[Federal Register Volume 65, Number 127 (Friday, June 30, 2000)]
[Notices]
[Pages 40836-40865]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16544]



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Part VI





Department of Housing and Urban Development





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Funding Availability for the Economic Development Initiative (EDI) 
Community Empowerment Fund (CEF) Pilot; Notice

  Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4596-N-01]


Notice of Funding Availability for the Economic Development 
Initiative (EDI) Community Empowerment Fund (CEF) Pilot

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Notice of Funding Availability.

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SUMMARY: Purpose of the Program. This Notice of Funding Availability 
(NOFA) announces the availability of $10 million in FY-1998 EDI funds 
to stimulate economic development by local governments and private 
sector parties. HUD desires to see the EDI funds made available under 
this NOFA and the related Section 108 funds used to finance loans to 
businesses for eligible economic development projects that will provide 
near-term results and demonstrable economic benefits, such as job 
creation, needed business services and facilities in underserved areas, 
and increases in the local tax base. Under this NOFA (in contrast to 
previous EDI NOFAs), the use of EDI funds is specifically limited to 
the funding of a common debt service/loan loss reserve to enhance the 
security of the related obligations guaranteed by HUD under Section 108 
of the Act (as defined in Section III(A)(1) below). An EDI grant under 
this NOFA must be used in conjunction with a new Section 108-guaranteed 
loan commitment, at a minimum ratio of at least $1 of EDI funds for 
every $7 of new section 108 proceeds used.
    Available Funds. $10 million in funds appropriated for FY-1998 is 
available for EDI grants under this NOFA.
    Eligible Applicants. Eligible applicants are Community Development 
Block Grant entitlement units of general local government and non-
entitlement units of general local government eligible to receive loan 
guarantees under 24 CFR part 570, subpart M. Urban counties as defined 
in 24 CFR 570.3 and 570.307 may apply for funding, but units of general 
local government which participate in the Urban County may not submit 
an application independent of the Urban County.
    Application Deadline. August 18, 2000.
    Match. None.

ADDITIONAL INFORMATION:   

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

    Application Due Date. Please submit your completed applications 
(one original and two copies) on or before 12:00 midnight, Eastern 
time, on August 18, 2000, to the address shown below.
    Address for Submitting Applications. To HUD Headquarters. Submit 
your completed application (an original and one copy) to: Processing 
and Control Unit, Room 7251, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW, Washington, DC 20410, Attention: EDI Grant--CEF Pilot, by 
mail or hand delivery. As noted below, an additional copy of the 
application is requested to be sent to the appropriate HUD Field 
Office. Timeliness of submission of and EDI Grant-CEF Pilot 
application, however, is determined by receipt of the original 
application and one copy to HUD Headquarters.
    There is no application kit for this NOFA. All information and 
material required to submit an application for funding under this NOFA 
are included in the NOFA and the appendices to the NOFA.
    To the Appropriate CPD Field Office. At the same time you submit 
your application to HUD Headquarters, you must submit an additional 
copy of your application to the Community Planning and Development 
Division of the appropriate HUD Field Office for your jurisdiction.
    When submitting your application, please refer to EDI-CEF Pilot, 
and include your name, mailing address (including zip code) and 
telephone number (including area code).
    For Further Information and Technical Assistance. You may contact 
Paul Webster of the Office of Economic Development and Empowerment 
Service, Department of Housing and Urban Development, 451 Seventh 
Street, SW, Room 7180, Washington, DC 20410; telephone (202) 708-1871 
(this is not a toll-free number). Persons with speech or hearing 
impairments may access this number via TTY by calling the toll-free 
Federal Information Relay Service at 1-800-877-8339.
    The Section 108 Loan Guarantee program is not a competitive program 
and therefore is not subject to the HUD Reform Act. HUD staff will be 
available to provide advice and assistance to develop your Section 108 
loan applications.
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of the application. For more information about the date and 
time of the broadcast, you should consult the HUD web site at http://www.hud.gov.

II. Amount Allocated

    A maximum of $10 million is available for the EDI grants under this 
NOFA as appropriated in the Department of Veterans Affairs and Housing 
and Urban Development and Independent Agencies Appropriations Act, 1998 
(Pub. L. 105'65, approved October 27, 1997) (FY 1998 HUD Appropriations 
Act) and set aside for purposes of the development of the CDBG Risk 
Reduction Pool (hereafter, the CEF Pilot) as briefly described in the 
FY 1998 NOFA for Economic Development and Empowerment Programs (see 
Economic Development Initiative Section I(D) at 63 FR 23900).

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. For purposes of this NOFA, the EDI funds 
awarded will be used solely to fund a common debt service/loan loss 
reserve account to enhance the security of related obligations 
guaranteed by HUD under Section 108 of the Act (as defined in Section 
III(A)(1) below). An EDI grant must be used in conjunction with a new 
Section 108 guaranteed loan commitment as more fully described later in 
this document. Both Section 108 loan guarantee proceeds and EDI grant 
funds are initially made available by HUD to public entities approved 
for assistance pursuant to this NOFA. Each such public entity will use 
the Section 108 loan proceeds to make loans to businesses to finance 
eligible economic development projects and will assign its rights under 
the related loan documents to a pooling entity (described in this NOFA 
as the ``CEF Pilot''). Concurrently, the public entity will provide EDI 
funds to the CEF Pilot to be deposited into a common debt service/loss 
reserve. Pursuant to 31 U.S.C. 1552, all EDI funds awarded under this 
NOFA must be expended by September 30, 2005. Consequently, all business 
loans made with related section 108 proceeds must be closed and taken 
into the pool administered by the CEF Program Manager by September 30, 
2005. EDI funds not so expended by September 30, 2005 may be recaptured 
by HUD. HUD reserves the right to set an earlier date for such 
expenditures in the EDI and/or Section 108 loan guarantee documents.
    (1) Definitions. Terms used in this NOFA have the meanings given in 
24 CFR part 570 unless otherwise specified.
    Act means Title I, Housing and Community Development Act of 1974, 
as amended, (42 U.S.C. 5301-et seq.).
    Application means a single set of documents submitted by an 
eligible

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applicant for EDI grant funds accompanied by a Section 108 loan 
guarantee request in accordance with the provisions of this NOFA to 
finance a economic development projects.
    Business loan means a loan made with Section 108 proceeds by a 
participating community selected under this NOFA in accordance with the 
terms of this NOFA for an eligible economic development project.
    CDBG funds means those funds collectively defined at 24 CFR 570.3, 
including grant funds received pursuant to section 108(q) of the Act 
and this NOFA.
    CEF Pilot means a not-for-profit limited liability company 
(``LLC'') that is organized pursuant to Delaware law to serve as the 
pooling entity to hold and administer business loans made by applicants 
selected under this NOFA.
    CEF Program Manager means the contractor selected by HUD to manage 
the CEF Pilot. The contractor at this time and its team of 
subcontractors are described in Section III(A)(5)(h) of this NOFA.
    Economic Development Initiative (EDI) means the competitive award 
of economic development grant assistance under section 108(q) of the 
Act, as authorized by Section 232 of the Multifamily Housing Property 
Disposition Reform Act of 1994 (Pub.L. 103-233, approved April 11, 
1994).
    Economic development project means a loan to a for-profit business 
to finance a project that is eligible under the Act and under 24 CFR 
570.703(i)(1)-570.203(b), and that increases economic opportunity for 
persons of low-and moderate-income or that stimulate or retain 
businesses or jobs or that otherwise lead to economic revitalization.
    Empowerment Zone or Enterprise Community means an urban area so 
designated by the Secretary of HUD pursuant to 24 CFR part 597 or part 
598, or a rural area so designated by the Secretary of Agriculture 
pursuant to 7 CFR part 25, subpart B.
    Strategic Plan means a strategy developed and agreed to by the 
nominating local government(s) and State(s) and submitted in partial 
fulfillment of the application requirements for an Empowerment Zone or 
Enterprise Community designated pursuant to 24 CFR part 597 or part 
598.
    (2) Background. (a) HUD has multiple programs which are intended to 
stimulate and promote economic and community development. Primary among 
HUD's resources are the Community Development Block Grant (CDBG) 
program and the Section 108 loan guarantee program.
    (b) The CDBG program provides grant funds (approximately $4.240 
billion in FY 2000) by formula to eligible local governments (either 
directly or through States) to carry out community and economic 
development activities. In general, the Section 108 loan guarantee 
program provides local governments with a source of financing for 
economic development, public facilities and other eligible physical 
development projects. More specifically, proceeds from loans guaranteed 
under section 108 can be used to make loans to third parties (e.g., for 
loans to for-profit businesses where such assistance is appropriate to 
carry out economic development projects), as described in this NOFA.
    HUD is authorized pursuant to Section 108 to guarantee notes issued 
by CDBG entitlement communities, and non-entitlement units of general 
local government eligible to receive funds under the State CDBG 
program. The Section 108 program is subject to the regulations of 24 
CFR part 570 applicable to the CDBG program, as described in 24 CFR 
part 570, subpart M. EDI grants must support Section 108 loan 
guarantees as generally described in this NOFA.
    (c) For FY 2000, the Section 108 program is authorized at $1.261 
billion in loan guarantee authority. The full faith and credit of the 
United States will be pledged to the payment of all guarantees made 
under Section 108. Under this program, communities (and States, if 
applicable) are required by the Act to pledge their continuing CDBG 
allocations as security for loans guaranteed by HUD. However, for 
purposes of this NOFA, the CEF Pilot will be responsible, to the extent 
of reserve funds available, for making all payments on the Section 108 
loans from amounts it collects on the business loans and from the loss 
reserve created from the EDI funds contributed by participating 
communities. Only if such reserves are exhausted will a community (or 
State, if applicable) be required to use CDBG funds to pay the amount 
of any payment then due on its related Section 108 obligation and not 
paid by the LLC from reserves.
    (3) EDI Program. The EDI program was enacted in 1994 and is 
intended to complement and enhance the Section 108 Loan Guarantee 
program. A purpose of EDI grant funds is to reduce grantees' potential 
loss of future CDBG allocations:
    (a) By strengthening the economic feasibility of the projects 
financed with Section 108 funds (and thereby increasing the probability 
that the project will generate enough cash to repay the guaranteed 
loan);
    (b) By directly enhancing the security of the section 108-
guaranteed obligations; or
    (c) Through a combination of these or other risk mitigation 
techniques.
    (4) Purpose of this EDI NOFA. For purposes of this NOFA, HUD is 
requiring EDI and related Section 108 funds to be used solely to 
finance business loans meeting the criteria described in Section 
III(A)(5) of this NOFA. HUD expects such loans to provide near-term 
results and demonstrable economic benefits, such as job creation, area 
benefit through improved business services and facilities in 
underserved areas, and increases in the local tax base. The use of EDI 
funds provided under this NOFA is specifically limited to enhancing the 
security of related section 108-guaranteed obligations issued by 
eligible applicants selected under this NOFA. When a business loan 
eligible under this NOFA is approved for inclusion in the common 
security pool, the participating community will be required to 
authorize the requisite EDI contribution in connection with that 
business loan to be paid into a common debt service/loan loss reserve 
interests in which will serve as part of the security for the related 
section 108-guaranteed obligations. The process of underwriting and 
approval of the business loans, the determination of the amount of the 
related EDI contributions, and how the business loan pool and related 
debt service/loan loss reserve will be set up and administered is 
described in Section III(A)(5) of this NOFA.
    The CEF Pilot pooled business loan and security structure described 
in this NOFA for EDI-Section 108 financing is intended to supplement, 
but not to replace, the regular EDI and Section 108 loan guarantee 
programs. If funds are appropriated for EDI in the future, HUD would 
expect, subject to Congressional direction, to continue both the CEF 
Pilot financing structure and the regular EDI and Section 108 programs.
    (5) Description of the CEF Pilot. The CEF Pilot is designed to 
mitigate the risk of loss to a community's CDBG program inherent in 
making business loans funded by Section 108 loans. The CEF Pilot 
combines modern private sector financial engineering with privatization 
of much of the administration of business loans.
    (a) How the CEF Pilot will operate. The CEF Pilot will hold and 
service the Section 108 qualifying business loans that are placed into 
the CEF Pilot by participating communities. The key components of the 
CEF Pilot are: the use of EDI grant funds to provide a pooled cash 
reserve to cushion against losses

