[Federal Register Volume 65, Number 142 (Monday, July 24, 2000)]
[Notices]
[Pages 45688-45695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18658]



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Part IV





Department of Housing and Urban Development





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Notice of Funding Availability; Family Unification Program, Fiscal Year 
2000; Notice

  Federal Register / Vol. 65, No. 142 / Monday, July 24, 2000 / 
Notices  

[[Page 45688]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4595-N-01]


Notice of Funding Availability Family Unification Program, Fiscal 
Year 2000

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

ACTION: Notice of Funding Availability (NOFA).

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SUMMARY: Purpose of the Program. The purpose of the Family Unification 
Program is to promote family unification by providing housing 
assistance to families for whom the lack of adequate housing is a 
primary factor in the separation, or the threat of imminent separation, 
of children from their families.
    Available Funds. The approximately $10 million in one-year budget 
authority available under this NOFA will support approximately 1,800 
Section 8 Housing Choice vouchers. The possibility exists of additional 
funding being made available for this program; perhaps as much as an 
additional $50 million. Applicants should bear this in mind when 
considering the number of vouchers to apply for under Section II(C)(1) 
of this NOFA.
    Eligible Applicants. Public Housing Agencies (PHAs). Indian Housing 
Authorities, Indian tribes and their tribally designated housing 
entities are not eligible. The Native American Housing Assistance and 
Self-Determination Act of 1996 does not allow HUD to enter into new 
Section 8 annual contributions contracts (ACC) with IHAs after 
September 30, 1997.
    Application Deadline. August 23, 2000.
    Match. None.

Additional Information

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

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

    Application Due Date. Your completed application (an original and 
two copies is due on or before August 23, 2000, at the address shown 
below.
    Address for Submitting Applications. Submit your original 
application and one copy to Michael E. Diggs, Director of the Grants 
Management Center, Department of Housing and Urban Development, 501 
School Street, SW., Suite 800, Washington, D.C. 20024.
    Submit the second copy of your application to the local HUD Field 
Office Hub, Attention: Director, Office of Public Housing, or to the 
local HUD Field Office Program Center, Attention: Program Center 
Coordinator.
    The Grants Management Center is the official place of receipt for 
all applications in response to this NOFA. For ease of reference, the 
term ``local HUD Field Office'' will be used throughout this NOFA to 
mean the local HUD Field Office Hub and local HUD Field Office Program 
Center.
    Delivered Applications. If you are hand delivering your 
application, your application is due on or before 5 p.m., Eastern time, 
on the application due date to the Office of Public and Indian 
Housing's Grants Management Center (GMC) in Washington, D.C. A copy is 
also to be submitted by the applicant to the local HUD Field Office.
    This application deadline is firm as to date and hour. In the 
interest of fairness to all competing PHAs, HUD will not consider any 
application that is received after the application deadline. Applicants 
should take this practice into account and make early submission of 
their materials to avoid any risk of loss of eligibility brought about 
by unanticipated delays or other delivery-related problems. HUD will 
not accept, at any time during the NOFA competition, application 
materials sent via facsimile (FAX) transmission.
    Mailed Applications. Applications sent by U.S. mail will be 
considered timely filed if postmarked before midnight on the 
application due date and received within ten (10) days of that date.
    Applications Sent By Overnight Delivery. Applications sent by 
overnight delivery will be considered timely filed if received before 
or on the application due date, or upon submission of documentary 
evidence that they were placed in transit with the overnight delivery 
service by no later than the specified application due date.
    For Application Kit. An application kit is not available and is not 
necessary for submitting an application for funding under this NOFA. 
This NOFA contains all of the information necessary for the submission 
of an application for voucher funding in connection with this NOFA.
    For Further Information and Technical Assistance. Prior to the 
application due date, you may contact George C. Hendrickson, Housing 
Program Specialist, Room 4216, Office of Public and Assisted Housing 
Delivery, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410; telephone (202) 708-1872, ext. 4064. 
Subsequent to application submission, you may determine the status of 
your application by contacting the Grants Management Center at (202) 
358-0273. (These are not toll-free numbers.) Persons with hearing or 
speech impairments may access these numbers via TTY (text telephone) by 
calling the Federal Information Relay Service at 1-800-877-8339 (this 
is a toll free number).

II. Authority, Purpose, Amount Allocated, Voucher Funding, and 
Eligibility

(A) Authority

    The Family Unification Program is authorized by section 8(x) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(x)). The Department 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 2000 (Pub. L. 106-74, approved October 20, 
1999), referred to in this NOFA as the FY 2000 HUD Appropriations Act) 
provides funding for the Family Unification Program.

(B) Purpose

    The Family Unification Program is a program under which Section 8 
Housing Choice vouchers are provided to families for whom the lack of 
adequate housing is a primary factor which would result in:
    (1) The imminent placement of the family's child, or children, in 
out-of-home care; or
    (2) The delay in the discharge of the child, or children, to the 
family from out-of-home care.
    Vouchers awarded under the Family Unification Program are 
administered by PHAs under HUD's regulations for the Section 8 Housing 
Choice Voucher Program (24 CFR part 982).

