[Federal Register Volume 66, Number 133 (Wednesday, July 11, 2001)]
[Notices]
[Pages 36430-36440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-17273]



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Part V





Department of Housing and Urban Development





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Notice of Funding Availability: Family Unification Program, Fiscal Year 
2001

  Federal Register / Vol. 66, No. 133 / Wednesday, July 11, 2001 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Docket No. FR-4675-N-01]


Notice of Funding Availability; Family Unification Program, 
Fiscal Year 2001

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 (FUP) is to (1) promote family unification by providing housing 
choice vouchers 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, and (2) provide housing choice 
vouchers to youths 18 to 21 years old who left foster care at age 16 or 
older and lack adequate housing. This second category of eligible 
participants for FUP vouchers has been added to this NOFA as a result 
of an amendment by Congress in FY 2001 to Section 8(x)(2) of the U.S. 
Housing Act of 1937.
    Available Funds. The $11,466,000 in one-year budget authority 
available under this NOFA will support approximately 2,000 housing 
choice vouchers. Approximately $6.4 million of these funds have been 
used to fund the approvable Family Unification Program applications 
submitted by public housing agencies (PHAs) in response to HUD's FY 
2000 Family Unification NOFA. That NOFA indicated in section II(C)(3) 
that ``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.'' The 12 previously unfunded FY 
2000 FUP applications that have been funded are: City of Fresno, 
California Housing Authority--$475,814 for 100 vouchers; Broward 
County, Florida Housing Authority--$667,841 for 100 vouchers; Orlando, 
Florida Housing Authority--$519,884 for 100 vouchers; Guam Housing and 
Urban Renewal Authority--$934,691 for 100 vouchers; Chicago, Illinois 
Housing Authority--$742,170 for 100 vouchers; Springfield, 
Massachusetts Housing Authority--$527,255 for 100 vouchers; New York 
State Division of Housing and Community Renewal--$155,503 for 40 
vouchers; Housing Authority of Winston-Salem, North Carolina--$388,758 
for 100 vouchers; Cuyahoga, Ohio Metropolitan Housing Authority--
$513,273 for 100 vouchers; Central Oregon Regional Housing Authority--
$364,503 for 75 vouchers; Housing Authority of the County of King, 
Washington--$716,572 for 100 vouchers; and Huntington, West Virginia 
Housing Authority--$386,126 for 100 vouchers.
    After funding these previously unfunded approvable FUP applications 
from FY 2000, there remains approximately $5.1 million under this NOFA 
to fund approximately 900 vouchers for new applications in FY 2001. The 
$5.1 million will be used to fund applications for FUP vouchers which 
can be used for either FUP-eligible families or FUP-eligible youths. 
(See section II(C)(1) of this NOFA).
    Funding under this NOFA may only be used to provide tenant-based 
housing assistance, as prescribed by section 8(x) of the U.S. Housing 
Act of 1937, so as to allow FUP-eligible families and FUP-eligible 
youths a choice in their selection of decent, safe, and affordable 
units on the private market.
    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 
housing choice voucher annual contributions contracts (ACC) with IHAs 
after September 30, 1997.
    Application Deadline. August 10, 2001.
    Match. None

SUPPLEMENTARY 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, Family Unification Program 
requirements, the process to be used in selecting applications for 
funding, and other valuable information relative to a PHA's 
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 
one copy) is due on or before August 10, 2001, at the address shown 
below. This application deadline is firm. 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 submit their applications early 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.
    Address for Submitting Applications. Submit your original 
application and one copy, and a form HUD-2993, Acknowledgment of 
Application Receipt, 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.
    The Grants Management Center is the official place of receipt for 
all applications in response to this NOFA. A copy of your application 
is not required to be submitted to the local HUD Field Office. For ease 
of reference, the term ``local HUD Field Office'' will be used in this 
NOFA to mean the local HUD Field Office Hub and local HUD Field Office 
Program Center.
    Hand Carried Applications. If you are hand delivering your 
application, your application is due no later than 8:45 am to 5 pm, 
Eastern time, on the application due date to the Office of Public and 
Indian Housing's Grants Management Center (GMC) in Washington, DC.
    Mailed Applications. Applications sent by U.S. mail will be 
considered timely filed if postmarked on or before 12:00 midnight on 
the application due date and received on or within ten (10) days of 
that date at the GMC.
    Applications Sent by Overnight/Express Mail Delivery. Applications 
sent by overnight delivery or express mail will be considered timely 
filed if received by the GMC 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 necessary for 
submitting an application in response to this NOFA. This NOFA contains 
all the information necessary for the submission of your application 
for voucher funding under the FUP.
    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 contact the GMC at (202) 
358-0312, ext. 7675. (These are not toll-free numbers.) Persons with 
hearing or speech

