[Federal Register Volume 66, Number 133 (Wednesday, July 11, 2001)]
[Notices]
[Pages 36404-36413]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-17274]



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Part III





Department of Housing and Urban Development





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Notice of Funding Availability Housing Search Assistance Program Fiscal 
Year 2001; Notice

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

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4627-N-01]


Notice of Funding Availability Housing Search Assistance Program 
Fiscal Year 2001

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of Funding Availability (NOFA).

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SUMMARY: Purpose of the Program. The purpose of the Housing Search 
Assistance Program (HSAP) is to assist housing choice voucher families 
in expanding their housing opportunities and in accessing lower-poverty 
neighborhoods through their receipt of housing counseling and 
supportive services from public housing agencies (PHA) partnering with 
nonprofit organizations. The counseling services will provide eligible 
families with information about a wide range of housing options, 
including options in lower-poverty neighborhoods, so that the families 
may make informed decisions in selecting housing and move closer to job 
sites, public transportation, shopping, schools, training opportunities 
and family/friends support networks. The program will also provide 
supportive services to help recipients comply with private owner rental 
lease requirements, housing quality standards (HQS) and other family 
obligations under the voucher program, remain stably housed, and 
successfully adjust to their new communities.
    Available Funds. The approximately $10 million in housing choice 
voucher program administrative fees available under this NOFA will 
support funding for up to 15 eligible applicants for three years for 
HSAP activities.
    Eligible Applicants. Public Housing Agencies (PHAs) that submit an 
application with one or more nonprofit organizations as the co-
applicant (including but not limited to faith-based and other 
community-based organizations) for the provision of housing counseling 
services and related supportive services. Indian Housing Authorities 
(IHA), 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 (housing choice voucher) annual contributions contracts (ACC) with 
IHAs after September 30, 1997.
    Application Deadline. October 9, 2001.
    Match. None

Additional Information

    If you are interested in applying for funding under the HSAP, 
please read this NOFA which will provide you with detailed information 
regarding the submission of an application, HSAP requirements, the 
application selection process to be used in selecting applications for 
funding, and other valuable information relative to participation in 
the HSAP.

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 October 9, 2001, at the address shown 
below. This application deadline date is firm. In the interest of 
fairness to all competing applicants, 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 to Michael E. Diggs, Director of the Grants 
Management Center, Department of Housing and Urban Development, 501 
School Street, SW., Suite 800, Washington, DC 20024. 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 throughout this NOFA to 
mean the local HUD Field Office Hub and local HUD Field Office Program 
Center.
    Hand Carried Applications. Hand carried applications must be 
delivered to the Grants Management Center by not later than 8:45 am to 
5:15 pm, Eastern time, on the application deadline date. After 5:15 pm 
on the application deadline date, applications will be accepted in the 
South Lobby of HUD Headquarters, 451 Seventh Street, SW., Washington, 
DC 20410, until 12:00 midnight, Eastern time.
    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 Grants Management Center.
    Applications Sent By Overnight/Express Mail Delivery. Applications 
sent by overnight delivery or express mail will be considered timely 
filed if received by the Grants Management Center on or before 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 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 authority for the funding available for the HSAP is found in 
the Department of Veterans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 1999 (Pub. L. 105-276, 
approved October 21, 1998), referred to in this NOFA as the FY 1999 HUD 
Appropriations Act). The FY 1999 HUD Appropriations Act refers to the 
funding being made available as for ``regional opportunity 
counseling.'' In lieu of this description, HUD is calling the program 
funded under this appropriation the Housing Search Assistance Program 
(HSAP), as this title better encompasses the housing counseling and 
related supportive services for which funding is being announced as 
available under this NOFA.

(B) Purpose

    The HSAP is a program under which a PHA, with a co-applicant 
nonprofit organization(s), will be provided

