[Federal Register Volume 68, Number 17 (Monday, January 27, 2003)]
[Notices]
[Pages 4018-4046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-1801]



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Part V





Department of Housing and Urban Development

Department of Health and Human Services

Department of Veterans Affairs





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Notice of Funding Availability (NOFA) for the Collaborative Initiative 
To Help End Chronic Homelessness; Notice

  Federal Register / Vol. 68, No. 17 / Monday, January 27, 2003 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

DEPARTMENT OF HEALTH AND HUMAN SERVICES

DEPARTMENT OF VETERANS AFFAIRS

[Docket No. FR-4805-N-01]


Notice of Funding Availability (NOFA) for the Collaborative 
Initiative To Help End Chronic Homelessness

AGENCIES: Office of Community Planning and Development, HUD; Substance 
Abuse and Mental Health Services Administration, and Health Resources 
and Services Administration, HHS; Substance Abuse, Mental Health and 
Provider Care Services, VA.

ACTION: Notice of funding availability.

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SUMMARY: This notice announces a $35 million initiative to help end 
chronic homelessness. The initiative, coordinated by the U.S. 
Interagency Council on the Homeless (ICH), involves the participation 
of three Council members: The Department of Housing and Urban 
Development, the Department of Health and Human Services, and the 
Department of Veterans Affairs. The initiative supports the 
Administration's goal to end chronic homelessness by seeking to create 
a collaborative and comprehensive approach to addressing homelessness.

SUPPLEMENTARY INFORMATION:

1. Title of Initiative

Collaborative Initiative to Help End Chronic Homelessness: Notice of 
Funding Availability

2. Departments

Department of Housing and Urban Development
Department of Health and Human Services
Department of Veterans Affairs

3. Date of Issuance

January 27, 2003.

4. Deadline for Receipt of Applications

April 14, 2003.

5. Authority

Housing and Urban Development, 42 U.S.C. 11303
Veterans Affairs, 38 U.S.C. 1710, 1712 and 1722
Health and Human Services/Substance Abuse and Mental Health Services 
Administration, Section 509 and 520 of the Public Health Service Act
Health and Human Services/Health Resources and Services Administration, 
Section 330, 42 U.S.C. 254b

6. Introduction

    The U.S. Interagency Council on the Homeless (ICH) is coordinating 
a $35 million joint initiative with the Departments of Housing and 
Urban Development (HUD), Health and Human Services (HHS), and Veterans 
Affairs (VA) to support the Administration's initiative to end chronic 
homelessness. This initiative seeks to create a collaborative and 
comprehensive approach to addressing the problems of homelessness of 
our most vulnerable citizens. This collaboration among the departments 
offers housing and service funding through a consolidated application. 
Applicants must show how the funds they are requesting will be part of 
a comprehensive and integrated community strategy to use funding 
sources, including mainstream services resources, to assist persons who 
are chronically homeless and homeless families with a disabled adult 
member (as defined in this NOFA) to move from the streets and emergency 
shelters into stable housing and receive the range of services and 
other support needed to promote and maintain greater self-sufficiency.
    Funds will be awarded by HUD, two agencies within HHS, and VA based 
on one consolidated application. This application requests a 
description of the comprehensive approach (Section 1) being taken by 
each applicant, and includes four Agency-Specific application sections 
(Sections 2-5) tied to the four federal funding streams. Applications 
must address both the overall approach and specific technical 
requirements established by the participating agencies. Funding 
provided by HUD must be used to provide permanent housing; HHS/SAMHSA 
(Substance Abuse and Mental Heath Services Administration) funds will 
be directed toward substance abuse treatment, mental health and related 
supportive services; and HHS/HRSA (Health Resources and Services 
Administration) funds will be used for primary health care services. 
Applicants will be able to obtain additional resources from local VA 
facilities by addressing the specific needs of chronically homeless 
veterans in their application.

7. Background and Purpose

    Research indicates that as many as 150,000 people experience 
chronic homelessness in this country each year. People experiencing 
chronic homelessness often have an addiction or suffer from a disabling 
physical or mental condition and are homeless for extended periods of 
time or experience multiple episodes of homelessness. For the most 
part, they get help for a short time but soon fall back to the streets 
and shelters. Because the needs of these persons are not 
comprehensively addressed, they cycle through the homeless system and 
consume a significant portion of available resources. In fact, research 
indicates that these individuals consume more than half of all homeless 
services. As such, there are significantly fewer resources available 
for 90 percent of the homeless--including families--who, with a little 
assistance, could often exit homelessness relatively quickly. By 
addressing the housing and service needs of persons who are chronically 
homeless, we will have more resources available to meet the needs of 
other homeless people. When persons who are chronically homeless have 
access to basic assistance like housing and treatment, they have fewer 
problems and are less likely to need expensive emergency interventions. 
The research makes it clear that one of our best hopes for ending 
homelessness of every sort depends on addressing chronic homelessness. 
We are setting policy and taking action based on that research.
    Goals: The purpose of this initiative is to assist states and 
communities in ending or substantially reducing chronic homelessness. 
The goals are as follows:
    1. Increase the effectiveness of integrated systems of care for 
persons experiencing chronic homelessness and homeless families with a 
disabled adult member by providing comprehensive services and treatment 
and linking them to housing.
    2. Create additional permanent housing for persons experiencing 
chronic homelessness and homeless families with a disabled adult 
member. A critical element in ending chronic homelessness is the 
provision of adequate housing resources. As such, HUD's funds may be 
used only for permanent housing activities. For the purpose of this 
NOFA, permanent housing is defined as housing that has no limit imposed 
on the length of a resident's stay in the project and includes the Safe 
Havens program in addition to other programs described in HUD's Agency-
Specific Section (Section 2).
    3. Increase the use of mainstream resources (e.g. Medicaid, 
Temporary Assistance for Needy Families, Food Stamps, Substance Abuse 
Prevention and Treatment Block Grants, Mental Health Block Grants, 
Social Services Block Grants, State Children's Health Insurance 
Program, etc.) that pay for

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services and treatment for this population. Existing mainstream 
resources are available, but underused in serving chronically homeless 
persons and homeless families with a disabled adult member.
    4. Replicate service, treatment, and housing models that have 
proven to be effective based on sound evidence.
    5. Support the development of infrastructures that sustain the 
housing, services, treatments, and inter-organizational partnerships 
beyond this federal initiative.

8. Target Population

    This initiative targets persons experiencing chronic homelessness, 
including veterans. A chronically homeless person is defined as ``an 
unaccompanied homeless individual with a disabling condition who has 
either been continuously homeless for a year or more OR has had at 
least four (4) episodes of homelessness in the past three (3) years.''
    Not more than 10 percent of the funds awarded will be targeted to 
projects that will serve homeless families with a disabled adult 
member. For the purpose of this NOFA, a family is defined as two or 
more adults, one of whom has a disabling condition as defined below.
    Two key terms in the above description of the population to be 
served that need to be defined are ``homeless'' and ``disabling 
condition.'' For the purpose of this NOFA, the term ``homeless'' means 
``a person sleeping in a place not meant for human habitation (e.g., 
living on the streets) or in an emergency homeless shelter.'' For the 
purpose of this NOFA, disabling condition is defined as ``a diagnosable 
substance use disorder, serious mental illness, developmental 
disability, or chronic physical illness or disability, including the 
co-occurrence of two or more of these conditions. A disabling condition 
limits an individual's ability to work or perform one or more 
activities of daily living.''
    One applicant may serve both chronically homeless individuals and 
homeless families with a disabled adult member, but must complete 
separate applications for each population. No one project and no one 
application may serve both populations.

9. Funding

    This notice is intended to simplify the application process, bring 
consistency and uniformity to the application and selection process, 
and facilitate funding opportunities available from these three 
departments by awarding grants in a coordinated fashion. By announcing 
this notice as a joint effort, the participating federal agencies 
believe applicants will be better able to coordinate and integrate 
services within communities to avoid duplication, close gaps, and 
comprehensively serve those persons most in need of housing and 
services.
    Although funds will come from separate federal agencies for 
specific components of the housing and service plans, awards will be 
made on the basis of a comprehensive review by all involved agencies. 
This is to ensure that applicants have addressed and can provide for 
each of the four core elements--(1) housing, (2) mental health and 
substance abuse treatment, (3) primary care, and (4) veteran's 
services. In order to be eligible for funds from any of the 
participating agencies, applicants must address each of these elements, 
even if they are not requesting funding for a particular element. 
Applicants will address these elements in the Agency-Specific sections 
of the application. Even if not requesting funding from each of the 
four agencies, the applicant must still complete the appropriate 
section of each agency's portion of the application form. For example, 
provision of primary care services is a required core element, but 
applicants may use other resources instead of applying for HHS/HRSA 
funds to provide these services. The Agency-Specific sections will 
specify which questions pertain to applicants not seeking funding from 
each of the partnering federal agencies.
    The term of the grant award will vary depending on the funding 
sources being used. The overall intent is to make the program available 
for three to five years, based on availability of appropriations. The 
entirety of the HUD and VA funds will be awarded at the beginning of 
the grant term, in FY 2003, for the life of the project. HHS funds will 
be awarded on an annual basis, subject to the availability of 
appropriations.
    [sbull] Approximately $20 million is expected to be awarded by HUD 
for terms of three to five years to fund permanent housing activities. 
HUD's funds may be used under specified components of the Supportive 
Housing Program, which funds acquisition, minor rehabilitation, 
leasing, and operating costs for permanent housing for up to three (3) 
years, or specified components of the Shelter Plus Care Program, which 
provides rental assistance to tenants for five (5) years.
    [sbull] Approximately $7 million is expected to be available from 
HHS/SAMHSA in FY 2003 to fund mental health and substance abuse 
services. Awarding of FY 2003 funds is contingent on passage of a 
permanent HHS appropriation for FY 2003. Awards in FY 2004 and 2005 
will be subject to the availability of appropriations and will be 
reduced in size in order to increase grantees' reliance on mainstream 
resources and alternate sources of funding.
    [sbull] Approximately $3 million is expected to be available from 
HHS/HRSA in FY 2003 to fund primary health care services. These funds 
will be awarded as supplemental awards to existing Section 330 Health 
Centers. The awarding of FY 2003 HHS/HRSA funds is contingent on 
passage of a permanent HHS appropriation for FY 2003. Subject to 
availability of appropriations, funds may be available for FY 2004 and 
FY 2005.
    [sbull] Subject to availability of appropriations, approximately $5 
million of in-kind support is expected to be available from VA to fund 
services for chronically homeless veterans for grant terms of three 
years.
    Of the $35 million available, no grant award for an individual 
project will exceed $3.5 million in total grant funds from all federal 
partners in this initiative. In addition, HUD will not award more than 
$2 million to any one project or applicant for housing activities. HHS/
SAMHSA will not award more than $700,000 to any one project or 
applicant for mental health and substance abuse services for the first 
year of funding. Also, HHS/HRSA will not award more than $300,000 per 
project per year. The awarding of HHS funds in FY 2004 and FY 2005 will 
be subject to continued availability of funds and progress achieved by 
the grantee.
    In making the funding decisions, if funds from one source are 
exhausted, but funds from other sources remain available, applicants 
may still receive available funds if they can demonstrate an ability to 
provide the services or housing with alternate sources of support. This 
situation will be handled in the form of a conditional award or 
deferred decision.

