[Federal Register Volume 67, Number 147 (Wednesday, July 31, 2002)]
[Notices]
[Pages 49766-49791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-19276]



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Part III





Department of Housing and Urban Development





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Notice of Funding Availability for Revitalization of Severely 
Distressed Public Housing HOPE VI Revitalization Grants; Fiscal Year 
2002; Notice

  Federal Register / Vol. 67, No. 147 / Wednesday, July 31, 2002 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4768-N-01]


Notice of Funding Availability for Revitalization of Severely 
Distressed Public Housing HOPE VI Revitalization Grants; Fiscal Year 
2002

AGENCY: Office of Public and Indian Housing, HUD.

ACTION: Notice of funding availability (NOFA).

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SUMMARY: This NOFA announces the availability of approximately $492.5 
million in FY 2002 funds for the HOPE VI Revitalization Program.

I. Program Overview

(A) Purpose of the Program
    In accordance with section 24(a) of the United States Housing Act 
of 1937 (1937 Act), the purpose of HOPE VI Revitalization grants is to 
assist public housing agencies (PHAs) to:
    (1) Improve the living environment for public housing residents of 
severely distressed public housing projects through the demolition, 
rehabilitation, reconfiguration, or replacement of obsolete public 
housing projects (or portions thereof);
    (2) Revitalize sites (including remaining public housing dwelling 
units) on which such public housing projects are located and contribute 
to the improvement of the surrounding neighborhood;
    (3) Provide housing that will avoid or decrease the concentration 
of very low-income families; and
    (4) Build sustainable communities.
(B) Available Funds
    Approximately $492.5 million, in accordance with Section II below.
(C) Eligible Applicants
    Public Housing Authorities that have severely distressed housing in 
their inventory and are otherwise in conformance with the threshold 
requirements provided in Section III of this NOFA. PHAs that only 
administer Section 8 and Tribal PHAs are not eligible to apply.
(D) Application Deadline
    Revitalization grant applications are due on November 29, 2002, as 
described in Section IV(B) of this NOFA.
(E) Authority
    (1) The funding authority for HOPE VI Revitalization grants under 
this HOPE VI NOFA is provided by the Fiscal Year 2002 Department of 
Veterans Affairs and Housing and Urban Development and Independent 
Agencies Appropriations Act, 2002 (Pub.L. 107-73, approved on November 
26, 2001) (FY 2002 HUD Appropriations Act) under the heading 
``Revitalization of Severely Distressed Public Housing (HOPE VI).''
    (2) The program authority for the HOPE VI Program is section 24 of 
the 1937 Act (42 U.S.C. 1437v), as added by section 535 of the Quality 
Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, 112 Stat. 
2461, approved October 21, 1998).

II. Allocation of HOPE VI Funds

------------------------------------------------------------------------
                                                        Funds Available
                                                       for award in this
                                      Allocation of         HOPE VI
        Type of assistance                funds          revitalization
                                      (Approximate)           NOFA
                                                         (Approximate)
------------------------------------------------------------------------
Revitalization Grants.............        492,485,000        492,485,000
Demolition Grants.................         40,000,000
Neighborhood Networks.............          5,000,000
TechnicalAssistance...............          6,250,000
Section 8 Assistance..............         30,000,000
------------------------------------------------------------------------
    TOTAL.........................       $573,735,000       $492,485,000
------------------------------------------------------------------------

    (A) Revitalization Grants. Approximately $492.5 million of the FY 
2002 HOPE VI appropriation has been allocated to fund HOPE VI 
Revitalization grants and will be awarded in accordance with this HOPE 
VI Revitalization grant NOFA.
    (B) Demolition Grants. Approximately $40 million of the FY 2002 
HOPE VI appropriation has been allocated to fund HOPE VI Demolition 
grants and will be awarded in accordance with a separate HOPE VI 
Demolition grant NOFA.
    (C) Neighborhood Networks. The FY 2002 appropriation for HOPE VI 
allocated $5 million for a Neighborhood Networks initiative for 
activities authorized in Section 24(d)(1)(G) of the Act, which provides 
for the establishment and operation of computer centers in public 
housing for the purpose of enhancing the self-sufficiency, 
employability, and economic self-reliance of public housing residents 
by providing them with onsite computer access and training resources. 
The availability of these funds will be announced in a separate NOFA, 
and, in accordance with the appropriation, they will be awarded to PHAs 
on a competitive basis. In addition, PHAs that receive grant funds 
under this NOFA are required to establish Neighborhood Networks and may 
use funds awarded under this NOFA for this purpose.
    (D) Technical Assistance. The FY 2002 appropriation for HOPE VI 
allocated $6.25 million to provide technical assistance and contract 
expertise in the HOPE VI program, to be provided directly or indirectly 
by grants, contracts, or cooperative agreements, including training and 
cost of necessary travel for participants in such training, by or to 
officials and employees of HUD and of PHAs, and to residents. Technical 
assistance funds will be administered by the Office of Public Housing 
Investments.
    (E) Section 8. The cost of Section 8 tenant-based assistance that 
will be provided to FY 2002 HOPE VI Revitalization and Demolition 
grantees will come from the FY 2002 HOPE VI appropriation. 
Approximately $30 million will be allocated for such assistance. If 
this amount is more than the amount necessary, the remaining funds will 
be used for eligible activities under Section 24 of the Act, and made 
available for obligation before September 30, 2003.
    (1) If you anticipate that you will need Section 8 assistance in 
order to carry out necessary relocation in conjunction with proposed 
revitalization during FY 2003, your application must include the number 
of vouchers you will need, both in total and in FY 2003, and a Section 
8 application.
    (2) If you will need Section 8 assistance in fiscal years beyond FY 
2003 for revitalization or demolition that is being carried out in 
phases, or if

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you have unused Section 8 vouchers that are available to be used for 
HOPE VI-related relocation in FY 2003 but will need more for subsequent 
years, you must request additional vouchers only as needed during the 
appropriate fiscal years.
    (3) Section 8 assistance cannot be awarded or used to relocate 
residents from units that are to be demolished until those units have 
been approved by HUD for demolition.
    (4) If you have previously received Section 8 assistance to 
relocate residents from the targeted severely distressed units, you may 
still apply for a HOPE VI Revitalization grant to physically replace 
those same units, or a HOPE VI Demolition Grant to demolish the units 
without replacement.
    (5) You may request Section 8 assistance for the relocation of 
families who intend to move back to the site upon completion of the 
demolition and revitalization of the severely distressed project. Such 
families are not required to move back to the site if they prefer to 
keep the Section 8 assistance after revitalization activities are 
completed.
    (6) You may request Section 8 assistance for all units covered 
under a HOPE VI Revitalization or Demolition application to relocate 
residents from units that will not be replaced with hard units.
    (7) Section 8 vouchers are available as replacement units for all 
units that will be demolished, sold, or otherwise disposed of at the 
severely distressed project(s), minus the number of HOPE VI-eligible 
replacement units otherwise to be provided under Section 24(d)(1)(J) in 
connection with said project.
    (8) In accordance with Section VI(D)(8) of this NOFA, to the extent 
that you need Section 8 vouchers for relocation purposes in connection 
with HOPE VI grant funds under this NOFA, in an amount that exceeds the 
number of units to be demolished, sold, or otherwise disposed of at the 
severely distressed project, you should apply for Section 8 vouchers in 
accordance with the separate funding notices to be issued by HUD. If 
the Department receives more requests for Section 8 vouchers than can 
be funded from FY 2002 funds, some applications may receive priority 
funding in 2003.
    (9) You must have a 97 percent lease-up rate or budget authority 
utilization rate for your current voucher program in order not to have 
your requested number of relocation/replacement vouchers reduced by 
HUD.
    (10) For more information regarding the Section 8 Program, see 
Notice PIH 2001-20 (HA), which is available through HUDCLIPS at 
www.hudclips.org.
    (F) Notwithstanding Section III(E)(4) of the General Section of the 
FY 2001 SuperNOFA regarding funding of unsuccessful applicants, HUD 
will not use any funds from this HOPE VI NOFA to fund any nonselected 
HOPE VI Revitalization applications submitted in previous years. Only 
applications submitted under this FY 2002 HOPE VI NOFA will be 
considered for funding.

III. Summary of Threshold Requirements

    (A) The following are threshold requirements that must be met in 
order for a HOPE VI Revitalization application to be considered for 
funding. If the application fails to meet any one of these thresholds, 
HUD will not rate or rank the application, in accordance with Section 
XVII(B)(5) of this NOFA.
    (B) Unless specifically stated that an item is curable, the 
threshold items in this Section III(B) are not subject to Section 
XVII(B)(3) of this NOFA regarding the correction of deficiencies.
    (1) The applicant must qualify as an eligible applicant, as defined 
in Section VII(A)(1) of this NOFA.
    (2) The application must be received by HUD by the deadline date 
and time, in accordance with Section IV(B) of this NOFA.
    (3) Standard certifications must be submitted in accordance with 
Section XVI(A)(4) of this NOFA. Deficiencies for this item are curable, 
in accordance with Section XVII(B)(3) of this NOFA.
    (4) The application must disclose all prior HUD public housing 
assistance for physical revitalization at the targeted project, in 
accordance with Section VI(B)(2) of this NOFA. This item is curable.
    (5) The application must include a certification by a third party 
professional that the proposed costs meet the requirements of Section 
VI(C) of this NOFA. This item is curable.
    (6) In accordance with Section VI(D)(1) of this NOFA, each 
applicant may submit only one HOPE VI Revitalization application.
    (7) If an application proposes to revitalize more than one severely 
distressed public housing project, those projects must meet the 
requirements of Section VI(D)(3) of this NOFA.
    (8) If an application proposes to revitalize a severely distressed 
scattered site project, the project must meet the requirements of 
Section VI(D)(4) of this NOFA.
    (9) An application may not request HOPE VI Revitalization grant 
funds to revitalize units that were funded by an existing HOPE VI 
Revitalization grant, in accordance with Section VI(D)(6) of this NOFA.
    (10) If an application proposes to use HOPE VI Revitalization funds 
to develop market rate units or affordable units which do not qualify 
as replacement units in accordance with Section VI(D)(7) of this NOFA, 
the entire application will be disqualified.
    (11) If applicable the application must meet the requirements of 
separability, as described in Section VI(D)(11) of this NOFA.
    (12) If an applicant has been designated as troubled, it must meet 
the requirements of Section VII(A)(1) of this NOFA.
    (13) An applicant must have obligated at least 90 percent of its FY 
1998-1999 Capital Funds in accordance with Section VII(A)(2) of this 
NOFA.
    (14) An applicant which has one or more existing HOPE VI 
Revitalization grants will be disqualified if it has an open Inspector 
General (IG) or the General Accounting Office (GAO) audit finding 
related to the HOPE VI or Capital Fund Programs as of the application 
due date, in accordance with Section VII(A)(3)(a) of this NOFA.
    (15) An applicant which has one or more existing HOPE VI 
Revitalization grants will be disqualified if one or more of those 
grants fails to meet the performance requirements described in Section 
VII(A)(3)(b) of this NOFA.
    (16) An applicant must provide a certification that it has either 
procured a developer by the application deadline date or that it will 
act as its own developer, in accordance with Section VII(A)(5) of this 
NOFA.
    (17) An application must include an Administrative and Compliance 
Checkpoints Report, as provided in the HOPE VI Revitalization 
Application Kit, that, at a minimum, reflects the timeliness of 
construction requirements of Section XIX(B) of this NOFA.
    (18) An application must include a signed certification that the 
applicant or its procured property manager will implement the operation 
and management principles and policies in accordance with Section 
VII(A)(6) of this NOFA. This item is curable.
    (19) An application must include a certification signed by an 
engineer or architect that the targeted public housing project meets 
the definition of severe physical distress in accordance with Section 
VIII(A)(1)(a) of this NOFA. This item is curable.
    (20) An application must include commitments of resources in an 
amount that meets the match requirements of Section IX(A) of this NOFA.
    (21) An application must include a certification by the applicant 
that a

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resident training session and public meetings were held in accordance 
with Section X(A) of this NOFA. This item is curable.
    (22) An application must include a certification that the applicant 
has completed a HOPE VI Revitalization Relocation Plan and that the 
Relocation Plan is in compliance with the Uniform Relocation Act, as 
described in Section XII(C) of this NOFA.
    (23) An applicant must be in compliance with Fair Housing and Civil 
Rights Laws, in accordance with Section XIII(C)(1) of this NOFA.
    (24) An applicant must be in compliance with any desegregation or 
other court order related to Fair Housing, in accordance with Section 
XIII(C)(2) of this NOFA.
    (25) If an application includes a proposal to develop off-site 
replacement housing, the application must include evidence of site 
control of the proposed off-site locations, in accordance with Section 
XIV(B)(4) of this NOFA.
    (26) If an application includes a proposal to develop market rate 
housing, it must include a preliminary market assessment letter, in 
accordance with Section XIV(C) of this NOFA. This item is curable.
    (27) An application must include a certification that all necessary 
zoning approvals have been secured or scheduled, in accordance with 
Section XIV(E) of this NOFA.
    (28) An application must include a demonstration of the 
appropriateness of the proposal, in accordance with Section XV(A) of 
this NOFA.

IV. Application Submission Information

(A) Application Kit
    (1) The HOPE VI Application Kit provides explicit, specific 
instructions as to the format of your HOPE VI Revitalization 
application. Your application must conform to the requirements of this 
NOFA and follow the format described in the Kit. The Application Kit is 
designed to guide you through the application process and ensure that 
your application addresses all of the requirements of this NOFA. Please 
note that if there is a discrepancy between information provided in the 
Application Kit and the information provided in the NOFA, the 
information in the NOFA prevails.
    (2) HUD will mail an Application Kit to every eligible PHA. In 
addition, you may obtain an Application Kit from the HOPE VI 
Information Clearinghouse at 1-866-242-HOPE (1-866-242-HOPE is a toll 
free number). Persons with hearing-or speech-impairments may call the 
Clearinghouse's TTY number at 1-800-HUD-2209. When requesting an 
Application Kit, please refer to HOPE VI Revitalization and provide 
your name, address (including zip code), and telephone number 
(including area code). The Application Kit also will be available on 
the HOPE VI Home Page at www.hud.gov/hopevi and the HUD Home Page at 
www.hud.gov/grants.
(B) Application Due Date
    Revitalization grant applications are due at HUD Headquarters on or 
before 5:15 pm, Eastern Time, on November 29, 2002. This application 
deadline is firm. In contrast to previous years, your application must 
ARRIVE at HUD by 5:15 pm ON the due date. If you mail or give your 
application to an overnight carrier on the due date and it does not 
arrive by 5:15 pm ON THE DUE DATE, your application will not be 
considered. Submit your application early to avoid missing the deadline 
and being disqualified by unanticipated delays or other related 
problems.
(C) Application Delivery
    (1) Send the original and one copy of your completed application to 
Mr. Milan Ozdinec, Deputy Assistant Secretary for Public Housing 
Investments, Department of Housing and Urban Development, 451 Seventh 
Street, SW, Room 4130, Washington, DC 20410. Please make sure that you 
note the room number. The correct room number is very important to 
ensure that your application is not misdirected.
    (2) Applications Sent by Overnight Delivery. It is strongly 
recommended that you send your application by an overnight carrier, at 
least two days before the application due date. You may use only DHL, 
Falcon Carrier, FedEx, United Parcel Service (UPS), or the U.S. Postal 
Service (USPS), as they are the only carriers accepted into the HUD 
building without an escort. Delivery by these services must be made 
during HUD's Headquarters business hours, between 8:45 AM and 5:15 PM, 
Eastern Time, Monday to Friday. If your area is not served by these 
companies, you must submit your application via USPS.
    (3) Hand Carried Applications. Due to new security measures, HUD 
will no longer accept hand carried applications.
    (4) You must send one copy of your application to your HUD Field 
Office. The application sent to Headquarters will be the one that must 
meet the deadline. If an application is received by the Field Office on 
time, but not by Headquarters, it will not be considered.
    (5) HUD will not accept for review and evaluation any applications 
sent by facsimile (fax). Also do not submit resumes or videos.
(D) Technical Assistance
    (1) Before the application due date, HUD staff will be available to 
provide you with general guidance and technical assistance. HUD staff, 
however, are not permitted to assist in preparing your application. If 
you have a question or need a clarification, you may call, fax, or 
write Mr. Milan Ozdinec, Deputy Assistant Secretary for Public Housing 
Investments, Department of Housing and Urban Development, 451 Seventh 
Street, SW, Room 4130, Washington, DC 20410; telephone (202) 401-8812; 
fax (202) 401-2370 (these are not toll free numbers). Persons with 
hearing-or speech-impairments may call via TTY by calling the Federal 
Information Relay Service at (800) 877-8339.
    (2) Frequently asked questions, clarifications, and any technical 
corrections will be posted to the HUD Home Page at www.hud.gov. In 
addition, all materials related to this NOFA, including the HOPE VI 
Revitalization Application Kit, will be posted to the HOPE VI website 
at www.hud.gov/hopevi. Any technical corrections will also be published 
in the Federal Register. Applicants are responsible for monitoring 
these sites during the application preparation period.