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funding for housing counseling and other supportive services to assist 
families in expanding their housing opportunities. Each funded PHA (as 
the lead applicant in the application) will be required to enter into a 
memorandum of understanding (MOU) with a nonprofit organization(s) to 
provide housing counseling and/or related supportive services to 
housing choice voucher families. There is no requirement that the PHA 
enter into a MOU with a nonprofit organization(s) for the nonprofit 
organization's provision of all housing counseling and supportive 
services, although this would be acceptable. The ideal application 
would build on the existing strengths of the PHA and nonprofit(s) and 
modestly expand the capacity of these organizations to provide housing 
counseling and related supportive services. To ensure the program runs 
smoothly, it is essential that the relative roles and responsibilities 
of the PHA and the nonprofit organization(s) be defined clearly in the 
application.
    The housing counseling services provided through the program will 
give eligible families information about a wide range of housing 
options in neighborhoods throughout a metropolitan area, including 
lower-poverty neighborhoods, so that the families may make informed 
decisions about the selection of housing and move closer to job sites, 
job training, schools, child care, public transportation, shopping, and 
family/friends support networks. This will be accomplished through a 
combination of intensive counseling of families and outreach to 
landlords. In addition, the provision of (or provision of links to) 
supportive services to help participating families comply with private 
owner rental lease requirements, housing quality standards (HQS) and 
other family obligations under the voucher program, remain stably 
housed, and successfully adjust to their new communities are vitally 
important. In many cases, nonprofit organizations will be well-
positioned to provide these services.
    Each PHA must ensure that it, as well as the nonprofit(s) with 
which it enters into an MOU, uses the funding under this NOFA only for 
those families eligible under this NOFA and may not counsel families 
for which the PHA is funded from other sources; e.g., funds provided by 
HUD to assist and to counsel families benefiting from the settlement of 
litigation or involving desegregation.

(C) Amount Allocated

    This NOFA announces the availability of $10 million in housing 
choice voucher administrative fees for the HSAP which will provide 
funding for up to 15 PHAs for a period of three years. Applicants will 
be limited to applying for no more than the maximum dollar amount 
indicated below based on the current size of the PHA's housing choice 
voucher and certificate program.
    (1) PHA with 1250 or more vouchers/certificates: $1,000,000 
maximum.
    (2) PHA with 500 to 1249 vouchers/certificates: $600,000 maximum.
    (3) PHA with less than 500 vouchers/certificates: $150,000 maximum.

(D) Eligible Applicants

    A PHA established pursuant to State law, including regional 
(multicounty) or State PHAs, with an existing housing choice voucher or 
certificate program may apply for funding under this NOFA if it has a 
nonprofit organization(s) (including, but not limited to a faith-based 
or other community-based organization) with which it has entered into 
an MOU for housing counseling and related supportive services 
(contingent upon the PHA's receipt of funding under this NOFA), and 
falls into either of the following two categories under HUD's interim 
rule published in the Federal Register (FR-4606-I-01) on October 2, 
2000, on ``Increased Fair Market Rents and Higher Payment Standards for 
Certain Areas:''
    (1) A PHA in any of the 39 metropolitan areas for which fair market 
rents (FMR) will now be based on the 50th percentile: i.e., those large 
metropolitan areas where voucher holders are concentrated in a 
relatively small number of census tracts and low-rent housing is not 
well-distributed throughout the metropolitan area. The 39 metropolitan 
areas are listed in a notice published in the Federal Register (FR-
4589-N-03) on October 6, 2000; i.e., those metropolitan areas where 
families have experienced difficulty in renting housing in low-poverty 
areas.
    (2) A PHA eligible to use a Success Rate Payment Standard based on 
the 50th percentile rent; i.e., a PHA whose voucher holders have had 
less than a 75 percent success rate in locating a unit to rent, despite 
having increased the payment standards to 110 percent of the FMR. To be 
funded under this category, a PHA must be eligible for the Success Rate 
Payment Standard under the terms of the October 2, 2000 interim rule 
and Notice PIH 2001-1 (PHA). The PHA need not have applied to utilize 
the higher payment standards.
    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 (housing choice voucher) 
annual contributions contracts (ACC) with IHAs after September 30, 
1997.
    Some PHAs currently administering housing choice vouchers and 
certificates 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 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 HSAP, 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 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 are those that 
would cast doubt on the capacity of the

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PHA to effectively administer the HSAP funding being made available 
under this NOFA.

III. General Requirements and Requirements Specific to the HSAP

(A) General Requirements

    (1) Compliance With Fair Housing and Civil Rights Laws. All 
applicants, and co-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/co-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/co-
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 
compliance with the civil rights requirements listed at 24 CFR 
5.105(a), each successful applicant/co-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) 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 local jurisdictions to implement any of the jurisdiction's 
initiatives to affirmatively further fair housing; and maintain records 
reflecting these analyses and actions;
    (b) Remedy discrimination in housing; or
    (c) Promote fair housing rights and fair housing choice.
    (4) Certifications and Assurances. All applicants are required to 
submit signed copies of Assurances and Certifications. The standard 
Assurances and Certifications are on Form HUD-52515, Funding 
Application, which includes the Equal Opportunity Certification, 
Certification Regarding Lobbying, and Certification Regarding Drug-Free 
Workplace Requirements.
    (5) Disabled Accessibility. All applicants and co-applicants funded 
under this NOFA will make offices used for housing counseling or 
related supportive services accessible to persons with a wide range of 
disabilities.
    (6) Requirements Applicable to Faith-Based Organizations. Where a 
PHA proposes to contract for HSAP services with a primarily religious 
organization, or a wholly secular organization established by a 
primarily religious organization, the co-applicant(s) must ensure that 
it will adhere to the following principles which state: (a) The 
Organization will not discriminate against any segment of the 
population in the provision of services or in outreach, including those 
of other religious affiliations; (b) The organization will not provide 
religious instruction or religious counseling, conduct religious 
services or worship, engage in religious proselytizing, and/or exert 
religious influence in the provision of assistance for this program.