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resulting from defaults on business loans funded through the Section 
108 program; and pooling of credit risk associated with the business 
loans.
    In return for the assignment of business loan assets to the CEF 
Pilot, the community receives an interest in the CEF Pilot's assets--
the EDI cash reserve, payments from the business borrowers, and 
potential investment earnings on the CEF Pilot's available cash. The 
CEF Pilot is designed to provide a flow of cash payments that will 
effectively over-collateralize the community's related liabilities 
under its corresponding Section 108 note or notes. To the extent of 
available cash, the CEF Pilot will make payments on the Section 108 
note(s) for each participating community and deposit any excess payment 
received from the business borrower into the cash reserve account. The 
cash reserve account will absorb business loan losses, until exhausted. 
At the end of the CEF Pilot, participating communities will receive a 
distribution of any remaining cash in the cash reserve account. This 
distribution will be adjusted in proportion to the losses experienced 
by the pool on loans the communities have placed in the pool.
    In addition to the community building achieved from strengthening 
new and expanding businesses through Section 108 financing, communities 
will receive substantial benefits from participating in the CEF Pilot. 
They include:
 Professional private sector underwriting and loan pricing
 Significantly reduced Section 108 loss exposure due to:
     Professional assessment of loan-by-loan credit risk
     EDI grant funded cash reserve to absorb losses, until 
exhausted
     Modern servicing techniques
     Pooling of credit risk
     Simplified, streamlined Section 108 and EDI approvals
     Relief from the administrative burden of servicing Section 
108 Business Loans
     Potential cash distribution of any excess cash reserve to 
participating communities on dissolution of the CEF Pilot, adjusted for 
losses on loans the community placed into the pool.
    HUD will continue its full faith and credit guarantee of timely 
payment of principal and interest to the investors that provide the 
Section 108 funding to municipalities and their constituents through 
the standard interim financing and underwritten public offering 
processes. Participating communities will continue to be the borrowers 
from the Section 108 program and they will continue to secure that 
borrowing with a pledge to HUD of CDBG grants. Thus, communities should 
note that HUD cannot assure that CDBG funds will never have to be used 
for Section 108 debt service. However, the CEF Pilot's cash reserve and 
its modern pooling and credit enhancement techniques should virtually 
eliminate the possibility of catastrophic losses to communities as a 
result of borrowing under Section 108. Moreover, as noted above, any 
excess cash in the reserve account will be distributed to the 
participating communities when the CEF Pilot wraps up its existence.
    As discussed below, the use of professional and centralized 
servicing and administration of the Section 108 business loans accepted 
into the CEF Pilot will address any payment delinquencies efficiently 
and mitigate the likelihood of a business loan default. In addition, 
any default or workout situation will be handled by the CEF Program 
Manager directly with the business borrower and not with the 
participating community.
    (b) Types of loans that the CEF Pilot will accept. Business loans 
accepted by the CEF Pilot must meet the specific requirements of both 
HUD and the CEF Program Manager. The streamlined application and 
approval process is summarized in the section titled ``The CEF Pilot 
Business Loan Underwriting and Pricing Process'' below. Each business 
loan must comply with the program requirements described in Section IV 
of this NOFA. Each business loan will also be documented and secured 
using standard loan and security instrument forms to be supplied by the 
CEF Program Manager, customized as necessary for settlement of the 
business loan.
    The separate CEF Pilot requirements are stated in the CEF Pilot 
Business Loan Underwriting and Pricing Guidelines (the ``underwriting 
guidelines'') that are summarized below (see section III(C)(5)(c)(i) of 
this NOFA for availability to applicants of the underwriting 
guidelines). Most notable among these underwriting requirements is the 
type of collateral. The primary security must be a recorded lien on 
real estate owned or leased by the recipient of the business loan. HUD 
expects that most of the loans in the pool to be set up pursuant to 
this NOFA will be secured solely by liens on real estate. However, 
liens on ``hard'' physical assets such as machinery and equipment will 
be considered as supplemental security, which will be closely 
scrutinized as to value, useful life, and general suitability as 
security. Only the collateral and not the ``purpose'' of the Section 
108 business loan will determine its acceptability. Thus, for example, 
even if a business borrower intends to use the loan proceeds for 
expanding its inventory, the business loan may be approved for the CEF 
Pilot if the borrower provides acceptable real property collateral.
    Loans originated by communities in connection with business 
borrowers' development, construction and rehabilitation projects can be 
pre-approved. The Section 108 interim lending facility can be utilized 
for the construction stage financing. The CEF Pilot, subject to the 
completion of the construction work, will accept permanent financing of 
such loans.
    The minimum size for a single business loan to be included in the 
pool to be set up pursuant to this NOFA is two hundred thousand dollars 
($200,000). The maximum business loan size is two million dollars 
($2,000,000). Without prior approval from both HUD and the CEF Program 
Manager, no single community can place business loans into the CEF 
Pilot totaling more than ten million dollars ($10,000,000). It is 
anticipated that a participating community will use Section 108 
guaranteed loan funds to make multiple business loans.
    Loan terms may range from fifteen to twenty years with loan 
amortization schedules not to exceed thirty years. Moreover, the 
cumulative scheduled principal and interest payments on the 
corresponding Section 108 note may not exceed the cumulative scheduled 
monthly amortization on the business loan or loans for the same period.
    The interest rate on each business loan will exceed the interest 
rate on the community's corresponding Section 108 obligation. The 
amount of such ``spread'' depends upon the credit risk presented by the 
particular loan as set forth in the underwriting guidelines, and will 
be established by the CEF Program Manager.
    To defray start-up expenses, the CEF Pilot will assess an 
``acceptance fee'' on all business loans when the loan proceeds are 
remitted to the business borrower. (See Section III(A)(5)(g) which 
addresses fees and expenses.) The business borrower may pay the 
acceptance fee at the closing of the project loan, or the community may 
elect to capitalize the amount of this fee into the Section 108 note 
and the principal amount of the business loan.
    (c) The CEF Pilot Business Loan Underwriting and Pricing Process. 
The CEF Pilot will utilize the uniform underwriting guidelines for all 
business loans considered for contribution into the CEF Pilot. The 
necessary steps to

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take a project from its origination to underwriting and then to 
acceptance by the CEF Pilot involve three major processes: 
qualification and application, underwriting and due diligence, and 
commitment and closing.
    (i) Qualification and Application. The first step in the 
qualification and application process is the pre-qualification and 
training of local loan originators/underwriters selected by the CEF 
Program Manager. The training process will also include training for 
the participating communities with regard to the CEF program and 
underwriting guidelines. An integral component of the underwriting 
guidelines is the CEF pricing model (the ``pricing model'').

    (Note: The CEF Pilot underwriting manual, including underwriting 
guidelines, and related documents will be available from HUD 
Headquarters upon request, to the extent they are completed by the 
CEF Program Manager and approved by HUD. Please contact the HUD 
office identified under ``For Further Information and Technical 
Assistance under Section I of the NOFA.)

    The local loan originators/underwriters will initiate the 
application process and utilize the CEF Pilot underwriting and pricing 
guidelines to ``size'' and price the business loans. The pricing model 
will determine the optimal loan terms, applicable risk tier of the 
business loan and the corresponding amount of EDI or other funds 
required for the cash reserve.
    If a business loan successfully passes the initial review by the 
local originator/underwriter, the CEF Pilot's central underwriter 
(identified below) will conduct a preliminary review of the efforts of 
the local originator/underwriter and determine if the business loan is 
congruent with the type and quality of assets to be contributed to the 
CEF Pilot. If necessary, the central underwriter will revise the 
preliminary pricing and initial required reserve amount as appropriate 
and provide the potential project with indicative loan terms.
    In parallel, the HUD Field Office will review the proposed project 
(not the CEF pricing) for compliance with Section 108 program 
requirements. If the local HUD office approves the proposed project, 
Section 108 funds are made available to the community to fund the 
business loan. It is important to highlight the separation of roles: 
the community and HUD will continue to review projects for compliance 
with the various requirements of Section 108, while the CEF Program 
Manager and its team will review business loans for compliance with the 
underwriting criteria of the CEF Pilot.
    The final step in this initial process is for the community or the 
local originator/underwriter to prepare and issue the standard CEF 
Pilot Loan Application to the business borrower. If the business 
borrower elects to execute the loan application, the business borrower 
will be charged an application fee. (See Section III(C)(5)(g) for a 
discussion of fees.) The estimated timeframe for the steps involved in 
qualification and application process is five to seven business days.
    (ii) Underwriting and Due Diligence. The next process is formal 
underwriting and due diligence. Once the business borrower executes the 
formal application, the community engages the pre-qualified and trained 
local originator/underwriter to initiate formal underwriting of the 
project under consideration. The local originator/underwriter processes 
the loan application and underwrites the proposed transaction using the 
CEF Pilot Underwriting Manual. The local originator/underwriter 
maintains close contact with the CEF Pilot central underwriter so that 
any underwriting issues are identified and addressed as early in the 
process as possible. The local originator/underwriter will document its 
conclusion in a Loan Recommendation Memorandum. This memorandum (a 
spreadsheet-based template) will document the local originator/
underwriter's compliance with the underwriting guidelines, as well as 
document the local originator/underwriter's assumptions and argument 
for the conclusion that the loan be either approved, approved subject 
to specific conditions, or rejected. The local originator/underwriter 
will make every effort to present the case subject to the least 
possible number of closing conditions.
    The central underwriter then reviews the loan recommendation 
memorandum, with all pertinent supporting documentation and reports. 
The central underwriter arranges for a loan committee meeting via 
telephone conference. The loan committee is composed of experts from 
the CEF Program Manager's contractor team. In this meeting, the local 
originator/under-writer will present and defend its recommendation. The 
meeting will culminate with one of the following from the central 
underwriter: concurrence; concurrence subject to revisions; or 
rejection of the local originator/underwriter's recommendation. The 
central underwriter will have the right to reject any proposed business 
loan based on its determination that the loan presents an undue risk to 
the overall pooled loan portfolio. Concurrence or rejection by the 
central underwriter will be documented by a Loan Approval/Denial Letter 
summarizing the loan terms as approved or revised, along with any 
conditions to its approval or advice of its denial. In the case of an 
approved business loan, this document obligates the CEF Pilot to accept 
the funded business loan if all conditions to approval are satisfied. 
The estimated timeframe for the formal underwriting and due diligence 
process is twenty five to thirty five business days.
    (iii) Commitment and Closing. After completion of formal 
underwriting, the central underwriter prepares a Commitment Letter and 
forwards it to the local originator/underwriter. The local originator/
underwriter forwards the commitment letter to the community for 
execution (after completion of the community's environmental review and 
HUD approval of a release of funds in accordance with Section VIII(A) 
of this NOFA) and delivery to the business borrower. Assuming that the 
business borrower signs and returns the commitment letter to the 
community, the community forwards copies of the executed commitment 
letter to the local originator/underwriter and the central underwriter. 
The local originator/ underwriter works with the business borrower to 
satisfy any conditions of closing the loan. The satisfaction of closing 
conditions is evidenced by Closing Condition Memoranda to be prepared 
by the local originator/underwriter and forwarded to the central 
underwriter who concurs that specific conditions have been satisfied. 
Also during this period, the settlement attorney (in accordance with 
standard business practice the business borrower pays for legal closing 
documentation to be collected under the direction of the central 
underwriter) prepares the CEF Pilot's standard loan documents. The 
business borrower is given a reasonable opportunity to review the loan 
and security documents for its loan prior to execution. The CEF Program 
Manager informs the community and the local HUD office that the 
transaction should be funded upon execution and delivery of closing 
documentation, which will satisfy all closing conditions, to the 
central underwriter. Section 108 funds are disbursed to the business 
borrower via the CEF Transmittal Account with simultaneous exchange of 
the loan and related documents contributed to the CEF Pilot (see more 
complete description of this process at Section III(C)(5)(f), below). 
The estimated

[[Page 40840]]