(C) Amount Allocated

    (1) Available Funds/Maximum Voucher Request and Lottery. This NOFA 
announces the availability of approximately $10 million for the Family 
Unification Program which will provide assistance for about 1,800

[[Page 45689]]

families. (The possibility exists of additional funding being made 
available for this program; perhaps as much as an additional $50 
million. Applicants should bear this in mind when considering the 
number of vouchers to apply for under Section II(C)(1) of this NOFA.) 
PHAs with a current Section 8 voucher and certificate program of more 
than 500 units under an Annual Contributions Contract may apply for 
funding for a maximum of 100 units. PHAs with a current Section 8 
voucher or certificate program of 500 units or less under an Annual 
Contributions Contract may apply for a maximum of 50 units. PHAs not 
currently administering either a Section 8 voucher or certificate 
program may apply for a maximum of 50 units.
    A national lottery will be conducted to select approvable 
applications for funding if approvable applications are submitted by 
PHAs in FY 2000 for more than the approximately $10 million available 
under this NOFA.
    The Family Unification Program is exempt from the fair share 
allocation requirements of section 213(d) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 1439(d)) and the implementing 
regulations at 24 CFR part 791, subpart D.
    (2) Underfunding Corrections. If prior to the award of FY 2000 FUP 
funding, HUD determines that any awardees under the FY 1999 Family 
Unification Program NOFA have been underfunded, HUD will increase 
funding to the amount the awardee should have received. Funding of any 
such FY 1999 awardees will be dependent upon the availability of FY 
2000 funds for the Family Unification Program.
    (3) Unfunded Approvable Applications. PHAs with approvable 
applications that are not funded, in whole or in part, due to 
insufficient funds available under this FUP NOFA, shall be funded first 
in FY 2001 provided HUD receives additional appropriations for FUP for 
FY 2001.

(D) Voucher Funding

    (1) Determination of Funding Amount for the PHA's Requested Number 
of Vouchers. HUD will determine the amount of funding that a PHA will 
be awarded under this NOFA based upon an actual annual per unit cost 
using the following three step process:
    (a) HUD will extract the total expenditures for all the PHA's 
Section 8 tenant-based assistance programs and the unit months leased 
information from the most recent approved year end statement (form HUD-
52681) that the PHA has filed with HUD. HUD will divide the total 
expenditures for all of the PHA's Section 8 tenant-based assistance 
programs by the unit months leased to derive an average monthly per 
unit cost.
    (b) HUD will multiply the monthly per unit cost by 12 (months) to 
obtain an annual per unit cost.
    (c) HUD will multiply the annual per unit cost derived under 
paragraph (b) above by the Section 8 Housing Assistance Payments 
Program Contract Rent Annual Adjustment Factor (with the highest cost 
utility included) to generate an adjusted annual per unit cost. For a 
PHA whose jurisdiction spans multiple annual adjustment factor areas, 
HUD will use the highest applicable annual adjustment factor.

(E) Eligible Applicants

    Any PHA established pursuant to State law, including regional 
(multicounty) or State PHAs, may apply for funding under this NOFA. 
Indian Housing Authorities, Indian tribes and their tribally designated 
housing entities are not eligible to apply because the Native American 
Housing Assistance and Self-Determination Act of 1996 does not allow 
HUD to enter into new Section 8 annual contributions contracts (ACC) 
with IHAs after September 30, 1997.
    Some PHAs currently administering the Section 8 voucher and 
certificate programs have, at the time of publication of this NOFA, 
major program management findings from Inspector General audits, HUD 
management reviews, or Independent Public Accountant (IPA) audits that 
are open and unresolved or other significant program compliance 
problems. HUD will not accept applications for additional funding from 
these PHAs as contract administrators if, on the application deadline 
date, the findings are either not closed, or sufficient progress toward 
closing the findings has not been made to HUD's satisfaction. The PHA 
must also, to HUD's satisfaction, be making satisfactory progress in 
addressing any program compliance problems. If any of these PHAs want 
to apply for the Family Unification Program, the PHA must submit an 
application that designates another housing agency, nonprofit agency, 
or contractor that is acceptable to HUD. The PHA application must 
include an agreement by the other housing agency or contractor to 
administer the program for the new funding increment on behalf of the 
PHA and a statement that outlines the steps the PHA is taking to 
resolve the program findings and program compliance problems. 
Immediately after the publication of this NOFA, the Office of Public 
Housing in the local HUD Office will notify, in writing, those PHAs 
that are not eligible to apply because of outstanding management or 
compliance problems. Concurrently, the local HUD Field Office will 
provide a copy of each such written notification to the GMC. The PHA 
may appeal the decision if HUD has mistakenly classified the PHA as 
having outstanding management or compliance problems. Any appeal must 
be accompanied by conclusive evidence of HUD's error (i.e, 
documentation showing that the finding has been cleared) and must be 
received prior to the application deadline. The appeal should be 
submitted to the local HUD Field Office where a final determination 
shall be made. Concurrently, the local HUD Field Office shall provide 
the GMC with a copy of its written response to the appeal, along with a 
copy of the PHA's written appeal. Major program management findings are 
those that would cast doubt on the capacity of the PHA to effectively 
administer any new Section 8 voucher funding in accordance with 
applicable regulatory and statutory requirements.