(B) Requirements Specific to the Housing Search Assistance Program

    (1) Definitions.
    (a) Eligible Family. A family is eligible to receive housing 
counseling and related supportive services under the HSAP if the family 
is a current participant in the housing choice voucher or certificate 
program, or if the family has received a housing choice voucher from 
the PHA to search for a unit. Housing counseling and related supportive 
services must be provided to these eligible families in the following 
order:
    (i) Families that currently receive income from work or are 
currently work-ready; i.e., enrolled in an education or job training 
program. (However, a family must also be given the benefit of this 
preference for housing counseling and related supportive services if 
the head or spouse, or sole member is age 62 or older, or is a person 
with disabilities.)
    (ii) All other eligible families. The other eligible families may 
be ranked at the PHA's discretion to meet the PHA's goals for policies 
established in its administrative plan.
    (b) Nonprofit Organization. An organization, no part of the net 
earnings of which inures to the benefit of any member, founder, 
contributor, or individual that provides housing counseling and/or 
related supportive services and has received a federal tax-exempt 
designation from the U.S. Internal Revenue Service. The nonprofit 
organization must:
    (i) Have a voluntary board;
    (ii) Be authorized by its charter or State law to enter into a 
contract with an organization such as a PHA to provide housing 
counseling and/or related supportive services;
    (iii) Have a functioning accounting system that is operated in 
accordance with generally accepted accounting practices, or designate 
an entity that will maintain a functioning accounting system for the 
organization in accordance with generally accepted accounting 
principles; and
    (iv) Practice affirmative marketing and nondiscrimination in the 
provision of assistance.
    (2) PHA/Nonprofit Organization Partnership and MOU. Any PHA wishing 
to submit an application under this NOFA must enter into a memorandum 
of understanding (MOU) with a nonprofit organization(s) (including, but 
not limited to faith-based and other community organizations) for the 
purpose of clearly delineating the roles and responsibilities of the 
parties in providing specific types of housing counseling and related 
supportive services (see section III(B)(3) and (4) of this NOFA) to 
eligible families with funds under this NOFA. The MOU must be dated and 
signed by authorized officials of the PHA and the non-profit(s).
    Among the nonprofit organizations that PHAs consider partnering 
with, they may wish to contact one or more of the HUD-approved housing 
counseling agencies in their area. There are approximately 1250 such 
agencies throughout the United States. These agencies may already have 
some or all of the skills and expertise the PHA is looking for in a 
nonprofit partner to meet the housing counseling and/or supportive 
service requirements of this

