of 
youths aging out of the Foster Care system each year, you should seek 
to include persons knowledgeable on this issue in the planning process 
and ensure that your continuum of Care system adequately addresses this 
need.
    Your application will be given a high score under the Continuum of 
Care scoring factors if the application demonstrates the achievement of 
two basic goals:
     That you have provided maximum participation by non-profit 
providers of housing and services; homeless and formerly homeless 
persons; state and local governments and agencies; veteran service 
organizations; organizations representing persons with disabilities; 
the private sector; housing developers; foundations and other community 
organizations.
     That you have created, maintained and built upon a 
community-wide inventory of housing and services for homeless families 
and individuals; identified the full spectrum of needs of homeless 
families and individuals; and coordinated efforts to obtain resources, 
particularly resources sought through this program section of the 
SuperNOFA, to fill gaps between the current inventory and existing 
needs. This coordinated effort must appropriately address all aspects 
of the continuum, especially permanent housing.
    In deciding the geographic area you will cover in your Continuum of 
Care strategy, you should be aware that the single most important 
factor in being awarded funding under this competition will be the 
strength of your Continuum of Care strategy when measured against the 
Continuum of Care rating factors described in this SuperNOFA. When you 
determine what jurisdictions to include in your Continuum of Care 
strategy area, include only those jurisdictions that are involved in 
the development and implementation of the Continuum of Care strategy.
    The more jurisdictions you include in the Continuum of Care 
strategy area, the larger the pro rata need share that will be 
allocated to the strategy area (as described in Section V(A)(4) of this 
program section of the SuperNOFA). However, it would be a mistake to 
include jurisdictions that are not fully involved in the development 
and implementation of the Continuum of Care strategy since this would 
adversely affect the Continuum of Care score. If you are a rural 
county, you may wish to consider working with larger groups of 
contiguous counties to develop a region-wide or multi-county Continuum 
of Care strategy covering the combined service areas of these counties.
    Since the basic concept of a Continuum of Care strategy is to 
create a single, coordinated, inclusive homeless assistance system for 
an area, the areas covered by Continuum of Care strategies should not 
overlap. If your Continuum of Care strategy geographically overlaps to 
the extent that they are essentially competing with each other, 
projects in the applications/Continuum of Care that receive the highest 
score out of the possible 60 points for Continuum of Care will be 
eligible for up to 40 points under Need. Projects in the competing 
applications/Continuum of Care with the less effective Continuum of 
Care strategies will be eligible for only 10 points under Need. In no 
case will the same geographical area be used more than one time in 
assigning Need points. The local HUD Field Office can help you 
determine if any of the areas proposed for inclusion by your Continuum 
of Care system is also likely to be claimed under another Continuum of 
Care system in this competition.
    (2) Prioritizing. HUD's policy is that decisions about priority are 
best made through a locally-driven process and are key to the ultimate 
goal of reducing homelessness. Again this year, you must list all 
projects proposed for funding under this program section of the 
SuperNOFA in priority order from the highest priority to the lowest. 
Generally, this priority order will mean, for example, that if HUD has 
funds available only to award 8 of 10 proposed projects, then it will 
award funding to the first eight eligible projects listed, except as 
may be necessary to achieve the new 30 percent overall permanent 
housing requirement--in which case higher priority non-permanent 
housing projects may be skipped over in order to fund lower priority 
permanent housing projects. You should give non-profit organizations an 
opportunity to participate in establishing these priorities.
    In order to promote permanent housing, a special incentive is being 
provided to continuum of care systems that place an eligible, new 
permanent housing project in the number one priority slot on the 
priority list. See Section V(A)(4)(b) of this program section of the 
SuperNOFA for a description of this incentive.
    HUD will use this priority list to award up to 40 points per 
project under the ``Need'' scoring factors. Higher priority projects 
will receive more points under Need than lower priority projects. A 
project priority chart is included in the application kit and you 
should complete and submit it. If you do not submit clear project 
priority designations for the continuum, or if HUD, at its sole 
discretion, cannot determine priority designations, then HUD will give 
all projects the lowest score for Need.
    Project renewals. If your Supportive Housing, Supportive Housing 
Demonstration Program, SAFAH, or Shelter Plus Care grants will be 
expiring in calendar year 2000, you must apply

[[Page 9827]]

under this Continuum of Care program section of the SuperNOFA to get 
continued funding.
    Your local needs analysis process must consider the need to 
continue funding for projects expiring in calendar year 2000, and you 
must assign a priority to those projects requesting renewal. HUD will 
not fund renewals out of order on the priority list except as may be 
necessary to achieve the new 30 percent overall permanent housing 
requirement. HUD reserves the authority to use FY 2000 funds, if 
available, to conditionally select lower-rated eligible SHP renewal 
projects that are assigned 40 need points in continuum of care systems 
that would not otherwise receive funding.
    Regardless of the priority assigned to expiring projects, you 
should fully consider how persons currently being served by those 
projects will continue to be served, and address this issue in your 
gaps analysis. In previous competitions, some renewal projects that 
were not assigned top priority by a locality did not receive funding. 
To the extent your community desires to have such projects renewed, you 
should give them the top priorities on the priority projects listing in 
the application. Since renewal projects receive no special 
consideration during the review, it is important that they meet minimum 
project eligibility, capacity, and quality standards identified in this 
program section of the SuperNOFA or they will be rejected.
    For the renewal of a Supportive Housing Program project, Supportive 
Housing Demonstration Program project or SAFAH project, you may request 
funding for one (1), two (2) or three (3) years. The amount of this 
request can be up to the total of HUD grant funds for leasing, 
operations, and supportive services approved for the final year of the 
expiring grant's term. For the renewal of a Shelter Plus Care project, 
the grant term is fixed at five (5) years as required by statute. You 
may request up to the amount determined by multiplying the number of 
units under lease at the time of application for renewal funding under 
this SuperNOFA by the applicable current Fair Market Rent(s) by 60 
months. While full funding of existing grants may be requested, there 
is no guarantee that the entire amount will be awarded. As is the case 
with SHP, HUD will recapture Shelter Plus Care grant funds remaining 
unspent at the end of the original grant period when it renews a grant.
    This program section of the SuperNOFA is not applicable to the 
renewal of funding under the SRO program. For further guidance on SRO 
renewals, please contact your local HUD Field Office.
    As a project applicant, you are eligible to apply for renewal of a 
grant only if you have executed a grant agreement for the project 
directly with HUD. If you are a project sponsor or subrecipient who has 
not signed such an agreement, you are not eligible to apply for renewal 
of these projects. HUD will reject applications for renewal submitted 
by ineligible applicants. If you have questions about your eligibility 
to apply for project renewal, contact the local HUD field office. To be 
considered an applicant when applying as part of a consolidated 
application, you must submit an originally signed HUD Form SF-424 and 
the necessary certifications and assurances.

(B) Eligible Applicants

    See Appendix.

(C) Eligible Activities

    See Appendix.

IV. Program Requirements

(A) Statutory and Regulatory Requirements

    (1) SRO Program. As an applicant, you need to know that the 
following limitations apply to the Section 8 SRO program:
     Under section 8(e)(2) of the United States Housing Act of 
1937, no single project may contain more than 100 assisted units;
     Under 24 CFR 882.802, applicants that are private 
nonprofit organizations must subcontract with a Public Housing 
Authority to administer the SRO assistance;
     Under section 8(e)(2) of the United States Housing Act of 
1937 and 24 CFR 882.802, rehabilitation must involve a minimum 
expenditure of $3000 for a unit, including its prorated share of work 
to be accomplished on common areas or systems, to upgrade conditions to 
comply with the Housing Quality Standards.
     Under section 441(e) of the McKinney Act and 24 CFR 
882.805(d)(1), HUD publishes the SRO per unit rehabilitation cost limit 
each year to take into account changes in construction costs. This cost 
limitation applies to rehabilitation that is compensated for in a 
Housing Assistance Payments Contract. For purposes of Fiscal Year 1999 
funding, the cost limitation is raised from $17,200 to $17,500 per unit 
to take into account increases in construction costs during the past 
12-month period.
    (2) Shelter Plus Care/Section 8 SRO Component. With regard to the 
SRO component of the Shelter Plus Care program, if you are a State or a 
unit of general local government, you must subcontract with a Public 
Housing Authority to administer the Shelter Plus Care assistance. Also 
with regard to this component, no single project may contain more than 
100 units.

(B) Match

    You must match Supportive Housing Program funds provided for 
acquisition, rehabilitation, and new construction with an equal amount 
of funds from other sources. In addition, in this year's competition, 
you must match by 25% all funding for supportive services. The cash 
source may be you, the Federal Government, State and local governments, 
or private resources. You must match rental assistance provided through 
the Shelter Plus Care Program in the aggregate with supportive 
services.

(C) Linking Supportive Housing Programs and Americorps

    Applicants for the Supportive Housing Program are encouraged to 
link their proposed projects with AmeriCorps, a national service 
program engaging thousands of Americans on a full or part-time basis to 
help communities address their toughest challenges, while earning 
support for college, graduate school, or job training. For information 
about AmeriCorps SHP partnerships, call the Corporation for National 
Service at (202) 606-5000, extension 486.

(D) Timeliness Standards

    As an applicant, you are expected to initiate your approved 
projects promptly. HUD may take action if you fail to satisfy certain 
timeliness standards:
    (1) Supportive Housing Program.
     HUD will deobligate SHP funds if you have not demonstrated 
site control within one (1) year after you were initially notified of 
the grant award, as provided in 24 CFR 583.320(a), subject to the 
exceptions noted in that regulation.
     Except where HUD finds that delay was due to factors 
beyond your control, HUD may deobligate SHP funds if you do not meet 
the following additional timeliness standards:

--You must begin construction activities within eighteen (18) months 
after initial notification of your grant award and complete them within 
thirty-six (36) months after that notification.
--For activities that cannot begin until construction activities are 
completed, such as supportive service or

[[Page 9828]]

operating activities that will be conducted within the building being 
rehabilitated or newly constructed, you must begin these activities 
within three (3) months after you complete construction.
--You must begin all activities that may proceed independent of 
construction activities within twelve (12) months after initial 
notification of your grant award.

    (2) Shelter Plus Care Program Components Except SRO Component. 
Except where HUD finds that delay was due to factors beyond your 
control, HUD will deobligate S+C funds if you do not meet the following 
timeliness standards:
     For Tenant-based Rental Assistance, for Sponsor-based 
Rental Assistance, and for Project-based Rental Assistance without 
rehabilitation, you must start the rental assistance within twelve (12) 
months of the initial announcement of the grant award.
     For Project-based Rental Assistance with rehabilitation, 
you must complete the rehabilitation within twelve (12) months of 
initial notification of the grant award.
    (3) SRO Program and SRO Component of the Shelter Plus Care Program.
    For projects carried out under the SRO program and the SRO 
component of the S+C program, the rehabilitation work must be completed 
and the Housing Assistance Payments contract executed within twelve 
(12) months of execution of the Annual Contributions Contract. HUD may 
reduce the number of units or the amount of the annual contribution 
commitment if, in HUD's determination, the Public Housing Authority 
fails to demonstrate a good faith effort to adhere to this schedule.

V. Application Selection Process

(A) Review, Rating and Conditional Selection

    HUD will use the same review, rating, and conditional selection 
process for all three programs (S+C, SRO, and SHP). The standard 
factors for award identified in the General Section of this SuperNOFA 
have been modified in this program section as described below. Only the 
factors described in this program section--Continuum of Care and Need--
will be used to assign points. To review and rate applications, HUD may 
establish panels.To obtain certain expertise and outside points of 
view, including views from other Federal agencies, these panels may 
include persons not currently employed by HUD. Two types of reviews 
will be conducted. Paragraphs (1) and (2) below describe threshold 
reviews and paragraphs (3) and (4) describe factors--Continuum of Care 
and Need--that will be used to assign points. Up to 104 points 
(including bonus points and points for the court-ordered consideration 
described in Section III(C) (1) and (2) of the General Section of the 
SuperNOFA) will be assigned using these factors.
    (1) Applicant and sponsor eligibility and capacity. HUD will review 
your capacity as the applicant and project sponsor to ensure the 
eligibility and capacity standards in this section are met. If HUD 
determines these standards are not met, the project will be rejected 
from the competition. The eligibility and capacity standards are:
     You must be eligible to apply for the specific program;
     You must demonstrate ability to carry out the project(s). 
With respect to each proposed project, this means that in addition to 
knowledge of and experience with homelessness in general, the 
organization carrying out the project, its employees, or its partners, 
must have the necessary experience and knowledge to carry out the 
specific activities proposed, such as housing development, housing 
management, and service delivery;
     If you or the project sponsors are current or past 
recipients of assistance under a HUD McKinney Act program or the HUD 
Single Family Property Disposition Homeless Program, there must have 
been no delay in implementing projects exceeding applicable program 
timeliness standards that HUD determines is within your or the project 
sponsor's control, unresolved HUD finding, or outstanding audit finding 
of a material nature regarding the administration of HUD McKinney Act 
programs or the HUD Single Family Property Disposition Homeless 
Program; and
     You and the project sponsors must be in compliance with 
applicable civil rights laws and Executive Orders, and must meet the 
threshold requirements of Section II(B) of the General Section of the 
SuperNOFA.
    (2) Project eligibility and quality. HUD will review projects to 
determine if they meet the following eligibility and quality standards. 
If HUD determines the following standards are not met by a specific 
project or activity, the project or activity will be rejected from the 
competition.
     The population to be served must meet the eligibility 
requirements of the specific program, as described in the application 
instructions;
     At least one of the activity(ies) for which assistance is 
requested must be eligible under the specific program, as described in 
the program regulations;
     The housing and services proposed must be appropriate to 
the needs of the persons to be served. HUD may find a project to be 
inappropriate if:

--The type and scale of the housing or services clearly does not fit 
the needs of the proposed participants (e.g., housing homeless families 
with children in the same space as homeless individuals, or separating 
members of the same family, without an acceptable rationale provided);
--Participant safety is not ensured;
--The housing or services are clearly designed to principally meet 
emergency needs rather than helping participants achieve self-
sufficiency;
--Transportation and community amenities are not available and 
accessible; or
--Housing accessibility for persons with disabilities is not provided 
as required by applicable laws;

     The project must be cost-effective in HUD's opinion, 
including costs associated with construction, operations, and 
administration, with such costs not deviating substantially from the 
norm in that locale for the type of structure or kind of activity;
     Supportive services only projects, and all others, must 
show how participants will be helped to access permanent housing and 
achieve self-sufficiency;
     For the Section 8 SRO program, at least 25 percent of the 
units to be assisted at any one site must be vacant at the time of 
application; and
     For those projects proposed under the SHP innovative 
category: Whether or not a project is considered innovative will be 
determined on the basis that the particular approach proposed is new 
within its geographic area, and can be replicated.
    (3) Continuum of Care. HUD will award up to 60 points as follows:
    (a) Process and Strategy. HUD will award up to 30 points based on 
the extent to which your application demonstrates:
     The existence of a coordinated and inclusive community 
process, including organizational structure(s), for developing and 
implementing a Continuum of Care strategy which includes nonprofit 
organizations (such as veterans service organizations, organizations 
representing persons with disabilities, and other groups serving 
homeless persons), State and local governmental agencies, other 
homeless providers, housing developers and service providers, private 
foundations, local businesses and the banking

[[Page 9829]]

community, neighborhood groups, and homeless or formerly homeless 
persons; and
     That a well-defined and comprehensive strategy has been 
developed which addresses the components of a Continuum of Care system 
(i.e., outreach, intake, and assessment; emergency shelter; 
transitional housing; permanent and permanent supportive housing) and 
that strategy has been designed to serve all homeless subpopulations in 
the community (e.g., seriously mentally ill, persons with multiple 
diagnoses, veterans, persons with HIV/AIDS), including those persons 
living in emergency shelters, supportive housing for homeless persons, 
or in places not designed for, or ordinarily used as, a regular 
sleeping accommodation for human beings.
    (b) Gaps and Priorities. HUD will award up to 20 points based on 
the extent to which your application:
     Describes the gap analysis performed, uses reliable 
information and sources that are presented completely and accurately, 
and establishes the relative priority of homeless needs identified in 
the Continuum of Care strategy; and
     Proposes projects that are consistent with the priority 
analysis described in the Continuum of Care strategy, describes a fair 
project selection process, explains how gaps identified through the 
analysis are being addressed, and correctly completes the priority 
chart.
    When HUD reviews a community's Continuum of Care to determine the 
points to assign, HUD will consider whether the community took its 
renewal needs into account in preparing its project priority list. (See 
discussion on renewals in Section III(A)(2) of this NOFA.)
    (c) Supplemental Resources. HUD will award up to 10 points based on 
the extent to which your application demonstrates leveraging of funds 
requested under this program section of the SuperNOFA with other 
resources, including private, other public, and mainstream services and 
housing programs.
    (d) EZ/EC bonus points. As provided for in Section III(C)(1) of the 
General Section of this SuperNOFA, HUD will add a bonus of up to 2 
points to the Continuum of Care score when: (1) at least one proposed 
homeless assistance project will be located within the boundaries and/
or will principally serve the residents of a high performing federal 
Empowerment Zone, Enterprise Community or Enhanced Enterprise Community 
(collectively ``EZ/EC''); and (2) if priority placement will be given 
by the project(s) to homeless persons living on the streets or in 
shelters within the EZ/EC, or whose last known address was within the 
high performing EZ/EC. In addition, and in order for a Continuum of 
Care system to receive any of the bonus points, the applicant must 
specifically state how it meets the requirements for the two EZ/EC 
bonus points, and provide a narrative describing the extent of the 
linkages and coordination between proposed projects and the EZ/EC. 
Examples of such coordination include having common board or committee 
membership (EZ/EC and Continuum of Care), and having EZ/EC resources 
directed toward Continuum of Care activities. The greater the extent of 
EZ/EC involvement in and coordination with the implementation strategy 
for the Continuum of Care system and projects, the greater the 
likelihood that bonus points will be awarded.
    (e) Court-ordered consideration. Section III(C)(2) of the General 
Section is applicable to this program.
    (4) Need. HUD will award up to 40 points for need. There is a 
three-step approach to determining the need scores to be awarded to 
projects:
    (a) Determining relative need: To determine the homeless assistance 
need of a particular jurisdiction, HUD will use nationally available 
data, including the following factors as used in the Emergency Shelter 
Grants program: data on poverty, housing overcrowding, population, age 
of housing, and growth lag. Applying those factors to a particular 
jurisdiction provides an estimate of the relative need index for that 
jurisdiction compared to other jurisdictions applying for assistance 
under this program section of the SuperNOFA.
    (b) Applying relative need: HUD will then apply that relative need 
index to the total amount of funding estimated to be available under 
this program section of the SuperNOFA to determine a jurisdiction's pro 
rata need. However, in order to promote permanent housing for the 
homeless, if a continuum of care's number one priority project 
qualifies as an eligible, new permanent housing project, then the full 
amount of that project's eligible activities, up to $250,000, will be 
added to the final pro rata need amount for the continuum. HUD also 
reserves the right to adjust pro rata need, if necessary, to address 
the issue of project renewals.
    (c) Awarding need points to projects: Once the pro rata need is 
established, it is applied against the priority project list in the 
application. Starting from the highest priority project, HUD proceeds 
down the list to award need points to each project. An eligible project 
will receive the full 40 points for need if at least one half of its 
requested amount falls within the pro rata need amount for that 
Continuum of Care (COC). Thereafter, HUD proceeds further down the 
priority project list and awards 20 points for need to each project if 
at least one half of its requested amount falls within the ``second 
tier'' of pro rata need amount for that Continuum of Care (COC). The 
``second tier'' is the amount between the pro rata need and twice the 
pro rata need for the COC. Remaining projects each receive 10 points. 
If projects are not prioritized for the continuum, then all projects 
will receive 10 points for Need.
    In the case of competing applications from a single jurisdiction or 
service area, projects in the application that received the highest 
score out of the possible 60 points for Continuum of Care are eligible 
for up to 40 points under Need. Projects in the competing applications 
with lower Continuum of Care scores are eligible for only 10 points 
under Need.
    (5) Ranking. HUD will add the score for Continuum of Care to the 
Need score in order to obtain a total score for each project. The 
projects will then be ranked from highest to lowest according to the 
total combined score.
    (6) Conditional Selection and Adjustments to Funding.
    (a) Conditional Selection. Whether a project is conditionally 
selected, as described in Section V(B) below, will depend on its 
overall ranking compared to others, except that HUD reserves the right 
to select lower rated eligible projects in order to meet the new 30 
percent overall permanent housing requirement.
    When insufficient funds remain to fund all projects having the same 
total score, HUD will first fund permanent housing projects if 
necessary to achieve the 30 percent overall permanent housing 
requirement. HUD will then break ties among the remaining projects with 
the same total score by comparing scores received by the projects for 
each of the following scoring factors, in the order shown: Need, 
Overall Continuum of Care (COC) score, COC Process and Strategy, COC 
Gaps and Priorities, and COC Supplemental Resources. The final tie-
breaking factor is the priority number of the competing projects on the 
applicable COC priority list(s).
    (b) Adjustments to Funding. The Secretary of HUD has determined 
that geographic diversity is appropriate to carrying out homeless 
assistance programs in an effective manner. HUD believes that 
geographic diversity can be

[[Page 9830]]

achieved best by awarding grants to as many COCs as possible. To this 
end, in instances where any of the 50 States does not have at least one 
funded COC, HUD reserves the right to fund eligible project(s) 
receiving 40 Need points in the COC with the highest total score in 
that State. In the case of two or more COCs with the same total score, 
HUD will use the tie-breaking rules described above. In addition, if 
the highest priority project passing threshold requirements within a 
COC fails to meet the criteria for receiving 40 Need points, HUD 
reserves the right to reduce the total requested amount for that 
project in order to allow it to qualify for 40 Need points. HUD may 
otherwise adjust funding of applications in accordance with the 
provisions of Section III(E) of the General Section of the SuperNOFA. 
In addition, HUD reserves the right to ensure that a project that is 
applying for, and eligible for, selection under this competition is not 
awarded funds that duplicate activities.
    (7) Additional selection considerations. HUD also will apply the 
limitations on funding described below in making conditional 
selections.
    In accordance with the appropriation for homeless assistance grants 
in the Fiscal Year 1999 Appropriation Act for HUD (Pub. L. 105-276, 
approved October 21, 1998), HUD will use not less than 30 percent of 
the total FY 1999 homeless grant assistance appropriation to fund 
projects that meet the definition of permanent housing. Projects 
meeting the definition of permanent housing are: (1) New Shelter Plus 
Care projects; (2) Shelter Plus Care renewal projects; (3) Section 8 
SRO projects; and (4) new and renewal projects designated as permanent 
housing for homeless persons with disabilities under the Supportive 
Housing Program. Since the FY 1999 homeless grant assistance 
appropriation is $975 million, not less than $292.5 million must be 
awarded to permanent housing projects unless an insufficient number of 
approvable permanent housing projects is submitted in which case HUD 
will carry over the amount of the permanent housing funding shortfall 
to next year's competition. This permanent housing funding requirement 
may result in higher scoring non-permanent housing projects being 
skipped over in order to fund lower scoring permanent housing projects 
or, within a continuum, higher priority non-permanent housing projects 
being skipped over in order to fund lower priority permanent housing 
projects.
    In accordance with section 429 of the McKinney Act, HUD will award 
Supportive Housing funds as follows: not less than 25 percent for 
projects that primarily serve homeless families with children; not less 
than 25 percent for projects that primarily serve homeless persons with 
disabilities; and not less than 10 percent for supportive services not 
provided in conjunction with supportive housing. After projects are 
rated and ranked, based on the factors described above, HUD will 
determine if the conditionally selected projects achieve these minimum 
percentages. If not, HUD will skip higher-ranked projects in order to 
achieve these minimum percentages.
    In accordance with section 463(a) of the McKinney Act, as amended 
by the Housing and Community Development Act of 1992, at least 10 
percent of Shelter Plus Care funds will be awarded for each of the four 
components of the program: Tenant-based Rental Assistance; Sponsor-
based Rental Assistance; Project-based Rental Assistance; and Section 8 
Moderate Rehabilitation of Single Room Occupancy Dwellings for Homeless 
Individuals (provided there are sufficient numbers of approvable 
projects to achieve these percentages). After projects are rated and 
ranked, based on the factors described above, HUD will determine if the 
conditionally selected projects achieve these minimum percentages. If 
necessary, HUD will skip higher-ranked projects in order to achieve 
these minimum percentages.
    In accordance with section 455(b) of the McKinney Act, no more than 
10 percent of the assistance made available for Shelter Plus Care in 
any fiscal year may be used for programs located within any one unit of 
general local government. In accordance with section 441(c) of the 
McKinney Act, no city or urban county may have Section 8 SRO projects 
receiving a total of more than 10 percent of the assistance made 
available under this program. HUD is defining the 10 percent 
availability this fiscal year as $10 million for Shelter Plus Care and 
$10 million for Section 8 SRO. However, if the amount awarded under 
either of these two programs exceeds $100 million, then the amount 
awarded to any one unit of general local government (for purposes of 
the Shelter Plus Care program) or city or urban county (for the 
purposes of the SRO program) could be up to 10 percent of the actual 
total amount awarded for that program.
    Lastly, HUD reserves the right to reduce the amount of a grant if 
necessary to ensure that no more than 10 percent of assistance made 
available under this program section of the SuperNOFA will be awarded 
for projects located within any one unit of general local government or 
within the geographic area covered by any one Continuum of Care. If HUD 
exercises a right it has reserved under this program section of the 
SuperNOFA, that right will be exercised uniformly across all 
applications received in response to this program section of the 
SuperNOFA.

