[Federal Register Volume 64, Number 43 (Friday, March 5, 1999)]
[Notices]
[Pages 10904-10910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5535]



[[Page 10903]]

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Part VII





Department of Housing and Urban Development





_______________________________________________________________________



Family Unification Program Funding Availability for Fiscal Year 1999; 
Notice

  Federal Register / Vol. 64, No. 43 / Friday, March 5, 1999 / 
Notices  

[[Page 10904]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4414-N-01]


Notice of Funding Availability Family Unification Program Fiscal 
Year 1999

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

ACTION: Notice of Funding Availability (NOFA).

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SUMMARY: Purpose of the Program. The purpose of the Family Unification 
Program is to promote family unification by providing housing 
assistance to families for whom the lack of adequate housing is a 
primary factor in the separation, or the threat of imminent separation, 
of children from their families.
    Available Funds. The $75 million in one-year budget authority will 
support approximately 11,200 Section 8 rental vouchers. A provision in 
the FY 1998 Family Unification Program NOFA indicated that any 
approvable 1998 applications not funded because of insufficient funds 
would be funded first with any Family Unification Program 
appropriations available in FY 1999. Accordingly, these unfunded FY 
1998 applications were funded first in FY 1999 in the order in which 
they were selected in the FY 1998 lottery for the Family Unification 
Program. After funding these previously unfunded FY 1998 applications, 
approximately $28.2 million to fund approximately 4,200 units will be 
available in FY 1999 for new applications for the Family Unification 
Program.
    Eligible Applicants. Public Housing Agencies (PHAs). Indian Housing 
Authorities, Indian tribes and their tribally designated housing 
entities are not eligible.
    Application Deadline. May 28, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under the Family 
Unification Program, please read the balance of this NOFA which will 
provide you with detailed information regarding the submission of an 
application, Section 8 program requirements, the application selection 
process to be used in selecting applications for funding, and other 
valuable information relative to a PHA's application submission and 
participation in the Family Unification Program.

Application Due Dates and Application Submission

    Delivered Applications. The application deadline for delivered 
applications for the Family Unification Program NOFA is May 28, 1999, 
6:00 p.m., local HUD Field Office HUB or local HUD Field Office Program 
Center time.
    This application deadline is firm as to date and hour. In the 
interest of fairness to all competing PHAs, HUD will not consider any 
application that is received after the application deadline. Applicants 
should take this practice into account and make early submission of 
their materials to avoid any risk of loss of eligibility brought about 
by unanticipated delays or other delivery-related problems. HUD will 
not accept, at any time during the NOFA competition, application 
materials sent via facsimile (FAX) transmission.
    Mailed Applications. Applications for the Family Unification 
Program will be considered timely filed if postmarked before midnight 
on the application due date and received by the local HUD Field Office 
HUB or local HUD Field Office Program Center within ten (10) days of 
that date.
    Applications Sent By Overnight Delivery. Overnight delivery items 
will be considered timely filed for the Family Unification Program if 
received before or on the application due date, or upon submission of 
documentary evidence that they were placed in transit with the 
overnight delivery service by no later than the specified application 
due date.
    Official Place of Application Receipt. The original and a copy of 
the application for the Family Unification Program must be submitted to 
the local HUD Field Office HUB, Attention: Director, Office of Public 
Housing; or to the local HUD Field Office Program Center, Attention: 
Program Center Coordinator. The local HUD Field Office HUB or local HUD 
Field Office Program Center is the official place of receipt for all 
applications received in response to this NOFA. For ease of reference, 
the term ``local HUD Field Office'' will be used throughout this NOFA 
to mean the local HUD Field Office HUB or local HUD Field Office 
Program Center.

For Application Kits, Further Information and Technical Assistance

    For Application Kit. An application kit is not available and is not 
necessary for submitting an application for the Family Unification 
Program.
    For Further Information. For answers to your questions, you have 
two options. You may contact the local HUD Field Office. You may also 
contact George C. Hendrickson, Housing Program Specialist, Room 4216, 
Office of Public and Assisted Housing Delivery, Department of Housing 
and Urban Development, 451 Seventh Street, SW, Washington, DC 20410; 
telephone (202) 708-1872, ext. 4064. (This number is not a toll-free 
number). Persons with hearing or speech impairments may access this 
number via TTY (text telephone) by calling the Federal Information 
Relay Service at 1-800-877-8339 (this is a toll free number).
    For Technical Assistance. Prior to the application due date, George 
C. Hendrickson of HUD's Headquarters staff (at the address and 
telephone number indicated above) will be available to provide general 
guidance and technical assistance about this NOFA. Current law does not 
permit HUD staff to assist in preparing the application. Following 
selection, but prior to award, HUD staff will be available to assist in 
clarifying or confirming information that is a prerequisite to the 
offer of an award by HUD.