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NOFA. To determine which HUD-approved housing counseling agencies may 
be operating in a PHA's geographic area, it can view the State listings 
of such agencies on the internet at www.hudhcc.org. Click on ``Housing 
Counseling Agency Directory.''
    The PHA shall submit the application to HUD on behalf of itself and 
the nonprofit organization(s).
    (3) Housing Counseling Services Responsibilities. Either directly 
or indirectly through their nonprofit partners, PHAs funded under this 
NOFA must provide housing counseling services to assist housing choice 
voucher families in expanding their housing opportunities and in 
accessing lower-poverty neighborhoods. Funding provided under this NOFA 
must be used to augment, rather than supplant, the counseling services 
that PHAs are already required to provide under current housing choice 
voucher program rules and must seek to avoid unduly concentrating 
assisted families in high poverty neighborhoods. The following are 
examples of housing counseling services that may be funded under this 
NOFA:
    (a) Outreach to private landlords in lower-poverty neighborhoods 
(those neighborhoods where the concentration of families at or below 
the poverty level is less than 20 percent) throughout the metropolitan 
area. Examples of the types of outreach efforts that could be funded 
under this NOFA include the following:
    (i) Solicit the participation of owners and managers of housing in 
lower-poverty areas.
    (ii) Network with real estate boards, property management 
associations, real estate brokers, human relations commissions, and/or 
other groups or agencies that can assist in locating owners and 
managers willing to participate in the HSAP.
    (iii) Prepare materials to explain the voucher program and the HSAP 
to owners and managers.
    (iv) Conduct seminars for owners and managers on the voucher 
program, fair housing and the HSAP.
    (b) Provide counseling services to help families identify and apply 
for units in lower-poverty neighborhoods.
    (c) Provide counseling services to help acquaint families with the 
benefits of living in particular lower-poverty neighborhoods in the 
metropolitan area.
    (d) Review eligible families for credit reports, housekeeping 
skills and criminal backgrounds to ensure suitability for counseling 
services;
    (e) Conduct home visits and escort families to potential units 
selected by the families;
    (f) Assist families with transportation to facilitate their 
visiting potential units;
    (g) Assist families in discussions with landlords regarding lease 
provisions and suitability of the unit during the housing search;
    (h) Monitor activities for compliance with fair housing laws and 
the requirement that owners of tax credit developments not discriminate 
against families in the voucher program, and refer complaints of 
discrimination to the local HUD Field Office or to State and local 
agencies participating in the Fair Housing Assistance Program.
    (i) Reduce any community tension that may exist, as regards the 
voucher program, by conducting sensitivity training with local police 
departments, schools, community groups, and businesses to educate them 
about the voucher program, assisted families and fair housing; 
establish a mentoring program where current voucher program 
participants provide support to new participants; and provide conflict 
resolution services, if needed.
    (4) Supportive Services Responsibilities. Either directly or 
indirectly through their nonprofit partners, PHAs funded under this 
NOFA must provide supportive services to help the voucher program 
participants receiving housing counseling to comply with private owner 
rental lease requirements, housing quality standards (HQS) and other 
family obligations under the voucher program, remain stably housed, and 
successfully adjust to their new communities. Supportive services may 
be needed both before a family moves into a new neighborhood (such as 
to ensure a smooth transition and to educate the family about the 
services available in a community), and after the family has moved in. 
Families that move to new communities may need help finding child care, 
securing transportation and other services. The following are examples 
of supportive services that may be funded under this NOFA:
    (a) Provide counseling and referrals to families on opportunities 
for education, training, child care, medical care, transportation and 
employment in lower-poverty neighborhoods.
    (b) Refer families to organizations capable of assisting them with 
moving costs, security deposits, utility hookup fees, and utility 
deposits. (Note: Funds provided under this NOFA cannot be used to pay 
such costs, deposits or fees for families.)
    (c) Counsel families on household cleaning/maintenance skills and 
knowledge sufficient for a family to remain in compliance with its 
responsibilities as relates to the housing choice voucher program's 
housing quality standards (HQS), and the family's responsibilities 
under its lease with a private owner for the care and use of the unit.
    (d) Counsel families on budgeting skills directed at the most 
efficient use of limited resources in meeting family expenses, with an 
emphasis on the family's responsibility to pay its portion of the rent 
to the private owner in a timely manner.
    (5) Program Record Keeping/Reporting Requirements.
    (a) Record Keeping. In addition to the normal record keeping 
required for the housing choice voucher program, separate records must 
be maintained by the PHA and the nonprofit organization for the HSAP. 
The separate records must demonstrate that funding provided under this 
NOFA was used to augment, rather than replace, the counseling the PHA 
is already required to provide under current rules, and that the 
supportive services funded under this NOFA are in addition to those 
services the PHA is already providing itself or through outside 
sources. These records must also be sufficient to capture the 
information necessary to produce the semiannual reports required under 
this NOFA's section III(B)(5)(b), Reporting to HUD.
    (b) Reporting to HUD. An original and a copy of the following 
report shall be submitted on a semiannual basis to the Department of 
Housing and Urban Development, Funding and Financial Management 
Division, Room 4216, 451 Seventh Street, SW, Washington, DC 20410. 
Reporting shall commence with the period ending 12/31/01 and shall be 
submitted to HUD not later than 30 days thereafter. Subsequent reports 
shall cover a six month period and shall be submitted not later than 30 
days following the end of each six month reporting period. Reporting 
shall reflect cumulative progress made to date since the beginning of 
the awardee's HSAP, as well as progress exclusive to the last six month 
period ended. The report must address the following in this regard 
pertinent to the PHA's and/or nonprofit's provision to eligible 
families of housing counseling and related supportive services funded 
under this NOFA:
    (i) The number of families counseled/provided supportive services.
    (ii) The number of families counseled/provided supportive services 
that were successful in leasing a unit.
    (iii) The number of families counseled/provided supportive services 
that rented a unit in a lower-poverty neighborhood.