10. Application Submission

    The HUD Headquarters building, in which the U.S. Interagency 
Council on the Homeless is currently located, has implemented security 
procedures that apply to application submission. Please read the 
following instructions carefully and completely.
    [sbull] No hand deliveries will be accepted.
    [sbull] Applications may only be shipped using DHL, Falcon Carrier, 
Federal Express (FedEx), United Parcel Service (UPS), or the United 
States Postal Service (USPS).

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    [sbull] All mailed applications must be postmarked on or before 
midnight of the due date established by this Notice of Funding 
Availability (NOFA) and must be received within 30 calendar days of the 
due date.
    [sbull] All applicants who mail applications must have a 
Certificate of Mailing (USPS Form 3817) as their documentary evidence 
that the application was filed on time.
    Addresses: Since four federal partners will be involved in 
reviewing applications, provide one original and four copies of your 
application to the U.S. Interagency Council on the Homeless, Room 2204, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410. The application deadline submission date is April 
14, 2003.
    Applications Sent by Overnight/Express Mail Delivery: If your 
application is sent by overnight delivery or express mail, your 
application will be considered timely if it is placed with the delivery 
service by the application deadline. You may be required to submit 
documentary evidence that your application was placed in transit with 
the overnight delivery/express mail service no later than the 
application due date. Delivery must be made between 8:30 a.m. and 5:30 
p.m. Eastern time, Monday through Friday.

11. General Guidance on Application Development

    This NOFA provides the application procedures and requirements for 
funding under this initiative, and is divided into separate sections. 
Section 1, the Comprehensive Approach, explains the requirements and 
rating factors applicable to the Comprehensive Approach section of the 
application. Sections 2-5, the Agency-Specific sections of this NOFA, 
provide descriptions of the specific programs for which funding is made 
available and describes any additional procedures and requirements that 
are applicable to a specific component of the comprehensive program. 
Please be sure you read both the Comprehensive Approach and the Agency-
Specific sections of this NOFA to ensure that you respond to all the 
requirements for funding.
    Applicant Eligibility: One organization is expected is take the 
lead in submitting the consolidated application. This lead organization 
is expected to submit the consolidated application, which identifies 
the consortium arrangements, and is responsible for coordinating this 
consortium over the term of the grant. The lead organization must be a 
non-profit or public entity. The entities that partner with the lead 
organization must meet one or more of the agency-specific eligibility 
criteria. See the Agency-Specific sections of the NOFA to determine 
your eligibility to apply for specific funds. Participation by eligible 
non-profit organizations, including faith-based and other community-
based organizations, is encouraged.
    Additionally, applicants must commit that any proposed project will 
exclusively serve those individuals who are chronically homeless or 
homeless families with a disabled adult member as defined in this 
notice.
    Technical Assistance: Before the application due date, agency staff 
will be available to provide you with general guidance and technical 
assistance about this NOFA. However, staff are not permitted to assist 
in preparing your application. For technical questions on program 
issues, contact the U.S. Interagency Council on the Homeless at 1-866-
450-2273 (this number may also be dialed as 1-866-450-CARE) (these are 
toll-free telephone numbers). Persons with hearing and/or speech 
challenges may access the above telephone number by TTY (text 
telephone) by calling the Federal Relay Service at 1-800-877-8339 (this 
is a toll-free number). The Council will be able to put applicants in 
contact with the federal agency best able to answer technical 
questions.
    Satellite Broadcast: HUD, HHS, and VA are planning to hold an 
information broadcast via satellite for potential applicants to learn 
more about this initiative and preparation of the applications. For 
more information about the date and time of the broadcast, consult the 
web pages listed below.
    Application Submission: To apply for funding under this NOFA, the 
lead applicant must submit a cover letter, as described in the 
Application Kit, and a signed Memorandum of Agreement between all 
participating entities. The Agency-Specific sections of the application 
require an agency-specific SF-424 and set of assurances and 
certifications, plus additional forms, certifications, and other 
information required for their specific programs. All of the required 
forms for each agency can be found in the application kit.

12. Application Kits

    You can download the application kit and required forms from the 
following federal Web sites:

www.ich.gov
http://www.hud.gov/offices/cpd/homeless/apply/index.cfm
http://www.hrsa.gov/grants/homeless.htm
http://www.samhsa.gov
http://www.va.gov/homeless/page.cfm?pg=20

13. Review Process

    Applications submitted in response to this NOFA will be reviewed 
for threshold criteria and technical merit. Threshold criteria are 
described below, and additional threshold criteria are included in the 
Agency-Specific sections.
    Overall threshold requirements are that:
    [sbull] All applicants and all participating partners must be non-
profit or public entities;
    [sbull] Each application must address all aspects of housing and 
service provision, even if the applicant is not requesting funds for 
one or more of these elements;
    [sbull] The application is received by the specified receipt date;
    [sbull] The application is complete; and
    [sbull] The application conforms to the instructions for format, 
including page limitations, as described in the Application Kit.
    Technical merit has two components--the merit of the Comprehensive 
Approach and the merit of activities proposed under each Agency-
Specific section. An application must pass both reviews in order to 
receive funding. The maximum total score for any applicant under this 
NOFA is 200 points. These points are divided between the Agency-
Specific sections and the Comprehensive Approach section. The Agency-
Specific sections are worth a total of 100 points. Within these 100 
points, HUD's portion is worth 30 points, the HHS/SAMHSA section is 
worth 25 points, the HHS/HRSA portion is worth 25 points, and the VA 
section is worth 20 points. If an application is deficient in one 
Agency-Specific section, the entire application will be disqualified. 
Deficiency is defined as scoring below 40 percent of the allotted 
points for any agency's section.
    The U.S. Interagency Council on the Homeless (ICH) will serve as 
the central point for the receipt of applications. Upon receipt at ICH, 
applications will be sent to HUD, HHS, and VA where each agency will 
review its Agency-Specific section first for threshold criteria and 
then, for those applications passing the threshold, for technical 
merit. (See the Agency-Specific sections for each agency's criteria.)
    Applications that pass all four agency's reviews will move to the 
next stage of review. In this stage, an interdisciplinary, 
interdepartmental team will review and score each

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application's Comprehensive Approach using the six rating criteria 
described in Section 1--Comprehensive Approach. The Comprehensive 
Approach is scored up to an additional 100 points, broken down among 
these six rating criteria. Only those applications with a Comprehensive 
Approach that is acceptable to all federal partners involved will be 
funded.
    Ranking: The score for all ranking factors will be summed to obtain 
a total score for each project submitted under the collaborative NOFA. 
The projects will then be ranked from highest to lowest nationally 
according to the total combined score.
    Selection and Adjustments to Funding: (a) Selection--Projects will 
be awarded based on national ranking as described above and according 
to the provisions for geographical diversity described below. The 
awarding of funds may be conditional upon receipt of further 
information, as requested by the federal agencies involved.
    When insufficient funds remain to fund all projects requesting 
funding that receive the same total score, ties will be broken among 
such projects by comparing scores received by the projects for each of 
the following scoring factors, in the order shown: Soundness of 
Approach, Capacity, and Coordination.
    (b) Adjustments to Funding--In order to ensure maximum geographic 
diversity in the awards, no individual project applicant and no one 
unit of general local government will be awarded more than 10 percent 
of the total amount of available resources under this collaborative 
NOFA. The federal departments reserve the right to make selections out 
of rank order to provide for geographic distribution of funds.
    Additional selection considerations: In order to be eligible for 
funding under this notice, applicants must commit that funds will be 
used exclusively to serve those individuals who are chronically 
homeless as that term is defined in this notice except that no more 
than 10 percent of these funds will be awarded to projects committed to 
serving disabled homeless families as that term is defined in the 
notice.

14. General Reporting/Evaluation Requirements

    Grantees must submit annual progress reports and a final report to 
the ICH and to the grant-administering agencies. ICH and the federal 
partners will use this information to determine progress of the 
grantees toward meeting their goals. Consistent with the main objective 
of this initiative, grantee performance will be measured by the number 
of persons experiencing chronic homelessness and homeless families with 
a disabled adult member moved off the streets and out of shelters and 
placed into permanent housing. It is expected that local evaluations 
will include measuring progress toward accomplishing the tasks 
described in the grant application and providing for collection of 
quantitative and qualitative data that permits measurement of progress 
toward achieving the outputs and outcomes envisioned by the goals and 
objectives contained in the application. Grantees must collect outcome 
information on clients served to be compared against benchmarks 
throughout the term of the grant.
    The annual progress and final reports shall include, but are not 
limited to, narrative and empirical information on the following: (1) 
Type and number of housing units provided; (2) characteristics of the 
clients and residents served; (3) a description of the services and 
treatments provided, including funding sources other than from this 
grant; (4) description of the collaborations and partnerships 
established over the course of the grant; (5) the extent to which 
services are financed by mainstream programs and how financing patterns 
change during the duration of the grant program; (6) any revisions or 
refinements to the benchmark estimate of persons experiencing chronic 
homelessness in the target community; and (7) other such information as 
prescribed by the federal partners.
    As a condition of award, grantees funded under this initiative 
agree to fully cooperate with any organization funded by one or more of 
the sponsoring federal agencies to conduct an independent evaluation of 
the full initiative.

