[Federal Register Volume 67, Number 36 (Friday, February 22, 2002)]
[Notices]
[Pages 8428-8440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4215]



[[Page 8427]]

-----------------------------------------------------------------------

Part V





Department of Housing and Urban Development





-----------------------------------------------------------------------



Notice of Funding Availability (NOFA); Fair Share Allocation of 
Incremental Voucher Funding, Fiscal Year 2002; Notice

  Federal Register / Vol. 67, No. 36 / Friday, February 22, 2002 / 
Notices  

[[Page 8428]]


-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4726-N-01]


Notice of Funding Availability (NOFA); Fair Share Allocation of 
Incremental Voucher Funding, Fiscal Year 2002

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

ACTION: Notice of funding availability.

-----------------------------------------------------------------------

SUMMARY: Purpose of the NOFA. The purpose of this NOFA is to invite 
public housing agencies (PHAs) to apply for vouchers on a fair share 
allocation basis under the Housing Choice Voucher Program. The vouchers 
are for issuance to families on a PHA's housing choice voucher waiting 
list to enable these families to access decent, safe, and affordable 
housing of their choice on the private rental market.
    Available Funds. Approximately $103,979,000 in one-year budget 
authority for approximately 18,000 housing choice vouchers. Prior to 
the funding of any new applications under this NOFA for FY 2002, 
$8,881,265 of this budget authority will be used to fund 1,540 vouchers 
for 13 PHAs that were erroneously omitted from the selection process 
under the FY 2001 Fair Share NOFA. See section II(C)(3) of this NOFA 
regarding the specific PHAs, dollar amounts and corresponding number of 
vouchers that each of the 13 PHAs will receive. This will leave 
$95,097,735 in one-year budget authority available for the funding of 
approximately 16,460 vouchers for applications submitted in FY 2002 
under this NOFA. Also, see the note at the bottom of Appendix A of this 
NOFA which fully addresses deductions from funding for allocation areas 
in order to fund these 13 previously unfunded PHAs.
    Eligible Applicants. Public housing agencies (PHAs). PHAs that fall 
into any of the categories in section VII(B)(2) of this NOFA are 
ineligible to have an application funded under this NOFA. Indian 
Housing Authorities (IHA), Indian tribes and their tribally designated 
housing entities are not eligible applicants. The Native American 
Housing Assistance and Self-Determination Act of 1996 does not allow 
HUD to enter into new housing choice voucher annual contributions 
contracts (ACC) with IHAs after September 30, 1997.
    Application Due Date. March 25, 2002.
    Match. None.

Additional Information

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

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

    Application Due Date. Your completed application (an original and 
one copy) is due on or before March 25, 2002, 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 make early submission of their materials to 
avoid any risk of loss of eligibility brought about by unanticipated 
delays or other delivery-related problems. HUD will not accept, at any 
time during the NOFA competition, application materials sent via 
facsimile (FAX) transmission.
    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 (GMC) is the official place of receipt 
for all applications in response to this NOFA. Applications not 
submitted to the GMC will not be considered. A copy of the 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.
    New Security Procedures. In response to the terrorist attacks in 
September 2001, HUD has implemented new security procedures that impact 
on application submission procedures. Please read the following 
instructions carefully and completely. HUD will not accept hand 
delivered applications. Applications may be mailed using the United 
States Postal Service (USPS) or may be shipped via the following 
delivery services: United Parcel Service (UPS), FedEx, DHL, or Falcon 
Carrier. No other delivery services are permitted into HUD Headquarters 
without escort. You must, therefore, use one of the four carriers 
listed above.
    Mailed Applications. Your application will be considered timely 
filed if postmarked on or before 12:00 midnight on the application due 
date and received by the GMC within fifteen (15) days of the 
application due date. All applicants must obtain and save a Certificate 
of Mailing showing the date when you submitted your application to the 
USPS. The Certificate of Mailing will be your documentary evidence that 
your application was timely filed.
    Applications Sent By Overnight/Express Mail Delivery. If you 
application is sent by overnight delivery or express mail, your 
application will be timely filed if it is received by the GMC before or 
on the application due date, or when you submit documentary evidence 
that your application was placed in transit with the overnight 
delivery/express mail service by no later than the application due 
date. Due to new security measures, you must use one of four carrier 
services that do business with HUD Headquarters regularly. These 
services are UPS, DHL, FedEx, and Falcon Carrier. Delivery by these 
services must be made during HUD's Headquarters business hours, between 
8:30 AM and 5:30 PM, Eastern Time, Monday to Friday. If these companies 
do not service your area, you should submit your application via the 
SUPS.
    Application Kit Not Required. An application kit is not available 
and is not necessary for submitting an application for funding under 
this NOFA. This NOFA contains all of the information necessary for the 
submission of an application for voucher funding in connection with 
this NOFA.
    For Further Information and Technical Assistance. Prior to the 
application due date, you may contact George C. Hendrickson, Housing 
Program Specialist, Room 4216, Office of Public and Assisted Housing 
Delivery, Department of Housing and Urban Development, Room 4216, 451 
Seventh Street, SW., Washington, DC 20410; telephone (202) 708-1872, 
ext. 4064. Subsequent to application submission, you may contact the 
Grants Management Center at (202) 358-0221. (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).

[[Page 8429]]

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

(A) Authority

    Authority for the approximately $103,979,000 in one-year budget 
authority for housing choice vouchers for low-income families is found 
in the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, FY 2002 (Pub. 
L. 107-73, approved November 26, 2001), referred to as the FY 2002 HUD 
Appropriations Act. The allocation of housing assistance budget 
authority for housing choice vouchers, by allocation area based on fair 
share factors, is pursuant to the provisions of 24 CFR part 791, 
subpart D, implementing section 213(d) of the Housing and Community 
Development Act of 1974, as amended.

(B) Purpose

    The purpose of the housing choice voucher funding being made 
available under this NOFA is to provide housing assistance to very low-
income families to enable them to access decent, safe, and affordable 
housing of their choice on the private market.