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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 (Available Funds/Maximum 
Voucher Request/Lottery), Underfunding Corrections, Unfunded 
Approvable Applications, Voucher Funding and Eligible Applicants

(A) Authority

    The Family Unification Program is authorized by section 8(x) of the 
United States Housing Act of 1937 (42 U.S.C. 1437(X)). The Department 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, FY 2001 (Pub. L. 106-377, approved October 
27, 2000), referred to in this NOFA as the FY 2001 HUD Appropriations 
Act, provides funding for the Family Unification Program.

(B) Purpose

    The Family Unification Program is a program under which housing 
choice vouchers are provided to:
    (1) Families for whom the lack of adequate housing is a primary 
factor in:
    (a) The imminent placement of the family's child, or children, in 
out-of-home care; or
    (b) The delay in the discharge of the child, or children, to the 
family from out-of-home care.
    (2) Youths at least 18 years old and not more than 21 years old 
(have not reached 22nd birthday) who left foster care at age 16 or 
older and who do not have adequate housing. A FUP voucher issued to 
such a youth may only be used to provide housing assistance for the 
youth for a maximum of 18 months.
    Vouchers awarded under the Family Unification Program are 
administered by PHAs under HUD's regulations for the Housing Choice 
Voucher Program (24 CFR part 982).

(C) Amount Allocated

    (1) Available Funds. This NOFA announces the availability of 
approximately $5.1 million for new FY 2001 applications for the Family 
Unification Program which will provide assistance for about 900 FUP-
eligible families and FUP-eligible youths. The $5.1 million will be 
used to fund applications for vouchers which can be used by PHAs for 
families for whom the lack of adequate housing is a primary actor in 
the separation, or the threat of imminent separation, of children from 
their families; and/or youths 18 to 21 years old who left foster care 
at age 16 or older and who lack adequate housing.
    (2) Maximum Voucher Request. The total number of vouchers a PHA may 
apply for will be based upon the size of the PHA. PHAs with a housing 
choice voucher and certificate program of 2000 or more units under an 
ACC may apply for funding for a maximum of 100 units. PHAs with a 
housing choice voucher and certificate program of 500 units to 1999 
units may apply for 50 units. PHAs with a housing choice voucher or 
certificate program of less than 500 units under an ACC may apply for a 
maximum of 25 units. PHAs not currently administering either a housing 
choice voucher or certificate program may apply for a maximum of 25 
units.
    (3) Lottery. A national lottery will be conducted to select 
approvable applications for funding if approvable applications are 
submitted in FY 2001 for more funding than is available under this 
NOFA. (See section IV(C) of this NOFA regarding the lottery procedures 
to be followed in the funding of approvable applications.)

(D) Underfunding Corrections

    If prior to the award of FY 2001 FUP funding, HUD determines that 
any awardees under the FY 2000 Family Unification Program NOFA have 
been underfunded due to an error attributable to HUD, HUD will increase 
funding to the amount the awardee should have received. Funding of any 
such FY 2000 awardees will be dependent upon the availability of FY 
2001 FUP funds.

(E) 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 2002 provided HUD receives additional 
appropriations for FUP for FY 2002.

(F) 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 
(except that for Moving to Work (MTW) agencies the per unit cost will 
be calculated in accordance with the agency's MTW Agreement) using the 
following three step process:
    (a) HUD will extract the total expenditures for all the PHA's 
housing choice voucher and certificate 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 housing choice voucher and 
certificate programs by the unit months leased to derive an average 
monthly per unit cost.
    (b) HUD will multiply the average monthly per unit cost by 12 
(months) to obtain an average annual per unit cost.
    (c) HUD will multiply the average annual per unit cost derived 
under paragraph (b) above by the 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.
    (Note: Applicants who do not currently administer a housing choice 
voucher or certificate program shall have their voucher funding based 
upon the actual annual per unit costs of the PHA in the most immediate 
area administering a housing choice voucher or certificate program, 
using the three step process described immediately above.)
    (2) Preliminary Fee. A preliminary fee of up to $500 per unit for 
preliminary (start-up) expenses will be paid to PHAs that have not 
previously administered their own housing choice voucher or certificate 
program and that are selected for funding under this NOFA. The 
preliminary fee will be provided to such PHAs only in their first year 
of administration of the housing choice voucher program.

