[Federal Register Volume 64, Number 44 (Monday, March 8, 1999)]
[Notices]
[Pages 11302-11308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5577]



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Part XI





Department of Housing and Urban Development





_______________________________________________________________________



Mainstream Housing Opportunities for Persons With Disabilities 
(Mainstream Program) Fiscal Year 1999 Funding Availability; Notice

  Federal Register / Vol. 64, No. 44 / Monday, March 8, 1999 / 
Notices  

[[Page 11302]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4415-N-01]


Notice of Funding Availability, Mainstream Housing Opportunities 
for Persons With Disabilities, (Mainstream 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 this program is to 
provide Section 8 rental vouchers to enable persons with disabilities 
(elderly and non-elderly) to rent affordable private housing.
    Available Funds. Approximately $48.5 million in five-year budget 
authority for approximately 1,600 rental vouchers is available under 
this NOFA. Although the NOFA issued on April 30, 1998, for the FY 1998 
Mainstream Program (FR-4359) indicated that approvable applications not 
funded in FY 1998 would receive priority for funding in FY 1999 
contingent upon FY 1999 appropriations, HUD must depart from this 
approach. With the enactment 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 21, 1998), 
Congress directed HUD in the FY 1999 House Committee Report to broaden 
the Section 811 Mainstream Program's eligible applicants to include 
disability non-profit organizations, as well as PHAs.
    Consequently, the approximately $48.5 million available under this 
NOFA will be used to fund new FY 1999 Section 811 program applications 
submitted in response to this NOFA by PHAs and non-profit disability 
organizations. PHAs with unfunded FY 1998 Mainstream Program 
applications will need to submit a new application, in accordance with 
the requirements of this NOFA, in order to be eligible to receive any 
FY 1999 Mainstream Program funding.
    Applications are also being invited, however, from PHAs for one-
year budget authority funding (non-Section 811 funds) that HUD 
anticipates may be available for the Mainstream Program in FY 1999. 
Specifically, any portion of the $40 million in one-year budget 
authority in FY 1999 appropriations related to designated housing 
plans, preferences in occupancy for the elderly in certain types of 
Section 8 project-based developments, or restrictions in occupancy to 
elderly only in certain types of section 202, section 221(d)(3), or 
section 236 developments remaining unobligated will be added to the 
approximately $48.5 million available under this NOFA. This one-year 
budget authority will be for use only for non-elderly disabled 
families.
    Eligible Applicants. PHAs and non-profit disability organizations 
that provide services to disabled families are eligible to apply for 
the $48.5 million in five-year budget authority available under this 
NOFA for applications submitted in FY 1999. Only PHAs are eligible to 
apply for the one-year budget authority (up to a maximum of $40 
million) that may otherwise be available under this NOFA. Indian 
Housing Authorities, Indian tribes and their tribally designated 
housing entities are not eligible to apply.
    The rental vouchers that HUD will provide under this NOFA must be 
made available to eligible disabled families regardless of their type 
of disability. (See the definition of disabled family in paragraph 
II(B)(1) of this NOFA.)
    Application Deadline. May 7, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under the Mainstream 
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 by HUD in selecting applications for funding, and other valuable 
information relative to a PHA's or non-profit disability organization's 
application submission and participation in the Mainstream Program. New 
for FY 1999 is HUD's opening of the Mainstream Program to the receipt 
of applications from non-profit disability organizations that provide 
services to disabled families. Also new is HUD's encouragement to PHAs 
and non-profit disability organizations to view each other as a 
possible contract administrator, or to be otherwise involved in the 
administration of the Section 8 vouchers that either party might 
receive under this NOFA.