(C) Fair Share Allocation Amount

    This NOFA announces the availability of approximately $103,979,000 
in one-year budget authority for a fair share formula allocation that 
will provide housing assistance to approximately 18,000 very low-income 
families. From this funding, $8,881,265 for 1,540 vouchers for 13 PHAs 
will first be used to correct a HUD error resulting in the funding 
selection omission of these 13 PHAs under the FY 2001 Fair Share NOFA. 
(See section II(C)(3), Unfunded Corrections.)
    (1) Fair Share Allocation For Each Allocation Area. Appendix A of 
this NOFA lists the allocation of housing assistance budget authority 
for vouchers for each allocation area, based on fair share factors. 
Appendix A also provides an estimate of the total number of vouchers 
that could be funded from the housing assistance available for each 
allocation area based on the weighted local average costs of voucher 
assistance for a two-bedroom unit. The actual number of units assisted 
within each allocation area will vary from the estimates prepared by 
Headquarters since the actual costs of voucher assistance for each PHA 
vary from the average.
    (2) Potential additional funding. If additional voucher funding 
becomes available for fair share use during FY 2002, HUD plans to 
distribute any additional funding to allocation areas using the same 
percentage distribution as reflected in Appendix A to this NOFA. Any 
additional funding will be used under the competitive requirements of 
this NOFA to fund PHA applications which were approvable but not 
funded, or approved and funded at less than 100 percent of the 
requested amount for which the PHA was eligible under this NOFA.
    (3) Unfunded Corrections. Prior to the issuance of this NOFA, HUD 
determined that 13 PHA applicants under the FY 2001 Fair Share NOFA 
were not funded due to an error on the part of HUD. Funding in the 
amount of $8,881,265 will be subtracted from the Fair Share funding 
available under this NOFA to fund these 13 PHAs as follows: County of 
Merced, California Housing Authority--$2,385,412 for 532 vouchers; 
Sonoma County, California Housing Authority--$1,847,490 for 260 
vouchers; Fort Collins, Colorado Housing Authority--$524,170 for 65 
vouchers; Plant City, Florida Housing Authority--$71,195 for 15 
vouchers; City of Stuart, Florida Housing Authority--$71,156 for 15 
vouchers; County of DeKalb, Georgia Housing Authority--$1,303,604 for 
197 vouchers; Scott, Minnesota Housing Authority--$285,765 for 48 
vouchers; Camden, New Jersey Housing Authority--$1,377,456 for 200 
vouchers; Village of Kiryas Joel, New York Housing Authority--$415,614 
for 50 vouchers; Fargo, North Dakota Housing and Redevelopment Agency--
$165,079 for 44 vouchers; Beaver City, Utah Housing Authority--$27,836 
for 4 vouchers; Vermont State Housing Authority--$194,492 for 45 
vouchers; and Winnebago County, Wisconsin Housing Authority--$211,996 
for 65 vouchers.

(D) Voucher Funding

    (1) Determination of Funding Amount for the PHA's Requested Number 
of Vouchers. HUD will determine the amount of funding that a PHA will 
be awarded under this NOFA based upon an actual annual per unit cost, 
as provided by the Office of Public and Indian Housing's Section 8 
Finance Division {except for Moving to Work (MTW) agencies the per unit 
cost will be calculated in accordance with the agency's MTW Agreement, 
using the following two step process (as may be modified based upon a 
percentage of annual per unit cost if necessary to produce the 
approximately 18,000 vouchers provided for under this NOFA):
    (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 monthly per unit cost by 12 (months) to 
obtain an annual per unit cost.

(E) Eligible Applicants

    Any PHA currently administering the Housing Choice Voucher Program 
under an annual contributions contract (ACC) with HUD for at least one 
full year prior to the application deadline date shall be eligible to 
apply for funding under this NOFA. Any such PHA; however, falling into 
one or more of the categories in section VII(B)(2) of this NOFA, is 
ineligible to have an application funded under this NOFA.
    A PHA may submit only one application under this NOFA. This one 
application per PHA limit applies regardless of whether or not 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 an 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 V(A) of this NOFA; i.e., no more 
than the number of vouchers the same PHA would be eligible to apply for 
if it only had one PHA code number.
    A contract administrator which does not have an annual 
contributions contract (ACC) with HUD for housing choice vouchers, but 
which constitutes a PHA under 24 CFR 791.102 by reason of its 
administering housing choice tenant-based assistance on behalf of 
another PHA on October 21, 1998, 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.
    In some cases a PHA currently administering the housing choice 
voucher program has, at the time of

[[Page 8430]]

publication of this NOFA, been designated by HUD as a troubled PHA 
under the Section 8 Management Assessment Program (SEMAP), or has major 
program management findings from Inspector General audits that are 
unresolved. HUD will not accept an application from such a PHA as a 
contract administrator if, on the application due date, the troubled 
PHA designation has not been removed by HUD, or the findings are not 
resolved. If the PHA wants to apply for funding under this NOFA, the 
PHA must submit an application that designates another contractor that 
is acceptable to HUD. The PHA's application must include an agreement 
by the other contractor to administer the new funding increment on 
behalf of the PHA, and (in the instance of a PHA with unresolved major 
program management findings) a statement that outlines the steps the 
PHA is taking to resolve the program findings.
    Immediately after the publication of this NOFA, the local HUD Field 
Office will notify, in writing, those PHAs that have been designated by 
HUD as troubled under SEMAP, and those PHAs with unresolved major 
program management findings that are not eligible to apply without such 
an agreement. Concurrently, the local HUD Field Office will provide a 
copy of each such written notification to the Director of the GMC. The 
PHA may appeal the decision, in writing, if HUD has mistakenly 
classified the PHA as having unresolved major program management 
findings. The PHA may not appeal its designation as a troubled PHA 
under SEMAP. Any appeal with respect to unresolved major program 
management findings must be accompanied by conclusive evidence of HUD's 
error (i.e., documentation showing that the finding has been cleared) 
and must be received prior to the application deadline. The appeal 
should be submitted to the local HUD Field Office where a final 
determination shall be made. Concurrently, the local HUD Field Office 
shall provide the GMC with a copy of the PHA's written appeal and the 
Field Office's written response to the appeal. Major program management 
findings 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.

(F) Eligible Participants

    Information on those families and individuals eligible to receive a 
voucher is located at the following HUD Web site: www.hud.gov/offices/pih/programs/hcv.

III. General Program Requirements

(A) General Program Requirements

    (1) Compliance With Fair Housing and Civil Rights Laws. All 
applicants must comply with all fair housing and civil rights laws, 
statutes, regulations, and executive orders as enumerated in 24 CFR 
5.105(a). If an applicant: (a) Has been charged with a systemic 
violation of the Fair Housing Act by the Secretary alleging ongoing 
discrimination; (b) is the defendant in a Fair Housing Act lawsuit 
filed by the Department of Justice alleging an ongoing pattern or 
practice of discrimination; or (c) has received a letter of 
noncompliance findings under Title VI of the Civil Rights Act of 1964, 
section 504 of the Rehabilitation Act of 1973, or section 109 of the 
Housing and Community Development Act of 1974, the applicant's 
application will not be evaluated under this NOFA if, prior to the 
application deadline, the charge, lawsuit, or letter of findings has 
not been resolved to the satisfaction of the Department. HUD's decision 
regarding whether a charge, lawsuit, or letter of findings has been 
satisfactorily resolved will be based upon whether appropriate actions 
have been taken to address allegations of ongoing discrimination in the 
policies or practices involved in the charge, lawsuit, or letter of 
findings.
    (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); in a reasonable fashion in view of the 
resources available, and the work to be done in connection with the 
local jurisdiction's initiatives to affirmatively further fair housing 
that requires the PHA's involvement, as well as maintaining records 
reflecting these analyses and actions; develop a plan to (i) address 
those impediments in a reasonable fashion in view of the resources 
available; (ii) work with local jurisdictions to implement any of the 
jurisdiction's initiatives to affirmatively further fair housing; and 
(iii) 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 NOFA 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.
    (5) Increasing the Participation of Faith-Based and Community-Based 
Organizations in HUD Program Implementation. HUD believes that 
grassroots organizations; e.g., civic organizations, congregations and 
other community-based and faith-based organizations, have not been 
effectively utilized. These grassroots organizations have a strong 
history of providing vital community services such as assisting the 
homeless and preventing homelessness; counseling individuals and 
families on fair housing rights; providing elderly housing 
opportunities; developing first time homeownership programs; increasing 
homeownership and rental housing opportunities; developing affordable 
and accessible housing in neighborhoods across the country; and 
creating economic development programs. The goal of this policy 
priority is to make HUD's housing choice voucher program more 
effective, efficient, and accessible by expanding opportunities for 
faith-based and community-based organizations to participate in 
developing solutions for their own neighborhoods. PHAs are encouraged 
to coordinate with and otherwise involve faith-based and other 
community-based organizations in those activities under the housing 
choice voucher program where their services, expertise and knowledge 
may be most effective.