III. General Requirements and Requirements Specific To The Family 
Unification Program

(A) General Requirements

    (1) Compliance with Fair Housing and Civil Rights Laws. All 
applicants must comply with all fair housing and civil rights laws, 
statutes, regulations, and executive orders as enumerated in 24 CFR 
5.105(a). If an applicant: (a) has been charged with a systemic 
violation of the Fair Housing Act by the Secretary alleging ongoing 
discrimination; (b) is the defendant in a Fair Housing Act lawsuit 
filed by the Department of Justice alleging an ongoing pattern or 
practice of discrimination; or (c) has received a letter of 
noncompliance findings under Title VI of the Civil Rights Act, section 
504 of the Rehabilitation Act of 1973, or section 109 of the Housing 
and Community Development Act, the applicant's application will not be 
evaluated under this NOFA if, prior to the application deadline, the 
charge, lawsuit, or letter of findings has not been resolved to the 
satisfaction of the Department. HUD's decision regarding whether a 
charge, lawsuit, or a letter of findings has been satisfactorily 
resolved will be based upon whether appropriate actions have been taken 
necessary to address allegations of ongoing discrimination in the 
policies or practices involved in the charge, lawsuit, or letter of 
findings.
    (2) Additional Nondiscrimination Requirements. In addition to

[[Page 45690]]

compliance with the civil rights requirements listed at 24 CFR 
5.105(a), each successful applicant must comply with the 
nondiscrimination in employment requirements of Title VII of the Civil 
Rights Act of 1964 (42 U.S.C. 2000e et seq.), the Equal Pay Act (29 
U.S.C. 206(d)), the Age Discrimination in Employment Act of 1967 (29 
U.S.C. 621 et seq.), Title IX of the Education Amendments Act of 1972, 
and Titles I and V of the Americans with Disabilities Act of 1990 (42 
U.S.C. 12101 et seq.).
    (3) Affirmatively Furthering Fair Housing. Applicants have a duty 
to affirmatively further fair housing. Applicants will be required to 
identify the specific steps that they will take to:
    (a) Address the elimination of impediments to fair housing that 
were identified in the jurisdiction's Analysis of Impediments (AI) to 
Fair Housing Choice;
    (b) Remedy discrimination in housing; or
    (c) Promote fair housing rights and fair housing choice.
    (4) Certifications and Assurances. Each applicant is required to 
submit signed copies of Assurances and Certifications. The standard 
Assurances and Certifications are on Form HUD-52515, Funding 
Application, which includes the Equal Opportunity Certification, 
Certification Regarding Lobbying, and Certification Regarding Drug-Free 
Workplace Requirements.

(B) Requirements Specific to the Family Unification Program

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

--A supervised publicly or privately operated shelter designed to 
provide temporary living accommodations (including welfare hotels, 
congregate shelters, and transitional housing);
--An institution that provides a temporary residence for persons 
intended to be institutionalized; or
--A public or private place not designed for, or ordinarily used as, a 
regular sleeping accommodation for human beings.

    (f) Displaced by Domestic Violence. A family is displaced by 
domestic violence if:
    (i) The applicant has vacated a housing unit because of domestic 
violence; or
    (ii) The applicant lives in a housing unit with a person who 
engages in domestic violence.
    (iii) ``Domestic violence'' means actual or threatened physical 
violence directed against one or more members of the applicant family 
by a spouse or other member of the applicant's household.
    (g) Involuntarily Displaced. For a family to qualify as 
involuntarily displaced because of domestic violence:
    (i) The PHA must determine that the domestic violence occurred 
recently or is of a continuing nature; and
    (ii) The applicant must certify that the person who engaged in such 
violence will not reside with the family unless the HA has given 
advance written approval. If the family is admitted, the PHA may 
terminate assistance to the family for breach of this certification.
    (h) Living in Overcrowded Housing. A family is considered to be 
living in an overcrowded unit if:
    (i) The family is separated from its child (or children) and the 
parent(s) are living in an otherwise standard housing unit, but, after 
the family is re-united, the parents' housing unit would be overcrowded 
for the entire family and would be considered substandard; or
    (ii) The family is living with its child (or children) in a unit 
that is overcrowded for the entire family and this overcrowded 
condition may result in the imminent placement of its child (or 
children) in out-of-home care.
    For purpose of this paragraph (h), the PHA may determine whether 
the unit is ``overcrowded'' in accordance with PHA subsidy standards.
    (i) Detained Family Member. A Family Unification eligible family 
may not include any person imprisoned or otherwise detained pursuant to 
an Act of the Congress or a State law.
    (j) Public child welfare agency (PCWA). PCWA means the public 
agency that is responsible under applicable State law for determining 
that a child is at imminent risk of placement in out-of-home care or 
that a child in out-of-home care under the supervision of the public 
agency may be returned to his or her family.
    (2) PHA Responsibilities. PHAs must:
    (a) Accept families certified by the PCWA as eligible for the 
Family Unification Program. The PHA, upon receipt of the PCWA list of 
families currently in the PCWA caseload, must compare the names with 
those of families already on the PHA's Section 8 waiting list. Any 
family on the PHA's Section 8 waiting list that matches with the PCWA's 
list must be assisted in order of their position on the waiting list in 
accordance with PHA admission policies. Any family certified by the 
PCWA as eligible and not on the Section 8 waiting list must be placed 
on the waiting list. If the PHA has a closed Section 8 waiting list, it 
must reopen the waiting list to accept a Family Unification Program 
applicant family who is not currently on the PHA's Section 8 waiting 
list;