(G) Eligible Applicants

    Any PHA established pursuant to State law, including regional 
(multi-county) or State PHAs, may apply for funding under this NOFA. A 
PHA may submit only one application under this NOFA. This one 
application per PHA limit applies regardless of whether the PHA is a 
State or regional PHA, except in those instances where such a PHA has 
more than one PHA code number due to its operating under the 
jurisdiction of more than one HUD Field Office. In such instance, a 
separate application under each code shall be considered for funding 
with the cumulative total of vouchers applied for under the 
applications not to exceed the maximum number of vouchers the PHA is 
eligible to apply for under section II(C)(1) of this NOFA; i.e., no 
more than the number of vouchers the same PHA would be eligible to 
apply for if it had only one PHA code number.
    Two or more divisions within State government comprising separate 
PHAs shall require the State to determine which division shall submit 
an application to HUD under this funding announcement. As with other 
PHAs, only one application per PHA shall be

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considered (see sole exception referenced immediately above).
    A contract administrator that does not have an annual contributions 
contract (ACC) with HUD for housing choice vouchers or certificates, 
but constitutes a PHA under 24 CFR 791.102 by reason of its 
administering housing choice vouchers or certificates on behalf of 
another PHA, shall not be eligible to submit an application under this 
NOFA.
    Indian Housing Authorities (IHA), Indian tribes and their tribally 
designated housing entities are not eligible to apply because the 
Native American Housing Assistance and Self-Determination Act of 1996 
does not allow HUD to enter into new housing choice voucher annual 
contributions contracts (ACC) with IHAs after September 30, 1997.
    Some PHAs currently administering the housing choice 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 or satisfactory 
progress toward closing the findings or addressing compliance problems 
has been made) 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 or program compliance problems are those that would 
cast doubt on the capacity of the PHA to effectively administer any new 
housing choice 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 of 1964, 
section 504 of the Rehabilitation Act of 1973, or section 109 of the 
Housing and Community Development Act of 1974, the applicant's 
application will not be evaluated under this NOFA if, prior to the 
application deadline, the charge, lawsuit, or letter of findings has 
not been resolved to the satisfaction of the Department. HUD's decision 
regarding whether a charge, lawsuit, or a letter of findings has been 
satisfactorily resolved will be based upon whether the 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 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 the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
seq.).
    (3) Affirmatively Furthering Fair Housing. Each successful 
applicant will have a duty to affirmatively further fair housing. 
Applicants will be required to identify the specific steps that they 
will take to:
    (a) Examine the PHA's own programs or proposed programs, including 
an identification of any impediments to fair housing {identified in the 
jurisdiction's Analysis of Impediments (AI) to Fair Housing Choice in 
its Consolidated Plan}; develop a plan to (i) address those impediments 
in a reasonable fashion in view of the resources available; and (ii) 
work with the local jurisdictions to implement any of the 
jurisdictions' initiatives to affirmatively further fair housing; and 
maintain records reflecting this analysis and actions.
    (b) Remedy discrimination in housing; or
    (c) Promote fair housing rights and fair housing choice.
    Further, applicants have a duty to carry out the specific 
activities cited in their responses under this announcement to address 
affirmatively furthering fair housing.
    (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 Program eligible families and youths. Each 
PHA must modify its selection preference system to permit the selection 
of those FUP-eligible families and/or FUP-eligible youths to which the 
PHA intends to issue FUP vouchers with available funding provided by 
HUD for this purpose. The terms ``FUP-eligible family'' and ``FUP-
eligible youth'' are defined as follows:
    (i) A FUP-eligible family is a family that 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