I. Authority, Purpose, Amount Allocated, and Eligibility

(A) Authority

    The Family Unification Program is authorized by section 8(x) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(x)). The Department 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1999 (Pub.L. 105-276, approved October 21, 
1998), hereinafter referred to as the 1999 Appropriations Act) provides 
funding for the Family Unification Program. Of the approximately $75 
million available under this NOFA, approximately $23.4 million are 
carryover amounts from the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1998 (Pub.L. 105-65, approved October 27, 1997).

(B) Purpose

    The Family Unification Program is a program under which Section 8 
rental assistance is provided to families for whom the lack of adequate 
housing is a primary factor which would result in:
    (1) The imminent placement of the family's child, or children, in 
out-of-home care; or
    (2) The delay in the discharge of the child, or children, to the 
family from out-of-home care.
    Rental vouchers awarded under the Family Unification Program are 
administered by PHAs under HUD's

[[Page 10905]]

regulations for the Section 8 rental voucher program (24 CFR parts 887 
and 982). In prior fiscal years HUD provided funding for rental 
certificates only for the Family Unification Program. In FY 1999, 
however, HUD will be providing rental vouchers only for this program. 
This is due to provisions in the Quality Housing and Work 
Responsibility Act of 1998 that call for the merging of the Section 8 
rental voucher and certificate programs into a rental voucher program. 
HUD intends to publish an interim rule in the spring of FY 1999 to 
implement the new rental voucher program. Since successful applicants 
for the FY 1999 Family Unification Program will not be funded until 
after the implementation of the interim rule, rental vouchers are being 
provided this year for the Family Unification Program in lieu of rental 
certificates.

(C) Amount Allocated

    This NOFA announces the availability of approximately $75 million 
for the Family Unification Program which will provide assistance for 
about 11,200 families. PHAs with a current Section 8 rental voucher and 
certificate program of more than 500 units as shown in the most recent 
HUD-approved program budget may apply for funding for a maximum of 100 
units. PHAs with a current Section 8 rental voucher or certificate 
program of 500 units or less as shown in the most recent HUD-approved 
program budget may apply for a maximum of 50 units. PHAs not currently 
administering either a Section 8 rental voucher or certificate program 
may apply for a maximum of 50 units.
    The amounts allocated under this NOFA were be awarded first to 
those PHAs having submitted approvable applications in FY 1998 but 
which were not funded due to insufficient funding. (The NOFA for FY 
1998's Family Unification Program, FR-4360, provided that unfunded FY 
1998 Family Unification Program applications would be funded first in 
FY 1999 contingent upon available appropriations.) Approximately $46.8 
million was required to fund these applications. The balance of 
approximately $28.2 million in FY 1999 funding for approximately 4,200 
units will be awarded under a national competition based on threshold 
criteria. A national lottery will be conducted to select approvable 
applications for funding if approvable applications are submitted by 
PHAs in FY 1999 for more than the approximately $28.2 million available 
under this NOFA for new applications.
    The Family Unification Program is exempt from the fair share 
allocation requirements of section 213(d) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 1439(d)) and the implementing 
regulations at 24 CFR part 791, subpart D.

(D) Eligible Applicants

    (1) Family Unification Program Eligibility. Any PHA established 
pursuant to State law, including regional (multicounty) or State PHAs, 
may apply for funding under this NOFA. Indian Housing Authorities, 
Indian tribes and their tribally designated housing entities are not 
eligible.
    (2) Eligibility for HUD-Designated Housing Agencies with Major 
Program Findings. Some PHAs currently administering the Section 8 
rental voucher and certificate programs have, at the time of 
publication of this NOFA, major program management findings from 
Inspector General audits, HUD management reviews, or Independent Public 
Accountant (IPA) audits that are open and unresolved or other 
significant program compliance problems. HUD will not accept 
applications for additional funding from these PHAs as contract 
administrators if, on the application deadline date, the findings are 
not closed to HUD's satisfaction. If any of these PHAs want to apply 
for the Family Unification Program, the PHA must submit an application 
that designates another housing agency, nonprofit agency, or contractor 
that is acceptable to HUD. The PHA application must include an 
agreement by the other housing agency or contractor to administer the 
program for the new funding increment on behalf of the PHA and a 
statement that outlines the steps the PHA is taking to resolve the 
program findings. Immediately after the publication of this NOFA, the 
Office of Public Housing in the local HUD Office will notify, in 
writing, those PHAs that are not eligible to apply because of 
outstanding management or compliance problems. The PHA may appeal the 
decision if HUD has mistakenly classified the PHA as having outstanding 
management or compliance problems. Any appeal must be accompanied by 
conclusive evidence of HUD's error (i.e, documentation showing that the 
finding has been cleared) and must be received prior to the application 
deadline.