[[Page 45691]]

    (b) Determine if any families with children on its waiting list are 
living in temporary shelters or on the street and may qualify for the 
Family Unification Program, and refer such applicants to the PCWA;
    (c) Determine if families referred by the PCWA are eligible for 
Section 8 assistance and place eligible families on the Section 8 
waiting list;
    (d) Amend the administrative plan in accordance with applicable 
program regulations and requirements;
    (e) Administer the vouchers in accordance with applicable program 
regulations and requirements;
    (f) Assure the quality of the evaluation that HUD intends to 
conduct on the Family Unification Program and cooperate with and 
provide requested data to the HUD office or HUD-approved contractor 
responsible for program evaluation; and
    (g) Comply with the actions to be taken by the PHA as specified in 
the memorandum of understanding (MOU) executed by the PHA and the PCWA. 
(See paragraph IV (B)(3) regarding the MOU.
    (3) Public Child Welfare Agency (PCWA) Responsibilities. A public 
child welfare agency that has agreed to participate in the Family 
Unification Program must:
    (a) Establish and implement a system to identify Family Unification 
eligible families within the agency's caseload and to review referrals 
from the PHA;
    (b) Provide written certification to the PHA that a family 
qualifies as a Family Unification eligible family based upon the 
criteria established in section 8(x) of the United States Housing Act 
of 1937, and this notice;
    (c) Commit sufficient staff resources to ensure that Family 
Unification eligible families are identified and determined eligible in 
a timely manner and to provide follow-up supportive services after the 
families lease units;
    (d) Cooperate with the evaluation that HUD intends to conduct on 
the Family Unification Program, and submit a certification with the 
PHA's application for Family Unification funding that the PCWA will 
agree to cooperate with and provide requested data to the HUD office or 
HUD-approved contractor having responsibility for program evaluation; 
and
    (e) Comply with the actions to be taken by the PCWA as specified in 
the memorandum of understanding (MOU) executed between the PCWA and the 
PHA. (See paragraph IV (B)(3) regarding the MOU.)
    (4) Section 8 Voucher Assistance. The Family Unification Program 
provides funding for rental assistance under the Section 8 Housing 
Choice Voucher Program.
    PHAs must administer this program in accordance with HUD's 
regulations governing the Section 8 Housing Choice Voucher Program. If 
a Section 8 voucher for a family under this program is terminated, the 
voucher must be reissued to another Family Unification eligible family 
for 5 years from the initial date of execution of the Annual 
Contributions Contract subject to the availability of renewal funding.

IV. Application Selection Process For Funding

(A) Rating and Ranking

    HUD's Grants Management Center is responsible for rating the 
applications under the selection criteria in this NOFA, and is 
responsible for the selection of FY 2000 applications that will receive 
consideration for assistance under the Family Unification Program. The 
Grants Management Center will initially screen all applications and 
determine any technical deficiencies based on the application 
submission requirements.
    Each application submitted in response to the NOFA, in order to be 
eligible for funding, must receive at least 10 points for Threshold 
Criterion 2, Efforts of PHA to Provide Area-Wide Housing Opportunities 
for Families. Each application must also meet the requirements for 
Threshold Criterion 1, Unmet Housing Needs; Threshold Criterion 3, 
Coordination between HA and Public Child Welfare Agency to Identify and 
Assist Eligible Families; and Threshold Criterion 4, Public Child 
Welfare Agency Statement of Need for Family Unification Program.