timeframe for commitment and closing is twenty to thirty business days 
after completion of underwriting and due diligence.
    (d) Structure of the CEF Pilot. The legal form of the ``CEF Pilot'' 
is a not-for-profit limited liability company (``LLC'') that is 
organized pursuant to Delaware law. The term ``CEF Pilot'' is used 
herein to refer to the LLC. Participating communities will place 
qualifying business loans into the CEF Pilot, and communities awarded 
EDI grant funds under this NOFA will commit to use these funds for the 
CEF Pilot's pooled cash reserve. Specific reserve amounts per loan will 
be determined by application of the underwriting guidelines on a case-
by-case basis as described above. In return for such contributions the 
participating communities will receive ``member interests'' initially 
based upon the principal amount of the business loans that they place 
in the CEF Pilot.
    Once a business loan is approved for the CEF Program and assigned 
to the CEF Pilot, participating communities will have no further 
administrative burden with respect to financial servicing and 
collection of the business loan. The CEF Pilot will hold the business 
loan assets and will receive and account for the business borrowers' 
loan payments. However, the community remains responsible for any data 
collection, reporting and compliance issues with respect to 
``programmatic'' matters--Section 108/EDI national objectives, public 
benefit and other regulatory requirements.
    The business borrowers will make their loan payments directly to 
the CEF Pilot's central servicer. The CEF Pilot will receive payments 
from the central servicer periodically and will be required to use the 
cash that it collects to make the principal and interest payments on 
the corresponding Section 108 notes and to pay its operating expenses. 
Available cash in excess of those requirements will be added to the 
cash reserve and invested in accordance with the approved investment 
guidelines. The cash reserve will be used as necessary to enable the 
CEF Pilot to meet the payment obligations on the Section 108 notes when 
there are shortfalls caused by loan delinquencies, defaults and 
collection losses. If the cash reserve experiences a shortfall in 
available cash at anytime, the shortfall will be apportioned ratably to 
all participating communities. Should any community not have CDBG 
allocations available to make a payment then due on the related Section 
108 note as a result of the shortfall, HUD will be required to honor 
its guarantee of the community's Section 108 note in the amount of the 
shortfall when the payment is due. Should the community later have 
sufficient CDBG allocations available, HUD will recoup its guarantee 
payment from that source. However, as in the regular Section 108 
program, the community will not be generally liable for payment from 
non-CDBG sources unless the community specifically agrees to another 
source of repayment (see 24 CFR 570.705(b)(3) and (d)).
    The CEF Pilot is ``self-liquidating'' in that its assets will 
naturally shrink over time as business loans amortize or pre-pay, or as 
the Pilot collects on the collateral for any business loans that may 
have defaulted. Eventually, therefore, the CEF Pilot will have no more 
loan assets. This may be twenty years after the formation of the CEF 
Pilot (the maximum permissible term for the business loans), but it may 
be somewhat earlier due to prepayments. Additional payments may occur 
some time later due to prolonged servicing and workouts of business 
loans. Thus, the ``lifetime'' for the CEF Pilot cannot be predicted 
with certainty.
    The CEF Pilot is designed with the intention that by the time that 
the CEF Pilot has collected upon all of the business loans, the CEF 
Pilot will have fully paid the related Section 108 notes. It is also 
anticipated that an excess cash reserve will then remain in an amount 
that may be distributed to the participating communities in proportion 
to their outstanding member interests, adjusted as described below. It 
is likely that the amount of the reserve will fluctuate somewhat over 
time in a path determined by the flow of payments into and out of the 
CEF Pilot, the timing and resolution of credit problems, and the CEF 
Pilot's return on investment for the reserve. If actual losses 
experienced are not substantially in excess of expectations, however, 
there should be an excess cash reserve available for distribution to 
the participating communities. The amount a participating community is 
eligible to receive from such distribution will be reduced if a 
business loan it assigns to the CEF Pilot defaults and the default 
results in a loss. The amount of the reduction will be proportionate to 
the loss or losses incurred.
    (e) Credit Enhancements for Participating Communities. The CEF 
Pilot takes advantage of several modern techniques for minimizing 
credit risk:
     Professional, objective, and independent underwriting 
judgment in the pricing of loans is the principal credit loss 
safeguard.
     The use of EDI grant funds to establish the cash reserve 
that will be the initial ``cushion'' to absorb loan losses.
     There will be a credit ``spread'' between the interest 
rates charged business borrowers on the qualifying business loans 
contributed to the CEF Pilot as compared to the (lower) interest rate 
assessed on the community's Section 108 note obligation.
     The CEF Pilot will have both the EDI grant funds and the 
cash generated by the interest rate spread available in the reserve to 
absorb credit losses. The CEF Pilot will invest the reserve (in safe 
and liquid obligations approved by HUD) so that there are earnings on 
the reserve to absorb further any credit losses.
     The pooling of losses against the pooled reserve minimizes 
the probability that total losses will exceed the total reserve.
    The general principle underlying the CEF Pilot's credit enhancement 
is ``over-collateralization.'' This means that, because of the initial 
EDI funding of the reserve, plus the cash inflow from the interest rate 
spread, recoveries on collateral, and earnings on the reserve over 
time, the CEF Pilot should always have assets on hand that exceed the 
amount of the corresponding Section 108 liabilities provided that loan 
losses do not significantly exceed expectations.
    The Underwriting Guidelines, the financial design of the CEF Pilot, 
and the prospective amounts of EDI grants, are such that HUD is 
reasonably confident that the reserve will insulate participating 
communities from credit losses of a catastrophic nature.
    (f) Administration and Servicing of business loans. The CEF Pilot 
involves communities early, as business loans are approved by HUD and 
by the CEF Pilot central underwriter at origination, but the CEF 
Program Manager and the other members of the CEF Program Manager's 
contractor team then relieve communities of the ongoing administrative 
burden of servicing and collection of the loan, as described above in 
this NOFA.
    There will be a standardized CEF Pilot document package that will 
be used for the underwriting, approval and origination of all business 
loans.
    The CEF Program Manager has established a transmittal account for 
all Section 108 fundings. When a business loan is approved (by HUD and 
by the CEF Pilot) and ready to close, the lending community will 
execute and deliver the Section 108 note and will cause the Section 108 
funds to be transferred into the CEF Pilot's transmittal account. When 
the underlying business loan closes, the

[[Page 40841]]

participating community will direct the transfer of proceeds to the 
business borrower's account against delivery of the borrower's note, 
collateral documents and other loan documents.
    The participating community will authorize delivery of the business 
borrower's loan documents to the CEF Pilot with documentation of the 
transfer of ownership of the business borrower's note to the CEF Pilot. 
The CEF Pilot will contemporaneously receive the corresponding loss 
reserve contribution (source: EDI grant or other funds). Other than 
monitoring periodic reports from the Pilot, the lending community is 
relieved of any financial loan management responsibilities after 
closing the project loan. (The community does retain responsibility for 
ensuring compliance with all program requirements, e.g., complying with 
the CDBG national objectives and public benefit requirements and 
ensuring business borrower's compliance with any conditions imposed as 
a result of the environmental review.) (See Section III(C)(2) of this 
NOFA.) The community will be able to use the periodic reports as a 
source of information that may assist it in monitoring compliance with 
program requirements (e.g., if a business loan is in default, it may 
indicate a problem in meeting minimum job creation requirements) as 
well as monitoring the financial status of the CEF Pilot.
    The business borrowers will send their monthly loan payments 
directly to the CEF Pilot's central servicer for processing. The CEF 
Pilot will also directly remit the required Section 108 note payments 
of principal and interest to the Section 108 Fiscal Agent and Trustee.
    The CEF Pilot will issue regular financial reports to the 
participating communities and to HUD that detail the performance of the 
loan assets, account for cash inflows and outflows, and report changes 
in the amounts of the cash reserve balance, the unpaid principal of the 
still outstanding business loans, and the outstanding Section 108 note 
balance.
    (g) Fees and Expenses. The CEF Pilot will charge an application fee 
to each business borrower for business loans considered for acceptance. 
For business loans accepted by the CEF Pilot, each business borrower 
will be charged an acceptance fee of up to sixty two and one half basis 
points (.625%) of the business loan amount. In addition, the CEF Pilot 
will charge an annual operating fee of not less than .75% and not more 
than 1.25% of the then outstanding balance of the loan assets, payable 
monthly, depending on the size of the loan pool. (The ability of the 
business borrower to make all payments on the business loan, including 
the monthly fees, will be an underwriting consideration.)
    There may be certain additional expenses that the CEF Pilot incurs, 
and which the business loan documents will require the business to pay. 
Examples of these expenses are the costs of collecting on collateral 
for defaulted loans, such as legal fees, recording fees, trustee's fees 
and the like. In addition there may be incentive fees paid to a Special 
Servicer engaged to collect upon seriously delinquent or defaulted 
loans. However, these fees will not be assessed against the 
participating communities.
    (h) The CEF Team of Private Sector Contractors. The Bank of New 
York Company, Inc. (``BNY'') is the CEF Program Manager. BNY is a 
leading provider of investor and trust services worldwide. BNY will 
also serve as the Manager of the LLC that the CEF Pilot program first 
establishes.
    Altschuler, Melvoin and Glasser LLP (``AM&G'') is responsible for 
underwriting and pricing the business loans originated by the 
participating communities and together with certain affiliates will 
serve as the Central Servicer and Central Underwriter for the CEF 
Pilot.
    First Security Investor Reporting (``First Security'') is 
responsible for the CEF loan pricing model and portfolio reporting. 
First Security will work closely with AM&G and HTCNY throughout the CEF 
Pilot.
    Brown & Wood LLP (``Brown & Wood'') is Counsel to the CEF Program 
Manager. Brown & Wood is an international law firm headquartered in New 
York, and has approximately 400 attorneys worldwide. Brown & Wood has 
substantial experience with securitization, public finance and other 
financial practice areas of particular relevance to the CEF Program.
    Kormendi/Gardner Partners (``KGP'') is the Financial Advisor to the 
Program Manager.
    In addition to the above identified contractors, the CEF Program 
Manager will select the local underwriters.
    (i) The Program Manager was selected by HUD by competition under 
Federal contracting procedures, and the development of documentation 
such as the Underwriting Manual, pricing model, standard loan 
documents, and other necessary documentation, including documents for 
the creation of the CEF Pilot LLC, was funded by HUD's Office of Policy 
Development and Research under a Federal procurement contract. The 
contract provides for certain program evaluation and reporting 
responsibilities for the Program Manager. Public entities selected for 
EDI assistance, and receiving related Section 108 loan guarantee 
assistance, as well as businesses applying for or receiving business 
loans through the CEF Pilot, shall cooperate with the Program Manager 
and HUD in providing reasonable information deemed necessary by HUD in 
connection with such program evaluation.
    (B) Eligible Applicants. Any public entity eligible to apply for 
Section 108 loan guarantee assistance pursuant to 24 CFR 570.702 may 
apply for EDI grant assistance under Section 108(q). Eligible 
applicants are CDBG entitlement units of general local government and 
non-entitlement units of general local government eligible to receive 
loan guarantees under 24 CFR part 570, subpart M. Urban Counties, as 
defined at 24 CFR 570.3 and 570.307, are eligible applicants for EDI 
funds; units of general local government which participate in an Urban 
County program are not independently eligible applicants. For non-
entitlement applicants other than those subject to 24 CFR 570, subpart 
F, applicants will be required to provide proof that the State will 
support the related Section 108 loan with a pledge of its CDBG funds 
pursuant to the requirements of 24 CFR 570.705(b)(2). Note that 
effective January 25, 1995, non-entitlement public entities in the 
states of New York and Hawaii were authorized to apply to HUD for 
Section 108 loans (see 59 FR 47510, December 27, 1994). Thus, non-
entitlement public entities in all 50 states and Puerto Rico are 
eligible to participate in the Section 108 and EDI programs. (Please 
note, however, that the State of New York has initiated the process of 
electing to administer the CDBG program in non-entitlement areas of the 
state; consequently, New York non-entitlement public entities may be 
required to provide proof that the State is willing to pledge its CDBG 
funds to the repayment of the Section 108 obligations.)
    (C) Eligible Activities and National Objectives. (1) EDI grant 
funds awarded under this NOFA shall be used solely for the purpose of 
establishing debt service/loan loss reserves, eligible under 24 CFR 
570.703(k). Section 108 loan guarantee funds may be used solely for 
activities listed at 24 CFR 570.703(i)(1) and 24 CFR 570.203(b). If 
your application, including the section 108 request (see Section IV(I) 
of this NOFA), fail to provide for these uses, HUD will not give the 
application a rating.

[[Page 40842]]

    (2) Each activity assisted with Section 108 loan guarantee or EDI 
funds must meet a national objective of the CDBG program as described 
in 24 CFR 570.208. You must clearly identify in your narrative 
statement (as described in Section V.(D) below) the CDBG national 
objective your proposed project will achieve and provide the 
appropriate CDBG national objectives regulatory citation found at 24 
CFR 570.208. Also, you must address how your proposed activities will 
comply with the public benefit standards of the CDBG program as 
reflected in the regulation at 24 CFR 570.209 for the CDBG Entitlement 
and Small Cities programs or 24 CFR 570.482 for the State CDBG program.
    In the aggregate, your use of CDBG funds, including any Section 108 
loan guarantee proceeds and section 108(q) (EDI) funds provided 
pursuant to this program section of this NOFA, must comply with the 
CDBG primary objectives requirement as described in section 101(c) of 
the Act and 24 CFR 570.200(c)(3), or 24 CFR 570.484 in the case of 
State grantees.
    You will be responsible for determinations, record-keeping and 
other documentation of compliance with the eligibility, national 
objectives, and public benefit requirements, and other applicable 
statutory and regulatory requirements applicable to EDI and section 108 
funds (as cited in this Section 111(C), with HUD approval, in a manner 
similar to other EDI/section 108 awards. However, since the business 
loans and EDI funds contributed to the common debt service/loan loss 
reserve will be common security for all of the related section 108 
obligations issued by the participating jurisdictions selected under 
this NOFA, and all such loans must be closed on standard loan documents 
provided by the Program Manager as described in Section III(A)(5) of 
this NOFA, you must enter into any specific agreements with 
participating businesses that you deem necessary for purposes of 
compliance with such requirements, such as job creation goals, business 
location requirements, etc, separately from the standard loan documents 
provided by the Program Manager.