(B) Action on Conditionally Selected Applications

    HUD will notify conditionally selected applicants in writing. As 
necessary, HUD will subsequently request them to submit additional 
project information, which may include documentation to show the 
project is financially feasible; documentation of firm commitments for 
cash match; documentation showing site control; information necessary 
for HUD to perform an environmental review, where applicable; and such 
other documentation as specified by HUD in writing to the applicant, 
that confirms or clarifies information provided in the application. HUD 
will notify SHP, SRO, S+C and S+C/SRO applicants of the deadline for 
submission of such information. If an applicant is unable to meet any 
conditions for fund award within the specified timeframe, HUD reserves 
the right not to award funds to the applicant, but instead to either: 
use them to select the next highest ranked application(s) from the 
original competition for which there are sufficient funds available; or 
add them to funds available for the next competition for the applicable 
program.

VI. Application Submission Requirements

    The application kit provides the application materials, including 
Form SF-424 and certifications, that must be used in applying for 
homeless assistance under this SuperNOFA. These application materials 
substitute for the forms, certifications, and assurances listed in 
Section II(G) of the General Section of the SuperNOFA.
    The application requires a description of the Continuum of Care 
system and proposed project(s). The application kit also contains 
certifications that the applicant will comply with fair housing and 
civil rights requirements, program regulations, and other Federal 
requirements, and (where applicable) that the proposed activities are 
consistent with the HUD-approved Consolidated Plan of the applicable 
State or unit of general local government, including the Analysis of 
Impediments to Fair Housing Choice and the Action Plan to address these 
impediments. Projects funded under

[[Page 9831]]

this SuperNOFA shall operate in a fashion that does not deprive any 
individual of any right protected by the Fair Housing Act (42 U.S.C. 
3601-19), section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 
794), the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
seq.), Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), 
Section 109 of the Housing and Community Development Act of 1974 (42 
U.S.C. 5301) or the Age Discrimination Act of 1974 (42 U.S.C. 6101). 
Section II(D) of the General Section of this SuperNOFA regarding 
Affirmatively Furthering Fair Housing does not apply to the Continuum 
of Care Homeless Assistance programs.
    There are three options for submitting an application under this 
program section of the SuperNOFA.
    One: A ``Consolidated Application'' is submitted when a 
jurisdiction (or a consortium of jurisdictions) submits a single 
application encompassing a Continuum of Care strategy and containing 
all the projects within that strategy for which funding is being 
requested. Individual projects are contained within the one 
consolidated application. Grant funding may go to one entity which then 
administers all funded projects submitted in the application, or under 
this option, grant funding may go to all or any of the projects 
individually. Your application will specify the grantee for each 
project.
    Two: ``Associated Applications'' are submitted when applicants plan 
and organize a single Continuum of Care strategy which is adopted by 
project sponsors or operators who choose to submit separate 
applications for projects while including the identical Continuum of 
Care strategy. In this case, project funding would go to each 
successful applicant individually and each would be responsible to HUD 
for administering its separate grant.
    Three: A ``Solo Application'' is submitted when an applicant 
applies for a project exclusive of participation in any community-wide 
or region-wide Continuum of Care development process.
    Options one and two are not substantively different and will be 
considered equally competitive. Applicants are advised that projects 
that are not a part of a Continuum of Care strategy will receive few, 
if any, points under the Continuum of Care rating factors.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications (See Section V of the General 
Section).

VIII. Environmental and Local Resident Employment Requirements

(A) Environmental Requirements

    All Continuum of Care assistance is subject to the National 
Environmental Policy Act of 1969 and related Federal environmental 
authorities. No Federal or non-Federal funds or assistance that limits 
reasonable choices or could produce a significant adverse environmental 
impact may be committed to a project until all required environmental 
reviews and notifications have been completed. Conditional selection of 
projects under the Continuum of Care Program is subject to the 
environmental review requirements under 24 CFR 582.230, 583.230, and 
882.804(c), as applicable.

(B) Local Resident Employment

    To the extent that any housing assistance (including rental 
assistance) funded through this program section of the SuperNOFA is 
used for housing rehabilitation (including reduction and abatement of 
lead-based paint hazards, but excluding routine maintenance, repair, 
and replacement) or housing construction, then it is subject to section 
3 of the Housing and Urban Rehabilitation Act of 1968, and the 
implementing regulations at 24 CFR part 135. Section 3, as amended, 
requires that economic opportunities generated by certain HUD financial 
assistance for housing and community development programs shall, to the 
greatest extent feasible, be given to low- and very low-income persons, 
particularly those who are recipients of government assistance for 
housing, and to businesses that provide economic opportunities for 
these persons.

IX. Authority

    The Supportive Housing Program is authorized by title IV, subtitle 
C, of the Stewart B. McKinney Homeless Assistance Act (McKinney Act), 
42 U.S.C. 11381. Funds made available under this program section of the 
SuperNOFA for the Supportive Housing Program are subject to the program 
regulations at 24 CFR part 583.
    The Shelter Plus Care program is authorized by title IV, subtitle 
F, of the McKinney Act, 42 U.S.C. 11403. Funds made available under 
this program section of the SuperNOFA for the Shelter Plus Care program 
are subject to the program regulations at 24 CFR part 582.
    The Section 8 Moderate Rehabilitation Program for Single Room 
Occupancy Dwellings for Homeless Individuals (SRO) is authorized by 
section 441 of the McKinney Act, 42 U.S.C. 11401. Funds made available 
under this NOFA for the SRO program are subject to the program 
regulations at 24 CFR part 882, subpart H.

BILLING CODE 4210-32-P

[[Page 9832]]

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[[Page 9833]]

[GRAPHIC] [TIFF OMITTED] TN26FE99.040



  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

[[Page 9835]]


     
    [GRAPHIC] [TIFF OMITTED] TN26FE99.041
    
BILLING CODE 4210-32-C

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices  

[[Page 9837]]



Funding Availability for the Housing Opportunities for Persons With 
AIDS (HOPWA) Program

Program Overview

    Purpose of the Program. To provide States and localities with the 
resources and incentives to devise long-term comprehensive strategies 
for meeting the housing needs of persons with HIV/AIDS and their 
families.
    Available funds. $22,275,000 (and under a related part of this 
SuperNOFA, up to $2,250,000 for technical assistance for the HOPWA 
program).
    Eligible Applicants. (1) States, units of general local government, 
and nonprofit organizations for grants for Special Projects of National 
Significance (SPNS) grants.
    (2) States and units of general local government may apply for 
projects under the Long-Term category of grants, if activities will 
serve areas that were not eligible for HOPWA formula allocations in 
fiscal year 1999. An appendix in the application kit identifies the 
formula areas.
    Application Deadline. June 2, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. You must submit applications on or before 
12:00 midnight, Eastern time, on June 2, 1999 at HUD Headquarters.
    See the General Section of this SuperNOFA for specific procedures 
governing the form of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Address for Submitting Applications. You must submit your completed 
original application to: Department of Housing and Urban Development, 
451 Seventh Street, SW, Room 7251, Washington, DC 20410. The original 
application submitted to HUD headquarters is considered the official 
application.
    In addition, you must submit two (2) copies of your application to 
the area CPD Field Office or Offices that serve the area in which 
activities are proposed; the list of addresses for area CPD Field 
Offices is provided in the HOPWA application kit. If you propose 
nationwide activities, you must send all copies to the HUD headquarters 
office. When submitting your applications, please refer to HOPWA, and 
include your name, mailing address (including zip code) and telephone 
number (including area code).
    For Application Kits. For an application kit, please call the 
SuperNOFA Information Center at 1-800-HUD-8929 (1-800-483-8929). 
Persons with hearing or speech impairments may call the Center's TTY 
number at 1-800-483-2209. The application kit also will be available on 
the Internet through the HUD web site at http://www.hud.gov.
    For Further Information and Technical Assistance. For answers to 
your questions, you may call the HUD Field Office serving your area, at 
the telephone number shown in the application kit for this program, or 
you may contact the Community Connections Information Center at 1-800-
998-9999 (voice) or 1-800-483-2209 (TTY) or by Internet at: http://
www.comcon.org/ccprog.html.

II. Amount Allocated

    Approximately $22,275,000 is being made available for funding under 
this program section of the SuperNOFA. Additional funds may be awarded 
if funds are recaptured, deobligated, appropriated or otherwise made 
available during the fiscal year.
    (A) Maximum grant amounts. The maximum amount that you may receive 
is $1,200,000 for program activities (e.g., activities that directly 
benefit low-income persons living with HIV/AIDS and their families). 
You may also add-on up to 3 percent of this program activities amount 
for grantee administrative costs and, if your program involves project 
sponsors, add-on up to 7 percent for their administrative costs. In 
addition, up to $50,000 may be requested to collect data on project 
outcomes. HUD reserves the right to reduce the amount requested for 
data collection on project outcomes in relation the amount requested 
for program activities.
    (B) Award Modifications. See the General Section of this SuperNOFA 
for information with regard to adjustments to funding. HUD also 
reserves the right to ensure that activities funded under the FY 1999 
Continuum of Care will not duplicate activities funded under this 
competition.

III. Program Description; Eligible Applicants, Eligible Activities

(A) Program Description

    Funds under this program are to be used to fund projects for low-
income persons with HIV/AIDS and their families under two categories of 
assistance:
    (1) Grants for Special Projects of National Significance (SPNS) 
that, due to their innovative nature or their potential for 
replication, are likely to serve as effective models in addressing the 
housing and related supportive service needs of low-income persons 
living with HIV/AIDS and their families; and
    (2) Grants for projects that are part of Long-Term Comprehensive 
Strategies (Long-Term) which provide housing and related supportive 
services for low-income persons living with HIV/AIDS and their families 
in areas that are not eligible for HOPWA FY 99 formula allocations.

(B) Eligible Applicants and Project Sponsors

    (1) States, units of general local government, and nonprofit 
organizations may apply for grants for Special Projects of National 
Significance;
    (2) States and units of general local government may apply for 
grants for projects under the Long-Term category of grants, if proposed 
activities will serve areas that were not eligible to receive HOPWA 
formula allocations in fiscal year 1999. An appendix in the application 
kit describes the formula areas. Nonprofit organizations are not 
eligible to apply directly for the Long-Term grants but may serve as a 
project sponsor for an eligible State or local government grantee. You 
must identify your project sponsors in your application.
    (3) Nonprofit organizations must have appropriate credentials, in 
accordance with HOPWA regulations at 24 CFR 574.3. If you are a 
nonprofit organization, to be an eligible applicant or project sponsor, 
you must either:

--Have, by the application due date, an IRS ruling that grants you tax 
exempt status under section 501(c)(3) of the Internal Revenue Code; or
--Provide documentation that shows that your organization satisfies the 
criteria in the statutory definition of nonprofit organization in 42 
U.S.C. 12902(13).
    The statutory definition reads:

    The term ``nonprofit organization'' means any nonprofit 
organization (including a State or locally chartered, nonprofit 
organization) that--(A) is organized under State or local laws; (B) 
has no part of its net earnings inuring to the benefit of any 
member, founder, contributor, or individual; (C) complies with 
standards of financial accountability acceptable to the Secretary; 
and (D) has among its purposes significant activities related to 
providing services or

[[Page 9838]]

housing to persons with acquired immunodeficiency syndrome or 
related diseases.

HUD interprets the use of the term ``related diseases'' in this 
definition to include HIV infection.
    Adequate documentation of nonprofit status includes the following:
    (a) In lieu of an IRS exemption for nonprofits in Puerto Rico, a 
ruling from the Treasury Department of the Commonwealth of Puerto Rico 
granting income tax exemption under section 101 of the Income Tax Act 
of 1954, as amended (13 LPRA 3101);
    (b) In lieu of documentation under section 501(c)(3), documentation 
of an IRS ruling of tax exempt status under section 501(c)(4), (6), 
(7), (9), or (19);
    (c) Documentation of satisfying the statutory criteria by 
submitting the following four items:
    (i) Certification by the appropriate official of the jurisdiction 
under whose laws the nonprofit organization was organized that the 
organization was so organized and is in good standing;
    (ii) Documentation that the organization is a certified United Way 
member agency or other documentation that shows that no inurement of 
benefits to the managers of the organization occurs;
    (iii) Documentation from a CPA or Public Accountant that the 
organization has a functioning accounting system that is operated in 
accordance with generally acceptable accounting principles or that a 
qualifying entity is designated for that activity, or the United Way 
member agency certification noted in item (ii); and
    (iv) A certified copy of the nonprofit organization's articles of 
incorporation, by-laws, statement of purposes, board of director's 
resolution or a similar document that includes a provision 
demonstrating its purpose regarding significant activities for persons 
living with HIV/AIDS.
    If your organization does not provide the requested documentation, 
you are not eligible to receive funds and serve as the grantee or as a 
project sponsor. However, you may collaborate with eligible nonprofit 
organizations or with a government agency that applies for the grant 
and assist them, for example, in planning for the proposed activities, 
identifying needs in your community and identifying clients who will be 
assisted. In addition, you may do work under contract with a grantee 
for services funded by this grant.

(C) Eligible Activities

    (1) The following eligible activities are subject to standards and 
limitations found in 24 CFR part 574, however, HUD will not approve 
proposals that depend on future decisions on how funds are to be used, 
for example, a proposal to establish a local request-for-proposal 
process to select activities:
    (a) Housing information services (including fair housing 
counseling).
    (b) Project-based or tenant-based rental assistance.
    (c) New construction of a community residence or SRO dwelling.
    (d) Acquisition, rehabilitation, conversion, lease or repair of 
facilities to provide housing and services.
    (e) Operating costs for housing.
    (f) Short-term rent, mortgage and utility payments to prevent 
homelessness.
    (g) Supportive services.
    (h) Administrative expenses (see limits for grantees and sponsors).
    (i) Resource identification to establish, coordinate and develop 
housing assistance resources and technical assistance in establishing 
and operating a community residence. HUD will not select under this 
notice an application that is primarily directed at providing these 
activities, since national HOPWA technical assistance funds are being 
made available under the CDTA part of this notice for this purpose. You 
may propose a resource identification or technical assistance component 
in your application, if the amount of funds designated for these 
activities are less than 20 percent of the proposed program activity 
costs; and
    (j) As authorized by the statute, you may propose other activities 
in your application, if approved by HUD, including data collection on 
project outcomes, as described below in paragraph (2).
    (2) Project Outcomes.
    You may request up to $50,000 to collect information and report to 
HUD, or a third party designated by HUD, on project outcomes. If you 
requested these funds, you must propose data collection activities in 
your application. The persons who will conduct these activities may 
include an expert third-party. Generally, this assistance will help a 
project:
    (a) Define monitoring questions that will be addressed and examined 
during the project period;
    (b) Specify outcome measures;
    (c) Develop instruments to assess project outcomes and systems 
outcomes;
    (d) Train project staff in the collection of data;
    (e) Monitor data collection activities to assure that submissions 
are complete and accurate, including data coding and entry;
    (f) Summarize data collected; and
    (g) Prepare reports summarizing findings, including the standard 
HOPWA Annual Progress Report.

IV. Program Requirements

(A) Performance Measures and Project Goals and Objectives

    You must use HUD's required performance measures that will show 
your accomplishments in using HOPWA funds to expand the housing options 
that benefit low-income persons with HIV/AIDS and their families. You 
may also establish individual goals and objectives for your proposal. 
They should be specific, achievable and measured within set time 
periods. Your individual goals and objectives should result in possible 
findings on the successes and lessons learned in undertaking your 
activities that would be shared with other communities. In designing 
your proposal, please use the following:
    (1) The required HOPWA performance goals. Your proposed activities 
must:
    (a) Increase the amount of housing assistance and related 
supportive services to low-income persons living with HIV/AIDS and 
their families;
    (b) Enable them to achieve housing stability; and
    (c) Enable them to access health-care and supportive services.
    (2) Measurement of your performance. After each year of operation, 
report on the number of short-term and permanent housing units that 
were provided with HOPWA funding, in connection with related supportive 
services. The following are examples of performance measurement:
    (a) In your community over the last year, a transitional housing 
facility providing 5 units of housing was operated with HOPWA funds. 
Residents also received drug and/or alcohol abuse treatment and 
counseling by qualified staff. During that year, ten persons resided in 
the facility and benefited from the intense on-site assistance, which 
also included helping them develop and follow a plan to find permanent 
housing and continue treatment after leaving the facility, including 
monthly phone contacts or visits by staff; and
    (b) Over the last 12 months, a nonprofit organization distributed 
tenant-based rental assistance vouchers to 15 households within your 
three-county metropolitan area. The vouchers provided for on-going 
housing assistance (up to three years) and the program advised the 
clients on tenant-landlord issues and arranged for housing quality 
standard inspections of

[[Page 9839]]

the apartments selected. A case manager who is funded under the Ryan 
White CARE Act program, advised the tenants and helped them access 
health-care and other services from providers in this community. During 
this year, 22 persons received permanent housing assistance with HOPWA 
funds and for three of these families who were unable to find housing 
within 30 days, additional efforts were made and an appropriate 
apartment was located and used.

(B) Performance Benchmarks

    Funds received under this competition are expected to be expended 
within 3 years following the effective date of a grant agreement. If 
you undertake the listed activities, you will be expected to meet the 
following performance benchmarks:
    (1) If you acquire or lease a site, you are required to gain site 
control within one year of their selection (i.e, one year from the date 
of the signing of their selection letter by HUD);
    (2) If you propose to use HOPWA funds to undertake rehabilitation 
or new construction activities, you are required to begin the 
rehabilitation or construction within 18 months of your selection and 
to complete that activity within 3 years from the date of your 
selection letter by HUD; and
    (3) Except as noted in paragraph (2) for rehabilitation or 
construction activities, you must begin to operate your program within 
one year from your selection. If a selected project does not meet the 
appropriate performance benchmark, HUD reserves the right to cancel or 
withdraw the grant funds.

(C) Availability of FY 1999 Formula Allocations

    You are also encouraged to consider seeking funds for your proposed 
activities under the formula component of the HOPWA program and from 
other resources that are made available in communities. Ninety (90) 
percent of the HOPWA program is allocated by formula and recipient 
States and cities are required to consult with the public on designing 
the use of these funds. In FY 1999, a total of $200.475 million was 
allocated by formula to the qualifying cities for 63 eligible 
metropolitan statistical areas (EMSAs) and to 34 eligible States for 
areas outside of EMSAs. All HOPWA formula grants are available as part 
of the jurisdiction's Consolidated Plan, which also includes the 
Community Development Block Grant, HOME Investment Partnerships 
program, and Emergency Shelter Grants. Plans are developed through a 
public process that assesses area needs, creates a multiple-year 
strategy and proposes an action plan for use of Federal funds and other 
community resources in a coordinated and comprehensive manner. 
Information on consolidated planning, including HOPWA formula programs 
and descriptions of previously awarded competitive grants, is available 
on the HUD HOME Page at www.hud.gov/cpd/cpdalloc.html.

(D) Availability of National HOPWA Technical Assistance

    If you are interested in providing technical assistance activities 
with HOPWA funds, submit an application for funds under the Community 
Development Technical Assistance part of this notice, which is 
published elsewhere in this SuperNOFA. The CDTA notice provides up to 
$2,250,000 in HOPWA funds to organizations for technical assistance 
support on a national or regional basis.

V. Application Selection Process

(A) HOPWA Application Reviews

    HUD will review your HOPWA application to ensure that:
    (1) It meets the threshold requirements found in the General 
Section of the SuperNOFA;
    (2) A Certification of Consistency with Consolidated Plans is 
provided. Under the HOPWA program, proposed activities that are located 
in a jurisdiction are required to be consistent with the jurisdiction's 
current, approved Consolidated Plan, including the Analysis of 
Impediments to Fair Housing and the Action Plan to address these 
impediments, except that this certification is not required for 
projects that propose to undertake activities on a national basis; and
    (3) You are currently in compliance with the Federal requirements 
contained in 24 CFR part 574, subpart G, ``Other Federal 
Requirements.''

(B) The HOPWA Competition

    This national competition will involve the review, rating, and 
selection of HOPWA applications under each of the two categories of 
assistance (Special Projects of National Significance (SPNS) and Long-
Term Comprehensive Strategies (Long-Term) in areas that do not qualify 
for HOPWA formula allocations.

(C) Procedures for the Rating of Applications

    HUD will rate all HOPWA applications based on the criteria listed 
below.