(B) Threshold Criteria

(1) Threshold Criterion 1: Unmet Housing Needs
    This criterion requires the PHA to demonstrate the need for an 
equal or greater number of Section 8 vouchers than it is requesting 
under this NOFA. The PHA must assess and document the unmet housing 
need for its geographic jurisdiction of families for whom the lack of 
adequate housing is a primary factor in the imminent placement of the 
family's child or children in out-of-home care, or in a delay of 
discharge of a child or children to the family from out-of-home care. 
The results of the assessment must include a comparison of the 
estimated unmet housing needs of such families to the Consolidated Plan 
covering the PHA's jurisdiction.
(2) Threshold Criterion 2: Efforts of PHA to Provide Area-Wide Housing 
Opportunities for Families (50 Points)
    (a) Description: Many PHAs have undertaken voluntary efforts to 
provide area-wide housing opportunities for families. The efforts 
described in response to this selection criterion must be beyond those 
required by federal law or regulation such as the portability 
provisions of the Section 8 Housing Choice Voucher Program. PHAs in 
metropolitan and non-metropolitan areas are eligible for points under 
this criterion. The Grants Management Center will assign points to PHAs 
that have established cooperative agreements with other PHAs or created 
a consortium of PHAs in order to facilitate the transfer of families 
and their rental assistance between PHA jurisdictions. In addition, the 
Grants Management Center will assign points to PHAs that have 
established relationships with nonprofit groups to provide families 
with additional counseling, or have directly provided counseling, to 
increase the likelihood of a successful move by the families to areas 
that do not have large concentrations of poverty.
    (b) Rating and Assessment: The Grants Management Center will assign 
10 points for any of the following assessments for which the PHA 
qualifies and add the points for all the assessments (maximum of 40 
points) to determine the total points for this Selection Criterion:
    (i) 10 Points--Assign 10 points if the PHA documents that it 
participates in an area-wide exchange program where all PHAs absorb 
portable Section 8 families.
    (ii) 10 Points--Assign 10 points if the PHA documents that PHA 
staff will provide housing counseling for families that want to move to 
low-poverty or non-minority areas, or if the PHA has established a 
contractual relationship with a nonprofit agency or a local 
governmental entity to provide housing counseling for families that 
want to move to low-poverty or non-minority areas. The five PHAs 
approved for the FY 1993 Moving to Opportunity (MTO) for Fair Housing 
Demonstration and any other PHAs that receive counseling funds from HUD 
(e.g., in settlement of litigation involving desegregation or 
demolition of public housing, regional opportunity counseling, or mixed 
population projects) may qualify for points under this assessment, but 
these PHAs must identify all activities undertaken, other than those 
funded by HUD, to expand housing opportunities.
    (iii) 10 Points--Assign 10 points if the PHA documents that it 
participates with

[[Page 45692]]

other PHAs in using a metropolitan wide or combined waiting list for 
selecting participants in the program.
    (iv) 10 Points--Assign 10 points if the PHA documents that it has 
implemented other initiatives that have resulted in expanding housing 
opportunities in areas that do not have undue concentrations of poverty 
or minority families.
(3) Threshold Criterion 3: Coordination Between PHA and Public Child 
Welfare Agency to Identify and Assist Eligible Families
    The application must include a memorandum of understanding (MOU), 
executed by the chief executive officer of the PHA and the PCWA, 
identifying the actions that the PHA and the PCWA will take to identify 
and assist Family Unification Program eligible families and the 
resources that each organization will commit to the FUP. The MOU must 
clearly address, at a minimum, the following:
    (a) PHA responsibilities as outlined in paragraph III.(B)(2) of 
this NOFA.
    (b) PCWA responsibilities as outlined in paragraph III.(B)(3) of 
this NOFA.
    (c) The assistance the PCWA will provide to families in locating 
housing units.
    (d) The PCWA's past experience in administering a similar program.
    (e) Past PCWA and PHA cooperation in administering a similar 
program. The MOU shall be considered by HUD and the signatories (the 
PCWA and the PHA) as a binding agreement. As such, the document should 
be very specific. For instance, the PCWA should clearly indicate in 
connection with paragraph (b) immediately above the length of time that 
its follow-up services will be available to FUP-eligible families after 
they have rented a unit using the voucher issued by the PHA; the amount 
of time and staff resources the PCWA will commit on a continuing basis 
to identify FUP-eligible families and provide follow-up support 
services, etc.
(4) Threshold Criterion 4: Public Child Welfare Agency Statement of 
Need for Family Unification Program
    The application must include a statement by the PCWA describing the 
need for a program providing assistance to families for whom lack of 
adequate housing is a primary factor in the placement of the family's 
children in out-of-home care or in the delay of discharge of the 
children to the family from out-of-home care in the area to be served, 
as evidenced by the caseload of the public child welfare agency. The 
PCWA must adequately demonstrate that there is a need in the PHA's 
jurisdiction for the Family Unification program that is not being met 
through existing programs. The narrative must include specific 
information relevant to the area to be served, about homelessness, 
family violence resulting in involuntary displacement, number and 
characteristics of families who are experiencing the placement of 
children in out-of-home care or the delayed discharge of children from 
out-of-home care as the result of inadequate housing, and the PCWA's 
past experience in obtaining housing through HUD assisted programs and 
other sources for families lacking adequate housing.
    (C) Funding FY 2000 Applications. After the Grants Management 
Center has screened PHA applications and disapproved any applications 
unacceptable for further processing (see Section VI(B) of this NOFA, 
below), the Grants Management Center will review and rate all 
approvable applications, utilizing the Threshold Criteria and the point 
assignments listed in this NOFA.
    The Grants Management Center will select eligible PHAs to be funded 
based on a lottery in the event approvable applications submitted in FY 
2000 are received for more funding than the approximately $10 million 
available under this NOFA. All FY 2000 PHA applications identified by 
the Grants Management Center as meeting the Threshold Criteria 
identified in this NOFA will be eligible for the lottery selection 
process. If the cost of funding these applications exceeds available 
funds, HUD will limit the number of FY 2000 applications selected for 
any State to no more than 10 percent of the budget authority made 
available under this NOFA in order to achieve geographic diversity. If 
establishing this geographic limit results in unspent budget authority, 
however, HUD may modify this limit to assure that all available funds 
are used.
    Applications will be funded in full for the number of vouchers 
requested by the PHA in accordance with the NOFA. If the remaining 
voucher funds are insufficient to fund the last PHA application in 
full, however, the Grants Management Center may recommend funding that 
application to the extent of the funding available and the applicant's 
willingness to accept a reduced number of vouchers. Applicants that do 
not wish to have the size of their programs reduced may indicate in 
their applications that they do not wish to be considered for a reduced 
award of funds. The Grants Management Center will skip over these 
applicants if assigning the remaining funding would result in a reduced 
funding level.