II. General Requirements and Requirements Specific To the Family 
Unification Program

(A) General Requirements

    (1) Compliance with Fair Housing and Civil Rights Laws. All 
applicants must comply with all fair housing and civil rights laws, 
statutes, regulations, and executive orders as enumerated in 24 CFR 
5.105(a). If an applicant: (a) has been charged with a systemic 
violation of the Fair Housing Act by the Secretary alleging ongoing 
discrimination; (b) is the defendant in a Fair Housing Act lawsuit 
filed by the Department of Justice alleging an ongoing pattern or 
practice of discrimination; or (c) has received a letter of 
noncompliance findings under Title VI of the Civil Rights Act, section 
504 of the Rehabilitation Act of 1973, or section 109 of the Housing 
and Community Development Act, the applicant's application will not be 
evaluated under this NOFA if, prior to the application deadline, the 
charge, lawsuit, or letter of findings has not been resolved to the 
satisfaction of the Department. 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 
necessary to address allegations of ongoing discrimination in the 
policies or practices involved in the charge, lawsuit, or letter of 
findings.
    (2) Additional Nondiscrimination Requirements. Applicants must 
comply with the Americans with Disabilities Act, and Title IX of the 
Education Amendments Act of 1972. In addition to compliance with the 
civil rights requirements listed at 24 CFR 5.105, each successful 
applicant must comply with the nondiscrimination in employment 
requirements of Title VII of the Civil Rights Act of 1964 (42 U.S.C. 
2000e et seq.), the Equal Pay Act (29 U.S.C. 206(d)), the Age 
Discrimination in Employment Act of 1967 (29 U.S.C. 621 et seq.), and 
Titles I and V of the Americans with Disabilities Act (42 U.S.C. 12101 
et seq.).
    (3) Affirmatively Furthering Fair Housing. Applicants have a duty 
to affirmatively further fair housing. Applicants will be required to 
identify the specific steps that they will take to: (a) address the 
elimination of impediments to fair housing that were identified in the 
jurisdiction's Analysis of Impediments (AI) to Fair Housing Choice; (b) 
remedy discrimination in housing; or (c) promote fair housing rights 
and fair housing choice.
    (4) Certifications and Assurances. Each applicant is required to 
submit signed copies of Assurances and Certifications. The standard 
Assurances and Certifications are on Form HUD-52515, Funding 
Application, which includes the Equal Opportunity Certification, 
Certification Regarding Lobbying, and Certification Regarding Drug-Free 
Workplace Requirements.

[[Page 10906]]

(B) Requirements Specific to the Family Unification Program

    (1) Eligibility. (a) Family Unification eligible families. Each PHA 
must modify its selection preference system to permit the selection of 
Family Unification eligible families for the program with available 
funding provided by HUD for this purpose. The term ``Family Unification 
eligible family'' means a family that:
    (i) The public child welfare agency has certified is a family for 
whom the lack of adequate housing is a primary factor in the imminent 
placement of the family's child, or children, in out-of-home care, or 
in the delay of discharge of a child, or children, to the family from 
out-of-home care; and
    (ii) The PHA has determined is eligible for Section 8 rental 
assistance.
    (b) Lack of Adequate Housing. The lack of adequate housing means:
    (i) A family is living in substandard or dilapidated housing; or
    (ii) A family is homeless; or
    (iii) A family is displaced by domestic violence; or
    (iv) A family is living in an overcrowded unit.
    (c) Substandard Housing. A family is living in substandard housing 
if the unit where the family lives:
    (i) Is dilapidated;
    (ii) Does not have operable indoor plumbing;
    (iii) Does not have a usable flush toilet inside the unit for the 
exclusive use of a family;
    (iv) Does not have a usable bathtub or shower inside the unit for 
the exclusive use of a family;
    (v) Does not have electricity, or has inadequate or unsafe 
electrical service;
    (vi) Does not have a safe or adequate source of heat;
    (vii) Should, but does not, have a kitchen; or
    (viii) Has been declared unfit for habitation by an agency or unit 
or government.
    (d) Dilapidated Housing. A family is living in a housing unit that 
is dilapidated if the unit where the family lives does not provide safe 
and adequate shelter, and in its present condition endangers the 
health, safety, or well-being of a family, or the unit has one or more 
critical defects, or a combination of intermediate defects in 
sufficient number or extent to require considerable repair or 
rebuilding. The defects may result from original construction, from 
continued neglect or lack of repair or from serious damage to the 
structure.
    (e) Homeless. A homeless family includes any person or family that:
    (i) Lacks a fixed, regular, and adequate nighttime residence; and
    (ii) Has a primary nighttime residence that is:
--A supervised publicly or privately operated shelter designed to 
provide temporary living accommodations (including welfare hotels, 
congregate shelters, and transitional housing);
--An institution that provides a temporary residence for persons 
intended to be institutionalized; or
--A public or private place not designed for, or ordinarily used as, a 
regular sleeping accommodation for human beings.