Application Due Date and Application Submission

    Delivered Applications. The application deadline for delivered 
applications for the Mainstream Program is May 7, 1999, 6:00 p.m. local 
HUD Field Office HUB or local HUD Field Office Program Center time.
    The above-stated application deadline is firm as to date and hour. 
In the interest of fairness to all competing public housing agencies, 
HUD will treat as ineligible for consideration any application that is 
not received by the application deadline. Applicants should submit 
their materials as early as possible to avoid any risk of loss of 
eligibility because of unanticipated delays or other delivery-related 
problems. HUD will not accept, at any time during the NOFA competition, 
application materials sent by facsimile (FAX) transmission.
    Mailed Applications. Applications for the Mainstream Program will 
be considered timely filed if postmarked before midnight on the 
application due date and received by the local HUD Field Office HUB or 
local HUD Field Office Program Center within ten (10) days of that 
date.
    Applications Sent By Overnight Delivery. Overnight delivery items 
will be considered timely filed for the Mainstream Program if received 
before or on the application due date, or upon submission of 
documentary evidence that they were placed in transit with the 
overnight delivery service by no later than the specified application 
due date.
    Official Place of Application Receipt. The original and a copy of 
the application should be submitted to the local HUD Field Office HUB, 
Attention: Director, Office of Public Housing, or to the local HUD 
Field Office Program Center, Attention: Program Center Coordinator. The 
local HUD Field Office is the official place of receipt for all 
applications submitted in response to this NOFA. For ease of reference, 
the term ``local HUD Field Office'' will be used throughout this NOFA 
to mean the local HUD Field Office HUB and local HUD Field Office 
Program Center.

For Application Kits, Further Information and Technical Assistance

    For Application Kits. An application kit is not being made 
available and is not necessary for submitting an application for 
Mainstream Program funding.
    For Further Information. For answers to your questions, you have 
two options. You may contact the local HUD Field Office, or you may 
contact George C. Hendrickson, Housing Program Specialist, Office of 
Public and Assisted Housing Delivery, Department of Housing and Urban 
Development, Room 4216, 451 Seventh Street, SW, Washington, DC 20410-
8000; telephone (202) 708-1872, ext. 4064. (The number listed above is 
not a toll-free number). Persons with hearing or speech impairments may 
access this number via TTY (text telephone) by calling the Federal 
Information Relay Service at 1-

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800-877-8339 (this is a toll-free number).
    For Technical Assistance. Prior to the application due date, George 
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. Authority for the approximately $48.5 million in 5-
year budget authority available for the Mainstream Program under this 
NOFA (general use rental assistance for persons with disabilities) is 
found in the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1999 (Pub. L. 
105-276, approved October 21, 1998), referred to in this NOFA as the 
HUD FY 1999 Appropriations Act. The HUD FY 1999 Appropriations Act 
states that the Secretary may designate up to 25 percent of the amounts 
earmarked for Section 811 of the National Affordable Housing Act of 
1990 (42 U.S.C. 8013) for tenant-based assistance, as authorized under 
that section. The HUD FY 1999 Appropriations Act provides the Secretary 
of HUD with the authority to waive any provision of section 811 that 
the Secretary determines is not necessary to achieve the objectives of 
tenant-based assistance. Accordingly, the Secretary hereby exercises 
this waiver authority in order to allow non-profit disability 
organizations to be eligible to apply for the five-year budget 
authority for which new applications are being requested under this 
NOFA for FY 1999; i.e., $48.5 million.
    The HUD FY 1999 Appropriations Act also authorizes the use of 
approximately $40 million in one-year budget authority for Section 8 
rental vouchers for non-elderly disabled families in support of 
designated housing plans, for non-elderly disabled families who are not 
currently receiving housing assistance in certain Section 8 project-
based developments due to the owners establishing preferences for the 
admission of elderly families, and for nonelderly disabled families not 
being housed in certain section 202, section 221(d)(3) and section 236 
