[Federal Register Volume 65, Number 48 (Friday, March 10, 2000)]
[Notices]
[Pages 13222-13230]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6027]



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Part VI





Department of Housing and Urban Development





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Office of the Assistant Secretary for Public and Indian Housing; Fair 
Share Allocation of Incremental Voucher Funding for Fiscal Year 2000; 
Funding Availability; Notice

  Federal Register/Vol. 65, No. 48/Friday, March 10, 2000/Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4570-N-01]


Office of the Assistant Secretary for Public and Indian Housing; 
Notice of Funding Availability; Fair Share Allocation of Incremental 
Voucher Funding Fiscal Year 2000

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

ACTION: Notice of Fund Availability (NOFA).

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SUMMARY: Purpose of the Program. The purpose of this NOFA is to invite 
public housing agencies (PHAs) to apply for vouchers on a fair share 
allocation basis under the Section 8 Housing Choice Voucher Program. 
The vouchers are for issuance to families on a PHA's Section 8 waiting 
list to enable these families to rent decent, safe, and affordable 
housing of their choice on the private rental market.
    Available Funds. Approximately $346,560,000 in one-year budget 
authority for approximately 60,000 Section 8 vouchers.
    Eligible Applicants. Public housing agencies (PHAs). Indian Housing 
Authorities (IHA), Indian tribes and their tribally designated housing 
entities are not eligible applicants. The Native American Housing 
Assistance and Self-Determination Act of 1996 does not allow HUD to 
enter into new Section 8 annual contributions contracts (ACC) with IHAs 
after September 30, 1997.
    Application Due Date. April 24, 2000.
    Match. None.

Additional Information

    If you are interested in applying for funding under this NOFA, 
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 application submission and 
participation in the program covered by this NOFA.

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

    Application Due Date. Your completed application (an original and 
two copies) is due on or before April 24, 2000 at the addresses shown 
below.
    Address for Submitting Applications. Submit your original 
application and one copy to Michael E. Diggs, Director of the Grants 
Management Center, Department of Housing and Urban Development, 501 
School Street, SW, Suite 800, Washington, DC 20024.
    Submit the second copy of your application 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 Grants Management Center is the official place of receipt for 
all applications 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.
    Delivered Applications. If you are hand delivering your 
application, your application is due on or before 5:00 pm, Eastern 
time, on the application due date to the Office of Public and Indian 
Housing's Grants Management Center (GMC) in Washington, DC A copy is 
also to be submitted by the applicant to the local HUD Field Office Hub 
or local HUD Field Office Program Center.
    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 sent by U.S. mail will be 
considered timely filed if postmarked before midnight on the 
application due date and received within ten (10) days of that date.
    Applications Sent By Overnight Delivery. Applications sent by 
overnight delivery will be considered timely filed if received before 
or on the application due date, or upon submission of documentary 
evidence that they were placed in transit with the overnight delivery 
service by no later than the specified application due date.
    For Application Kit. An application kit is not available and is not 
necessary for submitting an application for funding under this NOFA. 
This NOFA contains all of the information necessary for the submission 
of an application for voucher funding in connection with this NOFA.
    For Further Information and Technical Assistance. You may contact 
George C. Hendrickson, Housing Program Specialist, Room 4216, Office of 
Public and Assisted Housing Delivery, Department of Housing and Urban 
Development, Room 4216, 451 Seventh Street, SW, Washington, DC 20410; 
telephone (202) 708-1872, ext. 4064, or you may contact the Grants 
Management Center at (202) 358-0273. (These are not toll-free numbers.) 
Persons with hearing or speech impairments may access these numbers via 
TTY (text telephone) by calling the Federal Information Relay Service 
at 1-800-877-8339 (this is a toll-free number).

II. Authority, Purpose, Fair Share Allocation Amount, Voucher 
Funding, and Eligibility

    (A) Authority. Authority for the approximately $346,560,000 in one-
year budget authority for Section 8 vouchers for low-income families is 
found in the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, FY 2000 
(Pub.L. 106-74, approved October 20, 1999, referred to as the FY 2000 
HUD Appropriations Act. The allocation of housing assistance budget 
authority for Section 8 vouchers, by State based on fair share factors, 
is pursuant to the provisions of 24 CFR part 791, subpart D, 
implementing section 213(d) of the Housing and Community Development 
Act of 1974, as amended.
    (B) Purpose. The purpose of the Section 8 voucher funding being 
made available under this NOFA is to provide housing assistance to low-
income families to enable them to rent decent, safe, and affordable 
housing of their choice on the private rental market.

(Note: Due to the lack of funding in FY 2000 for a Family 
Unification Program (FUP), PHAs may wish to consider using some 
portion of their fair share funding under this NOFA to either 
establish or expand upon their existing FUP. Requirements relative 
to the operation of a FUP may be found in the FY 1999 FUP NOFA, 
published under Docket No. FR-4414-N-01, on March 5, 1999, in the 
Federal Register.)