IV. Program Requirements

    This section provides requirements that are applicable to 
applicants for funding under this NOFA as well as applicants that are 
awarded EDI grants under this NOFA.
    (A) CDBG Program Regulations. In addition to 24 CFR 570.701 
(Definitions), 570.702 (Eligible applicants), and 570.703 (Eligible 
activities), as explained elsewhere in this NOFA, the CDBG regulatory 
requirements in 24 CFR 570.707, including subpart J (Grant 
Administration), subpart K (Other Program Requirements), and subpart O 
(Performance Reviews) govern the use of EDI funds, as applicable.
    (B) Compliance with Applicable Laws. An award of EDI funding does 
not in any way relieve you or third party users of EDI funds from 
compliance with all applicable Federal, State and local laws.
    (C) Thresholds Requirements--Compliance with Fair Housing and Civil 
Rights Laws. All applicants and their subrecipients must comply with 
all Fair Housing and civil rights laws, statutes, regulations and 
executive orders as enumerated in 24 CFR 5.105(a). If you are a 
Federally recognized Indian tribe, you must comply with the 
nondiscrimination provisions enumerated at 24 CFR 1000.12. While an 
Indian tribe is not an eligible direct recipient of a section 108 loan 
guarantee, an Indian tribe may be a subrecipient of an eligible unit of 
general local government.
    If you, the applicant--
    (1) Have been charged with a systemic violation of the Fair Housing 
Act by the Secretary alleging ongoing discrimination;
    (2) Are a defendant in a Fair Housing Act lawsuit filed by the 
Department of Justice alleging an ongoing pattern or practice of 
discrimination; or
    (3) Have received a letter of noncompliance findings under Title 
VI, Section 504, or Section 109--
    HUD will not rate and rank your application under this NOFA if the 
charge, lawsuit, or letter of findings has not been resolved to the 
satisfaction of the Department before the application deadline stated 
in this NOFA. HUD's decision regarding whether a charge, lawsuit, or a 
letter of findings has been satisfactorily resolved will be based upon 
whether appropriate actions have been taken to address allegations of 
ongoing discrimination in the policies or practices involved in the 
charge, lawsuit, or letter of findings.
    (D) Additional Nondiscrimination Requirements. You, the applicant 
and your subrecipients, must comply with the Americans with 
Disabilities Act of 1990 (42 U.S.C. 1201 et seq.), and Title IX of the 
Education Amendments Act of 1972 (20 U.S.C. 1681 et seq.).
    (E) Affirmatively Furthering Fair Housing. If you are a successful 
applicant, you will have a duty to affirmatively further fair housing. 
Again, except as may be provided otherwise in this NOFA, you, the 
applicant, should include in your application or work plan the specific 
steps that you will take to:
    (1) Address the elimination of impediments to fair housing that 
were identified in the jurisdiction's Analysis of Impediments (AI) to 
Fair Housing Choice;
    (2) Remedy discrimination in housing; or
    (3) Promote fair housing rights and fair housing choice.
    Further, you, the applicant, have a duty to carry out the specific 
activities provided in your responses to the NOFA rating factors that 
address affirmatively furthering fair housing. However, such activities 
may not be funded from the EDI funds awarded under this NOFA since the 
funds must be used exclusively for debt service/loan loss reserves.
    Since all eligible applicants will also be CDBG grantees, or 
nonentitlement CDBG recipients from States, the applicant may satisfy 
its affirmatively furthering fair housing obligation hereunder by 
referring to satisfactory provisions in its Consolidated Plan, as 
applicable.
    (F) Economic Opportunities for Low and Very Low-Income Persons 
(Section 3). If you are awarded an EDI grant, you will be required to 
comply with section 3 of the Housing and Urban Development Act of 1968, 
12 U.S.C. 1701u (Economic Opportunities for Low and Very Low-Income 
Persons in Connection with assisted Projects) and the HUD regulations 
at 24 CFR part 135, including the reporting requirements in subpart E 
of part 135. Section 3 requires recipients to ensure that, to the 
greatest extent feasible, training, employment and other economic 
opportunities will be directed to (1) low and very low income persons, 
particularly those who are recipients of government assistance for 
housing and (2) business concerns which provide economic opportunities 
to low-and very low-income persons.
    (G) Relocation. Any person (including individuals, partnerships, 
corporations or associations) who moves from real property or moves 
personal property from real property directly (1) because of a written 
notice to acquire real property in whole or in part, or (2) because of 
the acquisition of the real property, in whole or in part, for a HUD-
assisted activity is covered by Federal relocation statute and 
regulations. Specifically, this type of move is covered by the 
acquisition policies and procedures and the relocation requirements of 
the Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970, as amended (URA), and the implementing 
governmentwide regulation at 49 CFR

[[Page 40843]]

part 24. The relocation requirements of the URA and the governmentwide 
regulations cover any person who moves permanently from real property 
or moves personal property from real property directly because of 
rehabilitation or demolition for an activity undertaken with HUD 
assistance. In addition, pursuant to 24 CFR 570.704(e), you are 
required to comply with additional requirements referred to in 24 CFR 
570.606, as well as 24 CFR part 43.
    (H) Conflicts of Interest. If you are a consultant or expert who is 
assisting HUD in rating and ranking applicants for funding under this 
NOFA, you are subject to 18 U.S.C. 208, the Federal criminal conflict 
of interest statute, and the Standards of Ethical Conduct for Employees 
of the Executive Branch regulation published at 5 CFR part 2635. As a 
result, if you have assisted or plan to assist applicants with 
preparing applications for this NOFA, you may not serve on a selection 
panel, and you may not serve as a technical advisor to HUD for this 
NOFA. All individuals involved in rating and ranking this NOFA, 
including experts and consultants, must avoid conflicts of interest or 
the appearance of conflicts. Individuals involved in the rating and 
ranking of applications must disclose to HUD's General Counsel or HUD's 
Ethics Law Division the following information if applicable: How the 
selection or non-selection of any applicant under this NOFA will affect 
the individual's financial interests, as provided in 18 U.S.C. 208; or 
how the application process involves a party with whom the individual 
has a covered relationship under 5 CFR 2635.502. The individual must 
disclose this information prior to participating in any matter 
regarding this NOFA. If you have questions regarding these provisions 
or if you have questions concerning a conflict of interest, you may 
call the Office of General Counsel, Ethics Law Division, at 202-708-
3815 and ask to speak to one of HUD's attorneys in this division.
    (I) Related Section 108 Loan Guarantee Application.
    (1) Each EDI application must be accompanied by a request for new 
Section 108 loan guarantee assistance. Notwithstanding the form of your 
request for new section 108 loan guarantee assistance under paragraphs 
(a), (b), (c), or (d) of this section below, you must include citations 
to the specific regulatory subsections supporting activity eligibility 
and national objectives compliance for the project described in your 
application. For purposes of this NOFA, the only acceptable activity 
eligibility citation for use of EDI funds is 24 CFR 570.703(k) and the 
only acceptable eligibility citation for the related section 108 funds 
is 24 CFR 570.703(i)(1)-570.203(b). Both the EDI and Section 108 funds 
must be used in conjunction with the same business loans/economic 
development projects. This request may take any of several forms as 
defined below.
    (a) A formal application for new Section 108 loan guarantee(s), 
including the documents listed at 24 CFR 570.704(b).
    (b) A brief description (not to exceed three pages) of the business 
loan program to be applied for in a new Section 108 loan guarantee 
application(s). Such 108 application(s) must be submitted within 60 
days of a notice of EDI selection, with HUD reserving the right to 
extend such period on a case-by-case basis where HUD determines there 
is evidence of good cause. EDI awards will be conditioned on approval 
of actual Section 108 loan commitments. This Section 108 application 
description must be sufficient to support the basic eligibility of the 
proposed business loan program for Section 108 assistance. (See Section 
III(C) of this NOFA.) In general, it should also describe the location 
of the lending area as well as the types of businesses expected to 
participate and the loan terms expected to be offered, e.g., repayment 
period, lien priority, and the purposes of the financing, such as real 
estate acquisition, construction, machinery and equipment, or working 
capital.
    (c) A copy of a pending, unapproved Section 108 loan guarantee 
application, and any proposed amendments to the Section 108 application 
which are related to the EDI application. The applicant's submission of 
such an EDI/Section 108 application shall be deemed by HUD to 
constitute a request to suspend separate processing of the Section 108 
application. The Section 108 application will not be approved until on 
or after the date of the related EDI award.
    (d) A request for a Section 108 loan guarantee assistance 
(analogous to Section IV.(I)(1)(a) or (b) of this NOFA above) that 
proposes to increase the amount of a previously approved application. 
However, any amount of Section 108 loan guarantee authority approved 
before HUD's award of an EDI grant under this NOFA cannot be used in 
conjunction with the EDI funds awarded pursuant to this NOFA.
    (2) Further, a Section 108 loan guarantee amount that is required 
to be used in conjunction with a prior EDI or Brownfields Economic 
Development Initiative (BEDI) grant award, whether or not the Section 
108 loan guarantee has been approved as of the date of this NOFA, is 
not eligible for use in conjunction with an EDI award under this NOFA. 
For example, if a public entity has a previously approved Section 108 
loan guarantee commitment of $12 million, even if none of the funds 
have been utilized, or if the public entity had previously been awarded 
an EDI grant of $1 million and had certified that it will submit a 
Section 108 loan application for $10 million in support of that EDI 
grant, the public entity's EDI application under this NOFA must propose 
to increase the amount of its total Section 108 loan guarantee 
commitments beyond those amounts (the $12 million or $10 million in 
this example) to which it has previously agreed.
    (J) General Limitations on Use of EDI and Section 108 Funds. 
Certain restrictions shall apply to the use of EDI and Section 108 
funds:
    (1) EDI grants must not be used as a resource to immediately repay 
the principal of a loan guaranteed under Section 108. Repayment of 
principal is only permissible with EDI grant funds as a matter of 
security if other sources projected for repayment of principal prove to 
be unavailable.
    (2) You may not use Section 108 funds to finance activities that 
also include financing generated through the issuance of federally tax 
exempt obligations. Pursuant to Office of Management and Budget (OMB) 
Circular A-129 (Policies for Federal Credit Programs and Non-Tax 
Receivables), Section 108 guaranteed loan funds may not directly or 
indirectly support federally tax-exempt obligations.
    HUD will not consider for funding any EDI proposal in which the 
related Section 108 loan guarantee would be used solely as security, 
and Section 108 funds are not drawn down until default on the business 
loan. EDI funds are to be used to support and enhance only business 
loans financed with Section 108 loan guarantee proceeds from HUD's 
interim lending or public offering mechanisms and thereby leverage 
greater use of the Section 108 program. Awarding EDI funds to a project 
which would use the Section 108 guarantee only as a security guarantee 
for other financing can be tantamount to making a simple grant to the 
project and thereby fails to fulfill the goals of the EDI program.
    (K) Time-frames. EDI grant awards will contain conditions requiring 
you to adhere to your stated time-frames for implementing your proposed 
projects and drawing Section 108 and EDI funds.

[[Page 40844]]

If you fail to adhere to these schedules, HUD may recapture the EDI 
funds.
    (L) Limitations on Grant Amounts. 
    (1) HUD expects to approve EDI grant amounts for approvable 
applications at a range of ratios of EDI grant funds awarded to new 
Section 108 loan guarantee commitments, but the minimum ratio will be 
$1 of EDI grant funds for every $7 of Section 108 loan guarantee 
commitments. In addition, HUD expects on the average to achieve even 
higher leverage ratios, e.g., approximately 1 to 10 under this NOFA.
    For example, an applicant requesting an EDI grant of $1 million 
will be required to apply for a minimum of $7 million in new Section 
108 loan guarantee commitments. Of course, even though the minimum 
EDI--Section 108 ratio is 1:7, applications with higher ratios will 
receive more points under Rating Factor 4, ``Leveraging Resources/
Financial Need'' and, all other things being equal, will be more 
competitive. However, applicants should bear in mind that the leverage 
ratio is a function of the risk level of the business loan portfolio 
originated with Section 108 guaranteed loan funds. For example, if the 
business loan portfolio of Community A has a higher risk profile than 
Community B's portfolio, the amount of EDI funds used to fund the 
contribution to the CEF Pilot's debt service/loss reserve for Community 
A's business loans will be higher (as a percentage of the aggregate 
loan amount) than the required contribution for Community B's loans. 
The minimum ratio of EDI grant funds to Section 108 commitments (i.e., 
1:7) indicates loss reserve contributions equal to approximately 14% of 
the loan amount. This further indicates that the business loans 
originated by the community whose application provided for the minimum 
EDI--Section 108 ratio would fall into a higher risk category than 
would be the case with a higher EDI--Section 108 ratio (e.g., 1:12).
    An applicant community is therefore encouraged to carefully 
consider the risk profile of the business loan portfolio it will 
originate with the Section 108 guaranteed loan funds. Applicants are 
also cautioned that very high leverage ratios could be determined by 
HUD to be unrealistic, since even lower risk business loans must be 
accompanied by contributions to the CEF Pilot's reserve. While the loss 
reserve contribution for each business loan would be determined on a 
case by case basis, each loan will be classified by the CEF Pilot 
underwriter as falling in one of three risk tiers. Communities may use 
the following guidelines in developing proposed leveraging ratios:
    (a) The minimum ratio of EDI grant funds to Section 108 commitments 
of 1:7 indicates average EDI contributions to the CEF Pilot's reserves 
of approximately 14% of the loan amount and a relatively higher risk 
loan portfolio;
    (b) A ratio of EDI grant funds to Section 108 commitments of 1:10 
indicates average EDI contributions to the CEF Pilot's reserves of 
approximately 10% of the loan amount and a relatively moderate risk 
loan portfolio; and
    (c) A ratio of EDI grant funds to Section 108 commitments of 1:13 
(or higher) indicates average EDI contributions to the CEF Pilot's 
reserves of approximately 8% of the loan amount and a lower risk 
portfolio.
    Communities are also cautioned that the CEF Program Manager will 
continually evaluate the business loans originated by a participating 
community to ensure that the actual risk level of that community's 
portfolio is not significantly higher than the risk level indicated in 
the approved application. The CEF Program Manager will have the 
discretion to reject business loans for acceptance into the CEF Pilot 
if the loans fall within a higher risk tier than indicated in the 
community's application and such acceptance would have a material 
effect on the risk level of the CEF Pilot's portfolio. The community 
should therefore ensure when it originates loans that the actual risk 
level of its business loan portfolio is generally consistent with the 
risk level described in its application.
    Because a fundable application is competitive in part because of 
the applicant's proposed ratio of EDI funds to Section 108 guaranteed 
loan funds, HUD will condition the EDI grant award on the grantee's 
achievement of that specific ratio. Your failure to meet that condition 
by obtaining timely HUD approval of a commitment for, and issuance of, 
the required Section 108 guaranteed obligations ratio may result in the 
cancellation and recapture of all or a proportionate share of the EDI 
grant award.
    Further, failure to give adequate consideration to the issues 
discussed above concerning the risk level of the business loan 
portfolio during the application development stage could result in the 
following problems following grant award. EDI grant recipients whose 
applications provided for the minimum EDI--Section 108 leverage ratio 
(i.e., $1 of EDI grant funds for every $7 of Section 108 loan guarantee 
funds) will be unable to use all of their EDI funds if the actual risk 
level is not as high as contemplated in the EDI applications. In such 
case, HUD may recapture the unused funds. On the other hand, EDI grant 
recipients whose applications included relatively high leverage ratios 
will have insufficient EDI grant funds to meet their minimum Section 
108 borrowing requirements if their business loans are classified by 
the CEF underwriter as falling in a higher risk tier than originally 
contemplated.
    (2) HUD will cap EDI awards at a maximum of $1 million under this 
NOFA.
    (3) In the event you are awarded an EDI grant that has been reduced 
below the original request (e.g., insufficient funds were available to 
fund the last competitive application at the full amount requested or 
there were technical deficiencies that could not be resolved), you will 
be required to modify your project plans and application to conform to 
the terms of HUD's approval before HUD will execute a grant agreement. 
HUD also may proportionately reduce or deobligate the EDI award if you 
do not submit approvable Section 108 loan guarantee applications on a 
timely basis (including any extension authorized by HUD) in the amount 
required by the EDI/108 leveraging ratio which will be approved by HUD 
as a special condition of the EDI grant award, or if insufficient 
business loans are approved during the term of your business loan 
program to use the EDI funds awarded in the required ratio. Any 
modifications or amendments to your application approved pursuant to 
this NOFA, whether requested by you or by HUD, must be within the scope 
of the approved original EDI application in all respects material to 
rating the application, unless HUD determines that the revised 
application remains within the competitive range and is otherwise 
approvable under this competition.
    (4) In the case of a requested increase in guarantee assistance for 
a project with a previously approved Section 108 loan guarantee 
commitment (as further discussed in Section IV.(I)(1)(d) of this NOFA, 
above), the EDI assistance approved will be based on the increased 
amount of Section 108 loan guarantee assistance.
    (M) Timing of Grant Awards. (1) To the extent you submit a full 
Section 108 application with your EDI grant application, HUD will 
evaluate the Section 108 application concurrently with the request for 
EDI grant funds. Note that EDI grant assistance cannot be used to 
leverage a Section 108 loan guarantee approved prior to the date of 
HUD's announcement of an EDI grant pursuant to this NOFA. However, the