V. Eligible Revitalization Activities

    HOPE VI Revitalization grants may be used for activities to carry 
out revitalization programs for severely distressed public housing in 
accordance with Section 24(d) of the U.S. Housing Act of 1937 Act (1937 
Act). Revitalization activities approved by HUD must be conducted in 
accordance with the requirements of this NOFA.
    (A) Relocation, including reasonable moving expenses, for residents 
displaced as a result of the revitalization of the project. See Section 
XII(C) of this NOFA for relocation requirements.
    (B) Demolition of dwelling units and nondwelling facilities, in 
whole or in part.
    (1) Demolition is not a required element of a HOPE VI 
Revitalization Plan.
    (2) You may not carry out, nor permit others to carry out the 
demolition of the Project or any portion of the Project until HUD 
approves, in writing, one of the following:
    (a) Information in your HOPE VI Revitalization Application, along 
with Supplemental Submissions requested by HUD after the award of the 
grant and a Request for Release of Funds submitted in accordance with 
24 CFR part 58. Section 24(g) of the 1937 Act provides

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that severely distressed public housing demolished pursuant to a 
Revitalization Plan is not required to be approved by a demolition 
application under Section 18 of the 1937 Act or regulations at 24 CFR 
part 970. If you do not receive a HOPE VI Revitalization grant, the 
information in your application will not be used to process a request 
for demolition;
    (b) A demolition application under Section 18 of the 1937 Act. 
While a Section 18 approval is not required by HOPE VI demolition, you 
will not have to wait for demolition approval through your Supplemental 
Submissions, as described in Section (a) above; or
    (c) A Section 202 Mandatory Conversion Plan, in compliance with 
regulations at 24 CFR part 971 and other applicable HUD requirements, 
if the project is subject to Mandatory Conversion (Section 202 of the 
Omnibus Consolidated Rescissions and Appropriations Act of 1996 Pub. L. 
104-134, approved on April 26 1996). A Mandatory Conversion Plan 
concerns the removal of a public housing project from a PHA's 
inventory.
    (C) Disposition of a severely distressed public housing site, by 
sale or lease, in whole or in part, in accordance with Section 18 of 
the 1937 Act and implementing regulations at 24 CFR part 970. A lease 
of one year or more that is not incident to the normal operation of a 
Project is considered to be a disposition that is subject to Section 18 
of the 1937 Act.
    (D) Rehabilitation and physical improvement of public housing and/
or community facilities primarily intended to facilitate the delivery 
of community and supportive services for residents of the Project and 
residents of off-site replacement housing, in accordance with 24 CFR 
968.112(b), (d), (e), and (g)-(o) and 24 CFR 968.130 and 968.135(b) and 
(d) or successor regulations, as applicable.
(E) Development
    (1) For any standard (non-mixed finance) public housing development 
activity, (whether on-site reconstruction or off-site development), you 
must obtain HUD approval of a standard development proposal submitted 
under 24 CFR part 941 (or successor part).
    (2) For mixed-finance housing development, you must obtain HUD 
approval of a Mixed Finance Proposal, submitted under 24 CFR part 941, 
subpart F (or successor part and subpart).
    (3) For new construction of community facilities primarily intended 
to facilitate the delivery of community and supportive services for 
residents of the Project and residents of off-site replacement housing, 
you must comply with 24 CFR part 941 (or successor part). Information 
required for this activity must be included in either a Standard or 
Mixed Finance Development Proposal, as applicable.
(F) Homeownership Activities
    (1) For homeownership replacement units developed under a 
Revitalization Plan, you must obtain HUD approval of a homeownership 
proposal. The homeownership proposal must be consistent with the 80 
percent of Area Median Income (AMI) limitations and any other 
applicable provisions under the 1937 Act. (HUD publishes AMI tables for 
each family size in each locality annually. The income limit tables can 
be found at www.huduser.org/datasets/il/fmr01/index.html). See Section 
XIV(D) of this NOFA (mixed-income communities) for more information 
about homeownership housing. Your homeownership proposal must conform 
to either:
    (a) Section 24(a)(1)(J) of the 1937Act; or
    (b) Section 32 of the 1937 Act, provided that HUD has issued final 
implementing regulations by the application due date; or
    (c) 24 CFR part 906 if HUD has not issued final regulations to 
implement Section 32 of the 1937 Act by the application due date.
    (2) Assistance may include:
    (a) Downpayment or closing cost assistance;
    (b) Provision of second mortgages; and/or
    (c) Construction or permanent financing for new construction, 
acquisition, or rehabilitation costs related to homeownership 
replacement units.
(G) Acquisition
    (1) Rental Units. For acquisition of rental units in existing or 
new apartment buildings, single family subdivisions, etc., with or 
without rehabilitation, for use as public housing replacement units, 
you must submit a Development Proposal in accordance with CFR part 
941.304 (conventional development) or 24 CFR 941.606 (mixed finance 
development).
    (2) Land for Off-Site Replacement Units. For acquisition of land 
for public housing or homeownership development, you must comply with 
24 CFR part 941 or successor part.
    (3) Land for Economic Development-Related Activities.
    (a) You may use HOPE VI grant funds to acquire land for economic 
development-related activities if those activities specifically promote 
the economic self-sufficiency of residents.
    (b) With HUD approval, you may also use HOPE VI grant funds for 
limited infrastructure and site improvements associated with developing 
retail, commercial, or office facilities, such as rough grading and 
bringing utilities to (but not on) the site.
    (c) You may not use HOPE VI grant funds to pay hard construction 
costs or to buy equipment for retail, commercial, or non-public housing 
office facilities.
    (4) Acquisition Proposal. Before you may undertake acquisition 
activities with HOPE VI or other public housing funds, you must submit 
an acquisition proposal to HUD that meets the requirements of 24 CFR 
941.303.
    (H) Necessary management improvements, including transitional 
security activities.
    (I) Reasonable costs for administration, planning, technical 
assistance, and fees and costs, as established by HUD guidance and 
policies regarding cost controls. These costs are limited to the costs 
of implementing the Revitalization Plan, as specifically approved by 
HUD, such as fees for architectural and engineering work, program 
management (if any), and reasonable legal fees. See Section VII(C)(3) 
for soft development costs guidelines.
    (J) Community and Supportive Services (CSS). The CSS Component of 
the HOPE VI Program encompasses all activities that are designed to 
promote upward mobility, self-sufficiency, and improved quality of life 
for the residents of the public housing project involved. The CSS 
Component is described in Section XI of this NOFA.
    (K) Leveraging other resources, including additional housing 
resources, supportive services, job creation, and other economic 
development uses on or near the project that will benefit future 
residents of the site.

VI. Revitalization Grant Limitations

(A) Grant Amount Limitations
    (1) The total amount you may request in your Revitalization 
application is limited to $20 million or the sum of the amounts in 
Section IV(A)(2), whichever is lower.
    (2) Total Development Cost (TDC). The ``TDC Limit'' refers to the 
maximum amount of HUD funding that HUD will approve for development of 
specific public housing units in a given location. The TDC limit 
applies only to the costs of development of public housing that are 
paid directly with HUD public housing funds, a PHA may exceed the TDC 
limit using non-public housing

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funds such as CDBG, HOME, low-income housing tax credit equity, etc. 
The HUD TDC Cost Tables are issued for each calendar year for the 
building type and bedroom distribution for the public housing 
replacement units. Use the TDCs in effect at the time this HOPE VI NOFA 
is published when making your TDC calculations.
    (a) The total cost of development, including relocation costs, is 
limited to the sum of:
    (i) HUD's TDCs up to 100 percent of HUD's published TDC limits for 
the costs of demolition and new construction, multiplied by the number 
of HOPE VI public housing replacement units; and/or
    (ii) 90 percent of the TDC limits, multiplied by the number of 
public housing units after substantial rehabilitation and 
reconfiguration.
    (b) The TDC limit for a project is made up of the following 
components:
    (i) Housing Cost Cap (HCC): HUD's published limit on the use of 
public housing funds for the cost of constructing the public housing 
units, which includes unit hard costs, builder's overhead and profit, 
utilities from the street, finish landscaping, and a hard cost 
contingency. Estimates should take into consideration the Davis-Bacon 
wage rate requirements as described in Section XIX(F)(1)(a) of this 
NOFA.
    (ii) Community Renewal (CR): The balance of funds remaining within 
the project's TDC limit after the housing construction costs described 
in (i) above are subtracted from the TDC limit. This is the amount of 
public housing funds available to pay for PHA administration, planning, 
infrastructure and other site improvements, community and economic 
development facilities, acquisition, relocation, demolition, and 
remediation of units to be replaced on site, and all other development 
costs.
    (3) CSS. You may request an amount up to 15 percent of the total 
HOPE VI grant to pay the costs of CSS activities, as described in 
Section XI(B) of this NOFA. These costs are in addition to (i.e., 
excluded from) the TDC calculation in Section (2) above.
    (4) Demolition and Site Remediation Costs of Unreplaced On-site 
Units. You may request an amount necessary for demolition and site 
remediation costs of units that will not be replaced on-site. This cost 
is in addition to (i.e., excluded from) the TDC calculation in Section 
(2) above.
    (5) Extraordinary Site Costs.
    (a) You may request a reasonable amount to pay extraordinary site 
costs, which are construction costs related to unusual pre-existing 
site conditions that are incurred, or anticipated to be incurred. If 
such costs are significantly greater than those typically required for 
similar construction, are verified by an independent, certified 
engineer or architect, and are approved by HUD, they may be excluded 
from the TDC calculation Section (2) above. Extraordinary site costs 
may be incurred in the remediation and demolition of existing property, 
as well as in the development of new and rehabilitated units. Examples 
of such costs include, but are not limited to: Abatement of 
extraordinary environmental site hazards; removal or replacement of 
extensive underground utility systems; extensive rock and/or soil 
removal and replacement; removal of hazardous underground tanks; work 
to address unusual site conditions such as slopes, terraces, water 
catchments, lakes, etc.; and work to address flood plain and other 
environmental remediation issues. Costs to abate asbestos and lead-
based paint from structures are normal demolition costs. Extraordinary 
measures to remove lead-based paint that has leached into the soil 
would constitute an extraordinary site cost.
    (b) Extraordinary site costs must be justified and verified by a 
licensed engineer or architect who is not an employee of the housing 
authority or the city. The engineer or architect must provide his or 
her license number and state of registration. An Extraordinary Site 
Costs Certification is included in the HOPE VI Application Kit. If this 
certification is not included in the application after the cure period 
described in Section XVII(B)(3) of this NOFA, extraordinary site costs 
will not be allowed.
(B) Other Application Limitations
    (1) You may not use HOPE VI Revitalization Grant funds to pay for 
any revitalization activities carried out on or before the date of the 
letter announcing the award of the HOPE VI Grant.
    (2) Threshold: Your application must disclose all prior HUD public 
housing assistance received for the project(s) you have targeted for 
the physical revitalization related to the proposed revitalization 
activities.
    (C) Hard and Soft Development Costs Guidelines.
    (1) Your projected hard development costs must be realistic, 
developed through the use of technically competent methodologies, 
including cost estimating services, and comparable to industry 
standards for the kind of construction to be performed in the proposed 
geographic area.
    (2) Your cost estimates must represent an economically viable 
preliminary plan for designing, planning and carrying out your proposed 
activities in accordance with local costs of labor, materials, and 
services.
    (3) Your projected soft costs must be reasonable and comparable to 
industry standards. Upon award, soft costs will be subject to HUD's 
``Safe Harbor'' cost control standards, which can be found at http://www.hud.gov/offices/pih/programs/ph/hope6/grants/admin/safeharbor.pdf. 
These safe harbors provide specific limitations on such costs as 
developer's fees (between 9 and 12 percent), PHA administration/
consultant cost (no more than 3 to 6 percent of the total project 
budget), contractor's fee (6 percent), overhead (2 percent), and 
general conditions (6 percent). HUD's Cost Control and Safe Harbor 
Standards can be found on the Grant Administration page of the HOPE VI 
website at www.hud.gov/hopevi.
    (4) Threshold: Your cost estimates must be certified to meet the 
standards of Sections (1) through (3) above by an independent cost 
estimator, architect, engineer, contractor, or other qualified third 
party professional.
    (5) If you are eligible for funding, HUD will delete any 
unallowable items from your budget and may reduce your grant 
accordingly, except as provided in Section VI(D)(7) of this NOFA.
    (D) Site and Unit Requirements.
    (1) Threshold: One application. Each applicant may submit only one 
HOPE VI Revitalization application as described in this NOFA. If more 
than one application is submitted by a single applicant, all 
applications will be disqualified.
    (2) Threshold: One Project. Except as provided in Sections 
(VI)(D)(3) and (4) below, each application must target one severely 
distressed public housing project (i.e., with one project number).
    (3) Threshold: Contiguous Projects. Each application may request 
funds for more than one project if those projects are immediately 
adjacent to one another or within a quarter-mile of each other. If you 
include more than one project in your application, you must provide a 
map that clearly indicates that the projects are within a quarter-mile 
of each other. If HUD determines that they are not, your application 
will be ineligible for funding.
    (4) Threshold: Scattered Site Projects. Your application may 
request funds to revitalize a scattered site public housing project. 
The sites targeted in an application proposing to revitalize scattered 
sites (regardless of whether the scattered sites are under multiple 
project numbers) must fall within a one

[[Page 49771]]

square mile area, except that you may identify a larger site if you can 
show that all of the targeted scattered site units are located within 
the hard edges (e.g., major highways, railroad tracks, lakeshore, etc.) 
of a neighborhood. If you propose to revitalize a project that extends 
beyond a one square mile radius or is otherwise beyond the hard edges 
of a neighborhood, your application will be ineligible for funding.
    (5) Number of Units. You may request funds for as few or as many 
units as you wish in your application. HUD will review requests to 
revitalize projects with small numbers of units on an equal basis with 
those with large numbers of units.
    (6) Threshold: Previously-funded Sites. You may submit a 
Revitalization application that targets a project that is being 
revitalized or replaced under an existing HOPE VI Revitalization grant 
or source of HUD public housing funds. However, you may not apply for 
new HOPE VI Revitalization funds for units in that project that were 
funded by the existing HOPE VI Revitalization grant or other HUD funds, 
even if those funds are inadequate to pay the costs to revitalize or 
replace all of the targeted units. For example, if a project has 700 
units and you were awarded a HOPE VI Revitalization grant or other HUD 
public housing funds to address 300 of those units, you may submit an 
FY 2002 HOPE VI Revitalization application to revitalize the remaining 
400 units. You may not apply for supplemental funds to supplement work 
on the original 300 units. If you request funds to revitalize units or 
buildings that have been funded by an existing HOPE VI Grant or other 
HUD funds, your application will be ineligible for funding.
    (7) Threshold: HOPE VI funds may not be used to develop market rate 
units or affordable housing units which do not qualify as public 
housing or homeownership replacement units.
    (8) Replacement Units. Under this HOPE VI NOFA, a HOPE VI 
Replacement unit shall be deemed to be any combination of public 
housing rental units, eligible homeownership units under Section 
24(d)(1)(J) of the 1937 Act, and Section 8 vouchers that does not 
exceed the number of units demolished and/or disposed of at the 
targeted severely distressed public housing project.
    (9) Access to Services. For both on-site and any off-site units, 
your overall Revitalization Plan must result in increased access to 
municipal services, jobs, mentoring opportunities, transportation, and 
educational facilities; i.e., the physical plan and self-sufficiency 
strategy must be well integrated and strong linkages must be 
established with the appropriate Federal and state and local agencies, 
non-profits, and the private sector to achieve such access.
    (10) Universal Design. HUD encourages you to incorporate the 
principles of universal design in the construction or rehabilitation of 
housing, retail establishments, and community facilities, or when 
communicating with community residents at public meetings or events. 
Universal design is the design of products and environments to be 
usable by all people, to the greatest extent possible, without the need 
for adaptation or specialized design. The intent of universal design is 
to simplify life for everyone by making products, communications, and 
the built environment more usable by as many people as possible at 
little or no extra cost. Universal design benefits people of all ages 
and abilities. Examples include designing wider doorways, installing 
levers instead of doorknobs, and putting bathtub/shower grab bars in 
all units. Computers and telephones can also be set up in ways that 
enable as many residents as possible to use them.
    (11) Threshold. Separability. In accordance with Section 
24(j)(2)(A)(v) of the 1937 Act, if you propose to target only a portion 
of a project for revitalization, you must:
    (a) Demonstrate to HUD's satisfaction that the severely distressed 
public housing is sufficiently separable from the remainder of the 
project of which the building is part to make use of the building 
feasible for revitalization, and
    (b) Demonstrate that the site plan and building designs of the 
revitalized portion will provide defensible space for the occupants of 
the revitalized building(s) and that the properties that remain will 
not have a negative influence on the revitalized buildings(s), either 
physically or socially. Separations may include a road, berm, catch 
basin, or other recognized neighborhood distinction.

VII. Capacity

(A) Thresholds
    (1) Troubled Status. If HUD has designated your housing authority 
as troubled pursuant to Section 6(j)(2) of the 1937 Act, HUD's Troubled 
Agency Recovery Centers will use documents and information available to 
it to determine whether you qualify as an eligible applicant. In 
accordance with Section 24(j) of the 1937 Act, the term ``applicant'' 
means:
    (a) Any PHA that is not designated as ``troubled'' pursuant to 
Section 6(j)(2) of the 1937 Act;
    (b) Any PHA for which a private housing management agent has been 
selected, or a receiver has been appointed, pursuant to Section 6(j)(3) 
of the 1937 Act; and
    (c) Any PHA that is designated as ``troubled'' pursuant to Section 
6(j)(2) of the 1937 Act and that:
    (i) Is designated as troubled principally for reasons that will not 
affect its capacity to carry out a revitalization program;
    (ii) Is making substantial progress toward eliminating the 
deficiencies of the agency that resulted in its troubled status; or
    (iii) Is otherwise determined by HUD to be capable of carrying out 
a revitalization program.
    (2) Obligation of Capital Funds. In order to be considered for 
funding, you must have obligated Capital Fund amounts (including the 
Comprehensive Improvement Assistance Program (CIAP) or Comprehensive 
Grant Program (CGP)) in a timely manner. HUD will not consider any 
application from an applicant that has obligated less than 90 percent 
of its FY 1998-1999 Capital Funds, as required by the Quality Housing 
and Work Responsibility Act of 1998, by September 30, 2001, unless an 
extension has been approved by the Deputy Secretary. HUD will use the 
LOCCS disbursement system to determine the obligation rate as of 
September 30, 2001. Some PHAs have executed Moving To Work (MTW) 
Agreements that exempt the PHA from the statutory Capital Fund 
obligation and expenditure deadlines. Accordingly, those PHAs will not 
be subject to this provision.
    (3) Performance of Existing HOPE VI Grantees. If an applicant has 
one or more existing HOPE VI Revitalization grants, the Department will 
disqualify such an applicant if:
    (a) The applicant has an open IG or GAO audit finding related to 
the HOPE VI or Capital Fund Programs as of the date the application is 
due to HUD, or
    (b) The applicant has failed to meet its performance requirements 
as required in the applicable HOPE VI Revitalization Grant Agreement by 
the application due date.
    (4) Conducting Business in Accordance With HUD Core Values and 
Ethical Standards. You must develop and maintain a written code of 
conduct (see Sections 84.42 and 85.36(b)(3)) that reflects HUD's Core 
Values. This code of conduct must prohibit real and apparent conflicts 
of interest that may arise among your employees, officers or