15. Post-Award Requirements

    The federal partners will each provide post-award support, as 
appropriate, to grantees through technical assistance on clinical, 
programmatic, and evaluation issues. The Agency-Specific portions of 
this NOFA may specify further post-award requirements. Please refer to 
these sections for this information.

16. General Outline of Application

    While the funding for this initiative will come from HUD, HHS, and 
VA, one overall application will be required, including Agency-Specific 
sections, each of which may specify program-specific SF-424s, sets of 
assurances and certifications, and additional forms. A cover letter and 
memorandum of agreement between all participating entities are 
required, as described in the application kit. The overview of each 
Section is as follows:
    1. Comprehensive Approach: The applicant will be required to submit 
a description of its approach that is comprehensive in nature and 
includes: (1) A description of the problem; (2) the target population; 
(3) a description of the method by which potential clients will be 
identified and referred to the program; (4) the gaps in housing and 
supportive services; (5) provision for client-level comprehensive 
service planning; (6) the coordination of the housing with needed 
supportive services to assure access to these resources by the target 
population; (7) a planning process that addresses leveraging of 
resources and sustainability of services and treatment beyond the 
availability of these federal funds; (8) capacity of the providers to 
deliver housing, treatment, and services; (9) an implementation plan 
with a firm schedule of major action steps; (10) the budget and fiscal 
controls; and (11) how progress toward reducing chronic homelessness 
will be monitored and measured.
    2. HUD Section-Permanent Housing: The applicant will be required to 
submit a description of how HUD funds will be used to develop permanent 
housing, a budget, and a budget narrative. A description of housing 
activities for which funds are requested from HUD should also be 
included in this section. Additionally, the applicant must complete 
several mandatory applicant certifications, which are provided. If not 
requesting HUD funding, the applicant is required to explain how the 
permanent housing units needed to house individuals served by the 
proposed project will be provided.
    3. HHS/SAMHSA Section-Substance Abuse Treatment, Mental Health, and 
Related Supportive Services: The applicant will be required to submit 
an application (Public Health Service Application Form 5161-1) that 
describes how HHS/SAMHSA funds will be used to provide substance abuse 
treatment, mental health services and related supportive services, a 
budget, and a budget narrative for these components of the 
comprehensive approach. If not requesting SAMHSA funding, the applicant 
is required to explain how the substance abuse and mental health 
services will be provided.
    4. HHS/HRSA Section-Primary Health Care Services: The applicant 
will be required to submit an application (Public Health Service 
Application Form 5161-1) that describes how HHS/HRSA funds will be used 
to provide primary health care services and

[[Page 4022]]

coordination of care with other providers involved in the 
collaboration. Applicants are limited to existing Health Center 
grantees (including Health Care for the Homeless grantees) currently 
funded under Section 330 of the Public Health Service PHS Act (PHS 
Act). Applicants are limited to existing Health Centers, since funding 
for this initiative is coming from the Health Center funding line and 
consequently the requirements of Section 330 of the PHS Act apply to 
the recipients of those funds. In addition, existing Health Center 
grantees receive certain privileges, including coverage under the 
Federal Tort Claims Act, ability to receive higher Medicare and 
Medicaid reimbursement rates, and reduced price pharmaceuticals. It 
would be inappropriate to provide these privileges to a new group of 
grantees who had not been approved through the extensive, comprehensive 
application process to achieve Section 330 Health Center status.
    Applications should be submitted as a proposed supplemental grant 
and will be funded as such. Further instructions appear in this 
section. If not requesting HRSA funding, the applicant is required to 
explain how the primary health care services will be provided.
    5. VA Section--Substance Abuse, Mental Health and Primary Care 
Services Targeted to Veterans: The applicant is required to submit a 
detailed description of how a collaborative relationship with VA will 
be created and sustained in an effort to provide services to 
chronically homeless veterans. The chronically homeless veterans to be 
served will be those veterans housed in or being provided services 
through this joint initiative and who meet the definition of homeless 
as put forth in this NOFA. Although funding will not be awarded 
directly to the recipient of the grant, funding is available for the VA 
facility that partners with the applicant. VA facilities can include 
medical centers or programs under the direction of medical centers 
including VA outpatient clinics. If not requesting VA services, the 
applicant is required to explain how the needs of chronically homeless 
veterans will be addressed.
    Statement of Support: The Council and the three agency Council 
members (HUD, HHS and VA) participating in this initiative look forward 
to receiving applications that set out a comprehensive and integrated 
community strategy to use funding sources to assist persons who are 
experiencing chronic homelessness and homeless families with a disabled 
adult member.

    Dated: December 20, 2002.
Mel Martinez,
Secretary, Department of Housing and Urban Development.
Tommy G. Thompson,
Secretary, Department of Health and Human Services.
Anthony J. Principi,
Secretary, Department of Veterans Affairs.
BILLING CODE 4210-29-P

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Section 1: Comprehensive Approach--100 Points

I. Overview

    The purpose of the Comprehensive Approach is to demonstrate that 
the applicant and the providers of all four core elements--(1) 
permanent housing, (2) mental health and substance abuse treatment and 
related supportive services, (3) primary care, and (4) veteran's 
services--are working in collaboration to integrate housing and 
services for persons experiencing chronic homelessness and disabled 
homeless families. This comprehensive strategy will use funding 
sources, including mainstream services resources, to provide a holistic 
approach to ending chronic homelessness.
Eligible Applicants
    Although the lead applicant must submit the comprehensive approach 
as a part of the consolidated application, it is expected that the lead 
applicant and the relevant partner agencies will have collaborated in 
developing the comprehensive approach. It is up to the partner entities 
to provide sufficient and appropriate resources to plan and coordinate 
this collaborative effort throughout the grant period.
Funding Criteria
    [sbull] Threshold Requirements.
    [sbull] Technical Merit.
    [sbull] Availability of Funds.

II. Rating Criteria for the Comprehensive Approach

    The Comprehensive Approach will not receive technical review if any 
one of the Agency-Specific sections score below 40 percent of the 
allotted points as the result of technical review of each agency's 
section.
    The Comprehensive Approach will be reviewed using the following six 
criteria:

1. Documentation of Need and Extent of the Problem

    This will include the extent to which the applicant demonstrates 
understanding of the unique characteristics of the target population, 
in terms of the overall number of homeless persons, disabled homeless 
families, and chronically homeless persons and their characteristics. 
The applicant must include a preliminary estimate of the number of 
persons experiencing chronic homelessness in the target community to 
establish a benchmark of need, and the method by which this estimate 
was derived. The narrative will also include a detailed assessment of 
the community resources currently available to meet the permanent 
housing and supportive services needs of the target population and the 
extent to which gaps in available services are identified and 
documented. Points: 10.

2. Soundness of Approach and Adequacy/Appropriateness of Delivery 
System

    The Federal partners will consider the adequacy of the 
comprehensive approach, including the method by which potential clients 
will be identified and referred to the program, and the method by which 
the needs of the target population will be addressed. This includes: 
The extent to which a comprehensive range of services and treatment is 
available; the availability of permanent housing units that meet 
housing quality standards; and, the adequacy of the proposed service 
delivery model that coordinates treatment, services and supports with 
housing. The quality of the comprehensive approach will also be judged 
on the comprehensiveness of the content, feasibility of approach, and 
provision for linkages and coordination of services. In particular, the 
comprehensive approach needs to be the foundation for establishing 
sustainable service programming beyond the life of the Federal grant. 
Issues such as resource leveraging, establishing entitlements, and 
enrollment in mainstream service delivery are critical components of a 
sound comprehensive approach. Points: 25.

3. Capacity of the Applicant and Relevant Partner Agencies and Staff

    This will include the demonstrated capacity of the lead applicant 
and other organizations that will be involved in the proposed project 
to provide appropriate permanent housing, primary care, mental health 
and substance abuse treatment, and supportive services. It will also 
include the appropriateness of the management and organizational 
capability of all organizations involved in this initiative. The 
Federal partners will take into account: The applicants' past 
performance in managing funds; the timely use of funds received from 
Federal, state or local programs; past success in meeting performance 
targets for completion of activities; and, the number of persons to be 
served or targeted for assistance. For those persons with service needs 
not eligible under this NOFA, capacity also includes the ability of the 
partnering entities to obtain necessary services for these persons. For 
example, a person with a developmental disability or persons living 
with AIDS and requiring home health care may have service needs beyond 
the scope of this NOFA. Partnering entities must explain how these 
needs will be met. Points: 20.

4. Appropriateness of Budget and Fiscal Controls

    This will include a review of the following: How the proposed 
program is a cost-effective approach to meeting the needs of the target 
population; the resources required to achieve the goals and objectives; 
the expectations regarding Federal grant support and maximization of 
non-grant revenue relative to the proposed plan, including a 
description of leveraging resources; and the total grant dollars per 
client/unit and total cost per client/unit. Points: 15.

5. Collaboration

    This will include the extent to which the lead applicant can 
coordinate the participation of all partner agencies/organizations, 
sub-contractors, consultants, sub-recipients, and members of consortia 
that are firmly committed to the project. Memoranda of agreement from 
the major providers of housing and services will be required to prove 
the collaboration efforts of the partners. In addition, specific plans 
on how the project will systematically assist clients in accessing 
major Federal, State and local programs, such as Medicaid, TANF, SSI, 
SSDI, and VA Health Care, must be described. Points: 20.

6. Adequacy/Appropriateness of Evaluation Plan

    The Federal partners will consider the appropriateness and adequacy 
of the overall plan for evaluating and monitoring the process and 
outcomes of the project, both for the lead organization and for all the 
partners, to ensure that the goals of the initiative are being met. 
This will include plans to comply with all requirements for each agency 
(i.e. Government Performance Results Act, Annual Performance Report) 
and the proposed approaches for gathering quantitative and qualitative 
data on the target population. Applicants must demonstrate the 
existence of a data collection system to track the goals/objectives of 
the project. Points: 10.

III. Reporting and Evaluation Requirements

    The lead applicant must submit annual progress reports and a final 
report to the ICH and to the four Federal agencies. The annual progress 
and final

[[Page 4026]]

reports shall include, but are not limited to, narrative and empirical 
information on the following: description of the collaborations and 
partnerships established over the course of the grant; description of a 
strategic planning process; the extent to which services are financed 
by mainstream programs and how financing patterns change during the 
duration of the program; the extent to which barriers in accessing 
housing and services are reduced; numbers of clients served and 
permanent housing provided, any revisions or refinements to the 
benchmark estimate of persons experiencing chronic homelessness in the 
target community, and other such information as prescribed by the 
Federal partners.