[[Page 40845]]

EDI grant may be awarded before HUD approval of the Section 108 
commitment if HUD determines that such award will further the purposes 
of the Act.
    (2) HUD notice to you of the amount and conditions of EDI funds 
awarded, based upon review of the EDI application, constitutes an 
obligation of grant funds, subject to compliance with the conditions of 
award and execution of a grant agreement. EDI funds must not be 
disbursed to the public entity before the issuance of the related 
Section 108-guaranteed obligations.

V. The Application Selection Process

    (A) Rating Panels. To review and rate your applications, HUD may 
establish panels. These panels may include persons not currently 
employed by HUD. HUD may include these non-HUD employees to obtain 
certain expertise and outside points of view, including views from 
other Federal agencies.
    (B) Rating. HUD will evaluate and rate all applications for funding 
that meet applicable requirements and rating factors for award 
described in this NOFA. The rating of you, as the ``applicant,'' or of 
your organization, ``the applicant's organization and staff,'' for 
technical merit or compliance will include any sub-contractors, 
consultants, and sub-recipients which are firmly committed to the 
project.
    (C) Factors for Award Used to Evaluate and Rate Applications. (1) 
Each rating factor and the maximum number of points is provided below. 
The maximum number of points to be awarded is 102. All EDI applications 
must obtain a score of at least 70 points to be fundable. Depending 
upon the program for which you the applicant seek funding, the program 
may provide for up to four bonus points as provided in paragraphs 
(3)(a) and (3)(b) of this Section V(C).
    (2) All technically acceptable applications will be scored under 
the selection criteria below.
    All acceptable EDI grant applications will be separately ranked in 
order of points assigned with the applications receiving more points 
ranking above those receiving fewer points. Acceptable applications 
must be complete as required by the submission requirements of this 
NOFA. Applications will be funded in rank order until the total 
aggregate amount of the applications funded is equal to up to $10 
million (subject to the Department's discretion described in this 
NOFA).
    (3) Bonus Points. (a) The NOFA provides for the award of up to two 
bonus points for eligible activities/projects that the applicant 
proposes to be located in federally designated Empowerment Zones (EZs), 
Enterprise Communities (ECs), or Urban Enhanced Enterprise Communities 
(EECs) and serve the residents of these federally designated areas, and 
are certified to be consistent with the strategic plan of these 
federally designated areas. (For ease of reference in the NOFA, these 
federally designated areas are collectively referred to as ``EZs/ECs'' 
and residents of these federally designated areas as EZ/EC residents.) 
\1\ This NOFA contains a certification which must be completed for the 
applicant to be considered for EZ/EC bonus points. A list of the EZs, 
ECs and EECs (as well as more information about these designated areas) 
is available through the HUD web site at http://www.hud.gov. The list 
is also attached to this NOFA as Appendix A.
---------------------------------------------------------------------------

    \1\ On December 21, 1994, President Clinton and Vice President 
Gore designated 72 urban areas and 33 rural communities as 
Empowerment Zones or Enterprise Communities. These designated areas 
receive more than $1.0 billion in performance grants and more than 
$2.5 billion in tax incentives. On August 5, 1997, President Clinton 
signed the Taxpayers Relief Act of 1997 which established a second 
round of designations for 15 new urban areas and 25 rural areas as 
Empowerment Zones or Enterprise Communities. Round II designees were 
announced in January 1999.
---------------------------------------------------------------------------

    (b) Court-Ordered Consideration. For any application submitted by 
the City of Dallas, Texas, for funds under this NOFA for which the City 
of Dallas is eligible to apply, HUD will consider, under Rating Factor 
3 below, the extent to which the strategies or plans in the city's 
application or applications will be used to eradicate the vestiges of 
racial segregation in the Dallas Housing Authority's low income housing 
programs. The City of Dallas should address the effect, if any, that 
vestiges of racial segregation in the Dallas Housing Authority's low 
income housing programs have on potential participants in the program 
covered by this NOFA, and identify proposed actions for remedying those 
vestiges. HUD may add up to 2 points to the score based on this 
consideration. This special consideration results from an order of the 
U.S. District Court for the Northern District of Texas, Dallas, 
Division.
    (D) Narrative Statement. (1) Provide narrative statements 
describing the activities that you will carry out with the EDI grant 
funds. Your narrative statement must not exceed three (3) 8.5'' by 11'' 
pages.
    (2) Describe how your proposed uses of EDI funds will meet the 
national objectives under 24 CFR 570.208 for the CDBG program and 
qualify as eligible activities under 24 CFR 570.703. You must include 
citations to the specific regulatory subsections supporting activity 
eligibility and national objectives compliance. (See Section III(C) of 
this NOFA ).
    (3) You must respond to the rating factors below. Each of the 
listed rating factors (or, where applicable, each subfactor) below has 
a separate page limitation specified.
    (4) Print your narrative statements in 12 point type/font, and use 
sequentially numbered pages.
    (E) The Five Rating Factors. HUD will consider your application for 
selection based on the following factors that demonstrate the quality 
of your proposed project or activities, and your capacity and 
commitment to obtain maximum benefit from the EDI funds, in accordance 
with the purposes of the Act.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (25 Points)

    [Your response to this factor is limited to three (3) pages.]
    This factor addresses the extent to which you have the 
organizational resources necessary to successfully implement your 
proposed activities in a timely manner. The rating of the ``applicant'' 
or the ``applicant's organization and staff'' for will include any 
subcontractors, consultants, and subrecipients that are firmly 
committed (i.e., has a written agreement or a signed letter of 
understanding with the applicant agreeing in principle to its 
participation and role in the project). In rating this factor, HUD will 
consider the following:
    (1) With regard to the EDI/Section 108 business loan program you 
propose, you should demonstrate that you (or other program 
participants) have the capacity to implement the specific steps 
required to successfully carry out your proposed EDI/Section 108 
program. This includes factors such as your:
    (a) Previous performance in the administration of your CDBG, HOME 
or other programs;
    (b) Performance and capacity in carrying out economic development 
programs that involve third party lending;
    (c) Capacity to carry out your projects and programs in a timely 
manner (submission of a complete Section 108 application pursuant to 
Section IV.(I)(1)(a) or (c) of this NOFA will be deemed by HUD as one 
indicator of an applicant's ability to carry out the proposed project 
in a timely manner); and,

[[Page 40846]]

    (d) If you are so designated, your capacity to manage projects 
under this NOFA along with any federal funds awarded as a result of a 
federal urban Empowerment Zone/Enterprise Community designation 
(including Enhanced Enterprise Community (EEC) designation).
    (2) If you have previously received an EDI or BEDI grant award(s), 
you must describe the status of the implementation of those project(s) 
assisted with EDI or BEDI funds, any delays that have been encountered 
and the actions you are taking to overcome any such delays to carry out 
the project in a timely manner. For such previously funded EDI or BEDI 
grant projects, HUD will consider the extent to which you have used the 
awarded EDI or BEDI grant funds and the associated Section 108 
guaranteed loan funds, and the accomplishments achieved.
    (3) The capacity of subrecipients, nonprofit organizations and 
other entities that have a role in implementing your proposed business 
loan program will be included in this review.
    In addition to the application, HUD also may rely on information 
from performance reports, financial status information, monitoring 
reports, audit reports and other information available to HUD in making 
its determination under this factor.

Rating Factor 2: Distress/Extent of the Problem (15 Points)

    [Your response to this factor is limited to three (3) pages.]
    This factor addresses the extent to which there is need for funding 
your proposed business loan program based on levels of distress, and an 
indication of the urgency of meeting the need/distress in your target 
area.
    (1) In applying this factor, HUD will consider current levels of 
distress in the immediate community to be served by your business loan 
program and the jurisdiction applying for assistance. If you are able 
to indicate a level of distress in the immediate program area that is 
greater than the level of distress in your jurisdiction as a whole, HUD 
will give your application a higher score for this factor. HUD requires 
you to use sound and reliable data that is verifiable to support the 
level of distress you claim in your application. You must provide a 
source for all information you cite and indicate the publication date 
or origination date of the data.
    (2) In previous EDI competitions, the poverty rate was often 
considered the best indicator of distress. Therefore, at a minimum, 
your response must provide the poverty rate for your jurisdiction as a 
whole and for the areas to be served and/or where the EDI/Section 108 
funded business loan program is located; however, in addition, you may 
demonstrate the level of distress with other factors such as income 
levels and unemployment rates.
    (3) To the extent that your Consolidated Plan and your Analysis of 
Impediments to Fair Housing choice (AI) identifies the level of 
distress in the community and the neighborhood in which your business 
loan program is being carried out, you should include references to 
such documents in preparing your response to this factor. Also, you 
should discuss the extent to which the analysis of impediments 
identifies unhealthy environmental conditions in your program area, and 
how such conditions negatively impact your target neighborhood.

Rating Factor 3: Soundness of Approach (30 Points)

    [Your response to this factor is limited to three (3) pages.]
    This factor addresses the quality and cost-effectiveness of your 
proposed plan. There must be a relationship between the proposed 
business loans, community needs and purposes of the program funding for 
you to receive points for this factor. In rating this factor, HUD will 
consider the following:
    (1) The quality of your plan/proposal for the use of EDI funds and 
Section 108 loan funds, including the extent to which your proposed 
plan for effective use of EDI grant/Section 108-guaranteed loan funds 
will address the needs you described in Rating Factor 2 above regarding 
the distress and extent of the problem in your immediate community and/
or jurisdiction. As part of the response to this factor, you should 
fully describe how your business loan program will achieve a national 
objective. Inasmuch as most programs are expected to involve loans to 
be made to businesses not yet identified, it may not be possible to 
determine which of the specific national objectives and public benefit 
criteria would be met by the individual business loans. Consequently, 
it may be necessary to condition the EDI grant award and the Section 
108 loan guarantee commitment on a determination by the appropriate HUD 
Field Office of compliance with the national objectives and public 
benefit requirements. Such condition would be imposed with respect to 
each business loan to be made with Section 108 guaranteed loan funds. 
You should demonstrate how your proposed project would mitigate or 
otherwise address the distress identified in Rating Factor 2 above.
    (2) The extent to which your plan is feasible and likely to achieve 
its stated purpose. HUD's desire is to fund business loan programs 
which will quickly produce demonstrable results and advance the 
purposes of the EDI program, including the number of jobs to be created 
by the program and the impact of the program on job creation that will 
benefit individuals on welfare or low to very low income persons. You 
should demonstrate your knowledge of the steps required to implement 
your business loan program and the actions that you and others 
responsible for implementing your project must complete. You must 
include a time schedule for carrying out your program.
    (3) The extent to which your proposed business loan program 
addresses your Analysis of Impediments and the needs identified in 
Rating Factor 2; the extent to which such business loan program will 
result in physical and economic improvement for the residents in the 
neighborhood in which your program will be carried out; the extent to 
which you will offer residents an opportunity to relocate to 
environmentally healthy housing or neighborhoods; or the extent to 
which current residents will benefit from the funded loans to enable 
them to work and continue to live in a redeveloped or revitalized 
neighborhood and thus share in the anticipated economic benefits your 
program is expected to generate.
    (4) The extent to which your business loan program incorporates one 
or more elements that facilitate a successful transition of welfare 
recipients from welfare to work. Such an element could include, for 
example, linking your proposed business loan program to social and/or 
other services needed to enable welfare recipients to successfully 
secure and carry out full-time jobs in the private sector; provision of 
job training to welfare recipients who might be hired by businesses 
financed through the proposal; and/or incentives for businesses 
financed with EDI/section 108 funds to hire and train welfare 
recipients.
    (5) Due to an order of the U.S. District Court for the Northern 
District of Texas, Dallas Division, with respect to any application 
submitted by the City of Dallas, Texas, HUD's consideration of the 
response to this factor, ``Soundness of Approach,'' will include the 
extent to which Dallas' plan for the use of EDI funds and Section 108 
loans will be used to eradicate the vestiges of racial segregation in 
the Dallas Housing Authority's programs consistent with the Court's 
order. Up to two (2) additional points will be awarded to any 
application submitted by the City of

[[Page 40847]]

Dallas, Texas, to the extent this subfactor is addressed.