[[Page 8431]]

    (6) Conducting Business In Accordance With Core Values and Ethical 
Standards. To reflect core values, all applicants shall develop and 
maintain a written code of conduct in the PHA administrative plan that 
(1) requires compliance with the conflict of interest requirements of 
the Housing Choice Voucher Program at 24 CFR 982.161, and (2) prohibits 
the solicitation or acceptance of gifts or gratuities, in excess of a 
nominal value, by any officer or employee of the PHA, or any 
contractor, subcontractor or agent of the PHA. The PHA's administrative 
plan shall state PHA policies concerning PHA administrative and 
disciplinary remedies for violation of the PHA code of conduct. The PHA 
should inform all officers, employees and agents of its organization of 
the PHA's code of conduct.

(B) PHA Responsibilities and Housing Assistance Requirements

    (1) Housing Choice Voucher Regulations. PHAs must administer the 
housing choice vouchers received under this NOFA in accordance with HUD 
regulations at 24 CFR part 982 governing the Housing Choice Voucher 
Program.
    (2) Housing Choice Voucher Program Admission Requirements. Housing 
choice voucher assistance must be provided to eligible applicants in 
conformity with regulations and requirements governing the Housing 
Choice Voucher Program and the PHA's administrative plan.
    (3) Turnover. When a voucher under this NOFA becomes available for 
reissue (e.g., the family initially selected for the program drops out 
of the program or is unsuccessful in the search for a unit), the 
voucher may be used only for the next eligible family on the PHA's 
housing choice voucher waiting list.
    (4) Vouchers for Disabled Families. In those instances where the 
PHA indicated in its application (in connection with Selection 
Criterion 4 and/or Selection Criterion 5 of this NOFA) that it would 
use a specified percentage of its vouchers awarded under the NOFA 
solely for disabled families, that specified percentage of vouchers 
must be used for disabled families for not less than one year from the 
date the rental assistance is placed under an annual contributions 
contract (ACC). If there is an insufficient pool of disabled families 
on the PHA's housing choice voucher waiting list, the PHA shall conduct 
outreach to encourage eligible disabled families to apply. Outreach may 
include contacting independent living centers, advocacy organizations 
for persons with disabilities, and medical, mental health, and social 
service providers for referrals of persons with disabilities who would 
benefit from housing choice voucher assistance. If the PHA's housing 
choice voucher waiting list is closed, and if the PHA has an 
insufficient number of disabled families on that waiting list to use 
all the vouchers earmarked for the disabled, the PHA should open the 
waiting list for applications from disabled families. PHAs must take 
care to keep track of the number of disabled family vouchers that have 
been awarded versus the number of such vouchers actually issued to 
disabled families.

IV. Fair Share Application Rating Process

(A) Selection Criteria

    The GMC will use the selection criteria shown below for the rating 
of applications submitted in response to this NOFA. The maximum score 
under the selection criteria for fair share funding is 100 points.
    (1) Selection Criterion 1: Housing Needs (40 points).
    (a) Description: This criterion assesses the housing need in the 
primary market area specified in the PHA's application compared with 
the housing need for the State. Housing need is defined as the number 
of very low-income renter households with severe rent burden, based on 
1990 Census data. Very low-income is defined as income at or below the 
housing choice voucher very low-income limits. Severe rent burden is 
defined as a household paying 50 percent or more of its gross income 
for rent.
    (b) Needs Data: For the purpose of this criterion, housing needs 
are based on a tabulation of 1990 Census data prepared for the 
Department by the Bureau of the Census.

    Note: Use of 1990 census data was necessary, in lieu of the use 
of 2000 census data, due to the lack of complete 2000 census data.

    Data on housing needs are available for all States, all counties 
(county equivalents), and places with populations of 10,000 or more as 
of 1990. Housing needs information will be posted at the following HUD 
Web site: www.hud.gov/offices/adm/grants/otherhud.cfm, indicating the 
proportion of each State's housing needs for primary markets.
    (c) Rating and Assessment: The number of points assigned is based 
on the percentage of the State's housing need that is within the PHA's 
primary market area. The primary market area is defined as the 
jurisdiction (or its closest equivalent in terms of areas for which 
housing needs data are available) in which the PHA is legally 
authorized to operate and where the vouchers will be issued, as 
described in its application. (See Section VI(C) of this NOFA regarding 
the description of the primary market area required to be included in 
each PHA's application.) The GMC will assign one of the following point 
totals (40 points maximum even in those instances where the percentage 
of housing need in a PHA's primary market area when multiplied times 
three points would equal a total in excess of 40 points; i.e., no PHA 
shall receive more than 40 points for housing needs):
    (1) For each percentage point of the State's housing need in the 
PHA's primary market area (rounded to the nearest percentage point) the 
PHA will receive three points.
    (2) A State or regional (multi-county) PHA will receive points 
based on the areas it serves where the vouchers will be issued; i.e., 
the sum of the housing needs for the counties and/or localities 
comprising its primary market area. For each percentage point of the 
State's housing need in the State or regional PHA's primary market area 
(rounded to the nearest percentage point), the PHA will receive three 
points.
    (3) A PHA with a primary market area that is a community with a 
population of 10,000 or less, or a PHA for which housing needs data are 
not available, will receive three points.
    (2) Selection Criterion 2: Lease-Up and Budget Authority 
Utilization (15 points).
    (a) Description: This criterion focuses on a PHA's success in 
leasing its housing choice vouchers and certificates, and using the 
budget authority associated with its vouchers and certificates. While a 
PHA must have either a lease-up or budget authority utilization rate of 
at least 97 percent under section VII(B)(2)(c) of this NOFA in order to 
have an acceptable application, Selection Criterion 2 provides for the 
award of selection points to those PHAs having either a voucher and 
certificate lease-up rate or a budget authority utilization rate of 99 
percent or higher. The lease-up and budget authority utilization 
percentages for a PHA's combined certificate and voucher program will 
be calculated by HUD based upon the methodology indicated in Appendix B 
of this NOFA, and shall cover PHA fiscal years ending September 30, 
2000; December 31, 2000; March 31, 2001; and June 30, 2001. Lease-up or 
budget authority utilization rates of a half or more of one percentage 
point will be rounded to the next highest percentage point for purposes 
of qualifying for the points available under

[[Page 8432]]