    (C) Fair Share Allocation Amount. This NOFA announces the 
availability of approximately $346,560,000 in one-year budget authority 
for a fair share formula allocation which will provide rental 
assistance to approximately 60,000 low-income families.
    (1) Fair Share Allocation For Each State. Attachment 1 lists the 
allocation of housing assistance budget authority for vouchers for each 
State, based on fair share factors. Attachment 1 also provides an 
estimate of the total number of vouchers that could be funded from the 
housing assistance available for each State based on the weighted local

[[Page 13223]]

average costs of voucher assistance for a two-bedroom unit. The actual 
number of units assisted within each State will vary from the estimates 
prepared by Headquarters since the actual costs of voucher assistance 
for each PHA vary from the average.
    (2) Potential additional funding. If additional voucher funding 
becomes available for fair share use during FY 2000, HUD plans to 
distribute any additional funding to States using the same percentage 
distribution as reflected in Attachment 1 to this NOFA. Any additional 
funding will be used under the competitive requirements of this NOFA to 
fund PHA applications which were approvable but not funded, or approved 
and funded at less than 100 percent of the requested amount for which 
the PHA was eligible under this NOFA.
    (3) Underfunding Corrections. The last prior year in which fair 
share funding was provided to PHAs was in 1994. HUD Headquarters will 
be funding the only case brought to its attention of a PHA which did 
not receive fair share funding in FY 1994 due to an error by the local 
HUD Field Office; i.e., the city of Oceanside, California Housing 
Authority (OHA). The Grants Management Center will, in coordination 
with the local HUD Field Office and the OHA, determine the number of 
units that should have been awarded the OHA under the FY 1994 NOFA and 
the funding amount that would currently be appropriate under the 
voucher funding procedures in Section II.(D) of this FY 2000 Fair Share 
NOFA. The correction of the FY 1994 error will not affect the OHA's 
ability to compete, nor the amount of funding for which it may be 
eligible, in FY 2000 under the FY 2000 Fair Share NOFA.
    (D) Voucher Funding.
    (1) Determination of Funding Amount for the PHA's Requested Number 
of Vouchers. HUD will determine the amount of funding that a PHA will 
be awarded under this NOFA based upon an actual annual per unit cost 
using the following three step process (as may be modified based upon a 
percentage of annual per unit cost if necessary to produce the 60,000 
vouchers provided for under this NOFA):
    (a) HUD will extract the total expenditures for all the PHA's 
Section 8 tenant-based assistance programs and the unit months leased 
information from the most recent approved year end statement (form HUD-
52681) that the PHA has filed with HUD. HUD will divide the total 
expenditures for all of the PHA's Section 8 tenant-based assistance 
programs by the unit months leased to derive an average monthly per 
unit cost.
    (b) HUD will multiply the monthly per unit cost by 12 (months) to 
obtain an annual per unit cost.
    (c) HUD will multiply the annual per unit cost derived under 
paragraph (b) above by the Section 8 Housing Assistance Payments 
Program Contract Rent Annual Adjustment Factor (with the highest cost 
utility included) to generate an adjusted annual per unit cost.
    (E) Eligible Applicants. A PHA established pursuant to State law 
may apply for funding under this NOFA. A regional (multi-county) or 
State PHA is eligible to apply for funding. Indian Housing Authorities 
(IHA), Indian tribes and their tribally designated housing entities are 
not eligible to apply because the Native American Housing Assistance 
and Self-Determination Act of 1996 does not allow HUD to enter into new 
Section 8 annual contributions contracts (ACC) with IHAs after 
September 30, 1997. Applicants are limited to those PHAs currently 
administering Section 8 vouchers or certificates.
    Some PHAs currently administering the Section 8 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 either not closed, or sufficient progress toward 
closing its findings has not been made to HUD's satisfaction. The PHA 
must also, to HUD's satisfaction, be making satisfactory progress in 
addressing any program compliance problems. 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 and the program compliance problems. Immediately after 
the publication of this NOFA, the local HUD Field Office will notify, 
in writing, those PHAs that are not eligible to apply without such an 
agreement. Concurrently, the local HUD Field Office will provide a copy 
of each such written notification to the GMC. The PHA may appeal the 
decision, in writing, 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. The appeal should be 
submitted to the local HUD Field Office where a final determination 
shall be made. Concurrently, the local HUD Field Office shall provide 
the GMC with a copy of its written response to the appeal, along with a 
copy of the PHA's written appeal. Major program management findings are 
those that would cast doubt on the capacity of the PHA to effectively 
administer any new Section 8 voucher funding in accordance with 
applicable HUD regulatory and statutory requirements.
    (F) Eligible Participants. Eligible participants include very low-
income families, and on an exception basis some low-income families, 
who are on the PHA's Section 8 waiting list and who are determined to 
be eligible for rental assistance under the Section 8 regulations at 24 
CFR part 982 and part 5. The families must be income eligible under 24 
CFR 982.201(b) in order to receive a voucher.

III. General Program Requirements

    (A) General 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

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practices involved in the charge, lawsuit, or letter of findings.
    (2) Additional Nondiscrimination Requirements. In addition to 
compliance with the civil rights requirements listed at 24 CFR 
5.105(a), 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.), Title IX of the Education Amendments Act of 1972, 
and Titles I and V of the Americans with Disabilities Act of 1990 (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 housing; or
    (c) Promote fair housing rights and fair housing choice. Further, 
applicants have a duty to carry out the specific activities cited in 
their responses to address affirmatively furthering fair housing under 
this NOFA.
    (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) PHA Responsibilities and Rental Assistance Requirements.
    (a) Section 8 Regulations. PHAs must administer the Section 8 
vouchers received under this NOFA in accordance with HUD regulations 
and requirements governing the Section 8 Housing Choice 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 Housing Choice Voucher Program and 
the PHA's administrative plan.
    (c) Turnover. When a 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 
voucher may be used only for the next eligible family on the PHA's 
Section 8 waiting list.