    (f) Displaced by Domestic Violence. A family is displaced by 
domestic violence if:
    (i) The applicant has vacated a housing unit because of domestic 
violence; or
    (ii) The applicant lives in a housing unit with a person who 
engages in domestic violence.
    (iii) ``Domestic violence'' means actual or threatened physical 
violence directed against one or more members of the applicant family 
by a spouse or other member of the applicant's household.
    (g) Involuntarily Displaced. For a family to qualify as 
involuntarily displaced because of domestic violence:
    (i) The PHA must determine that the domestic violence occurred 
recently or is of a continuing nature; and
    (ii) The applicant must certify that the person who engaged in such 
violence will not reside with the family unless the HA has given 
advance written approval. If the family is admitted, the PHA may 
terminate assistance to the family for breach of this certification.
    (h) Living in Overcrowded Housing. A family is considered to be 
living in an overcrowded unit if:
    (i) The family is separated from its child (or children) and the 
parent(s) are living in an otherwise standard housing unit, but, after 
the family is re-united, the parents' housing unit would be overcrowded 
for the entire family and would be considered substandard; or
    (ii) The family is living with its child (or children) in a unit 
that is overcrowded for the entire family and this overcrowded 
condition may result in the imminent placement of its child (or 
children) in out-of-home care.
    For purpose of this paragraph (h), the PHA may determine whether 
the unit is ``overcrowded'' in accordance with PHA subsidy standards.
    (i) Detained Family Member. A Family Unification eligible family 
may not include any person imprisoned or otherwise detained pursuant to 
an Act of the Congress or a State law.
    (j) Public child welfare agency (PCWA). PCWA means the public 
agency that is responsible under applicable State law for determining 
that a child is at imminent risk of placement in out-of-home care or 
that a child in out-of-home care under the supervision of the public 
agency may be returned to his or her family.
    (2) PHA Responsibilities. PHAs must:
    (a) Accept families certified by the PCWA as eligible for the 
Family Unification Program. The PHA, upon receipt of the PCWA list of 
families currently in the PCWA caseload, must compare the names with 
those of families already on the PHA's Section 8 waiting list. Any 
family on the PHA's Section 8 waiting list that matches with the PCWA's 
list must be assisted in order of their position on the waiting list in 
accordance with PHA admission policies. Any family certified by the 
PCWA as eligible and not on the Section 8 waiting list must be placed 
on the waiting list. If the PHA has a closed Section 8 waiting list, it 
must reopen the waiting list to accept a Family Unification Program 
applicant family who is not currently on the PHA's Section 8 waiting 
list;
    (b) Determine if any families with children on its waiting list are 
living in temporary shelters or on the street and may qualify for the 
Family Unification Program, and refer such applicants to the PCWA;
    (c) Determine if families referred by the PCWA are eligible for 
Section 8 assistance and place eligible families on the Section 8 
waiting list;
    (d) Amend the administrative plan in accordance with applicable 
program regulations and requirements;
    (e) Administer the rental assistance in accordance with applicable 
program regulations and requirements; and
    (f) Assure the quality of the evaluation that HUD intends to 
conduct on the Family Unification Program and cooperate with and 
provide requested data to the HUD office or HUD-approved contractor 
responsible for program evaluation.
    (3) Public Child Welfare Agency (PCWA) Responsibilities. A public 
child welfare agency that has agreed to participate in the Family 
Unification Program must:
    (a) Establish and implement a system to identify Family Unification 
eligible families within the agency's caseload and to review referrals 
from the PHA;
    (b) Provide written certification to the PHA that a family 
qualifies as a Family Unification eligible family based upon the 
criteria established in section 8(x) of the United States Housing Act 
of 1937, and this notice;

[[Page 10907]]

    (c) Commit sufficient staff resources to ensure that Family 
Unification eligible families are identified and determined eligible in 
a timely manner and to provide follow-up supportive services after the 
families lease units; and
    (d) Cooperate with the evaluation that HUD intends to conduct on 
the Family Unification Program, and submit a certification with the 
PHA's application for Family Unification funding that the PCWA will 
agree to cooperate with and provide requested data to the HUD office or 
HUD-approved contractor having responsibility for program evaluation.
    (4) Section 8 Rental Voucher Assistance. The Family Unification 
Program provides funding for rental assistance under the Section 8 
rental voucher program.
    PHAs must administer this program in accordance with HUD's 
regulations governing the Section 8 rental voucher program. If Section 
8 rental assistance for a family under this program is terminated, the 
rental assistance must be reissued to another Family Unification 
eligible family for 5 years from the initial date of execution of the 
Annual Contributions Contract subject to the availability of renewal 
funding.