developments (or portions thereof) where the owners have restricted 
occupancy to elderly families. The HUD FY 1999 Appropriations Act 
states that to the extent the Secretary determines that the FY 1999 
appropriations related to designated housing plans and certain types of 
Section 8 project-based developments and certain types of section 202, 
section 221(d)(3) and section 236 developments are not needed to fund 
applications, the funds may be used for other non-elderly disabled 
families. Any such remaining funds will be used to supplement funding 
for the Mainstream Program. As a result, as much as $40 million in one-
year budget authority may be available in additional funding in FY 1999 
for the Mainstream Program.
    (B) Purpose. The Secretary has established a Mainstream Housing 
Opportunities for Persons with Disabilities Program (Mainstream 
Program) to provide rental vouchers to enable persons with disabilities 
to rent affordable private housing of their choice. In prior fiscal 
years HUD provided funding for rental vouchers and certificates for the 
Mainstream 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 (Pub. L. 105-276, 
112 Stat. 2461, approved October 21, 1998) (QHWRA) 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 Mainstream Program will not be 
funded until after the implementation of the interim rule, rental 
vouchers only are being provided this year for the Mainstream Program.
    The Mainstream Program will assist PHAs and non-profit disability 
organizations in providing Section 8 rental vouchers to a segment of 
the population recognized by HUD's housing research as having one of 
the worst case housing needs of any group in the United States; i.e., 
very low-income households with adults with disabilities. In addition, 
the Mainstream Program will assist persons with disabilities who often 
face difficulties in locating suitable and accessible housing on the 
private market.
    (C) Amount Allocated. Approximately $48.5 million in five year 
funding for approximately 1,600 rental vouchers. All of the 
approximately $48.5 million in funding is for use in the housing of 
elderly and non-elderly disabled families.
    HUD will supplement the Mainstream Program funding with additional 
funding, up to as much as $40 million in one-year budget authority for 
approximately 8,200 rental vouchers, to the extent this budget 
authority is not needed during FY 1999 to fund applications in support 
of designated housing plans under NOFA FR-4412, or to fund applications 
related to non-elderly disabled families on the waiting lists of 
certain types of Section 8 project-based developments where the owner 
has established a preference for the admission of elderly families, or 
applications related to non-elderly disabled families on the waiting 
lists of section 202, section 221(d)(3) or section 236 developments 
where the owner has restricted occupancy in the project (or portion 
thereof) to elderly families under NOFA FR-4413. Applications for this 
one-year budget authority that may be available for the Mainstream 
Program may be submitted by PHAs only.
    HUD will select approvable applications for funding by lottery in 
the event approvable applications are received for more funding than is 
available under this NOFA FR-4415. In such event, a separate lottery 
will be held to select applications for funding for the $48.5 million 
available in five-year budget authority available under this NOFA, and 
a separate lottery will be held to select applications for funding for 
whatever amount of one-year budget authority may be available during FY 
1999 for the Mainstream Program. PHA applicants should clearly indicate 
in their applications if they are applying for both one-year and five-
year funding in order to ensure their inclusion in both lotteries. PHA 
applicants, both those applying solely for one-year funding as well as 
those submitting a single application requesting both five-year or one-
year funding, must make it clear in their applications that they have a 
sufficient number of non-elderly disabled families to support the 
number of rental vouchers being requested for one-year funding.
    There is a limit on the number of rental vouchers that may be 
requested. An eligible PHA or non-profit disability organization may 
apply for a maximum of 75 rental vouchers.
    (D) Eligible Applicants. A PHA established pursuant to State law 
may apply for either, or both the one-year and five-year funding under 
this NOFA. Non-profit disability organizations that provide services to 
disabled families may apply only for the five-year funding under this 
NOFA. Indian Housing Authorities, Indian tribes and their tribally 
designated housing entities are