IV. Fair Share Application Rating Process

    (A) Selection Criteria. The GMC will use the Selection Criteria 
shown below for the rating of applications submitted in response to 
this NOFA. The maximum score under the selection criteria for fair 
share funding is 160 points.
    (1) Selection Criterion 1: Housing Needs (30 points).
    (a) Description: This criterion assesses the housing need in the 
primary market area specified in the PHA's application compared with 
the housing need for the State. Housing need is defined as the number 
of very low-income renter households with severe rent burden, based on 
1990 Census data. Very low-income is defined as income at or below the 
Section 8 very low-income limits. Severe rent burden is defined as a 
household paying 50 percent or more of its gross income for rent.
    (b) Needs Data: For the purpose of this criterion, housing needs 
are based on a tabulation of 1990 Census data prepared for the 
Department by the Bureau of the Census. Data on housing needs are 
available for all States, all counties (county equivalents), and places 
with populations of 10,000 or more as of 1990. Information will be 
posted on the HUD Home Page site on the Internet's world wide web 
(http://www.hud.gov) indicating the proportion of each State's housing 
needs for primary markets.
    (c) Rating and Assessment: The number of points assigned is based 
on the percentage of the State's housing need that is within the PHA's 
primary market area. The primary market area is defined as the 
jurisdiction (or its closest equivalent in terms of areas for which 
housing needs data are available) in which the PHA is authorized to 
operate and where the vouchers will be used, as described in its 
application. (See paragraph VI(C) of this NOFA regarding regional 
(multi-county) and State PHAs.)
    (1) The GMC will assign one of the following point totals:
     30 points. If the PHA's housing need is 3 percent or more 
of the State's need.
     25 points. If the PHA's housing need is equal to or less 
than 2.99 percent but equal to or greater than 1 percent of the State's 
need.
     20 points. If the PHA's housing need is less than 1 
percent of the State's need.
    (2) A State, regional or multi-county PHA will receive points based 
on the areas it serves where the vouchers will be used, e.g., the 
entire State or the sum of the housing needs for the counties and/or 
localities comprising its primary market area.
    (3) A PHA with a primary market area that is a community with a 
population of 10,000 or less, or a PHA for which housing needs data are 
not available, will receive 20 points.
    (2) Selection 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 voucher program. The GMC 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 GMC will assign points to PHAs that have established 
relationships with non-profit 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 GMC will assign point values 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:
     10 Points--Assign 10 points if the PHA documents that it 
participates in an area wide exchange program where all PHAs absorb 
portable Section 8 families.
     10 Points--Assign 10 points if the PHA certifies that its 
administrative plan does not include a ``residency preference'' for 
selection of families to participate in its voucher program or the PHA 
certifies that it will eliminate immediately any ``residency 
preference'' currently in its administrative plan.
     10 Points--Assign 10 points if the PHA documents that it 
has established a contractual relationship with a non-profit agency or 
the 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 93 Moving to Opportunity (MTO) for Fair 
Housing Demonstration, PHAs participating in the Regional Opportunity 
Counseling (ROC) Program, and any other PHAs that receive counseling 
funds from HUD in connection with the demolition of public housing, 
public housing vacancy consolidation, or settlement of litigation

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involving desegregation may qualify for points under this assessment. 
However, these PHAs must identify all activities undertaken, other than 
those funded and required under the MTO Demonstration, ROC Program, or 
the court-ordered plans or plans for relocating public housing 
families, to expand housing opportunities.
     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.
     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.
     10 Points--Assign 10 points if the PHA has formed a 
consortium or joint venture with other PHAs to administer its voucher 
program.
    (3) Selection Criterion 3: Local Initiatives (20 points).
    (a) Description: The application must describe the extent to which 
the PHA demonstrates locally initiated efforts in support of its 
voucher and certificate programs or comparable tenant-based rental 
assistance programs. Evaluation of a locality's contribution is 
measured competitively by whether the locality is able to provide 
services, cash contributions, or tax abatements to rental property 
owners leasing to Section 8 families, or demonstrates its intention to 
provide this kind of support in the future.
    (b) Rating and Assessment: The GMC will assign one of two point-
values, as follows:
     20 points: The State or locality provides local support 
(e.g., financial, manpower for inspection services) to its voucher or 
certificate program.
     0 points: The State or locality does not provide support 
to the PHA's voucher or certificate program.
    (4) Selection Criterion 4: Disabled Families (20 points).
    (a) Description: The GMC will assign 20 points to PHAs that 
indicate at least 15 percent or more of the vouchers they are 
requesting (or funded by HUD) under this NOFA will be used to house 
disabled families. The PHA's application must be specific as to the 
exact percentage of vouchers that will be issued solely to disabled 
families. Disabled families are defined as follows:
    (i) Disabled Family. A family whose head, spouse, or sole member is 
a person with disabilities. The term ``disabled family'' may include 
two or more such persons with disabilities living together, and one or 
more such persons with disabilities living with one or more persons who 
are determined essential to the care and well-being of the person or 
persons with disabilities (live-in aides).
    (ii) 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:
    1. Is expected to be of long-continued and indefinite duration;
    2. Substantially impedes his or her ability to live independently; 
and
    3. 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 voucher designated as being for a disabled family 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 meeting the requirements of 
Fair Housing laws, including providing reasonable accommodations.)