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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 that the PHA has determined is eligible for a housing choice 
voucher.
    (ii) A FUP-eligible youth is a youth that the public child welfare 
agency has certified is a youth at least 18 years old and not more than 
21 years old (has not reached his/her 22nd birthday) who left foster 
care at age 16 or older and who does not have adequate housing, and 
that the PHA has determined is eligible for a housing choice voucher. 
(A FUP voucher issued to such a youth must not, by statute, be used to 
provide housing assistance for more than 18 months.)
    (b) Lack of Adequate Housing. The lack of adequate housing means:
    (i) A family or youth is living in substandard or dilapidated 
housing; or
    (ii) A family or youth is homeless; or
    (iii) A family or youth is displaced by domestic violence; or
    (iv) A family or youth is living in an overcrowded unit; or
    (v) A family or youth is living in housing not accessible to its 
disabled child or children due to the nature of the disability.
    (c) Substandard Housing. A family or youth is living in substandard 
housing if the unit where the family or youth 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 or youth;
    (iv) Does not have a usable bathtub or shower inside the unit for 
the exclusive use of a family or youth;
    (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 of government.
    (d) Dilapidated Housing. A family or youth is living in a housing 
unit that is dilapidated if the unit where the family or youth lives 
does not provide safe and adequate shelter, and in its present 
condition endangers the health, safety, or well-being of a family or 
youth, 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 (including a 
youth) 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 or youth 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 by a 
spouse or other member of the applicant's household.
    (g) Involuntarily Displaced. For a family or youth 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 or youth unless the PHA has 
given advance written approval. If the family or youth is admitted, the 
PHA may terminate assistance to the family or youth for breach of this 
certification.
    (h) Living in Overcrowded Housing. A family or youth is considered 
to be living in an overcrowded unit if it meets the following separate 
criteria for a family or youth as follows:
    (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.
    (iii) The youth is living in a unit that is overcrowded.
    For purposes of this paragraph (h), the PHA may determine whether 
the unit is ``overcrowded'' in accordance with PHA subsidy standards.
    (i) Detained Family Member. A FUP-eligible family or FUP-eligible 
youth's 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, or that a youth left 
foster care at age 16 or older and is at least 18 years old and not 
more than 21 years old.
(2) PHA Responsibilities
    PHAs must:
    (a) Accept families and youths certified by the PCWA as eligible 
for the Family Unification Program. The PHA, upon receipt of the PCWA 
list of families and youths currently in the PCWA caseload, must 
compare the names with those of families and youths already on the 
PHA's housing choice voucher waiting list. Any family or youth on the 
PHA's housing choice voucher 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 or youth certified 
by the PCWA as eligible and not on the housing choice voucher waiting 
list must be placed on the waiting list. If the PHA has a closed 
housing choice voucher waiting list, it must reopen the waiting list to 
accept a Family Unification Program applicant family or youth who is 
not currently on the PHA's housing choice voucher waiting list;
    (b) Determine if any families with children, or youths age 18 
through 21 on its housing choice voucher 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 with children, or youths age 18 through 
21 referred by the PCWA are eligible for housing choice voucher 
assistance and place eligible families/youths on the housing choice 
voucher 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;

[[Page 36434]]

    (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 FUP-eligible 
families and FUP-eligible youths 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 FUP-eligible family, or that a youth qualifies as a FUP-
eligible youth, 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 eligible 
families and youths are identified and determined eligible in a timely 
manner and to provide follow-up supportive services after these 
families and youths 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 indicating 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 section IV(B)(3) regarding the MOU.}
(4) Housing Choice Voucher Assistance
    The Family Unification Program provides funding for housing 
assistance under the Housing Choice Voucher Program. PHAs must 
administer this program in accordance with HUD's regulations governing 
the Housing Choice Voucher Program.
(5) Turnover
    If a voucher issued to a FUP-eligible family or FUP-eligible youth 
under this program is terminated, the voucher must be reissued to 
either another FUP-eligible family or FUP-eligible youth. FUP vouchers 
must continue to be issued to such families and youths for 5 years from 
the initial date of execution of the Annual Contributions Contract 
subject to the availability of renewal funding. Since the vouchers 
funded under the FUP are for use by PHAs for either FUP-eligible 
families or FUP-eligible youths and are not designated by the PHA in 
its application (or HUD in the award of FUP funding), as being only for 
FUP-eligible families and/or FUP-eligible youths, FUP vouchers may be 
used by PHAs for such families and youths based upon local needs and as 
is consistent with the PHA's administrative plan.
    A FUP voucher issued to a youth age 18 to 21 may not be used to 
provide housing assistance for that youth for a period of more than 18 
months, as per the statutory requirements of Section 8(x)(2) of the 
U.S. Housing Act of 1937, as amended.

