[Federal Register Volume 68, Number 80 (Friday, April 25, 2003)]
[Notices]
[Pages 21506-22062]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-9591]



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Book 2 of 4 Books

Pages 21001-21504

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Part II





Department of Housing and Urban Development





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Super Notice of Funding Availability (SuperNOFA) for HUD's 
Discretionary Programs for Fiscal Year 2003; Notice

  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21002]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4800-N-01]


Super Notice of Funding Availability (SuperNOFA) for HUD's 
Discretionary Programs for Fiscal Year 2003

AGENCY: Office of the Secretary, HUD.

ACTION: Super Notice of Funding Availability (SuperNOFA) for HUD 
Discretionary Programs.

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SUMMARY: This Fiscal Year (FY) 2003 SuperNOFA announces the 
availability of approximately $2.3 billion in HUD program funds 
covering 43 funding opportunities within programs operated and 
administered by HUD offices. This General Section of the SuperNOFA 
provides the application procedures and requirements that are 
applicable to all the programs in this SuperNOFA unless otherwise 
stated in the Program NOFA. The Program Section of this SuperNOFA 
provides a description of the specific programs for which funding is 
made available and describes any additional procedures and requirements 
that are applicable to a specific program. Please be sure you read both 
the General Section and the Program Section(s) of this SuperNOFA to 
ensure you respond to all the requirements for all programs you will be 
seeking funding.

APPLICATION DUE DATES: The information in this APPLICATION DUE DATES 
section applies to all programs that are part of this SuperNOFA. You, 
the applicant, must submit a completed application to HUD on or before 
the respective program's application due date. Application due dates 
can be found in the HUD FY 2003 SuperNOFA Funding Chart located in this 
General Section. Information for each program is reiterated in the 
appropriate Program Section of this SuperNOFA.

ADDRESSES AND APPLICATION SUBMISSION PROCEDURES:
    Mailing and Receipt Procedures. The following procedures apply to 
the delivery and receipt of applications in HUD Headquarters, the 
Grants Management Center (GMC), and field offices. Please read the 
following instructions carefully and completely as failure to comply 
with these procedures may disqualify your application. HUD's delivery 
and receipt policies are:
    [sbull] No hand deliveries will be accepted;
    [sbull] HUD will not accept any applications sent by facsimile;
    [sbull] Applications sent to the Robert C. Weaver HUD Headquarters 
Building or the Public and Indian Housing Grants Management Center 
(GMC) may be shipped using DHL, Falcon Carrier, Federal Express 
(FedEx), United Parcel Service (UPS), or the United States Postal 
Service (USPS), as access by other delivery services is not guaranteed. 
HUD strongly suggests applicants use the delivery options listed above 
because no other delivery services are allowed unescorted entry to the 
HUD Headquarters Building and therefore deliveries by other services 
are often turned away;
    [sbull] HUD strongly suggests applications submitted to HUD field 
offices be sent via USPS, as access by other delivery services is not 
guaranteed;
    [sbull] With the exception of the Rural Housing and Economic 
Development NOFA, all mailed applications must be postmarked on or 
before midnight of their due date and received within fifteen (15) days 
of the due date.
    [sbull] Applications for the Rural Housing and Economic Development 
NOFA must be received by the deadline date. Application received after 
the deadline date will not be considered.
    Proof of Timely submission. Except for the Rural Housing and 
Economic Development NOFA, proof of timely submission of an application 
in accordance with these requirements consists of the Certificate of 
Mailing (USPS Form 3817) provided by the United States Post Office 
showing timely mailing of the application on or before the application 
due date. In the case of packages submitted to HUD via DHL, Falcon 
Carrier, FedEX, or UPS, documentary proof of timely submission will be 
the delivery service receipt indicating the application was submitted 
to the delivery service on or before the application due date and, 
through no fault of the applicant, delivery was not in time to meet the 
filing deadline. Receipts from other than DHL, Falcon Carrier, FedEX, 
or UPS, delivery services will not be accepted, as HUD cannot guarantee 
delivery due to its Security procedures. Proof of timely submission to 
HUD field offices will be the Certificate of Mailing (USPS Form 3817).
    Proof of receipt for the Rural and Economic Development NOFA is the 
date HUD receives the application.
    Please remember that mail to federal facilities is screened prior 
to delivery, so please allow time for your package to be delivered. If 
an application does not meet the filing requirements it will not 
receive funding consideration. If you mail your application to the 
wrong location and the office designated for receipt in accordance with 
these submission requirements does not receive it, your application 
will be considered late and not be considered for funding. HUD will not 
be responsible for directing it to the appropriate office.
    Addresses. You, the applicant, must submit a complete application 
and the required number of copies to the locations identified in the 
Program Section of this SuperNOFA. When submitting your application, 
you must refer to the name of the program for which you are seeking 
funding and include the correct room number to ensure that your 
application is properly directed. Addresses for HUD Headquarters and 
the Public and Indian Housing Grants Management Center (GMC) are in the 
HUD 2003 SuperNOFA Funding Chart. Addresses for field offices are 
listed in Appendix A-3 of the General Section of this SuperNOFA. For 
applications directed to the Office of Native American Programs Field 
Offices, please be sure to use the addresses provided in Appendix A-2, 
Office of Native American Programs Address Listing. Please refer to the 
Funding Chart or pertinent Program Section of the SuperNOFA for room 
location or other additional information regarding address requirements 
for your application submission. Please make sure that you note the 
correct room number to ensure your application is not misdirected.
    Copies of Applications. The Program Section of this SuperNOFA may 
specify that to facilitate the processing and review of your 
application, one or more copies of the application also must be sent to 
an additional HUD location (for example, a copy to the HUD field office 
and the original application to HUD Headquarters). If you are required 
to submit applications to HUD Headquarters (or the GMC) and field 
offices, the determination that your application was received on time 
will be made solely on receipt of the application at HUD Headquarters 
or the GMC, as applicable. If an application received on time at HUD 
Headquarters or GMC is not complete, but a complete copy was submitted 
and received on time at a HUD field office, HUD may conduct its review 
using the field office copy. See the information in Mailing and Receipt 
Procedures and Proof of Timely Submission above for additional 
information. If you do not submit the required number of copies HUD may 
request that you provide the additional copies to the appropriate HUD 
office(s) in accordance with the procedures described in Section VIII, 
Corrections to Deficient Applications.
    Consolidated Application Submissions. If you, the applicant, are 
applying for funding under more than one program in this SuperNOFA, you

[[Page 21003]]

need to submit only one original HUD-424, ``Application for Federal 
Assistance,'' which includes the HUD-424B, ``Applicant Assurances and 
Certifications.'' Page 2 of the HUD-424 allows you to list all the 
programs for which you are seeking funding. Once you have submitted one 
original set of forms, certifications, and assurances, you may send 
copies of these standard items with any additional application you 
submit. Make sure to specify the correct program on each copy of the 
HUD-424 application form and indicate the program to which you have 
submitted the original signature forms for the standard assurances and 
certifications. Additionally, the Program Section may specify 
additional forms, certifications, assurances, or other information that 
may be required for a particular program in this SuperNOFA.