(D) Factors for Award Used to Evaluate and Rate Applications

    The factors for rating and ranking your application, and the 
maximum points for each factor, are provided below. The points awarded 
for the factors total 100. In addition, bonus points for projects in 
high performing EZ/EC areas and by the City of Dallas may be available 
under Section III(C)(2) of the General Section of this SuperNOFA apply 
to this competition. After rating, all applications will be placed in 
the rank order of their final score for selection within the 
appropriate category of assistance.
Rating Factor 1: Capacity of the Applicant and Project Sponsors and 
Relevant Organizational Experience (20 Points)
    This factor addresses the extent to which you and any project 
sponsor has the organizational resources necessary to successfully 
implement the proposed activities in a timely manner. HUD will award up 
to 20 points based on your and any project sponsor's ability to develop 
and operate the proposed program, such as housing development, 
management of housing facilities or units, and service delivery, in 
relation to which entity is carrying out an activity.
    (1) With regard to both you and any project sponsor(s), HUD will 
consider:
    (a) Past experience and knowledge in serving persons with HIV/AIDS 
and their families;
    (b) Past experience and knowledge in programs similar to those 
proposed in your application;
    (c) Experience and knowledge in monitoring and evaluating program 
performance and disseminating information on project outcomes; and
    (d) Past experience as measured by expenditures and measurable 
progress in achieving the purpose for which funds were provided.
    (2) In reviewing the elements of paragraph (1), HUD will consider 
the extent to which your proposal demonstrates:
    (a) The knowledge and experience of the proposed project director 
and staff, including the day-to-day program manager, consultants and 
contractors in planning and managing the kind of activities for which 
you are requesting funds. You and any project sponsor will be judged in 
terms of recent, relevant and successful experience of staff to 
undertake eligible program activities, including experience and 
knowledge in serving persons with HIV/AIDS and their families.
    (b) Your and/or the sponsor's experience in managing complex

[[Page 9840]]

interdisciplinary programs, especially those involving housing and 
community development programs directly relevant to the work activities 
proposed and carrying out grant management responsibilities.
    (c) If you and/or the sponsor received funding in previous years in 
the program area for which you are currently seeking funding, you and 
your sponsor's past experience will be evaluated in terms of their 
ability to attain demonstrated measurable progress in the 
implementation of their recent grant awards, as measured by 
expenditures and measurable progress in achieving the purpose for which 
funds were provided.
Rating Factor 2: Need/Extent of the Problem (20 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed program activities and an indication of the 
urgency of meeting the need in the target area. For up to 15 points, 
HUD will award points as follows under paragraphs (1) to (3), and 5 
points under paragraph (4).
    (1) (5 Points) AIDS Cases. Up to five of these points will be 
determined by the relative numbers of AIDS cases and per capita AIDS 
incidence, in metropolitan areas of over 500,000 population and in 
areas of a State outside of these metropolitan areas, in the State for 
proposals involving state-wide activities, and in the nation for 
proposals involving nation-wide activities. To determine these points, 
HUD will obtain AIDS surveillance information from the Director of the 
Centers for Disease Control and Prevention.
    (2) (5 Points) Description of Unmet Need. Up to five of these 
points will be determined by the extent to which there is a need for 
funding eligible activities in the area to be served. To receive the 
highest ratings in this factor, you must demonstrate that substantial 
housing and related service needs of low-income persons living with 
HIV/AIDS and their families are not being met in the area and that 
reliable statistics and data sources show this unmet need. To receive 
the highest number of points, you also must show that your 
jurisdiction's Consolidated Plan and Analysis of Impediments to Fair 
Housing Choice, Continuum of Care Homeless Assistance plans (if 
homeless persons are to be served), and comprehensive HIV/AIDS housing 
plans are applicable and identify the level of the problem and the 
urgency of the need. Urgent and unmet needs may be demonstrated, as 
follows:
    (a) If you apply for a proposed Special Project of National 
Significance, you must describe a need that is not currently addressed 
by other projects or programs in the area; also describe any unresolved 
or emerging issues, and the need to provide new or alternative forms of 
assistance that, if provided, would enhance your area's programs for 
housing and related care for persons living with HIV/AIDS and their 
families; or
    (b) If you apply for a project that is part of a Long-Term 
Comprehensive Strategy in an area that does not receive a HOPWA formula 
allocation, you must describe the need that is not currently addressed 
by other projects or programs in the area; you must also describe any 
unresolved or emerging issues, and/or the need to provide forms of 
assistance that enhance the community's strategy for providing housing 
and related services to eligible persons.
    HUD will consider your presentation of statistics and data sources 
based on soundness and reliability and the specificity of information 
to the target population and the area to be served. If you propose to 
serve a subpopulation of eligible persons on the basis that these 
persons have been traditionally and are currently underserved (e.g., 
persons with multiple disabilities including AIDS), your application 
must document the need for this targeted effort.
    (3) (5 Points) Need in Non-Formula Areas and Need for Renewals. 
Within the points available under this criterion, HUD will award points 
under the following two circumstances:
    (a) Five points will be awarded, if your SPNS application proposes 
to serve clients in an area that does not qualify for HOPWA formula 
allocation; or
    (b) Up to five points will be awarded, if you propose to continue 
the operations of HOPWA funded activities that have been supported by 
HOPWA competitive funds in prior years and that have operated with 
reasonable success. To receive the highest ratings in this factor, you 
must describe what unmet need would result if funding for the project 
was not renewed and describe your efforts to secure other sources of 
funding to continue this project. You must also show that you operated 
with reasonable success and your previous HOPWA-funded activities have 
been carried out and are nearing completion of the planned activities 
in a timely manner. You must also show that timely performance reports 
were provided and that benchmarks, if any, in program development and 
operation have been met, and that the number of persons assisted is 
comparable to the number that was planned at the time of application.
    (4) (5 Points) Highest Rated in a State or the Nation (for 
nationwide activities). After the other rating factors have been 
determined, HUD will award five of the points to help achieve greater 
geographic diversity in funding activities within a variety of States. 
Under this criterion, five points will be awarded to the highest rated 
SPNS and Long-term applications in each State and to the highest rated 
SPNS application among the applications that propose nationwide 
activities.
Rating Factor 3: Soundness of Approach: Responsiveness and Model 
Qualities (40 Points)
    This factor addresses the quality of your plan in addressing the 
needs that you identified in your community. HUD will award up to 40 
points based on the extent to which your plan evidences a sound 
approach in its responsiveness to the persons that you will be 
assisting and how it offers model qualities in providing supportive 
housing opportunities for low-income persons living with HIV/AIDS and 
their families, when compared to other applications and projects funded 
under previous HOPWA competitions. The points will be awarded as 
follows:
    A. Responsiveness (20 Points). HUD will award up to 20 points based 
on how well your plan responds to the unmet needs that you described 
under the Need Criterion. To receive the highest ratings in this 
factor, you must demonstrate how the housing needs of clients will be 
addressed and how on-going support for clients will be provided. For 
example, if you propose to use more than 10% of your HOPWA funds for 
supportive services, emergency or transitional housing activities, to 
receive the highest number of rating points, you must address permanent 
housing needs with HOPWA funds or other sources of funds. You can 
fulfill this commitment by allocating housing vouchers for HOPWA 
clients or building permanent housing. In addition, HUD will give 
higher rating points to proposals that maximize client participation in 
decision-making and allow clients and their families to access health 
care and other supportive services.
    B. Model Qualities (20 Points). HUD will award up to 20 points 
based on how well your service delivery model offers or expands housing 
opportunities and related supportive services for low-income persons 
living with HIV/AIDS and their families. To receive the highest rating, 
your service delivery model must describe in sufficient detail

[[Page 9841]]

your planned actions, how it expands housing opportunities and how 
activities could be replicated in other similar jurisdictions. To 
receive the highest ratings in this element, you must offer a plan that 
evidences the following:
    (i) Your project's goals and objectives. You must describe your 
individual goals and objectives and how you will measure how well the 
project is performing under the required HOPWA performance goal--
increasing the amount of housing assistance and related supportive 
services to low-income persons living with HIV/AIDS and their families 
to enable them to achieve housing stability and access to health-care 
and supportive services.
    (ii) Your plans for accomplishing these goals and objectives. You 
must describe the service delivery model that you intend to implement 
and explain how you will integrate the following items:
    (a) Housing. You must demonstrate how the housing needs of clients 
will be addressed by including: the type and number of units of housing 
to be provided and/or made more appropriate if currently available in 
the community; the connection of any emergency or transitional housing 
in obtaining permanent housing; the roles and responsibilities of 
project sponsors, staff, volunteers and other organizations in 
undertaking these activities; any appropriate site features, including 
accessibility and visitability; and how clients can have access to 
other community amenities.
    (b) Supportive Services. You must describe how the supportive 
service needs of clients will be addressed by including: the type of 
supportive services that will be offered and/or how services will be 
coordinated and available; the connection of these services to in 
helping clients obtain and/or maintain housing; the roles and 
responsibilities of project sponsors, staff, volunteers and other 
organizations in undertaking these activities.
    (c) Operations. You must describe your outreach, intake, and 
assessment procedures to identify clients and their needs; your client-
level service plan to help connect clients to available and identified 
community resources; your assistance to clients who need to be 
monitored and how you will adjust your program to meet their changing 
needs; your methods for coordinating project sponsor's services, your 
staff and volunteers, and any other organizations in order to benefit 
clients; and the ability of your operations to remain viable and 
sustaining.
    (d) Management Oversight. You must describe your oversight of 
project sponsors, staff, volunteers and management of your activities 
to ensure sound fiscal and program operations and effective program 
delivery.
    (iii) Achieving Your Goals and Objectives. You should describe your 
method for collecting data on the project outcomes; your method for 
reviewing this data and other information on the program's operations; 
and the basis for making relative adjustments based on outcomes and 
lessons learned. HUD also will consider the extent to which you provide 
for the dissemination of information on the success or lessons learned 
from your proposed activities.
    (iv) Innovative Qualities. If you propose a new program, or an 
alternative method of meeting the needs of your clients, you should 
describe the innovative qualities of your activities. HUD will consider 
the extent to which these qualities will benefit persons or expand our 
knowledge in offering assistance to persons living with HIV/AIDS and 
their families, when compared to other applications and HOPWA projects 
funded in the past.
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure community resources 
which can be combined with HUD's program resources to achieve program 
purposes. HUD will award up to 10 points based on the extent to which 
resources from other public or private sources have been committed at 
the time of application, to support your project. To achieve the 
highest ratings in this criteria, you must evidence commitments of 
leveraged resources that match or exceed the amount of HOPWA funds that 
are requested. Exhibit 4 of the application kit provides guidance on 
the appropriate language that you must use to document these leveraged 
resources.
    In establishing leveraging, HUD will not consider other HOPWA-
funded activities, entitlement benefits inuring to eligible persons, or 
conditioned commitments that depend on future fund-raising or actions. 
In assessing the use of acceptable leveraged resources, HUD will 
consider the likelihood that State and local resources will be 
available and continue during the operating period of the grant. In 
evaluating this factor HUD will also consider:
    (1) The extent to which the applicant documents leveraged 
resources, such as funding and/or in-kind services from governmental 
entities, private organizations, resident management organizations, 
educational institutions, or other entities in order to achieve the 
purposes of the project for which the applicant is requesting HOPWA 
funds.
    (2) The extent to which the documented resources evidence that you 
have partnered with other entities to make more effective use of 
available public or private resources. Partnership arrangements may 
include funding or in-kind services from local governments or 
government agencies, nonprofit or for-profit entities, private 
organizations, educational institutions, or other entities that are 
willing to partner with you on proposed activities, or partnering with 
other program funding recipients to make more effective use of 
resources within the geographic area covered by your award.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you coordinated the 
specific proposal with other known organizations, consulted prospective 
clients or persons with HIV/AIDS in designing the proposal, 
participates or promotes participation in the jurisdiction's 
Consolidated Planning process, and in a community's Continuum of Care 
Homeless Assistance planning process (if homeless persons are to be 
served by proposed activities), and is working towards addressing a 
need in a holistic and comprehensive manner through linkages with other 
activities in the community. HUD will award up to 10 points based on 
your proposal's comprehensiveness and coordination. In order to ensure 
that resources are used to their maximum effect within the community, 
it is important that you be involved in HUD's planning processes for 
community development and homeless assistance resources. If you, your 
sponsors, or others partnering with you have been involved in these 
processes, you should describe that involvement under this factor.
    HUD will consider the extent to which your activities were planned 
and are proposed to be carried out with HOPWA funds and other resources 
in order to provide a comprehensive and responsive range of housing and 
related supportive services to meet the changing needs of persons with 
HIV/AIDS. Your proposal should demonstrate that housing is provided in 
conjunction with the client's access to health-care and other 
supportive services in the area to be served, including assistance 
provided under the Ryan White CARE Act programs.

[[Page 9842]]

    In evaluating this factor, HUD will consider the extent to which 
you demonstrate you have:
    (1) Coordinated your proposed activities with those of other groups 
or organizations prior to submission, to best complement, support, and 
coordinate all known activities; and if funded, the specific steps you 
will take to share information on solutions and outcomes with others. 
You should describe any written agreements, memoranda of understanding 
in place, or that will be in place after award.
    (2) Been actively involved in your community's Continuum of Care 
Homeless Assistance planning process (if homeless persons are to be 
served by proposed activities), and/or the jurisdiction's Consolidated 
Planning process established to identify and address a need/problem 
that is related to the activities you propose to undertake.
    In the case of technical assistance providers, you will be 
evaluated on the specific steps you will take to work with recipients 
of technical assistance services to inform them of, and get them 
involved in, the community's Continuum of Care Homeless Assistance 
planning process and/or the jurisdiction's Consolidated Planning 
process, as applicable. HUD will review more favorably your application 
if you can demonstrate you are active or are working with recipients of 
technical assistance to get them involved in local and State planning 
processes.
    (3) Developed linkages, or specific steps you will take to develop 
linkages with other activities, programs or projects through meetings, 
information networks, planning processes, or other mechanisms, to 
coordinate your activities so solutions are holistic and comprehensive, 
including linkages with:
    (a) Other HUD-funded projects/activities outside the scope of those 
covered by the Consolidated Plan; and
    (b) Other activities funded by the Federal, State, or local 
government, including those proposed or on-going in the community.
    (E) Selection of HOPWA Awards. Whether your HOPWA application is 
conditionally selected will depend on your overall ranking compared to 
other applications within each of the two categories of assistance. HUD 
will select applications in rank order in each category of assistance 
to the extent that funds are available, except as noted below. In 
allocating amounts to the categories of assistance, HUD reserves the 
right to ensure that sufficient funds are available for the selection 
of at least one application with the highest ranking under each 
category of assistance.
    HUD reserves the right to achieve greater diversity in the 
selection of applications by selecting a lower rated application where 
no applicant in a State has been the recipient of any prior HOPWA 
competitive grant or formula allocation. In selecting a lower rated 
application, HUD will not select an application that is rated below 50 
points.
    In the event of a tie between applications in a category of 
assistance, HUD reserves the right to break the tie: by selecting the 
proposal that increases geographic diversity as defined in the prior 
paragraph; and, if greater geographic diversity is not achievable, by 
selecting the proposal that was scored higher on a rating criterion in 
the following order: Soundness of Approach: Responsiveness and Model 
Qualities (Rating Factor 3); Comprehensiveness and Coordination (Rating 
Factor 5); the Capacity of the Applicant and Relevant Organizational 
Experience (Rating Factor 1); the Need/Extent of the Problem (Rating 
Factor 2); and Leveraging Resources (Rating Factor 4).
    HUD will notify you in writing if you are conditionally selected. 
You may be notified subsequently of any modification made by HUD, the 
additional project information necessary for grant award, and the date 
of deadline for submission of the required information. In the event 
that a conditionally-selected applicant is unable to meet any 
conditions for fund award within the specified timeframe or funds are 
deobligated under a grant awarded under this competition, HUD reserves 
the right not to award funds to the applicant, but use those funds to 
make awards to the next highest rated applications in this competition; 
to restore amounts to a funding request that had been reduced in this 
competition; or to add amounts to funds available for the next 
competition.

VI. Application Submission Requirements

    The HOPWA application kit provides an application that must be used 
in applying for program funds under this program section of the 
SuperNOFA. The HOPWA application provides certifications and an SF-424 
that are applicable to this program. HOPWA applicants are not required 
to provide the forms, certifications, and assurances listed in Section 
II(G) of the General Section of the SuperNOFA. Section II(D) of the 
General Section of this SuperNOFA regarding Affirmatively Furthering 
Fair Housing does not apply to the HOPWA program.
    The required HOPWA certifications cover the following items: (1) 
fair housing and non-discrimination; (2) drug-free workplace; (3) 
uniform relocation assistance; (4) environmental laws and authorities; 
(5) anti-lobbying requirements; (6) continued use periods for 
structures assisted; and (7) debarred, suspended and ineligible 
principals requirements.
    Your HOPWA application must contain the following items:
    (A) Project Sponsors. You must identify any organization that will 
receive HOPWA funds as a project sponsor and the amount of funds to be 
received.
    (B) Narrative Statements. Your application must include narrative 
statements that address each of the Factors for Award found at Section 
III(D) of this program section of the SuperNOFA.
    (C) Service Areas. Your application must identify the area(s) in 
which you are proposing to offer housing and other assistance.
    (D) Budget. You must propose a budget and use the form found in the 
HOPWA Application Kit which lists the amount of HOPWA funds designated 
for each type of HOPWA-eligible activity.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Other Requirements

(A) Environmental Requirements

     Sec. 207(c) of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1999 
(Pub. L. 105-276, 112 Stat. 2461, approved October 22, 1998), 
authorizes responsible entities (including units of general local 
government, States, Indian tribes, and Alaska native villages) to 
perform the environmental review for proposed HOPWA projects in 
accordance with 24 CFR part 58. Under 24 CFR part 58, the recipient 
must request the responsible entity, as defined in 24 CFR 58.2(a)(7), 
to assume the environmental responsibilities for projects being funded 
by a HOPWA grant.
    HOPWA recipients may not commit or expend any grant or nonfederal 
funds on project activities (other than activities exempted under 
Sec. 58.34 or excluded under Sec. 58.35(b)) until HUD has approved the 
Recipient's request for the release of funds (RROF) under part

[[Page 9843]]

58. Where HUD determines, under 24 CFR 58.11, that it will perform an 
environmental review for a particular project in accordance with 24 CFR 
part 50, the HOPWA recipient may not acquire, rehabilitate, convert, 
lease, repair or construct property or commit or expend any grant or 
nonfederal funds for these program activities until HUD provides 
written notice to the recipient that HUD has completed the 
environmental review. The expenditure or commitment of HOPWA or 
nonfederal funds prior to the HUD approval of the RROF (or prior to 
completion of a HUD environmental review) may result in denial of 
assistance for the project under consideration.

(B) Local Resident Employment

    For grants in excess of $200,000, to the extent that any housing 
assistance funded through this program section of the SuperNOFA is used 
for housing rehabilitation (including reduction and abatement of lead-
based paint hazards, but excluding routine maintenance, repair, and 
replacement) or housing construction, then it is subject to section 3 
of the Housing and Urban Rehabilitation Act of 1968, and the 
implementing regulations at 24 CFR part 135. Section 3 requires that 
economic opportunities generated by certain HUD financial assistance 
for housing and community development programs shall, to the greatest 
extent feasible, be given to low- and very low-income persons, 
particularly those who are recipients of government assistance for 
housing, and to businesses that provide economic opportunities for 
these persons.

IX. Authority

    This program is authorized under the AIDS Housing Opportunity Act 
(42 U.S.C. 12901). The regulations for HOPWA are found at 24 CFR part 
574.

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Funding Availability for Section 202 Supportive Housing for the 
Elderly Program

Program Overview

    Purpose of the Program. This program provides supportive housing 
for very low-income persons 62 years of age or older.
    Available Funds. Approximately $434,870,779.
    Eligible Applicants. Private nonprofit organizations and nonprofit 
consumer cooperatives.
    Application Deadline. May 27, 1999.
    Match Requirements. No.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Submit your completed applications on or 
before 6:00 pm, local time on May 27, 1999 at the address shown below.
    See the General Section of this SuperNOFA for specific procedures 
governing the form of application submission (e.g., mailed 
applications, express mail, overnight delivery, or hand carried).
    Address for Submitting Applications. Submit your completed 
application (an original and four copies) to the Director of the 
appropriate Multifamily Hub Office or Multifamily Program Center as 
listed in Appendix A to the Section 811 program section of this 
SuperNOFA.
    The application kit also includes a listing of the Multifamily Hubs 
and Program Centers, their addresses, and telephone numbers, including 
TTY numbers. This information is also available from HUD's SuperNOFA 
Information Center at 1-800-HUD-8929 and from the Internet through the 
HUD web site at http://www.hud.gov.
    For Application Kits. For an application kit and any supplemental 
information, please call HUD's SuperNOFA Information Center at 1-800-
HUD-8929. Persons with hearing or speech impairments may call the 
Center's TTY number at 1-800-483-2209. When requesting an application 
kit, please refer to the Section 202 Program and provide your name, 
address (including zip code), and telephone number (including area 
code). The application kit also will be available on the Internet 
through the HUD web site at http://www.hud.gov and from the appropriate 
Multifamily Hub or Multifamily Program Center.
    For Further Information and Technical Assistance. For further 
information and technical assistance, please contact the appropriate 
Multifamily Hub Office or Multifamily Program Center, or Aretha 
Williams at HUD Headquarters at (202) 708-2866, or access the Internet 
at http://www.hud.gov. HUD encourages minority organizations to 
participate in this program and strongly recommends that prospective 
applicants attend the local HUD Office workshop. At the workshops, HUD 
will explain application procedures and requirements as well as address 
concerns such as local market conditions, building codes and 
accessibility requirements, historic preservation, floodplain 
management, displacement and relocation, zoning, and housing costs. If 
you are interested in attending the workshop, make sure that your name 
is on the appropriate HUD Office's mailing list so that you will be 
informed of the date, time and place of the workshop. Persons with 
disabilities should call the appropriate HUD Office to ensure that any 
necessary arrangements can be made to enable your attendance and 
participation in the workshop.
    If you cannot attend the workshop, call the appropriate HUD Office 
if you have any questions concerning the submission of applications to 
that particular office and to request any materials distributed at the 
workshop.

II. Amount Allocated

    Approximately, $434,870,779 is available for the supportive housing 
for the elderly program. The FY 1999 HUD Appropriations Act 
(Appropriations Act) provides $660,000,000 for capital advances, 
including amendments to capital advance contracts, for supportive 
housing for the elderly as authorized by section 202 of the Housing Act 
of 1959 (as amended by the National Affordable Housing Act and the 
Housing and Community Development Act of 1992), and for project rental 
assistance, and amendments to contracts for project rental assistance, 
for supportive housing for the elderly under section 202(c)(2) of the 
Housing Act of 1959, as amended.
    In accordance with the waiver authority provided in the 
Appropriations Act, the Secretary is waiving the following statutory 
and regulatory provision: the term of the project rental assistance 
contract is reduced from 20 years to 5 years. HUD anticipates that at 
the end of the contract terms, renewals will be approved subject to the 
availability of funds. In addition to this provision, HUD will reserve 
project rental assistance contract funds based on 75 percent rather 
than on 100 percent of the current operating cost standards for 
approved units in order to take into account the average tenant 
contribution toward rent.
    The allocation formula used for Section 202 reflects the ``relevant 
characteristics of prospective program participants,'' as specified in 
24 CFR 791.402(a). The FY 1999 formula consists of one data element: a 
measure of the number of one and two person renter households with 
incomes at or below HUD's Very-low Income Limit (50 percent of area 
median family income, as determined by HUD, with an adjustment for 
household size), which have housing deficiencies. The counts of elderly 
renter households with housing deficiencies were taken from a special 
tabulation of the 1990 Decennial Census. The formula focuses the 
allocation on targeting the funds based on the unmet needs of elderly 
renter households with housing problems.
    Under Section 202, 85 percent of the total capital advance amount 
is allocated to metropolitan areas and 15 percent to nonmetropolitan 
areas. In addition, each HUD Office jurisdiction receives sufficient 
capital advance funds for a minimum of 20 units in metropolitan areas 
and 5 units in nonmetropolitan areas. The total amount of capital 
advance funds to support these minimum set-asides are subtracted from 
the respective (metropolitan or nonmetropolitan) total capital advance 
amounts available. The remainder is fair shared to each HUD Office 
jurisdiction whose fair share exceeds the minimum set-aside based on 
the allocation formula fair share factors described below. NOTE: The 
allocations for metropolitan and nonmetropolitan portions of the 
Multifamily Hub or Program Center jurisdictions reflect the most 
current definitions of metropolitan and nonmetropolitan areas, as 
defined by the Office of Management and Budget.
    A fair share factor is developed for each metropolitan and 
nonmetropolitan portion of each local HUD Office jurisdiction by 
dividing the number of renter households for the jurisdiction by the 
total number of rental households in the United States. The resulting 
percentage for each local HUD Office jurisdiction is then adjusted to 
reflect the relative cost of providing housing among the HUD Office 
jurisdictions. The adjusted needs percentage for the applicable 
metropolitan or nonmetropolitan portion of each jurisdiction is then 
multiplied by the

[[Page 9848]]

respective total remaining capital advance funds available nationwide.
    Based on the allocation formula, HUD has allocated the available 
capital advance funds as shown on the following chart:

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III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    HUD provides capital advances and contracts for project rental 
assistance in accordance with 24 CFR part 891. Capital Advances may be 
used for the construction or rehabilitation of a structure, or 
acquisition of a structure from the Federal Deposit Insurance 
Corporation (formerly held by the Resolution Trust Corporation) (FDIC/
RTC). Capital Advance funds bear no interest and are based on 
development cost limits published in this SuperNOFA. Repayment of the 
capital advance is not required as long as the housing remains 
available for occupancy by very low-income elderly persons for at least 
40 years.
    Project rental assistance contract (PRAC) funds are used to cover 
the difference between what the residents pay for rent and the HUD-
approved expense to operate the project. Project Rental Assistance 
Contract funds may also be used to provide supportive services and to 
hire a service coordinator in those projects serving the frail elderly 
residents. The supportive services must be appropriate to the category 
or categories of frail elderly residents to be served.