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 2001 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 this NOFA, in order to be 
eligible for funding, must receive at least 20 points for Threshold 
Criterion 2, Efforts of PHA to Provide Area-Wide Housing Opportunities 
for Families. Each application must also meet the requirements for 
Threshold Criterion 1, Unmet Housing Needs; Threshold Criterion 3, 
Memorandum of Understanding (MOU)--Coordination between PHA and Public 
Child Welfare Agency to Identify and Assist FUP-Eligible Families and 
FUP-Eligible Youths; 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 housing choice vouchers than it is 
requesting under this NOFA. The PHA must assess and document the unmet 
housing need for its geographic jurisdiction of: (a) 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, and/or (b) youths at least 18 years old and not more than 21 
years old (have not reached his/her 22nd birthday) who left foster care 
at age 16 or older and who do not have adequate housing. The results of 
the assessment must include a comparison of the estimated unmet housing 
needs of such families and youths to the Consolidated Plan covering the 
PHA's jurisdiction. The demonstration of need and comparison to the 
Consolidated plan should be based on those FUP-eligible families, and/
or FUP-eligible youths that the PHA is basing its voucher request upon 
and to which it intends to issue FUP vouchers.
(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 criterion must be beyond those required 
by federal law or regulation such as the portability provisions of the 
Housing Choice Voucher Program.
    (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 50 
points) to determine the total points for this criterion:
    (i) 10 points--Assign 10 points if the PHA documents that it either 
absorbs all portable housing choice voucher families, or participates 
in an area-wide exchange program where all PHAs absorb portable housing 
choice voucher 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

[[Page 36435]]

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 other PHAs in using a metropolitan wide or combined 
waiting list for selecting participants for the housing choice voucher 
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.
    (v) 10 Points--Assign 10 points if the PHA is using housing choice 
vouchers or certificates (not part of a previously HUD-approved FUP) to 
create a FUP or to expand upon its existing FUP.
(3) Threshold Criterion 3: Memorandum of Understanding (MOU)--
Coordination Between PHA and Public Child Welfare Agency to Identify 
and Assist FUP-Eligible Families and FUP-Eligible Youths
    The application must include an 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 FUP-eligible 
families and/or FUP-eligible youths, 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 and youths, as 
appropriate, 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.
    (f) If the PHA intends to issue FUP vouchers to FUP-eligible 
youths, the services to be provided to such youths by the PCWA, or by 
another agency/organization under agreement/contract to the PCWA to 
provide the services, which at a minimum must include the following for 
a period of not less than the 18 months a FUP-eligible youth is 
receiving rental assistance through the use of a FUP voucher:
    (i) Basic life skills information/counseling on money management, 
use of credit, housekeeping, proper nutrition/meal preparation; and 
access to health care (e.g., doctors, medication, and mental and 
behavioral health services).
    (ii) Counseling on compliance with rental lease requirements and 
with housing choice voucher program participant requirements, including 
assistance/referrals for assistance on security deposits, utility hook-
up fees, and utility deposits.
    (iii) Providing such assurances to owners of rental property as are 
reasonable and necessary to assist a FUP-eligible youth to rent a unit 
with a FUP voucher.
    (iv) Job preparation and attainment counseling (where to look/how 
to apply, dress, grooming, relationships with supervisory personnel, 
etc.).
    (v) Educational and career advancement counseling regarding 
attainment of general equivalency diploma (GED); attendance/financing 
of education at technical school, trade school or college; including 
successful work ethic and attitude models.
    (vi) Participation of FUP-eligible youths in the assessment and 
implementation of actions to address their needs, including the 
development of an individual case plan on each youth for services to be 
received and the youth's commitment to the plan (youth required to sign 
a service plan agreeing to attend counseling/training sessions and to 
take other actions as deemed appropriate to the youth's successful 
transition from foster care). Note: A youth's failure to fulfill their 
obligations under the service plan is not grounds to terminate the 
youth from the housing choice voucher 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 must clearly indicate the amount 
of time and staff resources the PCWA will commit on a continuing basis 
to identifying the FUP-eligible families and/or FUP-eligible youths to 
which FUP vouchers are intended to be issued; the length of time it 
will provide follow-up support services to these FUP-eligible families 
and/or FUP-eligible youths after they receive their vouchers; etc. An 
MOU that does not contain the information required in this Threshold 
Criterion 3 will be deemed unacceptable and thereby the PHA's 
application for the Family Unification Program shall be determined to 
be unacceptable for funding.
(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 in the area to be served for a program providing assistance to (a) 
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, and/
or (b) youths age 18 to 21 who left foster care at age 16 or older and 
who lack adequate housing, 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 by indicating the 
number of FUP-eligible families who currently have children in danger 
of being placed in out-of-home or who cannot be returned from out-of-
home care due to inadequate housing, and/or the number of youths at 
least 18 years old but not more than 21 years old (have not yet reached 
their 22nd birthday) who left foster care at age 16 or older and who do 
not have adequate housing. 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/or the number 
and characteristics of youths age 18 through 21 released from foster 
care at age 16 or older who do not have adequate housing, and the 
PCWA's past experience in obtaining housing through HUD assisted 
programs and other sources for families and youths lacking adequate 
housing.
    The PCWA's statement of need should be based solely on those types 
of eligible FUP voucher participants; i.e., FUP-eligible families and/
or FUP-eligible youths to which the PHA may issue FUP vouchers.