    No individual shall be considered a person with disabilities for 
the purpose of determining eligibility solely on the basis of any drug 
or alcohol dependence.
    (b) Rating and Assessment: The GMC will assign one of two point 
values, as follows:
     20 points: The PHA will use not less than 15 percent of 
the vouchers being requested (or funded by HUD) to house disabled 
families.
     0 points: The PHA will use less than 15 percent of the 
vouchers it is requesting (or funded by HUD) to house disabled 
families.
    (5) Selection Criterion 5: Medicaid Home and Community Based 
Services Waivers Under Section 1915(c) of the Social Security Act (10 
points).
    (a) Description: This selection criterion is for PHAs interested in 
the provision of Section 8 voucher assistance to families within their 
jurisdiction who are disabled and also covered under a waiver of 
Section 1915(c) of the Social Security Act. Section 1915(c) waivers are 
approved by the Health Care Financing Administration within the 
Department of Health and Human Services (HHS) for the agency within 
each State responsible for the administration of the medicaid program. 
Contacting the responsible State agency (for example, the Agency for 
Health Care Administration in the State of Florida) will assist the PHA 
in determining how many, if any, individuals are covered by a Section 
1915(c) waiver in the PHA's legal area of operation. These waivers 
allow medicaid-eligible individuals at risk of being placed in 
hospitals, nursing facilities or intermediate care facilities the 
alternative of being cared for in their homes and communities. These 
individuals are thereby assisted in preserving their independence and 
ties to family and friends at a cost no higher than that of 
institutional care.
    While a Section 1915(c) waiver may cover individuals other than 
those who are disabled, the focus of Selection Criterion 5 is on 
disabled families only. The definition of disabled families listed 
under Selection Criterion 4 will be used by PHAs for purposes of the 
issuance of vouchers to disabled families in connection with Selection 
Criterion 5; i.e., only those individuals that meet the definition of a 
disabled family in this announcement are to be considered in connection 
with a PHA determining how many such disabled families are covered by a 
Section 1915(c) waiver in their legal area of operation and whether to 
try to qualify for the 10 points available under Selection Criterion 5. 
The PHA's application must be specific as to the percentage of vouchers 
that will be issued to such disabled families.
    Any PHA attempting to qualify for the 10 points available under 
Selection Criterion 5 should also include information within its 
application indicating the collaborative efforts already undertaken 
with the responsible State agency to identify eligible families, as 
well as agreements reached with that agency for future referrals of 
such families. HUD reserves the right at some future point in time to 
conduct an evaluation of the success of the PHA's efforts to 
collaborate with the State agency and to successfully house individuals 
that meet the requirements of being covered by a Section 1915(c) 
waiver, qualify as a disabled family under this announcement, and are 
otherwise eligible for a Section 8 voucher.
    (b) Rating and Assessment: The GMC will assign one of two point 
values as follows:

[[Page 13226]]

     10 points: The PHA will use not less than 3 percent of the 
vouchers being requested (or funded by HUD) to house Section 8 
eligible, disabled families covered by a waiver under Section 1915(c) 
of the Social Security Act.
     0 points: The PHA will use less than 3 percent of the 
vouchers it is requesting (or funded by HUD) to house Section 8 
eligible, disabled families covered by a waiver under Section 1915(c) 
of the Social Security Act.
    (c) Prohibition Against Double Counting. The number (percentage) of 
disabled families that a PHA indicates it will issue vouchers to when 
qualifying for the 10 points available under Selection Criterion 5 
cannot be used to also qualify for the 20 points available under 
Selection Criterion 4 or conversely.
    (6) Selection Criterion 6: Portability (20 Points).
    (a) Description: The GMC will assign 20 points to a PHA certifying 
that it is billing another PHA(s) for portable families comprising not 
less than 5 percent of the certificates and vouchers being administered 
by it and will use 20 percent of the funds it is requesting (or funded 
by HUD) to absorb portable families for which it is currently billing 
another PHA(s).
    (b) Rating and Assessment: The GMC will assign one of two point 
values, as follows:
     20 points: The PHA certifies that it is billing another 
PHA(s) for portable families for not less than 5 percent of the 
certificates and vouchers it administers and will use 20 percent of the 
funds being requested (or funded by HUD) to absorb portable families 
for which it is currently billing another PHA(s).
     0 points: The PHA has no portables for which it is billing 
another PHA, or is billing another PHA(s) for less than 5 percent of 
the certificates and vouchers it administers and will use less than 20 
percent of the funds being requested (or funded by HUD) to absorb 
portable families for which it is currently billing another PHA(s).