[[Page 49772]]

agents; prohibit the solicitation and acceptance of gifts or gratuities 
by employees, officers, and agents for their personal benefit in excess 
of minimal value, and outline administrative and disciplinary actions 
available to remedy violations of such standards. If awarded assistance 
under this NOFA, you will be required, prior to entering into a grant 
agreement with HUD, to submit a copy of your code of conduct and 
describe the methods you will use to ensure that all officers, 
employees, and agents of your organization are aware of your code of 
conduct.
    (5) Selection of Developer. In a departure from previous years, in 
order to be selected for funding, you must provide a certification 
that:
    (a) You have procured a developer for your first phase of 
construction by the application due date, in accordance with 24 CFR 
85.36 and 24 CFR 941.602(d) (as applicable). A developer is an entity 
contracted to develop (and possibly operate) a mixed finance 
development that includes public housing units, pursuant to 24 CFR part 
941 subpart F, and contingent on a satisfactory environmental review 
under 24 CFR part 58 or part 50, under the terms of a HUD-approved 
proposal. A developer most often has an ownership interest in the 
entity that is established to own and operate the replacement units 
(e.g. as the General Partner of a Limited Partnership). If you change 
developers after you are selected for funding, HUD reserves the right 
to rescind the grant; or
    (b) You will act as your own developer for the proposed project. If 
you change your plan and procure an outside developer after you are 
selected for funding, HUD reserves the right to rescind the grant.
    (6) Operation and Management Principles and Policies.
    (a) Authority. Any HOPE VI-funded activities at public housing 
projects are subject to statutory requirements applicable to public 
housing projects under the 1937 Act, other statutes, and the Annual 
Contributions Contract (ACC). Within such restrictions, HUD seeks 
innovative solutions to the long-standing problems of severely 
distressed public housing projects. You may request, for the 
revitalized project, a waiver of HUD regulations, subject to statutory 
limitations and a finding of good cause under 24 CFR 5.110 if the 
waiver will permit you to undertake measures that enhance the long-term 
viability of a project revitalized under this program. HUD will assess 
each request to determine whether good cause is established to grant 
the waiver.
    (b) Requirements. HOPE VI Revitalization Grantees will be required 
to develop Management Agreements that describe their operation and 
management principles and policies for their public housing units. In 
your application, you must provide a certification that you will ensure 
that you and/or your procured property manager have complied (to the 
extent required) with the provisions of 24 CFR 966.3 in planning for 
the implementation of the operation and management principles and 
policies described below.
    (i) Rewarding work and promoting family stability by promoting 
positive incentives such as income disregards and ceiling rents;
    (ii) Instituting a system of local preferences adopted in response 
to local housing needs and priorities, e.g., preferences for victims of 
domestic violence, residency preferences, disaster victims;
    (iii) Encouraging self-sufficiency by including lease requirements 
that promote involvement in the resident association, performance of 
community service, participation in self-sufficiency activities, and 
transitioning from public housing;
    (iv) Implementing site-based waiting lists for the redeveloped 
public housing and/or following project-based management principles;
    (v) Instituting strict applicant screening requirements such as 
credit checks, references, home visits, and criminal records checks;
    (vi) Strictly enforcing lease and eviction provisions;
    (vii) Improving the safety and security of residents through the 
implementation of defensible space principles and the installation of 
physical security systems such as surveillance equipment, control 
engineering systems, etc;
    (viii) Enhancing on-going efforts to eliminate drugs and crime from 
neighborhoods through collaborative efforts with Federal, state, and 
local crime prevention programs and entities such as:
    (A) Local law enforcement agencies;
    (B) Your local United States Attorney;
    (C) The Weed and Seed Program, if the targeted project is located 
in a designated Weed and Seed area. Operation Weed and Seed is a multi-
agency strategy that ``weeds out'' violent crime, gang activity, drug 
use, and drug trafficking in targeted neighborhoods and then ``seeds'' 
the target area by restoring these neighborhoods through social and 
economic revitalization. Law enforcement activities constitute the 
``weed'' portion of the program. Revitalization, which includes 
prevention, intervention, and treatment services as well as 
neighborhood restoration, constitutes the ``seed'' element. HUD has 
provided the Department of Justice with $10 million to fund Weed and 
Seed Strategies that fight crime and drugs in public, Indian, and 
Federally-assisted housing. For more information, see the Community and 
Safety and Conservation website at www.hud.gov/offices/pih/divisions/cscd/.
    (B) Rating Factor: Capacity--21 Points Total.
    The term ``your Team'' includes your HOPE VI Coordinator (an 
individual designated by the PHA who may be a staff member or 
contractor), PHA staff who will be involved in HOPE VI grant 
administration, and developer partners, program managers, property 
managers, subcontractors, consultants, attorneys, financial 
consultants, and other entities or individuals identified and/or 
proposed to carry out program activities.
    (1) Development Capacity.
    (a) Capacity of Developer--6 Points
    (i) You will receive 6 Points if:
    (A) Your Developer or other Team members have extensive, recent, 
and successful experience in planning, implementing, and managing 
physical development, financing, leveraging, and partnership activities 
that are comparable in character, scale, and complexity to your 
proposed revitalization activities;
    (B) You propose development using low-income tax credits, and you, 
your Developer, or other Team members have relevant tax credit 
experience; and
    (C) Homeownership, rent-to-own, cooperative ownership, or other 
major development components are proposed, you, your Developer, or 
other Team members have relevant, successful experience in development, 
sales, and/or conversion activities.
    (ii) You will receive 4 Points if your Developer or other Team 
members have some but not extensive experience in the factors described 
above.
    (iii) You will receive 0 Points if your Developer or other Team 
members do not have the experience described and the application does 
not demonstrate that it has the capacity to carry out your 
Revitalization Plan. You will also receive 0 Points if there is 
inadequate information in your application to rate this factor.
    (b) Development Capacity of Applicant--6 Points.
    (i) You will receive 6 Points if:
    (A) You have identified potential gaps in your current staffing in 
relation to development activities, and you have plans to fill such 
gaps, internally or externally, in a timely manner in order

[[Page 49773]]

to successfully implement your Revitalization Plan;
    (B) You have demonstrated that physical development activities will 
proceed as promptly as possible following grant award, and you will be 
able to begin significant construction within 23 months of the award of 
the grant.
    (C) Your Administrative and Compliance Checkpoints Report, as 
provided in the HOPE VI Revitalization Application Kit, provides a 
feasible plan to meet the schedule requirements of Section XIX(B) of 
this NOFA, with no impediments such as litigation that would prevent 
timely startup. Those schedules that indicate the soonest startup will 
be rated the highest.
    Threshold: Submission of the Administrative and Compliance 
Checkpoints Report that conforms to the timeliness requirements of 
Section XIX(B) of this NOFA is a threshold requirement and not subject 
to Section XVII(B)(3) with regard to curing deficiencies;
    (D) Your management experience and previous experience with 
development activities demonstrates that you have experience in 
overseeing large scale development, whether it be in-house or 
implemented by a private entity. In your application, you will describe 
the dollar amount and timeframe for completion of the project(s); and
    (E) As of the HOPE VI Revitalization application due date, you do 
not have any outstanding Comprehensive Grant, Comprehensive Improvement 
Assistance Program, or Capital Fund Program audit findings. If you have 
such a finding, you cannot receive 6 Points.
    (ii) You will receive 4 Points if you have had experience in 
managing large scale development in accordance with the factors above, 
but your experience has not been extensive and/or your project(s) were 
not completed within the timeframe originally established for the 
project. You will also receive 4 Points if you have extensive 
experience, but have an outstanding Capital Fund Program audit finding 
as described in Section (VII)(A)(3)(a) above.
    (iii) You will receive 1 Point if your application indicates that 
you have had little experience in managing large-scale development 
projects.
    (iv) You will receive 0 Points if you do not demonstrate any 
experience in managing development activities, or if there is 
inadequate information in your application to rate this factor.
    (2) Capacity of Existing HOPE VI Revitalization Grantees.
    This Section applies only to applicants that have received HOPE VI 
Revitalization grants in the past, excluding those awarded in FY 2001. 
If an applicant has more than one HOPE VI Revitalization grant, each 
will be rated separately, and the highest deduction will be made. 
Applicants with only FY 2001 HOPE VI Revitalization grants or no 
existing HOPE VI Revitalization grants are not subject to this section.
    (a) Grant Progress--5 Points.
    5 Points will be deducted if you have not carried out the following 
activities within the timeframes established in your first schedule 
entered into the HOPE VI Quarterly Report system. Although HUD may have 
approved an extension(s), this factor will be measured against the 
original due dates. HUD will determine this factor based on internal 
information on existing grants.
    (i) Supplemental Submissions submitted;
    (ii) CSS Workplan submitted;
    (iii) Program Manager procured;
    (iv) Master Development Agreement executed.
    (b) Obligation Rate.
    Up to 5 Points will be deducted if a Grantee has obligated its 
grant funds as follows. Obligation rates will be determined from LOCCS 
reports generated as of March 31, 2002, Except in the case of some 
moving to work applicants, which are not required to enter obligations 
into LOCCS in accordance with their MTW agreements. Those PHAS must 
provide a certification of their obligation rate in their applications 
in order to receive any points for this rating factor.

 
------------------------------------------------------------------------
             Percent obligated                     Points deducted
------------------------------------------------------------------------
                   Grants Awarded in FY 1996 or prior
------------------------------------------------------------------------
100 Percent...............................  0 Points
90-99 Percent.............................  1 Point
80-89 Percent.............................  2 Points
70-79 Percent.............................  3 Points
60-69 Percent.............................  4 Points
less than 60 Percent......................  5 Points
------------------------------------------------------------------------
                        Grants Awarded in FY 1997
------------------------------------------------------------------------
95-100 Percent............................  0 Points
85-94 Percent.............................  1 Point
75-84 Percent.............................  2 Points
65-74 Percent.............................  3 Points
55-64 Percent.............................  4 Points
less than 55 Percent......................  5 Points
------------------------------------------------------------------------
                        Grants Awarded in FY 1998
------------------------------------------------------------------------
85-100 Percent............................  0 Points
75-84 Percent.............................  1 Point
65-74 Percent.............................  2 Points
55-64 Percent.............................  3 Points
45-54 Percent.............................  4 Points
less than 45 Percent......................  5 Points
------------------------------------------------------------------------
                        Grants Awarded in FY 1999
------------------------------------------------------------------------
80-100 Percent............................  0 Points
70-79 Percent.............................  1 Point
60-69 Percent.............................  2 Points
50-59 Percent.............................  3 Points
40-49 Percent.............................  4 Points
less than 40 Percent......................  5 Points
------------------------------------------------------------------------
                        Grants Awarded in FY 2000
------------------------------------------------------------------------
75-100 Percent............................  0 Points
65-74 Percent.............................  1 Point
55-64 Percent.............................  2 Points
45-54 Percent.............................  3 Points
35-44 Percent.............................  4 Points
less than 35 Percent......................  5 Points
------------------------------------------------------------------------

    (3) CSS Program Capacity--3 Points.
    You will receive 1 Point for each of the following criteria that 
you demonstrate in your application. See Section XI(B) of this NOFA for 
detailed information on CSS activities.
    (a) You will receive 2 Points:
    (i) If you propose to carry out your CSS Plan in-house and you have 
recent, successful experience in planning, implementing, and managing 
the types of CSS activities proposed in your application, or
    (ii) You propose that CSS activities be carried out by members of 
your Team, you have procured a member(s) of your Team who has the 
qualifications and experience to plan, implement, manage, and 
coordinate the types of activities proposed, and/or you have a plan for 
promptly hiring staff or procuring a Team member to do so.
    (b) If you have an existing HOPE VI grant, you will receive 1 Point 
if you demonstrated that your proposed CSS Team will be adequate to 
implement a new program without weakening your existing Team. If you do 
not have an existing HOPE VI Revitalization grant, you will 
automatically receive this Point.
    (4) Property Management Capacity--4 Points.
    (a) Property management activities may be the responsibility of the 
PHA or another member of the Team, which may include a separate entity 
that you have procured or will procure to carry out property management 
activities. In your application you will describe the number of units 
and the condition of the units currently managed by you or your 
property manager, your annual budget for those activities, and any 
awards or recognition that you or your property manager have received.
    (b) Past Property Management Experience--3 Points.
    (i) You will receive 3 Points if:

[[Page 49774]]

    (A) You or your property manager currently has recent, successful 
experience in property management of the housing types included in your 
revitalization plan. This may include market rate rental housing, 
public housing, and/or other affordable housing, including rental units 
developed with low-income housing tax credit assistance. If your 
Revitalization Plan includes cooperatively-owned housing, rent-to-own 
units, or other types of managed housing, you must demonstrate recent, 
successful experience in the management of such housing by the relevant 
member(s) of your Team, and
    (B) You or your property manager has excellent knowledge and 
recent, successful experience in property management of market rate, 
affordable and/or public housing.
    (ii) You will receive 1 Point if your application demonstrates that 
you or your property manager has some but not extensive experience of 
the kind required for your Revitalization Plan.
    (iii) You will receive 0 Points if your application does not 
demonstrate that you or your property manager has the capacity to 
manage your proposed plan, or if there is inadequate information in 
your application to rate this factor.
    (c) Property Management Plan--1 Point.
    (i) You will receive 1 Point if your application provides a 
detailed description of the goals and plans of you or your property 
manager to administer the following elements:
    Property maintenance
    Rent collection
    MTCS reporting
    Site-based management experience
    Tenant grievances
    Evictions
    Occupancy rate
    Unit turnaround
    Preventive maintenance
    Work order completion
    Project-based budgeting
    Management of Homeownership and rent-to-own programs
    Energy Audits

    (ii) You will receive 0 Points if there is insufficient information 
in your application to rate this factor.
    (5) PHA Plan--2 Points.
    (a) You will receive 2 Points if you have incorporated the 
revitalization plan described in your application into your PHA Plan, 
and your PHA Plan has been approved by your local HUD Field Office.
    (b) You will receive 1 Point if:
    (i) You have incorporated the revitalization plan described in your 
application into your PHA Plan, but your PHA plan has not been approved 
by your local HUD Field Office, or
    (ii) The Field Office has approved your PHA Plan, but the 
revitalization plan described in your application has not been 
incorporated into the PHA Plan.
    (c) You will receive 0 Points if you have not incorporated the 
revitalization plan described in your application into your PHA Plan, 
or if there is insufficient information in your application to rate 
this factor.

VIII. Need

    (A) Threshold: Severe Distress.
    (1) The targeted public housing project or building in a project 
must be severely distressed. In accordance with Section 24(j)(2) of the 
1937 Act, the term ``severely distressed public housing'' means a 
public housing project (or building in a project):
    (a) That:
    (i) Requires major redesign, reconstruction or redevelopment, or 
partial or total demolition, to correct serious deficiencies in the 
original design (including inappropriately high population density), 
deferred maintenance, physical deterioration or obsolescence of major 
systems, and other deficiencies in the physical plant of the project;
    (ii) Is a significant contributing factor to the physical decline 
of, and disinvestment by public and private entities in, the 
surrounding neighborhood;
    (iii) (A) Is occupied predominantly by families who are very low-
income families with children, are unemployed, and dependent on various 
forms of public assistance; or
    (B) Has high rates of vandalism and criminal activity (including 
drug-related criminal activity) in comparison to other housing in the 
area;
    (iv) Cannot be revitalized through assistance under other programs, 
such as the Capital and Operating Funds Programs for public housing 
under the Act, or the programs under Sections 9 and 14 of the 1937 Act 
(as in effect before the effective date under Section 503(a) of the 
Quality Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, 
approved October 21, 1998, referred to as the Public Housing Reform 
Act), because of cost constraints and inadequacy of available amounts; 
and
    (v) In the case of individual buildings, is sufficiently separable 
from the remainder of the project of which the building is part to make 
use of the building feasible for revitalization; or
    (b) That was a project described in Section VIII(A)(1)(a) that has 
been legally vacated or demolished, but for which HUD has not yet 
provided replacement housing assistance (other than tenant-based 
assistance).
    (2) A severely distressed project that has been legally vacated or 
demolished (but for which HUD has not yet provided replacement housing 
assistance, other than tenant-based assistance) must have met the 
definition of physical distress as of the day the demolition 
application approval letter was dated by HUD.
    (3) To meet the severe distress requirement, you must certify that 
the public housing project or building in a project targeted in your 
HOPE VI application meets the definition of severe distress provided in 
Section VIII(A)(1). You will make this certification by signing the 
HOPE VI Revitalization Grant Applicant Certifications. The 
certification form is included in the HOPE VI Application Kit, and the 
text of the certification is included as Appendix A to this HOPE VI 
NOFA.
    (4) In order to certify to the severe physical distress described 
in Section VIII(A)(1)(a) of this NOFA, your application must include a 
certification that is signed by an engineer or architect licensed by a 
state licensing board. The license does not need to have been issued in 
the same state as the severely distressed project. The engineer or 
architect must include his or her license number and state of 
registration on the certification. The engineer or architect may not be 
an employee of the housing authority or the city.
    (B) Rating Factor: Need--26 Points Total.
    (1) Need for Revitalization: Severe Physical Distress--10 Points
    HUD will evaluate the extent of the severe physical distress of the 
targeted public housing project. If the targeted units have already 
been demolished, HUD will evaluate your description of the extent of 
the severe physical distress of the site as of the day the demolition 
application was approved by HUD. You will receive Points for the 
following separate subfactors, as indicated.
    (a) You will receive 2 Points if you demonstrate that there are 
major deficiencies in the project's infrastructure, roofs, electrical, 
plumbing, heating and cooling, mechanical systems, settlement, and/or 
other deficiencies in Housing Quality Standards.
    (b) You will receive 2 Points if you demonstrate that there are 
poor soil conditions, inadequate drainage, deteriorated laterals and 
sewers, and/or inappropriate topography.

[[Page 49775]]

    (c) You will receive 3 Points if you demonstrate that the project 
has major design deficiencies, including:
    (i) Inappropriately high population density, room, and/or unit size 
and configurations;
    (ii) Isolation;
    (iii) Indefensible space;
    (iv) Significant utility expenses caused by energy conservation 
deficiencies that may be documented by an energy audit; and/or
    (v) Inaccessibility for persons with disabilities with regard to 
individual units, entrance ways, and/or common areas.
    (d) You will receive 3 Points if you demonstrate that there are 
extreme levels of unmitigated lead-based paint, PCBs, mold, and/or 
asbestos that make the site or a portion of the site and its housing 
structures unsuitable for residential use.
    (2) Need for Revitalization: Impact of the Severely Distressed Site 
on the Surrounding Neighborhood--5 Points
    HUD will evaluate the extent to which the severely distressed 
public housing project is a significant contributing factor to the 
physical decline of, and disinvestment by, public and private entities 
in the surrounding neighborhood. In making this determination, HUD will 
evaluate your description of your narrative, crime statistics, 
photographs or renderings, socio-economic data, trends in property 
values, evidence of property deterioration and abandonment, evidence of 
underutilization of surrounding properties, and indications of 
neighborhood disinvestment.
    (a) You will receive 5 Points if your narrative adequately 
demonstrates that the project has an enormous impact on the surrounding 
neighborhood, as documented by each item listed above.
    (b) You will receive 3 Points if your narrative demonstrates that 
the project has a moderate impact on the neighborhood, and/or only some 
of the items listed above are adequately documented.
    (c) You will receive 0 Points if your narrative does not 
demonstrate that the project has an impact on the surrounding 
neighborhood, or there is inadequate information in your application to 
rate this factor.
    (3) Need for Funding: Obligation of Capital Funds--8 Points
    HUD will evaluate the extent to which you could undertake the 
proposed revitalization activities without a HOPE VI grant. Large 
amounts of available Capital Funds indicate that the revitalization 
could be carried out without a HOPE VI grant.
    HUD will use data from the latest quarterly obligation report 
available at the time of the grant application deadline date to 
determine the amount of unobligated FY 1999-2001 Capital Grant 
(including CIAP and CGP) funds currently available that could be used 
to carry out the proposed revitalization activities. Applicants must 
ensure that their obligation and expenditure information was updated in 
LOCCS prior to March 31, 2002, unless an extension has been approved by 
the Deputy Secretary. Information provided in the application will not 
be considered, except in the case of some moving to work applicants, 
which are not required to enter obligations into LOCCS in accordance 
with their MTW agreements. Those PHAS must provide a certification of 
their obligation rate in their applications in order to receive any 
points for this rating factor.
    (a) You will receive 8 Points if your unobligated Capital Funds 
balance is up to 20 percent of the amount of HOPE VI funds requested.
    (b) You will receive 6 Points if your unobligated balance is 21-45 
percent of the amount of HOPE VI funds requested.
    (c) You will receive 4 Points if your unobligated balance is 46-70 
percent of the amount of HOPE VI funds requested.
    (d) You will receive 2 Points if your unobligated balance is 71 to 
90 percent of the amount of HOPE VI funds requested.
    (e) You will receive 0 Points if your unobligated balance is more 
than 90 percent of the amount of HOPE VI funds requested.
    (4) Need for Affordable Housing in the Community--3 Points
    There must be a need for affordable housing in the community, 
measured by the supply of other housing available and affordable to 
families receiving tenant-based assistance under Section 8.
    Affordable housing is measured by the supply of housing units 
available in your community with rents that would qualify for Section 8 
assistance. To make this calculation, use the most recently published 
FMR for a 3 bedroom apartment. For the same community (the jurisdiction 
covered by the FMR), examine the apartment listings in a newspaper of 
general circulation that serves the majority of that community. 
Determine the number of low-income units with rents at or below the FMR 
for your community, over a period of any 30 days during the application 
review period. In your application you will document information about 
your analysis.
    (a) You will receive 3 Points if the average market rental costs 
are over 130 percent of Section 8 fair market rents.
    (b) You will receive 2 Points if the average market rental costs 
are over 120 percent of Section 8 fair market rents.
    (c) You will receive 1 Point if the average market rental costs are 
over 110 percent of Section 8 fair market rents.
    (d) You will receive 0 Points if the average market rental costs 
are 110 percent or less or if there is inadequate information to rate 
this factor.