Selection Criterion 2 (for example, 98.5 percent will be rounded up to 
99 percent). PHAs that meet either the 97 percent lease-up or budget 
authority utilization threshold requirement in section VII(B)(2) of 
this NOFA, or that have a 99 percent or higher lease-up or budget 
authority utilization rate and qualify for the points available under 
Selection Criterion 2 will be listed with the Fair Share NOFA at the 
following HUD Web site: www.hud.gov/offices/adm/grants/otherhud.cfm. A 
PHA not listed may submit information with its application, following 
the methodology of Appendix B and using the format of Appendix C which 
includes a completed example and the blank form format to be filled out 
and submitted with the PHA's application, for its fiscal year ending 
September 30, 2000; December 31, 2000; March 31, 2001; June 30, 2001; 
or subsequent fiscal year not yet processed by HUD but certified by the 
PHA.
    (b) Rating and Assessment: The GMC will assign one of two point 
values as follows:
    * 15 points: The PHA has a lease-up or budget authority utilization 
rate for its combined voucher and certificate program of 99 percent.
    * 0 points: The PHA has less than a 99 percent lease-up and budget 
authority utilization rate for its combined voucher and certificate 
program.
    (3) Selection Criterion 3: Expanding Housing Opportunities (10 
points).
    (a) Description: This criterion is based upon the Section 8 
Management Assessment Program (SEMAP) performance indicator of the same 
title located at 24 CFR 985.3(g). The sole difference being that 
Selection Criterion 3 shall apply to all PHAs (not only to PHAs with 
jurisdiction in metropolitan fair market rent (FMR) areas, but also to 
PHAs with jurisdiction in non-metropolitan FMR areas). This selection 
criterion addresses whether the PHA has adopted and implemented a 
written policy to encourage participation by owners of units located 
outside areas of poverty or minority concentration; informs voucher 
holders of the full range of areas where they may lease units both 
inside and outside the PHA's jurisdiction; and supplies a list of 
landlords or other parties who are willing to lease units, including 
units outside areas of poverty or minority concentration.
    (b) Rating and Assessment: The GMC will assign one of two point 
values as follows:
    * 10 points: The PHA certifies to HUD in its application for 
funding under this NOFA that it is eligible for the points under the 
SEMAP indicator entitled ``Expanding housing opportunities'' (see 24 
CFR 985.3(g)) as of the date it is submitting its application to HUD 
for funding under this NOFA.

    Note: As indicated above, Selection Criterion 3 also includes 
PHAs with jurisdiction in non-metropolitan FMR areas. Consequently, 
such PHAs may also qualify for the 10 points available under 
Selection Criterion 3.

    * 0 points: The PHA does not certify to HUD in its application for 
funding under this NOFA that it is eligible for the points under the 
SEMAP indicator entitled ``Expanding housing opportunities'' (see 24 
CFR 985.3(g)).
    (4) Selection Criterion 4: Disabled Families (10 points).
    (a) Description: The GMC will assign 10 points to PHAs that certify 
in their application to HUD that at least 15 percent or more of the 
vouchers they are funded for under this NOFA will be used to house 
disabled families, and that there is a sufficient number of disabled 
families on the PHA's waiting list or otherwise in the community to 
utilize all such vouchers designated for the disabled. Disabled 
families are defined as follows:
    (i) Disabled Family. Disabled family means a family whose head, 
spouse, or sole member is a person with disabilities. It may include 
two or more persons with disabilities living together, or one or more 
persons with disabilities living with one or more live-in aides.
    (ii) Person with disabilities. Means a person who:
    a. Has a disability, as defined in 42 U.S.C. 423;
    b. Is determined, pursuant to HUD regulations, to have a physical, 
mental or emotional impairment that:
    1. Is expected to be of long-continued and indefinite duration;
    2. Substantially impedes his or her ability to live independently; 
and
    3. Is of such a nature that the ability to live independently could 
be improved by more suitable housing conditions; or
    4. Has a developmental disability as defined in 42 U.S.C. 6001.
    5. Does not exclude persons who have the disease of acquired 
immunodeficiency syndrome or any conditions arising from the etiologic 
agent for acquired immunodeficiency syndrome; and
    6. For purposes of qualifying for low-income housing, does not 
include a person whose disability is based solely on any drug or 
alcohol dependence.
    (b) Rating and Assessment: The GMC will assign one of two point 
values, as follows:
    * 10 points: The PHA submits a certification with its application 
certifying that it will use not less than 15 percent of the vouchers it 
is funded for by HUD under this NOFA to house disabled families, and 
that there are a sufficient number of disabled families on its waiting 
list or otherwise in the community to utilize all such vouchers 
designated for the disabled.
    * 0 points: The PHA fails to submit in its application the 
certification called for immediately above regarding its use of not 
less than 15 percent of the vouchers it is funded for by HUD under this 
NOFA to house disabled families.
    (5) Selection Criterion 5: Medicaid Home and Community Based 
Services Waivers Under Section 1915(c) of the Social Security Act (5 
points).
    (a) Description: This selection criterion is for PHAs interested in 
the provision of housing choice voucher assistance to families within 
their primary market area who are disabled and also covered under a 
waiver of Section 1915(c) of the Social Security Act. Section 1915(c) 
waivers are approved by the Health Care Financing Administration within 
the Department of Health and Human Services (HHS) for the agency within 
each State responsible for the administration of the medicaid program. 
Contacting the responsible State agency (for example, the Agency for 
Health Care Administration in the State of Florida) will assist the PHA 
in determining how many, if any, individuals are covered by a Section 
1915(c) waiver in the PHA's primary market area. These waivers allow 
medicaid-eligible individuals at risk of being placed in hospitals, 
nursing facilities or intermediate care facilities the alternative of 
being cared for in their homes and communities. These individuals are 
thereby assisted in preserving their independence and ties to family 
and friends at a cost no higher than that of institutional care.
    While a Section 1915(c) waiver may cover individuals other than 
those who are disabled, the focus of Selection Criterion 5 is on 
disabled families only. The definition of disabled families listed 
under Selection Criterion 4 will be used by PHAs for purposes of the 
issuance of vouchers to disabled families in connection with Selection 
Criterion 5; i.e., only those families that meet the definition of a 
disabled family in this NOFA are to be considered in connection with a 
PHA determining how many such disabled families are covered by a 
Section 1915(c) waiver in their primary market area and whether to try 
to qualify for the 5 points available under Selection Criterion 5.

[[Page 8433]]

    Any PHA attempting to qualify for the 5 points available under 
Selection Criterion 5 must provide a certification in its application 
to HUD for funding under this NOFA. The certification must indicate 
that not less than 3 percent of the vouchers it is awarded under this 
NOFA will be used to house eligible disabled families covered by a 
waiver under Section 1915(c) of the Social Security Act, and that 
collaborative efforts already undertaken with the responsible State 
agency have identified a sufficient number of such families within the 
PHA's primary market area, and an agreement has been reached with that 
agency for future referrals of such families.
    (b) Rating and Assessment: The GMC will assign one of two point 
values as follows:
    *5 points: The PHA provided a certification in its application for 
funding under this NOFA indicating that it will use not less than 3 
percent of the vouchers it is funded for by HUD to house voucher 
eligible, disabled families covered by a waiver under Section 1915(c) 
of the Social Security Act, and that collaborative efforts already 
undertaken with the responsible State agency have identified a 
sufficient number of such families within the PHA's primary market area 
and an agreement has been reached with that agency for future referrals 
of such families.
    *0 points: The PHA does not provide in its application for funding 
under this NOFA the certification called for immediately above.
    (c) Prohibition Against Double Counting. The number (percentage) of 
disabled families that a PHA indicates it will issue vouchers to when 
qualifying for the 5 points available under Selection Criterion 5 
cannot be used to also qualify for the 15 points available under 
Selection Criterion 4 or conversely.
    (6) Selection Criterion 6: Homeownership Option Under Housing 
Choice Voucher Program (10 points)
    (a) Description: PHAs are encouraged, consistent with 24 CFR 
982.625--982.641, to establish a homeownership component or to expand 
upon an existing component within their housing choice voucher program. 
Points will be awarded under this NOFA to PHAs that are able to submit 
specific types of documentation verifying the establishment of a 
housing choice voucher homeownership program, and homeownership 
closings.
    (b) Rating and Assessment: The GMC will assign points under 
Selection Criterion 6 as follows:
    (i) 5 points: The PHA has established a housing choice voucher 
homeownership program as evidenced by its submission with its 
application of a copy of the PHA Board resolution approving changes to 
the PHA's administrative plan for the implementation of the 
homeownership option under its housing choice voucher program.
    (ii) 5 points: The PHA qualifies for the five points under 
paragraph (i) immediately above and has had one or more closings under 
its homeownership program, as evidenced by the PHA's submission of 
documentation with its application supportive of at least one 
homeownership unit that has completed the closing process. Such 
documentation may include a copy of a fully executed deed, title, 
recapture agreement, etc.