V. Application Submission Requirements

    (A) Form HUD-52515. Funding Application, form HUD-52515, must be 
completed and submitted for the Section 8 Housing Choice Voucher 
Program. This form includes all the necessary certifications for Fair 
Housing, Drug-Free Workplace and Lobbying Activities. Section C of the 
form should be left blank. PHAs may obtain a copy of form HUD-52515 
from the local HUD Field Office or may download it from the HUD Home 
page on the internet's world wide web (http://www.hud.gov). On the HUD 
website click on ``forms,'' then click on ``HUD-5'' and then click on 
``HUD-52515.'' The form must be completed in its entirety, with the 
exception of Section C, signed and dated.
    (B) Letter of Intent and Narrative. All the items in this section 
must be included with the application submitted to the local HUD Field 
Office. Funding is limited, and HUD may only have enough funds to 
approve a smaller amount than the number of vouchers requested. The PHA 
must state in its cover letter to the application whether it will 
accept a smaller number of vouchers and the minimum number of vouchers 
it will accept. The cover letter must also include a statement by the 
PHA certifying that the PHA has consulted with the agency or agencies 
in the State responsible for the administration of welfare reform to 
provide for the successful implementation of the State's welfare reform 
for families receiving rental assistance under the family unification 
program. The application must include an explanation of how the 
application meets, or will meet, Threshold Criteria 1 through 4 in 
Section IV(B) of this NOFA.
    The application must also include an MOU as described in paragraph 
IV.(B)(3) of this NOFA.
    The PCWA serving the jurisdiction of the PHA is responsible for 
providing the information for Threshold Criterion 4, PCWA Statement of 
Need for Family Unification Program, to the PHA for submission with the 
PHA application. This should include a discussion of the case-load of 
the PCWA and information about homelessness, family violence resulting 
in involuntary displacement, number and characteristics of families who 
are experiencing the placement of children in out-of-home care as a 
result of inadequate housing, and the PCWA's experience in obtaining 
housing through HUD assisted housing programs and other sources for 
families lacking adequate housing. A State-wide Public

[[Page 45693]]

Child Welfare Agency must provide information on Threshold Criterion 4, 
PCWA Statement of Need for Family Unification Program, to all PHAs that 
request such information; otherwise, HUD will not consider applications 
from any PHAs with the State-wide PCWA as a participant in its program.
    (C) Evaluation Certifications. The PHA and the PCWA, in separate 
certifications, must state that the PHA and Public Child Welfare Agency 
agree to cooperate with HUD and provide requested data to the HUD 
office or HUD-approved contractor delegated the responsibility for the 
program evaluation. No specific language for this certification is 
prescribed by HUD.
    (D) Statement Regarding the Steps the PHA Will Take to 
Affirmatively Further Fair Housing. The areas to be addressed in the 
PHA's statement should include, but not necessarily be limited to: (a) 
Elimination of impediments to fair housing that were identified in the 
jurisdiction's Analysis of Impediments (AI) to Fair Housing Choice; (b) 
remedy discrimination in housing; or (c) promote fair housing rights 
and fair housing choice.
    (E) Program Summary. Provide a separate, one paragraph statement 
describing how the vouchers being applied for will address the local 
housing needs of eligible families in renting decent, safe, and 
affordable housing. Describe, where applicable, how the vouchers will 
be used to expand existing housing choices, and whether the PHA intends 
to use the vouchers to establish or expand upon its partnerships with 
local government, nonprofit agencies, or private industry groups. Also 
address any related notable local program activities, best practices, 
or accomplishments.

VI. Corrections To Deficient Family Unification Applications

(A) Acceptable Applications

    An acceptable application is one which meets all of the application 
submission requirements in Section V of this NOFA and does not fall 
into any of the categories listed in Section VI (B) of this NOFA. The 
Grants Management Center will initially screen all applications and 
notify PHAs of technical deficiencies by letter.
    With respect to correction of deficient applications, HUD may not, 
after the application due date and consistent with HUD's regulations in 
24 CFR part 4, subpart B, consider any unsolicited information an 
applicant may want to provide. HUD may contact an applicant to clarify 
an item in the application or to correct technical deficiencies. Please 
note, however, that HUD may not seek clarification of items or 
responses that improve the substantive quality of a response to any 
selection factors. In order not to unreasonably exclude applications 
from being rated and ranked, HUD may contact applicants to ensure 
proper completion of the application and will do so on a uniform basis 
for all applicants. Examples of curable (correctable) technical 
deficiencies include failure to submit the proper certifications or 
failure to submit an application that contains an original signature by 
an authorized official. In each case under this NOFA, the Grants 
Management Center will notify the applicant in writing by describing 
the clarification or technical deficiency. The applicant must submit 
clarifications or corrections of technical deficiencies in accordance 
with the information provided by the Grants Management Center within 14 
calendar days of the date of receipt of the HUD notification. (If the 
due date falls on a Saturday, Sunday, or Federal holiday, your 
correction must be received by HUD on the next day that is not a 
Saturday, Sunday, or Federal holiday.) If the deficiency is not 
corrected within this time period, HUD will reject the application as 
incomplete, and it will not be considered for funding.