IX. Match and Leveraging

    (A) Match Requirements.
    (1) Overall Match. In accordance with Section 24(c) of the 1937 
Act, if you are selected for funding, you must supplement your HOPE VI 
Revitalization grant with funds from other sources greater than or 
equal to 5 percent of the HOPE VI funds provided.
    (2) Additional Community and Supportive Services (CSS) Match. In 
addition to supplemental amounts provided in accordance with Section 
(1) above, if you are selected for funding and propose to use more than 
5 percent of your HOPE VI grant for CSS activities (you may use up to 
15 percent of your grant for such activities), you must provide 
supplemental funds from sources other than HOPE VI, dollar for dollar, 
for the amount over 5 percent of the grant that you will use for CSS 
activities.
    (3) Matching funds must be directly applicable to the 
revitalization of the site and the transformation of the lives of 
residents.
    (4) Grantees must provide matching funds which, combined with HOPE 
VI funds, will enable them to carry out revitalization activities, 
including CSS activities. Applicants must show firm commitments in the 
amounts required for match in their applications in order to be funded. 
Grantees will be required to show evidence that matching resources were 
actually received and used for their intended purposes through 
quarterly reports as the project proceeds. Sources of matching funds 
may be substituted after grant award, as long as the dollar requirement 
is met.
    (5) Grantees must pursue and enforce any commitment (including 
commitments for services) obtained from any public or private entity 
for any contribution or commitment to the project or surrounding area 
that was used for leverage in their HOPE VI applications.
    (6) Threshold: You must provide evidence that you have met your 
match requirement in the application. This means that the amount of 
match accepted by HUD must be at least 5 percent of total grant. You 
must also meet CSS match requirement of one for one for every dollar 
used for CSS over

[[Page 49776]]

five percent of the grant. (i.e., a request for 15 percent of the grant 
for CSS would require a dollar for dollar match of the amount requested 
for CSS over that first 5 percent.)
    (B) Leverage. Although related to match, leverage is strictly a 
rating factor. Leverage consists of firm commitments of funds and other 
resources that are over and above the amount documented as match. HUD 
will rate your application based on the amount of funds and other 
resources that will be leveraged by the HOPE VI grant as a percentage 
of the amount of HOPE VI funds requested.
    (C) Resource Documentation. In your application, you will enter 
basic information about each resource on the appropriate resource 
summary form: name of the organization providing the resource, the 
dollar value of the resource, and its proposed use.
    (1) For each resource you list, you must provide a commitment 
document, such as a letter, memorandum of understanding, agreement to 
participate, city council resolution, or other evidence of the resource 
to be committed. The commitment cannot be conditioned on anything other 
than the receipt of the HOPE VI grant. The commitment document must be 
signed by an official of the organization legally authorized to make 
commitments on behalf of the organization.
    (2) Each commitment document must include the dollar value of the 
commitment, and that dollar value must be consistent with the amount 
entered on the Resource Summary Form. On the form you will also enter 
the page number of your application where the commitment document is 
located.
    (3) Endorsements or general letters of support from organizations 
or vendors alone will not count as resources and should not be included 
in the application or on a Resources Summary Form.
    (4) Each resource may be used for only one category: Development, 
CSS, Anticipatory, or Collateral, as described below. Any resource 
listed in more than one category will be disqualified from all 
categories.
    (5) For CSS purposes, include only funds that will be newly 
generated for HOPE VI activities. HUD will not count any funds that 
have been provided routinely, such as TANF payments or funds that 
support ongoing CSS-type activities.
    (6) Even though an in-kind CSS contribution may count as a 
resource, it may not be appropriate to include on the sources and uses 
attachment. Each source on the sources and uses attachment must be 
matched by a specific and appropriate use. For example, donations of 
staff time may not be used to offset costs for infrastructure.
    (D) Types of Development Resources.
    HUD seeks to fund mixed-finance developments that use HOPE VI funds 
to leverage the maximum amount of other physical development funds, 
particularly from private sources, that will result in revitalized 
public housing, other types of assisted and market rate housing, and 
private retail and economic development. Types of resources that may be 
counted include:
    (1) Private mortgage-secured loans and other debt. Note the term 
maturity expected and sources of repayment of all loans.
    (a) Where there is both a construction loan and a permanent take-
out loan, you must provide documentation of both, but only the value of 
the permanent loan will be counted as leverage.
    (b) For privately-financed homeownership construction loans, 
acceptable documentation of construction loans will be considered as 
leverage. Documentation of permanent financing is not required.
    (c) If you have obtained a construction loan but not a permanent 
loan, the value of the acceptably documented construction loan will be 
counted as leverage.
    (2) Insured loans.
    (3) Donations and contributions.
    (4) Housing trust funds.
    (5) Net sales proceeds from a homeownership project.
    (6) Funds committed to build private sector housing in direct 
connection with the HOPE VI Revitalization Plan.
    (7) Tax Increment Funding (TIF).
    (8) Tax Exempt Bonds. Describe use and term.
    (9) Other Federal Funds. Other Federal sources may include funds 
provided by the Capital Fund or other HUD-provided public housing funds 
(except for HOPE VI funds), including funds derived from program 
income.
    (10) Low Income Housing Tax Credits (LIHTC). Low Income Tax Credits 
are authorized by Section 42 of the IRS Code which allows investors to 
receive a credit against Federal tax owed in return for providing funds 
to developers to help build or renovate housing that will be rented 
only to lower-income households for a minimum period of years. There 
are two types of credits, both of which are available over a 10-year 
period: a 9 percent credit on construction/rehab costs, and a 4 percent 
credit on acquisition costs and all development costs financed 
partially with below-market Federal loans (e.g. tax exempt bonds). Tax 
credits are generally allocated annually through State Housing Finance 
Agencies, a directory of which can be found at http://www.ncsha.org/ncsha/public/statehfadirectory/index.htm.
    (a) If you propose to include LIHTC equity as a development 
resource for your first phase of development, your application must 
include a LIHTC allocation letter from your State or local Housing 
Finance Agency. This letter must constitute a firm commitment, and can 
only be conditioned on the receipt of the HOPE VI grant.
    (b) If you propose to include LIHTC equity as a development 
resource for phases of development other than your first phase, your 
application must include a commitment letter from your State or local 
Housing Finance Agency that provides information from the allocation 
plan, including:
    (i) The total amount and type (4 percent vs. 9 percent) of tax 
credits available,
    (ii) The dollar amount expected from the sale of equity. If this 
information is not provided, HUD will count 80 percent of the total tax 
credit amount;
    (iii) Any setasides available for PHAs;
    (iv) Any per-project funding limits;
    (v) The schedule of funding rounds;
    (vi) Verification that your project meets eligibility criteria; and
    (vii) A plan and/or schedule for obtaining future tax credits for 
any later phases that have not yet been obtained.
    (E) Sources of Development Resources. You must actively enlist 
other stakeholders who are vested in and can provide significant 
financial assistance to your revitalization effort. Sources of 
resources that can be used for leveraging may include:
    (1) Public, private, and non-profit entities, including LIHTC 
purchasers;
    (2) State and local Housing Finance Agencies;
    (3) Local governments.
    (4) The city's housing and/or redevelopment agency or other 
comparable agency. HUD will consider this to be a separate entity with 
which you are partnering if your PHA is also a redevelopment agency or 
otherwise has citywide responsibilities.
    (a) You are strongly urged to seek a pledge of Community 
Development Block Grant (CDBG) funds for improvements to public 
infrastructure such as streets, water mains, etc. related to the 
revitalization effort. CDBG funds are awarded by HUD by formula to 
units of general local government and to states, which may then award a 
grant or loan to a PHA, a partnership, a non-profit organization, or 
other entity for revitalization activities, including loans to a 
project's for-profit partnership.

[[Page 49777]]

More information about the CDBG Program can be found at www.hud.gov/offices/cpd/index.cfm.
    (b) The city, county or state may provide HOME funds to be used in 
conjunction with HOPE VI funds. The Home Investment Partnership Program 
provides housing funds that are distributed from HUD to units of 
general local governments and states. Funds may be used for new 
construction, rehabilitation, acquisition of standard housing, 
assistance to homebuyers, and tenant-based rental assistance. Current 
legislation allows HOME funds to be used in conjunction with HOPE VI 
funds, but they may not be used in conjunction with Public Housing 
Capital Funds under Section 9(d) of the 1937 Act. Information about the 
HOME Program can be found at: www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm.
    (5) Foundations.
    (6) Government Sponsored Enterprises such as the Federal Home Loan 
Bank, Fannie Mae, and Freddie Mac.
    (7) HUD and other Federal agencies.
    (8) Financial institutions, banks or insurers.
    (9) Other private funders.
    (F) CSS Resources. In order to achieve quantifiable self-
sufficiency results, you must form partnerships with organizations that 
are skilled in the delivery of services to residents of public housing 
and that can provide commitments of resources to support those 
services. Leveraging scarce HOPE VI CSS funds with other funds and 
services is critical to the sustainability of CSS activities so that 
they will continue after the HOPE VI funds have been expended.
    (1) Types of CSS Resources.
    The dollar value of in-kind contributions related to the provision 
of CSS activities that will contribute to the successful transformation 
of the lives of residents include:
    (a) Materials;
    (b) A building;
    (c) A lease on a building;
    (d) Other infrastructure;
    (e) Time and services contributed by volunteers;
    (f) Staff salaries and benefits; and
    (g) Supplies.
    Note that wages projected to be paid to residents through jobs 
provided by CSS Partners will not be counted as leverage.
    (2) Sources of CSS Resources. See Section XI(C) for a list of the 
kinds of organization, agencies, and other possible resource providers.
    (G) Rating Factor: Leveraging--17 Points Total.
    (1) Development Leveraging--7 Points.
    For each commitment document, HUD will evaluate the strength of 
commitment and add the amounts that are acceptably documented. HUD will 
then calculate the ratio of the amount of HUD funds requested to the 
amount of funds that HUD deems acceptably documented. HUD will round 
figures to two decimal points, using standard rounding rules.
    (a) You will receive 7 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS 
or administration) to the dollar value of documented, committed 
development resources from other sources is 1:3 or higher.
    (b) You will receive 6 Points if the ratio is between 1:2.50 and 
1:2.99.
    (c) You will receive 5 Points if the ratio is between 1:20 and 
1:2.49.
    (d) You will receive 4 Points if the ratio is between 1:1.50 and 
1:1.99.
    (e) You will receive 3 Points if the ratio is between 1:1. 0 and 
1:1.49.
    (f) You will receive 2 Points if the ratio is between 1:0.50 and 
1:0.99.
    (g) You will receive 1 Point if the ratio is between 1:0.25 to 
1:0.50.
    (h) You will receive 0 Points if the ratio is less than 1:0.25 or 
there is inadequate information in your application to rate this 
factor.
    (2) CSS Leveraging.
    (a) Amount of CSS Leveraged Resources--5 Points.
    (i) You will receive 5 Points if the ratio of the amount of HOPE VI 
funds requested for CSS activities to the dollar value of documented, 
committed CSS resources leveraged from other sources is 1:4 or higher. 
If no HOPE VI funds are requested for CSS activities because all CSS 
funds will come from outside sources, all adequately-documented funds 
from such outside sources will be counted and you will receive 5 
Points.
    (ii) You will receive 4 Points if the ratio is between 1:3.5 and 
1:4.
    (iii) You will receive 3 Points if the ratio is between 1:3 and 
1:3.5.
    (iv) You will receive 2 Points if the ratio is between 1:2.5 and 
1:3.
    (v) You will receive 1 Point if the ratio is between 1:2 and 1:2.5.
    (vi) You will receive 0 Points if the ratio is less than or equal 
to 1:2, or there is inadequate information in your application to rate 
this factor.
    (b) Variety of CSS Leveraged Resources--1 Point.
    You will receive 1 Point if you have obtained eligible leveraging 
funds from a variety of sources, including 3 or more kinds of entities 
listed below:
    (i) State and local governments;
    (ii) Private service providers;
    (iii) Nonprofits/faith based organizations;
    (iv) Financing entities;
    (v) Developers.
    (3) Anticipatory Resources Leveraging--2 Points.
    In many cases, PHAs, cities, or other entities may have carried out 
revitalization activities (including demolition) in previous years in 
anticipation of your receipt of a HOPE VI Revitalization grant. These 
expenditures, if documented, may be counted as leveraged anticipatory 
resources. They cannot duplicate any other type of resource, and cannot 
be counted towards match.
    (a) You will receive 2 Points if the ratio of your documented 
anticipatory resources to the amount of HOPE VI funds requested for 
physical development activities (not including CSS or administration) 
is 1:1.0 or higher.
    (b) You will receive 0 Points if the ratio of your documented 
anticipatory resources to the amount of HOPE VI funds requested for 
physical development activities (not including CSS or administration) 
resources is less than 1:.1.
    (4) Collateral Investment Leveraging--2 Points.
    Collateral Investment includes physical redevelopment activities 
underway or projected to be completed before October 2007 that will 
enhance the new HOPE VI community, but will occur whether or not the 
public housing project is revitalized. This includes economic or other 
kinds of development activities that would have occurred with or 
without the anticipation of HOPE VI-funds. These resources cannot 
duplicate any other type of resource, and cannot be counted as match. 
The resources are subject to the same restrictions regarding and 
documentation. Collateral investment resources are counted as leverage 
only and cannot be counted towards match. Examples of Collateral 
Investments include schools, libraries, subway or light rail stations, 
improved roads, day care facilities, and local medical facilities.
    (a) You will receive 2 Points if the ratio of your documented 
collateral resources to the amount of HOPE VI funds requested for 
physical development activities (not including CSS or administration) 
is 1:1.0 or higher.
    (b) You will receive 0 Points if the ratio of your documented 
collateral resources to the amount of HOPE VI funds requested for 
physical development activities (not including CSS or administration) 
is less than 1:.1.

[[Page 49778]]

X. Resident and Community Involvement

    (A) Requirements and Thresholds.
    (1) General. You are required to involve residents and the broader 
community in the planning, proposed implementation, and management of 
your Revitalization Plan. HUD will evaluate the nature, extent, and 
quality of the resident and community outreach and involvement you have 
achieved by the time your application is submitted, as well as your 
plans for continued and/or additional outreach and involvement.
    (2) Resident Training Session. You must conduct at least one 
training session for residents of the severely distressed project on 
the HOPE VI development process. HUD does not prescribe the content of 
this meeting.
    (3) Public Meetings.
    (a) You must conduct at least three public meetings with residents 
and the broader community, in order to involve them in a meaningful way 
in the process of developing the Revitalization Plan and preparing the 
application.
    (b) During the course of the three meetings, you must address the 
following issues listed below (i.e., all issues need not be addressed 
at each meeting):
    (i) The HOPE VI planning and implementation process;
    (ii) The proposed physical plan, including site and unit design;
    (iii) The extent of proposed demolition;
    (iv) Planned community and supportive service activities;
    (v) Other proposed revitalization activities;
    (vi) Relocation issues, including relocation planning, mobility 
counseling, and maintaining the HOPE VI community planning process 
during the demolition and reconstruction phases where temporary 
relocation is involved;
    (vii) Reoccupancy plans and policies, including site-based waiting 
lists; and
    (viii) Section 3 and employment opportunities to be created as a 
result of redevelopment activities.
    (4) All training sessions and meetings must be held in facilities 
that are accessible to persons with disabilities, provide services such 
as day care, transportation, and sign language interpreters as 
appropriate, and as practical and applicable, be conducted in English 
and the language(s) most appropriate for the community.
    (5) The training session and each of the public meetings must be 
held after the publication date of this NOFA.
    Threshold: In your application you must provide a signed 
certification that the above resident training session and public 
meetings were held and that the topics listed above were covered. The 
certification must include the dates of the training session and 
meetings. If, after the deficiency cure period, this certification is 
not included in your application, the application will be ineligible 
for funding.
    (B) Resident and Community Involvement Rating--3 Points.
    You will receive 1 Point for each of the following criteria met in 
your application, which are over and above the threshold requirements 
listed in Section (A) above.
    (1) You demonstrate that you have communicated regularly and 
significantly with affected residents and members of the surrounding 
community about the development of your Revitalization Plan by giving 
residents and community members information about your actions 
regarding the Revitalization Plan and providing a forum where residents 
and community members can contribute recommendations and opinions with 
regard to the development and implementation of the Revitalization 
Plan.
    (2) You describe your efforts, past and proposed, to make 
appropriate HUD communications about HOPE VI available (i.e., a copy of 
the NOFA, computer access to the HUD website, etc.).
    (3) You describe your plans to provide affected residents with 
reasonable training on the general principles of development, technical 
assistance, and capacity building so that they may participate 
meaningfully in the development and implementation process.