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no longer eligible for new increments of Section 8 funding. A regional 
(multi-county) or State PHA is eligible to apply for funding.
    PHAs are encouraged to involve non-profit disability organizations, 
that provide services to disabled families, in the administration of 
the Mainstream Program's rental vouchers. Such non-profit disability 
organizations could function as either a contract administrator for the 
PHA's Section 8 Mainstream vouchers, or as a subcontractor responsible 
for providing case management services or assisting disabled families 
to locate suitable housing, gain access to supportive services, or 
identify private funding sources to cover the costs of unit 
modifications needed as a reasonable accommodation. Such contractual 
arrangements must, however, ensure equal opportunity among the wide 
variety of disabled populations in the PHA's service area. PHAs are 
being encouraged to seek out non-profit disability organizations to 
assist in the administration of the Mainstream vouchers due to such 
organizations' capacity for assisting disabled families, as well as 
their in-depth knowledge of the disability community. Likewise, non-
profit disability organizations are encouraged to seek out PHAs in 
their geographic area to develop cooperative contractual relationships 
under the Mainstream Program, and to enhance services to disabled 
families. In addition to contacting local PHAs, non-profit disability 
organizations may also wish to contact regional (multi-county), or 
state-wide PHAs who may be applying for Mainstream Program funding.
    Some PHAs currently administering the Section 8 rental voucher and 
certificate programs have, at the time of publication of this NOFA, 
major program management findings 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 due date, 
the findings are not closed to HUD's satisfaction. If the PHA wants to 
apply for funding under this NOFA, the PHA must submit an application 
that designates another housing agency, nonprofit agency, or 
contractor, that is acceptable to HUD. The PHA's application must 
include an agreement by the other housing agency, nonprofit agency, or 
contractor to administer the new funding increment on behalf of the 
PHA, and a statement that outlines the steps the PHA is taking to 
resolve the program findings. Immediately after the publication of this 
NOFA, the Office of Public Housing in the local HUD Field Office will 
notify, in writing, those PHAs that are not eligible to apply without 
such an agreement. The PHA may appeal the decision, if HUD has 
mistakenly classified the PHA as having outstanding management or 
compliance problems. Any appeal must be accompanied by conclusive 
evidence of HUD's error and must be received prior to the application 
deadline.
    A provision in the FY 1999 House Committee Report concerning HUD's 
FY 1999 appropriations called for HUD to allow non-profit disability 
organizations to apply directly to HUD for the 25 percent of section 
811 funds to be made available for the Mainstream Program. A non-profit 
disability organization wishing to apply for the five-year funding 
available under this NOFA must have the capacity to:
    (1) Comply with the Section 8 Management Assessment Program (SEMAP) 
certification requirements under 24 CFR Part 985.
    (2) Carry out such Section 8 and SEMAP specific related activities 
as making determinations as to rent reasonableness, performing housing 
quality standards (HQS) inspections and enforcement, conducting annual 
reexaminations of participant families, as well as otherwise meeting 
Section 8 program requirements under 24 CFR parts 887 and 982.
    (3) Manage the Section 8 Mainstream Program vouchers in a manner 
equivalent to an overall performance rating under SEMAP (24 CFR Part 
985) of ``standard'' during the first fiscal year of its receiving 
Mainstream Program funding.
    (4) Administer rental housing programs or manage rental housing, as 
demonstrated by a specific list of rental housing programs the 
nonprofit disability organization has administered or the rental 
housing the organization has managed (e.g., private rental housing, HUD 
or State-related housing programs, etc.).
    (E) Eligible Participants. Only a disabled family that is income 
eligible under 24 CFR 982.201(b) may receive a rental voucher awarded 
under the Mainstream Program. While elderly and non-elderly disabled 
families are eligible to receive a Section 8 rental voucher awarded to 
a PHA or non-profit disability organization using five-year budget 
authority under this NOFA, only non-elderly disabled families are 
eligible to receive a rental voucher awarded to a PHA using one-year 
budget authority that may be available for the Mainstream Program under 
this NOFA. Applicants with disabilities will be selected from the PHA's 
or non-profit disability organization's Section 8 waiting list.