BILLING CODE 4210-29-P

  Federal Register / Vol. 68, No. 17 / Monday, January 27, 2003 / 
Notices  

[[Page 4027]]


[GRAPHIC] [TIFF OMITTED] TN27JA03.002


  Federal Register / Vol. 68, No. 17 / Monday, January 27, 2003 / 
Notices  

[[Page 4029]]



Section 2: HUD Section--30 Points

I. Purpose

    The purpose of the housing component of this collaborative NOFA is 
to provide permanent housing for chronically homeless persons and 
disabled homeless families when proposed as part of homeless assistance 
projects in which housing is directly linked to needed supportive 
services funded through other components of this NOFA or through other 
sources.
Eligible Applicants
    The chart in Appendix 1--HUD of this announcement identifies the 
eligible applicants for the McKinney-Vento Act programs through which 
housing funds are available.

II. Amount Allocated

    Approximately $20 million in funding is available under the housing 
component of this collaborative NOFA. Funds for housing will be awarded 
for new projects under only one of the following two McKinney-Vento Act 
programs:
    A. Supportive Housing Program (Permanent Housing or Safe Havens 
Components only); or,
    B. Shelter Plus Care (Tenant-Based, Sponsor-Based, and Project-
Based without Rehabilitation components only)

III. Program Descriptions

A. Supportive Housing Program (SHP)
1. Purpose and Eligible Activities
    The SHP program promotes the development of supportive housing and 
services that help homeless persons transition from homelessness to 
living as independently as possible. Each project submitted under SHP 
must be classified under one of the program components described below. 
Eligible activities under this NOFA are limited to: acquisition, minor 
rehabilitation (e.g. reconfiguring a doorway for handicap 
accessibility), leasing, operating costs, and limited administrative 
expenses. Not eligible for funding are new construction, major 
rehabilitation, or services costs. New construction is not included, as 
this activity often requires a substantial amount of time to develop 
the project and the emphasis of this initiative is to provide housing 
as soon as possible. Supportive services are not an eligible activity 
because HUD wants to devote the resources it provides through this 
initiative to the provision of housing; the resources being made 
available by HHS and VA for this initiative can be used to provide 
supportive services needs in the project.
2. SHP Components
    The following SHP components are eligible for funding under this 
NOFA:
    a. Permanent Housing for Persons with Disabilities. Permanent 
Housing projects provide long-term housing and supportive services 
(provided with other funds) that are designed to enable homeless 
persons with disabilities to live as independently as possible. 
Permanent housing can be provided at one site or in scattered sites. 
Further, Permanent Housing may be tenant-based, meaning that the tenant 
can choose the housing. This is consistent with the philosophy of 
supported housing. This approach focuses on identification and 
engagement through assertive outreach to individuals and families, 
immediate placement in permanent housing, and availability of 
appropriate supportive services. All Permanent Housing for Persons with 
Disabilities projects must comply with the program size limitations, as 
described in Section 424(c) of the McKinney Act.
    b. Safe Havens. Safe Havens are projects targeted to hard-to-reach 
homeless persons who have severe mental illness and are on the streets. 
The goal of a Safe Haven is to serve as a small, highly supportive 
environment where an individual can feel at ease, out of danger, and 
subject to limited service demands. Tenants can move directly into 
housing with few explicit services required. It is hoped that after a 
period of stabilization in a Safe Haven, residents will be more willing 
to participate in services and referrals and will eventually be ready 
to move to more traditional forms of housing. Safe Havens may serve as 
an entry point to the service system and provide access to basic 
services such as food, clothing, bathing facilities, telephones, 
storage space, and a mailing address. Safe Havens are not appropriate 
housing for homeless families with disabilities.
    The specific criteria that must be exhibited by a Safe Haven are:
    [sbull] No limit on length of stay.
    [sbull] Provision of 24-hour residence.
    [sbull] Provision of private or semiprivate accommodations.
    [sbull] Overnight occupancy limited to 25 persons.
    [sbull] May also provide supportive services to eligible persons 
who are not residents on a drop-in basis.
B. Shelter Plus Care
1. Shelter Plus Care (S+C)--Purpose and Eligible Activities
    Shelter Plus Care serves only homeless persons who have 
disabilities and may be administered on a tenant-, sponsor-, or 
project-based level. S+C components were designed to give applicants 
flexibility in devising appropriate housing and supportive services for 
homeless persons with disabilities. Rental assistance provided through 
the S+C program must be matched in the aggregate by the recipient on a 
dollar for dollar basis with supportive services. Federal funds 
received from the other participating agencies under this NOFA are 
eligible to be counted as matching funds. Rental assistance is the only 
eligible activity for this program.
2. S+C Program Components
    The following S+C program components are eligible for funding under 
this NOFA:
    a. Tenant-Based S+C--Tenant-Based S+C assisted units may be of any 
type, and clients may retain the rental assistance even if they move, 
as long as they stay within a S+C unit. Assisted projects may provide 
supportive services to clients, either by the applicant or a third 
party, in a variety of ways, from structured to very low-demand.
    b. Sponsor-Based S+C--Sponsor-Based S+C provides rental assistance 
through contract(s) between the grant recipient and a nonprofit 
organization(s), called a sponsor. The nonprofit organization may be a 
private nonprofit organization or a community mental health center 
established as a public nonprofit organization. The assisted units must 
be owned or leased by the sponsor. After a grant is awarded should the 
sponsor lose its capacity to own or lease the assisted units, the 
grantee must identify an alternate sponsor in order to continue to 
serve the original number of persons proposed to be served.
    c. Project-Based without Rehabilitation S+C--Project-Based without 
Rehabilitation S+C provides rental assistance through a contract with a 
building owner(s). An applicant must enter into a contract with the 
building owner(s) for the full five-year period of assistance. The 
building owner must agree to accept eligible S+C participants to live 
in an assisted unit for this time period.
C. Match
    Applicants must match Supportive Housing Program funds provided for 
acquisition and minor rehabilitation (new construction, major 
rehabilitation, and supportive services are not eligible activities 
under this collaborative NOFA) with an equal amount of funds from other 
sources; for operating costs, since by law SHP can pay no more than

[[Page 4030]]

75 percent of the total operating budget for supportive housing, 
applicants must provide at least 25 percent of the total annual 
operating costs. The cash source may be the applicant, the Federal 
Government, State and local governments, or private resources. In-kind 
contributions are not eligible as match under SHP.
    Applicants must match rental assistance provided through the 
Shelter Plus Care Program on a dollar for dollar basis with supportive 
services.
D. Statutory and Regulatory Requirements
    An applicant selected for funding as a result of the competition 
will be required to coordinate and integrate the homeless project with 
other mainstream health, social services, and employment programs for 
which homeless populations may be eligible, including Medicaid, State 
Children's Health Insurance Program, Temporary Assistance for Needy 
Families, Food Stamps, and services funding through the Mental Health 
Block Grant and Substance Abuse Block Grant, Workforce Investment Act, 
Welfare-to-Work grant program, SSI, SSDI, and Healthcare for Homeless 
Veterans Program. In addition, as a condition for award, any 
governmental entity serving as an applicant must agree to develop and 
implement, to the maximum extent practicable and where appropriate, 
policies and protocols for the discharge of persons from publicly 
funded institutions or systems of care (such as health care facilities, 
foster care or other youth facilities, or correction programs and 
institutions) in order to prevent such discharge from immediately 
resulting in homelessness for such persons. This condition for award is 
intended to emphasize that States and units of general local government 
are primarily responsible for the care of these individuals, and to 
forestall attempts to use scarce McKinney-Vento Act funds to assist 
such persons in lieu of State and local resources.
E. Special Provisions Applicable to This Notice
    1. Only new SHP and S+C projects, including expansions of HUD-
funded existing projects, will be funded.
    2. Any project submitted under this NOFA must be coordinated with 
the Continuum of Care plan for its region and must submit a 
certification of consistency with the applicable Continuum of Care 
plan.
    3. Only the following components of the SHP will be funded under 
this NOFA: Permanent Housing and Safe Havens.
    4. Only tenant-, sponsor-, and project-based without rehabilitation 
components of S+C will be funded.
    5. The term of all proposed SHP projects must be three (3) years. 
The term of all proposed S+C projects must be five (5) years.
    6. New construction and substantial rehabilitation activities will 
not be eligible SHP activities under this notice. Minor rehabilitation 
activities, such as those required to remove lead-based paint or 
conform a unit to ADA standards, are eligible. All other activities 
eligible under the SHP program are eligible for purposes of this NOFA. 
See Appendix 1--HUD for eligible activities.
    7. Applicants are encouraged to use approaches that can rapidly 
move chronically homeless persons into housing with necessary 
supportive services.
    8. All SHP and S+C statutory and regulatory provisions, other than 
those specifically amended by this NOFA, apply to the use of those 
funds.
F. Other Program-Specific Requirements
    Where an applicant for Supportive Housing Program funding is a 
State or unit of general local government that utilizes one or more 
nonprofit organizations to administer the homeless assistance 
project(s), administrative funds provided as part of the SHP grant must 
be passed on to the nonprofit organization(s) in proportion to the 
administrative burden borne by them for the SHP project(s). States or 
units of general local government that pass on at least 50 percent of 
the administrative funds made available under the grant will be 
considered as having met this requirement. (Note: This requirement does 
not apply to the S+C Program, since paying the costs associated with 
the administration of these grants is ineligible by regulation. For the 
S+C program, administrative costs associated with the administration of 
rental assistance are eligible, but are capped at eight (8) percent of 
the total grant award).
G. Timeliness Standards
    As an applicant, you are expected to initiate your approved 
projects promptly in accordance with the instructions of this 
announcement. In addition, if you fail to satisfy the following 
timeliness standards being established specifically for funding awarded 
under this collaborative NOFA, the awarded funding may be withdrawn in 
whole or in part:
1. Supportive Housing Program
    [sbull] Your award may be deselected if you do not demonstrate site 
control within three (3) months of the date of your grant award letter.
    [sbull] Your award may be deselected if the following additional 
timeliness standards are not met:

--You must complete any minor rehabilitation activities permitted under 
the terms of your SHP award within nine (9) months of the date of the 
grant award letter.
--You must begin all activities that may proceed independent of minor 
rehabilitation activities within six (6) months of the date of the 
grant award letter.
2. Shelter Plus Care Program Components
    Your award may be deselected if you do not meet the following 
timeliness standard: For Tenant-based Rental Assistance, for Sponsor-
based Rental Assistance, and for Project-based without Rehabilitation 
Rental Assistance, you must begin providing the rental assistance to at 
least a majority of the awarded units within six (6) months of the date 
of the grant award letter.