[[Page 36408]]

    (iv) The number of families counseled/provided supportive services 
that leased a unit in a lower-poverty neighborhood and were still 
leasing a unit in a lower-poverty neighborhood 13 months later.
    (v) The average cost per family (based upon total HSAP 
expenditures) of (1) providing housing counseling, (2) supportive 
services, and (3) cumulatively for housing counseling and supportive 
services.
    (vi) The total number of owner outreach contacts by the PHA/
nonprofit vs total number of families counseled/receiving supportive 
services that leased units from these owners, with a separate subtotal 
for those families leasing units from these owners in lower-poverty 
areas.

IV. Application Selection Process for HSAP Funding

(A) Selection Criteria and Rating and Ranking

    The Office of Public and Indian Housing'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 
HSAP. The Grants Management Center, with assistance from the Office of 
Fair Housing and Equal Opportunity and the Center for Faith-Based and 
Community Initiatives, 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 60 points of the 100 points 
available under the selection criteria in order to be approvable for 
funding. Each criterion with no sub-criteria, and sub-criteria under a 
criterion (some criteria have sub-criteria with individually assigned 
points) will be evaluated on a pass or fail basis, with either the 
applicant receiving the full number of points or no points; e.g., 15 or 
0. The selection criteria are as follows:
    (1) Selection Criterion 1: Capacity of the Applicant and Relevant 
Organizational Experience (30 points).
    Selection Criterion 1 addresses the extent to which the applicant 
(including the co-applicant nonprofit organization(s)) has the 
organizational resources necessary to implement the applicant's 
proposed HSAP activities in a timely manner. In determining the rating 
under this criterion, HUD will consider the extent to which the 
application demonstrates:
    (a) (15 points) The knowledge and experience of the PHA and 
nonprofit organization's staff in planning and organizing the type of 
housing counseling and supportive services (eligible to be funded under 
this NOFA) addressed in the applicant's Memorandum of Understanding 
(MOU). Experience will be assessed in terms of its relevance to 
undertake eligible HSAP activities (see section III(B)(3) and (4) of 
this NOFA). The applicant and co-applicant are expected to have 
sufficient personnel to deliver the proposed housing counseling and 
supportive services in a timely and effective manner. Included in the 
application must be an identification of the professional backgrounds 
and experience of specific individuals to be involved in providing the 
housing counseling services and related supportive services addressed 
in the applicant's MOU.
    (b) (15 points) Demonstrated success in attaining measurable 
progress in the implementation of recent activities similar in scope 
and complexity to the housing counseling and related supportive 
services planned to be undertaken with funding under this NOFA as 
reflected in the applicant's MOU.
    (2) Selection Criterion 2: Memorandum of Understanding (MOU) (50 
points).
    Selection Criterion 2 addresses the quality and effectiveness 
represented within the applicant's MOU for providing the housing 
counseling and supportive services eligible for funding under this 
NOFA. The application for funding under this NOFA must include an MOU 
executed by authorized officials of the PHA and the nonprofit 
organization(s) with which the PHA is partnering. The MOU must provide 
a detailed description of the housing counseling and supportive 
services (see section III(B)(3) and (4)) to be provided and the roles 
and responsibilities of the PHA and the nonprofit organization(s) (see 
section III(B)(2)) in providing the housing counseling and supportive 
services. The MOU must also include realistic but aggressive 
performance targets related to the provision of housing counseling and 
supportive services to families. This is addressed more fully under 
section IV(A)(2)(a) below of this NOFA.
    The MOU must indicate that its provisions are contingent upon the 
PHA's being funded under this NOFA, and that the PHA will be 
responsible for monitoring the activities of the nonprofit(s) in 
connection with its satisfactory delivery of the housing counseling 
and/or supportive services agreed upon in the MOU. The MOU must also 
include a description of the priority order in which families will 
receive services (see section III(B)(1)(a)), as well as a management 
and staffing plan and budget.
    (a) (15 points) Description of the housing counseling and 
supportive services to be provided (see section III(B)(3) and (4)). In 
addition, the MOU must also address performance targets related to its 
provision of housing counseling and supportive services. These 
performance targets must address anticipated outcomes that are 
realistic but aggressive for the following performance categories:
    (i) The number of families to be counseled/provided supportive 
services.
    (ii) The number of families counseled/provided supportive services 
that lease a unit with their voucher.
    (iii) The number of families counseled/provided supportive services 
under section (ii) immediately above that lease a unit in a lower-
poverty neighborhood.
    (iv) The number of families counseled/provided supportive services 
that lease in a lower-poverty neighborhood and are still leasing a unit 
in a lower-poverty neighborhood 13 months later.
    (b) (15 points) Description of the roles and responsibilities of 
the PHA and nonprofit organization(s) in providing housing counseling 
and supportive services (see section III(B)(2)), and the specific 
activities to be performed in providing these services, including but 
not limited to:
    (i) Screening interviews with families;
    (ii) Setting up a family file with intake information and 
counseling plan;
    (iii) Having the family sign an agreement accepting the counseling 
plan and making a commitment to attend the required counseling 
sessions.
    (c) (5 points) Description of the priority order of families to 
receive housing counseling and supportive services consistent with 
section III(B)(1)(a) of this NOFA which establishes the first order of 
priorities and allows for the establishment of preferences within the 
order of priorities and to add to the list of priorities. This 
description must also include an estimate of the number of housing 
choice voucher holders, as well as current housing choice voucher and 
certificate participants (current renters), that are anticipated to be 
eligible for and receive housing counseling and supportive services 
over the course of the three year implementation period of HSAP.
    (d) (15 points) Management and Staffing Plan and Budget. A