II. Program Requirements and Definitions

    (A) Program Requirements. (1) Compliance With Fair Housing and 
Civil Rights Laws. All applicants must comply with all fair housing and 
civil rights laws, statutes, regulations, and executive orders as 
enumerated in 24 CFR 5.105(a). If an applicant: (a) has been charged 
with a 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 of 1964, 
section 504 of the Rehabilitation Act of 1973, or section 109 of the 
Housing and Community Development Act of 1974, 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. Each successful 
applicant will have a duty to affirmatively further fair housing. 
Applicants will be required to identify the specific steps that they 
will take to: (a) address the elimination of impediments to fair 
housing that were identified in the jurisdiction's Analysis of 
Impediments (AI) to Fair Housing Choice; (b) remedy discrimination in

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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.
    (5) Rental Voucher Assistance Requirements.
    (a) Section 8 regulations. PHAs and non-profit disability 
organizations must administer the Mainstream Program in accordance with 
HUD regulations and requirements governing the Section 8 rental voucher 
program.
    (b) Section 8 admission requirements. Section 8 assistance must be 
provided to eligible applicants in conformity with regulations and 
requirements governing the Section 8 rental voucher program and the 
PHA's and non-profit disability organization's administrative plan.
    If there is ever an insufficient pool of disabled families on the 
PHA or non-profit disability organization's Section 8 waiting list, the 
PHA/non-profit disability organization shall conduct outreach to 
encourage eligible persons to apply for this special allocation of 
rental vouchers. Outreach may include contacting independent living 
centers, advocacy organizations for persons with disabilities, and 
medical, mental health, and social service providers for referrals of 
persons receiving such services who would benefit from Section 8 
assistance. If the PHA's or non-profit disability organization's 
Section 8 waiting list is closed, and if the PHA or non-profit 
disability organization has insufficient applicants on its Section 8 
waiting list to use all awarded rental vouchers under this NOFA, the 
PHA shall open the waiting list for applications from disabled 
families.
    (c) Turnover. When a rental voucher under this NOFA becomes 
available for reissue (e.g., the family initially selected for the 
program drops out of the program or is unsuccessful in the search for a 
unit), the rental assistance may be used only for another individual or 
family eligible for assistance under this NOFA for five years for the 
five-year funding or for one year for the one-year funding under this 
NOFA from the date the rental assistance is placed under an annual 
contributions contract (ACC).
    (d) PHA and Non-Profit Disability Organization Responsibilities. In 
addition to the responsibilities under the Section 8 rental voucher 
program and HUD regulations concerning nondiscrimination based on 
disability (24 CFR 8.28) and to affirmatively further fair housing, 
PHAs that receive rental voucher funding shall:
    (i) Where requested by an individual, assist program participants 
to gain access to supportive services available within the community, 
but not require eligible applicants or participants to accept 
supportive services as a condition of participation or continued 
occupancy in the program.
    (ii) Identify public and private funding sources to assist 
participants in covering the costs of modifications that need to be 
made to their units as a reasonable accommodation for their 
disabilities.
    (iii) Not deny persons who qualify for rental assistance under this 
program other housing opportunities, or otherwise restrict access to 
PHA or non-profit disability organization programs to eligible 
applicants who choose not to participate.
    (iv) Provide Section 8 search assistance.
    (v) In accordance with regulatory guidance, provide higher rents to 
owners necessary for the provision of accessible units and structural 
modifications for persons with disabilities.
    (vi) Provide technical assistance to owners for making reasonable 
accommodations or making units accessible to persons with disabilities.
    (B) Definitions. (1) Disabled Family. A family whose head, spouse, 
or sole member is a person with disabilities. The term ``disabled 
family'' may include two or more persons with disabilities living 
together, and one or more persons with disabilities living with one or 
more live-in aides. A disabled family may include a person with 
disabilities who is elderly. (Note: This definition applies to the 
approximately $48.5 million available under the Mainstream Program. 
This definition shall be modified, however, to be limited solely to 
non-elderly disabled families (families whose head, spouse or sole 
member is disabled and under the age of 62) regarding any funding 
available and awarded from the approximately $40 million in FY 1999 for 
designated housing allocation plans, or in connection with certain 
Section 8 project-based developments or certain section 202, section 
221(d)(3) or section 236 developments. See the SUMMARY section at the 
beginning of this NOFA regarding the possibility of additional 
Mainstream Program funding during FY 1999 beyond the approximately 
$48.5 million available as announced under this NOFA.)
    (2) Nonprofit disability organization. A private organization, no 
part of the net earnings of which inures to the benefit of any member, 
founder, contributor, or individual, that provides assistance to 
persons with disabilities, as defined in section 811, and has received 
a federal tax-exempt designation from the U.S. Internal Revenue 
Service. The organization must:
    (a) Have a voluntary board;
    (b) Be authorized by its charter or State law to enter into a 
contract with the Federal Government to provide housing assistance;
    (c) Have a functioning accounting system that is operated in 
accordance with generally accepted accounting principles, or designate 
an entity that will maintain a functioning accounting system for the 
organization in accordance with generally accepted accounting 
principles; and
    (d) Practice nondiscrimination in the provision of assistance.
    (3) Person with disabilities. A person who--
    (a) Has a disability as defined in section 223 of the Social 
Security Act (42 U.S.C. 423), or
    (b) Is determined to have a physical, mental or emotional 
impairment that:
    (i) Is expected to be of long-continued and indefinite duration;
    (ii) Substantially impedes his or her ability to live 
independently; and
    (iii) Is of such a nature that such ability could be improved by 
more suitable housing conditions, or
    (c) Has a developmental disability as defined in section 102 of the 
Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 
6001(5)).
    The term ``person with disabilities'' does not exclude persons who 
have the disease of acquired immunodeficiency syndrome (AIDS) or any 
conditions arising from the etiologic agent for acquired 
immunodeficiency syndrome (HIV).