Rating Factor 4: Leveraging Resources/Financial Need (20 Points)

    [Page limits for the response to this factor are listed separately 
for each subfactor under this factor.]
    In evaluating this factor, HUD will consider the extent to which 
your response demonstrates the financial need of your business loan 
program and the leverage ratio of Section 108 loan proceeds to EDI 
grant funds. This factor has two subfactors, each with its own maximum 
point total:
    (1) Leverage of Section 108 funds (5 points).
    [Your response to this subfactor is limited to one (1) page.]
    The minimum ratio of EDI grant funds to Section 108 guaranteed loan 
funds in any business loan program may not be less than 1:7. The extent 
to which your proposed program leverages an amount of Section 108 funds 
beyond the 1:7 ratio will result in your receiving a higher number of 
points. If you use your EDI grant to leverage more new Section 108 
commitments, your application will receive more points under this 
subfactor. However, for the reasons discussed in Section IV(L)(1), the 
extent to which Section 108 funds can be leveraged is limited by 
practical considerations of risk. Therefore, an application will not 
receive more points under this factor if the leverage ratio is higher 
than $1 of EDI grant funds to $13 dollars of Section 108 loan guarantee 
commitments.
    (2) Leverage of other financial resources (15 points). Your 
response to this subfactor is limited to one (1) page plus supporting 
documentation evidencing third party commitment (written and signed) of 
funds. HUD will evaluate the extent to which you leverage other funds 
(public or private) with EDI grant funds and Section 108 guaranteed 
loan funds and the extent to which such other funds are firmly pledged 
to the business loan program. This could include the use of CDBG funds, 
other Federal or state grants or loans, your general funds, project 
equity or commercial financing provided by private sources or funds 
from non-profits or other sources. Funds will be considered pledged to 
the project if there is evidence of the third party's written 
commitment to make the funds available for an EDI/108 project, subject 
to approval of the EDI and Section 108 assistance and satisfactory 
completion of any environmental review required under 24 CFR part 58 
for the project. For purposes of this subfactor, funds committed to the 
business loan program for purposes other than the funding of business 
loans and cash reserves may be counted. For example, other funds 
committed for training programs for persons employed or to be employed 
by businesses receiving loans under the program may be counted for this 
subfactor. Note, that with respect to commitment of CDBG funds, your 
proposed use of CDBG funds must be included in your Consolidated Plan 
(or, an application approved by the State), subject to approval of the 
EDI and Section 108 assistance.

Rating Factor 5: Comprehensiveness and Coordination (10 Points)

    [Your response to this factor is limited to two (2) pages.]
    This factor addresses the extent to which you have coordinated your 
activities with other known organizations; you participate or promote 
participation in your or a State's Consolidated Planning and Analysis 
of Fair Housing Impediments processes; and you are working towards 
addressing a need in a comprehensive manner through linkages with other 
activities in the community.
    In evaluating this factor, HUD will consider the extent to which 
you demonstrate you have:
    (1) Coordinated your proposed business loan program with those of 
other groups or organizations before submission, in order to best 
complement, support and coordinate all known activities; and developed 
specific steps to share information on solutions and outcomes with 
others. Describe any written agreements or memoranda of understanding 
in place, or that will be in place after award.
    (2) Developed linkages, or specific steps to develop linkages with 
other activities, programs or projects (through meetings, information 
networks, planning processes or other mechanisms to coordinate 
activities), so that solutions are holistic and comprehensive. Describe 
any linkages with other HUD-funded projects/activities outside the 
scope of those covered by the Consolidated Plan, as well as established 
linkages and outreach with residents of your business loan program 
area. Particular emphasis should be placed on outreach efforts that 
ensure that, to the greatest extent feasible, training, employment and 
other economic opportunities have or will be directed to low and very 
low income residents within the area of the community where the 
business loan will be invested in order to meet the national objective 
of increasing access to jobs for residents of low-income communities.
    (F) Adjustments to Funding.
    (1) HUD reserves the right to fund less than the full amount 
requested in your application to ensure the fair distribution of the 
funds and to ensure that the purposes of the EDI program are met.
    (2) HUD will not fund any portion of your application that is not 
eligible for funding under specific program statutory or regulatory 
requirements; which does not meet the requirements of this NOFA or 
which may be duplicative of other funded programs or activities from 
previous years' awards or other selected applicants. Only the eligible 
portions of your application (including non-duplicative portions) may 
be funded.
    (3) If funds remain after funding the highest ranking applications, 
HUD may fund part of the next highest ranking application. If you, the 
applicant, turn down the award offer, HUD will make the same 
determination for the next highest ranking application. If funds remain 
after all selections have been made, remaining funds may be available 
for other competitions.
    (4) In the event HUD commits an error that, when corrected, would 
result in selection of an otherwise eligible applicant during the 
funding round of this NOFA, HUD may select that applicant when 
sufficient funds become available.
    (5) After selection, but prior to award, if HUD determines that 
your application could be funded at a lesser EDI grant amount than 
requested consistent with feasibility of the funded business loan 
program and the purposes of the Act, HUD reserves the right to reduce 
the amount of the EDI award and/or increase the required Section 108 
loan guarantee commitment, if necessary.

VI. Application Submission Requirements

    If you are submitting an application for funding under this NOFA 
you must submit the items listed in this Section VI to have a complete 
application.
    (A) Transmittal Letter signed by the authorized representative of 
your organization indicating that you are submitting your application 
for funding under the Economic Development Initiative Program and you 
are requesting funding consideration for an EDI project.
    (B) Request for Loan Guarantee Assistance. A request for loan 
guarantee assistance under Section 108, as further described in Section 
IV(I) of this NOFA. Full application guidelines for the Section 108 
program are found at 24 CFR 570.704.

[[Page 40848]]

    (C) Narrative Response to Factors for Award:
    (1) Rating Factor 1: Capacity and Relevant Organizational 
Experience. Provide a narrative indicating your capacity and the 
relevant capacity of your organization and staff to perform the work 
for which you are requesting funding.
    (2) Rating Factor 2: Need Statement Identifying the level of 
Distress/Extent of the Problem. Provide a narrative statement including 
any documentation supporting your statement of need.
    (3) Rating Factor 3: Soundness of Approach. Include your 
activities, budget and time frame for conducting activities in your 
response.
    (4) Rating Factor 4: Leveraging Resources/Financial Need. Provide a 
narrative response to this factor.
    (5) Rating Factor 5: Comprehensiveness and Coordination. Provide a 
narrative response to this factor.
    (D) Additional Application Forms and Certifications. You must also 
submit the following forms and certifications:
    (1) Application for Federal Assistance (Standard Form (SF) 424);
    (2) Standard Form for Assurances--Non-Construction Programs (SF 
424B);
    (3) Drug-Free Workplace Certification, HUD-50070;
    (4) Certification of Payments to Influence Federal Transactions, 
HUD 50071, and if engaged in Lobbying, the Disclosure Form Regarding 
Lobbying, SF-LLL;
    (5) Applicant/Recipient Disclosure/Update Report, HUD-2880;
    (6) Certification Regarding Debarment and Suspension, HUD-2992; and
    (7) If applicable, the Certification of Consistency With EZ/EC 
Strategic Plan, HUD-2990.
    These forms are found in the Appendix B to this NOFA. You are not 
required to submit Budget Information on Standard Form 424A.
    If you wish to receive an acknowledgment of HUD's receipt of your 
application, please submit a completed Acknowledgment of Receipt of 
Application form.

VII. Corrections to Deficient Applications

    After the application due date, HUD may not, consistent with its 
regulations in 24 CFR part 4, subpart B, consider any unsolicited 
information you, the applicant, may want to provide. HUD may contact 
you, however, to clarify an item in your application or to correct 
technical deficiencies. You should note, however, that HUD may not seek 
clarification of items or responses that improve the substantive 
quality of your response to any selection factors. In order not to 
unreasonably exclude applications from being rated and ranked, HUD may, 
however, 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 your 
failure to submit the proper certifications or your failure to submit 
an application that contains an original signature by an authorized 
official. In each case, HUD will notify you in writing by describing 
the clarification or technical deficiency. HUD will notify applicants 
by facsimile or by mail or other delivery service with return receipt 
requested. You must submit clarifications or corrections of technical 
deficiencies in accordance with the information provided by HUD within 
7 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 your deficiency is not 
corrected within this time period, HUD will reject your application as 
incomplete, and it will not be considered for funding.

VIII. Environmental Requirements

    (A) Environmental Review. After the completion of this competition 
and after HUD's award of EDI grant funds, pursuant to 24 CFR 570.604, 
each project or activity (as such terms are defined in 24 CFR part 58) 
assisted under this program is subject to the provisions of 24 CFR part 
58, including limitations on the EDI grant and Section 108 public 
entity's commitment of HUD and non-HUD funds prior to the completion of 
environmental review, notification and release of funds. No such 
assistance will be released by HUD until a request for release of funds 
is submitted and the requirements of 24 CFR part 58 have been met. All 
public entities, including nonentitlement public entities, shall submit 
the request for release of funds and related certification, required 
pursuant to 24 CFR part 58, to the appropriate HUD field office for 
each project or activity (as such terms are defined in 24 CFR part 58) 
to be assisted.
    (B) Environmental Justice. Executive Order 12898 (Federal Actions 
to Address Environmental Justice in Minority Populations and Low-Income 
Populations) directs Federal agencies to develop strategies to address 
environmental justice. Environmental justice seeks to rectify the 
disproportionately high burden of environmental pollution that is often 
borne by low-income, minority, and other disadvantaged communities, and 
to ensure community involvement in policies and programs addressing 
this issue.

IX. Findings and Certifications

    (A) Environmental Impact. A Finding of No Significant Impact with 
respect to the environment has been made in accordance with HUD 
regulations at 24 CFR part 50 that implement section 102(2)(C) of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332). The Finding 
of No Significant Impact is available for public inspection during 
regular business hours in the Office of the General Counsel, 
Regulations Division, Room 10276, U.S. Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410-0500.
    (B) Executive Order 13132, Federalism. Executive Order 13132 
(entitled ``Federalism'') prohibits, to the extent practicable and 
permitted by law, an agency from promulgating policies that have 
federalism implications and either impose substantial direct compliance 
costs on State and local governments and are not required by statute, 
or preempt State law, unless the relevant requirements of section 6 of 
the Executive Order are met. This NOFA does not have federalism 
implications and does not impose substantial direct compliance costs on 
State and local governments or preempt State law within the meaning of 
the Executive Order.
    (C) Prohibition Against Lobbying Activities. You, the applicant, 
are subject to the provisions of section 319 of the Department of 
Interior and Related Agencies Appropriation Act for Fiscal Year 1991, 
31 U.S.C. 1352 (the Byrd Amendment), which prohibits recipients of 
Federal contracts, grants, or loans from using appropriated funds for 
lobbying the executive or legislative branches of the Federal 
Government in connection with a specific contract, grant, or loan. You 
are required to certify, using the certification found at Appendix A to 
24 CFR part 87, that you will not, and have not, used appropriated 
funds for any prohibited lobbying activities. In addition, you must 
disclose, using Standard Form LLL, ``Disclosure of Lobbying 
Activities,'' any funds, other than Federally appropriated funds, that 
will be or have been used to influence Federal employees, members of 
Congress, and congressional staff regarding specific grants or 
contracts.
    (D) Section 102 of the HUD Reform Act; Documentation and Public 
Access

[[Page 40849]]