[[Page 36409]]

management and staffing plan and budget must be provided indicating the 
major activities to be performed in providing housing counseling and 
supportive services, the position titles and number of staff to be 
devoted to providing these services, the number of staff hours to be 
expended on each activity, and the budgeted costs associated with each 
of the major activities over the three year period to be covered by the 
MOU. Included within the major activities should be staff time and 
associated costs connected with the record keeping and reporting 
requirements of section III(B)(5) of this NOFA. The budget should also 
reflect the anticipated number of families who will receive housing 
counseling and supportive services and the average cost per family for 
same. HUD anticipates that the average cost per family will be in the 
range of $1,000 to $1,500. This average cost range is based upon HUD's 
past experience with housing counseling and supportive services costs, 
but should not be considered a mandatory minimum or maximum limitation 
on costs per family. The average cost range was derived by taking total 
program costs and dividing them by the number of families receiving 
housing counseling and supportive services.
    It is anticipated that immediately following HUD's announcement of 
awards under this NOFA that some PHAs and nonprofit organizations will 
require as much as--but should not exceed--six months in which to hire 
any additional necessary staff, complete nonprofit familiarization with 
program requirements under the housing choice voucher program, enter 
into a formal contract with the nonprofit organization(s) for the 
provision of certain services covered by the MOU, and to otherwise 
prepare themselves to initiate HSAP services. The budget should reflect 
any such six month or shorter period of preparation, unless all parties 
are prepared to immediately begin the provision of HSAP services. Any 
such six month or shorter preparatory period will be considered to be 
part of the maximum three year implementation period commencing on the 
date of award of HSAP funding.
    (3) Selection Criterion 3: Leveraging Resources (10 points).
    Selection Criterion 3 addresses the applicant's ability to secure 
private and public resources which can be combined with funding 
received under the HSAP to support and enhance the housing counseling 
and supportive services to be funded through the HSAP. Evaluation of 
this criterion will consider the extent to which the applicant has 
obtained additional resources, or partnered with other entities (State, 
Federal or local government, nonprofit organizations, for-profit 
private organizations, etc.) to secure additional resources, to 
increase the effectiveness of the housing counseling and supportive 
services included within the applicant's MOU. Evidence of such 
partnerships must be supported by letters of firm commitment or other 
documentation of agreements. Such letters or agreements should include 
the organization's name, proposed level of commitment, responsibilities 
as relates to the HSAP, and be signed by an official of the 
organization legally authorized to make commitments on behalf of the 
organization.
    (4) Selection Criterion 4: Sustainability (10 points).
    Selection Criterion 4 requires the applicant to demonstrate how its 
HSAP will achieve an impact that will be sustained in whole or in part 
beyond the three year implementation period funded under this NOFA. 
Credit will be given to applications that demonstrate how the HSAP will 
achieve an impact that lasts beyond the three year effort funded under 
this NOFA. Among several ways to achieve a lasting impact include, but 
are not limited to: (a) The building of capacity to provide housing 
counseling and related supportive services among entities that commit 
to continuing this work after the funding is exhausted; (b) the 
development of a curriculum to educate housing choice voucher 
participants about the benefits of living in particular lower-poverty 
neighborhoods; (c) the recruitment of a substantial number of landlords 
in lower-poverty neighborhoods; (d) the establishment of a revolving 
fund for security deposits, utility deposits and moving expenses to 
help families move to lower-poverty neighborhoods, funded through 
sources other than this NOFA; and (e) the creation of a landlord 
outreach program to include materials on the housing choice voucher 
program, HSAP, how to be a responsible landlord, and fair housing.
    (B) Funding FY 2001 Applications. After the Grants Management 
Center has screened PHA applications and disapproved any applications 
unacceptable for further processing (see section VI(A) and (B) of this 
NOFA), the Grants Management Center, with the assistance of the Office 
of Fair Housing and Equal Opportunity and the Center for Faith-Based 
and Community Initiatives, will review and rate all approvable 
applications, utilizing the Selection Criteria and the point 
assignments listed in this NOFA. Applications will be ranked for 
approval/funding based upon highest to lowest score in three PHA size 
categories. Only those applications scoring not less than 60 points 
under the Selection Criteria will be considered for funding. A minimal 
number of awards will be made (contingent upon a sufficient number of 
approvable applications in each PHA size category), as follows:
    (1) Six awards--PHAs with 1250 or more vouchers/certificates. 
Maximum award of $1,000,000 for each PHA.
    (2) Four awards--PHAs with 500 to 1249 vouchers/certificates. 
Maximum award of $600,000 for each PHA.
    (3) Two awards--PHAs with less than 500 vouchers/certificates. 
Maximum award of $150,000 for each PHA.
    Thereafter, remaining funding will be awarded to the next highest 
ranked application, regardless of the PHA's voucher/certificate program 
size, until all funding has been exhausted. In the event two or more 
applications have the same score at this point in the funding selection 
process and insufficient funds remain to fund all such applications, a 
lottery shall be held to select the application(s) to be funded.