XI. Community and Supportive Services

    (A) CSS Program Requirements.
    (1) Your CSS Team and Partners.
    (a) The term ``CSS Team'' refers to PHA staff members and/or any 
consultants who will have the responsibility to design, implement, and 
manage your CSS Program.
    (b) The term ``CSS Partners'' refers to the agencies and 
organizations that you will work with to provide supportive services 
for residents. A Partner could be a local service organization such as 
a Boys or Girls Club that donates its building and staff to the 
program, or an agency such as the local TANF agency that works with you 
to ensure that their services are coordinated and comprehensive.
    (2) Maximum CSS grant amount. Consistent with Section 24(j)(3) of 
the 1937 Act, you may use an amount up to 15 percent of the total HOPE 
VI Grant to pay the costs of CSS activities. You may spend additional 
sums on CSS activities using donations, other HUD funds made available 
for that purpose, or other PHA funds. See Section IX(A)(2) of this NOFA 
for CSS grant matching requirements.
    (3) CSS Endowment Trust. Consistent with Section 24(d)(2) of the 
Act, you may deposit up to 15 percent of your HOPE VI grant (the 
maximum amount of the award allowable for CSS activities) into an 
Endowment Trust to provide CSS activities. In order to establish an 
Endowment Trust, you must first execute with HUD a HOPE VI Endowment 
Trust Addendum to the Grant Agreement. When reviewing your request to 
set up an Endowment Trust, HUD will take into consideration your 
ability to pay for current CSS activities with HOPE VI or other funds 
and the projected long-term sustainability of the Endowment Trust to 
carry out those activities.
    (4) Subgrant Agreements. You may enter into subgrant agreements 
with non-profit or State or local governments for the performance of 
CSS activities in accordance with your approved CSS work plan.
    (5) Neighborhood Networks. All Revitalization grantees will be 
required to establish Neighborhood Networks Centers. This program 
provides residents with on-site access to computer and training 
resources. HUD will make technical assistance available to each PHA 
where needed. Grantees may use HOPE VI funds to establish Neighborhood 
Networks. In addition, $5 million will be made available for 
Neighborhood Networks in accordance with Section II(C) of this NOFA. 
More information on the requirements of the Neighborhood Networks 
Center Program is available on the Neighborhood Networks website at 
www.hud.gov/nnw/nnwindex.html.
    (6) CSS activities must be consistent with State and local welfare 
reform requirements and goals.
    (7) The objectives of your CSS Program must be results-oriented, 
with quantifiable goals and outcomes that can be used to measure 
progress and make changes in activities as necessary.
    (8) CSS activities must be of an appropriate scale, type, and 
variety to meet the needs of all residents (including adults, youth 
ages 16 to 21, and children) of the severely distressed project, 
including residents remaining on-site, residents who will relocate 
permanently to other PHA units or Section 8 housing, residents who will 
relocate temporarily during the

[[Page 49779]]

construction phase, and new residents of the revitalized units.
    (9) Non-public housing residents may also participate in CSS 
activities, as long as the primary participants in the activities are 
residents as described in Section (8) above.
    (10) Your CSS activities must be coordinated with the efforts of 
other service providers in your locality, including non-profit 
organizations, educational institutions, and state and local programs.
    (11) CSS activities must be well integrated with the physical 
development process, both in terms of timing and the provision of 
facilities to house on-site service and educational activities.
    (12) CSS Programs must be carefully planned so that they will be 
sustainable after the HOPE VI grant period ends.
    (B) CSS activities may include, but are not limited to:
    (1) Educational activities that promote learning and serve as the 
foundation for young people from infancy through high school 
graduation, helping them to succeed in academia and the professional 
world. Such activities, which include after school programs, mentoring, 
and tutoring, must be created with strong partnerships with public and 
private educational institutions.
    (2) Adult educational activities, including remedial education, 
literacy training, tutoring for completion of secondary or post-
secondary education, assistance in the attainment of certificates of 
high school equivalency, and English as a Second Language courses, as 
needed.
    (3) Job readiness and retention activities, which frequently are 
key to securing private sector commitments to the provision of jobs.
    (4) Employment training activities that include results-based job 
training, preparation, counseling, development, placement, and follow-
up assistance after job placement.
    (5) Programs that provide entry-level, registered apprenticeships 
in construction, construction-related, maintenance, or other related 
activities. A registered apprenticeship program is a program which has 
been registered with either a State Apprenticeship Agency recognized by 
the Department of Labor's (DOL) Office of Apprenticeship Training, 
Employer and Labor Services (OATELS) or, if there is no recognized 
State agency, by OATELS. See also DOL regulations at 29 CFR part 29.
    (6) Life skills training on topics such as parenting, consumer 
education, and family budgeting.
    (7) Creation and operation of credit unions to serve residents, 
including capitalization and technical assistance to foster new credit 
unions on-site and to encourage existing community credit unions to 
expand their coverage to include on-site coverage.
    (8) Homeownership counseling that is scheduled to begin promptly 
after grant award so that, to the maximum extent possible, qualified 
residents will be ready to purchase new homeownership units when they 
are completed. The Family Self-Sufficiency Program can also be used to 
promote homeownership, providing assistance with escrow accounts and 
counseling.
    (9) Coordinating with health care services providers or providing 
on-site space for a health clinic, doctors, a wellness center, 
dentists, etc. that will primarily serve the public housing residents. 
HOPE VI funds may not be used to provide direct medical care to 
residents.
    (10) Substance/alcohol abuse treatment and counseling.
    (11) Activities that address domestic violence treatment and 
prevention.
    (12) Child care services that provide sufficient hours of operation 
to facilitate parental access to education and job opportunities, serve 
appropriate age groups, and stimulate children to learn.
    (13) Transportation, as necessary, to enable all family members to 
participate in available CSS activities and/or to commute to their 
places of employment.
    (14) Entrepreneurship training and mentoring, with the goal of 
establishing resident-owned businesses.
    (C) CSS Partnerships and Resources. The following are the kinds of 
organizations and agencies that can provide you with in-kind, 
financial, and other types of resources necessary to carry out and 
sustain your CSS activities.
    (1) Local Boards of Education, public libraries, local community 
colleges, institutions of higher learning, non-profit or for-profit 
educational institutions, and public/private mentoring programs that 
will lead to new or improved educational facilities and improved 
educational achievement of young people in the revitalized development, 
from birth through higher education.
    (2) TANF agencies/welfare departments.
    (3) Job development organizations that link private sector or non-
profit employers with low-income prospective employees.
    (4) Workforce Development Agencies.
    (5) Organizations that provide residents with job readiness and 
retention training and support.
    (6) Economic development agencies such as the Small Business 
Administration, which provide entrepreneurial training and small 
business development centers.
    (7) National corporations, local businesses, and other large 
institutions such as hospitals that can commit to provide entry-level 
jobs. Employers may agree to train residents or commit to hire 
residents after they complete jobs preparedness or training programs 
that are provided by you, other partners, or the employer itself.
    (8) Programs that integrate employment training, education, and 
counseling, and where creative partnerships with local boards of 
education, state charter schools, TANF, foundations, and private 
funding sources have been or could be established, such as:
    (a) Youthbuild. HUD's Youthbuild Program provides grants to 
organizations that provide education and job training to young adults 
ages 16 to 24 who have dropped out of school. Participants spend half 
their time rehabilitating low-income housing and the other half in 
educational programs. Youthbuild provides a vehicle for achieving 
compliance with the objective of Section 3, as described in Section 
XIII(D)(2)(a) of this NOFA. More information on HUD's Youthbuild 
Program can be found at www.hud.gov/progdesc/youthb.cfm.
    (b) Step-Up, an apprenticeship-based employment and training 
program that provides career potential for low-income persons by 
enabling them to work on construction projects that have certain 
prevailing wage requirements. Step-Up encourages work by offering 
apprenticeships through which low-income participants earn wages while 
learning skills on the job, supplemented by classroom-related 
instruction. Step-Up can also contribute to a PHA's effort to meet the 
requirements of Section 3. More information can be found at 
www.hud.gov/progdesc/stepup.cfm.
    (9) Sources of capital such as foundations, banks, credit unions, 
and charitable, fraternal, and business organizations.
    (10) Non-profit organizations such as the Girl Scouts and the Urban 
League, both of which have Memoranda of Agreement (MOA) with HUD. 
Copies of these MOAs can be found on the HOPE VI Home Page at 
www.hud.gov/hopevi.
    (11) Civil rights organizations.
    (12) Local area agencies on aging.
    (13) Local agencies and organizations serving persons with 
disabilities.
    (14) Faith-based and Other Community-based Organizations. HUD 
encourages you to partner or subgrant

[[Page 49780]]

with grassroots faith-based and other community-based organizations to 
provide CSS activities. Such organizations have a strong history of 
providing vital community services such as job training, childcare, 
relocation supportive services, youth programs, technology training, 
transportation, substance abuse programs, crime prevention, and health 
services. They also provide counseling for individuals and families on 
fair housing rights, and homeownership and rental housing opportunities 
in the neighborhood of their choice. HUD believes that grassroots 
organizations, e.g. civic organizations, congregations, national and 
local self-help homeownership organizations, faith-based and other 
community-based organizations should be more effectively used, and has 
placed a high priority on expanding opportunities for grassroots 
organizations to participate in developing solutions for their own 
neighborhoods. See HUD's Center for Faith-Based and Community 
Initiatives website at www.hud.gov/offices/fbci/index.cfm.
    (a) HUD will consider an organization a ``grassroots'' organization 
if it is headquartered in the local community to which it provides 
services; and
    (i) Has an annual social services budget of no more than $300,000. 
This cap includes only the portion of the organization's budget 
allocated to providing social services. It does not include other 
portions of the budget such as salaries and expenses; or
    (ii) Has six or fewer full-time equivalent employees.
    (b) Local affiliates of national organizations are not considered 
``grassroots.'' (D) Rating Factor: CSS Program--6 Points Total. In your 
application you will describe your CSS plan, including any plans to 
implement a CSS Endowment Trust. Each of the following subfactors will 
be rated separately.
    (1) You will receive 2 Points if you demonstrate that you will be 
able to provide case management within 30 days from the date of grant 
award execution so that residents who will be relocated have time to 
participate and benefit from CSS activities before leaving the site.
    (2) You will receive 1 Point if you have proposed a high quality, 
results-oriented CSS plan that includes strong components of the basic 
elements of education, job training, and services that will enable all 
affected residents to transform their lives.
    (3) You will receive 1 Point if you provide letters from a variety 
of experienced organizations and service providers that represent 
strong relationships and commitments to participate in your CSS 
activities and accomplish your CSS goals of the program.
    (4) You will receive 1 Point if your CSS Program has been developed 
in response to a rigorous resident needs identification process and 
directly responds to the identified needs.
    (5) You will receive 1 Point if your CSS Program includes a case 
management system that provides services to individual residents.

XII. Relocation

    (A) Definition. You must provide suitable, decent, safe, and 
sanitary housing for each family required to relocate as a result of 
revitalization activities under your Revitalization Plan. Any person 
(including individuals, partnerships, corporations or associations) who 
moves from real property or moves personal property from real property 
directly (1) because of a written notice to acquire real property in 
whole or in part, or (2) because of the acquisition of the real 
property, in whole or in part, for a HUD-assisted activity, is covered 
by Federal relocation statute and regulations. Specifically, this type 
of move is covered by the acquisition policies and procedures and the 
relocation requirements of the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (URA), and the implementing 
government-wide regulation at 49 CFR part 24. The relocation 
requirements of the URA and the government-wide regulations cover any 
person who moves permanently from real property or moves personal 
property from real property directly because of acquisition, 
rehabilitation, or demolition for an activity undertaken with HUD 
assistance.
    (B) Relocation Guidelines.
    (1) The HOPE VI Relocation Plan is intended to ensure that PHAs 
adhere to the URA and that all residents who have been or will be 
temporarily or permanently relocated from the site are provided with 
CSS activities such as mobility counseling and direct assistance in 
locating housing.
    (2) You are encouraged to involve HUD-approved housing counseling 
agencies, including faith-based, non-profit and/or other organizations, 
and/or individuals in the community to which relocatees choose to move, 
in order to ease the transition and minimize the impact on the 
neighborhood. HUD will view favorably innovative programs such as 
community mentors, support groups, and the like.
    (3) If applicable, you are encouraged to work with surrounding 
jurisdictions to assure a smooth transition if residents choose to move 
from your jurisdiction to the surrounding area.
    (C) Standard Relocation Requirements. You must carry out relocation 
activities in compliance with a relocation plan that conforms with the 
following statutory and regulatory requirements, as applicable:
    (1) Relocation or temporary relocation carried out as a result of 
rehabilitation under an approved Revitalization Plan is subject to the 
URA, the URA regulations at 24 CFR part 24, and regulations at 24 CFR 
968.108 or successor part.
    (2) Relocation carried out as a result of acquisition under an 
approved Revitalization Plan is subject to the URA and regulations at 
24 CFR 941.207 or successor part.
    (3) Relocation carried out as a result of disposition under an 
approved Revitalization Plan is subject to Section 18 of the 1937 Act, 
as amended.
    (4) Relocation carried out as a result of demolition under an 
approved Revitalization plan is subject to the URA.
    (D) Threshold: The HOPE VI Revitalization Relocation Plan. Each 
applicant must complete a HOPE VI Relocation Plan. In your application, 
you must submit a certification that the HOPE VI Relocation Plan has 
been completed, and that it conforms to the URA requirements as 
described in Section XII(C) above.
    (E) Rating Factor: Relocation--5 Points Total.
    (1) You will receive 5 Points if you provide a certification that 
all of the residents of the targeted severely distressed public housing 
project have been relocated as of the HOPE VI Revitalization 
application due date. If you qualify for these 5 Points, you are not 
eligible for any additional Points described below.
    (2) You will receive 4 Points if you describe in your application:
    (a) An effective plan to track residents who have been or will be 
relocated from the targeted project; and
    (b) A comprehensive plan that will provide mobility counseling and 
direct assistance in locating housing to residents who choose Section 8 
assistance that will help them to fully understand the full range of 
housing opportunities available to them in neighborhoods throughout the 
jurisdiction and to find housing in non-poverty areas.
    (3) You will receive 2 Points if you meet only one of the factors 
described in Section (1) above.

[[Page 49781]]

    (4) You will receive 0 Points if your application does not meet 
either of the factors described in Section (2) above, or if there is 
inadequate information in the application to rate this factor.

XIII. Fair Housing and Equal Opportunity

    (A) Housing and Services for Persons with Disabilities.
    (1) Accessibility Requirements. HOPE VI developments are subject to 
the accessibility requirements contained in several Federal laws. All 
applicable laws must be read together and followed. PIH Notice 2002-1, 
available at http://www.hud.gov/offices/pih/publications/notices/02/pih2002-1.pdf, provides an overview of all pertinent laws and 
implementing regulations pertaining to HOPE VI. Also see HUD's Fair 
Housing website at www.hud.gov/groups/fairhousing.cfm. Under the Fair 
Housing Act of 1988, all new construction of covered multifamily 
buildings must include certain features of accessible and adaptable 
design. Units covered are all those in buildings with four or more 
units and one or more elevators, and all ground floor units with living 
area located entirely on the ground floor in buildings without 
elevators. The accessible design requirements are provided on HUD's 
FHEO website at http://www.hud.gov/fhe/fhefha5.html#sect3.
    (2) Specific Fair Housing requirements are:
    (a) The Fair Housing Act (42 U.S.C. 3601-19) and regulations at 24 
CFR part 100.
    (b) The prohibitions against discrimination on the basis of 
disability, including requirements units that, in certain multifamily 
housing, meet the Uniform Federal Accessibility Standards and that you 
make reasonable accommodations to individuals with disabilities under 
Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and 
regulations at 24 CFR part 8.
    (c) Title II of the Americans with Disabilities Act (42 U.S.C 12101 
et seq.) and its implementing regulations at 28 CFR part 36.
    (d) The Architectural Barriers Act of 1968 (42 U.S.C. 4151) and the 
regulations at 24 CFR part 40.
    (B) Rating Factor: FHEO 7 Points Total.
    (1) Accessibility--2 Points.
    (a) Over and above the accessibility requirements listed above, you 
will receive 2 Points if you describe a plan to:
    (i) Provide accessibility in homeownership units;
    (ii) Provide one-bedroom accessible rental units for single 
individuals with disabilities;
    (iii) Provide for accessibility modifications, where necessary, to 
Section 8 units of residents who relocate from the targeted project due 
to revitalization activities;
    (iv) Where playgrounds are planned, propose ways to make them 
accessible to children with disabilities, over and above statutory and 
regulatory requirements; and
    (v) Where possible, design units with accessible front entrances.
    (b) You will receive 1 Point if your application does not propose 
to implement all of the accessibility priorities stated above, but 
provides a detailed explanation as to why you cannot implement all of 
the priorities.
    (c) You will receive 0 Points if you fail to provide a description 
that meets the specifications above, or if there is inadequate 
information in your application to rate this factor.
    (2) Adaptability--1 Point.
    (a) You will receive 1 Point if you specifically describe a plan to 
meet the adaptability standards adopted by HUD at 24 CFR 8.3 that apply 
to those units not otherwise covered by the accessibility requirements. 
Adaptability is the ability of certain elements of a dwelling unit, 
such as kitchen counters, sinks, and grab bars, to be added to, raised, 
lowered, or otherwise altered, to accommodate the needs of persons with 
or without handicaps, or to accommodate the needs of persons with 
different types or degrees of disability. For example, in a unit 
adaptable for a hearing-impaired person, the wiring for visible 
emergency alarms may be installed so that the unit can be made ready 
for occupancy by a hearing-impaired person. For information on 
adaptability, see www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf.
    (b) You will receive 0 Points if your application does not 
adequately describe a plan as specified above, or if there is 
inadequate information in your application to rate this factor.
    (3) Visitability--1 Point.
    (a) You will receive 1 Point if you specifically describe a plan to 
meet the visitability standards adopted by HUD that apply to units not 
otherwise covered by the accessibility requirements. Visitability 
standards allow a person with mobility impairments access into the 
home, but do not require that all features be made accessible. A 
visitable home also serves persons without disabilities, such as a 
mother pushing a stroller or a person delivering a large appliance. See 
www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf for 
information on visitability. The two standards of visitability are:
    (i) At least one entrance at grade (no steps), approached by a 
sidewalk; and
    (ii) The entrance door and all interior passage doors are at least 
2 feet 10 inches wide, allowing 32 inches of clear passage space.
    (b) You will receive 0 Points if your application does not 
adequately describe a visitability plan as specified above, or if there 
is inadequate information in your application to rate this factor.
    (C) Fair Housing.
    (1) Threshold: Compliance with Fair Housing and Civil Rights Laws. 
All applicants and their subrecipients must comply with all Fair 
Housing and civil rights laws, statutes, regulations and executive 
orders as enumerated in 24 CFR 5.105(a).
    HUD will not rate your application for funding under this NOFA if, 
as of the HOPE VI application due date, you:
    (a) Have been charged with a systemic violation of the Fair Housing 
Act by the Secretary alleging ongoing discrimination;
    (b) Are a defendant in a Fair Housing Act lawsuit filed by the 
Department of Justice alleging an ongoing pattern or practice of 
discrimination; or
    (c) Have received a letter of non-compliance 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.
    HUD's decision regarding whether a charge, lawsuit, or a letter of 
findings has been resolved to the satisfaction of the Department as of 
the application due date 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. A charge, lawsuit, or letter of findings issued after the 
application due date will not affect an applicant's eligibility under 
this threshold. Examples of such actions which must happen before the 
application due date include, but are not limited to:
    (i) A voluntary compliance agreement signed by all parties in 
response to the letter of findings;
    (ii) A HUD-approved conciliation agreement signed by all parties; 
or
    (iii) An out-of-court settlement of a Department of Justice lawsuit 
under the Fair Housing Act.
    (2) Threshold: Desegregation Orders. You must be in full compliance 
with any desegregation or other court order