    Note: The PHA can only qualify for the five points under this 
paragraph (ii) if it has first qualified for the five points under 
paragraph (i) immediately above.

    (iii) 0 points: The PHA fails to submit the appropriate information 
in its application documenting the establishment of a housing choice 
voucher homeownership program, and fails to provide the appropriate 
information related to the closing of a homeownership unit.
    (7) Selection Criterion 7: Family Self-Sufficiency (FSS) Slots 
Filled (10 points)
    (a) Description: PHAs are encouraged, consistent with 24 CFR 984, 
to fill the slots required under a mandatory FSS program, and to 
establish a voluntary FSS program and fill slots under that program 
where a mandatory FSS program is not required. Points will be awarded 
under this NOFA to PHAs submitting a certification with their 
application certifying that they have filled 60 percent or more of the 
required slots under a mandatory FSS program, or that have filled one 
or more slots under a voluntary FSS program. Prior to calculating the 
percentage of mandatory FSS slots filled, HUD will reduce the number of 
mandatory slots to reflect any HUD-approved exception and/or program 
graduates.
    (b) Rating and Assessment: The GMC will assign rating points under 
Selection Criterion 7 as follows (PHAs may receive a maximum of 10 
points under the Mandatory FSS Program category or 10 points under the 
Voluntary FSS Program category, but shall not receive more than a 
combined maximum total of 10 points under Selection Criterion 7):
    (i) Mandatory FSS Program (percentages rounded to the nearest whole 
percent)
    a. 10 points: 80 percent or more of the PHA's FSS slots are filled.
    b. 5 points: 60--79 percent of the PHA's FSS slots are filled.
    c. 0 points: less than 60 percent of the PHA's FSS slots are 
filled.
    (ii) Voluntary FSS Program
     a. 10 points: 25 or more of the PHA's FSS slots are filled.
    b. 5 points: 1 to 24 of the PHA's FSS slots are filled.
    c. 0 points: none of the PHA's FSS slots are filled.

V. Fair Share Application Selection Process

(A) Maximum and Minimum Funding Allowed

    The GMC may recommend for approval the maximum funding for a PHA 
under this NOFA that does not exceed the lesser of 25 percent of the 
PHA vouchers [including Moving to Work (MTW) units] reserved; i.e., the 
number of units in its adjusted baseline (see 24 CFR 982.102(d)(ii)), 
as of the due date for applications under this NOFA, or 25 percent of 
the number of vouchers available in the allocation area (see Appendix 
A). If, however, all the funds for an allocation area cannot be 
obligated under the 25 percent/25 percent policy described above, PHAs 
within the allocation area may be funded in order of highest to lowest 
score for up to 25 percent of their reserved vouchers. (See section 
VI(B) of this NOFA regarding the PHA statement required in this 
regard.) In addition to these requirements regarding the maximum number 
of vouchers a PHA may request funding for under this NOFA, a limitation 
on the minimum number of vouchers a PHA may apply for shall also apply; 
i.e., no PHA shall apply for or be funded for less than 24 vouchers. 
PHAs who do not have the need for, or who would have difficulty with 
the lease-up of this minimum number of vouchers should not submit an 
application under this NOFA.

(B) Funding Procedure

    HUD seeks to maximize, insofar as practical, the number of PHAs 
awarded funding under this NOFA. The GMC will recommend applications 
for approval in rank order (highest to lowest score) within each 
allocation area. No PHA shall be eligible to request or be funded at 
more than the maximum funding indicated under section V (A) above of 
this NOFA. The number of vouchers for which a PHA will first receive 
consideration by the GMC for funding will be based upon initially using 
the lesser of 5 percent of a PHA's reserved units (any result less than 
24

[[Page 8434]]

units will be rounded up to the minimum of 24 units), or 25 percent of 
the vouchers available for the allocation area. If funding remains 
available within the allocation area, the percentage used for the PHAs' 
reserved units will increase to the percent, not to exceed 25 percent, 
required to use as much of the funding as possible within the 
allocation area.
    Where the GMC finds it has some number of vouchers left but not 
enough to fully fund the next ranked application or applications 
receiving the same score, funding will be recommended by the GMC for 
the application indicating it will accept the lesser number of vouchers 
(see Section VI(B) of this NOFA). In the event there are two or more 
PHAs ranked at the same position (same number of rating points) 
indicating they will accept the lesser number of vouchers, the PHA 
whose application is eligible for the largest number of vouchers among 
these PHAs will be recommended by the GMC for funding.

(C) Reallocations Between Allocation Areas

    The GMC will make every reasonable effort to use all funds 
allocated to an allocation area within that area. It may be necessary, 
however, to reallocate funds from one allocation area to another when 
the funds cannot be used in the area to which they were initially 
allocated. (See 24 CFR 791.405(d)). In such cases, the GMC will re-
allocate funds to the allocation area having the largest number of 
approvable vouchers remaining unfunded due to lack of sufficient fair 
share funding.

(D) Applications Recommended by the GMC for Funding

    After the GMC has screened PHA applications and disapproved any 
applications found unacceptable for further processing, the GMC will 
review all acceptable applications to ensure they are technically 
adequate and responsive to the requirements of the NOFA. As PHAs are 
selected, the cost of funding the applications will be subtracted from 
the funds available. Applications will be funded for the total number 
of units recommended for approval by the GMC in accordance with this 
NOFA.

VI. Fair Share Application Submission Requirements

(A) Form HUD-52515

    All PHAs must complete and submit form HUD-52515, Funding 
Application, for housing choice vouchers, (dated January 1996). Section 
C of the form should be left blank. PHAs are requested to enter their 
housing authority code number, as well as their electronic mail 
address, telephone number, and facsimile telephone number in the same 
space at the top of the form where they are also to enter the PHA's 
name and mailing address. This form includes all the necessary 
certifications for Fair Housing, Drug Free Workplace and Lobbying 
Activities.
    Appendix A to this NOFA lists the estimate of the number of 
vouchers and budget authority available for each allocation area. PHAs 
must limit their applications for the ``fair share'' program to a 
reasonable number of vouchers based on the capacity of the PHA to 
lease-up within 12 months of ACC execution. The number of vouchers on 
the PHA application may not exceed that allowed under section V(A) of 
this NOFA. The form must be completed in its entirety, with the 
exception of section C, signed and dated. Copies of form HUD-52515 may 
be obtained from the local HUD Field Office or may be downloaded from 
the following HUD Web site: www.hud.gov. On the HUD Web site click on 
``handbooks and forms,'' then click on ``HUD-5'' and click on ``HUD-
52515.'' The Form HUD-52515 will also be located with this NOFA at the 
following HUD Web site: www.hud.gov/offices/adm/grants/otherhud.cfm.
    A PHA may submit only one application (form HUD-52515). (See 
section II(E), Eligible Applicants, of this NOFA which fully addresses 
this one application per eligible applicant requirement and the one 
very limited exception allowed under that requirement.)
    The GMC will reduce the number of vouchers requested in any 
application exceeding the maximum number that may be funded under 
section V(A) of this NOFA.