V. Application Submission Requirements

    (A) Form HUD-52515. Funding Application, form HUD-52515, must be 
filled out as indicated below and submitted. Complete the first third 
of page 1, but sections A, B, C and D and on this first page, and 
section E at the top of the second page of this four page form should 
be left blank, as the funding being requested is for housing choice 
voucher administrative fee funding only and not for housing choice 
vouchers. PHAs are requested to enter their housing authority code 
number (for example, CT002), their telephone number, electronic mailing 
address, and facsimile transmission 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 F should not be responded to as this section 
pertains only to PHAs that do not currently have a housing choice 
certificate or voucher program (in order to be eligible to apply for 
the funding available under this NOFA the applicant must already be 
operating a housing choice voucher or certificate program). This form 
includes all the necessary certifications for Fair Housing, Drug-Free 
Workplace and Lobbying Activities. 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

[[Page 36410]]

``handbooks/forms,'' click on ``forms,'' click on ``HUD-5'' and then 
click on ``HUD-52515.'' The form must be signed and dated.
    (B) Nonprofit Organization Documentation. The PHA must submit a 
letter from the nonprofit organization(s) with which it is entering 
into an MOU to provide all or some of the housing counseling and 
supportive services funded under this NOFA. The letter must provide 
information on the nonprofit organization(s) documenting its legal 
status as a nonprofit and its legal authority to operate throughout the 
geographic area comprising the PHA's legally authorized area of 
operation. Documentation of legal status/authority may include 
paperwork verifying the U.S. Internal Revenue Service's recognition of 
the organization as a nonprofit, a legal opinion from an attorney 
attesting to the nonprofit organization's legal right to deliver 
housing counseling and supportive services throughout the area 
comprising the PHA's legally authorized area of operation, or other 
similar documentation.
    (C) Selection Criteria Information. The application must include 
information addressing the four selection criteria in section IV(A) of 
this NOFA, sufficient for the applicant to receive at least 60 points 
out of the maximum of 100 points available, in order for the 
application to be deemed approvable. Applications scoring less than 60 
points will be unapprovable and therefore ineligible for funding. Since 
applications will be selected for funding on the basis of highest to 
lowest score (see section IV(B) of this NOFA), applicants would be 
well-advised to thoroughly address all four rating criteria in order to 
potentially maximize the points their application may receive and 
thereby improve the chances of their application being funded.
    (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) 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 (1) address those impediments in a reasonable fashion in 
view of the resources available; and (2) work with local jurisdictions 
to implement any of the jurisdiction's initiatives to affirmatively 
further fair housing; and the maintenance of records reflecting these 
analyses and actions;
    (b) Remedy discrimination in housing; or
    (c) Promote fair housing rights and fair housing choice.
    (E) Moving to Work (MTW) PHA Information and Certification. See 
section VI(B)(2)(c) regarding the information to be submitted by an 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 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, with assistance from the Office of Fair 
Housing and Equal Opportunity and the Center for Faith-Based and 
Community Initiatives, will initially screen all applications and 
notify applicants of technical deficiencies by letter, facsimile 
transmission, or electronic mail. (See section V(A) of this NOFA 
regarding the information to be provided by applicants regarding their 
electronic mail address, facsimile transmission telephone number, etc. 
at the top of form HUD-52515.)
    With respect to correction of deficient applications, HUD may not, 
after the application due date and consistent with HUD's regulations at 
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 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 that fall into any of the following categories 
will not be processed:
    (a) Applications 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 that are not closed or on which satisfactory progress in 
resolving the findings is not being made; or program compliance 
problems 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(D) of this NOFA and the PHA makes 
application with another agency or contractor that will administer the 
HSAP on behalf of the PHA. Major program management findings or program 
compliance problems are those that would cast doubt on the capacity of 
the PHA to effectively administer the HSAP funding being made available 
under this NOFA.
    (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, it may still pass category (c) if it submits