(B) Eligible Applicants

    Private nonprofit organizations and nonprofit consumer cooperatives 
are the only eligible applicants under this Section 202 Program. 
Neither a public body nor an instrumentality of a public body is 
eligible to participate in the program.
    A Sponsor or Co-sponsor may not apply for more than 200 units of 
housing for the elderly in a single Hub or more than 10 percent of the 
total units allocated to all HUD Offices. Also, no single application 
may propose more than the number of units allocated to a HUD office or 
125 units, whichever is less. Reservations for projects will not be 
approved for fewer than 5 units. Affiliated entities that submit 
separate applications are considered to be a single entity for the 
purpose of these limits.

(C) Eligible Activities

    Section 202 capital advance funds must be used to finance the 
development of housing through new construction, rehabilitation, or 
acquisition of housing from the FDIC/Resolution Trust Corporation. 
Project Rental Assistance funds are provided to cover the difference 
between the HUD-approved operating costs and the amount the residents 
pay (each resident pays 30 percent of adjusted income) as well as to 
provide supportive services to frail elderly residents. In projects 
principally serving the frail elderly, eligible costs include the 
salary of a service coordinator.

(D) Ineligible Activities

    Section 202 funds may not be used for nursing homes, infirmaries, 
medical facilities, mobile home projects, community centers, 
headquarters for organizations for the elderly, nonhousekeeping 
accommodations, or refinancing of sponsor-owned facilities without 
rehabilitation.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, as an applicant, you must comply with the 
following requirements:
    (A) Statutory and Regulatory Requirements. You must comply with all 
Section 202 Program statutory and regulatory requirements, as listed in 
Sections III(A) and IX of this program section of the SuperNOFA.
    (B) HUD/RHS Agreement. HUD and the Rural Housing Service (RHS) have 
an agreement to coordinate the administration of the agencies' 
respective rental assistance programs. As a result, HUD is required to 
notify RHS of applications for housing assistance it receives. This 
notification gives RHS the opportunity to comment if it has concerns 
about the demand for additional assisted housing and possible harm to 
existing projects in the same housing market area. HUD will consider 
RHS' comments in its review and application selection process.
    (C) Development Cost Limits. (1) The following development cost 
limits, adjusted by locality as described in Section IV(C)(2) of this 
program section of the SuperNOFA, below, will be used to determine the 
capital advance amount to be reserved for projects for the elderly:
    (a) The total development cost of the property or project 
attributable to dwelling use (less the incremental development cost and 
the capitalized operating costs associated with any excess amenities 
and design features you must pay for) may not exceed:
Nonelevator Structures
    $33,638 per family unit without a bedroom;
    $38,785 per family unit with one bedroom;
    $46,775 per family unit with two bedrooms;
For Elevator Structures
    $35,400 per family unit without a bedroom;
    $40,579 per family unit with one bedroom;
    $49,344 per family unit with two bedrooms.
    (b) These cost limits reflect those costs reasonable and necessary 
to develop a project of modest design that complies with HUD minimum 
property standards; the accessibility requirements of Sec. 891.120(b); 
and the project design and cost standards of Sec. 891.120 and 
Sec. 891.210.
    (2) Increased development cost limits.
    (a) HUD may increase the development cost limits set forth in 
Section IV(C)(1) of this program section of the SuperNOFA, above, by up 
to 140 percent in any geographic area where the cost levels require, 
and may increase the development cost limits by up to 160 percent on a 
project-by-project basis. This increase may include covering additional 
costs to make dwelling units accessible through rehabilitation.
    (b) If HUD finds that high construction costs in Alaska, Guam, the 
Virgin Islands, or Hawaii make it infeasible to construct dwellings, 
without the sacrifice of sound standards of construction, design, and 
livability, within the development cost limits provided in Section 
IV(C)(1) of this program section of the SuperNOFA, above, the amount of 
the capital advances may be increased to compensate for such costs. The 
increase may not exceed the limits established under this section 
(including any high cost area adjustment) by more than 50 percent.
    (D) Minimum Capital Investment. Selected nonprofit organizations 
must provide a minimum capital investment of one-half of one percent of 
the HUD-approved capital advance amount, not to exceed $10,000. If you, 
as Sponsor or Co-Sponsor, have one or more Section 202 or one or more 
Section 811 project(s) under reservation, construction, or management 
in two or more different HUD geographical regions, the minimum capital 
investment shall be one half of one percent of the HUD-approved capital 
advance amount, not to exceed $25,000.
    (E) Economic Opportunities for Low and Very Low-Income Persons 
(Section 3). You must comply with section 3 of the Housing and Urban 
Development Act of 1968, 12 U.S.C. 1701u (Economic Opportunities for 
Low and Very Low Income Persons), and its implementing regulations at 
24 CFR part 135. You must ensure that training, employment

[[Page 9854]]

and other economic opportunities shall, to the greatest extent 
feasible, be directed toward low- and very low-income persons, 
particularly those who are recipients of government assistance for 
housing and to business concerns which provide economic opportunities 
to low and very low income persons.

V. Application Selection Process

(A) Review for Curable Deficiencies

    HUD will screen all applications received by the deadline for 
curable deficiencies. A curable deficiency is a missing Exhibit or 
portion of an Exhibit that will not affect the rating of the 
application. The following is a list of the deficiencies that will be 
considered curable in a Section 202 application:
Exhibits
(1)
    *Form 92015-CA (Application Form)
(2)
    *(a) Articles of Incorporation
    *(b) By-laws
    *(c) IRS tax exemption ruling
(4)
    (c)(ii) Energy efficiency
    *(d)(i) Evidence of site control
    (d)(vi) SHPO letter
(5)
    Applications submitted to other Offices
(6)
    Relocation
(7)
    *(a) Standard Form 424
    (b) Drug-free Workplace
    (c) Form-HUD 50071 and Standard Form-LLL
    (d) Form-HUD 2880
    (e) Form-HUD 2992
    (f) Executive Order 12372
    (g) Form-HUD 2991, Certification of Consistency with Consolidated 
Plan
    (h) Conflict of Interest Resolution
    *(i) Resolution for Commitment to Project
    (k) Combined Certifications
    The HUD Office will notify you in writing if your application is 
missing any of the exhibits or portions of exhibits and you will be 
given 14 days from the date of the HUD notification to submit the 
information required to cure the noted deficiencies. The items 
identified by an asterisk (*) must be dated on or before the 
application deadline date.

(B) Rating

    HUD will review and rate your application in accordance with the 
Application Selection Process in the General Section of this SuperNOFA 
with the following exception. HUD will not reject your application 
based on technical review without notifying you of that rejection with 
all the reasons for rejection, and providing you an opportunity to 
appeal. You will have 14 calendar days from the date of HUD's written 
notice to appeal a technical rejection to the HUD office. The HUD 
office will make a determination on an appeal before making its 
selection recommendations. All applications will be either rated or 
technically rejected at the end of technical review. If your 
application meets all program eligibility requirements after completion 
of technical review, it will be rated according to the rating factors 
in Section V(D) of this Section 202 Program section of the SuperNOFA.

(C) Ranking and Selection Procedures

    Applications submitted in response to the advertised metropolitan 
allocations or nonmetropolitan allocations that have a total base score 
(without the addition of EC/EZ bonus points) of 60 points or more and 
meet all of the applicable threshold requirements of Section II(B) of 
the General Section of the SuperNOFA will be eligible for selection, 
and HUD will place them in rank order per metropolitan or 
nonmetropolitan allocation. These applications, after adding any bonus 
points for EC/EZ, will be selected based on rank order, up to and 
including the last application that can be funded out of each HUD 
office's metropolitan or nonmetropolitan allocation. HUD offices must 
not skip over any applications in order to select one based on the 
funds remaining. After making the initial selections in each allocation 
area, however, HUD may use any residual funds to select the next rank-
ordered application by reducing the number of units by no more than 10 
percent, rounded to the nearest whole number, provided the reduction 
will not render the project infeasible. For this purpose, however, HUD 
will not reduce the number of units in projects of five units or less.
    Once this process has been completed, HUD offices may combine their 
unused metropolitan and nonmetropolitan funds in order to select the 
next ranked application in either category, using the unit reduction 
policy described above, if necessary.
    After the offices have funded all possible projects based on the 
process above, combined metropolitan and nonmetropolitan residual funds 
from all HUD Offices in each Multifamily Hub will be combined. These 
funds will be used first to restore units to projects reduced by HUD 
offices based on the above instructions. Second, additional 
applications within each Multifamily Hub will be selected in rank order 
with only one application selected per HUD Office. More than one 
application may be selected per HUD Office if there are no approvable 
applications in other HUD Offices within the Multifamily Hub. This 
process will continue until there are no more approvable applications 
within the Multifamily Hub that can be selected with the remaining 
funds without skipping over any application. HUD may use any remaining 
residual funds, however, to select the next rank-ordered application by 
reducing the number of units by no more than 10 percent rounded to the 
nearest whole number, provided the reduction will not render the 
project infeasible or result in the project being less than five units.
    Funds remaining after these processes are completed will be 
returned to Headquarters. HUD will use these residual funds first to 
fund American Indian Council, in the jurisdiction of the Milwaukee 
Multifamily Program Center, a FY 1994 application which was not funded 
due to litigation. Second, HUD will use these funds to restore units to 
projects reduced by HUD offices as a result of the instructions for 
using their residual funds. Third, HUD will use these funds for 
selecting applications based on field offices' rankings beginning with 
the highest rated application nationwide. Only one application will be 
selected per HUD office from the national residual amount (excluding 
the Milwaukee Multifamily Program Center, already funded). If there are 
no approvable applications in other HUD offices, the process will begin 
with the selection of the next highest rated application nationwide. 
This process will continue until all approvable applications are 
selected using the available remaining funds.

(D) Factors For Award Used To Evaluate and Rate Applications

    HUD will rate applications that successfully complete technical 
processing using the Rating Factors set forth below and in accordance 
with the application submission requirements identified in Section 
VI(B) below. The maximum number of points an application may receive 
under this program is 102. This includes two EZ/EC bonus points, as 
described in the General Section of the SuperNOFA.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (25 Points)
    This factor addresses the extent to which you have the 
organizational resources to successfully implement the proposed 
activities in a timely manner.

[[Page 9855]]

Submit information responding to this factor in accordance with 
Application Submission Requirements in paragraphs (B)(2), (B)(3)(a), 
(B)(3)(b), and (B)(3)(e) of Section VI of this program section of the 
SuperNOFA.
    In rating this factor, HUD will consider the extent to which your 
application demonstrates your ability to develop and operate the 
proposed housing on a long-term basis, considering the following:
    (1) (15 points) The scope, extent, and quality of your experience 
in providing housing or related services to those proposed to be served 
by the project and the scope of the proposed project (i.e., number of 
units, services, relocation costs, development, and operation) in 
relationship to your demonstrated development and management capacity 
as well as your financial management capability; and
    (2) (10 points) The scope, extent, and quality of your experience 
in providing housing or related services to minority persons or 
families. For purposes of this program section of the SuperNOFA, 
``minority'' means the basic racial and ethnic categories for Federal 
statistics and administrative reporting, as defined in OMB's 
Statistical and Policy Directive No. 15. (See 62 FR 58782, October 30, 
1997.);
Rating Factor 2: Need/Extent of the Problem (15 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed activities to address a documented problem in the 
target area. Submit information responding to this factor in accordance 
with Application Submission Requirements in paragraphs (B)(4)(a) and 
(B)(4)(b) of Section VI of this program section of the SuperNOFA. In 
evaluating this factor, HUD will consider:
    The extent of the need for the project in the area based on a 
determination by the HUD Office. In making this determination, HUD will 
consider your evidence of need in the area, as well as other economic, 
demographic, and housing market data available to the HUD office. The 
data could include information on the number of existing Federally 
assisted housing units (HUD and RHS) for the elderly in the area and 
current occupancy in such facilities; Federally assisted housing for 
the elderly under construction or for which fund reservations have been 
issued; and in accordance with an agreement between HUD and the RHS, 
comments from the RHS on the demand for additional assisted housing and 
the possible harm to existing projects in the same housing market area. 
The Department will also review more favorably those applications which 
establish a connection between the proposed project and the community's 
Analysis of Impediments to Fair Housing Choice (AI) or other planning 
document that analyzes fair housing issues and is prepared by a local 
planning or similar organization. You must show how the proposed 
project will address an impediment to fair housing choice described in 
the AI or meet a need identified in the other type of planning 
document.
Rating Factor 3: Soundness of Approach (40 Points)
    This factor addresses the quality and effectiveness of your 
proposal. There must be a clear relationship between the proposed 
activities, the community's needs and purposes of the program funding 
for your application to receive points for this factor. Submit 
information responding to this factor in accordance with Application 
Submission Requirements in paragraphs (B)(4)(c), (B)(4)(d) and 
(B)(4)(e) of Section VI of this program section of the SuperNOFA. In 
evaluating this factor, HUD will consider the following:
    (1) (15 points) The proximity or accessibility of the site to 
shopping, medical facilities, transportation, places of worship, 
recreational facilities, places of employment, and other necessary 
services to the intended occupants; adequacy of utilities and streets; 
freedom of the site from adverse environmental conditions; compliance 
with site and neighborhood standards (24 CFR 891.125);
    (2) (10 points) The suitability of the site from the standpoints of 
promoting a greater choice of housing opportunities for minority 
elderly persons/families, and affirmatively furthering fair housing. In 
reviewing this criterion, HUD will assess whether the site meets the 
site and neighborhood standards at 24 CFR 891.125(b) and (c) by 
examining relevant data in your application or in the HUD Office. Where 
appropriate, HUD may visit the site. The site will be deemed acceptable 
if it increases housing choice and opportunity by (a) expanding housing 
opportunities in non-minority neighborhoods (if located in such a 
neighborhood); or (b) contributing to the revitalization of and 
reinvestment in minority neighborhoods, including improvement of the 
level, quality and affordability of services furnished to minority 
elderly;
    (3) (3 points) The extent to which the proposed design will meet 
the special physical needs of elderly persons;
    (4) (3 points) The extent to which the proposed size and unit mix 
of the housing will enable you to manage and operate the housing 
efficiently and ensure that the provision of supportive services will 
be accomplished in an economical fashion;
    (5) (3 points) The extent to which the proposed design of the 
housing will accommodate the provision of supportive services that are 
expected to be needed, initially and over the useful life of the 
housing, by the category or categories of elderly persons the housing 
is intended to serve;
    (6) (3 points) The extent to which the proposed supportive services 
meet the identified needs of the anticipated residents; and
    (7) (3 points) The extent to which you demonstrate that the 
identified supportive services will be provided on a consistent, long-
term basis.
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure other community 
resources which can be combined with HUD's program resources to achieve 
program purposes. Submit information responding to this factor in 
accordance with Application Submission Requirements in paragraphs 
(B)(3)(c) and (B)(3)(d) of Section VI of this program section of the 
SuperNOFA.
    (1) (5 points) The extent of local government support (including 
financial assistance, donation of land, provision of services, etc.) 
for the project; and
    (2) (5 points) The extent of your activities in the community, 
including previous experience in serving the area where the project is 
to be located, and your demonstrated ability to enlist volunteers and 
raise local funds.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you coordinated your 
activities with other known organizations, participate or promote 
participation in a community's Consolidated Planning process, and are 
working toward addressing a need in a holistic and comprehensive manner 
through linkages with other activities in the community. Submit 
information responding to this factor in accordance with Application 
Submission Requirements in paragraphs (B)(3)(f), (B)(3)(g), (B)(3)(h) 
and (B)(3)(i) of Section VI of this program section of the SuperNOFA.
    (1) (4 points) Your involvement of elderly persons, particularly 
minority elderly persons, in the development of the application, and 
your intent to

[[Page 9856]]

involve elderly persons, particularly minority elderly persons, in the 
development and operation of the project;
    (2) (2 points) The extent to which you coordinated your application 
with other organizations to complement and/or support the proposed 
project;
    (3) (2 points) The extent to which you demonstrated that you have 
been actively involved, or if not currently active, the steps you will 
take to become actively involved in your community's Consolidated 
Planning process to identify and address a need/problem that is related 
in whole or part, directly or indirectly to the proposed project;
    (4) (2 points) The extent to which you developed or plan to develop 
linkages with other activities, programs or projects related to the 
proposed project to coordinate your activities so solutions are 
holistic and comprehensive; and
Bonus Points
    (2 bonus points) Location of proposed site in an EZ/EC area, as 
described in the General Section of this SuperNOFA. Submit the 
information responding to the bonus points in accordance with the 
Application Submission Requirements in paragraph (B)(7)(j) of Section 
VI of this program section of the SuperNOFA.

VI. Application Submission Requirements

(A) Application

    Your application must include all of the information, materials, 
forms, and exhibits listed in Section VI(B) (unless you were selected 
for a Section 202 fund reservation within the last three funding 
cycles). If you qualify for this exception, you are not required to 
submit the information described in Sections VI(B)(2) (a), (b), and (c) 
of this program section of the SuperNOFA (Exhibits 2.a., b., and c. of 
the application kit), which are the articles of incorporation, (or 
other organizational documents), by-laws, and the IRS tax exemption, 
respectively. If there has been a change in any of the eligibility 
documents since your previous HUD approval, you must submit the updated 
information in your application. HUD offices will verify your 
indication of previous HUD approval by checking the project number and 
approval status with the appropriate HUD Office.
    In addition to this relief of paperwork burden in preparing 
applications, you will be able to submit information and exhibits you 
have previously prepared for prior applications under Section 202, 
Section 811, or other funding programs. Examples of exhibits that may 
be readily adapted or amended to decrease the burden of application 
preparation include, among others, those on previous participation in 
the Section 202 or Section 811 Programs, your experience in provision 
of housing and services, supportive services plan, community ties, and 
experience serving minorities.

(B) General Application Requirements

    (1) Form HUD-92015-CA, Application for Section 202 Supportive 
Housing Capital Advance.
    (2) Evidence of your and each Co-Sponsor's legal status as a 
private nonprofit organization or nonprofit consumer cooperative, 
including the following:
    (a) Articles of Incorporation, constitution, or other 
organizational documents;
    (b) By-laws;
    (c) IRS tax exemption ruling (this must be submitted by you and 
each Co-Sponsor, including churches). A consumer cooperative that is 
tax exempt under State law, has never been liable for payment of 
Federal income taxes, and does not pay patronage dividends may be 
exempt from the requirement set out in the previous sentence if it is 
not eligible for tax exemption.

    Note: If you received a Section 202 Fund Reservation within the 
last Three Funding Cycles, you are not required to submit the 
documents described in paragraphs (a), (b), and (c), above. Instead, 
you must submit the project number of the latest application 
selected and the HUD office to which it was submitted. If there have 
been any modifications or additions to the subject documents, 
indicate such, and submit the new material.