V. Fair Share Application Selection Process

    (A) Maximum Funding Allowed. The GMC may recommend for approval the 
maximum funding for a PHA under this NOFA that does not exceed the 
lesser of 25 percent of the PHA vouchers and certificates on the latest 
HUD-approved budget or 25 percent of the number of vouchers available 
in the State, whichever is less.
    (B) Funding Procedure. HUD seeks to maximize, insofar as practical, 
the number of PHAs awarded funding under this NOFA. The GMC will 
recommend applications for approval in rank order (highest to lowest 
score) within each State. No PHA shall be eligible to request or be 
funded at more than the lesser of 25 percent of the units in its latest 
HUD-approved budget for certificates and vouchers or 25 percent of the 
vouchers available for the State. The number of vouchers for which a 
PHA will first receive consideration by the GMC for funding will be 
based upon initially using the lesser of a 10 percent calculation for 
those units in the PHA's latest HUD-approved budget or 25 percent of 
the vouchers available for the State, whichever is lesser. If funding 
remains available within the State, the percentage used for the units 
in the PHAs' latest HUD-approved budget will increase to the percent 
required to use all funding within the State, not to exceed 25 percent.
    Where the GMC finds it has some number of vouchers left but not 
enough to fully fund the next ranked application or applications 
receiving the same score, funding will be recommended by the GMC for 
the application indicating it will accept the lesser number of vouchers 
(see Section VI(B)of this NOFA). In the event there are two or more 
PHAs ranked at the same position (same number of rating points) 
indicating they will accept the lesser number of vouchers, the PHA 
whose application is eligible for the largest number of vouchers among 
these PHAs will be recommended by the GMC for funding.
    (C) Reallocations Between States.
    The GMC will make every reasonable effort to use all available 
funds. It may be necessary, however, to reallocate funds from one State 
to another when the funds cannot be used in the State to which they 
were initially assigned. In such cases, the GMC will re-allocate funds 
to the State having the largest number of approvable vouchers remaining 
unfunded due to lack of sufficient fair share funding.
    (D) Applications Recommended by the GMC for Funding. After the GMC 
has screened PHA applications and disapproved any applications found 
unacceptable for further processing, the GMC will review all acceptable 
applications to ensure that they are technically adequate and 
responsive to the requirements of the NOFA. As PHAs are selected, the 
cost of funding the applications will be subtracted from the funds 
available. Applications will be funded for the total number of units 
recommended for approval by the GMC in accordance with this NOFA.

VI. Fair Share Application Submission Requirements

    (A) Form HUD-52515. All PHAs must complete and submit form HUD-
52515, Funding Application, for Section 8 tenant-based assistance 
(dated January 1996). This form includes all necessary certifications 
for Fair Housing, Drug Free Workplace and Lobbying Activities. 
Attachment 1 to this notice lists the estimate of the number of 
vouchers and budget authority available for each State. PHAs should 
limit their applications for the ``fair share'' program to a reasonable 
number of vouchers based on the capacity of the PHA to lease-up within 
12 months of ACC execution. The number of vouchers on the PHA 
application may not exceed the lesser of: (a) Twenty-five percent (25%) 
of the total vouchers and certificates on the most recent HUD-approved 
budget for the PHA; or (b) twenty-five percent (25%) of the number of 
units available for the State. Section C of the form should be left 
blank. 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). (On the HUD website 
click on ``handbooks and forms,'' then click on ``forms'', then click 
on ``HUD-5'' and click on ``HUD-52515''.) The form must be completed in 
its entirety, with the exception of Section C, signed and dated.
    (1) A PHA may submit only one application (Form HUD-52515) for a 
State.
    (2) The GMC will reduce the number of vouchers requested in any 
application that exceeds the established application limit in Section 
VI(A) above.
    (B) Letter of Intent and Narrative. The PHA must state in its cover 
letter to the application whether it will accept a reduction in the 
number of vouchers, and the minimum number of 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 vouchers requested. The 
application should include a narrative description of how the 
application meets, or will meet, the application selection criteria. 
Failure to submit a narrative description is not cause for application 
rejection; however, the GMC can only rate and rank the application 
based on information it has on-hand.
    (C) Description of Primary Market Area. A Regional (multi-county) 
or State PHA must specify in the application its primary market area; 
i.e., the area in which it is authorized to operate and in which the 
Section 8 vouchers will be

[[Page 13227]]

used. This information may be different than that entered by such a PHA 
on the form HUD-52515, as the form calls for the PHA to identify its 
``legal area of operation'' which may be far more geographically 
expansive than the specific city, county, or area within a State where 
a regional or State PHA intends to use the fair share vouchers.
    (D) Statement Regarding the Steps the PHA Will Take to 
Affirmatively Further Fair Housing. The areas to be addressed in the 
PHA's statement should include, but not necessarily be limited to: (a) 
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.
    (E) Program Summary. Provide a separate, one paragraph statement 
describing how the vouchers being applied for will address the local 
housing needs of eligible families in renting decent, safe, and 
affordable housing. Describe, where applicable, how the vouchers will 
be used to expand existing housing choices, and whether the PHA intends 
to use the vouchers to establish or expand upon its existing Family 
Unification Program, partnerships with local government, nonprofit 
agencies, or private industry groups. Also address any related notable 
local program activities, best practices, or accomplishments.
    (F) Application Checklist. Attachment 2 to this NOFA is an 
Application Checklist to assist applicants in assembling complete 
applications. The Application Checklist must be submitted as part of 
the PHA's application.