IV. Selection

A. Review, Rating, and Conditional Selection

    The same review, rating, and conditional selection process will be 
used for all proposed SHP/PH, SHP/Safe Havens and S+C projects. The 
factors described in the General Section of this NOFA together with all 
agency-specific factors will be used to assign points. To review and 
rate applications, expert panels may be used. In order to obtain 
certain expertise and outside points of view, including views from 
other Federal agencies, these panels may include persons not currently 
employed by HUD, HHS or VA. Only those projects passing threshold 
criteria will be rated. Paragraphs (1), (2), and (3) below describe the 
threshold reviews that will be conducted. Paragraph (4) describes the 
HUD-specific rating factors that will be applied to those projects 
requesting housing funds.
1. Applicant eligibility
    The identity of each applicant submitting an application in 
response to this component of the collaborative NOFA will be reviewed 
to ensure that each such entity meets the eligibility requirements of 
the program for which it is seeking assistance. If it is determined 
that these standards are not met, the project will be rejected.

[[Page 4031]]

2. Project eligibility
    Proposed projects submitted in response to this component of the 
collaborative NOFA will be reviewed to determine if they meet the 
following eligibility standards. If it is determined that the following 
standards are not met by a specific project or activity, the project or 
activity will be rejected or reduced.
    (a) The activities being proposed must meet the eligibility 
requirements as specified in this notice. Please note that for the SHP/
PH, SHP/Safe Havens and S+C programs, these requirements are more 
restrictive than defined by program statute and regulation. At least 
one of the activities for which assistance is requested must be 
determined eligible or the proposed project will be rejected from the 
competition.
    (b) The population to be served must meet the eligibility 
requirements as specified in this notice. Please note that for SHP/PH, 
SHP/Safe Havens and the S+C programs, these requirements are more 
restrictive than defined by program statute and regulation.
    (c) The project must be cost-effective and such costs must not 
deviate substantially from the norm in the locale for the kind of 
activity being proposed.
3. Compliance With Fair Housing and Civil Rights Laws
    (a) 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).
    (b) If you, the applicant:
    (i) Have been charged with a systemic violation of the Fair Housing 
Act alleging ongoing discrimination;
    (ii) Are a defendant in a Fair Housing Act lawsuit filed by the 
Department of Justice alleging an on-going pattern or practice of 
discrimination; or,
    (iii) Have received a letter of non-compliance findings, 
identifying on-going or systemic noncompliance, under Title VI of the 
Civil Rights Act, Section 504 of the Rehabilitation Act, or section 109 
of the Housing and Community Development Act, and if the charge, 
lawsuit, or letter of findings has not been resolved to HUD's 
satisfaction before the application deadline stated in this NOFA, you 
may not apply for assistance under this NOFA. HUD will not rate and 
rank your application.
    HUD's decision regarding whether a charge, lawsuit, or a letter of 
findings has been satisfactorily resolved will be based upon whether 
appropriate actions have been taken to address allegations of on-going 
discrimination in the policies or practices involved in the charge, 
lawsuit, or letter of findings. Examples of actions that may be taken 
prior to the application deadline to resolve the charge, lawsuit, or 
letter of findings, include but are not limited to:
    (a) A voluntary compliance agreement signed by all parties in 
response to the letter of findings;
    (b) A HUD-approved conciliation agreement signed by all parties;
    (c) A consent order or consent decree; or
    (d) A judicial ruling or a HUD Administrative Law Judge's decision 
that exonerates the respondent of any allegations of discrimination.
4. Rating Factors
    The permanent housing section of the application will be scored 
using the following rating factors (total of 30 points):
    a. Applicant Capacity. Up to 10 points will be awarded based on the 
project applicant's experience specifically in providing housing, 
especially for the population assisted by this NOFA. The points will 
also be based on the applicant's performance in administering housing 
activities, especially in serving the population to be assisted by this 
NOFA.
    b. Timeliness. Up to 10 points will be based on the demonstrated 
ability of the applicant and project sponsor to execute the program in 
a timely manner. This includes the applicant and project sponsor's 
ability to achieve rapid project start-up (e.g. environmental review, 
site control, permitting, minor rehabilitation, and occupancy).
    c. Project (Housing) Quality. Up to 10 points will be awarded based 
on the extent to which an applicant demonstrates how the housing is 
appropriate to the needs of the persons to be served. The application 
should demonstrate the following:
    [sbull] How the type (e.g. apartments, group home) and scale (e.g. 
number of units, number of persons per unit) of the proposed housing 
will fit the needs of the participants.
    [sbull] That the basic community amenities (e.g. medical 
facilities, grocery store, recreation facilities, schools, etc.) will 
readily be accessible to your clients.
    [sbull] That the housing will be accessible to persons with 
disabilities in accordance with applicable laws.
    [sbull] That services and treatment will be linked to permanent 
housing so that the target population will be sustained in that 
housing.
    [sbull] That any innovative aspect, if included, of a proposed 
project is fully described and evidence of the unique nature of the 
project is demonstrated.
    [sbull] The extent to which the project integrates program 
recipients into the community being served.

B. Action on Selected Applications

    Selected applicants, including those conditionally selected, will 
be notified in writing. As necessary, conditionally selected applicants 
will subsequently be requested to submit additional project 
information, which may include documentation to show the project is 
financially feasible; documentation of firm commitments for cash match; 
documentation showing site control; information necessary for the 
performance of an environmental review, where applicable; and such 
other documentation as specified in writing to the applicant, that 
confirms or clarifies information provided in the application. 
Conditionally selected applicants will be notified of the deadline for 
submission of such information. If a conditionally selected applicant 
is unable to meet any conditions for fund award within the specified 
timeframe, those funds may be withdrawn and instead used to select the 
next highest ranked application(s) from the competition for which there 
are sufficient funds available.

V. Application Submission Requirements

A. Required Materials

    The application provides the application materials, including the 
SF-424 and certifications that must be used in applying for homeless 
assistance under this notice. In addition to the required narratives, 
the items that you must submit as part of the application for funding 
are the following:

1. SF-424
2. Applicant Certification
4. Consolidated Plan Certification(s)
5. Continuum of Care Plan Certification
6. Special Projects Certifications-Discharge Policy and Mainstream 
Programs
7. Disclosure of Lobbying Activities

B. Certification Requirements

    The application also contains certifications that the applicant 
will comply with fair housing and civil rights requirements and other 
Federal requirements, and (where applicable) that the proposed 
activities are consistent with the HUD-approved Consolidated Plan of 
the applicable State or unit of general local government, including the 
Analysis of Impediments to Fair Housing Choice and the Action Plan to 
address these

[[Page 4032]]

impediments. Projects funded under this NOFA will also coordinate with 
the regional Continuum of Care process and will provide a certification 
of consistency with the applicable Continuum of Care plan, if any. 
Projects funded under this NOFA shall operate in a fashion that does 
not deprive any individual of any right protected by the Fair Housing 
Act (42 U.S.C. 3601-19), section 504 of the Rehabilitation Act of 1973 
(29 U.S.C. 794), the Americans with Disabilities Act of 1990 (42 U.S.C. 
12101 et seq.), Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
2000d), section 109 of the Housing and Community Development Act of 
1974 (42 U.S.C. 5301) or the Age Discrimination Act of 1974 (42 U.S.C. 
6101).

VI. Corrections to Deficient Applications

    After the application due date, HUD may not, consistent with its 
regulations in 24 CFR part 4, subpart B, consider any unsolicited 
information you, the applicant, may want to provide. HUD may contact 
you to clarify an item in your application or to correct technical 
deficiencies. HUD may not seek clarification of items or responses that 
improve the substantive quality of your response to any rating factors. 
In order not to unreasonably exclude applications from being rated and 
ranked, HUD may contact applicants to ensure proper completion of the 
application and will do so on a uniform basis for all applicants. 
Examples of curable (correctable) technical deficiencies include 
failure to submit the proper certifications or failure to submit an 
application that contains an original signature by an authorized 
official. In each case, HUD will notify you in writing by describing 
the clarification or technical deficiency. HUD will notify applicants 
by facsimile or by USPS, return receipt requested. Clarifications or 
corrections of technical deficiencies in accordance with the 
information provided by HUD must be submitted within 14 calendar days 
of the date of receipt of the HUD notification. (If the due date falls 
on a Saturday, Sunday, or Federal holiday, your correction must be 
received by HUD on the next day that is not a Saturday, Sunday or 
Federal holiday.) If the deficiency is not corrected within this time 
period, HUD will reject the application as incomplete, and it will not 
be considered for funding.

VII. Environmental, Local Resident Employment, and Relocation 
Requirements

A. Environmental Requirements

    All assistance is subject to the National Environmental Policy Act 
and applicable related Federal environmental authorities. Section 208 
of Pub. L. 106-377 (114 Stat. 1441, approved October 27, 2000) amended 
section 443 of the Stewart B. McKinney-Vento Homeless Assistance Act to 
provide that for purposes of environmental review, projects shall be 
treated as assistance for special projects that are subject to section 
305(c) of the Multifamily Housing Property Disposition Reform Act of 
1994, and shall be subject to HUD's regulations implementing that 
section. The effect of this provision is that environmental reviews for 
project activities are to be completed by responsible entities (States 
or units of general local government) in accordance with 24 CFR part 
58, whether or not the applicant is itself a State or a unit of general 
local government. Applicants (such as PHAs or nonprofit organizations) 
that are not States or units of general local government must request 
the unit of general local government to perform the environmental 
review. This statutory provision supersedes those portions of 24 CFR 
582.230 and 583.230 that provide for automatic HUD environmental review 
in the case of applications from such entities. With this exception, 
conditional selection of projects is subject to the environmental 
review requirements of 24 CFR 582.230 and 583.230 as applicable. 
Recipients may not commit or expend any assistance or nonfederal funds 
on project activities (other than those listed in 24 CFR 58.22(c), 
58.34 or 58.35(b)) until HUD has approved a Request for Release of 
Funds and environmental certification from the responsible entity. The 
expenditure or commitment of assistance or nonfederal funds for such 
activities prior to this HUD approval may result in the denial of 
assistance for the project under consideration.