(B) Letter of Intent and Narrative

    The PHA must state in its cover letter to the application whether 
it will accept a reduction in the number of vouchers, and the minimum 
number of vouchers (not less than 24) it will accept, since the funding 
is limited and HUD may only have enough funds to approve a smaller 
amount than the number of vouchers requested. The PHA must also 
indicate whether it will accept and can lease within 12 months an 
allocation of vouchers numbering as many as 25 percent of its reserved 
vouchers. (See section V(A) of this NOFA).
    The application should include a narrative description of how the 
application meets the application selection criteria in section IV(A) 
of this NOFA. This narrative description must include the 
certifications specifically called for under Selection Criteria 3, 4, 5 
and 7 in order for the PHA to receive the points available under each 
of these criteria. The narrative description should also address how 
the PHA meets Criterion 2, and the basis for the number of points the 
PHA claims it is entitled to under Selection Criteria 1 and 6.
    Failure to submit the certifications called for under Selection 
Criteria 3, 4, 5, and 7 will result in the PHA receiving zero points 
for each Selection Criterion for which the certification is absent. 
Failure to submit these certifications shall not be considered a 
curable (correctable) technical deficiency under this NOFA. Failure of 
the PHA to submit information under Selection Criterion 6 shall also 
not be considered to be a curable (correctable) technical deficiency 
under this NOFA.
    Failure to submit information addressing the basis upon which the 
PHA is eligible for the points under Selection Criterion 1, or the 
points it feels it is eligible for under Selection Criterion 2 shall 
result in the GMC scoring the PHA solely on the basis of information 
already on-hand.

(C) Description of Primary Market Area

    Each PHA must specify in the application its primary market area; 
i.e., the area in which it is authorized to operate and in which the 
housing choice vouchers will be issued. This information may be 
different than that entered by such a PHA on the form HUD-52515, as the 
form calls for the PHA to identify its ``legal area of operation'' 
which may be far more geographically expansive than the specific city, 
county, or area within a State where a PHA, particularly a regional or 
State PHA, intends to issue the fair share vouchers. This information 
is critical because, as indicated in section IV(A)(1)(c) of this NOFA, 
the geographic area in which the vouchers are intended to be issued and 
in which the PHA is legally authorized to operate a Housing Choice 
Voucher Program will be used to determine the percentage of the state's 
housing needs that are within the PHA's primary market area under 
Selection Criterion 1. For example, although a PHA may be legally 
authorized to operate throughout the entire county in which it is 
located, if the vouchers will be issued only in two cities within that 
county then the primary market area is those two cities and not the 
entire county. Likewise, for a State PHA which may be legally 
authorized to operate throughout the entire State, but which intends to 
issue the fair share vouchers in only one

[[Page 8435]]

county, the primary market area is solely that county. In addition, the 
primary market area shall not include a geographic area in which the 
PHA is issuing vouchers, outside its normal, legally authorized area of 
operation, based upon an agreement with another PHA(s) to issue 
vouchers in the other PHA's jurisdiction.

(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; (b) work with local jurisdictions to 
implement any of the jurisdiction's initiatives to affirmatively 
further fair housing; and (c) the maintenance of records reflecting 
this analysis and actions;
    (2) Remedy discrimination in housing; or
    (3) Promote fair housing rights and fair housing choice.
    The PHA's statement must fully address the above areas. A general 
statement that the PHA will promote fair housing choice by reason of 
not discriminating on the basis of race, color, religion, etc. will not 
be sufficient.

(E) Moving to Work (MTW) PHA Certification

    See section VII(B)(2)(c) regarding the 97 percent lease-up or 
budget authority utilization certification to be submitted by an MTW 
PHA not required to report under SEMAP.

(F) Form HUD-2993

    All PHAs must complete and submit form HUD-2993, Acknowledgement of 
Application Receipt. In addition to the PHA entering its name and 
address on the form, the full title of the program under which the PHA 
is seeking funding must also be entered. This form is located in the 
General Section of the SuperNOFA and is also available at the following 
HUD Web site: www.hud.gov. On this Web site click on ``handbooks and 
forms.''

VII. Corrections to Deficient Applications

(A) Acceptable Applications

    An acceptable application is one that meets all of the application 
submission requirements in Section VI of this NOFA and does not fall 
into any of the categories listed in Section VII(B) of this NOFA. The 
GMC will initially screen all applications and notify PHAs of technical 
deficiencies by letter.
    With respect to correction of deficient applications, HUD may not, 
after the application due date and consistent with HUD's regulations in 
24 CFR part 4, subpart B, consider any unsolicited information an 
applicant may want to provide. HUD may contact an applicant to clarify 
an item in the application or to correct technical deficiencies. Please 
note, however, that HUD may not seek clarification of items or 
responses that improve the substantive quality of a response to any 
selection factors. In order not to unreasonably exclude applications 
from being rated and ranked, HUD may contact applicants to ensure 
proper completion of the application and will do so on a uniform basis 
for all applicants. Examples of curable (correctable) technical 
deficiencies include failure to submit the proper certifications (with 
the exception that failure to submit the certifications called for 
under Selection Criteria 3, 4, 5, and 7 shall not be considered 
curable) 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 or by facsimile (fax) 
transmission by describing the clarification or technical deficiency. 
The applicant must submit clarifications or corrections of technical 
deficiencies in accordance with the information provided by the GMC 
within 7 calendar days of the date of receipt of the HUD notification. 
Where the HUD notification indicates that the PHA response is to be 
sent by fax, the PHA must fax its response to (202) 358-0345 and 
maintain its fax receipt as proof of meeting the 7 calendar day 
deadline. 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 7 calendar day technical deficiency correction 
period, the GMC will disapprove all PHA applications that it determines 
are not acceptable for processing. The GMC's notification of rejection 
letter must state the basis for the decision.
    (2) Applications from PHAs that fall into any of the following 
categories will not be processed:
    (a) Applications from PHAs that do not meet the requirements of 
Section III(A)(1) of this NOFA, Compliance With Fair Housing and Civil 
Rights Laws.
    (b) The PHA is designated as troubled by HUD under SEMAP, or has 
major program management findings in an Inspector General audit for its 
voucher or certificate programs that are unresolved. The only exception 
to this category is if the PHA has been identified under the policy 
established in Section II(E) of this NOFA and the PHA makes application 
with a designated contract administrator. Major program management 
findings are those that would cast doubt on the capacity of the PHA to 
effectively administer any new housing choice voucher funding in 
accordance with applicable HUD regulatory and statutory requirements.
    (c) The PHA has failed to achieve a lease-up or budget authority 
utilization rate of 97 percent for its combined certificate and voucher 
units under contract for its fiscal year ending in on either September 
30, 2000; December 31, 2000; March 31, 2001; or June 30, 2001. PHAs 
that have been determined by HUD to have passed either the 97 percent 
lease-up, or 97 percent budget authority utilization requirement for 
their fiscal year ending on September 30, 2000; December 31, 2000; 
March 31, 2001; or June 30, 2001, will be listed with the Fair Share 
NOFA at the following HUD Web site: www.hud.gov/offices/adm/grants/otherhud.cfm. A PHA not listed may submit monthly lease-up and budget 
authority utilization information (following the methodology of 
Appendix B and using the format in Appendix C of this NOFA) as part of 
its application supportive of its contention that it should have been 
included among those PHAs HUD listed on the HUD web site as having 
achieved either a 97 percent lease-up rate or 97 percent budget 
authority utilization rate for fiscal years ending on September 30, 
2000; December 31, 2000; March 31, 2001; June 30, 2001; or subsequent 
full fiscal year not yet processed by HUD but certified by the PHA. 
Unless utilization information is submitted using the blank format in 
Appendix C, the application will otherwise be determined ineligible for 
funding under this NOFA. (Note: The lease-up and budget authority 
utilization requirement shall not apply to units associated with 
funding increments obligated during the last PHA fiscal year and units 
obligated for litigation. In addition, lease-up or budget authority 
utilization rates of 96.5