VII. Corrections to Deficient Applications

    (A) Acceptable Applications. An acceptable application is one which 
meets all of the application submission requirements in Section VI of 
this NOFA and does not fall into any of the categories listed in 
Section VII(B) of this NOFA. The GMC will initially screen all 
applications and notify PHAs of technical deficiencies by letter.
    With respect to correction of deficient applications, HUD may not, 
after the application due date and consistent with HUD's regulations in 
24 CFR part 4, subpart B, consider any unsolicited information an 
applicant may want to provide. HUD may contact an applicant to clarify 
an item in the application or to correct technical deficiencies. Please 
note, however, that HUD may not seek clarification of items or 
responses that improve the substantive quality of a response to any 
selection factors. In order not to unreasonably exclude applications 
from being rated and ranked, HUD may contact applicants to ensure 
proper completion of the application and will do so on a uniform basis 
for all applicants. Examples of curable (correctable) technical 
deficiencies include failure to submit the proper certifications or 
failure to submit an application that contains an original signature by 
an authorized official. In each case under this NOFA, the GMC will 
notify the applicant in writing by describing the clarification or 
technical deficiency. The applicant must submit clarifications or 
corrections of technical deficiencies in accordance with the 
information provided by the GMC within 14 calendar days of the date of 
receipt of the HUD notification. (If the due date falls on a Saturday, 
Sunday, or Federal holiday, your correction must be received by HUD on 
the next day that is not a Saturday, Sunday, or Federal holiday.) If 
the deficiency is not corrected within this time period, HUD will 
reject the application as incomplete, and it will not be considered for 
funding.
    (B) Unacceptable Applications.
    (1) After the 14-calendar day technical deficiency correction 
period, the GMC will disapprove all PHA applications that it determines 
are not acceptable for processing. The GMC'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 III(A)(1) of this NOFA, Compliance With Fair Housing and Civil 
Rights Laws.
    (b) The PHA has major program management findings in an Inspector 
General audit, HUD management review, or independent public accountant 
(IPA) audit for its voucher or certificate programs that are not closed 
or on which satisfactory progress in resolving the findings is not 
being made; or program compliance problems for its voucher or 
certificate programs on which satisfactory progress is not being made. 
The only exception to this category is if the PHA has been identified 
under the policy established in Section II.(E) of this NOFA and the PHA 
makes application with a designated contract administrator. Major 
program management findings are those that would cast doubt on the 
capacity of the PHA to effectively administer any new Section 8 voucher 
funding in accordance with applicable HUD regulatory and statutory 
requirements.
    (c) The PHA has failed to achieve a lease-up rate of 90 percent for 
its combined certificate and voucher units under contract for its 
fiscal year ending in 1998. Category (c) may be passed, however, if the 
PHA achieved a combined certificate and voucher budget authority 
utilization rate of 90 percent or greater for its fiscal year ending in 
1998. In the event the PHA is unable to meet either of these percentage 
requirements, it may still pass category (c) if it submits information 
to the GMC, as part of its application, demonstrating that it was able 
to either increase its combined certificate and voucher lease-up rate 
to 90 percent or greater for its fiscal year ending in 1999, or was 
able to increase combined certificate and voucher budget authority 
utilization to 90 percent or more for its fiscal year ending in 1999. 
PHAs that have been determined by HUD to have passed either the 90 
percent lease-up, or 90 percent budget authority utilization 
requirement for their fiscal year ending in 1998 will be listed on the 
HUD Home Page site on the Internet's world wide web (http://www.hud.gov). A PHA not listed must either submit information in its 
application supportive of its 90 percent lease-up or 90 percent budget 
authority utilization performance for its fiscal year ending in 1999, 
or submit information as part of its application supportive of its 
contention that it should have been included among those PHAs HUD 
listed on the HUD Home Page as having achieved either a 90 percent 
lease-up rate or 90 percent funding utilization rate for fiscal years 
ending in 1998. Attachment 3 of this NOFA indicates the methodology and 
data sources used by HUD to calculate the lease-up and budget authority 
utilization percentage rates for PHAs with fiscal years ending in 1998. 
Any PHA wishing to submit information to the GMC in connection with its 
1998 fiscal year or 1999 fiscal year for the purposes described 
immediately above (so as to be eligible under category (c) to submit an 
application) will be required to use the same methodology and data 
sources indicated in Attachment 3.
    (d) The PHA is involved in litigation and HUD determines that the 
litigation may seriously impede the ability of the PHA to administer 
the rental vouchers.
    (e) A PHA's 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.
    (f) The PHA's application was submitted after the application due 
date.

[[Page 13228]]

    (g) The application was not submitted to the official place of 
receipt as indicated in the paragraph entitled ``Official Place of 
Application Receipt'' at the beginning of this NOFA.
    (h) The applicant has been debarred or otherwise disqualified from 
providing assistance under the program.

VIII. 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 rental activities under this program are categorically 
excluded from the requirements of the National Environmental Policy Act 
of 1969 (NEPA) and are not subject to environmental review under the 
related laws and authorities. This NOFA provides funding for these 
activities under 24 CFR part 982, which does not contain environmental 
review provisions because of the categorical exclusion of these 
activities from environmental review. Accordingly, under 24 CFR 
50.19(c)(5), issuance of this NOFA is also categorically excluded from 
environmental review under NEPA.

(C) Catalog of Federal Domestic Assistance Numbers

    The Federal Domestic Assistance number for this program is 14.857.

(D) Federalism Impact

    Executive Order 13132 (captioned ``Federalism'') prohibits, to the 
extent practicable and permitted by law, an agency from promulgating a 
regulation that has federalism implications and either imposes 
substantial direct compliance costs on State and local governments and 
is not required by statute, or preempts State law, unless the relevant 
requirements of section 6 of the Executive Order are met. None of the 
provisions in this NOFA will have federalism implications and they will 
not impose substantial direct compliance costs on State and local 
governments or preempt State law within the meaning of the Executive 
Order. As a result, the notice is not subject to review under the 
Order.

(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.
    (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 at (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 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.


[[Page 13229]]


    Dated: March 7, 2000.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.