B. Local Resident Employment

    To the extent that any housing assistance funded through this 
collaborative NOFA is used for housing rehabilitation (including 
reduction and abatement of lead-based paint hazards, but excluding 
routine maintenance, repair, and replacement), then it is subject to 
section 3 of the Housing and Urban Development Act of 1968, and the 
implementing regulations at 24 CFR part 135. Section 3, as amended, 
requires that economic opportunities generated by certain financial 
assistance for housing and community development programs shall, to the 
greatest extent feasible, be given to low- and very low-income persons, 
particularly those who are recipients of government assistance for 
housing, and to businesses that provide economic opportunities for 
these persons.

C. Relocation

    The SHP and S+C programs are subject to the requirements of the 
Uniform Relocation Assistance and Real Property Acquisition Policies 
Act of 1970, as amended (URA). These requirements are explained in HUD 
Handbook 1378, Tenant Assistance, Relocation and Real Property 
Acquisition. Any person or family that moves, even temporarily, as a 
direct result of acquisition, rehabilitation or demolition for a 
project that is assisted through one of these programs (whether or not 
HUD funded the acquisition, rehabilitation or demolition) is entitled 
to relocation assistance. Displacement that results from leasing a unit 
in a structure may also trigger relocation requirements. Relocation 
assistance can be expensive. To avoid unnecessary costs, it is 
important to provide occupants with timely information notices, 
including a general information notice to be sent at the time the 
application is submitted to HUD. HUD Handbook 1378 contains guideform 
information notices. The HUD field office can provide a copy of the 
handbook and copies of appropriate information booklets to be provided 
to occupants. Accordingly, if the site is occupied, the applicant 
should contact the HUD field office in the planning stage to obtain 
advice, including help in estimating the cost of required relocation 
assistance.

VIII. Authority

    The Supportive Housing Program is authorized by Title IV, Subtitle 
C, of the Stewart B. McKinney-Vento Homeless Assistance Act (McKinney-
Vento Act), 42 U.S.C. 11381. Funds made available under this section of 
the collaborative NOFA for the Supportive Housing Program are subject 
to the program regulations at 24 CFR part 583. The funds are also 
subject to the requirements of this NOFA.
    The Shelter Plus Care program is authorized by Title IV, Subtitle 
F, of the McKinney-Vento Act, 42 U.S.C. 11403. Funds made available 
under this section of the collaborative NOFA for the Shelter Plus Care 
program are subject to the program regulations at 24 CFR part 582. The 
funds are also subject to the requirements of this NOFA.

[[Page 4033]]

IX. Finding and Certifications

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with the 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, U.S. 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410-0500.

           Appendix I-HUD.--Eligible Applicants and Activities
------------------------------------------------------------------------
            Elements              Supportive housing   Shelter plus care
------------------------------------------------------------------------
Authorizing Legislation.........  Subtitle C of       Subtitle F of
                                   Title IV of the     Title IV of the
                                   McKinney-Vento      McKinney-Vento
                                   Homeless            Homeless
                                   Assistance Act.     Assistance Act.
Implementing Regulations........  24 CFR part 583...  24 CFR part 582.
Eligible Applicant(s)...........  [sbull] States....  [sbull] States.
                                  [sbull] Units of    [sbull] Units of
                                   general local       general local
                                   government.         government.
                                  [sbull] Special     [sbull] PHAs.
                                   purpose units of
                                   government such
                                   as Public housing
                                   agencies (PHAs).
                                  [sbull] Private
                                   nonprofit
                                   organizations.
                                  [sbull] CMHCs that
                                   are public
                                   nonprofit
                                   organizations.
Eligible Components.............  [sbull] Permanent   [sbull] Tenant-
                                   Housing for         based.
                                   Persons with       [sbull] Sponsor-
                                   Disabilities.       based.
                                  [sbull] Safe        [sbull] Project-
                                   Havens.             based.
Eligible Activities 1 2.........  [sbull]             [sbull] Rental
                                   Acquisition.        assistance.
                                  [sbull] Minor       [sbull] Costs of
                                   Rehabilitation.     administering
                                  [sbull] Leasing...   rental assistance
                                  [sbull] Operating    (limited to 8% of
                                   Costs.              the grant award).
                                  [sbull]
                                   Administrative
                                   Costs (limited to
                                   5% of the grant
                                   award).
Eligible Populations \2\........  [sbull]             [sbull]
                                   Chronidcally        Chronically
                                   Homeless Persons.   Homeless Persons.
                                  [sbull] Disabled    [sbull] Disabled
                                   Homeless Families.  Homeless
                                                       Families.
Term of Assistance..............  3 years...........  5 years.
------------------------------------------------------------------------
\1\ Homeless prevention activities are statutorily ineligible under
  these programs.
\2\ Persons at risk of homelessness are statutorily ineligible for
  assistance under these programs.


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Section 3: HHS/SAMHSA Section--Substance Abuse Treatment, Mental Health 
Services and Supportive Services--25 points

I. Overview

A. Purpose
    The purpose of the substance abuse and mental health services 
component of this collaborative NOFA is to ensure that the target 
population receives, as part of a comprehensive system of services, the 
mental health and substance abuse treatment they need to achieve the 
highest level of recovery possible. Specific objectives are to reduce 
or eliminate symptoms, increase independence and community functioning, 
and avoid relapse. Recognizing the high prevalence of co-occurring 
mental health and substance abuse disorders, another objective is to 
improve the effectiveness of mental illness and substance abuse 
treatment by ensuring that the appropriate level of service integration 
is achieved. To achieve these objectives, an overall goal is to 
increase the reliance on mainstream programs for funding behavioral 
health services to the maximum extent possible.
    Background: People who experience chronic homelessness tend to have 
disabling mental health and substance abuse problems. Recent estimates 
suggest that at least 40 percent have substance use disorders and 20 
percent have serious mental illnesses. Often individuals have more than 
one of these conditions. An estimated 50 percent of adults with serious 
mental illnesses who are homeless also have a co-occurring substance 
use disorder. Among veterans who are homeless, one-third to nearly one-
half have co-occurring mental and addictive disorders. These problems 
not only contribute to persons' risk for becoming homeless, but also to 
the difficulty they experience in overcoming it.
    People who are chronically homeless require a broad range of 
services and supports that are coordinated with each other and linked 
to permanent housing. SAMHSA has identified evidence-based and 
promising practices that are effective in preventing and ending 
homelessness among people with serious mental illnesses and substance 
use disorders. These include: outreach and engagement, housing with 
appropriate supports, multidisciplinary treatment teams/intensive case 
management, integrated treatment for co-occurring disorders, 
motivational interventions, modified therapeutic communities, and self-
help programs.
B. Eligibility
    Eligible entities are States, political subdivisions of States, 
Indian tribes and tribal organizations, and public or private non-
profit entities, including community-based and faith-based providers of 
homeless services, health care, housing and other closely linked 
services for persons experiencing chronic homelessness. The lead 
applicant need not be a direct provider of substance abuse treatment or 
mental health services.
    In addition to meeting these criteria, SAMHSA requires that any 
agency that will be using SAMHSA funds to provide substance abuse or 
mental health services must be licensed and have been providing 
services for a minimum of two years prior to the date of the 
application. The reason for this is to ensure that there is minimal 
start-up time required in providing services to the target population 
by experienced providers.
    For proof of two years experience and licensing, you must include 
copies of licenses for this period or a copy of your Articles of 
Incorporation as an appendix in your application. Examples are copies 
of an organization's prior and current year operator's licenses, i.e., 
(1) Issue Date: 5/1/2001, Expiration Date: 4/30/2002, (2) Issue Date: 
5/1/2002, Expiration Date: 4/30/2003.

II. Amount Allocated

    Approximately $7 million is available in FY2003 for this component 
and approximately 10 awards will be made. Subject to the availability 
of future funds, grantees will receive additional funds in grant years 
2 and 3 for substance abuse and mental health services on a declining 
basis: 100 percent for Grant Year 1; 70 percent for Grant Year 2; and 
40 percent for Grant Year 3. To qualify for continuation funds, 
grantees are required to demonstrate that the difference in grant 
amounts in Grant Years 2 and 3 is being offset by increasing revenue 
from mainstream financing resources such as Medicaid, Block Grants, 
State general funds, local sources, etc. The purpose of this provision 
is to increase long-term reliance on mainstream programs and to improve 
program sustainability after termination of discretionary grant funds.
    In order to promote successful continuation by attending to 
mainstream financing opportunities early, applicants must address the 
types of mainstream funding that will be sought, an assessment of the 
extent of eligibility among the target population, projections of 
potential revenues and discussion of the administrative actions that 
will be taken to capture the target revenue. Special attention should 
be paid to needed billing and collection mechanisms.