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

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

[[Page 11306]]

III. Application Selection Process For Mainstream Program

    After the local HUD Field Office has screened PHA and non-profit 
disability organization applications and disapproved any applications 
found unacceptable for further processing, the local HUD Field Office 
will review all acceptable applications to ensure that they are 
technically adequate and responsive to the requirements of the NOFA. 
The local HUD Field Office will send to the Grants Management Center, 
Attention: Michael Diggs, Director, 501 School Street, SW, Suite 800, 
Washington, DC 20024, (tel. 202-358-0273), the following information on 
each application that is found technically adequate and responsive:
    (1) Name and address of the PHA or non-profit disability 
organization;
    (2) Local HUD Field Office contact person and telephone number;
    (3) The number of rental vouchers in the PHA application, and the 
minimum number of rental vouchers acceptable to the PHA; and
    (4) A completed fund reservation worksheet, indicating the number 
of Section 8 rental vouchers requested in the PHA application and 
recommended for approval by the local HUD Field Office, and the 
corresponding five-year and/or one-year budget authority.
    HUD Headquarters will fund all applications from PHAs that are 
recommended for funding by the local HUD Field Offices unless HUD 
receives approvable applications for more funds than are available. If 
HUD receives approvable applications for more funds than are available, 
HUD will select applicants to be funded by lottery. A separate lottery 
will be held for those applicants seeking funding under the five-year 
budget authority available under this NOFA, and a separate lottery will 
be held for those PHAs seeking funding under the one-year budget 
authority that may be available under this NOFA. All applicants 
identified by the local HUD Field Offices as having submitted 
technically adequate and responsive applications will be included in 
the lottery. As applicants are selected, the cost of funding the 
applications will be subtracted from the funds available. In order to 
achieve geographic diversity, HUD Headquarters will limit the number of 
applications selected for funding from any State to 10 percent of the 
budget authority available for the general use Mainstream Program. If 
establishing this geographic limit would result, however, in unreserved 
budget authority, HUD may modify this limit to assure that all 
available funds are used.
    Applications will be funded for the total number of units requested 
by the PHA and recommended for approval by the local HUD Field Office 
(not to exceed 75 units) in accordance with this NOFA. When remaining 
budget authority is insufficient to fund the last selected application 
in full, however, HUD Headquarters will fund that application to the 
extent of the funding available, unless the applicant indicates it will 
only accept a higher number of units. In that event, the next selected 
application shall be one that has indicated a willingness to accept the 
lesser amount of funding for units available.

IV. Application Submission Requirements for Mainstream Program

    (A) Form HUD-52515. All applicants must complete and submit form 
HUD-52515, Funding Application, for the Section 8 rental voucher 
program (dated January 1996). This form includes all 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 units. Copies of form HUD-52515 may be obtained 
from the local HUD Field Office or may be downloaded from the HUD Home 
Page site on the Internet's world wide web (http://www.hud.gov).
    (B) Letter of Intent and Narrative. The applicant must state in its 
cover letter to the application whether it will accept a reduction in 
the number of rental vouchers, and the minimum number of rental 
vouchers it will accept, since the funding is limited and HUD may only 
have enough funds to approve a smaller amount than the number of rental 
vouchers requested. The maximum number of rental vouchers that an 
applicant may apply for under this NOFA is limited to 75. The applicant 
should also indicate whether or not it intends to enter into a contract 
with a non-profit disability organization to serve as the contract 
administrator of the Section 8 Mainstream Program vouchers, or to 
otherwise provide services related to the Mainstream Program (see 
Section I(D) of this NOFA).
    (C) Description of Need for Mainstream Program Rental Assistance. 
The application must demonstrate a need for Mainstream Program rental 
vouchers by providing information documenting that the demand for 
housing for non-elderly persons with disabilities would equal or exceed 
the requested number of rental vouchers. The applicant must assess and 
document the housing need for non-elderly persons with disabilities 
using a range of sources including, but not limited to: census data, 
information from the applicant's waiting list (both public housing and 
Section 8), statistics on recent public housing admissions and rental 
certificate and voucher use, data from local advocacy groups and local 
public and private service agencies familiar with the housing needs of 
non-elderly persons with disabilities, and pertinent information from 
the Consolidated Plan applicable to the applicant's jurisdiction. (See 
24 CFR 91.205(d).) The applicant's demonstrated need for rental 
vouchers must clearly support need on the basis of non-elderly disabled 
families. This distinction is important, as any FY 1999 Mainstream 
Program funding that may be available beyond the approximately $48.5 
million under this NOFA, must be used to assist only non-elderly 
disabled families. (See the SUMMARY section at the beginning of this 
NOFA regarding the possibility of substantially more Mainstream Program 
funding beyond the approximately $48.5 million announced in this NOFA 
as having already been obligated to fund previously unfunded FY 1998 
applications.)
    (D) Mainstream Program Operating Plan. The application must include 
a description of an adequate plan for operating a program to serve 
eligible non-elderly disabled families, including:
    (1) A description of how the applicant will carry out its 
responsibilities under 24 CFR 8.28 to assist recipients in locating 
units with needed accessibility features; and
    (2) A description of how the applicant will identify private or 
public funding sources to help participants cover the costs of 
modifications that need to be made to their units as reasonable 
accommodations to their disabilities.
    (3) A description of how the applicant will use a non-profit 
disability organization or PHA (if any) to assist in the administration 
of the Section 8 Mainstream Program (see paragraph I (D) of this NOFA).
    (E) Certification Applicable to Non-Profit Disability 
Organizations. A non-profit disability organization applying for the 
five-year funding available under this NOFA must provide a 
certification stating that it can meet the capacity requirements 
applicable to a non-profit disability organization delineated in the 
last paragraph of paragraph I (D) of this NOFA. The certification must 
specifically list the four capacity requirements from that paragraph, 
and