III. Application Selection Process For Funding

(A) Rating and Ranking

    HUD's local HUD Field Offices are responsible for rating the 
applications for the selection criteria established in this NOFA, and 
are responsible for selection of FY 1999 applications that will receive 
consideration for assistance under the Family Unification Program. The 
local HUD Field Offices will initially screen all applications and 
determine any technical deficiencies based on the application 
submission requirements.
    Each application submitted in response to the NOFA, in order to be 
eligible for funding, must receive at least 20 points for Threshold 
Criterion 2, Efforts of PHA to Provide Area-Wide Housing Opportunities 
for Families. Each application must also meet the requirements for 
Threshold Criterion 1, Unmet Housing Needs; Threshold Criterion 3, 
Coordination between HA and Public Child Welfare Agency to Identify and 
Assist Eligible Families; and Threshold Criterion 4, Public Child 
Welfare Agency Statement of Need for Family Unification Program.

(B) Threshold Criteria

(1) Threshold Criterion 1: Unmet Housing Needs
    This criterion requires the PHA to demonstrate the need for an 
equal or greater number of Section 8 rental vouchers than it is 
requesting under this NOFA. The PHA must assess and document the unmet 
housing need for its geographic jurisdiction of families for whom the 
lack of adequate housing is a primary factor in the imminent placement 
of the family's child or children in out-of-home care, or in a delay of 
discharge of a child or children to the family from out-of-home care. 
The results of the assessment must include a comparison of the 
estimated unmet housing needs of such families to the Consolidated Plan 
covering the PHA's jurisdiction.
(2) Threshold Criterion 2: Efforts of PHA to Provide Area-Wide Housing 
Opportunities for Families (60 Points)
    (a) Description: Many PHAs have undertaken voluntary efforts to 
provide area-wide housing opportunities for families. The efforts 
described in response to this selection criterion must be beyond those 
required by federal law or regulation such as the portability 
provisions of the Section 8 rental voucher and certificate programs. 
PHAs in metropolitan and non-metropolitan areas are eligible for points 
under this criterion. The local HUD Field Office will assign points to 
PHAs that have established cooperative agreements with other PHAs or 
created a consortium of PHAs in order to facilitate the transfer of 
families and their rental assistance between PHA jurisdictions. In 
addition, the local HUD Field Office will assign points to PHAs that 
have established relationships with nonprofit groups to provide 
families with additional counseling, or have directly provided 
counseling, to increase the likelihood of a successful move by the 
families to areas that do not have large concentrations of poverty.
    (b) Rating and Assessment: The local HUD Field Office will assign 
10 points for any of the following assessments for which the PHA 
qualifies and add the points for all the assessments (maximum of 60 
points) to determine the total points for this Selection Criterion:
    (i) 10 points--Assign 10 points if the PHA documents that it 
participates in an area-wide rental voucher and certificate exchange 
program where all PHAs absorb portable Section 8 families.
    (ii) 10 Points--Assign 10 points if the PHA documents that its 
administrative plan does not include a ``residency preference'' for 
selection of families to participate in its rental voucher and 
certificate programs or the PHA states that it will eliminate 
immediately any ``residency preference'' currently in its 
administrative plan.
    (iii) 10 Points--Assign 10 points if the PHA documents that PHA 
staff will provide housing counseling for families that want to move to 
low-poverty or non-minority areas, or if the PHA has established a 
contractual relationship with a nonprofit agency or a local 
governmental entity to provide housing counseling for families that 
want to move to low-poverty or non-minority areas. The five PHAs 
approved for the FY 1993 Moving to Opportunity (MTO) for Fair Housing 
Demonstration and any other PHAs that receive counseling funds from HUD 
(e.g., in settlement of litigation involving desegregation or 
demolition of public housing, regional opportunity counseling, or mixed 
population projects) may qualify for points under this assessment, but 
these PHAs must identify all activities undertaken, other than those 
funded by HUD, to expand housing opportunities.
    (iv) 10 Points--Assign 10 points if the PHA documents that it 
requested from HUD, and HUD approved, the authority to utilize 
exceptions to the fair market rent limitations as allowed under 24 CFR 
882.106(a)(4) to allow families to select units in low-poverty or non-
minority areas.
    (v) 10 Points--Assign 10 points if the PHA documents that it 
participates with other PHAs in using a metropolitan wide or combined 
waiting list for selecting participants in the program.
    (vi) 10 Points--Assign 10 points if the PHA documents that it has 
implemented other initiatives that have resulted in expanding housing 
opportunities in areas that do not have undue concentrations of poverty 
or minority families.
(3) Threshold Criterion 3: Coordination Between PHA and Public Child 
Welfare Agency to Identify and Assist Eligible Families
    The application must describe the method that the PHA and the PCWA 
will use to identify and assist Family Unification eligible families. 
The application must include a letter of intent from the PCWA stating 
its commitment to provide resources and support for the program. The 
PCWA letter of intent and other information must include an explanation 
of: the method for identifying Family Unification eligible families, 
the PCWA's certification process for determining Family Unification 
eligible