FOR APPLICATION FORMS, FURTHER INFORMATION, AND TECHNICAL ASSISTANCE: 
The information in this section is applicable to all programs that are 
part of this SuperNOFA. This section describes how you may obtain 
application forms, additional information about the SuperNOFA, and 
technical assistance. Copies of all documents related to the SuperNOFA 
may be downloaded from HUD's Web site, www.hud.gov or you may call 
HUD's SuperNOFA Information Center at 1-800-HUD-8929 or for the 
hearing-impaired, 1-800-HUD-2209. Copies of all materials may also be 
ordered online from HUD's Web site.
    Application Kits. In response to concerns about the length of time 
it takes for the publication and dissemination of application kits, HUD 
has made an effort to improve the readability of our NOFAs and publish 
all required forms and formats for application submission in the 
Federal Register. As a result of this effort, you will not have to wait 
for an application kit to begin to prepare your application for 
funding. Our goal is to have all required forms and information needed 
to apply for funding available to the public within the NOFA document 
itself and available immediately upon publication of the NOFA and 
downloadable from HUD's Web site at http://www.hud.gov. HUD is 
continuing to streamline our programs and application submission 
requirements and encourages the applicant community to offer additional 
suggestions. Please pay attention to the submission requirements and 
format for submission specified in the Program Section of the SuperNOFA 
to ensure that you have submitted all required elements of your 
application.
    The published Federal Register document is the official document 
that HUD uses to evaluate applications. Therefore, if there is a 
discrepancy between any materials published by HUD in its Federal 
Register publication and other information provided in hard copy or on 
HUD's Web site, the Federal Register publication of the SuperNOFA 
prevails. Therefore, please be sure to review your application 
submission against the requirements in the Federal Register file of the 
SuperNOFA. A PDF copy of the General Section and Program Section for 
each program in the SuperNOFA is available on HUD's Web site at http://www.hud.gov and hard copies of these documents can be obtained from the 
SuperNOFA Information Center by calling 1-800 HUD-8929 or for the 
hearing-impaired, 1-800-HUD-2209.
    Guidebook and Further Information. A guidebook to HUD programs 
titled ``Connecting with Communities: A User's Guide to HUD Programs 
and the 2003 SuperNOFA Process'' is available from the SuperNOFA 
Information Center and the HUD Web site at http://www.hud.gov. The 
guidebook provides a brief description of all HUD programs, a 
description of the SuperNOFA programs, eligible applicants for these 
programs, and examples of how programs can work in combination to serve 
local community needs. To obtain a guidebook, application kit, or print 
copy of the General Section or program NOFA, call the SuperNOFA 
Information Center at 1-800-HUD-8929 or 1-800-HUD-2209 (TTY).
    You may request general information, copies of the General Section 
and Program Section of the SuperNOFA, and applications from the 
SuperNOFA Information Center (1-800-HUD-8929 or 1-800-HUD-2209 (TTY)) 
between the hours of 9:00 AM and 8:00 PM (Eastern Time) Monday through 
Friday, except on federal Holidays. When requesting information, please 
refer to the name of the program you are interested in. Be sure to 
provide your name, address (including zip code), and telephone number 
(including area code). To ensure sufficient time to prepare your 
application, requests for copies of this SuperNOFA can be made 
immediately following publication of the SuperNOFA. The SuperNOFA 
Information Center opens for business simultaneously with the 
publication of the SuperNOFA. You can also obtain information on this 
SuperNOFA and download application information for this SuperNOFA 
through the HUD Web site, http://www.hud.gov.
    For Technical Assistance. Before the application due date, HUD 
staff will be available to provide you with general guidance and 
technical assistance about this SuperNOFA. However, HUD staff is not 
permitted to assist in preparing your application. Following selection 
of applicants, but before awards are made, HUD staff are available to 
assist in clarifying or confirming information that is a prerequisite 
to the offer of an award or Annual Contributions Contract (ACC) by HUD.

FEDERAL E-GRANTS INFORMATION

    Streamlining Federal Financial Assistance. The Federal Financial 
Assistance Management Improvement Act of 1999 (Pub. L. 106-107) directs 
each federal agency to develop and implement a plan that, among other 
things, streamlines and simplifies the application, administrative, and 
reporting procedures for federal financial assistance programs 
administered by the agency. This law also requires the Director of the 
Office of Management and Budget (OMB) to direct, coordinate, and assist 
federal agencies in establishing (1) a common application and reporting 
system and, (2) an interagency process for addressing ways to 
streamline and simplify federal financial assistance application and 
administrative procedures and reporting requirements for program 
applicants.
    This law also requires OMB to consult with the grantee community as 
it works with the federal agencies to develop and implement the course 
of action that would be undertaken by the federal agencies to establish 
an electronic site for accessing funding information and applications. 
Over the last two years, HUD has used its website to provide 
information to the public about HUD's participation in Interagency 
efforts to streamline grant and other financial assistance requirements 
and to seek your input as the federal agencies work together to achieve 
implementation. To find out about the work being done by the federal 
agencies to streamline and consolidate the application and reporting 
requirements, please go to http://www.hud.gov/offices/adm/grants/pl-
106107/pl106-107.cfm
    eGrants Initiative. HUD is working with the 26 federal grant-making 
agencies on President George W. Bush's eGrants Initiative. This 
Initiative is an effort by federal agencies to develop a common 
electronic application and reporting system for federal financial 
assistance. This system will provide ``one-stop shopping'' for funding 
opportunities for all federal programs. This system is being developed 
in response to concerns that it is difficult for organizations to know 
all the

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funding available from the federal government and how to apply for 
funding. It also is an effort by the federal government to develop 
common application requirements, further streamlining the application 
process, making it easier for you, our customers, to apply for funding. 
The first segment of the eGrants Initiative focuses on allowing the 
public to easily find funding opportunities and then apply via eGrants. 
Funding decisions would still be under the control of the federal 
agency sponsoring the program funding opportunity. To find out more 
about the eGrants vision and implementation schedule, please visit our 
website at http://www.hud.gov/offices/adm/grants/egrants/egrants.cfm

I. INTRODUCTION TO THE FY 2003 SUPERNOFA

Background

    This SuperNOFA is designed to make it easier to find and apply for 
funding under a wide variety of HUD programs. The SuperNOFA provides a 
``menu'' of HUD funding opportunities. From this menu, communities are 
made aware of funding available for their jurisdictions. By providing 
access to information about available funding at one time, HUD believes 
applicants are better able to coordinate services within communities, 
avoid duplication, and more efficiently serve those most in need of 
assistance. Public housing agencies, local and state governments, 
tribal governments and tribally-designated housing entities, veterans 
service organizations, non-profit organizations, including grass-roots 
faith-based and other community-based organizations, and others will be 
able to identify the programs for which they are eligible.

Organization of the SuperNOFA

    The SuperNOFA is divided into two major sections, the General 
Section and the Program Section. The General Section of the SuperNOFA 
describes the procedures and requirements applicable to all 
applications. For each funding opportunity, the Program Section 
describes the eligible applicants, eligible activities, factors for 
award, and any additional requirements or limitations. Please read both 
sections carefully to be sure your application is complete. Your 
attention to the sections will ensure that you apply for funding for 
which your organization is eligible and that you fulfill all the 
requirements for application submission.
    As part of the simplification of this funding process and to avoid 
duplication of effort, the SuperNOFA provides for consolidated notices 
and applications for several of the programs that are part of this 
SuperNOFA. The funding chart in this introductory section of the 
SuperNOFA identifies the programs that have been consolidated and for 
which a consolidated application is made available to eligible 
applicants.
    HUD provides copies of all required forms in this publication. 
Standard forms, certifications, and assurances applicable to all 
programs are published in the General Section, Appendix B. The forms 
and any additional certifications and assurances unique to an 
individual program follow that program's section of the SuperNOFA.
    The specific statutory and regulatory requirements of the programs 
that are part of this SuperNOFA continue to apply to each program. Each 
SuperNOFA Program Section identifies, where necessary, the statutory 
requirements and other unique requirements applicable to each specific 
program. Please pay careful attention to the specific submission 
requirements that are identified for each funding opportunity. Not all 
applicants are eligible to receive assistance under all funding 
opportunities identified in this SuperNOFA.