[[Page 8436]]

percent but less than 97 percent will be rounded up to 97 percent.)
    Moving To Work (MTW) agencies that are required to report under the 
Section 8 Management Assessment Program (SEMAP) shall be held to the 97 
percent lease-up and budget authority utilization requirements 
referenced above. 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 97 percent lease-up or budget authority utilization requirements.
    (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 this NOFA after the expiration of the 7 calendar 
day technical deficiency correction period will be rejected from 
processing.
    (f) The PHA's application was submitted after the application due 
date.
    (g) The application was not submitted to the official place of 
receipt as indicated in the paragraph entitled ``Address for Submitting 
Applications'' at the beginning of this NOFA.
    (h) The PHA has been debarred or otherwise disqualified from 
providing assistance under the program.
    (i) The PHA did not have its PHA plans approved by HUD for the FY 
2000 plan cycle on the application due date for this NOFA.

VIII. 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 58.35(b)(1) of the HUD 
regulations, tenant-based rental activities under this program are 
categorically excluded from the requirements of the National 
Environmental Policy Act of 1969 (NEPA) and are not subject to 
environmental review under the related laws and authorities. Activities 
under the homeownership option of this program are categorically 
excluded from NEPA requirements and excluded from most other 
environmental requirements in accordance with 24 CFR 58.35(b)(5), but 
PHAs are responsible for the environmental requirements in 24 CFR 
982.626(c). This NOFA provides funding for both these activities under 
24 CFR part 982, and does not alter the environmental requirements in 
that part. 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 
14.871.

(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 for public inspection all 
applications and related documentation, including letters of support, 
for 5 years beginning not less than 30 days following the award or 
allocation. 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.
    (3) Applicant Debriefing. Beginning not less than 30 days after the 
awards for assistance are announced in the above mentioned Federal 
Register notice, and for not longer than 120 days after awards for 
assistance are announced, HUD will provide a debriefing to any 
applicant requesting a debriefing on their application. All requests 
for debriefings must be made in writing and submitted to the Grants 
Management Center at the address indicated in Section I of this NOFA, 
under the paragraph titled ``Address for Submitting Applications.'' 
Materials provided to you during your debriefing will include the final 
scores you received for each of the selection criteria, final evaluator 
comments for each of the selection criteria, and the final assessment 
indicating the basis upon which assistance was provided or denied.

(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

[[Page 8437]]

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 Ethics Law Division 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: February 14, 2002.
Michael Liu,
Assistant Secretary for Public and Indian Housing.

APPENDIX A

     Section 8 Incremental Vouchers--FY 2002 Fair Share Allocations
------------------------------------------------------------------------
                  Allocation area                     Dollars     Units
------------------------------------------------------------------------
Alabama...........................................      832,781      222
Alaska & Washington...............................    2,222,989      382
Arizona...........................................    1,390,642      247
Arkansas..........................................      502,566      135
California........................................   18,874,594    2,517
Colorado..........................................    1,467,914      232
Connecticut.......................................    1,297,804      202
Delaware..........................................      192,562       34
District of Columbia & Maryland...................    2,047,095      354
Florida...........................................    4,160,328      759
Georgia...........................................    2,166,426      404
Hawaii & Pacific Islands..........................      648,297       92
Idaho.............................................      233,272       59
Illinois..........................................    5,027,075      819
Indiana...........................................    1,360,001      305
Iowa..............................................      723,213      181
Kansas............................................      552,154      141
Kentucky..........................................      856,898      229
Louisiana.........................................    1,207,967      289
Maine.............................................      371,200       76
Massachusetts.....................................    3,936,760      508
Michigan..........................................    3,132,546      595
Minnesota.........................................    1,373,359      236
Mississippi.......................................      543,302      152
Missouri..........................................    1,358,168      302
Montana...........................................      259,819       55
Nebraska..........................................      417,236      101
Nevada............................................      643,161      106
New Hampshire.....................................      334,649       55
New Jersey........................................    3,751,948      501
New Mexico........................................      384,684       87
New York..........................................   16,083,712    2,237
North Carolina....................................    1,777,975      381
North Dakota......................................      157,492       40
Ohio..............................................    3,506,237      744
Oklahoma..........................................      709,171      179
Oregon............................................    1,183,315      225
Pennsylvania......................................    4,188,667      804
Puerto Rico & Virgin Islands......................      816,843      228
Rhode Island......................................      453,347       82
South Carolina....................................      769,394      185
South Dakota......................................      205,513       49
Tennessee.........................................    1,174,639      279
Texas.............................................    5,786,829    1,128
Vermont...........................................      224,622       40
Utah..............................................      484,393       91
Virginia..........................................    1,603,074      334
West Virginia.....................................      387,725      110
Wisconsin.........................................    1,738,387      374
Wyoming...........................................       96,684       24
                                                   ---------------------
    US Total......................................  103,619,429   17,911
------------------------------------------------------------------------


    Note: The ``U.S. Total'' above for voucher funding/vouchers is 
the result of a reduction, from the $103,979,000 (approximately 
18,000 vouchers) announced as available at the beginning of this 
NOFA, to $103,619,429 (approximately 17,911 vouchers) in order to 
fund two PHAs; i.e., the Fargo, North Dakota Housing Authority for 
$165,079 for 44 vouchers, and the Vermont State Housing Authority 
for $194,492 for 45 vouchers. These two PHAs were among 13 PHAs not 
funded by HUD under the FY 2001 Fair Share NOFA due to HUD error. 
Because the vouchers allocated to North Dakota and Vermont (see the 
allocation table above) are so limited for FY 2002, the funding 
($359,571) needed to correct the FY 2001 HUD error affecting these 
two PHAs was subtracted from the $103,979,000 prior to allocating 
the balance of the funding ($103,619,429) to all allocation areas. 
This preserved the limited allocation of vouchers for the States of 
North Dakota and Vermont for FY 2002. The funding needed to fund the 
vouchers for the balance of 11 PHAs (those PHAs also not funded 
under the FY 2001 Fair Share NOFA due to HUD error, see section 
II(C)(3) of this NOFA) will be subtracted by the GMC from the 
dollars for the allocation areas above where these 11 PHAs are 
located. This will be done by the GMC prior to preparing its funding 
recommendations for FY 2002 applications. Subtracting the funding 
from these allocation areas at that point will preserve the full 
allocation of vouchers for each of these allocation areas at the 
outset so as to provide PHAs in those allocation areas with the 
fullest opportunity to qualify to be funded for 25 percent of the 
vouchers available within each of these allocation areas, as 
appropriate. The result of these cumulative deductions for these 13 
PHAs ($8,881,265 for 1,540 vouchers) shall leave $95,097,735 for 
approximately 16,460 vouchers, as indicated at the beginning of this 
NOFA, available for PHAs to submit applications under this FY 2002 
Fair Share NOFA.