(C) Funding FY 2001 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), the Grants Management Center will 
review and rate all approvable applications under section V, 
Application Submission Requirements, of 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 
2001 are received for more funding than the approximately $5.1 million 
available under this NOFA. All FY 2001 PHA

[[Page 36436]]

applications identified by the Grants Management Center as meeting the 
requirements of this NOFA will be eligible for the lottery selection 
process.
    If the cost of funding approvable applications exceeds available 
funds, HUD will limit the number of FY 2001 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. This form includes all the necessary certifications for Fair 
Housing, Drug-Free Workplace and Lobbying Activities. PHAs are 
requested to enter their housing authority code number (for example, 
CT002) as well as their electronic mail address, telephone number, and 
facsimile telephone number in the same place at the top of the form 
where they are also to enter the PHA's name and mailing address. 
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 ``handbooks and forms,'' then 
click on ``forms,'' next 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

    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 the number of vouchers it is requesting and 
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 and youths receiving rental 
assistance under the family unification program. The application must 
include an explanation of how the application meets the requirements 
for Threshold Criteria 1 through 4 in sections IV (A) and (B) of this 
NOFA. The application must also include a 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 (as appropriate to 
whether the PHA intends to issue FUP vouchers to FUP-eligible families 
and/or FUP-eligible youths) 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 or the 
delayed discharge of children from out-of-home care as a result of 
inadequate housing, the number and characteristics of youths age 18 to 
21 years old who left foster care at age 16 or older and who lack 
adequate housing, and the PCWA's experience in obtaining housing 
through HUD assisted housing programs and other sources for families 
and youths lacking adequate housing. A State-wide Public 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:
    (1) An examination of the PHA's own programs or proposed programs, 
including an identification of any impediments to fair housing 
[identified in the jurisdiction's Analysis of Impediments (AI) to Fair 
Housing Choice--in its Consolidated Plan]; and a description of a plan 
developed to (a) address those impediments in a reasonable fashion in 
view of the resources available, and (b) work with local jurisdictions 
to implement any of the jurisdictions' initiatives to affirmatively 
further fair housing; and the maintenance of records reflecting this 
analysis and actions;
    (2) remedy discrimination in housing; or
    (3) promote fair housing rights and fair housing choice.

(E) Moving to Work (MTW) PHA Information and Certification

    See section VI(B)(2)(c) of this NOFA regarding the information to 
be submitted by a MTW PHA required to report under the Section 8 
Management Assessment Program (SEMAP) but not meeting the 95 percent 
lease-up or budget authority utilization requirements, or the lease-up 
or budget authority utilization certification to be submitted by an MTW 
PHA not required to report under SEMAP.

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

[[Page 36437]]

to correct technical deficiencies. Please note, however, that HUD may 
not seek clarification of items or responses that improve the 
substantive quality of a response to any selection factors. In order 
not to unreasonably exclude applications from being rated and ranked, 
HUD may contact applicants to ensure proper completion of the 
application and will do so on a uniform basis for all applicants. 
Examples of curable (correctable) technical deficiencies include 
failure to submit the proper certifications or failure to submit an 
application that contains an original signature by an authorized 
official. In each case under this NOFA, the GMC will notify the 
applicant in writing by describing the clarification or technical 
deficiency. The applicant must submit clarifications or corrections of 
technical deficiencies in accordance with the information provided by 
the GMC so as to be received by the GMC within 14 calendar days of the 
date of receipt of the HUD notification. (If the due date falls on a 
Saturday, Sunday, or Federal holiday, your correction must be received 
by HUD on the next day that is not a Saturday, Sunday, or Federal 
holiday.) If the deficiency is not corrected within this time period, 
HUD will reject the application as incomplete, and it will not be 
considered for funding.