[[Page 49782]]

related to Fair Housing (e.g., Title VI of the Civil Rights Act of 
1964, the Fair Housing Act, and Section 504 of the Rehabilitation Act 
of 1973) that affects your public housing program and that is in effect 
on the application due date.
    (3) Site and Neighborhood Standards for Replacement Housing. You 
must comply with the Fair Housing Act and Title VI of the Civil Rights 
Act of 1964, and regulations thereunder. In determining the location of 
any replacement housing, you must comply with either the site and 
neighborhood standards regulations at 24 CFR 941.202 (b-d) or with the 
standards outlined below.
    (a) Goals of the HOPE VI Program. The HOPE VI Program provides 
resources to address the needs of severely distressed public housing 
projects within an administrative framework of less intrusive Federal 
oversight and increased reliance on informed local decision making. 
HOPE VI Grants are made so that Grantees can develop and implement 
comprehensive strategies that address not only the physical and 
management needs of the projects, but also the social and economic 
needs of the residents and the surrounding community. You are expected 
to ensure that your revitalization plan will expand assisted housing 
opportunities in non-poor and non-minority neighborhoods and/or will 
accomplish substantial revitalization in the Project and its 
surrounding neighborhood. You are also expected to ensure that eligible 
households of all races and ethnic groups will have equal and 
meaningful access to the housing.
    (b) Objectives in Selecting HUD-Assisted Sites. The fundamental 
goal of HUD's fair housing policy is to make full and free housing 
choice a reality. Housing choice requires that households of all races 
can freely decide the type of neighborhood where they wish to reside, 
that minority neighborhoods are no longer deprived of essential public 
and private resources, and that stable, racially-mixed neighborhoods 
are available as a meaningful choice for all. To make full and free 
housing choice a reality, sites for HUD-assisted housing investment 
should be selected so as to advance two complementary goals:
    (i) Expand assisted housing opportunities in non-minority 
neighborhoods, opening up choices throughout the metropolitan area for 
all assisted households; and
    (ii) Reinvest in minority neighborhoods, improving the quality and 
affordability of housing there to represent a real choice for assisted 
households.
    (c) Compliance with Fair Housing Act and Title VI of the Civil 
Rights Act of 1964. You must comply with the Fair Housing Act and Title 
VI of the Civil Rights Act of 1964, and implementing regulations, in 
determining the location of any replacement housing.
    (d) Grantee's Election of Requirements. You may, at your election, 
separately with regard to each site you propose, comply with the 
development regulations regarding Site and Neighborhood Standards (24 
CFR 941.202 (b)-(d)), or with the Site and Neighborhood Standards 
contained in this Section.
    (e) Replacement housing located on site or in the surrounding 
neighborhood. Replacement housing under HOPE VI that is located on the 
site of the existing project or in its surrounding neighborhood will 
not require independent approval under Site and Neighborhood Standards, 
since HUD will consider the scope and impact of the proposed 
revitalization to alleviate severely distressed conditions at the 
public housing project and its surrounding neighborhood in assessing 
the application to be funded under this NOFA.
    (f) Off-Site Replacement Housing Located Outside of the Surrounding 
Neighborhood. Unless you demonstrate that there are already significant 
opportunities in the metropolitan area for assisted households to 
choose non-minority neighborhoods (or these opportunities are under 
development), HOPE VI replacement housing not covered by Section (e) 
above may not be located in an area of minority concentration (as 
defined in paragraph (g) below) without the prior approval of HUD. Such 
approval may be granted if you demonstrate to the satisfaction of HUD 
that:
    (i) You have made determined and good faith efforts, and found it 
impossible with the resources available, to acquire an appropriate 
site(s) in an area not of minority concentration, or
    (ii) The replacement housing, taking into consideration both the 
CSS activities or other revitalizing activities included in the 
Revitalization Plan, and any other revitalization activities in 
operation or firmly planned, will contribute to the stabilization or 
improvement of the neighborhood in which it is located, by addressing 
any serious deficits in services, safety, economic opportunity, 
educational opportunity, and housing stock.
    (g) Area of Minority Concentration. The term ``area of minority 
concentration'' is any neighborhood in which:
    (i) The percentage of households in a particular racial or ethnic 
minority group is at least 20 Points higher than the percentage for the 
housing market area; i.e., the Metropolitan Statistical Area (MSA) in 
which the proposed housing is to be located, or
    (ii) The neighborhood's total percentage minority is at least 20 
Points higher than the percentage for MSA.
    (4) Additional Nondiscrimination Requirements. In addition to 
compliance with the civil rights requirements listed at 24 CFR 
5.105(a), you and your subrecipients must comply with:
    (a) The nondiscrimination in employment requirements of Title VII 
of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.);
    (b) The Equal Pay Act (29 U.S.C. 206(d);
    (c) Title IX of the Education Amendments Act of 1972; and
    (d) The Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
seq.).
    (5) Affirmatively Furthering Fair Housing. Section 808(e)(5) of the 
Fair Housing Act requires HUD to affirmatively further fair housing. 
HUD requires the same of its grant recipients. If you are a successful 
applicant, you will have a duty to affirmatively further fair housing 
opportunities for classes protected under the Fair Housing Act. 
Protected classes are:
    (a) Race;
    (b) Color;
    (c) National origin;
    (d) Religion;
    (e) Sex;
    (f) Disability; and
    (g) Familial status.
    (6) Ensuring the Participation of Disadvantaged Firms. The 
Department is committed to ensuring that small businesses, small 
disadvantaged businesses, minority firms, women's business enterprises, 
and labor surplus area firms participate fully in HUD's direct 
contracting and in contracting opportunities generated by HUD grant 
funds. Too often, these businesses still experience difficulty 
accessing information and successfully bidding on Federal contracts. 
HUD regulations at 24 CFR 85.36(e) require recipients of assistance 
(grantees and subgrantees) to take all necessary affirmative steps in 
contracting for purchase of goods or services to assure that these 
disadvantaged firms are used when possible. Affirmative steps include:
    (a) Placing disadvantaged firms on solicitation lists;
    (b) Assuring that disadvantaged firms are solicited whenever they 
are potential sources;
    (c) Dividing total requirements, when economically feasible, into 
smaller tasks

[[Page 49783]]

or quantities to permit maximum participation by disadvantaged firms;
    (d) Establishing delivery schedules, where the requirement permits, 
which encourage participation by disadvantaged firms;
    (e) Using the services and assistance of the Small Business 
Administration and the Minority Business Development Agency of the 
Department of Commerce; and
    (f) Requiring the prime contractor, if subcontracts are to be let, 
to take the affirmative steps listed in Sections (a) through (e) above.
    (D) Rating Factor: Fair Housing--3 Points Total.
    (1) Fair Housing--2 Points.
    (a) You will receive 2 Points if your application specifically 
describes:
    (i) Your efforts to attract families with a broad spectrum of 
incomes to the revitalized site through intensive affirmative marketing 
efforts and how these efforts contribute to the deconcentration of low-
income neighborhoods;
    (ii) Your efforts to target your marketing and outreach activities 
to all segments of the population on a non-discriminatory basis, 
promote housing choice and opportunity throughout your jurisdiction and 
contribute to the deconcentration of both minority and low-income 
neighborhoods. In your application, you must describe how your outreach 
and marketing efforts will reach out to persons of different races and 
ethnic groups, families with or without children, persons with 
disabilities and able-bodied persons, and the elderly; and
    (iii) The specific steps you plan to take through your proposed 
activities to affirmatively further fair housing. These steps can 
include, but are not limited to:
    (A) Addressing impediments to fair housing choice relating to your 
operations;
    (B) Working with local jurisdictions to implement their initiatives 
to affirmatively further fair housing;
    (C) Implementing, in accordance with Departmental guidance, 
relocation plans that result in increased housing choice and 
opportunity for residents affected by HOPE VI revitalization activities 
funded under this NOFA:
    (D) Implementing admissions and occupancy policies that are 
nondiscriminatory and help reduce racial and national origin 
concentrations; and
    (E) Initiating other steps to remedy discrimination in housing and 
promote fair housing rights and fair housing choice.
    (b) You will receive 1 Point if you address all of the above issues 
in a general way.
    (c) You will receive 0 Points if you do not address all of the 
above issues, or if there is insufficient information to rate this 
factor.
    (2) Economic Opportunities for Low and Very Low-Income Persons 
(Section 3)--1 Point.
    (a) HOPE VI grantees must comply with Section 3 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701u) (Economic Opportunities 
for Low- and Very Low-Income Persons in Connection with assisted 
Projects) and its implementing regulations at 24 CFR part 135. 
Information about Section 3 can be found at HUD's Section 3 website at 
www.hud.gov/fhe/sec3over.html.
    (b) You will receive 1 Point if you describe a feasible plan to 
implement Section 3 that not only meets the minimum requirements 
described in Section (a) above but also exceeds those requirements. 
Your plan must include your goals by age group, types of jobs and other 
opportunities to be provided, and plans for tracking and evaluation. 
Section 3 firms must be in place quickly so that residents are trained 
in time to take advantage of employment opportunities such as jobs and 
other contractual opportunities in the pre-development, demolition, and 
construction phases of the revitalization. Your Section 3 plan must 
demonstrate that you will, to the greatest extent feasible, direct 
training, employment and other economic opportunities to:
    (i) Low- and very low-income persons, particularly those who are 
recipients of government assistance for housing, and
    (ii) Business concerns which provide economic opportunities to low- 
and very low-income persons.
    (c) You will receive 0 Points if your plan to implement Section 3 
does not meet the standards listed in Section (b) above, or if there is 
inadequate information in your application to rate this factor.

XIV. Mixed Income Communities--6 Points Total

    (A) On-Site Housing--3 Points.
    Your proposed unit mix must be designed to achieve a mixed-income, 
well functioning community on the revitalized site. Reducing 
concentration in this context does not necessarily mean reducing 
density of housing units; a well-run, mixed-income housing community 
may actually have a higher density given the site's market conditions.
    (1) You will receive 3 Points if your application describes a unit 
mix of more than 35 percent public housing units.
    (2) You will receive 2 Points if your application describes a unit 
mix that is between 25 and 34 percent public housing units.
    (3) You will receive 1 Point if your application describes a unit 
mix of between 15 and 24 percent public housing units.
    (4) You will receive 0 Points if your application describes a unit 
mix that is less than 14 percent, or if there is inadequate information 
in your application to rate this factor.
    (B) Off-Site Housing--1 Point.
    (1) Although not required, you are encouraged to consider 
development of replacement housing in locations other than the original 
severely distressed site (i.e., off-site housing). Locating off-site 
housing in neighborhoods with low levels of poverty and/or low 
concentrations of minorities will provide maximized housing 
alternatives for low-income residents who are currently on-site and 
assist the goal of creating desegregated, mixed-income communities. The 
effect on-site will be to assist in the deconcentration of low-income 
residents and increase the number of replacement units.
    (2) Although it is acknowledged that off-site housing is not 
appropriate in some communities, if you do not propose to include off-
site housing in your Revitalization Plan, you are not eligible to 
receive this Point.
    (3) If you propose an off-site housing component in your 
application, you must be sure to include that component when you 
discuss other components (e.g. on-site housing, homeownership housing, 
etc.) Throughout your application, your unit counts and other numerical 
data must take into account the off-site component.
    (4) Threshold: If you propose to develop off-site housing, you MUST 
provide evidence in your application that you (not your developer) have 
site control of the property. Evidence may include an option to 
purchase the property, contingent solely on the receipt in the HOPE VI 
grant, satisfactory compliance with the environmental review 
requirements of accordance with Section XX of this NOFA, and the site 
and neighborhood standards in Section XIII(C)(3) of this NOFA. If you 
demonstrate site control through an option to purchase, the option must 
extend for at least 180 days after the application due date. If you 
propose to develop off-site housing and you do not provide acceptable 
site control, your entire application will be ineligible for funding.

[[Page 49784]]

    (5) Rating: You will receive 1 Point if you propose to develop an 
off-site housing component and document that you have:
    (a) Acquired the site; and
    (b) The site meets all environmental, and site and neighborhood 
standards.
    (C) Threshold: Market Rate Housing. If you include market rate 
housing in your Revitalization Plan, you must demonstrate that there is 
a demand for the housing units of the type, number, and size proposed 
in the location you have chosen. In your application you must provide a 
preliminary market assessment letter prepared by an independent, third 
party, credentialed market research firm or professional that describes 
its assessment of the demand and associated pricing structure for the 
proposed residential units and any community facilities, economic 
development, and retail structures, based on the market and economic 
conditions of the project area. If, after the cure period, this letter 
is not included in your application, it will be ineligible for funding.
    (D) Homeownership Housing--2 Points.
    The Department has placed the highest priority on increasing 
homeownership opportunities for low- and moderate-income persons, 
persons with disabilities, the elderly, minorities, and families where 
English may be a second language. Too often these individuals and 
families are shut out of the housing market through no fault of their 
own. HUD encourages applicants to work aggressively to open up the 
realm of homeownership.
    (1) Your application will receive 2 Points if you propose and 
describe a feasible, well-defined plan for homeownership. In your 
application, you will describe:
    (a) The purpose of your homeownership program;
    (b) The number of units planned and their location(s);
    (c) A description and justification of the families that will be 
targeted for the program;
    (d) The proposed source of your construction and permanent 
financing of the units; and
    (e) A description of the homeownership counseling you will provide 
to prospective families.
    (2) You will receive 0 Points for this factor if you do not propose 
to include homeownership units in your Revitalization Plan, your 
proposed program is not feasible and/or well defined, or there is 
inadequate information in your application to rate this factor.
    (E) Threshold: Zoning Approval. Your application must include a 
certification from the appropriate local official documenting that all 
required zoning approvals have been secured, both for on-site and off-
site housing and other proposed uses, or that the request for such 
approval(s) are on the agenda for the next meeting of the appropriate 
zoning authority.

XV. Overall Quality of Plan

    (A) Threshold: Appropriateness of Proposal. In accordance with 
Section 24(e)(1) of the 1937 Act, each application must demonstrate the 
appropriateness of the proposal in the context of the local housing 
market relative to other alternatives. You must briefly discuss other 
possible alternatives to your proposal, and explain why your plan is 
more appropriate. This is a statutory requirement and an application 
threshold. Any deficiencies in your narrative may not be corrected 
after the application is submitted.
    Examples of alternative proposals may include:
    (1) Rebuilding or rehabilitating an existing project or units at an 
off-site location that is in an isolated, non-residential, or otherwise 
inappropriate area;
    (2) Proposing a range of incomes, housing types (rental, 
homeownership, market rate, public housing, townhouse, detached house, 
etc.), or costs which cannot be supported by a market analysis; and/or
    (3) Proposing to use the land in a manner which is contrary to the 
goals of your agency.
    (B) Rating Factor: Overall Quality of Plan--23 Points Total.
    (1) Overall Quality of the Application--5 Points.
    The information and strategies described in your application must 
be coherent and internally consistent. Numbers and statistics in your 
narratives must be consistent with the information provided in the 
attachments. Also, the physical and CSS aspects of the application must 
be compatible and coordinated with each other. Pay particular attention 
to the data provided for:
    (a) Types and numbers of units;
    (b) Budgets;
    (c) Other financial estimates, including sources and uses; and
    (d) Numbers of residents affected.
    (2) Likelihood of Success--5 Points.
    (a) You will receive 5 Points if your Revitalization Plan, 
including plans for retail, office, and other economic development 
activities, as appropriate, will:
    (i) Result in a revitalized site that will enhance the neighborhood 
in which the project is located;
    (ii) Spur outside investment into the surrounding community;
    (iii) Enhance economic opportunities for residents; and
    (iv) Remove an impediment to continued redevelopment or start a 
community-wide revitalization process.
    (b) You will receive 3 Points if your application demonstrates that 
your Revitalization Plan will have only a moderate effect on activities 
in the surrounding community.
    (c) You will receive 0 Points if your application does not 
demonstrate that your Revitalization Plan will have an effect on the 
surrounding community, or if there is inadequate information in your 
application to rate this factor.
    (3) Project Readiness--7 Points.
    HUD places top priority on projects that will be able to commence 
immediately after grant award. You will receive the following points 
for each applicable subfactor certified in your application.
    (a) You will receive 2 Points if the targeted severely distressed 
public housing project is completely vacant.
    (b) You will receive 2 Points if the site is cleared.
    (c) You will receive 1 Point if a Master Development Agreement has 
been developed and is ready to submit to HUD.
    (d) You will receive 1 Point if your preliminary site design is 
complete.
    (e) You will receive 1 Point if you have held 5 or more public 
planning sessions leading to resident acceptance of the Plan.
    (4) Design--3 Points.
    HUD is seeking excellence in design. We urge you to carefully 
select your architects and/or planners, and to enlist local affiliates 
of national architectural and planning organizations such as the 
American Institute of Architects, the American Society of Landscape 
Architects, the American Planning Association, the Congress for the New 
Urbanism, and/or the department of architecture at a local college or 
university to assist you in assessing qualifications of design 
professionals and/or participating on a selection panel that results in 
the procurement of excellent design services.
    HUD encourages you to select a design team that is committed to a 
process in which residents, including young people and seniors, the 
broader community, and other stakeholders participate in designing the 
new community.
    Your proposed site plan, new units, and other buildings must be 
designed to

[[Page 49785]]

be compatible with and enrich the surrounding neighborhood. Local 
architecture and design elements and amenities should be incorporated 
into the new or rehabilitated homes so that the revitalized sites and 
structures will blend into the broader community and appeal to the 
market segments for which they are intended. Housing, community 
facilities, and economic development space must be well integrated. You 
must select members of your Team who have the ability to meet these 
requirements.
    (a) You will receive 3 Points if your proposed site plan, new 
dwelling units, and buildings demonstrate that:
    (i) You have proposed a site plan that is compact, pedestrian-
friendly, with an interconnected network of streets and public open 
space;
    (ii) Your proposed housing, community facilities, and economic 
development facilities are thoroughly integrated into the community 
through the use of local architectural tradition, building scale, 
grouping of buildings, and design elements; and
    (iii) Your plan proposes appropriate enhancements of the natural 
environment.
    (b) You will receive 1 Point if your proposed site plan, new 
dwelling units, and buildings demonstrate design that adequately 
addresses the elements above.
    (c) You will receive 0 Points if your proposed design is 
perfunctory or otherwise does not address the above elements. You will 
also receive 0 Points if there is inadequate information in the 
application to rate this factor.
    (5) Evaluation--3 Points.
    You are encouraged to work with your local university(ies), other 
institutions of learning, foundations, and/or others to evaluate the 
performance and impact of their HOPE VI Revitalization Plan over the 
life of the grant. The proposed methodology must measure success 
against goals you set at the outset of your revitalization activities. 
Evaluators must establish baselines and provide ongoing interim reports 
that will allow you to make changes as necessary as your project 
proceeds. Where possible, you are encouraged to form partnerships with 
Historically Black Colleges and Universities (HBCUs); Hispanic-Serving 
Institutions (HBIs); Community Outreach Partnership Centers (COPCs); 
the Alaskan Native/Native Hawaiian Institution Assisting Communities 
Program (as appropriate); and others in HUD's University Partnerships 
Program.
    (a) You will receive 3 Points if your application includes a 
letter(s) from an institution(s) of higher learning that provides a 
commitment to work with you to evaluate your program and describes its 
proposed approach to carry out the evaluation if your application is 
selected for funding. The letter must provide the extent of the 
commitment and involvement, the extent to which you and the local 
institution of higher learning will cooperate, and the proposed 
approach. The commitment letter must address the following areas for 
evaluation:
    (i) The impact of your HOPE VI effort on the lives of the 
residents;
    (ii) The nature and extent of economic development generated in the 
community;
    (iii) The effect of the revitalization effort on the surrounding 
community, including spillover revitalization activities, property 
values, etc.; and
    (iv) Your success at integrating the physical and CSS aspects of 
your strategy.
    (b) You will receive 0 Points if your application does not include 
a commitment letter that conforms to the specifications in paragraph 
(b) above.