II. HUD'S FY 2003 SUPERNOFA PROCESS

HUD's Strategic Goals

    Implementing HUD's Strategic Framework and Demonstrating Results. 
HUD is committed to ensuring that programs result in the achievement of 
HUD's strategic mission. To support this effort, grant applications 
submitted for HUD programs will be rated on how well they tie proposed 
outcomes to HUD's policy priorities and Annual Goals and Objectives, 
and the quality of proposed Evaluation and Monitoring Plans. HUD's 
Strategic Framework establishes the following Goals and Objectives for 
the Department:
1. Increase Homeownership Opportunities
    [sbull] Expand national homeownership opportunities.
    [sbull] Increase minority homeownership.
    [sbull] Make the home buying process less complicated and less 
expensive.
    [sbull] Fight practices that permit predatory lending.
    [sbull] Help HUD-assisted renters become homeowners.
    [sbull] Keep existing homeowners from losing their homes.
2. Promote Decent Affordable Housing
    [sbull] Expand access to affordable rental housing.
    [sbull] Improve the physical quality and management accountability 
of public and assisted housing.
    [sbull] Increase housing opportunities for the elderly and persons 
with disabilities.
    [sbull] Help HUD-assisted renters make progress toward self-
sufficiency.
3. Strengthen Communities
    [sbull] Improve economic conditions in distressed communities.
    [sbull] Make communities more livable.
    [sbull] End chronic homelessness.
    [sbull] Mitigate housing conditions that threaten health.
4. Ensure Equal Opportunity in Housing
    [sbull] Resolve discrimination complaints on a timely basis.
    [sbull] Promote public awareness of Fair Housing laws.
    [sbull] Improve housing accessibility for persons with 
disabilities.
5. Embrace High Standards of Ethics, Management, and Accountability
    [sbull] Rebuild HUD's human capital and further diversify its 
workforce.
    [sbull] Improve HUD's management, internal controls and systems, 
and resolve audit issues.
    [sbull] Improve accountability, service delivery, and customer 
service of HUD and our partners.
    [sbull] Ensure program compliance.
6. Promote Participation of Grass-Roots Faith-Based and Other 
Community-Based Organizations
    [sbull] Reduce regulatory barriers to participation by grass-roots 
faith-based and other community-based organizations.
    [sbull] Conduct outreach to inform potential partners of HUD 
opportunities.
    [sbull] Expand technical assistance resources deployed to grass-
roots faith-based and other community-based organizations.
    [sbull] Encourage partnerships between grass-roots faith-based and 
other community-based organizations and HUD's traditional grantees.
    You can find out about HUD's Strategic Framework and Annual 
Performance Plans at http://www.hud.gov/offices/cfo/reports/
cforept.cfm.
    Policy Priorities. HUD encourages applicants to undertake specific 
activities that will assist the Department in implementing its policy 
priorities and which help the Department achieve its goals for FY 2004, 
when the majority of funding recipients will be reporting programmatic 
results and achievements. Applicants who include work activities that 
specifically address one or more of

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these policy priorities will receive higher rating scores than 
applicants who do not address these HUD priorities. Each NOFA in the 
Program Section of this SuperNOFA will specify which priorities relate 
to a particular program and how many points will be awarded for 
addressing those priorities.
    (A) Providing Increased Homeownership and Rental Opportunities for 
Low- and Moderate-Income Persons, Persons with Disabilities, the 
Elderly, Minorities, and Families with Limited English Proficiency. Too 
often, these individuals and families are shut out of the housing 
market through no fault of their own. Often developers of housing, 
housing counseling agencies, and other organizations engaged in the 
housing industry must work aggressively to open up the realm of 
homeownership and rental opportunities to low- and moderate-income 
persons, persons with disabilities, the elderly, minorities, or 
families with limited English proficiency. Many of these families are 
anxious to have a home of their own but are not aware of the programs 
and assistance that is available. Applicants are encouraged to address 
the housing, housing counseling, and other related supportive services 
needs of these individuals and coordinate their proposed activities 
with funding available through HUD's affordable housing programs and 
home loan programs. Proposed activities support strategic goals 1, 2, 
and 4.
    (B) Improving our Nation's Communities. HUD wants to improve the 
quality of life for those living in distressed communities. Applicants 
are encouraged to include activities which:
    (1) Bring private capital into distressed communities to:
    [sbull] Finance business investments to grow new businesses;
    [sbull] Maintain and expand existing businesses;
    [sbull] Create a pool of funds for new small and minority-owned 
businesses;
    [sbull] Create decent jobs for low-income persons.
    (2) Improve the environmental health and safety of families living 
in public and privately-owned housing by including activities which:
    [sbull] Coordinate lead hazard reduction programs with 
weatherization activities funded by state and local governments, and 
the federal government;
    [sbull] Reduce or eliminate health related hazards in the home 
caused by toxic agents such as molds and other allergens, carbon 
monoxide and other hazardous agents and conditions.
    (3) Make communities more livable.
    [sbull] Provide public and social services.
    [sbull] Improve infrastructure and community facilities.
    Activities support strategic goals 2, 3, and 4.
    (C) Encouraging Accessible Design Features. As described in Section 
V, applicants must comply with applicable civil rights laws including 
the Fair Housing Act, Section 504 of the Rehabilitation Act of 1973, 
and the Americans with Disabilities Act. These laws, and regulations 
implementing them, provide for nondiscrimination based on disability 
and require housing and other facilities to incorporate certain 
features intended to provide for their use and enjoyment by persons 
with disabilities. HUD is encouraging applicants to add accessible 
design features beyond those required under civil rights laws and 
regulations. These features would eliminate many other barriers 
limiting the access of persons with disabilities to housing and other 
facilities. Copies of the Uniform Federal Accessibility Standards 
(UFAS) are available from the SuperNOFA Information Center (1-800-HUD-
8929 or 1-800-HUD-2209 (TTY)) and also from the Office of Fair Housing 
and Equal Opportunity, U.S. Department of Housing and Urban 
Development, Room 5230, 451 Seventh Street, SW, Washington, DC 20410-
2000; 202-755-5404 or 1-800-877 8399 (TTY Federal Information Relay 
Service).
    Accessible design features are intended to promote visitability and 
incorporate features of universal design as described below:
    (1) Visitability in New Construction and Substantial 
Rehabilitation. Applicants are encouraged to incorporate visitability 
standards where feasible in new construction and substantial 
rehabilitation projects. Visitability standards allow a person with 
mobility impairments access into the home, but do not require that all 
features be made accessible. Visitability means that there is at least 
one entrance at grade (no steps), approached by an accessible route 
such as a sidewalk; and that the entrance door and all interior passage 
doors are at least 2 feet 10 inches wide, allowing 32 inches of clear 
passage space. A visitable home also serves persons without 
disabilities, such as a mother pushing a stroller or a person 
delivering a large appliance. More information about visitability is 
available at http://www.concretechange.org.
    Activities support strategic goals 2, 3, and 4.
    (2) Universal Design. Applicants are encouraged to incorporate 
universal design in the construction or rehabilitation of housing, 
retail establishments, and community facilities funded with HUD 
assistance. Universal design is the design of products and environments 
to be usable by all people to the greatest extent possible, without the 
need for adaptation or specialized design. The intent of universal 
design is to simplify life for everyone by making products, 
communications, and the built environment more usable by as many people 
as possible at little or no extra cost. Universal design benefits 
people of all ages and abilities. In addition to any applicable 
required accessibility features under Section 504 of the Rehabilitation 
Act of 1973 or the design and construction requirements of the Fair 
Housing Act, the Department encourages applicants to incorporate the 
principles of universal design when developing housing, community 
facilities, and electronic communication mechanisms, or when 
communicating with community residents at public meetings or events. 
HUD believes that by creating housing that is accessible to all, it can 
increase the supply of affordable housing for all, regardless of 
ability or age. Likewise, creating places where people work, train, and 
interact which are useable and open to all residents increases 
opportunities for economic and personal self-sufficiency. More 
information on Universal Design is available from the Center for 
Universal Design, at http://www.design.ncsu.edu:8120/cud/ or the 
Resource Center on Accessible Housing and Universal Design, at http://
www.abledata.com/Site--2/accessib.htm.
    Activities support strategic goals 1, 2, 3, and 4.
    (D) Providing Full and Equal Access to Grassroots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation.
    (1) HUD encourages non-profit organizations, including grassroots 
faith-based and other community-based organizations, to participate in 
the vast array of programs for which funding is available through this 
SuperNOFA. HUD also encourages states, units of local government, 
universities, and colleges and other organizations to partner with 
grassroots organizations, e.g., civic organizations, faith-communities, 
and grassroots faith-based and other community-based organizations that 
have not been effectively utilized. These grassroots organizations have 
a strong history of providing vital community services such as 
assisting the homeless and preventing homelessness, counseling 
individuals and families on fair housing rights, providing elderly 
housing opportunities, developing first-time