(B) Unacceptable Applications

    (1) After the 14-calendar day technical deficiency correction 
period, the Grants Management Center will disapprove all PHA 
applications that the Grants Management Center determines are not 
acceptable for processing. The Grant 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 that do not meet the fair housing and civil rights 
compliance threshold requirements of section III(A)(1) of this NOFA, 
Compliance With Fair Housing and Civil Rights Laws.
    (b) The PHA has major program management findings in an Inspector 
General audit, HUD management review, or independent public accountant 
(IPA) audit for its voucher or certificate programs that are not closed 
or on which satisfactory progress in resolving the findings is not 
being made; or program compliance problems for its voucher or 
certificate programs on which satisfactory progress is not being made. 
The only exception to this category is if the PHA has been identified 
under the policy established in section II(E) of this announcement and 
the PHA makes application with a designated contract administrator. 
Major program management findings or program compliance problems are 
those that would cast doubt on the capacity of the PHA to effectively 
administer any new housing choice voucher funding in accordance with 
applicable HUD regulatory and statutory requirements.
    (c) The PHA has failed to achieve a lease-up rate of 95 percent for 
its combined certificate and voucher units under contract for its 
fiscal year ending in 1999. Category (c) may be passed, however, if the 
PHA achieved a combined certificate and voucher budget authority 
utilization rate of 95 percent or greater for its fiscal year ending in 
1999. In the event the PHA is unable to meet either of these percentage 
requirements, the PHA may still pass category (c) if the PHA submits 
information to the Grants Management Center, as part of its 
application, demonstrating that the PHA was able to either increase its 
combined certificate and voucher lease-up rate to 95 percent or greater 
for its fiscal year ending in 2000, or was able to increase combined 
certificate and voucher budget authority utilization to 95 percent or 
more for its fiscal year ending in 2000. PHAs determined by HUD to have 
passed either the 95 percent lease-up, or 95 percent budget authority 
utilization requirement for their fiscal year ending in 1999 will be 
listed on the following HUD website: http://www.hud.gov/cio/grants/fundsavail.html, along with this NOFA. A PHA not listed must either 
submit information (following the format of Appendix A of this NOFA) in 
its application supportive of its 95 percent lease-up or 95 percent 
budget authority utilization performance for its fiscal year ending in 
2000, or submit information (following the format of Appendix A of this 
NOFA) as part of its application supportive of its contention that it 
should have been included among those PHAs listed by HUD as having 
achieved either a 95 percent lease-up rate or 95 percent budget 
authority utilization rate for fiscal years ending in 1999. Appendix A 
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 1999. Any PHA wishing to 
submit information to the Grants Management Center in connection with 
its 1999 fiscal year or 2000 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 Appendix A.
    Moving to Work (MTW) agencies that are required to report under the 
Section 8 Management Assessment Program (SEMAP) shall be held to the 95 
percent lease-up and budget authority utilization requirements 
referenced above, except where such a MTW agency provides information 
in its application demonstrating to HUD that a lower percentage is the 
result of the implementation of specific aspects of its program under 
its MTW Agreement with HUD. MTW agencies which are not required to 
report under SEMAP must submit a certification with their application 
certifying that they are not required to report under SEMAP, and that 
they meet the 95 percent lease-up or budget authority utilization 
requirements.
    PHAs not currently administering a certificate or voucher program, 
or who received voucher funding for the first time during the past 12 
months will not be subject to the 95 percent lease-up or budget 
authority utilization requirements of this section (c).
    (d) The PHA is involved in litigation and HUD determines that the 
litigation may seriously impede the ability of the PHA to administer 
the vouchers.
    (e) A PHA's application that does not comply with the requirements 
of 24 CFR 982.102 and the requirements of this NOFA after the 
expiration of the 14-calendar-day technical deficiency correction 
period.
    (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 ``Address for Submitting 
Applications'' at the beginning of this NOFA.
    (h) The applicant has been debarred or otherwise disqualified from 
providing assistance under the housing choice voucher program.
    (i) The applicant has failed to achieve a minimum 85 percent 
submission rate for housing choice voucher and certificate resident 
records to HUD's Multifamily Tenant Characteristics System (MTCS), as 
set forth in 24 CFR part 908 and Notices PIH 98-3, 99-2, and 2000-13, 
for the period ending December 1999. In the event a PHA did not achieve 
an 85 percent rate of reporting under MTCS for this period, the PHA 
will still be considered to have passed the threshold if it (1) 
subsequently achieved a minimum reporting rate of not less than 85 
percent for the period ended December 2000, or (2) requested 
forbearance from HUD under the applicable procedures in Notice PIH 
2000-13 for the semi-annual

[[Page 36438]]

assessment period ending December 2000, contingent upon HUD approval of 
the forbearance request.