XVI. Application Requirements

    (A) Application Components.
    (1) Narrative Exhibits.
    (a) The first part of your application will be comprised of 
narrative exhibits. Your narratives will respond to each rating factor 
in the NOFA, and will also respond to threshold requirements. Among 
other things, your narratives must describe your overall planning 
activities, including but not limited to relocation, community and 
supportive services, and development issues.
    (b) Each HOPE VI Revitalization application must contain no more 
than 125 pages of narrative exhibits. Any pages after the first 125 
pages of narrative exhibits will not be reviewed. Although submitting 
pages in excess of the page limitations will not disqualify an 
application, HUD will not consider the information on any excess pages, 
which may result in a lower score or failure of a threshold. Text 
submitted at the request of HUD to correct a technical deficiency will 
not be counted in the 125 page limit.
    (2) Attachments.
    (a) The second part of your application will be comprised of 
Attachments. These documents will also respond to the rating factors in 
the NOFA, as well as threshold requirements. They will include 
documents such as maps, photographs, letters of commitment, application 
data forms, and various certifications unique to HOPE VI 
Revitalization.
    (b) Each HOPE VI Revitalization application must contain no more 
than 150 pages of attachments. Any pages after the first 150 pages of 
attachments will not be considered. Although submitting pages in excess 
of the page limit will not disqualify an application, HUD will not 
consider the information on any excess pages, which may result in a 
lower score or failure to meet a threshold.
    (3) Exceptions to Page Limits. The documents listed below 
constitute the only exceptions and are not counted in the page limits 
listed in Sections (1)(b) and (2)(b) above:
    (a) Additional pages submitted at the request of HUD in response to 
a technical deficiency.
    (b) Attachments that provide documentation of commitments from 
resource providers or CSS providers.
    (c) Narratives and Attachments required to be submitted only by 
existing HOPE VI Revitalization Grantees in accordance with Sections 
VII(A)(3), VII(B)(2), and VII(B)(3)(c) of this NOFA (Capacity).
    (d) Information required of MTW applicants only.
    (4) Standard Certifications. The last part of your application will 
be comprised of standard certifications common to many HUD programs. 
Hard copies of the forms are included in the HOPE VI Application Kit, 
and electronic versions of these forms also can be found on the 
websites listed in Section IV(D)(2) of this NOFA. If you are requesting 
Section 8 assistance as described in Section II(E) of this NOFA, it 
must be placed in this Standard Certifications Section of your HOPE VI 
application. These forms must be placed at the back of the application, 
except for the Application for Federal Assistance (SF-424), which is 
the first page of your application.
    (B) Application Format. To speed the processing of your 
application, you are asked to follow these instructions when preparing 
your application:
    (1) Double space your narrative pages. Single spaced pages will be 
counted as two pages.
    (2) Use 8\1/2\ x 11 inch paper, one side only. Only the City map 
may be submitted on an 8\1/2\ by 14 sheet of paper. Larger pages will 
be counted as two pages.
    (3) All margins should be 1 inch, but no smaller than \1/2\ inch.
    (4) Use at least an 11 Point font.
    (5) Any pages marked with numbers and letters (e.g., 75A, 75B, 75C) 
will be treated as separate pages.
    (6) If a Section is not applicable, omit it; do not insert a page 
marked n/a.
    (7) Mark each Exhibit and Attachment with an appropriate tab. No 
material on the tab will be considered for review purposes, although 
pictures are allowed.

[[Page 49786]]

    (8) No more than one page of text may be placed on one sheet of 
paper; i.e., you may not shrink pages to get two or more on a page.
    (9) Do not format your narrative in columns. Pages with text in 
columns will be counted as two pages.
    (C) Signatures. Unless otherwise indicated, each form or 
certification, whether part of an Attachment or a Standard 
Certification, must be signed by the Executive Director of the 
applicant PHA, or his or her designate. Signatures need not be 
original.

XVII. Revitalization Application Selection Process

    (A) Revitalization Grant Application Evaluation.
    (1) HUD's selection process is designed to ensure that HOPE VI 
Revitalization grants are awarded to eligible PHAs with the most 
meritorious applications.
    (2) In a departure from recent years, HUD will only rate HOPE VI 
Revitalization applications that have met the thresholds described in 
this HOPE VI NOFA.
    (B) Threshold and Completeness Review.
    (1) Application Screening. HUD will screen each application to 
determine if it meets the threshold criteria listed in Section III of 
this NOFA.
    (2) HUD will consider the information you submit by the application 
due date. After the application due date, HUD may not, consistent with 
its regulations in 24 CFR part 4, subpart B, consider any unsolicited 
information that you or any third party may want to provide.
    (3) In order not to unreasonably exclude applications from being 
rated and ranked, HUD may contact applicants to ensure proper 
completion of the application on a uniform basis for all applicants. 
After your application has been screened, HUD may contact you to 
clarify an item in your application or to give you an opportunity to 
correct a technical deficiency. HUD may not seek clarification of items 
or responses that would improve the substantive quality of your 
response to any rating factor. Examples of curable technical 
deficiencies include your failure to include a required certification 
or sign a document. If HUD identifies a technical deficiency, it will 
notify you by fax of the clarification or deficiency. You must submit 
information to cure the deficiency to HUD within 14 calendar days from 
the date of HUD notification. (If the due date falls on a Saturday, 
Sunday, or Federal holiday, your correction must be received by HUD on 
the following business day.) 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.
    (4) In order to evaluate thresholds, HUD may also use internal 
information sources that will provide information regarding audit 
findings, the status of existing HOPE VI Revitalization grants, and 
other pertinent information. HUD will not consider external sources 
such as newspaper articles and letters to evaluate applications unless 
they are submitted in your application.
    (5) Applications that do not meet every threshold will be deemed 
ineligible for funding and will not be rated.
    (C) Preliminary Rating and Ranking.
    (1) Rating.
    (a) HUD will preliminarily rate each eligible application, SOLELY 
on the basis of the rating factors described in this HOPE VI NOFA.
    (b) When rating applications, HUD reviewers will not use any 
information included in any HOPE VI application submitted in a prior 
year.
    (c) HUD will assign a preliminary score for each rating factor and 
a preliminary total score for each eligible application.
    (d) The maximum number of Points for each Revitalization 
application is 114.
    (2) Ranking.
    (a) After preliminary review, applications will be ranked in score 
order.
    (b) Applications will be deemed ``competitive'' if they have a 
preliminary score of 90 or above.
    (c) Applications that do not have a preliminary score of at least 
90 will not receive a final score and will not be eligible for funding.
    (D) Final Panel Review.
    (1) A Final Review Panel made up of HUD staff will:
    (a) Assess each competitive application, as defined in Section 
XVII(C) above;
    (b) Assign the final score; and
    (c) Recommend for selection the most highly-rated competitive 
applications, subject to the amount of available funding, in accordance 
with the allocation of funds described in Section II of this NOFA.
    (2) HUD reserves the right to make reductions in funding to delete 
ineligible items, with the exception of the prohibition to request 
funds for units that do not meet the requirements of replacement 
housing, in accordance with Section VI(D)(8) of this NOFA.
    (3) In accordance with the FY 2002 HOPE VI appropriation, HUD may 
not use HOPE VI funds to grant competitive advantage in awards to 
settle litigation or pay judgments.
    (E) Tie Scores. If two or more applications have the same score and 
there are insufficient funds to select all of them, HUD will select for 
funding the application(s) with the highest score for Rating Factor XV, 
Overall Quality of the Plan. If a tie still remains, HUD will select 
for funding the application(s) with the highest score for Capacity. HUD 
will select further tied applications with the highest score for Need.
    (F) Transfer to Demolition Grants. If funds remain after all 
eligible HOPE VI Revitalization grant applications are funded and the 
amount remaining is inadequate to feasibly fund the next eligible 
Revitalization application, HUD reserves the right to:
    (1) Reallocate unused funds to fund or supplement the next eligible 
HOPE VI Demolition grant application(s);
    (2) Reallocate unused funds to the amount available for Section 8 
assistance, if necessary; and/or
    (3) Carry over unused funds to the next fiscal year.

XVIII. Post Award Activities

    (A) Notification of Funding Decisions. The HUD Reform Act prohibits 
HUD from notifying you as to whether or not you have been selected to 
receive a Revitalization grant until it has announced all HOPE VI 
Revitalization grant recipients. If your Revitalization application has 
been found to be ineligible or if it did not receive enough Points to 
be funded, you will not be notified until the successful applicants 
have been notified. HUD will provide written notification to all HOPE 
VI applicants, whether or not they have been selected for funding.
    (B) Environmental Review. HUD notification that you have been 
selected to receive a HOPE VI grant constitutes only preliminary 
approval. Grant funds may not be released until the responsible entity 
completes an environmental review and you submit and obtain HUD 
approval of a request for release of funds and the responsible entity's 
environmental certification in accordance with Section XX of this NOFA.
    (C) Revitalization Grant Agreement. When you are selected to 
receive a Revitalization grant, HUD will send you a HOPE VI 
Revitalization Grant Agreement, which constitutes the contract between 
you and HUD to carry out and fund public housing revitalization 
activities. Both you and HUD will sign the cover sheet of the Grant 
Agreement. It is effective on the date of HUD's signature. The Grant

[[Page 49787]]

Agreement differs from year to year. The FY 2001 Revitalization Grant 
Agreement can be found on the HOPE VI website at www.hud.gov/hopevi.
    (D) HOPE VI Endowment Trust Addendum to the Grant Agreement. This 
document must be executed between the Grantee and HUD in order for the 
Grantee to use CSS funds in accordance with Section XI(A)(3) of this 
NOFA.
    (E) Revitalization Plan. After HUD conducts a post-award review of 
your application and makes a visit to the site, you will be required to 
submit components of your Revitalization Plan to HUD, as provided in 
the HOPE VI Revitalization Grant Agreement. These components include, 
but are not limited to:
    (1) Supplemental Submissions, including a HOPE VI Program Budget;
    (2) A Community and Supportive Services work plan, in accordance 
with guidance provided by HUD;
    (3) A standard or mixed-finance development proposal, as 
applicable;
    (4) A demolition and/or disposition application, as applicable; and
    (5) A homeownership proposal, as applicable.

XIX. Post Award Requirements

    (A) Quarterly Report. If you are selected for funding, you must 
submit a Quarterly Report to HUD.
    (1) HUD will provide training and technical assistance on the 
filing and submitting of Quarterly Reports.
    (2) Filing of Quarterly Reports is mandatory for all Grantees, and 
failure to do so within the required time frame will result in 
suspension of grant funds until the report is filed and approved by 
HUD.
    (3) Grantees will be held to the milestones that are reported on 
the Quarterly Report Administrative and Compliance CheckPoints Report, 
as approved by HUD.
    (4) Grantees must also report obligations and expenditures in LOCCS 
on a quarterly basis.
    (B) Timeliness of Construction. Grantees must proceed within a 
reasonable time frame, as indicated below. In determining 
reasonableness of such time frame, HUD will take into consideration 
those delays caused by factors beyond your control.
    (1) Grantees must submit Supplemental Submissions within 90 days 
from the date of HUD's written request.
    (2) Grantees must submit CSS work plans within 90 days from the 
execution of the Grant Agreement.
    (3) All other required components of the Revitalization Plan and 
any other submissions not mentioned above must be submitted in 
accordance with the Quarterly Report Administrative and Compliance 
CheckPoints Report, as approved by HUD.
    (4) Grantees must start construction within 12 months from the date 
of HUD's approval of the Supplemental Submissions as requested by HUD 
after grant award. This time period may not exceed 18 months from the 
date the Grant Agreement is executed.
    (5) Grantees must submit the development proposal for the first 
phase of construction within 12 months of grant award.
    (6) The closing of the first phase must take place within 15 months 
of grant award.
    (7) Grantees must complete construction within 48 months from the 
date of HUD's approval of your Supplemental Submissions. This time 
period for completion may not exceed 54 months from the date the Grant 
Agreement is executed.
    (8) In accordance with Section 24(i) of the 1937 Act, if a Grantee 
does not proceed within a reasonable time frame, as described in 
Sections (B)(1) through (7) above, HUD shall withdraw any unobligated 
grant amounts. HUD shall redistribute any withdrawn amounts to one or 
more other applicants eligible for HOPE VI assistance or to one or more 
other entities capable of proceeding expeditiously in the same locality 
in carrying out the Revitalization Plan of the original Grantee.
    (C) Conflict of Interest.
    (1) Prohibition. In addition to the conflict of interest 
requirements in 24 CFR part 85, no person who is an employee, agent, 
consultant, officer, or elected or appointed official of a Grantee and 
who exercises or has exercised any functions or responsibilities with 
respect to activities assisted under a HOPE VI Grant, or who is in a 
position to participate in a decision-making process or gain inside 
information with regard to such activities, may obtain a financial 
interest or benefit from the activity, or have an interest in any 
contract, subcontract, or agreement with respect thereto, or the 
proceeds thereunder, either for himself or herself or for those with 
whom he or she has family or business ties, during his or her tenure or 
for one year thereafter.
    (2) HUD-Approved Exception.
    (a) Standard. HUD may grant an exception to the prohibition in 
Section (1) above on a case-by-case basis when it determines that such 
an exception will serve to further the purposes of HOPE VI and its 
effective and efficient administration.
    (b) Procedure. HUD will consider granting an exception only after 
the Grantee has provided a disclosure of the nature of the conflict, 
accompanied by:
    (i) An assurance that there has been public disclosure of the 
conflict;
    (ii) A description of how the public disclosure was made; and
    (iii) An opinion of the Grantee's attorney that the interest for 
which the exception is sought does not violate State or local laws.
    (c) Consideration of Relevant Factors. In determining whether to 
grant a requested exception under Section (b) above, HUD will consider 
the cumulative effect of the following factors, where applicable:
    (i) Whether the exception would provide a significant cost benefit 
or an essential degree of expertise to the Revitalization Plan that 
would otherwise not be available;
    (ii) Whether an opportunity was provided for open competitive 
bidding or negotiation;
    (iii) Whether the person affected is a member of a group or class 
intended to be the beneficiaries of the Revitalization Plan and the 
exception will permit such person to receive generally the same 
interests or benefits as are being made available or provided to the 
group or class;
    (iv) Whether the affected person has withdrawn from his or her 
functions or responsibilities, or the decision making process, with 
respect to the specific activity in question;
    (v) Whether the interest or benefit was present before the affected 
person was in a position as described in Section (iii) above;
    (vi) Whether undue hardship will result either to the Grantee or 
the person affected when weighed against the public interest served by 
avoiding the prohibited conflict; and
    (vii) Any other relevant considerations.
    (D) OMB Circulars and Administrative Requirements. You must comply 
with the following administrative requirements related to the 
expenditure of Federal funds. OMB Circulars can be found at 
www.whitehouse.gov/omb/circulars/index.html. The Code of Federal 
Regulations can be found at www.access.gpo.gov/nara/cfr/index.html.
    (1) Administrative requirements applicable to PHAs are:
    (a) 24 CFR part 85 (Administrative Requirements for Grants and 
Cooperative Agreements to State, Local and Federally Recognized Indian 
Tribal Governments), as modified by 24 CFR 941 or successor part, 
subpart F, relating

[[Page 49788]]

to the procurement of partners in mixed finance developments.
    (b) OMB Circular A-87 (Cost Principles for State, Local and Indian 
Tribal Governments);
    (c) 24 CFR 85.26 (audit requirements).
    (2) Administrative requirements applicable to non-profit 
organizations are:
    (a) 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Non-Profit Organizations);
    (b) OMB Circular A-122 (Cost Principles for Non-Profit 
Organizations):
    (c) 24 CFR 84.26 (audit requirements).
    (3) Administrative requirements applicable to for profit 
organizations are:
    (a) 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Non-Profit Organizations);
    (b) 48 CFR part 31 (contract cost principles and procedures);
    (c) 24 CFR 84.26 (audit requirements).
    (E) Building Standards.
    (1) Building Codes. All activities that include construction, 
rehabilitation, lead-based paint removal, and related activities must 
meet or exceed local building codes. You are encouraged to read the 
policy statement and Final Report of the HUD Review of Model Building 
Codes that identifies the variances between the design and construction 
requirements of the Fair Housing Act and several model building codes. 
That report can be found on the HUD website at www.hud.gov/fhe/modelcodes.
    (2) Deconstruction. HUD encourages you to design programs that 
incorporate sustainable construction and demolition practices, such as 
the dismantling or ``deconstruction'' of public housing units, 
recycling demolition debris, and reusing salvage materials in new 
construction. ``A Guide to Deconstruction'' can be found at 
www.hud.gov/deconstr.pdf.
    (3) PATH. HUD encourages you to use PATH technologies in the 
construction and delivery of replacement housing. PATH (Partnership for 
Advancing Technology in Housing) is a voluntary initiative that seeks 
to accelerate the creation and widespread use of advanced technologies 
to radically improve the quality, durability, environmental 
performance, energy efficiency, and affordability of our Nation's 
housing.
    (a) PATH's goal is to achieve dramatic improvement in the quality 
of American housing by the year 2010. PATH encourages leaders from the 
home building, product manufacturing, insurance and financial 
industries, and representatives from federal agencies dealing with 
housing issues to work together to spur housing design and construction 
innovations. PATH will provide technical support in design and cost 
analysis of advanced technologies to be incorporated in project 
construction.
    (b) Applicants are encouraged to employ PATH technologies to exceed 
prevailing national building practices by:
    (i) Reducing costs;
    (ii) Improving durability;
    (iii) Increasing energy efficiency;
    (iv) Improving disaster resistance; and
    (v) Reducing environmental impact.
    (c) More information, the list of technologies, latest PATH 
Newsletter, results from field demonstrations and PATH projects can be 
found at www.pathnet.org.
    (4) Energy Efficiency.
    (a) New construction must comply with the latest HUD-adopted Model 
Energy Code issued by the Council of American Building Officials.
    (b) HUD encourages you to set higher standards for energy and water 
efficiency in HOPE VI new construction, which can achieve utility 
savings of 30 to 50 percent with minimal extra cost.
    (c) You are encouraged to negotiate with your local utility company 
to obtain a lower rate. Utility rates and tax laws vary widely 
throughout the country. In some areas, PHAs are exempt or partially 
exempt from utility rate taxes. Some PHAs have paid unnecessarily high 
utility rates because they were billed at an incorrect rate 
classification.
    (d) Local utility companies may be able to provide grant funds to 
assist in energy efficiency activities. States may also have programs 
that will assist in energy efficient building techniques.
    (e) You must use new technologies that will conserve energy and 
decrease operating costs where cost effective. Examples of such 
technologies include:
    (i) Geothermal heating and cooling;
    (ii) Placement of buildings and size of eaves that take advantage 
of the directions of the sun throughout the year;
    (iii) Photovoltaics (technologies that convert light into 
electrical power);
    (iv) Extra insulation;
    (v) Smart windows; and
    (vi) Energy Star appliances.
    (f) HUD's Energy website is located at http://www.hudstage.hud.gov/offices/cpd/energyenviron/energy/index.cfm.
    (5) Lead-Based Paint. You must comply with lead-based paint testing 
and abatement requirements of the Lead-Based Paint Poisoning Prevention 
Act (42 U.S.C. 4821, et seq.). You must also comply with regulations at 
24 CFR part 35, 24 CFR 965.701, and 24 CFR 968.110(k), as they may be 
amended or revised from time to time. Unless otherwise provided, you 
will be responsible for testing and abatement activities. The National 
Lead Information Hotline is 1-800-424-5323.
    (F) Labor Standards.
    (1) Revitalization Grant Labor Standards.
    (a) Davis-Bacon wage rates apply to development of any public 
housing rental units or homeownership units developed with HOPE VI 
grant funds and to demolition followed by construction on the site. 
Davis-Bacon rates are ``prevailing'' minimum wage rates set by the 
Secretary of Labor that all laborers and mechanics employed in the 
development, including rehabilitation other than nonroutine maintenance 
of a public housing project must be paid, as set forth in a wage 
determination that must be obtained by the PHA prior to bidding on each 
construction contract. The wage determination and provisions requiring 
payment of these wage rates must be included in the construction 
contract.
    (b) HUD-determined wage rates apply to:
    (i) Operation (including nonroutine maintenance) of revitalized 
housing, and
    (ii) Demolition followed only by filling in the site and 
establishing a lawn.
    (2) Exclusions. Under Section 12(b) of the 1937 Act, wage rate 
requirements do not apply to individuals who:
    (a) Perform services for which they volunteered;
    (b) Do not receive compensation for those services or are paid 
expenses, reasonable benefits, or a nominal fee for the services; and
    (c) Are not otherwise employed in the work involved (24 CFR part 
70).
    (3) If other Federal programs are used in connection with your HOPE 
VI activities, labor standards requirements apply to the extent 
required by the other Federal programs on portions of the project that 
are not subject to Davis-Bacon rates under the 1937 Act.
    (G) Accessible Technology. The Rehabilitation Act Amendments of 
1998 apply to all electronic information technology (EIT) used by a 
grantee for transmitting, receiving, using, or storing information to 
carry out the responsibilities of any Federal grant awarded. It 
includes, but is not limited to, computers (hardware, software, word 
processing, email and web pages) facsimile machines, copiers and 
telephones. When developing, procuring, maintaining or using EIT,

[[Page 49789]]

grantees must ensure that the EIT allows:
    (1) Employees with disabilities to have access to and use 
information and data that is comparable to the access and use of data 
by employees who do not have disabilities; and
    (2) Members of the public with disabilities seeking information or 
service from a grantee must have access to and use of information and 
data and comparable to the access and use of data by members of the 
public who do not have disabilities.
    If these standards impose on a grantee, they may provide an 
alternative means to allow the individual to use the information and 
data. No grantee will be required to provide information services to a 
person with disabilities at any location other than the location at 
which the information services are generally provided.