(B) Unacceptable Applications

    (1) After the 14-calendar day technical deficiency correction 
period, the Grants Management Center will disapprove PHA applications 
that it determines are not acceptable for processing. The Grants 
Management Center's notification of rejection letter must state the 
basis for the decision.
    (2) Applications from PHAs that fall into any of the following 
categories will not be processed:
    (a) Applications from PHAs that do not meet the requirements of 
Section III(A)(1) of this NOFA, Compliance With Fair Housing and Civil 
Rights Laws.
    (b) The PHA has major Inspector General audit findings, HUD 
management review findings, or independent public accountant (IPA) 
findings for its voucher or certificate programs that are not closed or 
on which satisfactory progress in resolving the findings is not being 
made; program compliance problems for its voucher or certificate 
programs on which satisfactory progress is not being made. The only 
exception to this category is if the PHA has been identified under the 
policy established in Section II(E) of this NOFA and the PHA makes 
application with another agency or contractor that will administer the 
family unification assistance on behalf of the PHA. Major program 
management findings are those that would cast doubt on the capacity of 
the PHA to effectively administer any new Section 8 voucher funding in 
accordance with applicable HUD regulatory and statutory requirements.
    (c) The PHA has failed to achieve a lease-up rate of 90 percent for 
its combined certificate and voucher units under contract for its 
fiscal year ending in 1998. Category (c) may be passed, however, if the 
PHA achieved a combined certificate and voucher budget authority 
utilization rate of 90 percent or greater for its fiscal year ending in 
1998. In the event the PHA is unable to meet either of these percentage 
requirements, it may still pass category (c) if it submits information 
to the Grants Management Center, as part of its application, 
demonstrating that it was able to either increase its combined 
certificate and voucher lease-up rate to 90 percent or greater for its 
fiscal year ending in 1999, or was able to increase combined 
certificate and voucher budget authority utilization to 90 percent or 
more for its fiscal year ending in 1999. PHAs that have been determined 
by HUD to have passed either the 90 percent lease-up, or 90 percent 
budget authority utilization requirement for their fiscal year ending 
in 1998 will be listed on the HUD Home Page site on the Internet's 
world wide web (http://www.hud.gov). A PHA not listed must either 
submit information in its application supportive of its 90 percent 
lease-up or 90 percent budget authority utilization performance for its 
fiscal year ending in 1999, or submit information as part of its 
application supportive of its contention that it should have been 
included among those PHAs HUD listed on the HUD Home Page as having 
achieved either a 90 percent lease-up rate or 90 percent funding 
utilization rate for fiscal years ending in 1998. Attachment 1 of this 
NOFA indicates the methodology and data sources used by HUD to 
calculate the lease-up and budget authority utilization percentage 
rates for PHAs with fiscal years ending in 1998. Any PHA wishing to 
submit information to the GMC in connection with its 1998 fiscal year 
or 1999 fiscal year for the purposes described immediately above (so as 
to be eligible under category (c) to submit an application) will be 
required to use the same methodology and data sources indicated in 
Attachment 1.
    (d) The PHA is involved in litigation and HUD determines that the 
litigation may seriously impede the ability of the PHA to administer 
the rental vouchers.
    (e) A PHA's application that does not comply with the requirements 
of 24 CFR

[[Page 45694]]

982.102 and this NOFA after the expiration of the 14-calendar day 
technical deficiency correction period will be rejected from 
processing.
    (f) The PHA's application was submitted after the application due 
date.
    (g) The application was not submitted to the official place of 
receipt as indicated in the paragraph entitled ``Official Place of 
Application Receipt'' at the beginning of this NOFA.
    (h) The applicant has been debarred or otherwise disqualified from 
providing assistance under the program.

VII. Findings and Certifications

(A) Paperwork Reduction Act Statement

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

(B) Environmental Impact

    In accordance with 24 CFR 50.19(b) (11) of the HUD regulations, 
tenant-based rental activities under this program are categorically 
excluded from the requirements of the National Environmental Policy Act 
of 1969 (NEPA) and are not subject to environmental review under the 
related laws and authorities. This NOFA provides funding for these 
activities under 24 CFR Part 982, which does not contain environmental 
review provisions because of the categorical exclusion of these 
activities from environmental review. Accordingly, under 24 CFR 
50.19(c)(5), issuance of this NOFA is also categorically excluded from 
environmental review under NEPA.

(C) Catalog of Federal Domestic Assistance Numbers

    The Federal Domestic Assistance number for this program is 14.857.