VII. Findings and Certifications

(A) Paperwork Reduction Act Statement

    The Housing Choice Voucher Program 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) and (15) (see also 24 CFR 
58.35(b) (1) and (5)), tenant-based rental activities and activities to 
assist homeownership of existing units 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 most of the related laws and authorities. 
This NOFA provides funding for these activities under 24 CFR part 982, 
which contains limited environmental provisions concerning only 
homeownership activities in 24 CFR 982.305(b)(4) and 982.626(c), 
because of the categorical exclusion of the rental and homeownership 
activities from environmental review. This NOFA does not alter these 
environmental provisions. Accordingly, under 24 CFR 50.19(c)(5), 
issuance of this NOFA is also categorically excluded from environmental 
review under NEPA.

(C) Catalog of Federal Domestic Assistance Numbers

    The Federal Domestic Assistance number for this program is 14.857.

(D) Federalism Impact

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

(E) Accountability in the Provision of HUD Assistance

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

(F) Section 103 HUD Reform Act

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

(G) Prohibition Against Lobbying Activities

    Applicants for funding under this NOFA are subject to the 
provisions of section 319 of the Department of Interior and Related 
Agencies Appropriation Act for Fiscal Year 1991 (31 U.S.C. 1352) (the 
Byrd Amendment) and to the provisions of the Lobbying Disclosure Act of 
1995 (Pub. L. 104-65; approved December 19, 1995).
    The Byrd Amendment, which is implemented in regulations at 24 CFR 
part 87, prohibits applicants for Federal contracts and grants from 
using appropriated funds to attempt to influence Federal executive or 
legislative officers or employees in connection with obtaining such 
assistance, or with its extension, continuation, renewal, amendment, or 
modification. The Byrd Amendment applies to the funds that are the 
subject of this NOFA. Therefore, applicants must file a certification 
stating that they have not made and will not make any prohibited 
payments and, if any payments or agreement to make payments of 
nonappropriated funds for these purposes have been made, a form SF-LLL 
disclosing such payments must be submitted.
    The Lobbying Disclosure Act of 1995 (Pub. L. 104-65; approved 
December 19, 1995), which repealed section 112 of the HUD Reform Act, 
requires all persons and entities who lobby covered executive or 
legislative branch officials to register with the Secretary of the 
Senate and the Clerk of the House of

[[Page 36439]]

Representatives and file reports concerning their lobbying activities.

    Dated: June 15, 2001.
Paula O. Blunt,
Acting General Deputy Assistant Secretary for Public and Indian 
Housing.

Appendix A

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

    Using data from the HUDCAPS system, HUD determined which PHAs 
met the 95% budget authority utilization or 95% lease-up criteria. 
The data used in the determination was based on PHA fiscal years 
ending in 1999. 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 1999 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 1999 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 10/1/98 through 9/30/99]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
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.....................................  11/01/98-10/31/99...................        $1,300,000  $1,191,667
    002.....................................  01/01/99-12/31/99...................            1,200,000  900,000
    003.....................................  04/01/99-03/31/00...................              950,000  475,000
    004.....................................  07/01/99-06/30/00...................            1,500,000  375,000
                                             -------------------------------------------------------------------
      Totals................................    ..................................          4,950,000  2,941,667
----------------------------------------------------------------------------------------------------------------


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

Lease-up Rate

    The lease-up rate was determined by comparing the reserved units 
(funding increments active as of the end of the PHA 1999 year) to 
the unit months leased (divided by 12) reported on the combined HUD 
52681, Year End Settlement Statement(s) for 1999.
    Active funding increments awarded by HUD for special purposes 
such as litigation, relocation/replacement, housing conversions, 
Welfare to Work, and new units awarded to the PHA during the last 
twelve months were excluded from the reserved units as the 
Department recognizes that many of these unit allocations have 
special requirements which require extended periods of time to 
achieve lease-up.

[[Page 36440]]

Example

------------------------------------------------------------------------
            Increments                   Contract Term          Units
------------------------------------------------------------------------
001..............................  11/01/98-10/31/99.......          242
002..............................  01/01/99-12/31/99.......          224
003..............................  04/01/99-03/31/00.......          178
004..............................  07/01/99-06/30/00.......          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............................................        97.5%
 

[FR Doc. 01-17273 Filed 7-10-01; 8:45 am]
BILLING CODE 4210-33-P