[[Page 10908]]

families, the responsibilities of each agency, the assistance that the 
PCWA will provide to families in locating housing units, the PCWA staff 
resources committed to the program, the past PCWA experience 
administering a similar program, and the PCWA/PHA cooperation in 
administering a similar program.
(4) Threshold Criterion 4: Public Child Welfare Agency Statement of 
Need for Family Unification Program
    The application must include a statement by the PCWA describing the 
need for a program providing assistance to families for whom lack of 
adequate housing is a primary factor in the placement of the family's 
children in out-of-home care or in the delay of discharge of the 
children to the family from out-of-home care in the area to be served, 
as evidenced by the caseload of the public child welfare agency. The 
PCWA must adequately demonstrate that there is a need in the PHA's 
jurisdiction for the Family Unification program that is not being met 
through existing programs. The narrative must include specific 
information relevant to the area to be served, about homelessness, 
family violence resulting in involuntary displacement, number and 
characteristics of families who are experiencing the placement of 
children in out-of-home care or the delayed discharge of children from 
out-of-home care as the result of inadequate housing, and the PCWA's 
past experience in obtaining housing through HUD assisted programs and 
other sources for families lacking adequate housing.

(C) Funding FY 1999 Applications

    After the local HUD Field Office has screened PHA applications and 
disapproved any applications unacceptable for further processing (See 
Section V(B) of this NOFA, below), the local HUD Field Office will 
review and rate all approvable applications, utilizing the Threshold 
Criteria and the point assignments listed in this NOFA. The local HUD 
Field Office will send to the Grants Management Center, Attention: 
Michael Diggs, Director, 501 School Street, SW, Suite 800, Washington, 
DC 20024, the following information on each application that passes the 
Threshold Criteria:
    (1) Name and address of the PHA;
    (2) Name and address of the Public Child Welfare Agency;
    (3) Local HUD Field Office contact person and telephone number;
    (4) The requested number of rental vouchers in the PHA application 
and the minimum number of rental vouchers acceptable to the PHA; and
    (5) A completed fund reservation worksheet for the number of rental 
vouchers requested in the application and recommended for approval by 
the local HUD Field Office during the course of its review, and the 
corresponding one-year budget authority.
    The Grants Management Center will select eligible PHAs to be funded 
based on a lottery in the event approvable applications submitted in FY 
1999 are received for more funding than the approximately $28.2 million 
for such applications available under this NOFA. All FY 1999 PHA 
applications identified by the local HUD Field Offices as meeting the 
Threshold Criteria identified in this NOFA will be eligible for the 
lottery selection process. If the cost of funding these applications 
exceeds available funds, HUD will limit the number of FY 1999 
applications selected for any State to no more than 10 percent of the 
budget authority made available under this NOFA in order to achieve 
geographic diversity. If establishing this geographic limit results in 
unspent budget authority, however, HUD may modify this limit to assure 
that all available funds are used.
    Applications will be funded in full for the number of rental 
vouchers requested by the PHA in accordance with the NOFA. If the 
remaining rental voucher funds are insufficient to fund the last PHA 
application in full, however, the Grants Management Center may fund 
that application to the extent of the funding available and the 
applicant's willingness to accept a reduced number of rental vouchers. 
Applicants that do not wish to have the size of their programs reduced 
may indicate in their applications that they do not wish to be 
considered for a reduced award of funds. The Grants Management Center 
will skip over these applicants if assigning the remaining funding 
would result in a reduced funding level.

IV. Application Submission Requirements

(A) Form HUD-52515

    Funding Application, form HUD-52515, must be completed and 
submitted for the Section 8 rental voucher program. This form includes 
all the necessary certifications for Fair Housing, Drug-Free Workplace 
and Lobbying Activities. An application must include the information in 
Section C, Average Monthly Adjusted Income, of form HUD-52515 in order 
for HUD to calculate the amount of Section 8 budget authority necessary 
to fund the requested number of voucher units. PHAs may obtain a copy 
of form HUD-52515 from the local HUD Field Office or may download it 
from the HUD Home page on the internet's world wide web (http://
www.HUD.gov).