[[Page 21006]]

homeownership programs, increasing homeownership and rental housing 
opportunities in neighborhoods of choice, developing affordable and 
accessible housing in neighborhoods across the country, creating 
economic development programs, and supporting the residents of public 
housing facilities. HUD wants to make its programs more effective, 
efficient, and accessible by expanding opportunities for grassroots 
organizations to participate in developing solutions for their own 
neighborhoods. Additionally, HUD encourages applicants to include these 
grass-roots faith-based and other community-based organizations in 
their workplans. Applicants, their partners, and participants must 
review the Program Section of this SuperNOFA to determine whether they 
are eligible to apply for funding directly or whether they must 
establish a working relationship with an eligible applicant in order to 
participate in a HUD funding opportunity. Grassroots faith-based and 
other community-based organizations, and applicants who currently or 
propose to partner, fund, subgrant, or subcontract with grassroots 
organizations (including grassroots faith-based or other community-
based non-profits eligible under applicable program regulations) in 
conducting their work programs will receive higher rating points as 
specified in the program section of this SuperNOFA.
    (2) Definition of Grassroots Organizations.
    (a) HUD will consider an organization a ``grassroots organization'' 
if the organization is headquartered in the local community to which it 
provides services; and,
    (i) Has a social services budget of $300,000 or less, or
    (ii) Has six or fewer full-time equivalent employees.
    (b) Local affiliates of national organizations are not considered 
``grassroots.'' Local affiliates of national organizations are 
encouraged, however, to partner with grassroots organizations but must 
demonstrate that they are currently working with a grassroots 
organization (e.g., having a faith community or civic organization, or 
other charitable organization provide volunteers).
    (c) The cap provided in paragraph (2)(a)(i) above includes only 
that portion of an organization's budget allocated to providing social 
services. It does not include other portions of the budget such as 
salaries and expenses not directly expended in the provision of social 
services.
    Activities support strategic goal 6.
    (E) Colonias. The Department of Housing and Urban Development is 
seeking to improve housing conditions for families living in Colonias. 
Colonias means any identifiable, rural community that:
    [sbull] Is located in Arizona, California, New Mexico, or Texas;
    [sbull] Is within 150 miles of the border between the United States 
and Mexico; and
    [sbull] Is determined to be a colonia on the basis of objective 
need criteria, including lack of potable water supply, lack of adequate 
sewage systems, and lack of decent, safe, sanitary, and accessible 
housing.
    Applicants proposing to create affordable housing and provide 
services to the Colonias will receive higher rating points.
    Activities support strategic goals 1, 2, 3, and 4.
    (F) Participation of Minority-Serving Institutions in HUD Programs. 
Pursuant to Executive Orders 13256 President's Board of Advisors on 
Historically Black Colleges and Universities, 13230 President's 
Advisory Commission on Educational Excellence for Hispanic Americans, 
13216 Increasing Participation of Asian Americans and Pacific Islanders 
in Federal Programs, and 13270 Tribal Colleges and Universities, HUD is 
strongly committed to broadening the participation of Minority-Serving 
Institutions (MSIs) in its programs. HUD is interested in increasing 
the participation of MSIs in order to advance the development of human 
potential, strengthen the nation's capacity to provide high quality 
education, and increase opportunities for MSIs to participate and 
benefit from federal financial assistance programs. HUD encourages all 
applicants and recipients to include meaningful participation of MSIs 
in their work programs. A listing of MSIs can be found on the 
Department of Education Web site at http://www.ed.gov/offices/OCR/
minorityinst.html or HUD's Web site at http://www.hud.gov.
    Activities support strategic goals 3 and 4.
    (G) Participation in Energy Star. The Department of Housing and 
Urban Development has adopted a wide-ranging energy action plan for 
improving energy efficiency in all program areas. As a first step in 
implementing the energy plan, HUD, the Environmental Protection Agency 
(EPA) and the Department of Energy (DoE) have signed a joint 
partnership to promote energy efficiency in HUD's affordable housing 
efforts and programs. The purpose of the Energy Star partnership is to 
promote energy efficiency of the affordable housing stock, but also to 
help protect the environment. Applicants constructing, rehabilitating, 
or maintaining housing or community facilities are encouraged to 
promote energy efficiency in design and operations. They are urged 
especially to purchase and use Energy Star labeled products. Applicants 
providing housing assistance or counseling services are encouraged to 
promote Energy Star building by homebuyers and renters. Program 
activities can include developing Energy Star promotional and 
information materials, outreach to low- and moderate-income renters and 
buyers on the benefits and savings when using Energy Star products and 
appliances, and promoting the designation of community buildings and 
homes as Energy Star compliant. For further information about Energy 
Star see http://www.energystar.gov or call 1-888-STAR-YES (1-888-782-
7937) or for the hearing-impaired, 1-888-588-9920 TTY.
    Activities support strategic goals 1 and 2.
    (H) Ending Chronic Homelessness within Ten Years. President Bush 
has set a national goal to end chronic homelessness within ten years. 
Secretary Mel Martinez has embraced this goal and has pledged that 
HUD's grant programs will be used to support the President's goal and 
more adequately meet the needs of chronically homeless individuals. A 
person experiencing chronic homelessness is defined as an unaccompanied 
individual with a disabling condition who has been continuously 
homeless for a year or more or has experienced four or more episodes of 
homelessness over the last three years. In this year's SuperNOFA, 
applicants are encouraged to target assistance to chronically homeless 
persons by undertaking activities that will result in:
    [sbull] Creation of affordable group homes or rental housing units;
    [sbull] Establishing a set-aside of units of affordable housing for 
the chronically homeless;
    [sbull] Substance abuse treatment programs targeted to homeless 
population;
    [sbull] Job training programs which will provide opportunities for 
economic self-sufficiency;
    [sbull] Counseling programs that assist homeless persons in finding 
housing, financial management, anger management, and building 
interpersonal relationships;
    [sbull] Supportive services, such as health care assistance that 
will permit

[[Page 21007]]

homeless individuals to become productive members of society;
    [sbull] Provision of Service Coordinators or One Stop Assistance 
Centers that will ensure that chronically homeless persons have access 
to a variety of social services.
    Activities support Strategic Goals 2 and 3.

Changes in the FY 2003 SuperNOFA Process

    New Rating Factor 5. For FY 2003, rating Factor 5 has been changed 
to ``Achieving Results and Program Evaluation.'' This factor emphasizes 
HUD's commitment to ensuring that applicants keep promises made in 
their application and assess their performance to ensure performance 
goals are met.
    Achieving results means you, the applicant, have clearly identified 
the benefits or outcomes of your program. Outcomes are ultimate goals. 
Benchmarks or outputs are interim activities or products that lead to 
the ultimate achievement of your goals.
    Program evaluation requires that you, the applicant, identify 
program outcomes, interim products or benchmarks, and performance 
indicators that will allow you to measure your performance. Performance 
indicators should be objectively quantifiable and measure actual 
against planned achievements. Your Evaluation and Monitoring Plan 
should identify what you are going to measure, how it will be measured, 
and the steps you have in place to make adjustments to your work plan 
if performance targets are not met within established timeframes. HUD 
has included a new form, Logic Model, to help you complete your 
response to Rating Factor 5. The form is included in Appendix B, with 
other forms applicable to most or all of the programs in this 
SuperNOFA.
    This new rating factor reflects HUD's goal to embrace high 
standards of ethics, management, and accountability.
    Higher Minimum Score for Fundable Applications. For FY 2003, an 
application for any of the programs offered by this SuperNOFA must 
receive at least 75 points to be funded. Please take note of this 
scoring threshold and be sure to read the SuperNOFA carefully to ensure 
that you respond to the Factors for Award. A careful reading of the 
NOFA can help you improve your rating score.
    Use of HUD 424 Forms. HUD has consolidated many of its application 
forms into a single HUD-424 form. The new HUD-424 consolidates budget-
reporting forms for both construction and non-construction projects 
into a single form and eliminates the following separate 
certifications: Certification for a Drug-Free Workplace (HUD-50070), 
Certification of Payments to Influence Federal Transactions (HUD-
50071), and Certification Regarding Debarment and Suspension (HUD-
2992).
    New form HUD 424 replaces SF 424 and HUD 424 M.
    HUD 424 B replaces SF 424 B and D, and HUD 50070, 50071, and 2992.
    HUD 424 C and CB replace SF 424 A and C.
    The HUD 424 CBW is added as a common detailed Budget Worksheet to 
replace various budget worksheets used throughout the Department. These 
forms are available on HUD's Web Site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    Race and Ethnicity. OMB published revised standards for collecting 
racial data on October 30, 1997. All agencies were required to be in 
compliance with the 1997 standards by January 1, 2003. These standards 
allow HUD and the other Federal agencies to acknowledge the growing 
diversity of the U.S. population. Under this policy, HUD and its 
business partners must offer individuals who are responding to agency 
data requests for race, the option of selecting one or more of five 
racial categories. HUD must also treat ethnicity as a separate category 
from race and change terminology for certain racial and ethnic groups. 
These definitions have been standardized across the Federal government 
and are provided below.