    (3) A description of your purpose, community ties, and experience, 
including the following:
    (a) A description of your purpose, current activities and how long 
you have been in existence;
    (b) A description of your ties to the community at large and to the 
minority and elderly communities in particular;
    (c) A description of local government support for the project 
(including financial assistance, donation of land, provision of 
services, etc.);
    (d) Letters of support for your organization and for the proposed 
project from organizations familiar with the housing and supportive 
services needs of the elderly that you expect to serve in the proposed 
project;
    (e) A description of your housing and/or supportive services 
experience. The description should include any rental housing projects 
and/or supportive services facilities that you have sponsored, owned, 
and/or operated; your past or current involvement in any programs other 
than housing that demonstrates your management capabilities (including 
financial management) and experience; your experience in serving the 
elderly, including elderly persons with disabilities, and/or families 
and minorities; and the reasons for receiving any increases in fund 
reservations for developing and/or operating previously funded Section 
202 or Section 811 projects. The description should include data on the 
facilities and services provided, the racial/ethnic composition of the 
populations served, if available, and information and testimonials from 
residents or community leaders on the quality of the activities. 
Examples of activities that could be described include housing 
counseling, nutrition and food services, special housing referral, 
screening and information projects.
    (f) A description, if applicable, of your efforts to involve 
elderly persons, including minority elderly persons, in the development 
of the application, as well as your intent to involve elderly persons 
in the development and operation of the project.
    (g) A description of the steps you took to identify and coordinate 
your application with other organizations to complement and/or support 
the proposed project as well as the steps you will take, if funded, to 
share information on solutions and outcomes relative to the development 
of the proposed project.
    (h) A description of your involvement in your community's 
Consolidated Planning process including:
    (i) An identification of the lead/facilitating agency that 
organizes/administers the process;
    (ii) An identification of the Consolidated Plan issue areas in 
which you participate;
    (iii) Your level of participation in the process, including active 
involvement with any neighborhood-based organizations, associations, or 
any committees that support programs and activities that enhance 
projects or the lives of residents of the projects, such as the one 
proposed in your application.
    If you are not currently active, describe the specific steps you 
will take to become active in the Consolidated Planning process. 
(Consult the local HUD Office for the identification of the 
Consolidated Plan community process for the appropriate area.)
    (i) A description of the linkages that you have developed or plan 
to develop with other related activities, programs or projects in order 
that the development of the project provides a

[[Page 9857]]

comprehensive and holistic solution to the needs of the target 
population.
    (4) Project information, including the following:
    (a) Evidence of need for supportive housing. Such evidence would 
include a description of the category or categories of elderly persons 
the housing is intended to serve and evidence demonstrating sustained 
effective demand for supportive housing for that population in the 
market area to be served, taking into consideration the occupancy and 
vacancy conditions in existing Federally assisted housing for the 
elderly (HUD and RHS; e.g., public housing); State or local data on the 
limitations in activities of daily living among the elderly in the 
area; aging in place in existing assisted rentals; trends in 
demographic changes in elderly population and households; the numbers 
of income eligible elderly households by size, tenure, and housing 
condition; the types of supportive services arrangements currently 
available in the area; and the use of such services as evidenced by 
data from local social service agencies or agencies on aging. Also, a 
description of how information in the community's Analysis of 
Impediments to Fair Housing Choice was used in documenting the need for 
the project.
    (b) A description of how the proposed project will benefit the 
target population and the community in which it will be located.
    (c) A description of the project, including the following:
    (i) A narrative description of the building design, including a 
description of the number of units with bedroom distributions, any 
special design features, amenities, and/or community space, and how 
this design will facilitate the delivery of services in an economical 
fashion and accommodate the changing needs of the residents over the 
next 10-20 years. NOTE: If these community spaces, amenities, or 
features would not comply with the project design and cost standards of 
24 CFR 891.120 and the special project standards of 24 CFR 891.210, you 
must state your ability and willingness to contribute both the 
incremental development cost and continuing operating cost associated 
with the community spaces, amenities, or features;
    (ii) A description of whether and how the project will promote 
energy efficiency, and, if applicable, innovative construction or 
rehabilitation methods or technologies to be used that will promote 
efficient construction.
    (d) Evidence of site control and permissive zoning, including the 
following:
    (i) Acceptable evidence of site control is limited to any one of 
the following:
    (1) Deed or long-term leasehold which evidences that you have title 
to or a leasehold interest in the site. If a leasehold, the term of the 
lease must be at least 50 years;
    (2) Contract of sale for the site which is free of any limitations 
affecting ability to deliver ownership to you after you receive and 
accept a notice of Section 202 capital advance. The only condition for 
closing on the sale can be your receipt and acceptance of the capital 
advance;
    (3) Option to purchase or for a long-term leasehold which must 
remain in effect for one year from the date on which the applications 
are due. The option agreement may consist of a single one year term or 
may include one or more rights to renew up to one year solely at your 
discretion. The only condition on which the option may be terminated is 
if you are not awarded a fund reservation.
    (4) If the site is covered by a mortgage under a HUD program, you 
must submit evidence that consent to release of the site from the 
mortgage has been obtained or is being requested.
    (5) For sites to be acquired from a public body, evidence is needed 
that the public body possesses clear title to the site and has entered 
into a legally binding agreement to lease or convey the site to you 
after you receive and accept a notice of Section 202 capital advance. 
Where HUD determines that time constraints of the funding round will 
not permit all of the required official actions (e.g., approval of 
Community Planning Boards) that are necessary to convey publicly-owned 
sites, a letter in the application from the mayor or director of the 
appropriate local agency indicating that conveyance or leasing of the 
site is acceptable and only contingent on the necessary approval 
action. In its review of such cases, HUD will consider whether it has 
had satisfactory experience with timely conveyance of sites from that 
public body.
    Whether you have title to the site, a contract of sale, an option 
to purchase, or are acquiring the site from a public body, you must 
provide evidence (a title policy or other acceptable evidence) that the 
site is free of any limitations, restrictions, or reverters which could 
adversely affect the use of the site for the proposed project for the 
40-year capital advance period under HUD's regulations and requirements 
(e.g., reversion to seller if title is transferred). Mortgages are not 
considered to be limitations or restrictions that would adversely 
affect the use of the site. If the site is subject to any such 
limitations, restrictions, or reverters the application will be 
rejected.

    Note: A proposed project site may not be acquired or optioned 
from a general contractor (or its affiliate) that will construct the 
Section 202 Project or from any other development team member.

    (ii) Evidence that the project as proposed is permissible under 
applicable zoning ordinances or regulations, or a statement of the 
proposed action required to make the proposed project permissible and 
the basis for your belief that the proposed action will be completed 
successfully before the submission of the firm commitment application 
(e.g., a summary of the results of any requests for rezoning and/or the 
procedures for obtaining special or conditional use permits on land in 
similar zoning classifications and the time required for such rezoning, 
or preliminary indications of acceptability from zoning bodies, etc.);
    (iii) A narrative topographical and demographic description of the 
suitability of the site and area, and how the site will promote greater 
housing opportunities for minority elderly and elderly persons with 
disabilities, thereby affirmatively furthering fair housing; (NOTE: You 
can best demonstrate your commitment to affirmatively furthering fair 
housing by describing how your proposed activities will assist the 
jurisdiction in overcoming impediments to fair housing choice 
identified in the applicable jurisdictions's Analysis of Impediments to 
Fair Housing Choice (AI), which is a component of the jurisdiction's 
Consolidated Plan, or any other planning document that addresses fair 
housing issues. The applicable Consolidated Plan and AI may be the 
Community's, the County's, or the State's, to which input should have 
been provided by local community organizations, agencies in the 
community, and residents of the community. Alternatively, a document 
that addresses fair housing issues and remedies to barriers to fair 
housing in the community that was previously prepared by a local 
planning, or similar organization, may be used. Applicable impediments 
could include the need for improved housing quality and services for 
elderly minority families, lack of affirmative marketing and outreach 
to minority elderly persons, and the need for quality eldercare 
services within areas of minority concentration when

[[Page 9858]]

compared with the type and quality of similar services and housing in 
nonminority areas.
    (iv) A map showing the location of the site and the racial 
composition of the neighborhood, with the area of racial concentration 
delineated;
    (v) A Phase I Environmental Site Assessment, in accordance with the 
American Society for Testing and Material (ASTM) Standards E 1527-93, 
as amended. The Phase I study must be completed and submitted with the 
application. Therefore, it is important that you start the site 
assessment process as soon after publication of this SuperNOFA as 
possible.
    If the Phase I study indicates the possible presence of 
contamination and/or hazards, you must decide whether to continue with 
this site or choose another site. Should you choose another site, the 
same environmental site assessment procedure identified above must be 
followed for that site. NOTE: For properties to be acquired from the 
FDIC/RTC, include a copy of the FDIC/RTC prepared Transaction Screen 
Checklist or Phase I Environmental Site Assessment, and applicable 
documentation, per the FDIC/RTC Environmental Guidelines.
    If you choose to continue with the original site on which the Phase 
I study indicated contamination or hazards, you must undertake a 
detailed Phase II Environmental Site Assessment by an appropriate 
professional. If the Phase II Assessment reveals site contamination, 
the extent of the contamination and a plan for clean-up of the site 
must be submitted to the local HUD office. The plan for clean-up must 
include a contract for remediation of the problem(s) and an approval 
letter from the applicable Federal, State, and/or local agency with 
jurisdiction over the site. In order for the application to be 
considered for review under this FY 1999 funding competition, you must 
submit this information to the local HUD office on or before June 28, 
1999.

    Note: This could be an expensive undertaking. You must pay for 
the cost of any clean-up and/or remediation.

    (vi) A letter from the State Historic Preservation Officer (SHPO) 
indicating whether the proposed site has any historical significance. 
If you cannot obtain a letter from the SHPO due to the SHPO not 
responding to your request or the SHPO responding that it cannot or 
will not comply with the requirement, you must submit the following: 
(1) a letter indicating that you attempted to get the required letter 
from the SHPO but that the SHPO either had not responded to your 
request or would not honor or recognize your request; (2) a copy of 
your letter to the SHPO requesting the required letter; and, (3) a copy 
of the SHPO's response, if available.
    (e) Provision of supportive services and proposed facility:
    (i) A detailed description of the supportive services proposed to 
be provided to the anticipated occupancy;
    (ii) A description of public or private sources of assistance that 
reasonably could be expected to fund the proposed services;
    (iii) The manner in which such services will be provided to such 
persons (i.e., on or off-site), including whether a service coordinator 
will facilitate the adequate provision of such services, and how the 
services will meet the identified needs of the residents. NOTE: You may 
not require residents, as a condition of occupancy, to accept any 
supportive service.
    (5) A list of the applications, if any, that you have submitted or 
are planning to submit to any other HUD office in response to this 
announcement of Section 202 Program funding availability or the 
announcement of Section 811 Program (Supportive Housing for Persons 
with Disabilities) funding availability, published elsewhere in today's 
Federal Register). Indicate by HUD office, the proposed location by 
city and State, and the number of units requested for each application. 
Include a list of all FY 1998 and prior year projects to which you are 
the Sponsor that have not been finally closed. Such projects must be 
identified by project number and HUD office.
    (6) A statement that:
    (a) Identifies all persons (families, individuals, businesses, and 
nonprofit organizations), by race/minority group, and status as owners 
or tenants, occupying the property on the date of submission of the 
application for a capital advance;
    (b) Indicates the estimated cost of relocation payments and other 
services;
    (c) Identifies the staff organization that will carry out the 
relocation activities; and
    (d) Identifies all persons that have moved from the site within the 
past 12 months.

    Note: If any of the relocation costs will be funded from sources 
other than the section 202 capital advance, you must provide 
evidence of a firm commitment of these funds. When evaluating 
applications, HUD will consider the total cost of proposals (I.E., 
cost of site acquisition, relocation, construction, and other 
project costs).

    (7) Certifications and Resolutions. In addition to the 
certifications and assurances listed in the General Section of this 
SuperNOFA with the exception of SF-424A, SF-424B, SF-424C, SF-424D and 
the OMB Circulars which are not required, you are required to submit 
signed copies of the following:
    (a) Standard Form 424. Application for Federal Assistance and 
indication of whether you are delinquent on any Federal debt. (See 
instructions for submitting this form in the Consolidated Application 
Submission section of the General Section of the SuperNOFA.)
    (b) Drug-Free Workplace (HUD-50070). Certification to provide a 
drug-free workplace.
    (c) Payments to Influence Federal Transactions (HUD-50071) and 
Standard Form LLL, Disclosure of Lobbying Activities. Certification of 
whether any of the funds received will be used to influence any Federal 
transactions and disclosure of those activities, if applicable.
    (d) Applicant/Recipient Disclosure/Update Report, including Social 
Security Numbers and Employee Identification Numbers, (HUD-2880). A 
disclosure of assistance from other government sources received in 
connection with the project.
    (e) Employment, Engagement of Services, Awarding or Funding of 
Contracts, Subgrants, etc. (24 CFR 24.510).
    (f) Executive Order 12372 Certification. A certification that you 
have submitted a copy of your application, if required, to the State 
agency (single point of contact) for State review in accordance with 
Executive Order 12372.
    (g) Certification of Consistency with the Consolidated Plan (Plan), 
Form HUD-2991, for the jurisdiction in which the proposed project will 
be located. The certification must be made by the unit of general local 
government if it is required to have, or has, a complete Plan. 
Otherwise, the certification may be made by the State, or by the unit 
of general local government if the project will be located within the 
jurisdiction of the unit of general local government authorized to use 
an abbreviated strategy, and if it is willing to prepare such a Plan.
    All certifications must be made by the public official responsible 
for submitting the Plan to HUD. The certifications must be submitted as 
part of the application by the application submission deadline date set 
forth in this program section of the SuperNOFA. The Plan regulations 
are published in 24 CFR part 91.
    (h) A certified Board Resolution that no officer or director of the 
Sponsor or Owner has or will have any financial interest in any 
contract with the Owner

[[Page 9859]]

or in any firm or corporation that has or will have a contract with the 
Owner, including a current listing of all duly qualified and sitting 
officers and directors by title, and the beginning and ending dates of 
each person's term.
    (i) A certified Board Resolution, acknowledging the 
responsibilities of sponsorship, long-term support of the project(s), 
willingness to assist the Owner to develop, own, manage, and provide 
appropriate services in connection with the proposed project, and that 
it reflects the will of its membership. Also, evidence, in the form of 
a certified Board Resolution, of your willingness to fund the estimated 
start-up expenses, the Minimum Capital Investment (one-half of 1 
percent of the HUD-approved capital advance, not to exceed $10,000, if 
nonaffiliated with a National Sponsor; one-half of 1 percent of the 
HUD-approved capital advance, not to exceed $25,000, for all other 
Sponsors;), and the estimated cost of any amenities or features (and 
operating costs related thereto) that would not be covered by the 
approved capital advance.
    (j) Certification of Consistency with the EZ/EC Strategic Plan. A 
certification that the project is consistent with the EZ/EC strategic 
plan, is located within the EZ/EC, and serves EZ/EC residents.
    (k) Sponsor's Combined Certifications. (i) Certification in 
Connection with the Development and Operation of a Section 202 Project. 
A certification of compliance with the requirements of the Fair Housing 
Act, Title VI of the Civil Rights Act, the Age Discrimination Act of 
1975, Section 3 of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701u) and the implementing regulations at 24 CFR Part 135, the 
affirmative fair housing marketing requirements of 24 CFR part 200, 
subpart M and the implementing regulations at 24 CFR part 108, and 
other applicable Federal, State and local laws prohibiting 
discrimination and promoting equal opportunity including affirmatively 
furthering fair housing.
    (ii) Design and Cost Standards. Certification of Compliance with 
HUD's Section 202 project design and cost standards (24 CFR 891.120 and 
891.210), the Uniform Federal Accessibility Standards (24 CFR 40.7), 
Section 504 of the Rehabilitation Act of 1973 and HUD's implementing 
regulations at 24 CFR part 8, and for covered multifamily dwellings 
designed and constructed for first occupancy after March 13, 1991, the 
design and construction requirements of the Fair Housing Act and HUD's 
implementing regulations at 24 CFR part 100, and the Americans with 
Disabilities Act of 1990;
    (iii) Acquisition and Relocation. Certification of Compliance with 
the acquisition and relocation requirements of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970, as 
amended (49 CFR part 24 and 24 CFR part 891.155(e));
    (iv) Formation of Owner Corporation. Certification that you will 
form an ``Owner'' (24 CFR 891.205) after issuance of the capital 
advance; cause the Owner to file a request for determination of 
eligibility and a request for capital advance, and provide sufficient 
resources to the Owner to insure the development and long-term 
operation of the project, including capitalizing the Owner at firm 
commitment processing in an amount sufficient to meet its obligations 
in connection with the project;
    (v) Supportive Services. Certification that you will not require 
residents to accept any supportive services as a condition of 
occupancy; and,
    (vi) Davis-Bacon. Certification of compliance with the Davis-Bacon 
requirements and the Contract Work Hours and Safety Standards Act.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    In accordance with 24 CFR part 50, all Section 202 assistance is 
subject to the National Environmental Policy Act of 1969 and applicable 
related Federal environmental authorities. The environmental review 
provisions of the Section 202 Program regulations are in 24 CFR 
891.155(b).

IX. Authority

    The Section 202 Supportive Housing for the Elderly Program is 
authorized by section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), 
as amended. See section 801 of the Cranston-Gonzalez National 
Affordable Housing Act (NAHA)(Pub. L. 101-625; approved November 28, 
1990); the Housing and Community Development Act of 1992 (HCD Act of 
1992)(Pub.L. 102-550; approved October 28, 1992), and the Rescissions 
Act (Pub.L. 104-19; enacted on July 27, 1995).

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Funding Availability for the Section 811 Program of Supportive 
Housing for Persons With Disabilities

Program Overview

    Purpose of the Program. This program provides funding for 
supportive housing for very low-income persons with disabilities who 
are at least 18 years old.
    Available Funds. Approximately $87,236,604.
    Eligible Applicants. Nonprofit organizations that have a section 
501(c)(3) tax exemption from the Internal Revenue Service.
    Application Deadline. May 27, 1999.
    Match Requirements. No.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Application Kits, Further Information, and 
Technical Assistance

    Application Due Date. Submit your completed application on or 
before 6:00 pm, local time on May 27, 1999 at the address shown below. 
See the Application Submission Procedures of the General Section of 
this SuperNOFA for further information.
    Address for Submitting Applications. Submit your completed 
application(s) (an original and four copies) to the Director of the 
appropriate Multifamily Hub Office or Multifamily Program Center as 
listed in Appendix A to this program section of the SuperNOFA.
    The application kit also includes a listing of the Multifamily Hubs 
and Program Centers, their addresses and telephone numbers, including 
TTY numbers. This information is also available from HUD's SuperNOFA 
Information Center at 1-800-HUD-8929 and from the Internet through the 
HUD web site at http://www.hud.gov.
    For Application Kits. For an application kit and any supplemental 
information, please call HUD's SuperNOFA Information Center at 1-800-
HUD-8929. Persons with hearing or speech impairments may call the 
Center's TTY number at 1-800-483-2209. When requesting an application 
kit, please refer to the Section 811 Program and provide your name, 
address (including zip code), and telephone number (including area 
code). The application kit also will be available on the Internet 
through the HUD web site at http://www.hud.gov and from the appropriate 
Multifamily Hub Office or Multifamily Program Center.
    For Further Information and Technical Assistance. For further 
information and technical assistance, please contact the appropriate 
Multifamily Hub Office or Multifamily Program Center, or Gail 
Williamson at HUD Headquarters at (202) 708-2866, or access the 
Internet at http://www.hud.gov. HUD encourages minority organizations 
to participate in this program and strongly recommends prospective 
applicants attend the local HUD Office workshop. At the workshops, HUD 
will explain application procedures and requirements, as well as 
address concerns such as local market conditions, building codes and 
accessibility requirements, historic preservation, floodplain 
management, displacement and relocation, zoning, and housing costs. If 
you are interested in attending the workshop, make sure that your name, 
address and telephone number are on the appropriate HUD Office's 
mailing list so that you will be informed of the date, time and place 
of the workshop. Persons with disabilities should call the appropriate 
HUD Office to assure that any necessary arrangements can be made to 
enable their attendance and participation in the workshop.
    If you cannot attend the workshop, call the appropriate HUD Office 
if you have any questions regarding the submission of applications to 
that particular office and to request any materials distributed at the 
workshop.

II. Amount Allocated

    Approximately $87,236,604 is available for the Section 811 Program 
of Supportive Housing for Persons with Disabilities. The FY 1999 HUD 
Appropriations Act (Appropriations Act) provides $194,000,000 for 
capital advances, including amendments to capital advance contracts; 
for supportive housing for persons with disabilities, as authorized by 
section 811 of the NAHA; and for project rental assistance, including 
amendments to contracts for project rental assistance. Twenty-five 
percent of this amount is being set aside for tenant-based rental 
assistance for persons with disabilities administered through public 
housing agencies (PHAs) and nonprofit organizations and will be 
announced in the Federal Register at a later date.
    In accordance with the waiver authority provided in the 
Appropriations Act, the Secretary is waiving the following statutory 
and regulatory provision: The term of the project rental assistance 
contract is reduced from 20 years to 5 years. HUD anticipates that at 
the end of the contract terms, renewals will be approved subject to the 
availability of funds. In addition to this provision, HUD will reserve 
project rental assistance contract funds based on 75 percent rather 
than on 100 percent of the current operating cost standards for 
approved units in order to take into account the average tenant 
contribution toward rent.
    The allocation formula used for Section 811 reflects the ``relevant 
characteristics of prospective program participants,'' as specified in 
24 CFR 791.402(a). The FY 1999 formula consists of two data elements 
from the 1990 Decennial Census: (1) the number of non-institutionalized 
persons age 16 or older with a work disability and a mobility or self-
care limitation and (2) the number of non-institutionalized persons age 
16 or older having a mobility or self-care limitation but having no 
work disability.
    A work disability is defined as a health condition that had lasted 
for 6 or more months which limited the kind (restricted the choice of 
jobs) or amount (not able to work full time) of work a person could do 
at a job or business. A mobility limitation is defined as a health 
condition that lasted for 6 or more months, making it difficult for the 
person to go outside the home alone. This includes outside activities, 
such as shopping or visiting a doctor's office. A self-care limitation 
is defined as a health care limitation that had lasted for 6 or more 
months which made it difficult for the person to take care of his/her 
own personal needs such as dressing, bathing, or getting around inside 
the home. Temporary (short term) problems such as broken bones that are 
expected to heal normally are not considered problems.
    Under the Section 811 Program, each HUD Office jurisdiction 
receives sufficient capital advance funds for a minimum of 10 units. 
The total amount of capital advance funds to support this minimum set-
aside is then subtracted from the total capital advance available. The 
remainder is fair shared to each HUD Office jurisdiction whose fair 
share would exceed the set-aside based on the allocation formula fair 
share factors described below.
    The fair share factors were developed by taking the sum of the 
number of persons in each of the two elements for each state, or state 
portion, of each local HUD Office jurisdiction as a percent of the sum 
of the two data elements from the Decennial Census, described above, 
for the total United States. The resulting percentage for each local 
HUD Office is then adjusted to reflect the relative cost of providing 
housing among the local

[[Page 9864]]

HUD Office jurisdictions. The adjusted needs percentage for each local 
HUD Office is then multiplied by the total amount of capital advance 
funds available nationwide.
    The Section 811 capital advance funds have been allocated, based on 
the formula above, to 51 local HUD Offices as shown on the following 
chart:

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[[Page 9869]]

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    HUD provides capital advances and contracts for project rental 
assistance in accordance with 24 CFR part 891. Capital advances may be 
used to construct, rehabilitate, or acquire structures (including 
structures from the Federal Deposit Insurance Corporation (formerly 
held by the Resolution Trust Corporation) (FDIC/RTC), to be developed 
into a variety of housing options described in C. below. Capital 
advance funds bear no interest and are based on development cost limits 
published in this SuperNOFA. Repayment of the capital advance is not 
required as long as the housing remains available for at least 40 years 
for occupancy by very low-income persons with disabilities.
    Project rental assistance contract (PRAC) funds are used to cover 
the difference between the tenants' contributions toward rent (30 
percent of adjusted income) and the HUD-approved cost to operate the 
project.

(B) Eligible Applicants

    Nonprofit organizations with a section 501(c)(3) tax exemption from 
the Internal Revenue Service are the only eligible applicants for this 
program. A Sponsor or Co-sponsor may not apply for more than 100 units 
of housing for persons with disabilities in a single Hub. In addition, 
a Sponsor or Co-sponsor may not apply for more units in a given HUD 
Office than allocated for the Section 811 program in that HUD Office, 
or for more than 10 percent of the total units allocated in all HUD 
offices. A single application must propose at least five units, not 
necessarily in one structure. Affiliated entities that submit separate 
applications are considered a single entity for the purposes of these 
limits.

(C) Eligible Activities

    The types of housing that can be developed with Section 811 capital 
advance funds include small group homes, independent living projects 
and dwelling units in multifamily housing developments, condominium and 
cooperative housing.

(D) Ineligible Activities

    Section 811 funds may not be used for any of the following:
    (1) Nursing homes, infirmaries and medical facilities;
    (2) Transitional housing facilities;
    (3) Manufactured housing facilities;
    (4) Intermediate care facilities;
    (5) Community centers, with or without special components for use 
by persons with disabilities;
    (6) Sheltered workshops and centers for persons with disabilities;
    (7) Headquarters for organizations for persons with disabilities; 
and
    (8) Refinancing of Sponsor-owned facilities without rehabilitation.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, you must comply with the following 
requirements:

(A) Statutory Requirements and Regulatory Requirements

    You must comply with all statutory and regulatory requirements 
listed in Sections III(A) and IX of this program section of the 
SuperNOFA.

(B) HUD/RHS Agreement

    HUD and the Rural Housing Service (RHS) have an agreement to 
coordinate the administration of the agencies' respective rental 
assistance programs. As a result, HUD is required to notify RHS of 
applications for housing assistance it receives. This notification 
gives RHS the opportunity to comment if it has concern about the demand 
for additional assisted housing and possible harm to existing projects 
in the same housing market area. HUD will consider RHS comments in its 
review and application selection process.