(B) Letter of Intent and Narrative

    All the items in this section must be included with the application 
submitted to the local HUD Field Office. Funding is limited, and HUD 
may only have enough funds to approve a smaller amount than the number 
of rental vouchers requested. The PHA must state in its cover letter to 
the application whether it will accept a smaller number of rental 
vouchers and the minimum number of rental vouchers it will accept. The 
cover letter must also include a statement by the PHA certifying that 
the PHA has consulted with the agency or agencies in the State 
responsible for the administration of welfare reform to provide for the 
successful implementation of the State's welfare reform for families 
receiving rental assistance under the family unification program. The 
application must include an explanation of how the application meets, 
or will meet, Threshold Criteria 1 through 4 in Section III(B) of this 
NOFA, below.
    The application must also include a letter of intent from the PCWA 
stating its commitment to provide resources and support for the Family 
Unification Program. The PCWA letter of intent must explain:
    (1) The definition of eligible family unification program families;
    (2) The method used to identify eligible Family Unification Program 
families;
    (3) The process to certify eligible Family Unification Program 
families;
    (4) The PCWA assistance to families to locate suitable housing;
    (5) The PCWA staff resources committed to the program; and (6) PCWA 
experience with the administration of similar programs including 
cooperation with a PHA.
    The PCWA serving the jurisdiction of the PHA is responsible for 
providing the information for Threshold Criterion 4, PCWA Statement of 
Need for Family Unification Program, to the PHA for submission with the 
PHA application. This should include a discussion of the case-load of 
the PCWA and information about homelessness, family violence resulting 
in involuntary displacement, number and characteristics of families who 
are experiencing the placement of children in out-of-home care as a 
result of inadequate housing, and the PCWA's experience in obtaining 
housing through HUD assisted housing programs and other sources for 
families lacking adequate housing. A State-wide Public

[[Page 10909]]

Child Welfare Agency must provide information on Threshold Criterion 4, 
PCWA Statement of Need for Family Unification Program, to all PHAs that 
request such information; otherwise, HUD will not consider applications 
from any PHAs with the State-wide PCWA as a participant in its program.

(C) Evaluation Certifications

    The PHA and the PCWA, in separate certifications, must state that 
the PHA and Public Child Welfare Agency agree to cooperate with HUD and 
provide requested data to the HUD office or HUD-approved contractor 
delegated the responsibility for the program evaluation. No specific 
language for this certification is prescribed by HUD.

    Note: Notice of Repeal of Local Government Comment Requirements.

    Local government requirements that HUD was previously required to 
obtain from the unit of general local government on PHA applications 
for Section 8 rental assistance under Section 213(c) of the Housing and 
Community Development Act of 1974 are no longer required. Section 551 
of the Quality Housing and Work Responsibility Act of 1998 (Pub.L. 105-
276, 112 Stat. 2461, approved October 21, 1998) (QHWRA) repealed the 
provisions of Section 213(c) of the Housing and Community Development 
Act of 1974. Although section 503 of QHWRA establishes an effective 
date of October 1, 1999, for its provisions unless otherwise 
specifically provided, section 503 also permits any QHWRA provision or 
amendment to be implemented by notice, unless otherwise specifically 
provided. Accordingly, HUD's Notice of Initial Guidance on the QHWRA, 
published on February 18, 1999 (64 FR 8192), provided the notice of 
immediate implementation of section 551 of QHWRA, as permitted by 
section 503 of QHWRA.

V. Corrections To Deficient Family Unification Applications

(A) Acceptable Applications

    To be eligible for processing, an application must be received by 
the local HUD Field Office no later than the date and time specified in 
this NOFA. The local HUD Field Office will initially screen all 
applications and notify PHAs of technical deficiencies by letter.
    If an application has technical deficiencies, the PHA will have 14 
calendar days from the date of the issuance of the HUD notification 
letter to submit and the local HUD Field Office receive the missing or 
corrected information. Curable technical deficiencies relate only to 
items that do not improve the substantive quality of the application 
relative to the rating factors.
    Information received by the local HUD Field Office after 3 p.m. 
eastern standard time on the 14th calendar day of the correction period 
will not be accepted and the application will be rejected as 
incomplete.

(B) Unacceptable Applications

    (1) After the 14-calendar day technical deficiency correction 
period, the local HUD Field Office will disapprove PHA applications 
that it determines are not acceptable for processing. The local HUD 
Field Office's notification of rejection letter must state the basis 
for the decision.
    (2) Applications from PHAs that fall into any of the following 
categories will not be processed:
    (a) Applications from PHAs that do not meet the requirements of 
Section II(A)(1) of this NOFA, Compliance With Fair Housing and Civil 
Rights Laws.
    (b) The PHA has serious unaddressed, outstanding Inspector General 
audit findings, HUD management review findings, or independent public 
accountant (IPA) findings for its rental voucher or rental certificate 
programs, or the PHA has failed to achieve a lease-up rate of 90 
percent of units in its HUD-approved budget for the PHA fiscal year 
prior to application for funding in each of its rental voucher and 
certificate programs (excluding the impact of the three-month statutory 
delay requirement effective in FY 1997 and 1998 for the reissuance of 
rental vouchers and certificates). The only exception to this category 
is if the PHA has been identified under the policy established in 
Section I(D)(2) of this NOFA and the PHA makes application with another 
agency or contractor that will administer the family unification 
assistance on behalf of the PHA.
    (c) The PHA has failed to achieve a lease-up rate of at least 90 
percent of the FUP units for which it received rental certificate 
funding in FY 1997 and prior years.
    (d) The PHA is involved in litigation and HUD determines that the 
litigation may seriously impede the ability of the PHA to administer an 
additional increment of rental vouchers .
    (e) After the 14-calendar day technical deficiency correction 
period, a PHA application that does not comply with the requirements of 
24 CFR 982.102 and this NOFA, will be rejected from processing.
    (f) A PHA application submitted after the deadline date.