Attachment 1.--Fair Share Allocations to States Based Upon Housing Needs
------------------------------------------------------------------------
                       State                           Amount     Units
------------------------------------------------------------------------
Alabama...........................................   $2,998,660      754
Alaska & Washington...............................    7,431,525    1,241
Arizona...........................................    3,891,871      713
Arkansas..........................................    1,685,154      453
California........................................   59,653,051    8,428
Colorado..........................................    4,344,651      717
Connecticut.......................................    4,676,595      708
Delaware..........................................      663,416      112
District of Columbia & Maryland...................    7,250,808    1,221
Florida...........................................   13,396,457    2,397
Georgia...........................................    6,522,548    1,271
Hawaii & Pacific Island...........................    2,395,085      315
Idaho.............................................      790,875      188
Illinois..........................................   16,635,009    2,797
Indiana...........................................    4,820,548    1,038
Iowa..............................................    2,636,009      623
Kansas............................................    1,964,068      481
Kentucky..........................................    3,003,250      777
Louisiana.........................................    4,117,360    1,002
Maine.............................................    1,304,156      263
Massachusetts.....................................   12,456,208    1,754
Michigan..........................................   10,673,680    2,041
Minnesota.........................................    4,248,602      794
Mississippi.......................................    1,894,043      515
Missouri..........................................    4,419,025    1,028
Montana...........................................      799,469      186
Nebraska..........................................    1,509,926      343
Nevada............................................    1,611,636      262
New Hampshire.....................................    1,162,548      186
New Jersey........................................   12,981,233    1,716
New Mexico........................................    1,276,507      283
New York..........................................   57,048,267    7,707
North Carolina....................................    5,908,423    1,232
North Dakota......................................      584,150      139
Ohio..............................................   12,346,480    2,570
Oklahoma..........................................    2,370,698      610
Oregon............................................    4,050,157      732
Pennsylvania......................................   14,791,053    2,786
Puerto Rico & Virgin Islands......................    2,902,466      765
Rhode Island......................................    1,753,494      284
South Carolina....................................    2,713,819      614
South Dakota......................................      729,568      166
Tennessee.........................................    4,026,565      922
Texas.............................................   18,465,474    3,598
Utah..............................................    1,525,394      284
Vermont...........................................      771,380      138
Virginia..........................................    5,404,073    1,113
West Virginia.....................................    1,430,622      385
Wisconsin.........................................    6,178,218    1,267
Wyoming...........................................      349,048       81
------------------------------------------------------------------------

Attachment 2.--Fair Share Voucher Application Checklist

PHA Name:--------------------------------------------------------------
City/State:------------------------------------------------------------
PHA Code #:------------------------------------------------------------

______ Delivered by the due date, or mailed and postmarked before 
midnight on due date, or placed in transit with overnight delivery 
service before due date.
______ Original and one copy of application submitted to Michael E. 
Diggs, Director of the Grants Management Center, Department of 
Housing and Urban Development, 501 School St., SW, Suite 800, 
Washington, D.C., 20024; and one copy sent to local HUD Field Office 
Hub, Attn: Director, Office of Public Housing, or to the local HUD 
Field Office Program Center, Attention: Program Center Coordinator.
______ If applicable, PHA designates another housing agency, 
nonprofit agency, or contractor to administer new funding.
______ Copy of letter from local HUD Field Office requiring contract 
administrator.
______ Agreement from contract agency to administer funding on 
behalf of applicant.
______ Copy of PHA letter to local HUD Field Office appealing 
requirement for contract administrator.
______ Copy of written response to appeal from local HUD Field 
Office.
______ PHA listed on HUD Home Page Internet site as passing 90% 
lease-up OR 90% budget authority utilization -or-
______ PHA not listed as meeting 90% thresholds. PHA includes 
information confirming 90% lease-up or budget authority utilization 
for 1998 or 1999 using same methodology and data sources indicated 
in Attachment 3 to the Fair Share NOFA.
______ PHA is in compliance with all fair housing and civil rights 
laws (refer to Sect. III. General Program Requirements).
______ PHA has not been debarred or otherwise disqualified from 
providing assistance under the Section 8 Housing Choice Voucher 
Program.
______ Form HUD-52515, Funding Application (January 1996 version), 
completed in its entirety, except Section C. (See Section VI.(A) of 
the NOFA and form HUD-52515 regarding information to be entered 
thereon.)
______ Letter of Intent and Narrative
______ Includes statement of acceptance of a reduction in the number 
of vouchers.
______ Includes minimum number of vouchers PHA will 
accept:__________.
______ Includes a narrative description of how the application 
meets, or will meet, the application selection criteria.
______ Housing Needs (Criterion 1). Areas PHA is authorized to 
operate in (HUD-52515).
______ Efforts of PHA to Provide Area-Wide Housing Opportunities for 
Families (Criterion 2).
______ Evidence of participation in area-wide exchange program where 
all PHA absorb portable Section 8 families.
______ Certification that administrative plan does not include or 
will immediately eliminate residency preferences.
______ PHA contract to provide housing counseling for families 
moving to low-poverty/non-minority areas.
______ Is an approved PHA for FY 1993 Moving to Opportunity (MTO) 
Fair Housing Demonstration, or
______ Is a participant in the Regional Opportunity Counseling (ROC) 
Program, or.
______ Receives counseling funds related to public housing 
demolition, vacancy consolidation, or litigation.
______ Describes other activities expanding housing opportunities 
(not MTO, ROC, or litigation efforts).
______Documentation of PHA's Participation With Other PHAs in Using 
Metropolitan-Wide/Combined Waiting List.
______Documentation of Other Initiatives Resulting in Expansion of 
Housing Opportunities.
______Documentation of Consortium or Joint Venture with other PHAs 
to administer its voucher program.
______Local Initiatives (Criterion 3). Narrative description of 
locally initiated efforts in support of the PHA's voucher and 
certificate programs.
______Disabled Families (Criterion 4). Includes a narrative 
description indicating the PHA will use 15 percent or more of the 
vouchers being requested/funded to house disabled families.
______Medicaid Home and Community Based Services Waivers Under 
Section 1915(c) of the Social Security Act (Criterion 5). Includes 
narrative description indicating the percentage of vouchers to be 
issued to disabled families covered by a Section 1915(c) waiver, and 
the collaborative efforts undertaken with the State agency to 
identify eligible families/agreements for future referrals of such 
families from that agency.
______Portability (Criterion 6). Certification statement from PHA 
indicating it is billing another PHA(s) for portable families for 
not less than 5 percent of the certificates and vouchers it 
administers and will use 20 percent of the funds provided by HUD to 
absorb portable families for which it is currently billing another 
PHA(s).
______Description of Primary Market Area. Regional (multi-county) 
and State PHAs clearly identify which cities and counties they will 
use the vouchers in that are within their legal area of operation.
______Statement Regarding Steps PHA Will Take To: (Affirmatively 
Further Fair Housing)
______Eliminate impediments to fair housing identified in local 
Analysis of Impediments (AI) to Fair Housing Choice,
______Remedy discrimination in housing, or
______Promote fair housing rights and fair housing choice.
______Program Summary. Provide a separate, one paragraph statement 
describing how the vouchers being applied for will address the local 
housing needs of eligible families in renting decent, safe, and 
affordable housing. Describe, where applicable, how the vouchers 
will be used to expand existing housing choices, and whether the PHA 
intends to use the vouchers to establish or expand upon its existing 
Family Unification Program, partnerships with local government,