III. Program Description

A. Allowable Activities
    Funds must be used to provide substance abuse treatment, mental 
health services, and supportive services that promote entry to and 
maintenance in permanent housing. Examples of allowable activities in 
each of these areas are the following:

[sbull] Street outreach and engagement
[sbull] Assertive community treatment/intensive case management
[sbull] Supportive housing
[sbull] Substance abuse treatment including detox, residential 
treatment, intensive outpatient, and outpatient treatment
[sbull] Mental health services including treatment for trauma and post 
traumatic stress disorder
[sbull] Integrated/coordinated treatment for co-occurring disorders
[sbull] Motivational interventions
[sbull] Modified therapeutic communities
[sbull] Medications management
[sbull] Self-help programs
[sbull] Psychosocial rehabilitation
[sbull] Assistance in accessing income support and entitlement
[sbull] Supportive employment
[sbull] Discharge planning
[sbull] Parental skills training
[sbull] Child care and family support
[sbull] Transportation

    Examples of how these services can be provided include the 
following:
    [sbull] Strengthen or expand an existing program to include persons 
who are chronically homeless by providing street outreach and 
engagement.
    [sbull] Provide treatment and services to persons participating in 
homeless programs.
    [sbull] Provide treatment and supportive services to maintain 
persons in stable housing.
    [sbull] Develop referral linkages with community service providers 
to create a ``no wrong door'' approach for accessing treatment and 
services.
    [sbull] Enable participation in treatment and/or services by 
providing transportation or child care.
    [sbull] Providing for the coordination efforts of partnering 
entities.
    [sbull] Managing the implementation of the comprehensive approach.
    [sbull] Developing a strategic plan for accessing mainstream 
programs and sustaining the initiative.
    [sbull] Monitoring the evaluation of the comprehensive approach.
    [sbull] Build linkages among substance abuse treatment providers 
and/or

[[Page 4038]]

mental health service providers, housing providers, and homeless 
service providers.
    [sbull] Provide emergency funds to enable persons to remain housed, 
including purchase groceries or household supplies, pay utility bills, 
etc.
    [sbull] Create sustainability of services by getting clients on 
Medicaid, Medicare, Supplemental Security Insurance (SSI) and Social 
Security Disability Insurance (SSDI). Using mainstream Federal, state 
and local resources (such as Mental Health Block Grant (MHBG), 
Substance Abuse Prevention and Treatment Block Grant (SAPTBG), Social 
Services Block Grant, Temporary Assistance for Needy Families (TANF) 
etc.) to fund services beyond this initiative.
    [sbull] Train direct care providers and others in the system 
serving the target population about provision of substance abuse 
treatment and/or mental health services to persons who are homeless.
B. Funding Restrictions
    SAMHSA funds may NOT be used to:
    [sbull] Pay for housing (other than residential substance abuse 
treatment).
    [sbull] Provide services to incarcerated populations (defined as 
those persons in jail, prison, detention facilities, or in custody 
where they are not free to move about in the community).
    [sbull] Carry out syringe exchange programs, such as the purchase 
and distribution of syringes and/or needles.
    [sbull] Pay for treatment of diseases other than substance abuse 
and mental health disorders; e.g., SAMHSA funds may not be used to pay 
for pharmacologies for HIV antiretroviral therapy, STDs, TB and 
hepatitis B and C.

IV. Application Selection Process

A. Funding Criteria
    Decisions to fund a SAMHSA grant are based on:
    1. Threshold requirements.
    2. Technical Merit.
    3. Availability of funds.
    4. Evidence of non-supplantation of funds.
    5. Continued funding contingent on ability to fund services in the 
second and third years of this initiative through other resources such 
as Medicaid, Mental Health Block Grant (MHBG), Substance Abuse 
Prevention and Treatment Block Grant (SAPTBG).
B. Threshold Requirements
    Applications will not be accepted for review by SAMHSA and will be 
returned for the following reasons:
    1. The applicant organization is ineligible.
    2. Proof of at least two years of service provision and licensure 
by the lead applicant is not attached.
C. Agency-Specific Review Criteria for Technical Merit
    The determination of the technical merit of the substance abuse and 
mental health section of the application will be based on the quality, 
feasibility and comprehensiveness of the project narrative, described 
in the SAMHSA Section of the Application Kit. A maximum of 25 points 
can be earned for specific behavioral health criteria. For example, a 
perfect score for Section A will result in a rating of 10 points.
D. SAMHSA Review Criteria:
1. Substance Abuse Treatment and Mental Health Services (10 Points)
    Points will be awarded based on the extent to which the substance 
abuse and mental health services array proposed for clients of the 
grant conforms to identified needs, is accessible, appropriately 
coordinated or integrated, and is evidence-based.
2. Sustainability (7 Points)
    Points will be awarded based on the thoroughness and feasibility of 
the applicant's plan to obtain mainstream funding for the substance 
abuse and mental health services offered to clients in years 2 and 3 of 
the grant program. The assessment of readiness to identify appropriate 
mainstream sources and to pursue billing and collection activity will 
form an important predictor of the applicant's ability to obtain 
continuation grant funding by meeting mainstream financing goals 
described above.
3. Evaluation/Methodology (3 Points)
    Points will be awarded based on the extent to which the proposed 
local evaluation will ensure objective measurement of progress toward 
achieving the goals and objectives of the grant. The criteria will also 
address the extent to which the proposed output and outcome data 
collection will accommodate CMHS and CSAT GPRA data reporting 
requirements. Special emphasis will be placed on the applicant's 
ability to identify and enroll clients in mainstream entitlement 
programs and collect mainstream reimbursements for substance abuse and 
mental health treatment services.
4. Project Management: Implementation Plan, Organization, Staff, 
Equipment/Facilities, and Other Support (5 Points)
    Points will be awarded based on the adequacy of resources dedicated 
to accomplishing the substance abuse and mental health objectives of 
the grant program. Resources include quantity and quality of proposed 
staffing, strength of implementation planning, and ability to leverage 
other behavioral health resources.
E. Evaluation Requirements
    Applicants may allocate no more than 15 percent of grant funds to 
their local evaluation activities including collection of GPRA 
measures.
    1. Government Performance and Results Act. The Government 
Performance and Results Act (GPRA) mandates accountability and 
performance-based management by Federal agencies, focusing on results 
or outcomes in evaluating effectiveness of Federal activities and on 
measuring progress toward achieving national goals and objectives. 
Grantees must comply with GPRA data collection and reporting 
requirements, including the collection of CSAT and CMHS Core Client 
Outcomes.
    2. Local Evaluation. Grantees will be expected to develop a plan 
for evaluating their programs. At minimum, the local evaluations should 
include both process and outcome evaluations using GPRA client outcome 
measures and other measures as appropriate. Grantees should describe 
linkages to GPRA measures.
F. Post-Award Requirements
    SAMHSA will provide post award support to grantees through 
technical assistance on mental health and substance abuse services. 
Grantees will be required to attend (and, thus must budget for) one 
jointly sponsored SAMHSA/HRSA technical assistance meeting in the first 
year of the grant, and one meeting in each of the remaining years. Each 
meeting will be two days. A minimum of three persons must attend, which 
can include housing, mental health, and substance abuse 
representatives. Consumers are encouraged to attend. These meetings 
will be held in the Baltimore/Washington, DC area.
    The applicant must notify the Single State Agency (SSA) within 30 
days of receipt of an award. Notify the SSA for mental health for 
projects providing mental health services; the SSA for substance abuse 
for projects providing substance abuse treatment services; and the SSA 
for mental health and substance abuse if serving populations with co-
occurring disorders.

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Section 4: HHS/HRSA Section--Health Resources and Services 
Administration With a Focus on Primary Health--25 Points

I. Overview

A. Purpose
    To increase the access of chronically homeless persons and homeless 
families with a disabled adult member to cost-effective and integrated 
primary health care services provided by existing programs and 
providers, as part of an effort to eradicate chronic homelessness and 
eliminate health disparities for chronically homeless people.
    It is the intent of HRSA to continue to support health services to 
chronically homeless people and disabled homeless families in these 
areas/locations given the continued need for cost-effective, community-
based primary care services. Therefore, the proposed projects must 
exclusively serve chronically homeless individuals and/or disabled 
homeless families as defined in this notice.
    Funding will be awarded pursuant to section 330 of the Public 
Health Service Act.
B. Eligible Applicants
    Primary Health Care Services: Applicants are limited to existing 
Health Center Grantees (including Health Care for the Homeless 
grantees) currently funded under section 330 of the Public Health 
Service Act. Applications should be submitted as a proposed 
supplemental grant and will be funded as such.
    Applicants are limited to existing Health Centers, since funding 
for this initiative is coming from the Health Center funding line and 
consequently the requirements of section 330 of the PHS Act apply to 
the recipients of those funds. In addition, existing Health Center 
grantees receive certain privileges, including coverage under the 
Federal Tort Claims Act, ability to receive higher Medicare and 
Medicaid reimbursement rates, and reduced price pharmaceuticals. It 
would be inappropriate to provide these privileges to a new group of 
grantees who had not been approved through the extensive, comprehensive 
application process to achieve section 330 Health Center status.

II. Amount Allocated

    Approximately $3 million will be available from HHS/HRSA as 
supplemental awards to existing section 330 health centers in FY 2003 
to fund primary health care services. HHS/HRSA will not award more than 
$300,000 per project per year.
    The awarding of FY 2003 HHS funds is contingent on passage of a 
permanent HHS appropriation for FY 2003. Subject to availability of 
appropriations, funds may be available for FY 2004 and FY 2005.

III. Program Description

    Health Centers (HCs) are designed to provide accessible, affordable 
personal health care services to low-income individuals and families. 
HCs provide family-oriented primary and preventive health care services 
for people living in rural and urban medically underserved communities 
and for medically underserved populations. Specifically, HCs provide 
services that include: primary and preventive health care; outreach; 
dental care; essential ancillary services; mental health and substance 
abuse services; case management services; and enabling services such as 
transportation.
    HCs exist in areas where economic, geographic, or cultural barriers 
limit access to primary health care for a substantial portion of the 
population, and they tailor services to the needs of the community. HCs 
demonstrate cost effective responsiveness, empower underserved 
communities and populations, reduce infant mortality rates, lower 
hospital admission rates and length of hospital stays for patients, 
lower patients' health costs, and provide care for specific conditions 
that meets or exceeds protocols for the general population.

IV. Funding Criteria

    A. The applicant thoroughly describes the proposed program for the 
delivery of primary health care and related services to be provided to 
the target population.
    B. The health care program is designed in a manner that is 
appropriate to meet the unique needs of homeless people in the proposed 
service area.
    C. The applicant presents evidence of arrangements in place for the 
delivery of each of the required services. Required services include:

--Primary health care;
--Provision of or arrangements for emergency health services;
--Referral for inpatient hospitalization;
--Case management services;
--Outreach services;
--Entitlement eligibility assistance;
--Supplemental/additional services, including oral health services; 
and,
--Provision of or arrangements for accessing mental health and 
substance abuse services.

    D. The applicant provides, for each service offered, information 
on:

--The location of services;
--The service setting (e.g., clinic, van, shelter site);
--The arrangements in place to ensure the availability of services 
(i.e., whether through direct provision by the applicant or provision 
through subcontract or referral agreement);
--Arrangements to guarantee access to the services; and,
--Continuity of care.

    E. Signed letters of commitment or memoranda of understanding are 
included for all subcontractor and referral arrangements.