[[Page 36411]]

information (following the format of Attachment 1 of this NOFA) 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 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 that have been 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 HUD Home Page site on the Internet's world wide 
web (http://www.hud.gov/cio/grants/fundsavail.html) under the Housing 
Search Assistance Program (HSAP) NOFA. Any eligible applicant not 
listed must either submit information (following the format of 
Attachment 1) 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 
Attachment 1) as part of its application supportive of its contention 
that it should have been included among those PHAs HUD listed as having 
achieved either a 95 percent lease-up rate or 95 percent funding 
utilization rate for fiscal years ending in 1999.
    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 an 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.
    (d) The applicant is involved in litigation and HUD determines that 
the litigation may seriously impede the ability of the PHA to provide 
the housing counseling/supportive services under this NOFA, or to 
otherwise work with the nonprofit in connection with the nonprofit's 
provision of the housing counseling and related supportive services.
    (e) An application that does not comply with the requirements of 24 
CFR 982.102 and this NOFA after the expiration of the 14-calendar day 
technical deficiency correction period will be rejected from 
processing.
    (f) The 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 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 by 24 CFR Part 908 and Notices PIH 98-30, 99-2 and 2000-13 
for the period ending December 1999. In the event a PHA achieved less 
than an 85 percent rate of reporting under MTCS for this period, the 
PHA will still be considered to have passed the threshold if the PHA: 
(1) Subsequently achieved a minimum reporting rate of not less than 85 
percent for its housing choice voucher and certificate resident records 
as of the December 2000 reporting period; or (2) has requested 
forbearance from HUD under the applicable procedures in Notice PIH 
2000-13 for the semi-annual assessment period ending December 2000, 
contingent upon HUD approval of the forbearance request.

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

    This NOFA does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern or regulate, real property 
acquisition, disposition, leasing (other than tenant-based rental 
assistance), rehabilitation, alteration, demolition, or new 
construction, or establish, revise or provide for standards for 
construction or construction materials, manufactured housing, or 
occupancy. Accordingly, under 24 CFR 50.19(c)(1), this NOFA is 
categorically excluded from environmental review under the National 
Environmental Policy Act (NEPA) of 1969 (42 U.S.C. Section 4321). In 
accordance with 24 CFR 50.19(b)(12) of the HUD regulations, supportive 
services such as counseling services under this program are 
categorically excluded from environmental review under NEPA and are not 
subject to environmental review under the related laws and authorities.

(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

[[Page 36412]]

Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15. In addition, HUD will include the 
recipients of assistance pursuant to this NOFA in its Federal Register 
notice of all recipients of HUD assistance awarded on a competitive 
basis.
    (2) Disclosures. HUD will make available to the public for 5 years 
all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this NOFA. Update reports (also Form 2880) will be made 
available along with the applicant disclosure reports, but in no case 
for a period less than 3 years. All reports--both applicant disclosures 
and updates--will be made available in accordance with the Freedom of 
Information Act (5 U.S.C. 552) and HUD's implementing regulations at 24 
CFR part 15.

(F) Section 103 HUD Reform Act

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

(G) Prohibition Against Lobbying Activities

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

    Dated: June 26, 2001.
Paula O. Blunt,
Acting General Deputy 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 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

[[Page 36413]]

 
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 contract 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, as recorded in 
HUDCAPS, for special purposes such as litigation, relocation/
replacement, Welfare to Work, and new units awarded to the PHA 
during the last twelve months 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.....................................     11/01/98-10/31/99      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      ....................      746
   equals...............................
Lease-up Rate...........................  ....................    97.4%
------------------------------------------------------------------------

[FR Doc. 01-17274 Filed 7-10-01; 8:45 am]
BILLING CODE 4210-33-P