XX. Environmental Requirements

    (A) Environmental Review.
    (1) If you are selected for funding and an environmental review has 
not been conducted on the targeted site, the responsible entity, as 
defined in 24 CFR 58.2(a)(7), must assume the environmental review 
responsibilities for projects being funded by HOPE VI. If you object to 
the responsible entity conducting the environmental review, on the 
basis of performance, timing or compatibility of objectives, HUD will 
review the facts and determine who will perform the environmental 
review. At any time, HUD may reject the use of a responsible entity to 
conduct the environmental review in a particular case on the basis of 
performance, timing or compatibility of objectives, or in accordance 
with 24 CFR 58.77(d)(1). If a responsible entity objects to performing 
an environmental review, or if HUD determines that the responsible 
entity should not perform the environmental review, HUD may designate 
another responsible entity to conduct the review or may itself conduct 
the environmental review in accordance with the provisions of 24 CFR 
part 50. You must provide any documentation to the responsible entity 
(or HUD, where applicable) that is needed to perform the environmental 
review.
    (2) If you are selected for funding, you must have a Phase I 
environmental site assessment completed in accordance with the American 
Society for Testing and Material (ASTM) Standards E 1527-97, as 
amended, for each affected site. A Phase I assessment is required 
whether the environmental review is completed under 24 CFR part 50 or 
24 CFR part 58. The results of the Phase I assessment must be included 
in the documents that must be provided to the responsible entity (or 
HUD) for the environmental review. If the Phase I assessment recognizes 
environmental concerns or if the results are inconclusive, a Phase II 
environmental site assessment will be required.
    (3) You may not undertake any actions with respect to the project, 
or with respect to any off-site replacement public housing, that are 
choice-limiting or could have environmentally adverse effects, 
including demolishing, acquiring, rehabilitating, converting, leasing, 
repairing, or constructing property proposed to be assisted under this 
NOFA, and you may not commit or expend HUD or local funds for these 
activities, until HUD has approved a Request for Release of Funds 
(RROF) following a responsible entity's environmental review under 24 
CFR part 58, or until HUD has completed an environmental review and 
given approval for the action under 24 CFR part 50.
    (4) If the environmental review is completed before HUD approval of 
the HOPE VI Supplemental Submissions and you have submitted your RROF, 
the Supplemental Submissions approval letter shall state any 
conditions, modifications, prohibitions, etc. as a result of the 
environmental review, including the need for any further environmental 
review. You must carry out any mitigating/remedial measures required by 
HUD, or select an alternate eligible property, if permitted by HUD. If 
the remediation plan is not approved by HUD and a fully-funded contract 
with a qualified contractor licensed to perform the required type of 
remediation is not executed, HUD reserves the right to determine that 
the grant is in default.
    (5) If the environmental review is not completed and/or you have 
not submitted the RROF before HUD approval of the Supplemental 
Submissions, the letter approving the Supplemental Submissions will 
instruct you to refrain from undertaking, obligating or expending funds 
on physical activities or other choice-limiting actions, until HUD 
approves your RROF and the related certification of the responsible 
entity (or HUD has completed the environmental review). The 
Supplemental Submissions approval letter also will advise you that the 
approved Supplemental Submissions may be modified on the basis of the 
results of the environmental review.
    (6) The costs of environmental reviews and hazard remediation are 
eligible costs under the HOPE VI Program.
    (7) HUD's Environmental website is located at http://hudstage.hud.gov/offices/cpd/energyenviron/environment/index.cfm.
    (B) There must not be any environmental or public policy factors 
such as sewer moratoriums that would preclude development in the 
requested locality. Applicants will certify to this when signing the 
HOPE VI Revitalization Grant Application Certifications.
    (C) Flood Insurance. In accordance with the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128), your application may not 
propose to provide financial assistance for acquisition or construction 
(including rehabilitation) of properties located in an area identified 
by the Federal Emergency Management Agency (FEMA) as having special 
flood hazards, unless:
    (1) The community in which the area is situated is participating in 
the National Flood Insurance program (see 44 CFR parts 59 through 79), 
or less than one year has passed since FEMA notification regarding such 
hazards; and
    (2) Where the community is participating in the National Flood 
Insurance Program, flood insurance is obtained as a condition of 
execution of a Grant Agreement and approval of any subsequent 
demolition or disposition application.
    (D) Coastal Barrier Resources Act. In accordance with the Coastal 
Barrier Resources Act (16 U.S.C. 3501), your application may not target 
properties in the Coastal Barrier Resources System.

XXI. Findings and Certifications

    (A) The Catalog of Federal Assistance (CFDA) Number for HOPE VI is 
14.866. The CFDA is a government-wide compendium of Federal programs, 
projects, services, and activities that provide assistance or benefits 
to the public.
    (B) Environmental Impact. A Finding of No Significant Impact with 
respect to the environment has been made in accordance with HUD 
regulations at 24 CFR part 50 that implement Section 102(2)(C) of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332). The Finding 
of No Significant Impact is available for public inspection during 
regular business hours in the Office of the General Counsel, 
Regulations Division, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410-0500.
    (C) Federalism. Executive Order 13132 prohibits, to the extent 
practicable and permitted by law, an

[[Page 49790]]

agency from promulgating policies that have federalism implications and 
either impose substantial direct compliance costs on State and local 
governments and are not required by statute, or preempt State law, 
unless the relevant requirements of Section 6 of the Executive Order 
are met. This NOFA does not have Federalism implications and does not 
impose substantial direct compliance costs on State and local 
governments or preempt State law within the meaning of the Executive 
Order.
    (D) Intergovernmental Review of Federal Programs. Executive Order 
12372 was issued to foster intergovernmental partnership and strengthen 
Federalism by relying on State and local processes for the coordination 
and review of Federal financial assistance and direct Federal 
development. The Order allows each State to designate an entity to 
perform a State review function. The official listing of State Points 
of Contact (SPOC) for this review process can be found at: 
www.whitehouse.gov/omb/grants/spoc.html. States that are not listed on 
the website have chosen not to participate in the intergovernmental 
review process, and therefore do not have a SPOC. If you are located 
within one of those States, you may send applications directly to HUD. 
If your State has a SPOC, you should contact them to see if they are 
interested in reviewing your application prior to submission to HUD. 
Please make sure that you allow ample time for this review process when 
developing and submitting your application.
    (E) Prohibition Against Lobbying Activities. You are subject to the 
provisions of Section 319 of the Department of Interior and Related 
Agencies Appropriation Act for Fiscal Year 1991, 31 U.S.C. 1352 (the 
Byrd Amendment), which prohibits recipients of Federal contracts, 
grants, or loans from using appropriated funds for lobbying the 
executive or legislative branches of the Federal Government in 
connection with a specific contract, grant, or loan. You are required 
to certify, using the certification found at Appendix A to 24 CFR part 
87, that you will not, and have not, used appropriated funds for any 
prohibited lobbying activities. In addition, you must disclose, using 
Standard Form LLL, ``Disclosure of Lobbying Activities'' (SF LLL) any 
funds, other than Federally appropriated funds, that will be or have 
been used to influence Federal employees, members of Congress, and 
congressional staff regarding specific grants or contracts. SF LLL is 
included in the HOPE VI Revitalization Application Kit and the websites 
listed in Section (IV)(D)(2) of this NOFA. The Lobbying Disclosure Act 
of 1995 (Pub. L. 104-65), approved December 19, 1995, repealed Section 
112 of the HUD Reform Act, and 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.
    (F) Documentation and Public Access Requirements. Section 102 of 
the Department of Housing and Urban Development Reform Act of 1989 (42 
U.S.C. 3545) (HUD Reform Act) and the regulations codified in 24 CFR 
part 4, subpart A, contain a number of provisions that are designed to 
ensure greater accountability and integrity in the provision of certain 
types of assistance administered by HUD. On January 14, 1992, HUD 
published a notice that also provides information on the implementation 
of Section 102 (57 FR 1942). The documentation, public access, and 
disclosure requirements of Section 102 apply to assistance awarded 
under this NOFA as follows:
    (1) Documentation and public access requirements. HUD will ensure 
that documentation and other information regarding each application 
submitted pursuant to this NOFA are sufficient to indicate the basis 
upon which assistance was provided or denied. This material, including 
any letters of support, will be made available for public inspection 
for a 5-year period beginning not less than 30 days after the award of 
the assistance. Material will be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations in 24 CFR part 15.
    (2) Disclosures. HUD will make available for public inspection all 
HOPE VI grant applications for five years beginning not less than 30 
days following the grant award. Applications will be made available in 
accordance with the Freedom of Information Act (5 U.S.C. 552) and HUD's 
implementing regulations at 24 CFR part 5.
    (3) Publication of Recipients of HUD Funding. HUD's regulations at 
24 CFR 4.7 provide that HUD will publish a notice in the Federal 
Register to notify the public of all decisions made by the Department 
to provide:
    (i) Assistance subject to Section 102(a) of the HUD Reform Act, 
and/or
    (ii) Assistance that is provided through grants or cooperative 
agreements on a discretionary (non-formula, non-demand) basis, but that 
is not provided on the basis of a competition.
    (G) Section 103 HUD Reform Act. HUD's regulations implementing 
Section 103 of the Department of Housing and Urban Development Reform 
Act of 1989 (42 U.S.C. 3537a), codified in 24 CFR part 4, subpart B, 
apply to this funding competition. The regulations continue to apply 
until the announcement of the selection of successful applicants. HUD 
employees involved in the review of applications and in the making of 
funding decisions are limited by the regulations from providing advance 
information to any person (other than an authorized employee of HUD) 
concerning funding decisions, or from otherwise giving any applicant an 
unfair competitive advantage. Persons who apply for assistance in this 
competition +should confine their inquiries to the subject areas 
permitted under 24 CFR part 4.
    Applicants or HUD employees who have ethics related questions 
should contact the HUD Ethics Law Division at (202) 708-3815. (This is 
not a toll-free number.) HUD employees who have specific program 
questions should contact the appropriate field office counsel, or 
Headquarters counsel for the program to which the question pertains.
    (H) Paperwork Reduction Act Statement. The information collection 
requirements contained in this notice have been approved by the Office 
of Management and Budget in accordance with the Paperwork Reduction Act 
of 1995 (44 U.S.C. Chapter 35), and assigned OMB control number 2577-
0208. 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.

    Dated: July 24, 2002.
Michael Liu,
Assistant Secretary for Public and Indian Housing.

Appendix A--HOPE VI Revitalization Grant Applicant Certifications

    Acting on behalf of the Board of Commissioners of the Housing 
Authority listed below, as its Chairman, I approve the submission of 
the HOPE VI Revitalization application of which this document is a 
part and make the following certifications to and agreements with 
the Department of Housing and Urban Development (HUD) in connection 
with the application and implementation thereof:
    1. The public housing project or building in a project targeted 
in this HOPE VI Revitalization grant application meets the 
definition of severe distress in accordance with Section 24(j)(2) of 
the United States Housing Act of 1937 (``1937Act'').

[[Page 49791]]

    2. The PHA has not received assistance from the Federal 
government, State, or unit of local government, or any agency or 
instrumentality, for the specific activities for which funding is 
requested in the HOPE VI Revitalization application.
    3. The PHA does not have any litigation pending which would 
preclude timely startup of activities.
    4. The PHA is in full compliance with any desegregation or other 
court order related to Fair Housing (e.g., Title VI of the Civil 
Rights Act of 1964, the Fair Housing Act, and Section 504 of the 
Rehabilitation Act of 1973) that affects the PHA's public housing 
program and that is in effect on the date of application submission.
    5. The PHA has returned any excess advances received during 
development or modernization, or amounts determined by HUD to 
constitute excess financing based on a HUD-approved Actual 
Development Cost Certificate (ADCC) or Actual Modernization Cost 
Certificate (AMCC), or that HUD has approved a pay-back plan.
    6. There are no environmental factors, such as sewer 
moratoriums, precluding development in the requested locality.
    7. In accordance with the Flood Disaster Protection Act of 1973 
(42 U.S.C. 4001-4128), the property targeted for acquisition or 
construction (including rehabilitation) is not located in an area 
identified by the Federal Emergency Management Agency (FEMA) as 
having special flood hazards, unless:
    (a) The community in which the area is situated is participating 
in the National Flood Insurance program (see 44 CFR parts 59 through 
79), or less than one year has passed since FEMA notification 
regarding such hazards; and
    (b) Where the community is participating in the National Flood 
Insurance Program, flood insurance is obtained as a condition of 
execution of a Grant Agreement and approval of any subsequent 
demolition or disposition application.
    8. The application does not target properties in the Coastal 
Barrier Resources System, in accordance with the Coastal Barrier 
Resources Act (16 U.S.C. 3501). If selected for HOPE VI 
Revitalization funding:
    9. The PHA will comply with all policies, procedures, and 
requirements prescribed by HUD for the HOPE VI Program, including 
the implementation of HOPE VI revitalization activities, in a 
timely, efficient, and economical manner.
    10. The PHA will not receive assistance from the Federal 
government, State, or unit of local government, or any agency or 
instrumentality, for the specific activities funded by the HOPE VI 
Revitalization grant. The PHA has established controls to ensure 
that any activity funded by the HOPE VI Revitalization grant is not 
also funded by any other HUD program, thereby preventing duplicate 
funding of any activity.
    11. The PHA will not provide to any development more assistance 
under the HOPE VI Revitalization grant than is necessary to provide 
affordable housing after taking into account other governmental 
assistance provided.
    12. The PHA will supplement the aggregate amount of the HOPE VI 
Revitalization grant with funds from sources other than HOPE VI in 
an amount not less than 5 percent of the amount of HOPE VI grant.
    13. In addition to supplemental amounts provided in accordance 
with Certification 12 above, if the PHA uses more than 5 percent of 
the HOPE VI grant for the community and supportive services 
component, it will provide supplemental funds from sources other 
than HOPE VI, dollar for dollar, for the amount over 5 percent of 
the grant used for the community and supportive services component.
    14. Disposition activity under the grant will be conducted in 
accordance with Section 18 of the 1937 Act.
    15. The PHA will carry out acquisition of land, or acquisition 
of off-site units with or without rehabilitation to be used as 
public housing, in accordance with 24 CFR part 941, or successor 
part.
    16. The PHA will carry out major rehabilitation and other 
physical improvements of housing and non-dwelling facilities in 
accordance with 24 CFR 968.11 2(b), (d), (e), and (g)-(o), 24 CFR 
968.130, and 24 CFR 968.135(b) and (d) or successor part.
    17. The PHA will carry out construction of public housing rental 
replacement housing, both on-site and off-site, and community 
facilities, in accordance with 24 CFR part 941 or successor part, 
including mixed-finance development in accordance with subpart F.
    18. The PHA will carry out replacement homeownership activities 
in conformance with the requirements of section 24(d)(1)(J), which 
may include a homeownership proposal under Section 32 of the 1937 
Act, the income limitations, and other applicable homeownership 
requirements of the 1937 Act.
    19. The PHA will administer and operate public housing rental 
units in accordance with all requirements applicable to public 
housing, including the 1937 Act, HUD's implementing regulations 
thereunder, the ACC, the Mixed-Finance ACC Amendment (if 
applicable), and all other applicable Federal statutory, Executive 
Order, and regulatory requirements as such requirements may be 
amended from time to time.
    20. The PHA will comply with:
    (a) The Fair Housing Act (42 U.S.C. 3601-19) and regulations at 
24 CFR part 100;
    (b) The prohibitions against discrimination on the basis of 
disability under Section 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794) and regulations at 24 CFR part 8);
    (c) Title II of the Americans with Disabilities Act (42 U.S.C. 
12101 et seq.) and its implementing regulations at 28 CFR part 36;
    (d) The Architectural Barriers Act of 1968, as amended (42 
U.S.C. 4151) and regulations at 24 CFR part 40).
    21. The PHA will comply with regulations at 24 CFR 85.36(e) 
which require recipients of assistance (grantees and subgrantees) to 
take all necessary affirmative steps in contracting for purchase of 
goods or services to assure that small businesses, small 
disadvantaged businesses, minority firms, women's business 
enterprises, and labor surplus area firms are used when possible.
    22. The PHA will comply with the requirements of Section 3 of 
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) 
(Employment Opportunities for Lower Income Persons in Connection 
with Assisted Projects) and its implementing regulation at 24 CFR 
part 135, including the reporting requirements of subpart E.
    23. The PHA will comply with Davis-Bacon or HUD-determined 
prevailing wage rate requirements to the extent required under 
Section 12 of the 1937 Act.
    24. As applicable, the PHA will comply with the relocation 
assistance and real property acquisition requirements of the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970 and government-wide implementing regulations at 49 CFR part 24; 
relocation regulations at 24 CFR 968.108 or successor regulation 
(rehabilitation, temporary relocation); 24 CFR 941.207 or successor 
regulation (acquisition); and Section 18 of the 1937 Act as amended 
(disposition).
    25. The PHA will comply with all HOPE VI requirements for 
reporting and providing access to records.
    26. The PHA will comply with the Lead-Based Paint Poisoning 
Prevention Act (42 U.S.C. 4821, et seq.) and is subject to 24 CFR 
part 35 and 24 CFR 965.701, as they may be amended from time to 
time, and Section 968.110(k) or successor regulation.
    27. The PHA will comply with the policies, guidelines, and 
requirements of OMB Circular A-87 (Cost Principles Applicable to 
Grants, Contracts, and Other Agreements with State and Local 
Governments).
    28. The PHA will comply with 24 CFR part 85 (Administrative 
Requirements for Grants and Cooperative Agreements to State, Local 
and Federally Recognized Indian Tribal Governments), as modified by 
24 CFR 941 or successor part, subpart F, relating to the procurement 
of partners in mixed finance developments.
    29. The PHA will keep records in accordance with 24 CFR 85.20 
that facilitate an effective audit to determine compliance with 
program requirements, and comply with the audit requirements of 24 
CFR 85.26.
    30. The PHA will start construction within 12 months from the 
date of HUD's approval of the Supplemental Submissions as requested 
by HUD after grant award. This time period may not exceed 18 months 
from the date the Grant Agreement is executed.
    31. The PHA will submit the development proposal for the first 
phase of construction within 12 months of grant award.
    32. The PHA will complete construction within 48 months from the 
date of HUD's approval of the Supplemental Submissions. This time 
period for completion may not exceed 54 months from the date the 
Grant Agreement is executed.
    33. All activities that include construction, rehabilitation, 
lead-based paint removal, and related activities will meet or exceed 
local building codes. New construction will comply with the latest 
HUD-adopted Model Energy Code issued by the Council of American 
Building Officials.

[FR Doc. 02-19276 Filed 7-30-02; 8:45 am]
BILLING CODE 4210-33-P