[[Page 13230]]

nonprofit agencies, or private industry groups. Also address any 
related notable local program activities, best practices, or 
accomplishments.
______Application Checklist. A copy of this Checklist has been 
included as part of the PHA's application.

Attachment 3.--Methodology for Determining Lease-Up and Budget 
Authority Utilization Percentage Rates

    Using data from the HUDCAPS system, HUD determined which PHAs 
met the 90% budget authority utilization or 90% lease-up criteria. 
The data used in the determination was based on PHA fiscal years 
ending in 1998. The budget authority utilization and lease-up rates 
were determined based upon the methodology indicated below.

Budget Authority Utilization

    Percentage of budget authority utilization was determined by 
comparing the total contributions required to the annual budget 
authority (ABA) available for the PHA 1998 year combining the 
certificate and voucher programs.
    Total contributions required were determined based on the 
combined actual costs approved by HUD on the form HUD-52681, Year 
End Settlement Statement. The components which make up the total 
contributions required are the total of housing assistance payments, 
ongoing administrative fees earned, hard to house fees earned, and 
IPA audit costs. From this total any interest earned on 
administrative fees is subtracted. The net amount is the total 
contributions required.
    ABA is the prorated portion applicable to the PHA 1998 year for 
each funding increment which had an active contract term during all 
or a portion of the PHA year.

Example

PHA ABC
Fiscal year 10/1/97 through 9/30/98

HUD 52681 Approved Data:
  HAP.....................................................   $2,500,000
  Administrative Fee......................................      250,000
  Hard to House Fee.......................................        1,000
  Audit...................................................        2,000
                                                           -------------
      Total...............................................    2,753,000
Interest earned on administrative fee.....................       (2,500)
                                                           -------------
      Total contributions required........................    2,750,500
 

Calculation of Annual Budget Authority

----------------------------------------------------------------------------------------------------------------
                        Increments                              Contract term        Total BA           ABA
----------------------------------------------------------------------------------------------------------------
001.......................................................     11/01/97-10/31/98      $1,300,000      $1,191,667
002.......................................................     01/01/98-12/31/98       1,200,000         900,000
0030......................................................     04/01/98-03/31/99         950,000         475,000
004.......................................................     07/01/98-06/30/99       1,500,000         375,000
                                                                                 -------------------------------
      Totals..............................................  ....................       4,950,000       2,941,667
----------------------------------------------------------------------------------------------------------------

Budget Authority Utilization

Total contributions required                                  $2,750,000
        divided by
Annual budget authority                                       $2,941,667
        equals
Budget Authority Utilization                                       93.5%
 

Lease-Up Rate

    The lease-up rate was determined by comparing the contract units 
(funding increments active as of the end of the PHA 1998 year) to 
the unit months leased (divided by 12) reported on the combined HUD 
52681, Year End Settlement Statement(s) for 1998.
    Active funding increments awarded by HUD for special purposes 
such as litigation, relocation/replacement, housing conversions, 
etc. were excluded from the contract units as the Department 
recognizes that many of these unit allocations have special 
requirements which require extended periods of time to achieve 
lease-up.

Example

------------------------------------------------------------------------
            Increments                 Contract term          Units
------------------------------------------------------------------------
001..............................     11/01/97-10/31/98             242
002..............................     01/01/98-12/31/98             224
003..............................     04/01/98-03/31/99             178
004..............................     07/01/98-06/30/99             280
                                                        ----------------
    Totals.......................  ....................             924
Increment 003 litigation.........  ....................            (178)
Adjusted contract units..........  ....................             746
Unit months leased reported by     ....................           8,726
 PHA.............................
    divided by 12................  ....................             727
Units Leased.....................  ....................             727
------------------------------------------------------------------------

Lease-Up Rate

Units leased 727
divided by adjusted contract units 746
equals
Lease-Up Rate 97.4%

      
  
  
[FR Doc. 00-6027 Filed 3-9-00; 8:45 am]
BILLING CODE 4210-33-P