(C) Development Cost Limits

    (1) The following development cost limits, adjusted by locality as 
described in paragraph (C)(3) below, must be used to determine the 
capital advance amount reserved for projects for persons with 
disabilities:
    (a) For independent living projects and dwelling units in 
multifamily housing developments, condominium and cooperative housing: 
The total development cost of the project attributable to dwelling use 
(less the incremental development cost and the capitalized operating 
costs associated with any excess amenities and design features you will 
pay for) may not exceed:
Non-elevator Structures
    $33,638 per family unit without a bedroom;
    $38,785 per family unit with one bedroom;
    $46,775 per family unit with two bedrooms;
    $59,872 per family unit with three bedrooms;
    $66,700 per family unit with four bedrooms.
For Elevator Structures
    $35,400 per family unit without a bedroom;
    $40,579 per family unit with one bedroom;
    $49,344 per family unit with two bedrooms;
    $63,834 per family unit with three bedrooms;
    $70,070 per family unit with four bedrooms.
    (b) For group homes only:

------------------------------------------------------------------------
                                                  Type of disability
                                             ---------------------------
                No. residents                                  chronic
                                                physical/       mental
                                              developmental    illness
------------------------------------------------------------------------
3...........................................      $154,452      $149,094
4...........................................       165,276       158,376
5...........................................       176,100       167,658
6...........................................       186,912       176,940
------------------------------------------------------------------------

    (c) These cost limits reflect those costs reasonable and necessary 
to develop a project of modest design that complies with HUD minimum 
property standards; the minimum group home requirements of 24 CFR 
891.310(a) (if applicable); the accessibility requirements of 24 CFR 
891.120(b) and 891.310(b); and the project design and cost standards of 
24 CFR 891.120.
    (2) Increased development cost limits.
    (a) HUD may increase the development cost limits set forth in 
Section IV(C)(1) of this program section of the SuperNOFA by up to 140 
percent in any geographic area where the cost levels require, and may 
increase the development cost limits by up to 160 percent on a project-
by-project basis. This increase may include covering additional costs 
to make dwelling units accessible through rehabilitation.
    (b) If HUD finds that high construction costs in Alaska, Guam, the 
Virgin Islands or Hawaii make it infeasible to construct dwellings, 
without the sacrifice of sound standards of construction, design, and 
livability, within the development cost limits provided in Section 
IV(C)(1) of this program section of the SuperNOFA, the amount of 
capital advances may be increased to compensate for such costs. The 
increase may not exceed the limits established under this section 
(including any high cost area adjustment) by more than 50 percent.
    (c) For group homes only, HUD Offices may approve increases in the 
development cost limits in paragraph (C)(1)(b), above, in areas where 
you can provide sufficient documentation that high land costs limit or 
prohibit project feasibility. An example of acceptable documentation is 
evidence of at least three land sales which have actually

[[Page 9870]]

taken place (listed prices for land are not acceptable) within the last 
two years in the area where your project is to be built. The average 
cost of the documented sales must exceed seven percent of the 
development cost limit for your project in order for an increase to be 
considered.

(D) Sites

    The National Affordable Housing Act requires you to provide in your 
application either (1) evidence of site control, or (2) a reasonable 
assurance that you will have control of a site within six months of 
notification of fund reservation. Accordingly, if you have control of a 
site at the time you submit your application, you must include evidence 
of such as described in Section VI(B)(4)(d)(i) of this program section 
of the SuperNOFA relative to site control and in the application kit. 
If you do not have site control, you must provide the information 
required in Section VI(B)(4)(d)(ii) of this program section of the 
SuperNOFA relative to identification of a site and in the application 
kit for identified sites as a reasonable assurance that site control 
will be obtained within six months of fund reservation notification.
    Under Criterion 1 of Rating Factor 3 in Section V(D), below, 
related to your proposed site, your application has the potential of 
earning 15 points. Criterion 1(a) is related to site approvability and 
is worth a maximum of 10 points. Regardless of whether you submit 
evidence of site control or have identified a site without obtaining 
control of it, the site will be evaluated based on its proximity or 
accessibility to shopping, medical facilities, transportation, places 
of worship, recreational facilities, places of employment and other 
necessary services to the intended tenants. It will also be evaluated 
to determine whether it complies with the site and neighborhood 
standards in 24 CFR 891.125. Criterion 1(b) relates to the existence of 
legally acceptable site control. If you (1) submit evidence of site 
control for all proposed sites in your application, (2) the evidence is 
determined to be legally acceptable for all of the sites and (3) all of 
the sites are approvable (i.e., receive a score of 1 or higher for 
Criterion 1(a), your application will receive 5 points for Criterion 
1(b)).
    If your application contains evidence of site control where either 
the evidence or the site is not approvable, it will not be rejected 
provided you indicate in your application that you are willing to seek 
an alternate site and provide an assurance that site control will be 
obtained within six months of fund reservation notification.

(E) Supportive Services

    You are required to include a supportive services plan and a 
certification from the appropriate State or local agency that the 
provision of services identified in your Supportive Services Plan is 
well designed to serve the special needs of persons with disabilities 
who will live in your proposed project. Section VI(B)(4)(e) of this 
program section of the SuperNOFA, below, outlines the information that 
must be in the Supportive Services Plan. You must submit one copy of 
your Supportive Services Plan to the appropriate State or local agency 
well in advance of the application submission deadline date for the 
State or local agency to review your Supportive Services Plan (Exhibit 
4(d) of the application kit) and complete the Supportive Services 
Certification (Exhibit 7(l) of the application kit) and return it to 
you so that you can include it in the application you submit to HUD.
    (1) HUD will reject your application if the supportive services 
certification:
    (i) Is not submitted with your application and is not submitted to 
HUD within the 14-day cure period; or
    (ii) Indicates that the provision of supportive services is not 
well designed to meet the special needs of persons with disabilities.
    (2) In addition, if the agency completing the certification will be 
a major funding or referral source for your proposed project or be 
responsible for licensing the project, HUD will reject your application 
if either the agency's supportive services certification indicates--or, 
where the agency fails to complete item 2 or 3 of the certification, 
HUD determines that:
    (i) You failed to demonstrate that supportive services will be 
provided on a consistent long-term basis; and/or
    (ii) The proposed housing is not consistent with State or local 
agency plans/policies governing development and operation of housing 
for persons with disabilities.
    Any prospective resident of a Section 811 project who believes he/
she needs supportive services must be given the choice to be 
responsible for acquiring his/her own services or to take part in your 
Supportive Services Plan which must be designed to meet the individual 
needs of each resident. Residents or applicants may not be required to 
accept any supportive service as a condition of occupancy or admission.

(F) Project Size Limits

    (1) Group home--The minimum number of persons with disabilities 
that can reside in a group home is three, and the maximum number is 
six. Only one person per bedroom is allowed, unless two residents 
choose to share one bedroom or a resident determines he/she needs 
another person to share his/her bedroom.
    (2) Independent living project--The minimum number of units that 
can be applied for in one application is five; not necessarily in one 
structure. The maximum number of persons with disabilities that can be 
housed in an independent living project is 18.
    (3) Exceptions--If you are submitting an application with site 
control, you may request an exception to the above project size limits 
by providing the information required in Section VI(B) in this program 
section of the SuperNOFA, below.

(G) Minimum Capital Investment

    Selected nonprofit organizations must provide a minimum capital 
investment of one-half of one percent of the HUD-approved capital 
advance amount not to exceed a maximum of $10,000.

(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 (Economic Opportunities for Low and Very 
Low Income Persons) and its implementing regulations at 24 CFR part 
135. To comply, 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 who are 
recipients of government assistance for housing; and to business 
concerns which provide economic opportunities to low and very low 
income persons.

(I) Accessibility

    If you intend to construct, substantially rehabilitate, or acquire, 
with or without rehabilitation, structures to be used as housing for 
persons with disabilities, you should note 24 CFR 891.310, which 
requires that your project meets accessibility requirements. In 
addition, you should note that 24 CFR 8.4(b)(5) prohibits the selection 
of a site or location which has the purpose or effect of excluding 
persons with disabilities from the Federally assisted program or 
activity. Thus, if you choose an existing structure, make sure that it 
can be made accessible without resulting in an infeasible project.

[[Page 9871]]

V. Application Selection Process

(A) Review for Curable Deficiencies

    You should ensure that your application is complete before 
submitting it to the appropriate HUD office. HUD will screen all 
applications received by the deadline to determine if there are any 
curable deficiencies. A curable deficiency is a missing Exhibit or 
portion of an Exhibit that will not affect the rating of your 
application. The following is a list of the only deficiencies that will 
be considered curable in a Section 811 application:
Exhibits
(1)
    *Form 92016-CA (Application Form)
(2)
    *(a) Articles of Incorporation
    *(b) By-laws
    *(c) IRS tax exemption ruling
(4)
    (c)(ii) Energy efficiency
    *(d)(i) Evidence of site control (if submitted with application)
    (d)(vi) SHPO letter
    (d)(vii) Seek alternate site
    (d)(viii) Exception to project size limits
(5)
    Applications submitted to other offices
(6)
    Relocation
(7)
    *(a) Standard Form 424
    (b) Drug-free Workplace
    (c) Form-HUD 50071 and Standard Form-LLL
    (d) Form-HUD 2880
    (e) Form-HUD 2992
    (f) Executive Order 12372
    (g) Form-HUD 2991 Certification of Consistency with Consolidated 
Plan
    (h) Conflict of Interest Resolution
    *(i) Resolution for Commitment to Project
    (k) Combined Certifications
    (l) Supportive Services Certification
    (m) Lead-Based Paint Certification
    The HUD Office will notify you in writing if your application is 
missing any of the above exhibits or portions of exhibits and will give 
you 14 days from the date of the notification to submit the information 
required to cure the noted deficiencies. The items identified by an 
asterisk (*) must be dated on or before the application deadline date.

(B) Rating

    HUD will review and rate your application(s) in accordance with the 
Application Selection Process in the General Section of this SuperNOFA 
with the following exception. HUD will not reject your application 
based on technical review without notifying you of the rejection with 
all the reasons for rejection and providing you an opportunity to 
appeal. You will have 14 calendar days from the date of HUD's written 
notice to appeal a technical rejection to the HUD Office. The HUD 
Office will make a determination on an appeal before making its 
selection recommendations. Your application(s) will be either rated or 
technically rejected at the end of technical review. If your 
application meets all program eligibility requirements after completion 
of technical review, it will be rated according to the Rating Factors 
in V(D) below.

(C) Ranking and Selection Procedures

    Applications that have a total base score of 60 points or more 
(without the addition of EC/EZ bonus points) and meet all of the 
applicable threshold requirements of Section II(B) of the General 
Section of the SuperNOFA will be eligible for selection and will be 
placed in rank order. HUD will select applications, after adding any 
bonus points for EC/EZ, based on rank order, up to and including the 
last application that can be funded out of each HUD office's 
allocation. HUD Offices must not skip over any applications in order to 
select one based on the funds remaining. After making the initial 
selections, however, HUD may use any residual funds to select the next 
rank-ordered application by reducing the number of units by no more 
than 10 percent rounded to the nearest whole number, provided the 
reduction will not render the project infeasible. For this purpose, 
however, HUD will not reduce the number of units in projects of five 
units or less.
    After this process is completed, residual funds from all HUD 
Offices within each Multifamily Hub will be combined. These funds will 
be used first to restore units to projects reduced by HUD Offices based 
on the above instructions. Second, additional applications within each 
Multifamily Hub will be selected in rank order with only one 
application selected per HUD Office. More than one application may be 
selected per HUD office if there are no approvable applications in 
other HUD Offices within the Multifamily Hub. This process will 
continue until there are no more approvable applications within the 
Multifamily Hub that can be selected with the remaining funds. 
Applications may not be skipped over to select one based on funds 
remaining. However, HUD may use any remaining residual funds, to select 
the next rank-ordered application by reducing the number of units by no 
more than 10 percent rounded to the nearest whole number, provided the 
reduction will not render the project infeasible or result in the 
project being less than 5 units.
    Funds remaining after these processes are completed will be 
returned to Headquarters. HUD will use these residual funds first to 
fund Ryder Memorial Hospital, Inc., in the jurisdiction of the HUD 
Caribbean Multifamily Program Center, a FY 1998 application which was 
not funded due to HUD error. Second, HUD will use these funds to 
restore units to projects reduced by HUD Offices as a result of the 
instructions for using their residual funds. Third, HUD will use these 
funds for selecting applications based on field offices' rankings, 
beginning with the highest rated application nationwide. Only one 
application will be selected per HUD Office from the national residual 
amount, excluding the Caribbean Multifamily Program Center, already 
funded. If there are no approvable applications in other HUD Offices, 
the process will begin again with the selection of the next highest 
rated application nationwide. This process will continue until all 
approvable applications are selected using the available remaining 
funds.

(D) Factors for Award Used To Evaluate and Rate Applications

    HUD will rate applications that successfully complete technical 
processing using the Rating Factors set forth below and in accordance 
with the application submission requirements in Section VI(B), below. 
The maximum number of points an application may receive under this 
program is 102. This includes two (2) EZ/EC bonus points, as described 
in the General Section of this SuperNOFA.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (25 Points)
    This factor addresses the extent to which you have the 
organizational resources to successfully implement the proposed 
activities in a timely manner. Submit information responding to this 
factor in accordance with Application Submission Requirements in 
paragraphs (B)(2), (B)(3)(a), (B)(3)(b), and (B)(3)(e) of Section VI of 
this program section of the SuperNOFA.
    In rating this factor, HUD will consider the extent to which your 
application demonstrates your ability to develop and operate the 
proposed housing on a long-term basis, considering the following:
    (1) (15 points) The scope, extent, and quality of your experience 
in providing

[[Page 9872]]

housing or related services to those proposed to be served by the 
project and the scope of the proposed project (i.e., number of units, 
services, relocation costs, development, and operation) in relationship 
to your demonstrated development and management capacity as well as 
your financial management capability; and
    (2) (10 points) The scope, extent, and quality of your experience 
in providing housing or related services to minority persons or 
families. For purposes of this program section of the SuperNOFA, 
``minority'' means the basic racial and ethnic categories for Federal 
statistics and administrative reporting, as defined in OMB's 
Statistical and Policy Directive No. 15. (See 62 FR 58782 October 30, 
1997.)
Rating Factor 2: Need/Extent of the Problem (15 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed activities to address a documented problem in the 
target area. Submit information responding to this factor in accordance 
with Application Submission Requirements in paragraphs (B)(4)(a) and 
(B)(4)(b) of Section VI of this program section of the SuperNOFA. In 
evaluating this factor, HUD will consider:
    The extent of the need for the project in the area based on a 
determination by the HUD Office. In making this determination, HUD will 
consider your evidence of need in the area, as well as other economic, 
demographic, and housing market data available to the HUD Office. The 
data could include the availability of existing comparable subsidized 
housing for persons with disabilities and current occupancy in such 
housing, comparable subsidized housing for persons with disabilities 
under construction or for which fund reservations have been issued, 
and, in accordance with an agreement between HUD and RHS, comments from 
RHS on the demand for additional comparable subsidized housing and the 
possible harm to existing projects in the same housing market area. The 
Department also will review more favorably those applications which 
establish a connection between the proposed project and the community's 
Analysis of Impediments to Fair Housing Choice (AI) or other planning 
document that analyzes fair housing issues and is prepared by a local 
planning or similar organization. You must show how the proposed 
project will address an impediment to fair housing choice described in 
the AI or meet a need identified in the other type of planning 
document.
Rating Factor 3: Soundness of Approach (40 Points)
    This factor addresses the quality and effectiveness of your 
proposal. There must be a clear relationship between the proposed 
activities, the community's needs and purposes of the program funding 
for your application to receive points for this factor. Submit 
information responding to this factor in accordance with Application 
Submission Requirements in paragraphs (B)(4)(c), (B)(4)(d), and 
(B)(4)(e) of Section VI of this program section of the SuperNOFA. In 
evaluating this factor, HUD will consider the following:
    (1)(a) (10 points) Site approvability--The proximity or 
accessibility of the site to shopping, medical facilities, 
transportation, places of worship, recreational facilities, places of 
employment, and other necessary services to the intended tenants; 
adequacy of utilities and streets, and freedom of the site from adverse 
environmental conditions (based on site visit for site control projects 
only); and compliance with site and neighborhood standards in 24 CFR 
891.125;
    (b) (5 points) Site control--If your application contains legally 
acceptable site control for all proposed sites and all of the proposed 
sites are approvable (i.e., receive a score of 1 or higher on Criterion 
1(a)), your application will receive 5 points for site control;
    (2) (10 points) The suitability of the site from the standpoints of 
promoting a greater choice of housing opportunities for minorities and 
persons with disabilities and affirmatively furthering fair housing. In 
reviewing this criterion, HUD will assess whether the site meets the 
site and neighborhood standards at 24 CFR 891.125(b) and (c) by 
examining relevant data in your application or in the HUD Office. If 
appropriate, HUD may visit the site. The site will be deemed acceptable 
if it increases housing choice and opportunity by (a) expanding housing 
opportunities in non-minority neighborhoods (if located in such a 
neighborhood); or (b) contributing to the revitalization of and 
reinvestment in minority neighborhoods, including improvement of the 
level, quality and affordability of services furnished to minority 
persons with disabilities.
    (3) (5 points) The extent to which the proposed design of the 
project, including both the exterior and interior design, will meet any 
special needs of persons with disabilities the housing is expected to 
serve;
    (4) (5 points) The extent to which the proposed design of the 
project and its placement in the neighborhood will facilitate the 
integration of the residents into the surrounding community; and
    (5) (5 points) Your board includes persons with disabilities 
(including persons who have disabilities similar to those of the 
prospective residents).
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure other community 
resources which can be combined with HUD's program resources to achieve 
program purposes. Submit information responding to this factor in 
accordance with Application Submission Requirements in paragraphs 
(B)(3)(c) and (B)(3)(d) of Section VI of this program section of the 
SuperNOFA.
    (1) (5 points) The extent of local government support (including 
financial assistance, donation of land, provision of services, etc.) 
for the project; and
    (2) (5 points) The extent of your activities in the community, 
including previous experience in serving the area where the project is 
to be located, and your demonstrated ability to enlist volunteers and 
raise local funds.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you coordinated your 
activities with other known organizations, participate or promote 
participation in the community's Consolidated Planning process, and are 
working towards addressing a need in a holistic and comprehensive 
manner through linkages with other activities in the community. Submit 
information responding to this factor in accordance with Application 
Submission Requirements in paragraphs (B)(3)(f), (B)(3)(g), (B)(3)(h), 
and (B)(3)(i) of Section VI of this program section of the SuperNOFA.
    (1) (4 points) You involved persons with disabilities (including 
minority persons with disabilities) in the development of the 
application, and will involve persons with disabilities (including 
minority persons with disabilities) in the development and operation of 
the project;
    (2) (2 points) The extent to which you coordinated your application 
with other organizations to complement and/or support the proposed 
project;
    (3) (2 points) The extent to which you demonstrated that you have 
been actively involved, or if not currently active, the steps you will 
take to become actively involved in the community's Consolidated 
Planning process to identify and address a need/problem that is related 
in whole or part, directly

[[Page 9873]]

or indirectly to the proposed project; and
    (4) (2 points) The extent to which you developed or plan to develop 
linkages with other activities, programs or projects related to the 
proposed project to coordinate your activities so solutions are 
holistic and comprehensive.
Bonus Points
    (2 bonus points) Location of proposed site in an EZ/EC area, as 
described in the General Section of this SuperNOFA. Submit the 
information responding to the bonus points in accordance with the 
Application Submission Requirements in paragraph (B)(7)(j) of Section 
VI of this program section of the SuperNOFA.

VI. Application Submission Requirements

    (A) Application. Your application must include all of the 
information, materials, forms, and exhibits listed in Section VI(B) of 
this program section of the SuperNOFA (unless you were selected for a 
Section 811 fund reservation within the last three funding cycles). If 
you qualify for this exception, you are not required to submit the 
information described in Section VI(B)(2)(a), (b), and (c), below, of 
this program section of the SuperNOFA (Exhibits 2.a., b., and c. of the 
application kit), which are the articles of incorporation (or other 
organizational documents), by-laws, and the IRS tax exemption, 
respectively. If there has been a change in any of the eligibility 
documents since your previous HUD approval, you must submit the updated 
information in your application. The HUD Office will verify your 
indication of previous HUD approval by checking the project number and 
approval status with the appropriate HUD Office.
    In addition to this relief of paperwork burden in preparing 
applications, you are able to use information and exhibits previously 
prepared for prior applications under Section 811, Section 202, or 
other funding programs. Examples of exhibits that may be readily 
adapted or amended to decrease the burden of application preparation 
include, among others, those on previous participation in the Section 
202 or Section 811 programs, your experience in the provision of 
housing and services, supportive services plans, community ties, and 
experience serving minorities.

    Note: You may apply for a scattered site project in one 
application.

    (B) General Application Requirements.
    (1) Form HUD-92016-CA, Application for Section 811 Supportive 
Housing Capital Advance.
    (2) Evidence of your and each Co-Sponsor's legal status as a 
nonprofit organization, including the following:
    (a) Articles of Incorporation, constitution, or other 
organizational documents;
    (b) By-laws;
    (c) IRS section 501(c)(3) tax exemption ruling (this must be 
submitted by you and all Co-Sponsors, including churches).

    Note: If you received a section 811 fund reservation within the 
last three funding cycles, you are not required to submit the 
documents described in (a), (b), and (c), above. instead, you must 
submit the project number of the latest application selected and the 
hud office to which it was submitted. If there have been any 
modifications or additions to the subject documents, indicate such, 
and submit the new material.