[[Page 11307]]

must specifically list the rental housing programs the nonprofit 
disability organization has administered or the rental housing the 
nonprofit disability organization has managed.

    Note: Notice of Repeal of Local Government Comment Requirements. 
Local government comments 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 21, 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 Mainstream Program Applications

    (A) Acceptable Applications. To be eligible for processing, an 
application must be received by the local HUD Field Office no later 
than the date and time specified in this NOFA. The local HUD Field 
Office will initially screen all applications and notify PHAs of 
technical deficiencies by letter.
    If an application has technical deficiencies, the applicant will 
have 14 calendar days from the date of the issuance of the HUD 
notification letter to submit the missing or corrected information to 
the local HUD Field Office before the application can be considered for 
further processing by HUD. Curable technical deficiencies relate only 
to items that do not improve the substantive quality of the 
application.
    All applicants must submit corrections within 14 calendar days from 
the date of the HUD letter notifying the applicant of any such 
deficiency. Information received by the local HUD Field Office after 3 
p.m. local HUD Field Office time on the 14th calendar day of the 
correction period will not be accepted and the application will be 
rejected as incomplete.
    (B) Unacceptable Applications. (1) After the 14-calendar day 
technical deficiency correction period, the local HUD Field Office will 
disapprove all 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 that fall into any of the following categories 
will not be processed:
    (a) Applications 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) of this NOFA and the PHA makes application with a 
designated contract administrator.
    (c) The PHA or non-profit disability organization is involved in 
litigation and HUD determines that the litigation may seriously impede 
the ability of the PHA or non-profit disability organization to 
administer the rental vouchers.
    (d) An application that does not comply with the requirements of 24 
CFR 982.102 and this NOFA after the expiration of the 14-calendar day 
technical deficiency correction period will be rejected from 
processing.
    (e) The application was submitted after the application due date.