Requirements. Section 102 of the Department of Housing and Urban 
Development Reform Act of 1989 (42 U.S.C. 3545) (HUD Reform Act) and 
the regulations codified in 24 CFR part 4, subpart A, contain a number 
of provisions that are designed to ensure greater accountability and 
integrity in the provision of certain types of assistance administered 
by HUD. On January 14, 1992 (57 FR 1942), HUD published a notice that 
also provides information on the implementation of section 102. The 
documentation, public access, and disclosure requirements of section 
102 apply to assistance awarded under this NOFA as follows:
    (1) Documentation and public access requirements. HUD will ensure 
that documentation and other information regarding each application 
submitted pursuant to this NOFA are sufficient to indicate the basis 
upon which assistance was provided or denied. This material, including 
any letters of support, will be made available for public inspection 
for a 5-year period beginning not less than 30 days after the award of 
the assistance. Material will be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations in 24 CFR part 15.
    (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 (update information also 
reported on Form 2880) will be made available along with the applicant 
disclosure reports, but in no case for a period less than 3 years. All 
reports--both applicant disclosures and updates--will be made available 
in accordance with the Freedom of Information Act (5 U.S.C. 552) and 
HUD's implementing regulations at 24 CFR part 5.
    (3) Publication of Recipients of HUD Funding. HUD's regulations at 
24 CFR 4.7 provide that HUD will publish a notice in the Federal 
Register on at least a quarterly basis to notify the public of all 
decisions made by the Department to provide:
    (i) Assistance subject to section 102(a) of the HUD Reform Act; or
    (ii) Assistance that is provided through grants or cooperative 
agreements on a discretionary (non-formula, non-demand) basis, but that 
is not provided on the basis of a competition.
    (E) Section 103 HUD Reform Act. HUD's regulations implementing 
section 103 of the Department of Housing and Urban Development Reform 
Act of 1989 (42 U.S.C. 3537a), codified in 24 CFR part 4, subpart B, 
apply to this funding competition. The regulations continue to apply 
until the announcement of the selection of successful applicants. HUD 
employees involved in the review of applications and in the making of 
funding decisions are limited by the regulations from providing advance 
information to any person (other than an authorized employee of HUD) 
concerning funding decisions, or from otherwise giving any applicant an 
unfair competitive advantage. Persons who apply for assistance in this 
competition should confine their inquiries to the subject areas 
permitted under 24 CFR part 4.
    Applicants or employees who have ethics related questions should 
contact the HUD Ethics Law Division at (202) 708-3815. (This is not a 
toll-free number.) For HUD employees who have specific program 
questions, the employee should contact the appropriate field office 
counsel, or Headquarters counsel for the program to which the question 
pertains.
    (F) Paperwork Reduction Act Statement. The information collection 
requirements for applying for funding under the Economic Development 
Initiative have been approved by OMB under the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501-3520) and assigned OMB control number 2506-
0153.
    (G) Catalog of Federal Domestic Assistance. The CFDA number for 
this program is 14.246.

X. Authority

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

    Dated: June 26, 2000.
Cardell Cooper,
Assistant Secretary for Community Planning and Development.

Appendix A.--List of EZs, ECs, and Urban Enhanced Enterprise Communities
------------------------------------------------------------------------
           Name & City                      Phone & fax numbers
------------------------------------------------------------------------
                      URBAN EMPOWERMENT ZONES (23)
------------------------------------------------------------------------
CA, Los Angeles (EZ)
    David Eder, EZ Program         213-485-0783 (Phone)
     Coordinator, City of Los      213-847-0890 (Fax)
     Angeles EZ/EC Programs, Los
     Angeles Community
     Development Department, 215
     West 6th Street, Third
     Floor, Los Angeles, CA 90014.
CA, Santa Ana (EZ)
    Aldo Schindler, EZ Manager,    714-647-6507 (Phone)
     Community Development Agency  714-647-6580 (Fax)
     M21, PO Box 1988, Santa Ana,
     CA 92702.
CT, New Haven (EZ-EC)
    Sherri Killins, President/     203-776-2777 (Phone)
     CEO, Empower New Haven,       203-776-0537 (Fax)
     Inc., 59 Elm St., 4th Floor,
     Suite 410, New Haven, CT
     06510.
FL, Miami/Dade County (EZ-EC)
    Bryan K. Finnie, President/    305-372-7620 (Phone)
     CEO, Miami-Dade Empowerment   305-372-7629 (Fax)
     Trust, Inc., 140 West
     Flagler Street, Suite 1107,
     Miami, FL 33130.
GA, Atlanta (EZ)
    Charisse Richardson, Interim   404-853-7610 (Phone)
     Executive Director, Atlanta   404-853-7315 (Fax)
     EZ Corporation, City Hall
     East, 675 Ponce de Leon
     Avenue, Second Floor,
     Atlanta, GA 30308.
IL, Chicago (EZ)
    Wallace Goode, Executive       312-744-9623 (Phone)
     Director, City of Chicago 20  312-744-9696 (Fax)
     North Clark Street, 28th
     Floor, Chicago, IL 60602.
IN, Gary, E. Chicago, Hammond
 (EZ)
IN, Gary
    Taghi Arshami, Office of       219-881-5075 (Phone)
     Planning & Community          219-881-5085 (Fax)
     Development, 475 Broadway,
     Suite 318, Gary, IN 46402.
IN, E. Chicago
    John Artis, Executive          219-397-9974 (Phone)
     Director, City of East        219-397-4249 (Fax)
     Chicago, Dept. of
     Redevelopment and Housing
     Authority, 4920 Larkspur
     Drive, East Chicago, IN
     46312.

[[Page 40850]]

 
IN, Hammond
MA, Boston (EZ-EEC)
    Reginald Nunnally, Executive   617-445-3413 (Phone)
     Director of Enhanced EC/      617-445-5675 (Fax)
     Interim Director of EZ,
     Boston Empowerment Center,
     20 Hampdon St., Roxbury, MA
     02119.
MD, Baltimore (EZ)
    Diane Bell, President & CEO,   410-783-4400 (Phone)
     Empower Baltimore Management  410-783-0526 (Fax)
     Corporation, 34 Market Pl.,
     Suite 800, Baltimore, MD
     21202.
MI, Detroit (EZ)
    Denise Gray, Executive         313-872-8050 ext. 17 (Phone)
     Director, Empowerment Zone    313-872-8002 (Fax)
     Development Corporation, 1
     Ford Place, Suite 1F,
     Detroit, MI 48202.
MN, Minneapolis (EZ-EC)
    Kim W. Havey, Director,        612-673-5415 (Phone)
     Minneapolis Empowerment       612-673-3724 (Fax)
     Zone, 350 South Fifth
     Street, Room 200,
     Minneapolis, MN 55415.
MO, St. Louis/E. St. Louis, IL
 (EZ-EC)
    A. Danine Lard, Executive      314-622-3400 ext. 709 (Phone)
     Director, The Greater St.     314-436-7983 (Fax)
     Louis Regional Empowerment
     Zone, Management
     Corporation, Inc., Suite
     1030, 1015 Locust St., St.
     Louis, MO 63101.
NJ, Camden (EZ) See also
 Philadelphia, PA
    Liz Janota, Acting Managing    856-365-0300 (Phone)
     Director, Camden Empowerment  856-365-1058 (Fax)
     Zone Corporation, Hudson
     Square Complex, 817
     Carpenter St., Camden, NJ
     08102.
NJ, Cumberland County (EZ)
    Jerry Velazquez, Executive     856-459-1700 (Phone)
     Director, Cumberland          856-459-4099 (Fax)
     Empowerment Zone Corporation
     50 E. Broad Street,
     Bridgeton, NJ 08302.
NY, New York (EZ) (Main Contact)
    Marion Phillips, III, Chief    212-803-3239 (Phone)
     Administrative Officer, New   212-803-3294 (Fax)
     York Empowerment Zone
     Corporation, 633 3rd Avenue,
     New York, NY 10017.
    James Ilako, Director,         212-803-3237 (Phone)
     Empowerment Zone, Empire      212-803-3294 (Fax)
     State Development
     Corporation, 633 Third
     Avenue, 32nd Floor, New
     York, New York 10017.
    June Van Brackle, Director,    212-788-6777 (Phone)
     Mayor's Office of the New     212-788-2718 (Fax)
     York City EZ, 100 Gold
     Street, 2nd Floor, New York,
     New York 10038.
NY, New York (Bronx)
    Maria Canales, Director,       718-590-6201 (Phone)
     Bronx Empowerment Zone,       718-590-3499 (Fax)
     Bronx Overall Economic
     Development Corporation, 198
     East 161st Street, Suite
     201, Bronx, NY 10451.
NY, New York (Upper Manhattan)
    Fernando Fernandez, Director   212-410-0030 ext. 244 (Phone)
     of Community Affairs, Upper   212-410-9616 (Fax)
     Manhattan Empowerment Zone,
     Development Corporation 290
     Lenox Avenue, 3rd Floor, New
     York, NY 10027.
OH, Cincinnati (EZ)
    Susan Paddock, Special         513-352-4648 (Phone)
     Assistant to the City         513-352-2458 (Fax)
     Manager, City of Cincinnati,
     801 Plum Street, Room 104,
     Cincinnati, OH 45202.
OH, Cleveland (EZ)
    Valarie McCall, Director,      216-664-2804 (Phone)
     Cleveland Empowerment Zone,   216-420-8522 (Fax)
     601 Lakeside Avenue, City     216-664-3083 (Direct)
     Hall, Room 335, Cleveland,
     OH 44114.
OH, Columbus (EZ-EC)
    Jon Beard, Columbus Compact    614-251-0926 (Phone)
     Corporation, 1000 East Main   614-251-2243 (Fax)
     St., Columbus, OH 43205.
PA, Philadelphia/NJ, Camden (EZ)
 See also NJ, Camden
    Eva Gladstein, Executive       215-683-0462 (Phone)
     Director, City of             215-683-0493 (Fax)
     Philadelphia, 1515 Arch
     Street, l Parkway, 9th Fl.,
     Philadelphia, PA 19103.
SC, Sumter/Columbia (EZ)
    Milton Smalls, Executive       803-733-8314 (Phone)
     Director, Sumter/Columbia     803-733-8312 (Fax)
     EZ, Dept. of Community
     Service, 1225 Laurel Street,
     Columbia, SC 29201.
    Talmadge Tobias,.............
    City Manager, City of Sumter,  803-436-2577 (Phone)
     P.O. Box 1449, Sumter, SC     803-436-2615 (Fax)
     29151.
TN, Knoxville (EZ)
    Jeanette Kelleher, Community   865-215-2116 (Phone)
     Development Administrator,    865-215-2962 (Fax)
     City of Knoxville,
     Department of Development,
     P.O. Box 1631, Knoxville, TN
     37901.
    Sherry Kelley Marshall,        865-215-4146 (Phone)
     Executive Director,           865-215-2962 (Fax)
     Partnership for Neighborhood
     Improvement, P.O. Box 2464,
     Knoxville, TN 37901.
TX, El Paso (EZ-EC)
    Carlos Yerena, Executive       915-534-0571 (Phone)
     Director, El Paso             915-534-0513 (Fax)
     Empowerment Zone, Greater El
     Paso Chamber of Commerce 10
     Civic Center Plaza, El Paso,
     TX 79901.
VA, Norfolk/Portsmouth (EZ-EC)
    Landis Faulcon, Empowerment    757-624-8650 (Phone)
     2010, 201 Granby Street,      757-622-4623 (Fax)
     Suite 100A, Norfolk, VA
     23510.
WV, Huntington/Ironton, OH (EZ-
 EC)
    Cathy Burns, Executive         304-696-5533 (Phone)
     Director, Huntington WV-      304-696-4465 (Fax)
     Ironton OH Empowerment Zone,
     Inc., P.O. Box 1659,
     Huntington, WV 25717.
------------------------------------------------------------------------

[[Page 40851]]