    (d) The number of people on your board and the number of those 
people who have disabilities (including disabilities similar to those 
of the prospective residents).
    (3) A description of your purpose, community ties, and experience, 
including the following:
    (a) A description of your purpose, current activities and how long 
you have been in existence;
    (b) A description of your ties to the community at large and to the 
minority and disabled communities in particular;
    (c) A description of local government support for the project 
(including financial assistance, donation of land, provision of 
services, etc.);
    (d) Letters of support for your organization and for the proposed 
project from organizations familiar with the housing and supportive 
services needs of the persons with disabilities that you expect to 
serve in the proposed project;
    (e) A description of your housing and/or supportive services 
experience. The description should include any rental housing projects 
(including integrated housing developments) and/or supportive services 
facilities that you have sponsored, owned, and/or operated; your past 
or current involvement in any programs other than housing that 
demonstrates your management capabilities (including financial 
management) and experience, and your experience in serving persons with 
disabilities and minorities; and the reasons for receiving any 
increases in fund reservations for developing and/or operating any 
previously funded Section 811 or Section 202 projects. The description 
should include data on the facilities and services provided, the 
racial/ethnic composition of the populations served, if available, and 
information and testimonials from residents or community leaders on the 
quality of the activities. Examples of activities that could be 
described include housing counseling, nutrition and food services, 
special housing referral, screening and information projects.
    (f) A description, if applicable, of your efforts to involve 
persons with disabilities (including minority persons with disabilities 
and persons with disabilities similar to those of the prospective 
residents) in the development of your application and in the 
development and operation of the project.
    (g) A description of the steps you took to identify and coordinate 
your application with other organizations to complement and/or support 
your proposed project as well as the steps you will take, if funded, to 
share information on solutions and outcomes relative to the development 
of your proposed project.
    (h) A description of your involvement in the community's 
Consolidated Planning process, including:
    (i) An identification of the lead/facilitating agency that 
organizes/administers the process;
    (ii) An identification of the Consolidated Plan issue areas in 
which you participate;
    (iii) Your level of participation in the process, including active 
involvement with any neighborhood-based organizations, associations or 
any committees that support programs and activities that enhance 
projects, or the lives of residents of projects, such as the one 
proposed in your application.
    If you are not currently active, describe the specific steps you 
will take to become active in the Consolidated Planning process. 
(Consult the local HUD Office for the identification of the 
Consolidated Plan community process for the appropriate area.)
    (i) A description of the linkages that you have developed or plan 
to develop with other related activities, programs or projects in order 
that the development of the project provides a comprehensive and 
holistic solution to the needs of the target population.
    (4) Project information including the following:
    (a) Evidence of need for supportive housing. Such evidence would 
include a description of the proposed population and evidence 
demonstrating sustained effective demand for supportive housing for the 
proposed population in the market area to be served, taking into 
consideration the

[[Page 9874]]

occupancy and vacancy conditions in existing comparable subsidized 
housing for persons with disabilities, State or local needs assessments 
of persons with disabilities in the area, the types of supportive 
services arrangements currently available in the area, and the use of 
such services as evidenced by data from local social service agencies. 
Also, a description of how information in the community's Analysis of 
Impediments to Fair Housing Choice was used in documenting the need for 
the project.
    (b) A description of how the proposed project will benefit the 
target population and the community in which it will be located;
    (c) A description of the project, including the following:
    (i) A narrative description of the building(s) including the number 
and type of structure(s), number of bedrooms if group home, number of 
units with bedroom distribution if independent living units (including 
dwelling units in multifamily housing developments, condominiums and 
cooperatives), number of residents with disabilities, and any resident 
staff per structure; an identification of all community spaces, 
amenities, or features planned for the housing and a description of how 
the spaces, amenities, or features will be used, and the extent to 
which they are necessary to accommodate the needs of the proposed 
residents. If these community spaces, amenities, or features would not 
comply with the project design and cost standards of Sec. 891.120 and 
the special project standards of Sec. 891.310, you must demonstrate 
your ability and willingness to contribute both the incremental 
development cost and continuing operating cost associated with the 
community spaces, amenities, or features; and a description of how the 
design of the proposed project will promote the integration of the 
residents into the surrounding community; and (ii) A description of 
whether and how the project will promote energy efficiency, and, if 
applicable, innovative construction or rehabilitation methods or 
technologies to be used that will promote efficient construction.
    (d) Evidence of control of an approvable site, OR identification of 
a site for which you provide a reasonable assurance that you will 
obtain control within 6 months from the date of fund reservation (if 
you are approved for funding).
    (i) If you are submitting an application with site control, you 
must submit the following:
    (1) Acceptable evidence of site control, as evidenced by one of the 
following:
    (A) Deed or long-term leasehold which evidences that you have title 
to or a leasehold interest in the site. If a leasehold, the term of the 
lease must be at least 50 years;
    (B) Contract of sale for the site which is free of any limitations 
affecting ability to deliver ownership to you after you receive and 
accept a notice of Section 811 capital advance. The only condition for 
closing on the sale can be your receipt and acceptance of the capital 
advance;
    (C) Option to purchase or for a long-term leasehold which must 
remain in effect for one year from the date on which the applications 
are due. The option agreement may consist of a single one year term or 
may include one or more rights to renew up to one year solely at your 
discretion. The only condition on which the option may be terminated is 
if you are not awarded a fund reservation.
    (D) If the site is covered by a mortgage under a HUD program, you 
must submit evidence that consent to release of the site from the 
mortgage has been obtained or is being requested.
    (E) For sites to be acquired from a public body, evidence is needed 
that the public body possesses clear title to the site and has entered 
into a legally binding agreement to lease or convey the site to you 
after you receive and accept a notice of Section 811 capital advance. 
If HUD determines that time constraints of the funding round will not 
permit you to obtain all of the required official actions (e.g., 
approval of Community Planning Boards) that are necessary to convey 
publicly-owned sites, you may include in your application a letter from 
the mayor or director of the appropriate local agency indicating that 
conveyance or leasing of your site is acceptable and only contingent on 
the necessary approval action. In its review of such cases, HUD will 
consider whether it has had satisfactory experience with timely 
conveyance of sites from that public body.
    Whether you have title to the site, a contract of sale, an option 
to purchase or are acquiring a site from a public body, you must 
provide evidence (a title policy or other acceptable evidence) that the 
site is free of any limitations, restrictions, or reverters which could 
adversely affect the use of the site for the proposed project for the 
40-year capital advance period under HUD's regulations and requirements 
(e.g., reversion to seller if title is transferred). Mortgages are not 
considered to be limitations or restrictions that would adversely 
affect the use of the site. If the site is subject to any such 
limitations, restrictions, or reverters, the site will be rejected.

    Note: A Proposed project site may not be acquired or optioned 
from a general contractor (or its affiliate) that will construct the 
section 811 project or from any other development team member.

    (2) Evidence that your project as proposed is permissible under 
applicable zoning ordinances or regulations, or a statement of the 
proposed action required to make your proposed project permissible. You 
must provide the basis for your belief that the proposed action will be 
completed successfully before the submission of the firm commitment 
application (e.g., a summary of the results of any requests for 
rezoning on land in similar zoning classifications and the time 
required for such rezoning, the procedures for obtaining special or 
conditional use permits or preliminary indications of acceptability 
from zoning bodies, etc.).

    Note: You should be aware that under certain circumstances the 
Fair Housing Act requires localities to make reasonable 
accommodations to their zoning ordinances or regulations to offer 
persons with disabilities an opportunity to live in an area of their 
choice. If you are relying upon a theory of reasonable accommodation 
to satisfy the zoning requirement, then you must clearly articulate 
the basis for your reasonable accommodation theory.

    (3) A narrative topographical and demographic description of the 
suitability of the site and area as well as a description of the area 
surrounding the site, the characteristics of the neighborhood, how the 
site will promote greater housing opportunities for minorities and 
persons with disabilities thereby affirmatively furthering fair 
housing.

    Note: You can best demonstrate your commitment to affirmatively 
furthering fair housing by describing how proposed activities will 
assist the jurisdiction in overcoming impediments to fair housing 
choice identified in the applicable jurisdiction's Analysis of 
Impediments (AI) to Fair Housing Choice, which is a component of the 
jurisdiction's Consolidated Plan, or any other planning document 
that addresses fair housing issues. The applicable Consolidated Plan 
and AI may be the Community's, the County's, or the State's, to 
which input should have been provided by local community 
organizations, agencies in the community, and residents of the 
community. Alternatively, a document that addresses fair housing 
issues and remedies to barriers to fair housing in the community 
that was previously prepared by a local planning, or similar 
organization, may be used. Applicable impediments could include a 
lack

[[Page 9875]]

of units that are accessible to persons with disabilities, a lack of 
transportation services or other assistance that would serve persons 
with disabilities, or the need for improved housing quality and 
services for all persons with disabilities.

    (4) A map showing the location of the site and the racial 
composition of the neighborhood, with the area of racial concentration 
delineated;
    (5) A Phase I Environmental Site Assessment, in accordance with the 
American Society for Testing and Material (ASTM) Standards E 1527-93, 
as amended. The Phase I study must be completed and submitted with the 
application. Therefore, it is important that you start the site 
assessment process as soon after publication of this SuperNOFA as 
possible.
    If the Phase I study indicates the possible presence of 
contamination and/or hazards, you must decide whether to continue with 
this site or choose another site. Should you choose another site, the 
same environmental site assessment procedure identified above must be 
followed for that site.

    Note: For properties to be acquired from the FDIC/RTC, include a 
copy of the FDIC/RTC prepared Transaction Screen Checklist or Phase 
I Environmental Site Assessment, and applicable documentation, per 
the FDIC/RTC Environmental Guidelines.

    If you choose to continue with the original site on which the Phase 
I study indicated contamination or hazards, you must undertake a 
detailed Phase II Environmental Site Assessment by an appropriate 
professional. If the Phase II Assessment reveals site contamination, 
the extent of the contamination and a plan for clean-up of the site 
must be submitted to the local HUD Office. The plan for clean-up must 
include a contract for remediation of the problem(s) and an approval 
letter from the applicable Federal, State, and/or local agency with 
jurisdiction over the site. In order for your application to be 
considered as an application with site control you must submit this 
information to the local HUD Office on or before June 28, 1999.

    Note: This could be an expensive undertaking. you must pay for 
the cost of any clean-up and/or Remediation.

    (6) A letter from the State Historic Preservation Officer (SHPO) 
indicating whether the proposed site(s) has any historical 
significance. If you cannot obtain a letter from the SHPO due to the 
SHPO not responding to your request or the SHPO responding that it 
cannot or will not comply with the requirement, you must submit the 
following:
    (A) a letter indicating that you attempted to get the required 
letter from the SHPO but that the SHPO either had not responded to your 
request or would not honor or recognize your request;
    (B) a copy of your letter to the SHPO requesting the required 
letter; and
    (C) a copy of the SHPO's response, if available.
    (7) A statement that you are willing to seek a different site if 
the preferred site is unapprovable and that site control will be 
obtained within six months of notification of fund reservation.
    (8) If you are requesting an exception to the project size limits 
found in Section IV(F) of this program section of the SuperNOFA, 
describe why the site was selected and demonstrate the following:
    (A) People with disabilities similar to those of the prospective 
tenants have indicated their acceptance or preference to live in 
housing with as many units/people as proposed for your project;
    (B) The increased number of people is necessary for the economic 
feasibility of your project;
    (C) Your project is compatible with other residential development 
and the population density of the area in which your project is to be 
located;
    (D) The increased number of people will not prohibit their 
successful integration into the community;
    (E) Your project is marketable in the community;
    (F) The size of your project is consistent with State and/or local 
policies governing similar housing for the proposed population; and
    (G) A statement that you are willing to have your application 
processed at the project size limit should HUD not approve the 
exception.
    (ii) If you have identified a site, but do not have it under 
control, you must submit the following information:
    (1) A description of the location of the site, including its street 
address, its unit number (if condominium), neighborhood/community 
characteristics (to include racial and ethnic data), amenities, 
adjacent housing and/or facilities, and how the site will promote 
greater housing opportunities for minorities and persons with 
disabilities thereby affirmatively furthering fair housing. You can 
best demonstrate your commitment to affirmatively furthering fair 
housing by describing how your proposed activities will assist the 
jurisdiction in overcoming impediments to fair housing choice 
identified in the community's AI or any other planning document that 
addresses fair housing issues. Examples of the applicable impediments 
include the need for improved housing quality and services for minority 
persons with disabilities and the need for quality services for persons 
with disabilities within the type and quality of similar services and 
housing in minority areas;
    (2) A description of the activities undertaken to identify the 
site, as well as what actions must be taken to obtain control of the 
site, if approved for funding;
    (3) An indication as to whether the site is properly zoned. If it 
is not, an indication of the actions necessary for proper zoning and 
whether these can be accomplished within six months of fund reservation 
award, if approved for funding;
    (4) A status of the sale of the site; and
    (5) An indication as to whether the site would involve relocation.
    (e) A supportive services plan (a copy of which must be sent to the 
appropriate State or local agency as instructed in Section IV(E) of 
this program section of the SuperNOFA) that includes:
    (i) A detailed description of whether the housing is expected to 
serve persons with physical disabilities, developmental disabilities, 
chronic mental illness or any combination of the three. Include how and 
from whom/where persons will be referred to and accepted for occupancy 
in the project. You may, with the approval of the Secretary, limit 
occupancy within housing developed under this program section of the 
SuperNOFA to persons with disabilities who have similar disabilities 
and require a similar set of supportive services in a supportive 
housing environment. However, the Owner must permit occupancy by any 
qualified person with a disability who could benefit from the housing 
and/or services provided, regardless of the person's disability.
    (ii) If you are requesting approval to limit occupancy in your 
proposed project(s), you must submit the following:
    (1) A description of the population of persons with disabilities to 
which occupancy will be limited;
    (2) An explanation of why it is necessary to limit occupancy of the 
proposed project(s) to the population described in (1) above. This 
should include but is not limited to:
    (A) An explanation of how limiting occupancy to a subcategory of 
persons with disabilities promotes the goals of the Section 811 
Program; and,
    (B) An explanation of why the housing and/or service needs of this 
population cannot be met in a more integrated setting.
    (3) A description of your experience in providing housing and/or 
supportive services to the proposed occupants; and
    (4) A description of how you will ensure that the occupants of the

[[Page 9876]]

proposed project(s) will be integrated into the neighborhood and 
surrounding community.
    (iii) A detailed description of the supportive service needs of the 
persons with disabilities that the housing is expected to serve.
    (iv) You must develop, and submit with your application, a list of 
community service providers, including those that are consumer-
controlled, and include letters of intent to provide services to 
residents of the proposed project(s) from as many potential service 
providers as possible. You must make this list available to any 
residents who wish to be responsible for acquiring their own supportive 
services. However, a provider may not require residents to accept any 
particular service.
    (v) A detailed description of a comprehensive supportive services 
plan that you have organized for those residents who do not wish to 
take responsibility for acquiring their own services. Such a plan must 
include the following:
    (1) The name(s) of the agency(s) that will be responsible for 
providing the supportive services;
    (2) The evidence of each service provider's capability and 
experience in providing such supportive services (applicable even if 
you will be the service provider);
    (3) A description of how, when, how often, and where (on/off-site) 
the services will be provided;
    (4) Identification of the extent of State and/or local agency 
involvement in the project (i.e., funding for the provision of 
supportive services, referral of residents, or licensing the project). 
If there will be any State or local agency involvement, a description 
of the State or local agency's philosophy/policy concerning housing for 
the population to be served and a demonstration that your application 
is consistent with State or local plans and policies governing the 
development and operation of housing for the same disabled population; 
and
    (5) Letters of intent from service providers (including those that 
are consumer-controlled) or funding sources, indicating commitments to 
fund or to provide the supportive services, or that a particular 
service will be available to proposed residents. If you will be 
providing any supportive services or will be coordinating the provision 
of any of the supportive services, a letter indicating your commitment 
to either provide the supportive services or ensure their provision for 
the life of the project.
    (vi) A description of residential staff, if needed.
    (vii) Assurances that any supportive services you provide to 
residents who wish to receive them will be based on the resident's 
individual needs; and
    (viii) A statement that you will not condition occupancy on the 
resident's acceptance of any supportive services.
    (5) A list of the applications, if any, that you have submitted or 
are planning to submit to any other HUD Office in response to this 
Section 811 funding announcement under this SuperNOFA or announcement 
for funding under this SuperNOFA of the Section 202 Program of 
Supportive Housing for the Elderly. Indicate, by HUD Office, the number 
of units requested and the proposed location by city and State for each 
application. Include a list of all FY 1998 and prior year projects to 
which you are a party, identified by project number and HUD Office, 
which have not been finally closed.
    (6) A statement that:
    (a) Identifies all persons (families, individuals, businesses, and 
nonprofit organizations) by race/minority group and status as owners or 
tenants occupying the property on the date of submission of the 
application for a capital advance;
    (b) Indicates the estimated cost of relocation payments and other 
services;
    (c) Identifies the staff organization that will carry out the 
relocation activities; and
    (d) Identifies all persons that have moved from the site within the 
last 12 months. (This requirement applies to applications with site 
control only. Sponsors of applications with identified sites that are 
selected will be required to submit this information at a later date 
once they have obtained site control.)

    Note: If any of the relocation costs will be funded from sources 
other than the section 811 capital advance, you must provide 
evidence of a firm commitment of these funds. When evaluating 
applications, HUD will consider the total cost of proposals (i.e., 
cost of site acquisition, relocation, construction and other project 
costs).

    (7) Certifications and Resolutions. In addition to the 
certifications listed in the General Section of this SuperNOFA with the 
exception of SF-424A, SF-424B, SF-424C, SF-424D and the OMB Circulars 
which are not required, you are required to submit signed copies of the 
following:
    (a) Standard Form 424. Application for Federal Assistance and 
indication of whether you are delinquent on any Federal debt. (See 
instructions for submitting this form in the Consolidated Application 
Submissions section of the General Section of the SuperNOFA.)
    (b) Drug-Free Workplace (HUD-50070). Certification to provide a 
drug-free workplace.
    (c) Payments to Influence Federal Transactions (HUD-50071) and 
Standard Form LLL, Disclosure of Lobbying Activities. Certification of 
whether any of the funds received will be used to influence any Federal 
transactions and disclosure of those activities, if applicable.
    (d) Applicant/Recipient Disclosure/Update Report, including Social 
Security Numbers and Employee Identification Numbers, (HUD-2880). A 
disclosure of assistance from other government sources received in 
connection with the project.
    (e) Employment, Engagement of Services, Awarding or Funding of 
Contracts, Subgrants, etc. (24 CFR 24.510).
    (f) Executive Order 12372 Certification. A certification that you 
have submitted a copy of your application, if required, to the State 
agency (single point of contact) for State review in accordance with 
Executive Order 12372.
    (g) Certification of Consistency with the Consolidated Plan (Plan) 
(Form HUD-2991) for the jurisdiction in which the proposed project will 
be located. The certification must be made by the unit of general local 
government if it is required to have, or has, a complete Plan. 
Otherwise, the certification may be made by the State, or by the unit 
of general local government if the project will be located within the 
jurisdiction of the unit of general local government authorized to use 
an abbreviated strategy, and if it is willing to prepare such a Plan.
    All certifications must be made by the public official responsible 
for submitting the Plan to HUD. The certifications must be submitted as 
part of the application by the application submission deadline date set 
forth in this SuperNOFA. The Plan regulations are published in 24 CFR 
part 91.
    (h) A certified Board Resolution that no officer or director of the 
Sponsor or Owner has or will have any financial interest in any 
contract with the Owner or in any firm or corporation that has or will 
have a contract with the Owner, including a current listing of all duly 
qualified and sitting officers and directors by title and the beginning 
and ending dates of each person's term.
    (i) A Certified Board Resolution Acknowledging Responsibilities of 
Sponsorship, long-term support of the project(s), your willingness to 
assist the Owner to develop, own, manage and provide appropriate 
services in connection with the proposed project,

[[Page 9877]]

and that it reflects the will of your membership, and your willingness 
to fund the estimated start-up expenses, the Minimum Capital Investment 
(one-half of one-percent of the HUD-approved capital advance, not to 
exceed $10,000), and the estimated cost of any amenities or features 
(and operating costs related thereto) that would not be covered by the 
approved capital advance.
    (j) Certification of Consistency with the EZ/EC Strategic Plan. A 
certification that the project is consistent with the EZ/EC strategic 
plan, is located within the EZ/EC, and serves EZ/EC residents.
    (k) Sponsor's Combined Certifications. (i) Certification in 
Connection with the Development and Operation of a Section 811 Project. 
A certification of compliance with the requirements of the Fair Housing 
Act, Title VI of the Civil Rights Act, the Age Discrimination Act of 
1975, Section 3 of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701u) and the implementing regulations at 24 CFR part 135, the 
affirmative fair housing marketing requirements of 24 CFR part 200, 
subpart M and the implementing regulations at 24 CFR part 108, and 
other applicable Federal, State and local laws prohibiting 
discrimination and promoting equal opportunity including affirmatively 
furthering fair housing.
    (ii) Design and Cost Standards. Certification of Compliance with 
HUD's Section 811 project design and cost standards (24 CFR 891.120 and 
891.310), the Uniform Federal Accessibility Standards (24 CFR 40.7), 
Section 504 of the Rehabilitation Act of 1973 and HUD's implementing 
regulations at 24 CFR part 8, and for covered multifamily dwellings 
designed and constructed for first occupancy after March 13, 1991, the 
design and construction requirements of the Fair Housing Act and HUD's 
implementing regulations at 24 CFR part 100, and the Americans with 
Disabilities Act of 1990.
    (iii) Acquisition and Relocation. Certification of Compliance with 
the acquisition and relocation requirements of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970, as 
amended (49 CFR part 24 and 24 CFR part 891.155(e)).
    (iv) Formation of Owner Corporation. Certification that you will 
form an ``Owner'' (24 CFR 891.305) after issuance of the capital 
advance; cause the Owner to file a request for determination of 
eligibility and a request for capital advance, and provide sufficient 
resources to the Owner to insure the development and long-term 
operation of the project, including capitalizing the Owner at firm 
commitment processing in an amount sufficient to meet its obligations 
in connection with the project.
    (v) Supportive Services. Certification that you will not require 
residents to accept any supportive services as a condition of 
occupancy; and,
    (vi) Davis-Bacon. Certification of compliance with the Davis-Bacon 
requirements and the Contract Work Hours and Safety Standards Act.
    (l) Supportive Services Certification. A certification from the 
appropriate State or local agency identified in the application kit 
indicating whether the:
    (i) Provision of supportive services is well designed to serve the 
needs of persons with disabilities the housing is expected to serve;
    (ii) Supportive services will be provided on a consistent, long-
term basis; and
    (iii) Proposed housing is consistent with State or local plans and 
policies governing the development and operation of housing to serve 
individuals of the proposed occupancy category if the State or local 
agency will provide funding for the provision of supportive services, 
refer residents to the project or license the project. (The name, 
address, and telephone number of the appropriate agency will be 
identified in the application kit and can also be obtained from the 
appropriate HUD Office.)
    (m) Certification that you will comply with the requirements of the 
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846) and 
implementing regulations at 24 CFR part 35 (except as superseded in 24 
CFR 891.325).

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    In accordance with 24 CFR part 50, all Section 811 assistance is 
subject to the National Environmental Policy Act of 1969 and applicable 
related Federal environmental authorities. The environmental review 
provisions of the Section 811 Program regulations are in 24 CFR 
891.155(b).

IX. Authority

    Section 811 of the Cranston-Gonzalez National Affordable Housing 
Act (the NAHA) (Pub. L. 101-625, approved November 28, 1990), as 
amended by the Housing and Community Development Act of 1992) (HCD Act 
of 1992) (Pub. L. 102-550, approved October 28, 1992), and by the 
Rescissions Act (Pub. L. 104-19, approved July 27, 1995) authorized a 
new supportive housing program for persons with disabilities, and 
replaced assistance for persons with disabilities previously covered by 
section 202 of the Housing Act of 1959 (section 202 continues, as 
amended by section 801 of the NAHA, and the HCD Act of 1992, to 
authorize supportive housing for the elderly).

Appendix A--Local HUD Offices

    Note: The first line of the mailing address for all offices is 
Department of Housing and Urban Development. Telephone numbers 
listed are not toll-free.