V. Application Selection Process

    Only those applications that satisfy the threshold criteria will be 
rated. The threshold criteria are:
    A. Applicants for HRSA funds must be a section 330 Health Center 
program. A copy of the FY 2002 Notice of Grant Award must accompany the 
request for HRSA funds.
    B. Health centers applying for HRSA funds must not be designated as 
an exceptional/high risk grantee at the time of application. Note that 
HRSA may exclude from funding any Health Center which is significantly 
out of compliance with section 330 program expectations.
    An application must be given a satisfactory rating in order to 
receive further consideration. Those applications that are determined 
to be acceptable will be then reviewed for the comprehensive approach.
    If an application does not meet the aforementioned threshold 
criteria, the entire application will be rejected.

VI. Application Submission

    Applicants should submit: (1) A copy of the most recent Notice of 
Grant Award document from the Health Center program; (2) a completed 
Public Health Service Application Form 5161-1, including budget pages 
and a Project Narrative as described below.
A. Project Narrative
    The Project Narrative describes your project and your project's 
relationship to the primary applicant or other providers in this 
collaboration. It is made up of the following sections:

1. Project Summary (Points: 8)

    The project summary is intended to be a brief synopsis of the 
proposed design of the primary care component of the collaborative 
initiative.
    The applicant should summarize the need for health services in the 
target population and the organization's proposed response to that 
need. The following issues should be addressed.
    a. Overview of the Population. (1) Provide a brief description of 
the target

[[Page 4042]]

population for this project and the nature of their health care needs.
    (2) Describe any major issues or barriers to care faced by the 
target population.
    b. Overview of the Organization. (1) Provide a brief history of the 
organization proposing to provide primary care and related services, 
including a discussion of the size and nature of the client population 
currently being served.
    (2) Describe the experience of the organization in meeting the 
needs of chronically homeless persons.
    c. Identify unique characteristics and significant accomplishments 
of the organization.

2. Project Plan (Points: 15)

    a. Relationship of HC to other providers in this collaboration.
    b. Identify how many people will be served and the number of 
projected encounters at full operational capacity at the proposed new 
collaborative program.
    c. Describe any unique characteristics regarding the health care 
needs of persons to be served under this initiative.
    d. Describe the proposed service delivery model and the services to 
be provided.
    e. Describe the proposed staffing for the new collaborative 
program.
    f. Provide evidence of arrangements in place for the delivery of 
each of the required services. Required services include:

--Primary health care;
--Provision of or arrangements for emergency health services;
--Referral for inpatient hospitalization;
--Case management services;
--Outreach services;
--Entitlement eligibility assistance;
--Supplemental/additional services, including oral health services; 
and,
--Coordination with other providers of services, including providers of 
mental health and substance abuse services.

    g. For each service offered, provide information on:

--The location of services;
--The service setting (e.g., clinic, van, shelter site, patient's 
residence);
--The arrangements in place to ensure the availability of services (i.e 
whether through direct provision by the applicant or provision through 
subcontract or referral agreement);
--Arrangements to guarantee access to the services;
--Continuity of care; and,
--Coordination of care with other providers involved in the 
collaboration.

3. Readiness (Points: 2)

    a. Where appropriate, include agreement from site sponsor to allow 
applicant organization to provide services at specified location(s).
    b. Services must be available within 90 days of the award of 
program funds.
B. Budget Narrative
    1. Describe the annual budget for years 1, 2, and 3 in terms of:
    1. The total resources required to achieve the goals and objectives 
of the new collaborative program;
    2. The expectations regarding Federal grant support and 
maximization of non-grant revenue relative to the proposed plan. The 
applicant must demonstrate that the Federal funds will not supplant 
other funds, and must make maximum use of third party revenues, 
including Medicaid;
    3. The total cost per client;
    4. The total grant dollars per client,
    5. One-time minor capital needs; and
    6. Applicant should itemize the estimated value of in-kind 
resources, including equipment, rent, personnel, renovations and 
alterations, pharmaceuticals, etc.

VII. Post-Award Requirements

    HRSA will provide post-award support to grantees through technical 
assistance on primary health care services. Grantees will be required 
to attend (and, thus must budget for) one jointly sponsored SAMHSA/HRSA 
technical assistance meeting in the first year of the grant, and one 
meeting in each of the remaining years. Each meeting will be two days. 
A minimum of two persons must attend. These meetings will be held in 
the Baltimore/Washington, DC area.

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Section 5: VA Section--20 Points

I. Overview

    Although funding will not be awarded directly to the recipient of 
the grant, funding is available for the VA facility that partners with 
the applicant. VA facilities can include medical centers or programs 
under the direction of medical centers including VA outpatient clinics. 
The applicant will be required to submit a plan that describes in 
detail how a collaborative relationship with VA will be created and 
sustained in an effort to provide services to chronically homeless 
veterans. The chronically homeless veterans to be served will be those 
veterans housed in or being provided services through the program 
developed by the collaborative initiative grant recipient and who meet 
the definition for homeless as put forth in this NOFA.
    If it is anticipated that the project will not be serving veterans, 
the applicant will be asked to demonstrate why veterans will not be 
participating in the project. If it is anticipated that veterans will 
be served but it is unlikely a VA facility will be available to engage 
in partnering, the applicant will be asked to demonstrate other sources 
of providing substance abuse, mental health and primary care services 
for those chronically homeless veterans.

II. Amount Allocated

    Up to $5.0 million will be made available for up to three years. 
Funds available for each project will be in an approximate amount 
equivalent to the proportionate yearly salary of full-time employees 
(FTE) to provide professional care or care-coordination/case management 
for chronically homeless veterans participating in the program and for 
FTE to assist in data collection and evaluation. Funding will be made 
available to the VA facility that enters into a collaborative 
relationship with the recipient of this grant.

III. Program Description

    It is expected that these FTEs will provide necessary and 
appropriate care for chronically homeless veterans which can include 
but is not limited to: case management; direct medical care, mental 
health or substance abuse treatment; assistance with veterans benefits; 
vocational development; and housing referrals. The goal is to provide 
comprehensive, project- and community-linked substance abuse, mental 
health and primary care services for chronically homeless veterans. FTE 
assigned data evaluation duties will be responsible for data collection 
through participant interviews, tracking program participants and 
record keeping for the purposes of the program study.

IV. Application Selection Process

A. Review and Rating
    The factors described in the General Section of this NOFA together 
with all agency-specific factors will be used to assign points.
    To be eligible for the VA section of this NOFA, the application 
will undergo a VA threshold review prior to rating to ensure:
    1. Forms, time and adequacy: application must be filed in the form 
prescribed by VA in the application process and within the time 
established in the NOFA;
    2. Application eligibility: the applicant must be a non-profit or 
public entity, as described in the General Section of the NOFA;
    3. Eligible population to be served: the population proposed to be 
served must be chronically homeless veterans. Homeless is defined in 
this NOFA. A veteran is a person who served in the active military, 
naval, or air service, and who was discharged or released under 
conditions other than dishonorable. Such veterans must also be enrolled 
in VA's health care system.
B. Rating Criteria
    The applicant who intends to apply under this VA section of the 
Joint NOFA must submit a signed Memorandum of Agreement (one original 
and four copies) between the applicant and its partnering VA facility, 
and a Program Plan (one original and four copies). Much of the 
information that will be used to determine the ranking of application 
and ultimately the likelihood of funding will be from the Comprehensive 
Section of the application.
    Applications will be rated and ranked on the criteria listed below.
    1. Need: Up to 5 points will be awarded based on the applicant's 
demonstrated understanding of the needs of the chronically homeless 
veteran population proposed to be served in the specified area or 
community. Ratings will be made based on the extent to which applicants 
demonstrate:
    a. Identified gaps in services for chronically homeless veterans 
and how the program will address, and if appropriate, fill those gaps; 
and
    b. An understanding of the homeless population to be served and its 
unmet housing, substance abuse, mental health, and primary care needs.
    2. Plan: Up to 10 points will be awarded based on the extent to 
which the application presents a clear, well-conceived, and thorough 
plan for assisting chronically homeless veterans. The plan should 
include, at a minimum:
    a. A detailed discussion of the nature of the collaboration between 
VA and the other partners;
    b. How the collaboration will be sustained for the benefit of 
chronically homeless veterans; and
    c. How the collaboration will be linked on a short-term as well as 
long-term, strategic level with the total project conceptualization and 
design.
    3. Ability: Up to 5 points will be awarded based on the extent to 
which those who will be involved in carrying out the project have 
experience in activities similar to those proposed in the application. 
This includes activities involving housing, the planning and delivery 
of substance abuse and mental health treatment and primary care as well 
as activities regarding the accessing and/or delivery of VA benefits, 
medical and mental health care, and other VA related services.
    Any applicant scoring a zero in the Need, Plan, or Ability criteria 
of the VA section, or any applicant scoring less than 8 points (40%) 
for a total score on all VA criteria will be eliminated from the 
competition and will not be eligible for any part of this grant 
funding.
    Projects that will not be serving veterans will not be required to 
complete these sections of the application. However, the applicant will 
be asked to demonstrate how it was determined that services for 
chronically homeless veterans are not needed for the project.

V. Application Submission

A. Required Materials
    The application provides the application materials. In addition to 
the narratives, the applicant will be required to submit a Memorandum 
of Agreement with its partnering VA facility.
B. Memorandum of Agreement (MOA)
    To be eligible for the VA section of this NOFA, the applicant must 
submit a Memorandum of Agreement in addition to the application 
materials. The collaborative relationship must be documented in a 
jointly signed Memorandum of Agreement between a local VA facility and 
the applicant of this grant specifically stating the terms of the 
agreement. At a minimum, the terms of the agreement should include:
    1. Number of chronically homeless veterans expected to be served by 
the grant recipient and the extent and level of services that will be 
provided by the VA facility;

[[Page 4046]]

    2. Process and outcome measures clearly delineated and linked to 
service delivery and responsibilities for collection, compilation, and 
reporting of these measures; and
    3. How services provided by the FTE funded under this section will 
be integrally linked in a comprehensive fashion with the intent of the 
collaborative initiative grant recipient's project and the strategic 
plans of the project in an effort to break the cycle of homelessness.

[FR Doc. 03-1801 Filed 1-24-03; 8:45 am]
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