APPENDIX B

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

    Using data from the HUDCAPS system, HUD determined which PHAs 
met the 97% budget authority utilization or 97% lease-up criteria. 
The data used in the determination was based on PHA fiscal years 
ending September 30, 2000; December 31, 2000; March 31, 2001; and 
June 30, 2001. 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 year ending September 30, 
2000; December 31, 2000; March 31, 2001; or June 30, 2001 for the 
PHA's combined certificate and voucher program. Annual budget 
authority associated with new funding increments obligated during 
the last PHA fiscal year and annual budget authority for litigation 
were excluded.
    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 that 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 year for each 
funding increment that

[[Page 8438]]

had an active contract term during all or a portion of the PHA year. 
ABA is adjusted for new funding increments obligated during the last 
PHA fiscal year and for litigation funding increments.
    Example:

                                 PHA ABC
                  [Fiscal year 10/1/99 through 9/30/00]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
HUD 52681 Approved Data:
    HAP...................................................   $2,150,000
    Administrative Fee....................................      215,000
    Hard to House Fee.....................................        1,000
    Audit.................................................        2,000
 
        Total.............................................    2,368,000
========================================================================
    Program Receipts other than Annual Contributions......       (2,500)
                                                           -------------
        Total contributions required......................    2,365,500
------------------------------------------------------------------------


                                     Calculation of Annual Budget Authority
----------------------------------------------------------------------------------------------------------------
                         Increments                                Contract term         Total BA        ABA
----------------------------------------------------------------------------------------------------------------
001.........................................................        11/01/99-10/31/00   $1,300,000   $1,191,667
002.........................................................        01/01/00-12/31/00    1,200,000      900,000
003.........................................................        04/01/00-03/31/01      950,000      475,000
004.........................................................        07/01/00-06/30/01    1,500,000      375,000
                                                             ---------------------------------------------------
    Totals..................................................  .......................    4,950,000    2,941,667
================================================================================================================
ABA associated with litigation..............................  .......................  ...........      475,000
                                                             ---------------------------------------------------
Total ABA...................................................  .......................  ...........   (2,466,667)
----------------------------------------------------------------------------------------------------------------


                      Budget Authority Utilization
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total contributions required...............................   $2,365,500
    divided by
Annual budget authority....................................    2,466,667
    equals
Budget Authority Utilization...............................        95.9%
------------------------------------------------------------------------

    Lease-up Rate
    The lease-up rate was determined by comparing the reserved units 
(funding increments active as of the end of the PHA year) to the 
unit months leased (divided by 12) reported on the combined HUD 
52681, Year End Settlement Statement(s) for September 30, 2000; 
December 31, 2000; March 31, 2001; or June 30, 2001.
    Units associated with new funding increments obligated during 
the last PHA fiscal year and units obligated for litigation were 
excluded from the reserved units.
    Example:

------------------------------------------------------------------------
            Increments                  Contract term           Units
------------------------------------------------------------------------
001..............................       11/01/ 99-10/31/00          242
002..............................        01/01/00-12/31/00          224
003..............................        04/01/00-03/31/01          178
004..............................        07/01/00-06/30/01          280
                                  --------------------------------------
    Totals.......................  .......................          924
========================================================================
Increment 003 litigation.........  .......................         (178)
Adjusted contract units..........  .......................          746
Unit months leased reported by     .......................        8,726
 PHA.............................
    divided by 12................  .......................          727
Units Leased.....................  .......................          727
Lease-up Rate:
    Units leased.................  .......................          727
        divided by adjusted        .......................          746
         contract units equal....
    Lease-up Rate................  .......................        97.5%
------------------------------------------------------------------------


[[Page 8439]]

APPENDIX C

    Example

                                       Main Street HA 12/31/01 Year End January 1, 2001 Through December 31, 2001
                          [ACC units applicable: 653 (Litigation and new units obligated during the fiscal year are excluded)]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                Annual
                                                                                                                                 Cumulative     budget
                              Month                                Total HAP     UMLs    Admin fee      HH fee    Requirements     total      authority
                                                                                                                                                (ABA)
--------------------------------------------------------------------------------------------------------------------------------------------------------
January.........................................................     $291,874      623      $29,119           $0      $320,993     $320,993     $295,650
February........................................................      211,945      620       30,058        1,125       243,128      564,121      295,650
March...........................................................      234,521      618       29,961          450       264,932      829,053      295,650
April...........................................................      226,489      620       30,058          750       257,297    1,086,350      295,650
May.............................................................      240,414      616       29,864          675       270,953    1,357,303      295,650
June............................................................      245,600      614       29,767          825       276,192    1,633,495      295,650
July............................................................      251,300      615       29,815          675       281,790    1,915,285      309,103
August..........................................................      265,304      611       29,621          900       295,825    2,211,110      309,103
September.......................................................      285,504      610       29,573          375       315,452    2,526,562      309,103
October.........................................................      298,503      612       29,670          525       328,698    2,855,260      309,103
November........................................................      325,008      628       30,445          300       355,753    3,211,013      309,103
December........................................................      355,006      640       31,027          225       386,258    3,597,271      309,105
                                                                 ---------------------------------------------------------------------------------------
    Totals......................................................    3,231,468    7,427      358,978        6,825  ............    3,597,271    3,628,520
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Leaseup Rate: 94.78% (UMLs/ACC units).
    ABA Utilization 99.14% (Requirements/ABA).
    Certification:
----------------------------------------------------------------------
Executive Director
----------------------------------------------------------------------
Section 8 Program Administrator
----------------------------------------------------------------------
HA Name:
----------------------------------------------------------------------
ACC Units applicable:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           Cumulative     Annual budget
            Month               Total (HAP+UAP)        UMLs            Admin fee          HH fee         Requirements        total       authority (ABA)
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Totals...................  $                 ................  $                 $                 ...............  $                $
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Leaseup Rate: ______% (UMLs/ACC units).
    ABA Utilization ______% (Requirements/ABA).

[[Page 8440]]

    Certification:
----------------------------------------------------------------------
Executive Director                     Date
----------------------------------------------------------------------
Section 8 Program Administrator                     Date
[FR Doc. 02-4215 Filed 2-21-02; 8:45 am]
BILLING CODE 4210-33-P