(D) Federalism Impact

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

(E) Accountability in the Provision of HUD Assistance

    Section 102 of the Department of Housing and Urban Development 
Reform Act of 1989 (HUD Reform Act) and the regulations in 24 CFR part 
4, subpart A contain a number of provisions that are designed to ensure 
greater accountability and integrity in the provision of certain types 
of assistance administered by HUD. On January 14, 1992 (57 FR 1942), 
HUD published a notice that also provides information on the 
implementation of section 102. HUD will comply with the documentation, 
public access, and disclosure requirements of section 102 with regard 
to the assistance awarded under this NOFA, as follows:
(1) Documentation and Public Access Requirements
    HUD will ensure that documentation and other information regarding 
each application submitted pursuant to this NOFA are sufficient to 
indicate the basis upon which assistance was provided or denied. This 
material, including any letters of support, will be made available for 
public inspection for a 5-year period beginning not less than 30 days 
after the award of the assistance. Material will be made available in 
accordance with the Freedom of Information Act (5 U.S.C. 552) and HUD's 
implementing regulations at 24 CFR part 15. In addition, HUD will 
include the recipients of assistance pursuant to this NOFA in its 
Federal Register notice of all recipients of HUD assistance awarded on 
a competitive basis.
(2) Disclosures
    HUD will make available to the public for 5 years all applicant 
disclosure reports (HUD Form 2880) submitted in connection with this 
NOFA. Update reports (also Form 2880) will be made available along with 
the applicant disclosure reports, but in no case for a period less than 
3 years. All reports--both applicant disclosures and updates--will be 
made available in accordance with the Freedom of Information Act (5 
U.S.C. 552) and HUD's implementing regulations at 24 CFR part 15.

(F) Section 103 HUD Reform Act

    HUD will comply with section 103 of the Department of Housing and 
Urban Development Reform Act of 1989 and HUD's implementing regulations 
in subpart B of 24 CFR part 4 with regard to the funding competition 
announced today. These requirements continue to apply until the 
announcement of the selection of successful applicants. HUD employees 
involved in the review of applications and in the making of funding 
decisions are limited by section 103 from providing advance information 
to any person (other than an authorized employee of HUD) concerning 
funding decisions, or from otherwise giving any applicant an unfair 
competitive advantage. Persons who apply for assistance in this 
competition should confine their inquiries to the subject areas 
permitted under section 103 and subpart B of 24 CFR part 4.
    Applicants or employees who have ethics related questions should 
contact the HUD Office of Ethics at (202) 708-3815. (This is not a 
toll-free number.) For HUD employees who have specific program 
questions, such as whether particular subject matter can be discussed 
with persons outside HUD, the employee should contact the appropriate 
Field Office Counsel.

(G) Prohibition Against Lobbying Activities

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

[[Page 45695]]

1995), which repealed section 112 of the HUD Reform Act, requires all 
persons and entities who lobby covered executive or legislative branch 
officials to register with the Secretary of the Senate and the Clerk of 
the House of Representatives and file reports concerning their lobbying 
activities.

    Dated: July 18, 2000.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.

Attachment 1--Methodology for Determining Lease-up and Budget 
Authority Utilization Percentage Rates

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

Budget Authority Utilization

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

Example:

                                 PHA ABC
                  [Fiscal year 10/1/97 through 9/30/98]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
HUD 52681 Approved Data:
  HAP.....................................................   $2,500,000
  Administrative Fee......................................      250,000
  Hard to House Fee.......................................        1,000
  Audit...................................................        2,000
                                                           -------------
    Total.................................................    2,753,000
                                                           =============
  Interest earned on administrative fee...................       (2,500)
                                                           -------------
    Total contributions required..........................    2,750,500
------------------------------------------------------------------------

Calculation of Annual Budget Authority

----------------------------------------------------------------------------------------------------------------
                           Increments                                 Contract term       Total BA       ABA
----------------------------------------------------------------------------------------------------------------
001.............................................................     11/01/97-10/31/98   $1,300,000   $1,191,667
002.............................................................     01/01/98-12/31/98    1,200,000      900,000
003.............................................................     04/01/98-03/31/99      950,000      475,000
004.............................................................     07/01/98-06/30/99    1,500,000      375,000
                                                                                       -------------------------
    Totals......................................................  ....................    4,950,000    2,941,667
----------------------------------------------------------------------------------------------------------------

Budget Authority Utilization

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

Lease-up Rate

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

Example:

------------------------------------------------------------------------
               Increments                     Contract term       Units
------------------------------------------------------------------------
001.....................................     11/01/97-10/31/98      242
002.....................................     01/01/98-12/31/98      224
003.....................................     04/01/98-03/31/99      178
004.....................................     07/01/98-06/30/99      280
                                                               ---------
    Totals..............................  ....................      924
                                         ===============================
  Increment 003 litigation..............  ....................     (178)
    Adjusted contract units.............  ....................      746
------------------------------------------------------------------------


Unit months leased reported by PHA.........................        8,726
    divided by 12                                                    727
Units Leased...............................................          727
 

Lease-up Rate

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


[FR Doc. 00-18658 Filed 7-21-00; 8:45 am]
BILLING CODE 4210-33-P