    The two ethnic categories as revised by the Office of Management 
and Budget (OMB) are defined below:
    [sbull] Hispanic or Latino. A person of Cuban, Mexican, Puerto 
Rican, South, or Central American, or other Spanish culture or origin, 
regardless of race. The term ``Spanish origin,'' can be used in 
addition to ``Hispanic'' or ``Latino.''
    [sbull] Not Hispanic or Latino. A person not of Cuban, Mexican, 
Puerto Rican, South or Central American, or other Spanish culture or 
origin, regardless of race.

    The five racial categories as revised by the Office of Management 
and Budget are defined as follows:
    [sbull] American Indian or Alaska Native. A person having origins 
in any of the original peoples of North and South America (including 
Central America), and who maintains tribal affiliation or community 
attachment.
    [sbull] Asian. A person having origins in any of the original 
peoples of the Far East, Southeast Asia, or the Indian subcontinent 
including, for example, Cambodia, China, India, Japan, Korea, Malaysia, 
Pakistan, the Philippine Islands, Thailand, and Vietnam.
    [sbull] Black or African American. A person having origins in any 
of the black racial groups of Africa. Terms such as ``Haitian'' or 
``Negro'' can be used in addition to ``Black'' or ``African American''.
    [sbull] Native Hawaiian or Other Pacific Islander. A person having 
origins in any of the original peoples of Hawaii, Guam, Samoa, or other 
Pacific Islands.
    [sbull] White. A person having origins in any of the original 
peoples of Europe, the Middle East, or North Africa.
    Self-reporting or self-identification, rather than observer 
identification is the preferred method for collecting race and 
ethnicity data. Self-identification means that responses are based on 
self-perception. If you are required to provide HUD with race and 
ethnicity data, you must collect the data asking separate questions for 
race and for ethnicity. Furthermore, when collecting data the ethnicity 
question should precede the question about race. The Office of 
Management and Budget has recommended this sequence because pre-tests 
conducted by the U.S. Census Bureau found that placing ethnicity before 
race significantly reduced the non-response rate to the ethnicity 
question.
    Thus, when collecting data from respondents it should be collected 
using the following two-question approach:

Ethnicity: (Select only one)
Hispanic or Latino
Not Hispanic or Latino
Race: (Select one or more):
American Indian or Alaskan Native
Asian
Black or African American
Native Hawaiian or Pacific Islander
White

    Once data is collected using the method above, it can be analyzed 
and aggregated when reporting ethnicity and race data to HUD. You 
should use the categories listed in the template below to report the 
aggregate information. If any multiple race category not included in 
the template exceeds one percent of the population, you should identify 
the category, the actual count, and its percentage of population. In 
addition, you should identify the total number of all racial categories 
reported that do not fit the list of categories below, and do not 
equate to one percent of the total population being reported including, 
the total number of all such racial and ethnic categories. Finally, you 
should indicate the aggregate totals of all the information you have 
gathered including the total of all racial categories and the total of 
all the ethnic categories.

[[Page 21008]]

    For grantees that are currently collecting data, you may need to 
compare data collected under both standards. Guidance on bridging data 
periods will be available in the Program Section of the SuperNOFA and 
HUD's SuperNOFA Web site at http://www.hud.gov. A copy of this 
reporting form can be found in Appendix B of the General Section of 
this SuperNOFA.

[[Page 21009]]

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[[Page 21010]]


    Executive Order 13166, Improving Access to Persons With Limited 
English Proficiency (LEP). Executive Order 13166 seeks to improve 
access to persons with limited English proficiency by providing 
materials and information in languages other than English.
    Executive Order 13279 Equal Protection of the Laws for Faith-Based 
and Community Organizations. HUD is committed to full implementation of 
Executive Order 13279 and has undertaken a review of all policies and 
regulations that have implications for faith-based and community 
organizations, and has established a policy priority to provide full 
and equal access to grass-roots faith-based and other community-based 
organizations in HUD program implementation.
    New Programs and Changes to Programs. The FY 2003 SuperNOFA 
includes the following funding opportunities, which were not included 
in FY2002:
    [sbull] COPC Community Futures Awards;
    [sbull] Housing Counseling--Predatory Lending;
    [sbull] Housing Counseling--Section 8 Homeownership;
    [sbull] Lead Outreach Grants;
    [sbull] Lead Elimination Action Program;
    [sbull] Community Development Work-Study;
    [sbull] ROSS for Resident Services Delivery Model--Elderly;
    [sbull] ROSS for Resident Services Delivery Model--Family.
    Not Available for FY 2003. Funding opportunities that were part of 
the FY 2002 SuperNOFA but are not available in FY 2003 are:
    [sbull] ROSS for Resident Management and Business Development;
    [sbull] ROSS for Capacity Building;
    [sbull] Rental Assistance for Non-elderly Persons with Disabilities 
Related to Certain Types of Section 8 Project-Based Development and 
Section 202, 221(d) and 236 Developments;
    [sbull] Rental Assistance for Non-elderly Persons with Disabilities 
in Support of Designated Housing Plans.
    Funding will be announced later in the year for:
    [sbull] Permanent Housing and Special Efforts for Subpopulations 
Technical Assistance (PHASES-TA);
    [sbull] Revitalization of Severely Distressed Public Housing (HOPE 
VI);
    [sbull] Lead Hazard Reduction Demonstration Program;
    [sbull] Community Development Block Grants for Indian Tribes and 
Alaska Native Villages (ICDBG);
    [sbull] Urban Scholars Postdoctoral Fellowships;
    [sbull] Research Studies on Homeownership and Affordable Lending;
    [sbull] 202 Supportive Housing for the Elderly, Planning Grants.
    Funding Notices Issued Prior to the SuperNOFA. Due to statutory 
deadlines for the obligation of funds or for other reasons, there are 
several programs for which notices of funding availability have been 
issued prior to the SuperNOFA. These include:
    [sbull] Collaborative Initiative to Help End Chronic Homelessness;
    [sbull] Capacity Building for Community Development and Affordable 
Housing, and;
    [sbull] Hope VI Demolition Grants;
    [sbull] Research on the Socio-Economic Change in Cities.
    Information on these programs is available on the HUD Web site at 
[chyph]http://www.hud.gov.

III. The Programs of This SUPERNOFA and the Amount of Funds Allocated

    The funding opportunities that are part of this SuperNOFA are 
identified in the following chart. The amount of funds available is 
based on funds appropriated in FY 2003 and funds recaptured from prior 
years' appropriations. In the event that HUD recaptures program funds 
or other funds become available for a program, HUD reserves the right 
to increase the available funding by these additional amounts.
    The chart also includes the application due date, the OMB approval 
number for the information collection requirements, and the Catalog of 
Federal Domestic Assistance (CFDA) number for each funding opportunity.

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[[Page 21017]]


    Paperwork Reduction Act Statement. The information collection 
requirements in this SuperNOFA have been approved by OMB under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The preceding 
chart provides the OMB approval number for each program that is part of 
this SuperNOFA. Where the chart notes that an OMB number is pending, 
this means that HUD has submitted the information to OMB to obtain an 
approval number and HUD's request for the number is pending. As soon as 
HUD receives the approval number, the number will be published in the 
Federal Register and provided to the SuperNOFA Information Center. 
Under the Paperwork Reduction Act, an agency may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless the collection displays a valid control number.