HUD--Boston Hub

Hartford Office

One Corporate Center, 19th Floor, Hartford, CT 06106-1860, (860) 
240-4800, TTY Number: (860) 240-4665

Boston Office

Room 375, Thomas P. O'Neill, Jr. Federal Building, 10 Causeway 
Street, Boston, MA 02222-1092, (617) 565-5234, TTY Number: (617) 
565-5453

Manchester Office

Norris Cotton Federal Building, 275 Chestnut Street, Manchester, NH 
03101-2487, (603) 666-7681, TTY Number: (603) 666-7518

Providence Office

Sixth Floor, 10 Weybosset Street, Providence, RI 02903-3234, (401) 
528-5351, TTY Number: (401) 528-5403

HUD--New York Hub

New York Office

26 Federal Plaza, New York, NY 10278-0068, (212) 264-6500, TTY 
Number: (212) 264-0927

HUD--Buffalo Hub

Buffalo Office

Fifth Floor, Lafayette Court, 465 Main Street, Buffalo, NY 14203-
1780, (716) 551-5755, TTY Number: (716) 551-5787

HUD--Philadelphia Hub

Philadelphia Office

The Wanamaker Building, 100 Penn Square East, Philadelphia, PA 
19107-3390, (215) 656-0600, TTY Number: (215) 656-3452

Charleston Office

Suite 708, 405 Capitol Street, Charleston, WV 25301-1795, (304) 347-
7000, TTY Number: (304) 347-5332

Newark Office

Thirteenth Floor, One Newark Center, Newark, NJ 07102-5260, (201) 
622-7900, TTY Number: (201) 645-3298

Pittsburgh Office

339 Sixth Avenue, Sixth Floor, Pittsburgh, PA 15222-2515, (412) 644-
6428, TTY Number: (412) 644-5747

[[Page 9878]]

HUD--Baltimore Hub

Baltimore Office

Fifth Floor, City Crescent Building, 10 South Howard Street, 
Baltimore, MD 21201-2505, (410) 962-2520, TTY Number: (410) 962-0106

Washington Office

820 First Street, NE, Washington, D.C. 20002-4502, (202) 275-9200, 
TTY Number: (202) 275-0772

Richmond Office

The 3600 Centre, 3600 West Broad Street, P.O. Box 90331, Richmond, 
VA 23230-0331, (804) 278-4507, TTY Number: (804) 278-4501

HUD--Greensboro Hub

Greensboro Office

Koger Building, 2306 West Meadowview Road, Greensboro, NC 27407-
3707, (919) 547-4001, TTY Number: (919) 547-4055

Columbia Office

Strom Thurmond Federal Building, 1835-45 Assembly Street, Columbia, 
SC 29201-2480, (803) 765-5592, TTY Number: (803) 253-3071

HUD--Atlanta Hub

Atlanta Office

Richard B. Russell Federal Building, 75 Spring Street, S.W., 
Atlanta, GA 30303-3388, (404) 331-5136, TTY Number: (404) 730-2654

San Juan Office

New San Juan Office Building, 159 Carlos Chardon Avenue, San Juan, 
PR 00918-1804, (809) 766-6121, TTY Number: (809) 766-5909

Louisville Office

601 West Broadway, P.O. Box 1044, Louisville, KY 40201-1044, (502) 
582-5251, TTY Number: 1-800-648-6056

Knoxville Office

Third Floor, John J. Duncan Federal Building, 710 Locust Street, 
Knoxville, TN 37902-2526, (423) 545-4384, TTY Number: (423) 545-4559

Nashville Office

Suite 200, 251 Cumberland Bend Drive, Nashville, TN 37228-1803, 
(615) 736-5213, TTY Number: (615) 736-2886

HUD--Jacksonville Hub

Jacksonville Office,

Suite 2200, Southern Bell Tower, 301 West Bay Street, Jacksonville, 
FL 32202-5121, (904) 232-2626, TTY Number: (904) 232-1241

Birmingham Office

Suite 300, Beacon Ridge Tower, 600 Beacon Parkway, West, Birmingham, 
AL 35209-3144, (205) 290-7617, TTY Number: (205) 290-7630

Jackson Office

Suite 910, Doctor A.H. McCoy Federal Building, 100 West Capitol 
Street, Jackson, MS 39269-1096, (601) 965-5308, TTY Number: (601) 
965-4171

HUD--Chicago Hub

Chicago Office

Ralph H. Metcalfe Federal Building, 77 West Jackson Boulevard, 
Chicago, IL 60604-3507, (312) 353-5680, TTY Number: (312) 353-5944

Indianapolis Office

151 North Delaware Street, Indianapolis, IN 46204-2526, (317) 226-
6303, TTY Number: (317) 226-7081

HUD--Detroit

Detroit Office

Patrick V. McNamara Federal Building, 477 Michigan Avenue, Detroit, 
MI 48226-2592, (313) 226-7900, TTY Number: (313) 226-6899

HUD--Columbus Hub

Columbus Office

200 North High Street, Columbus, OH 43215-2499, (614) 469-5737, TTY 
Number: (614) 469-6694

CLeveland Office

Fifth Floor, Renaissance Building, 1350 Euclid Avenue, Cleveland, OH 
44115-1815, (216) 522-4065, TTY Number: (216) 522-2261

HUD--Minneapolis Hub

Minneapolis Office

220 Second Street, South, Minneapolis, MN 55401-2195, (612) 370-
3000, TTY Number: (612) 370-3186

Milwaukee Office

Suite 1380, Henry S. Reuss Federal Plaza, 310 West Wisconsin Avenue, 
Milwaukee, WI 53203-2289, (414) 297-3214, TTY Number: (414) 297-3123

HUD--Ft. Worth Hub

Little Rock Office

Suite 900, TCBY Tower, 425 West Capitol Avenue, Little Rock, AR 
72201-3488, (501) 324-5931, TTY Number: (501) 324-5931

New Orleans Office

Ninth Floor, Hale Boggs Federal Building 501 Magazine Street, New 
Orleans, LA 70130-3099, (504) 589-7200, TTY Number: (504) 589-7279

Ft. Worth Office

1600 Throckmorton Street, P.O. Box 2905, Fort Worth, TX 76113-2905, 
(817) 978-9000, TTY Number: (817) 978-9273

Houston Office

Suite 200, Norfolk Tower 2211 Norfolk, Houston, TX 77098-4096, (713) 
313-2274, TTY Number: (713) 834-3274

San Antonio Office

Washington Square, 800 Dolorosa Street, San Antonio, TX 78207-4563, 
(210) 472-6800, TTY Number: (210) 472-6885

HUD--Great Plains

Des Moines Office

Room 239, Federal Building, 210 Walnut Street, Des Moines, IA 50309-
2155, (515) 284-4512, TTY Number: (515) 284-4728

Kansas City Office

Room 200, Gateway Tower II, 400 State Avenue, Kansas City, KS 66101-
2406, (913) 551-5462, TTY Number: (913) 551-6972

Omaha Office

Executive Tower Centre, 10909 Mill Valley Road, Omaha, NE 68154-
3955, (402) 492-3100, TTY Number: (402) 492-3183

Saint Louis Office

Third Floor, Robert A. Young Federal Building, 1222 Spruce Street, 
St. Louis, MO 63103-2836, (314) 539-6583, TTY Number: (314) 539-6331

Oklahoma City Office

500 Main Plaza, 500 West Main Street, Suite 400, Oklahoma City, OK 
73102-2233, (405) 553-7400, TTY Number: (405) 553-7480

HUD--Denver Hub

Denver Office

633 17th Street, Denver, CO 80202-3607, (303) 672-5440, TTY Number: 
(303) 672-5248

HUD--San Francisco Hub

Phoenix Office

Suite 1600, Two Arizona Center, 400 North 5th Street, Phoenix, AZ 
85004-2361, (602) 379-4434, TTY Number: (602) 379-4464

San Francisco Office

Philip Burton Federal Building and U.S. Courthouse, 450 Golden Gate 
Avenue, P.O. Box 36003, San Francisco, CA 94102-3448, (415) 436-
6532, TTY Number: (415) 436-6594

Honolulu Office

Suite 500, 7 Waterfront Plaza, 500 Ala Moana Boulevard, Honolulu, HI 
96813-4918, (808) 522-8175, TTY Number: (808) 522-8193

HUD--Los Angeles Hub

Los Angeles Office

611 West 6th Street, Suite 800, Los Angeles, CA 90015-3801, (213) 
894-8000, TTY Number: (213) 894-8133

HUD--Seattle Hub

Portland Office

400 Southwest Sixth Avenue, Suite 700, Portland, OR 97204-1632, 
(503) 326-2561, TTY Number: (503) 326-3656

BILLING CODE 4210-32-P

  Federal Register / Vol. 64, No. 38 / Friday, February 26, 1999 / 
Notices.  

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BILLING CODE 4210-32-C

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Appendix A To SuperNOFA--HUD Field Office Contact Information

    While all Field Offices have staff who can answer your general 
questions about the SuperNOFA, not all offices have specialists who 
can provide detailed technical guidance. Applicants should look to 
the SuperNOFAs for contact numbers for information on specific 
programs. Office Hour listings are local time. Persons with hearing 
or speech impediments may access any of these numbers via TTY by 
calling the Federal Relay Service at 1-800-877-8339.

New England

Connecticut State Office, One Corporate Center, 19th Floor, 
Hartford, CT 06103-3220, 860-240-4800, Office Hours: 8:00-4:30 PM
Maine State Office, 202 Harlow Street, Chase Bldg. Suite 101, P.O. 
Box 1384, Bangor, ME 04402-1384, 207-945-0467, Office Hours: 8:00 
AM-4:30 PM
Massachusetts State Office, Thomas P. O'Neill, Jr., Federal 
Building, 10 Causeway Street, Room 375, Boston, MA 02222-1092, 617-
565-5234, Office Hours: 8:30 AM-5:00 PM
New Hampshire State Office, Norris Cotton Federal Building, 275 
Chestnut Street, Manchester, NH 03101-2487, 603-666-7681, Office 
Hours: 8:00 AM-4:30 PM
Rhode Island State Office, Sixth Floor, 10 Weybosset Street, 6th 
floor, Providence, RI 02903-2808, 401-528-5230, Office Hours: 8:00 
AM-4:30 PM
Vermont State Office, U.S. Federal Building, Room 237, 11 Elmwood 
Avenue, P.O. Box 879, Burlington, VT 05402-0879, 802-951-6290, 
Office Hours: 8:00 AM-4:30 PM

New York/New England

Albany Area Office, 52 Corporate Circle, Albany, NY 12203-5121, 518-
464-4200, Office Hours: 8:00 AM-4:30 PM
Buffalo Area Office, Lafayette Court, 465 Main Street, Fifth Floor, 
Buffalo, NY 14203-1780, 716-551-5755, Office Hours: 8:00 AM-4:30 PM
Camden Area Office, Hudson Building, 800 Hudson Square, Second 
Floor, Camden, NJ 08102-1156, 609-757-5081, Office Hours: 8:00 AM-
4:30 PM
New Jersey State Office, One Newark Center, 13th Floor, Newark, NJ 
07102-5260, 973-622-7900, Office Hours: 8:00 AM-4:30 PM
New York State Office, 26 Federal Plaza, New York, NY 10278-0068, 
212-264-6500, Office Hours: 8:30 AM-5:00 PM

Mid Atlantic

Delaware State Office, 824 Market Street, Suite 850, Wilmington, DE 
19801-3016, 302-573-6300, Office Hours: 8:00 AM-4:30 PM
District of Columbia Office, 820 First Street, N.E., 3rd Floor, 
Washington, DC 20002-4205, 202-275-9200, Office Hours: 8:00 AM-4:30 
PM
Maryland State Office, City Crescent Building, 10 South Howard 
Street, Fifth Floor, Baltimore, MD 21201-2505, 410-962-2520, Office 
Hours: 8:00 AM-4:30 PM
Pennsylvania State Office, The Wanamaker Building, 100 Penn Square 
East, Philadelphia, PA 19107-3380, 215-656-0600, Office Hours: 8:00 
AM-4:30 PM
Pittsburgh Area Office, 339 Sixth Avenue, Sixth Floor, Pittsburgh, 
PA 15222-2515, 412-644-6428, Office Hours: 8:00 AM-4:30 PM
Virginia State Office, The 3600 Centre, 3600 West Broad Street, 
Richmond, VA 23230-4920, 804-278-4539, Office Hours: 8:00 AM-4:30 PM
West Virginia State Office, 405 Capitol Street, Suite 708, 
Charleston, WV 25301-1795, 304-347-7000, Office Hours: 8:00 AM-4:30 
PM

Southeast/Caribbean

Alabama State Office, Beacon Ridge Tower, 600 Beacon Parkway West, 
Suite 300, Birmingham, AL 35209-3144, 205-290-7617, Office Hours: 
8:00 AM-4:30 PM
Caribbean Office, New San Juan Office Building, 159 Carlos E. 
Chardon Avenue, San Juan, PR 00918-1804, 787-766-5201, Office, 
Hours: 8:00 AM-4:30 PM
Florida State Office, 909 Southeast First Avenue, Rm. 500, Miami, FL 
33131, 305-536-4421, Office Hours: 8:30 AM-5 PM
Georgia State Office, Richard B. Russell Federal Building, 75 Spring 
Street, S.W., Atlanta, GA 30303-3388, 404-331-5136, Office Hours: 
8:00 AM-4:30 PM
Jacksonville Area Office, Southern Bell Tower, 301 West Bay Street, 
Suite 2200, Jacksonville, FL 32202-5121, 904-232-2627, Office Hours: 
8:00 AM-4:30 PM
Kentucky State Office, 601 West Broadway, P.O. Box 1044, Louisville, 
KY 40201-1044, 502-582-5251, Office Hours: 8:00 AM-4:45 PM
Knoxville Area Office, John J. Duncan Federal Building, 710 Locust 
Street, 3rd Floor, Knoxville, TN 37902-2526, 423-545-4384, Office 
Hours: 7:30 AM-4:15 PM
Memphis Area Office, One Memphis Place, 200 Jefferson Avenue, Suite 
1200, Memphis, TN 38103-2335, 901-544-3367, Office Hours: 8:00 AM-
4:30 PM
Mississippi State Office, Doctor A. H. McCoy Federal Building, 100 
West Capital Street, Room 910, Jackson, MS 39269-1096, 601-965-4738, 
Office Hours: 8:00 AM-4:45 PM
North Carolina State Office, Koger Building, 2306 West Meadowview 
Road, Greensboro, NC 27401-3707, 910-547-4000, Office Hours: 8:00 
AM-4:45 PM
Orlando Area Office, Langley Building, 3751 Maguire Blvd, Suite 270, 
Orlando, FL 32803-3032, 407-648-6441, Office Hours: 8:00 AM-4:30 PM
South Carolina State Office, Strom Thurmond Federal Building, 1835 
Assembly Street, Columbia, SC 29201-2480, 803-765-5592, Office 
Hours: 8:00 AM-4:45 PM
Tampa Area Office, Timberlake Federal Building Annex, 501 East Polk 
Street, Suite 700, Tampa, FL 33602-3945, 813-228-2501, Office Hours: 
8:00 AM-4:30 PM
Tennessee State Office, 251 Cumberland Bend Drive, Suite 200, 
Nashville, TN 37228-1803, 615-736-5213, Office Hours: 8:00 AM-4:30 
PM

Midwest

Cincinnati Area Office, 525 Vine Street, 7th Floor, Cincinnati, OH 
45202-3188, 513-684-3451, Office Hours: 8:00 AM-4:45 PM
Cleveland Area Office, Renaissance Building, 1350 Euclid Avenue, 
Suite 500, Cleveland, OH 44115-1815, 216-522-4065, Office Hours: 
8:00 AM-4:40 PM
Flint Area Office, The Federal Building, 605 North Saginaw, Suite 
200, Flint, MI 48502-2043, 810-766-5108, Office Hours: 8:00 AM-4:30 
PM
Grand Rapids Area Office, Trade Center Building, 50 Louis Street, 
NW, 3rd Floor, Grand Rapids, MI 49503-2648, 616-456-2100, Office 
Hours: 8:00 AM-4:30 PM
Illinois State Office, Ralph H. Metcalfe Federal Building, 77 West 
Jackson Blvd, Chicago, IL 60604-3507, 312-353-5680, Office Hours: 
8:15 AM-4:45 PM
Springfield Area Office, 320 W. Washington Street, Springfield, IL 
62701, 217-492-4120, Office Hours: 8:15 AM-4:45 pm
Indiana State Office, 151 North Delaware Street, Indianapolis, IN 
46204-2526, 317-226-6303, Office Hours: 8:00 AM-4:45 PM
Michigan State Office, Patrick V. McNamara Federal Building, 477 
Michigan Avenue, Detroit, MI 48226-2592, 313-226-7900, Office Hours: 
8:00 AM-4:30 PM
Minnesota State Office, 220 Second St., South, Minneapolis, MN 
55401-2195, 612-370-3000, Office Hours: 8:00 AM-4:30 PM
Ohio State Office, 200 North High Street, Columbus, OH 43215-2499, 
614-469-5737, Office Hours: 8:00 AM-4:45 PM
Wisconsin State Office, Henry S. Reuss Federal Plaza, 310 West 
Wisconsin Avenue, Suite 1380, Milwaukee, WI 53203-2289, 414-297-
3214, Office Hours: 8:00 AM-4:30 PM

Southwest

Arkansas State Office, TCBY Tower, 425 West Capitol Avenue, Suite 
900, Little Rock, AR 72201-3488, 501-324-5931, Office Hours: 8:00 
AM-4:30 PM
Dallas Area Office, Maceo Smith Federal Building, 525 Griffin 
Street, Room 860, Dallas, TX 75202-5007, 214-767-8359, Office Hours: 
8:00 AM-4:30 PM
Houston Area Office, Norfolk Tower, 2211 Norfolk, Suite 200, 
Houston, TX 77098-4096, 713-313-2274, Office Hours: 7:45 AM-4:30 PM
Louisiana State Office, Hale Boggs Federal Building, 501 Magazine 
Street, 9th Floor, New Orleans, LA 70130-3099, 504-589-7201, Office 
Hours: 8:00 AM-4:30 PM
Lubbock Area Office, George H. Mahon Federal Building and United 
States Courthouse, 1205 Texas Avenue, Lubbock, TX 79401-4093, 806-
472-7265, Office Hours: 8:00 AM-4:45 PM
New Mexico State Office, 625 Silver Avenue S.W., Suite 100, 
Albuquerque, NM 87102, 505-346-6463, Office Hours: 8:00 A.M.-5:00 PM
Oklahoma State Office, 500 West Main Street, Suite 400, Oklahoma 
City, OK 73102, 405-553-7401, Office Hours: 8:00 AM-4:30 PM
San Antonio Area Office, Washington Square, 800 Dolorosa Street, San 
Antonio, TX 78207-4563, 210-472-6800, Office Hours: 8:00 AM-4:30 PM
Shreveport Area Office, 401 Edwards Street, Suite 1510, Shreveport, 
LA 71101-3289, 318-676-3385, Office Hours: 7:45 AM-4:30 PM
Texas State Office, 1600 Throckmorton Street, P.O. Box 2905, Fort 
Worth, TX 76113-2905, 817-978-9000, Office Hours: 8:00 AM-4:30 PM

[[Page 9881]]

Tulsa Area Office, 50 East 15th Street, Tulsa, OK 74119-4030, 918-
581-7434, Office Hours: 8:00 AM-4:30 PM

Great Plains

Iowa State Office, Federal Building, 210 Walnut Street, Room 239, 
Des Moines, IA 50309-2155, 515-284-4512, Office Hours: 8:00 AM-4:30 
PM
Kansas/Missouri State Office, Gateway Tower II, 400 State Avenue, 
Kansas City, KS 66101-2406, 913-551-5462, Office Hours: 8:00 AM-4:30 
PM
Nebraska State Office, Executive Tower Centre, 10909 Mill Valley 
Road, Omaha, NE 68154-3955, 402-492-3100, Office Hours: 8:00 AM-4:30 
PM
St. Louis Area Office, Robert A. Young Federal Building, 1222 Spruce 
Street, 3rd Floor, St. Louis, MO 63103-2836, 314-539-6583, Office 
Hours: 8:00 AM-4:30 PM

Rocky Mountains

Colorado State Office, 633--17th Street, 14th Floor, Denver, CO 
80202-3607, 303-672-5440, Office Hours: 8:00 AM-4:30 PM
Montana State Office, Federal Office Building, 301 South Park, Room 
340, Drawer 10095, Helena, MT 59626-0095, 406-441-1298, Office 
Hours: 8:00 AM-4:30 PM
North Dakota State Office, Federal Building, P.O. Box 2483, 657 
Second Avenue North, Rm 366, Fargo, ND 58108-2483, 701-239-5136, 
Office Hours: 8:00 AM-4:30 PM
South Dakota State Office, 2400 West 49th Street, Suite I-201, Sioux 
Falls, SD 57105-6558, 605-330-4223, Office Hours: 8:00 AM-4:30 PM
Utah State Office, 257 Tower Building, 257 East--200 South, Suite 
550, Salt Lake City, UT 84111-2048, 801-524-3323, Office Hours: 8:00 
AM-4:30 PM
Wyoming State Office, Federal Office Building, 100 East B Street, 
Room 4229, Casper, WY 82601-1918, 307-261-6250, Office Hours: 8:00 
AM-4:30 PM

Pacific/Hawaii

Arizona State Office, Two Arizona Center, 400 North 5th Street, 
Suite 1600, Phoenix, AZ 85004, 602-379-4434, Office Hours: 8:00 AM-
4:30 PM
California State Office, Philip Burton Federal Building and U.S. 
Courthouse, 450 Golden Gate Avenue, San Francisco, CA 94102-3448, 
415-436-6550, Office Hours: 8:15 AM-4:45 PM
Fresno Area Office, 2135 Fresno Street, Suite 100, Fresno, CA 93721-
1718, 209-487-5033, Office Hours: 8:00 AM-4:30 PM
Hawaii State Office, Seven Waterfront Plaza, 500 Ala Moana 
Boulevard, Suite 500, Honolulu, HI 96813-4918, 808-522-8175, Office 
Hours: 8:00 AM-4:00 PM
Los Angeles Area Office, 611 West 6th Street, Suite 800, Los 
Angeles, CA 90017-3127, 213-894-8000, Office Hours: 8:00 AM-4:30 PM
Nevada State Office, 333 North Rancho Drive, Suite 700, Las Vegas, 
NV 89106-3714, 702-388-6525, Office Hours: 8:00 AM-4:30 PM
Reno Area Office, 3702 South Virginia Ave, Suite G-2, Reno, NV 
89502, 702-784-5356, Office Hours: 8:00 AM-4:30 PM
Sacramento Area Office, 925 L Street, Sacramento, CA 95814-1997, 
916-498-5220, Office Hours: 8:00 AM-4:30 PM
San Diego Area Office, Mission City Corporate Center, 2365 Northside 
Drive, Suite 300, San Diego, CA 92108-2712, 619-557-5310, Office 
Hours: 8:00 AM-4:30 PM
Santa Ana Area Office, 1600 Broadway, Suite 100, Santa Ana, CA 
92706-3927, 1-888-827-5605, 714-796-1200, Office Hours: 8:00 AM-4:30 
PM
Tucson Area Office, Security Pacific Bank Plaza, 33 North Stone 
Avenue, Suite 700, Tucson, AZ 85701-1467, 520-670-6237, Office 
Hours: 8:00 AM-4:30 PM

Northwest/Alaska

Alaska State Office, University Plaza Building, 949 East 36th 
Avenue, Suite 401, Anchorage, AK 99508-4399, 907-271-4170, Office 
Hours: 8:00 AM-4:30 PM
Idaho State Office, Plaza IV, 800 Park Boulevard, Suite 220, Boise, 
ID 83712-7743, 208-334-1990, Office Hours: 8:00 AM-4:30 PM
Oregon State Office, 400 Southwest Sixth Avenue, Suite 700, 
Portland, OR 97204-1632, 503-326-2561, Office Hours: 8:00 AM-4:30 PM
Spokane Area Office, US Courthouse Bldg., 920 W. Riverside, Suite 
588, Spokane, WA 99201-1010, 509-353-0674, Office Hours: 8:00 AM-
4:30 PM
Washington State Office, Seattle Federal Office Building, 909 1st 
Avenue, Suite 200, Seattle, WA 98104-1000, 206-220-5101, Office 
Hours: 8:00 AM-4:30 PM

[FR Doc. 99-4476 Filed 2-25-99; 8:45 am]
BILLING CODE 4210-32-P