VI. Findings and Certifications

    (A) Paperwork Reduction Act Statement. The Section 8 information 
collection requirements contained in this NOFA have been approved by 
the Office of Management and Budget in accordance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501-3520), and assigned OMB control 
number 2577-0169. An agency may not conduct or sponsor, and a person is 
not required to respond to, a collection of information unless the 
collection displays a valid control number.
    (B) Environmental Impact. In accordance with 24 CFR 50.19(b)(11) of 
the HUD regulations, tenant-based activities assisted under this 
program are categorically excluded from the requirements of the 
National Environmental Policy Act and are not subject to environmental 
review under the related laws and authorities. In accordance with 24 
CFR 50.19(c)(5)(ii), the approval for issuance of this NOFA is 
categorically excluded from environmental review under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321).
    (C) Catalog of Federal Domestic Assistance Numbers. The Federal 
Domestic Assistance number for this program is: 14.857.
    (D) Federalism Impact. The General Counsel, as the Designated 
Official under section 6(a) of Executive Order 12612, Federalism, has 
determined that the policies contained in this NOFA will not have 
substantial direct effects on States or their political subdivisions, 
or the relationship between the Federal Government and the States, or 
on the distribution of power and responsibilities among the various 
levels of government. As a result, the notice is not subject to review 
under the Order. This notice is a funding notice and does not 
substantially alter the established roles of HUD, the States, and local 
governments, including PHAs.
    (E) Accountability in the Provision of HUD Assistance. Section 102 
of the Department of Housing and Urban Development Reform Act of 1989 
(HUD Reform Act) and the regulations in 24 CFR part 4, subpart A 
contain a number of provisions that are designed to ensure greater 
accountability and integrity in the provision of certain types of 
assistance administered by HUD. On January 14, 1992 (57 FR 1942), HUD 
published a notice that also provides information on the implementation 
of section 102. HUD will comply with the documentation, public access, 
and disclosure requirements of section 102 with regard to the 
assistance awarded under this NOFA, as follows:
    (1) Documentation and public access requirements. HUD will ensure 
that documentation and other information regarding each application 
submitted pursuant to this NOFA are sufficient to indicate the basis 
upon which assistance was provided or denied. This material, including 
any letters of support, will be made available for public inspection 
for a 5-year period beginning not less than 30 days after the award of 
the assistance. Material will be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15. In addition, HUD will include the 
recipients of assistance pursuant to this NOFA in its Federal Register 
notice of all recipients of HUD assistance awarded on a competitive 
basis.

[[Page 11308]]

    (2) Disclosures. HUD will make available to the public for 5 years 
all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this NOFA. Update reports (also Form 2880) will be made 
available along with the applicant disclosure reports, but in no case 
for a period less than 3 years. All reports--both applicant disclosures 
and updates--will be made available in accordance with the Freedom of 
Information Act (5 U.S.C. 552) and HUD's implementing regulations at 24 
CFR part 15.
    (F) Section 103 HUD Reform Act. HUD will comply with section 103 of 
the Department of Housing and Urban Development Reform Act of 1989 and 
HUD's implementing regulations in subpart B of 24 CFR part 4 with 
regard to the funding competition announced today. These requirements 
continue to apply until the announcement of the selection of successful 
applicants. HUD employees involved in the review of applications and in 
the making of funding decisions are limited by section 103 from 
providing advance information to any person (other than an authorized 
employee of HUD) concerning funding decisions, or from otherwise giving 
any applicant an unfair competitive advantage. Persons who apply for 
assistance in this competition should confine their inquiries to the 
subject areas permitted under section 103 and subpart B of 24 CFR part 
4.
    Applicants or employees who have ethics related questions should 
contact the HUD Office of Ethics (202) 708-3815. (This is not a toll-
free number.) For HUD employees who have specific program questions, 
such as whether particular subject matter can be discussed with persons 
outside HUD, the employee should contact the appropriate Field Office 
Counsel.
    (G) Prohibition Against Lobbying Activities. Applicants for funding 
under this NOFA are subject to the provisions of section 319 of the 
Department of Interior and Related Agencies Appropriation Act for 
Fiscal Year 1991 (31 U.S.C. 1352) (the Byrd Amendment) and to the 
provisions of the Lobbying Disclosure Act of 1995 (Pub. L. 104-65; 
approved December 19, 1995).
    The Byrd Amendment, which is implemented in regulations at 24 CFR 
part 87, prohibits applicants for Federal contracts and grants from 
using appropriated funds to attempt to influence Federal executive or 
legislative officers or employees in connection with obtaining such 
assistance, or with its extension, continuation, renewal, amendment, or 
modification. The Byrd Amendment applies to the funds that are the 
subject of this NOFA. Therefore, applicants must file a certification 
stating that they have not made and will not make any prohibited 
payments and, if any payments or agreement to make payments of 
nonappropriated funds for these purposes have been made, a form SF-LLL 
disclosing such payments must be submitted. The certification and the 
SF-LLL are included in the application.
    The Lobbying Disclosure Act of 1995 (Pub. L. 104-65; approved 
December 19, 1995), which repealed section 112 of the HUD Reform Act, 
requires all persons and entities who lobby covered executive or 
legislative branch officials to register with the Secretary of the 
Senate and the Clerk of the House of Representatives and file reports 
concerning their lobbying activities.

    Dated: March 3, 1999.
Deborah Vicent,
General Deputy Assistant, Secretary for Public and Indian Housing
[FR Doc. 99-5577 Filed 3-5-99; 8:45 am]
BILLING CODE 4210-33-P