IV. Authority, Funding Amounts, and Eligible Applicants and Activities

    (A) Authority. HUD's authority for making funding available under 
this SuperNOFA is Division K, Consolidated Appropriations Resolution, 
2003, Public Law 108-7, approved February 20, 2003 (FY 2003 
Consolidated Appropriations). Generally, this statement of authority is 
not repeated in the Program Section of this SuperNOFA. The authority 
provision in the Program Section identifies additional statutes and 
regulations that authorize the requirements listed for the funding 
competitions that make up this SuperNOFA.
    (B) Funding Available. As noted in Section III of this General 
Section of the SuperNOFA, the HUD programs in this SuperNOFA are 
allocated amounts based on appropriated funds. If HUD recaptures funds 
in any program, HUD reserves the right to increase the available 
funding by those amounts.
    (C) Eligible Applicants and Eligible Activities. The Program 
Section of the SuperNOFA describes the eligible applicants and eligible 
activities for each program.

V. Requirements and Procedures Applicable to All Programs

    Except as may be modified in the Program Section of this SuperNOFA, 
the requirements, procedures and principles listed below apply to all 
programs that are part of this SuperNOFA. Please read the Program 
Section of the SuperNOFA for additional requirements or information.
    (A) Statutory and Regulatory Requirements. To be eligible for 
funding under this SuperNOFA, you, the applicant, must meet all 
statutory and regulatory requirements applicable to the program or 
programs for which you seek funding. If you need copies of the program 
regulations, they are available from the SuperNOFA Information Center 
or through the HUD Web site, http://www.hud.gov. See the Program 
Section for instructions on how HUD will respond to proposed activities 
that are ineligible. With the exception of the Section 202 and Section 
811 programs, HUD may also eliminate the ineligible activities from 
funding consideration and reduce funding amounts accordingly. Because 
of the competitive demand for Section 202 and Section 811 funds, 
applications to these two programs that include ineligible activities 
will be rejected and will not be rated and ranked.
    (B) Threshold Requirements.
    (1) Ineligible Applicants. HUD will not consider an application 
from an ineligible applicant.
    (2) Compliance with Fair Housing and Civil Rights Laws.
    (a) With the exception of federally recognized Indian tribes and 
their instrumentalities, 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), as 
applicable. If you are a federally recognized Indian tribe, you must 
comply with the non-discrimination provisions enumerated at 24 CFR 
1000.12, as applicable. In addition to these requirements, there may be 
program-specific threshold requirements identified in the Program 
Sections of the SuperNOFA.
    (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 the individual 
program NOFA, you may not apply for assistance under this SuperNOFA. 
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:
    (i) Voluntary compliance agreement signed by all parties in 
response to the letter of findings;
    (ii) HUD-approved conciliation agreement signed by all parties;
    (iii) Consent order or consent decree; or
    (iv) Judicial ruling or a HUD Administrative Law Judge's decision 
that exonerates the respondent of any allegations of discrimination.
    (3) Conducting Business In Accordance with Core Values and Ethical 
Standards. Entities subject to 24 CFR parts 84 and 85 (most non-profit 
organizations and state, local and tribal governments or government 
agencies or instrumentalities who receive federal awards of financial 
assistance) are required to develop and maintain a written code of 
conduct (see Sec. Sec.  84.42 and 85.36(b)(3)). Consistent with 
regulations governing specific programs, your code of conduct must: 
prohibit real and apparent conflicts of interest that may arise among 
officers, employees, or agents; prohibit the solicitation and 
acceptance of gifts or gratuities by your officers, employees, and 
agents for their personal benefit in excess of minimal value; and, 
outline administrative and disciplinary actions available to remedy 
violations of such standards. If awarded assistance under this 
SuperNOFA, you will be required, prior to entering into an agreement 
with HUD, to submit a copy of your code of conduct and describe the 
methods you will use to ensure that all officers, employees, and agents 
of your organization are aware of your code of conduct. Failure to meet 
the requirement for a code of conduct will prohibit you from receiving 
an award of funds from HUD.
    (4) Delinquent Federal Debts. Consistent with the purpose and 
intent of 31 U.S.C. 3720B and 28 U.S.C. 3201(e), no award of federal 
funds shall be made to an applicant who has an outstanding delinquent 
federal debt until: (a) The delinquent account is paid in full; (b) a 
negotiated repayment schedule is established and at least one payment 
is received; or (c) other arrangements satisfactory to the Department 
of Housing and Urban Development are made prior to the deadline 
submission date.
    (5) Pre-Award Accounting System Surveys. HUD may arrange for a pre-
award survey of the applicant's

[[Page 21018]]

financial management system in cases where the recommended applicant 
has no prior federal support, the program area has reason to question 
whether the applicant's financial management system meets federal 
financial management standards, or the applicant is considered a high 
risk based upon past performance or financial management findings. HUD 
will not make an award to any applicant who does not have a financial 
management system that meets federal standards.
    (6) Other Threshold Requirements. The Program Section for the 
funding for which you are applying may specify other threshold 
requirements. Additional threshold requirements may be identified in 
the discussion of ``eligibility'' requirements in the Program Section.
    (C) Additional Non-discrimination Requirements. You, the applicant, 
and your subrecipients must comply with the Americans with Disabilities 
Act of 1990 (42 U.S.C. 1201 et seq.) and Title IX of the Education 
Amendments Act of 1972 (20 U.S.C. 1681 et seq).
    (D) Affirmatively Furthering Fair Housing. Under Section 808(e)(5) 
of the Fair Housing Act, HUD is obliged to affirmatively further fair 
housing. HUD requires the same of its funding recipients. If you are a 
successful applicant, you will have a duty to affirmatively further 
fair housing opportunities for classes protected under the Fair Housing 
Act. Protected classes are race, color, national origin, religion, sex, 
disability, and familial status. Unless otherwise instructed in the 
Program Section of this SuperNOFA, your application must include 
specific steps to:
    (1) Overcome the effects of impediments to fair housing choice that 
were identified in the jurisdiction's Analysis of Impediments (AI) to 
Fair Housing Choice;
    (2) Remedy discrimination in housing; and/or
    (3) Promote fair housing rights and fair housing choice.

Further, you, the applicant, have a duty to carry out the specific 
activities provided in your responses to the SuperNOFA rating factors 
that address affirmatively furthering fair housing. Please see the 
Program Section of this SuperNOFA for additional information.
    The requirements to affirmatively further fair housing apply to:

    [sbull] Alaska Native/Native Hawaiian Institutions Assisting 
Communities (AN/NHIAC);
    [sbull] Assisted Living Conversion Program (ALCP) for Eligible 
Multifamily Housing Projects;
    [sbull] Brownfields Economic Development Initiative (BEDI);
    [sbull] Community Outreach Partnership Centers (COPC);
    [sbull] Continuum of Care Homeless Assistance Programs (SHP, 
Shelter Plus Care, Section 8 Moderate Rehab);
    [sbull] Fair Housing Initiatives Program (FHIP);
    [sbull] Funding Availability for Rental Certificate/Housing Choice 
Voucher Family Self-Sufficiency (FSS) Program;
    [sbull] Healthy Homes Demonstration Program;
    [sbull] Healthy Homes Initiative and Lead Technical Studies;
    [sbull] Hispanic-Serving Institutions Assisting Communities 
(HSIAC);
    [sbull] Historically Black Colleges and Universities (HBCU) 
Program;
    [sbull] Housing Counseling;
    [sbull] Housing Opportunities for Persons With AIDS (HOPWA);
    [sbull] Lead Hazard Control Program;
    [sbull] Mainstream Housing Opportunities for Persons with 
Disabilities;
    [sbull] Public Housing Resident Opportunities and Self-Sufficiency 
(ROSS) Program;
    [sbull] Rental Assistance for Non-Elderly Persons with Disabilities 
in Support of Designated Housing Plans;
    [sbull] Rental Assistance for Non-Elderly Persons with Disabilities 
Related to Certain Developments;
    [sbull] Resident Opportunities for Self-Sufficiency (ROSS) for 
Homeownership Supportive Services;
    [sbull] Rural Housing and Economic Development (RHED);
    [sbull] Section 202 Supportive Housing for Elderly Persons;
    [sbull] Section 811 Supportive Housing for Persons with 
Disabilities;
    [sbull] Self-Help Homeownership Opportunity Program (SHOP);
    [sbull] Service Coordinators in Multifamily Housing; and
    [sbull] Youthbuild Program.
    (E) Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). Certain programs in this SuperNOFA require recipients of 
assistance to comply with Section 3 of the Housing and Urban 
Development Act of 1968 (Section 3), 12 U.S.C. 1701u (Economic 
Opportunities for Low- and Very Low-Income Persons in Connection with 
Assisted Projects) and the HUD regulations at 24 CFR part 135, 
including the reporting requirements at subpart E. Section 3 requires 
recipients to ensure that, to the greatest extent feasible, training, 
employment, and other economic opportunities will be directed to low- 
and very-low income persons, particularly those who are recipients of 
government assistance for housing, and business concerns which provide 
economic opportunities to low- and very low-income persons. As noted in 
the Program Section of this SuperNOFA, Section 3 is applicable to the 
following programs:
    [sbull] Alaska Native/Native Hawaiian Institutions Assisting 
Communities (AN/NHIAC);
    [sbull] Assisted Living Conversion Program (ALCP);
    [sbull] Brownfields Economic Development Initiative (BEDI);
    [sbull] Continuum of Care Homeless Assistance Programs;
    [sbull] Healthy Homes and Lead Technical Studies;
    [sbull] Healthy Homes Demonstration Program;
    [sbull] Hispanic-Serving Institutions Assisting Communities 
(HSIAC);
    [sbull] Historically Black Colleges and Universities (HBCU) 
Program;
    [sbull] Housing Opportunities for Persons With AIDS (HOPWA);
    [sbull] Lead Hazard Control;
    [sbull] Lead Elimination Action Program (LEAP);
    [sbull] Resident Opportunities and Self-Sufficiency Program (ROSS);
    [sbull] Rural Housing and Economic Development (RHED);
    [sbull] Section 202 Supportive Housing for the Elderly Program;
    [sbull] Section 811 Supportive Housing for Persons with 
Disabilities Program;
    [sbull] Self-Help Homeownership Opportunity Program (SHOP); and
    [sbull] Youthbuild Program.
    (F) Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses. HUD is committed 
to ensuring that small businesses, small disadvantaged businesses, and 
women-owned businesses participate fully in HUD's direct contracting 
and in contracting opportunities generated by HUD financial assistance. 
Too often, these businesses still experience difficulty accessing 
information and successfully bidding on federal contracts. State, 
local, and tribal governments are required by 24 CFR 85.36(e) and non-
profit recipients of assistance (grantees and sub-grantees) by 24 CFR 
84.44(b), to take all necessary affirmative steps in contracting for 
purchase of goods or services to assure that minority firms, women's 
business enterprises, and labor surplus area firms are used when 
possible, or as specified in the Program Section.
    (G) Relocation. The relocation requirements of the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970, as amended, and the implementing government-wide regulation at 49 
CFR part 24 cover any person who moves

[[Page 21019]]

permanently from real property or moves personal property from real 
property directly because of acquisition, rehabilitation, or demolition 
for an activity undertaken with HUD assistance. Some HUD program 
regulations also cover persons who are temporarily relocated. See, 
e.g., 24 CFR 570.606(b)(2)(i)(D)(1)--(3), providing guidance on 
temporary relocation for CDBG. Applicants should review the regulations 
for the programs for which they are applying when planning their 
project.
    (H) Forms, Certifications, and Assurances. You, the applicant, are 
required to submit signed copies of the standard forms, certifications, 
and assurances listed in this section, unless the requirements in the 
Program Section specify otherwise. In addition, the Program Section may 
specify additional forms, certifications, assurances, or other 
information that may be required for a particular program in this 
SuperNOFA. As part of HUD's continuing efforts to improve the SuperNOFA 
process, several of the required standard forms have been simplified 
this year. The HUD standard forms, certifications, and assurances are:
    [sbull] Disclosure of Lobbying Activities (SF-LLL);
    [sbull] Application for Federal Assistance (HUD-424);
    [sbull] Budget Summary for Competitive Grant Programs (HUD-424C);
    [sbull] Applicant Assurances and Certifications (HUD-424B);
    [sbull] Grant Application Detailed Budget (HUD-424-CB);
    [sbull] Grant Application Detailed Budget Worksheet (HUD-424-CBW);
    [sbull] Applicant/Recipient Disclosure/Update Report (HUD-2880);
    [sbull] Certification of Consistency with RC/EZ/EC Strategic Plan 
(HUD-2990) if applicable;
    [sbull] Certification of Consistency with the Consolidated Plan 
(HUD-2991) if applicable;
    [sbull] Acknowledgment of Application Receipt (HUD-2993);
    [sbull] Client Comments and Suggestions (HUD 2994) (Optional);
    [sbull] Survey on Ensuring Equal Opportunity for Applicants (HUD-
23004);
    [sbull] Race and Ethnic Data Reporting Form (HUD-27061);
    [sbull] Program Outcome Logic Model (HUD-96010-I).
    Copies of these standard forms and the Funding Application for the 
Housing Choice Voucher Program (HUD 52515) follow this General Section 
of the SuperNOFA. Copies of forms that are particular to an individual 
program follow the funding information for that program.
    (I) Name Check Review. Applicants are subject to a name check 
review process. Name checks are intended to reveal matters that 
significantly reflect on the applicant's management and financial 
integrity, or if any key individuals have been convicted or are 
presently facing criminal charges. If the name check reveals 
significant adverse findings that reflect on the business integrity or 
responsibility of the recipient and/or key individual, HUD reserves the 
right to: (a) Deny funding or consider suspension/termination of an 
award immediately for cause; (b) require the removal of any key 
individual from association with management of and/or implementation of 
the award; and (c) make appropriate provisions or revisions with 
respect to the method of payment and/or financial reporting 
requirements.
    (J) False Statements. A false statement in an application is 
grounds for denial or termination of an award and grounds for possible 
punishment as provided in 18 U.S.C. 1001.
    (K) OMB Circulars and Government-wide Regulations Applicable to 
Financial Assistance Programs. Certain OMB circulars also apply to 
programs in this SuperNOFA. The policies, guidance, and requirements of 
OMB Circular A-87 (Cost Principles Applicable to Grants, Contracts and 
Other Agreements with State and Local Governments), OMB Circular A-21 
(Cost Principles for Education Institutions), OMB A-122 (Cost 
Principles for Nonprofit Organizations), OMB Circular A-133 (Audits of 
States, Local Governments, and Non-Profit Organizations), and the 
regulations in 24 CFR part 84 (Grants and Agreements with Institutions 
of Higher Education, Hospitals, and other Non-Profit Organizations), 
and 24 CFR part 85 (Administrative Requirements for Grants and 
Cooperative Agreements to State, Local, and Federally recognized Indian 
tribal governments), may apply to the award, acceptance, and use of 
assistance under the programs of this SuperNOFA, and to the remedies 
for non-compliance, except when inconsistent with the provisions of the 
FY 2003 Consolidated Appropriations, other federal statutes or 
regulations, or the provisions of this SuperNOFA. Compliance with 
additional OMB Circulars or government-wide regulations may be 
specified for a particular program in the Program Section of the 
SuperNOFA. Copies of the OMB Circulars may be obtained from EOP 
Publications, Room 2200, New Executive Office Building, Washington, DC 
20503, telephone (202) 395-3080 (this is not a toll-free number) or 1-
800-877 8399 (TTY Federal Information Relay Service); or, from the Web 
site, http://www.whitehouse.gov/omb/circulars/index.html.
    (L) Environmental Requirements. If you become a recipient under one 
of the programs in this SuperNOFA that assist physical development 
activities or property acquisition, you are generally prohibited from 
acquiring, rehabilitating, converting, demolishing, leasing, repairing 
or constructing property, or committing or expending HUD or non-HUD 
funds for these types of program activities, until one of the following 
has occurred:
    (1) HUD has completed an environmental review in accordance with 24 
CFR part 50; or
    (2) For programs subject to 24 CFR part 58, HUD has approved a 
recipient's Request for Release of Funds (Form HUD 7015.15) following a 
Responsible Entity's completion of an environmental review.
    You, the applicant, should consult the Program Section of the 
SuperNOFA for the applicable program to determine the procedures for, 
timing of, and any exclusions from environmental review under a 
particular program. For applicants applying for funding under the 
Sections 202 or 811 Programs, please note the environmental review 
requirements for these programs.
    (M) Conflicts of Interest. If you are a consultant or expert who is 
assisting HUD in rating and ranking applicants for funding under this 
SuperNOFA, you are subject to 18 U.S.C. 208, the federal criminal 
conflict of interest statute, and the Standards of Ethical Conduct for 
Employees of the Executive Branch regulation published at 5 CFR part 
2635. As a result, if you have assisted or plan to assist applicants 
with preparing applications for this SuperNOFA, you may not serve on a 
selection panel and you may not serve as a technical advisor to HUD for 
this SuperNOFA. All individuals involved in rating and ranking this 
SuperNOFA, including experts and consultants, must avoid conflicts of 
interest or the appearance of conflicts. Individuals involved in the 
rating and ranking of applications must disclose to HUD's General 
Counsel or HUD's Ethics Law Division the following information, if 
applicable: how the selection or non-selection of any applicant under 
this SuperNOFA will affect the individual's financial interests, as 
provided in 18 U.S.C. 208; or, how the application process involves a 
party with whom the individual has a covered relationship under 5 CFR 
2635.502. The individual must disclose this information prior to 
participating in any matter regarding this SuperNOFA. If