 
                URBAN ENHANCED ENTERPRISE COMMUNITIES (4)
------------------------------------------------------------------------
CA, Oakland (EEC)
    Mahlon Harmon, EEC             510-238-2353 (Phone)
     Coordinator, One Stop         510-238-7999 (Fax)
     Capital Shop, 519 17th St.,
     Sixth Floor, Oakland, CA
     94612.
KS, Kansas City and MO, Kansas
 City (EEC)
    Marlene Nagel, MARC, 600       816-474-4240 (Phone)
     Broadway 300 Rivergate        816-421-7758 (Fax)
     Center, Kansas City, MO
     64105.
MA, BOSTON (EEC) (SEE EZ)
TX, Houston (EEC)
    Judith Butler, Mayor's         713-247-2666 (Phone)
     Office, 901 Bagby Street,     713-247-3985 (Fax)
     City Hall, 4th Floor,
     Houston, TX 77002.
------------------------------------------------------------------------
                      URBAN ENTERPRISE COMMUNITIES
------------------------------------------------------------------------
AL, Birmingham
    Keith Strother, City of        205-254-2870 (Phone)
     Birmingham, 710 N. 20th       205-254-7741 (Fax)
     Street, City Hall, 3rd
     Floor, Birmingham, AL 35203.
AR, Pulaski County
    Henry McHenry, Pulaski County  501-340-5675 (Phone)
     Enterprise Community          501-340-5680 (Fax)
     Alliance, Inc., 400 W.
     Markham, Suite 705, Little
     Rock, AR 72201-2424.
AZ, Phoenix
    Jennifer Harper, Neighborhood  602-262-4730 (Phone)
     Services Department, City of  602-534-1555 (Fax)
     Phoenix 200 West Washington
     Street, 4th Floor, Phoenix,
     AZ 85003-1611.
CA, Los Angeles--Huntington Park
    Robert Perez, Manager,         213-485-8161 (Phone)
     Operations Section,           213-847-0890 (Fax)
     Industrial & Commercial,
     Development Division, Los
     Angeles Community
     Development Department, 215
     W. 6th St., Third Floor, Los
     Angeles, CA 90014.
CA, San Diego
    Bonnie Contreras, Enterprise   619-236-6846 (Phone)
     Community Coordinator, City   619-236-6512 (Fax)
     of San Diego, 202 C Street,
     Third Floor, Mail Station
     3A, San Diego, CA 92101.
CA, San Francisco
    Anna Yee, City of San          415-252-3130 (Phone)
     Francisco, San Francisco      415-252-3110 (Fax)
     Enterprise Community
     Program, 25 Van Ness Avenue,
     Suite 700, San Francisco, CA
     94102.
CO, Denver
    Ernest Hughes, Denver          720-913-1547 (Phone)
     Enterprise Community          720-913-1800 (Fax)
     Coordinator, Denver
     Community Development
     Agency, 216 16th Street,
     Suite 1400, Denver, CO 80202.
CT, Bridgeport
    Janice Willis, Director, City  203-332-5662 (Phone)
     of Bridgeport Central Grants  203-332-5657 (Fax)
     Office, 999 Broad St.,
     Bridgeport, CT 06604.
CT, New Haven
    Diana E. Edmonds, New Haven    203-946-7727 (Phone)
     Enterprise Community Interim  203-946-8049 (Fax)
     Coordinator, 200 Orange
     Street.
DE, Wilmington
    Edwina Bell-Mitchell,          302-571-4472 (Phone)
     Wilmington Enterprise         302-571-4326 (Fax)
     Community, Louis L. Redding
     City/County Building, 800
     French Street, 9th Floor,
     Wilmington, DE 19801.
District of Columbia
    Kimmarie Jamison, DCECP        202-442-7203 (Phone)
     Coordinator, 801 N. Capitol   202-442-7089 (Fax)
     St., 6th Floor, Washington,
     DC 20002.
FL, Tampa
    Jeanette LaRussa Fenton,       813-274-7959 (Phone)
     Manager, Urban Development,   813-274-7927 (Fax)
     Ybor Service Center 2105 N.
     Nebraska Avenue, Tampa, FL
     33602-2529,.
    email: [email protected]...
GA, Albany
    Julie Duke, city Manager's     912-431-3234 (Phone)
     Office, P.O. Box 447,         912-431-3223 (Fax)
     Albany, GA 31702.
IA, Des Moines
    Carol Gathright, City of Des   515-283-4151 (Phone)
     Moines, 602 East First        515-237-1713 (Fax)
     Street, Des Moines, IA 50309.
IL, East St. Louis
    Diane Bonner, Executive        618-482-6635 ext. 15 (Phone)
     Director, CDBG Operations     618-271-8194 (Fax)
     Corporation, 301 River Park
     Drive, East St. Louis, IL
     62201.
IL, Springfield
    Cletia Bowen, Director,        217-789-2377 (Phone)
     Office of Economic            217-789-2380 (Fax)
     Development, 231 South Sixth
     St., Springfield, IL 62701.
IN, Indianapolis
    Renia Colbert, Project         317-327-5869 (Phone)
     Liaison, Div. of Comm.        317-327-5908 (Fax)
     Development & Financial
     Services, 200 East
     Washington, Suite 1841,
     Indianapolis, IN 46204.
KY, Louisville
    Carolyn Gatz, Louisville       502-458-6813 (Phone)
     Empowerment Zone, NIA         502-456-9780 (Fax)
     Center, 2900 West Broadway,
     Louisville, KY 40211.
LA, New Orleans

[[Page 40852]]

 
    Thelma H. French, Executive    504-565-6445 (Phone)
     Assistant to Mayor, Office    504-565-6423 (Fax)
     of Federal and State
     Programs, 1300 Perdido
     Street, Room 2E04, New
     Orleans, LA 70112.
LA, Ouachita Parish
    Eric Loewe, Executive          318-329-4031 (Phone)
     Director, Ouachita            318-329-4034 (Fax)
     Enterprise Community, P.O.
     Box 4268, Monroe, LA 71211.
MA, Lowell
    Shirley Alejandro, Enterprise  978-446-7160 (Phone)
     Community Organizer,          978-970-4262 (Fax)
     Department of Planning and
     Development, City Hall--JFK
     Civic Center, 50 Arcand
     Drive, Lowell, MA 01852.
MA, Springfield
    Miguel Rivas, Director of      413-750-2240 (Phone)
     Neighborhood Programs,        413-787-6027 (Fax)
     Community Development
     Department, 36 Court Street,
     Springfield, MA 01103.
MI, Flint
    Nancy Jurkiewicz, Corporate    810-766-7436 ext. 3014 (Phone)
     Resident Agent, Flint Area    810-766-7351 (Fax)
     Enterprise Community, 805
     Welch Blvd., Flint, Michigan
     48504.
MI, Muskegon/Muskegon Heights
 (EC)
    Cathy Brubaker-Clarke,         231-724-6702 (Phone)
     Director, Department of       231-724-6790 (Fax)
     Community and Economic
     Development, P.O. Box 536,
     933 Terrace St., Muskegon,
     MI 49443-0536.
MN, St. Paul
    Jeremy Lenz, Project Manager,  651-266-6603 (Phone)
     City of Saint Paul,           651-228-3341 (Fax)
     Department of Planning and
     Economic Development, 1200
     City Hall Annex, 25 West
     Fourth Street, Saint Paul,
     MN 55102.
MS, Jackson
    Roosevelt T. Sanders,          601-949-7879 (Phone)
     Executive Director, Jackson   601-981-2407 (Fax)
     Urban Enterprise Community
     Council, Inc., P.O. Box
     10353, Jackson, MS 39289.
NC, Charlotte
    Deborah Hazzard, Neighborhood  704-336-2106 (Phone)
     Development Department, 600   704-336-2527 (Fax)
     East Trade Street,
     Charlotte, NC 28202.
NE, Omaha
    Herb Patten, Enterprise Zone   402-444-3514 (Phone)
     Coordinator, Omaha            402-444-3755 (Fax)
     Enterprise Community/
     Enterprise Zone, Blue
     LionCentre, 2421 North 24th
     St., Omaha, NE 68110-2282.
NH, Manchester
    William J. Jabjiniak,          603-624-6450 ext. 5713 (Phone)
     Planning Department,          603-624-6529 (Fax)
     Enterprise Community
     Program, One City Hall
     Plaza, Manchester, NH 03101.
NJ, Newark
    Angela Corbo, EC Coordinator,  973-733-4331 (Phone)
     Department of                 973-733-3769 (Fax)
     Administration, City Hall,
     Room B-16, 920 Broad Street,
     Newark, NJ 07102.
NM, Albuquerque
    Sylvia Fettes, Department of   505-768-2932 (Phone)
     Family & Community Services,  505-768-3204 (Fax)
     P.O. Box 1293, Albuquerque,
     NM 87103.
NV, Las Vegas
    Jennifer Padre, EC             702-455-5025 (Phone)
     Coordinator, Community        702-455-5038 (Fax)
     Resources Management, 500
     South Grand Central Parkway,
     P.O. Box 551212, Las Vegas,
     NV 89155-1212.
NY, Albany/Troy/Schenectady
    Anthony Tozzi, Enterprise      518-382-5054 (Phone)
     Community Director, City of   518-382-5275 (Fax)
     Schenectady, Department of
     Development, Jay Street,
     Schenectady, NY 12305.
NY, Buffalo
    Paula Alcala Rosner,           716-851-5032 (Phone)
     Executive Director, Federal   716-851-4388 (Fax)
     Enterprise Community of
     Buffalo, Inc., 911 City
     Hall, Buffalo, NY 14202.
NY, Newburgh/Kingston
    Sharon Hyder, The Kingston-    914-569-1680 ext. 102 (Phone)
     Newburgh Enterprise Corp.,    914-569-1630 (Fax)
     62 Grand Street, Newburgh,
     NY 12550.
NY, Rochester
    Philip J. Banks, Manager of    716-428-6965 (Phone)
     Business Development,         716-428-6042 (Fax)
     Department of Economic
     Development, City of
     Rochester, Room 005A, 30
     Church Street, Rochester, NY
     14614.
OH, Akron
    Jerry Egan, Department of      330-375-2090 (Phone)
     Planning & Urban              330-375-2387 (Fax)
     Development, 166 South High
     Street, Akron, OH 44308-1628.
OK, Oklahoma City
    Carl Friend, Oklahoma City     405-297-2574 (Phone)
     Planning Department, 420      405-297-3796 (Fax)
     West Main Street, Suite 920,
     Oklahoma City, OK 73102.
OR, Portland
    Regena S. Warren, Multnomah    503-248-3691 ext. 28134 (Phone)
     County, 421 SW Sixth Avenue,  503-248-3379 (Fax)
     Suite 200, Portland, OR
     97204.
PA, Harrisburg
    Terri Martini, Director,       717-255-6408 (Phone)
     Department of Building and    717-255-6421 (Fax)
     Housing Development, City of
     Harrisburg, Suite 206, 10
     North Second Street,
     Harrisburg, PA 17101.
PA, Pittsburgh
    Joan Blaustein, Manager,       412-255-2206 (Phone)
     Special Projects, City        412-255-2838 (Fax)
     Planning Dept., City of
     Pittsburgh, 200 Ross Street,
     4th Floor, Pittsburgh, PA
     15219.

[[Page 40853]]

 
RI, Providence
    Kim Rose, Enterprise           401-455-8880 (Phone)
     Community Project Director,   401-331-6840 (Fax)
     The Providence Plan, 56 Pine
     Street, Suite 3B,
     Providence, RI 02903.
SC, Charleston/N. Charleston
    Geona Shaw Johnson,            843-973-7285 (Phone)
     Coordinator, Enterprise       843-720-3836 (Fax)
     Community Program,
     Department of Housing and
     Community Development, City
     of Charleston 75 Calhoun
     Street, 3rd Floor,
     Charleston, SC 29401.
TN, Memphis
    Joseph C. Gibbs, Economic      901-526-9300 ext.105 (Phone)
     Development Coordinator,      901-525-2357 (Fax)
     City of Memphis, Business
     Development Center (BDC),
     555 Beale Street, Memphis,
     TN 38103-3297.
TN, Nashville
    Paul Johnson, Metropolitan     615-252-8543 (Phone)
     Development and Housing       615-252-8559 (Fax)
     Agency, 701 South Sixth
     Street, Nashville, TN 37206.
TX, Dallas
    Mark Obeso, Assistant          214-670-3601 (Phone)
     Director, Housing             214-670-0156 (Fax)
     Department, City of Dallas,
     1500 Marilla, 6D North,
     Dallas, TX 75201.
TX, San Antonio
    Curley Spears, San Antonio EZ/ 210-207-6605 (Phone)
     EC Coordinator, 419 South     210-886-0006 (Fax)
     Main St., Suite 200, San
     Antonio, TX 78204.
TX, Waco
    George Johnson, Jr.,           254-750-5640 (Phone)
     Assistant City Manager, City  254-750-5696 (Direct),
     of Waco, 300 Austin Avenue,   254-750-5880 (Fax)
     Waco, TX 76701-2570.
UT, Ogden
    Karen Thurber, Ogden City      801-629-8943 (Phone)
     Neighborhood Development,     801-629-8902 (Fax)
     2484 Washington Boulevard,
     Suite 211, Ogden, UT 84401.
VT, Burlington
    Maria Vaivao, EC Coordinator,  802-865-7182 (Phone)
     Office of Community &         802-865-7024 (Fax)
     Economic Development, City
     Hall, Room 32, Burlington,
     VT 05401.
WA, Seattle
    Ben Wolters, Senior Community  206-684-8591 (Phone)
     Development Specialist, City  206-684-0379 (Fax)
     of Seattle, Office of
     Economic Development,
     Seattle Municipal Building,
     Room 205, Seattle, WA 98104-
     1826.
WA, Tacoma
    Cynthia Spry, Tacoma Pierce    253-627-2175 (Phone)
     Co Chamber of Commerce, 950   253-597-7305 (Fax)
     Pacific Avenue, Suite 300,
     P.O. Box 1933, Tacoma, WA
     98401-1933.
WI, Milwaukee
    Glen Mattison, Enterprise      414-286-3760 (Phone)
     Community Program Officer,    414-286-5003 (Fax)
     City of Milwaukee, Community
     Block Grant Administration,
     200 East Wells Street, City
     Hall, Room 606, Milwaukee,
     WI 53202.
------------------------------------------------------------------------

BILLING CODE 4210-29-P

[[Page 40854]]

Appendix B

    The forms, which follow, are required for EDI Grant--CEF Pilot 
application.
[GRAPHIC] [TIFF OMITTED] TN30JN00.005


[[Page 40855]]


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[[Page 40856]]


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[[Page 40857]]


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[[Page 40858]]


[GRAPHIC] [TIFF OMITTED] TN30JN00.009


[[Page 40859]]


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[[Page 40860]]


[GRAPHIC] [TIFF OMITTED] TN30JN00.011


[[Page 40861]]


[GRAPHIC] [TIFF OMITTED] TN30JN00.012


[[Page 40862]]


[GRAPHIC] [TIFF OMITTED] TN30JN00.013


[[Page 40863]]


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[[Page 40864]]


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[[Page 40865]]


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[FR Doc. 00-16544 Filed 6-27-00; 11:16 am]
BILLING CODE 4210-29-C