VI. Findings and Certifications

Paperwork Reduction Act Statement

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

Environmental Requirements and Impact

    In accordance with 24 CFR 50.19(b)(1), activities assisted under 
this program are categorically excluded from the requirements of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321) (``NEPA'') 
and are not subject to environmental review under the related laws and 
authorities. This NOFA provides funding under 24 CFR 887 and 982, which 
do not contain environmental review provisions because they concern 
activities that are listed in 24 CFR 50.19(b) as categorically excluded 
from environmental review under NEPA. Accordingly, under 24 CFR 
50.19(c)(5)(ii), this NOFA is categorically excluded from environmental 
review under NEPA.

Catalog of Federal Domestic Assistance Numbers

    The Federal Domestic Assistance number for this program is: 14.857.

Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this notice will not have substantial direct effects on 
States or their political subdivisions, or the relationship between the 
Federal Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. As a result, 
the notice is not subject to review under the Order. This notice is a 
funding notice and does not substantially alter the established roles 
of HUD, the States, and local governments, including PHAs.

Accountability in the Provision of HUD Assistance

    Section 102 of the Department of Housing and Urban Development 
Reform Act of 1989 (HUD Reform Act) and the regulations codified in 24 
CFR part 4, subpart A contain a number of

[[Page 10910]]

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 are applicable to assistance awarded under this NOFA as follows:
    (1) Documentation and public access requirements. HUD will ensure 
that documentation and other information regarding each application 
submitted pursuant to this NOFA are sufficient to indicate the basis 
upon which assistance was provided or denied. This material, including 
any letters of support, will be made available for public inspection 
for a 5-year period beginning not less than 30 days after the award of 
the assistance. Material will be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations in 24 CFR part 15. In addition, HUD will include the 
recipients of assistance pursuant to this NOFA in its Federal Register 
notice of all recipients of HUD assistance awarded on a competitive 
basis.
    (2) Disclosures. HUD will make available to the public for 5 years 
all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this NOFA. Update reports (also Form 2880) will be made 
available along with the applicant disclosure reports, but in no case 
for a period less than 3 years. All reports--both applicant disclosures 
and updates--will be made available in accordance with the Freedom of 
Information Act (5 U.S.C. 552) and HUD's implementing regulations in 24 
CFR part 15.

Section 103 of the HUD Reform Act

    HUD will comply with its regulations implementing section 103 of 
the HUD Reform Act, codified in 24 CFR part 4, for this funding 
competition. These requirements continue to apply until the 
announcement of the selection of successful applicants.
    HUD employees involved in the review of applications and in the 
making of funding decisions are restrained by part 4 from providing 
advance information to any person (other than persons authorized to 
receive such information) concerning funding decisions, or from 
otherwise giving any applicant an unfair competitive advantage. Persons 
who apply for assistance in this competition should confine their 
inquiries to the subject areas permitted under 24 CFR part 4.
    Applicants or employees who have ethics related questions should 
contact the HUD Office of Ethics (202) 708-3815 (voice), (202) 708-1112 
(TTY). (These are not toll-free numbers.) For HUD employees who have 
specific program questions, the employee should contact the appropriate 
Field Office Counsel.

Prohibition Against Lobbying Activities

    Applicants for funding under this NOFA are subject to the 
provisions of section 319 of the Department of Interior and Related 
Agencies Appropriation Act for Fiscal Year 1991 (31 U.S.C. 1352) (the 
Byrd Amendment) and to the provisions of the Lobbying Disclosure Act of 
1995 (Pub. L. 104-65; approved December 19, 1995).
    The Byrd Amendment, which is implemented in regulations in 24 CFR 
part 87, prohibits applicants for Federal contracts and grants from 
using appropriated funds to attempt to influence Federal executive or 
legislative officers or employees in connection with obtaining such 
assistance, or with its extension, continuation, renewal, amendment, or 
modification. The Byrd Amendment applies to the funds that are the 
subject of this NOFA. Therefore, applicants must file a certification 
stating that they have not made and will not make any prohibited 
payments and, if any payments or agreement to make payments of 
nonappropriated funds for these purposes have been made, a form SF-LLL 
disclosing such payments must be submitted. The certification and the 
SF-LLL are included in the application package.
    The Lobbying Disclosure Act of 1995 (Pub. L. 104-65; approved 
December 19, 1995), requires all persons and entities who lobby covered 
executive or legislative branch officials to register with the 
Secretary of the Senate and the Clerk of the House of Representatives 
and file reports concerning their lobbying activities.

    Dated: March 2, 1999.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 99-5535 Filed 3-4-99; 8:45 am]
BILLING CODE 4210-33-P