[[Page 21020]]

you have questions regarding these provisions or if you have questions 
concerning a conflict of interest, you may call the Office of General 
Counsel, Ethics Law Division, at (202) 708-3815.
    (N) Prohibition Against Lobbying Activities. You, the applicant, 
are subject to the provisions of Section 319 of the Department of 
Interior and Related Agencies Appropriation Act for Fiscal Year 1991, 
31 U.S.C. 1352 (the Byrd Amendment), which prohibits recipients of 
federal contracts, grants, or loans from using appropriated funds for 
lobbying the executive or legislative branches of the federal 
government in connection with a specific contract, grant, or loan. When 
you sign Form HUD-424, Application for Federal Assistance, you certify, 
to the best of your knowledge and belief, that no federal appropriated 
funds have been paid, or will be paid, by or on behalf of the 
applicant, to any person for influencing or attempting to influence an 
officer or employee of an agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress, in 
connection with the awarding of this federal grant or its extension, 
renewal, amendment, or modification. In addition, you must disclose, 
using Standard Form LLL ``Disclosure of Lobbying Activities,'' any 
funds, other than federally appropriated funds, that will be or have 
been used to influence federal employees, Members of Congress, and 
congressional staff regarding specific grants or contracts. Federally 
recognized Indian tribes and tribally designated housing entities 
(TDHEs) established by federally recognized Indian tribes as a result 
of the exercise of the tribe's sovereign power are excluded from 
coverage of the Byrd Amendment, but state-recognized Indian tribes and 
TDHEs established under state law must comply with this requirement.
    (O) Accessible Technology. The Rehabilitation Act Amendments of 
1998 (the Act) apply to all electronic information technology (EIT) 
used by a recipient for transmitting, receiving, using, or storing 
information to carry out the responsibilities of any federal funds 
awarded. The Act's coverage includes, but is not limited to, computers 
(hardware, software, word-processing, email, and web pages), facsimile 
machines, copiers, and telephones. When developing, procuring, 
maintaining, or using EIT, funding recipients must ensure that the EIT 
allows employees with disabilities and members of the public with 
disabilities to have access to and use of information and data that is 
comparable to the access and use of information and data by employees 
and members of the public who do not have disabilities. If these 
standards impose a hardship on a funding recipient, a recipient may 
provide an alternative means to allow the individual to use the 
information and data. However, no recipient will be required to provide 
information services to a person with disabilities at any location 
other than the location at which the information services is generally 
provided.
    (P) Procurement of Recovered Materials. State agencies and agencies 
of a political subdivision of a state that are using assistance under 
this SuperNOFA for procurement, and any person contracting with such an 
agency with respect to work performed under an assisted contract, must 
comply with the requirements of Section 6002 of the Solid Waste 
Disposal Act, as amended by the Resource Conservation and Recovery Act. 
In accordance with Section 6002, these agencies and persons must 
procure items designated in guidelines of the Environmental Protection 
Agency at 40 CFR part 247 that contain the highest percentage of 
recovered materials practicable, consistent with maintaining a 
satisfactory level of competition, where the purchase price of the item 
exceeds $10,000 or the quantity acquired in the preceding fiscal year 
exceeded $10,000; must procure solid waste management services in a 
manner that maximizes energy and resource recovery; and must have 
established an affirmative procurement program for procurement of 
recovered materials identified in the EPA guidelines.
    (Q) Participation in HUD-Sponsored Program Evaluation. As a 
condition of the receipt of financial assistance under this SuperNOFA 
all successful applicants will be required to cooperate with all HUD 
staff or contractors performing HUD-funded research and evaluation 
studies.
    (R) Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects. Consistent with 
Executive Order 13202, ``Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects,'' as amended, it 
is a condition of receipt of assistance under this SuperNOFA that 
neither you nor any subrecipient or program beneficiary receiving funds 
under an award granted under this SuperNOFA, nor any construction 
manager acting on behalf of you or any such subrecipient or program 
beneficiary, may require bidders, offerors, contractors, or 
subcontractors to enter into or adhere to any agreement with any labor 
organization on any construction project funded in whole or in part by 
such award or on any related federally funded construction project; or 
prohibit bidders, offerors, contractors, or subcontractors from 
entering into or adhering to any such agreement on any such 
construction project; or otherwise discriminate against bidders, 
offerors, contractors, or subcontractors on any such construction 
project because they become or refuse to become or remain signatories 
or otherwise to adhere to any such agreements. Contractors and 
subcontractors are not prohibited from voluntarily entering into such 
agreements. A recipient or its construction manager may apply to HUD 
under Section 5(c) of the Executive Order for an exemption from these 
requirements for a project where a construction contract on the project 
had been awarded as of February 17, 2001, and was subject to 
requirements that are prohibited under the Executive Order.
    (S) Executive Order 13166, Improving Access to Persons With Limited 
English Proficiency (LEP). Consistent with Executive Order 13166, 
``Improving Access to Persons With Limited English Proficiency (LEP'') 
issued on August 11, 2000, all HUD recipients should take reasonable 
steps to provide certain materials and information available in 
languages other than English. The determination as to what materials, 
languages, and modes of translation/interpretation services should be 
used shall be based upon: (a) The specific needs and capabilities of 
the LEP populations among the award recipient's program beneficiaries 
and potential beneficiaries of assistance (e.g. tenants, community 
residents, counselees, trainees, etc.); (b) the recipient's primary and 
major program purposes; (c) resources of the recipient and size of the 
program; and (d) local housing, demographic, and community conditions 
and needs. Further guidance may be found at http://www.lep.gov.
    (T) Executive Order 13279 Equal Protection of the Laws for Faith-
Based and Community Organizations. HUD is committed to full 
implementation of 13279 and has undertaken a review of all policies and 
regulations that have implications for faith-based and community 
organizations, and has established a policy priority to provide full 
and equal access to grass-roots faith-based and other community-based 
organizations in HUD program implementation. As part of HUD's efforts 
to support the Administration's

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Initiative, HUD has included Form HUD-23004, Survey on Ensuring Equal 
Opportunity for Applicants, with the standard forms in Appendix B of 
the General Section of this SuperNOFA. HUD asks that applicants 
complete this form to help HUD assess the extent of participation by 
grassroots faith-based and other community-based organizations.
    (U) Salary Limitation for Consultants. FY 2003 funds may not be 
used to pay or to provide reimbursement for payment of the salary of a 
consultant at more than the daily equivalent of the rate paid for level 
IV of the Executive Schedule, unless specifically authorized by law.

VI. Application Selection Process

    (A) Threshold Compliance. Only applications that meet all of the 
threshold requirements will be eligible to be rated and ranked.
    (B) Rating Panels. To review and rate applications, HUD may 
establish panels which may include persons not currently employed by 
HUD. HUD may include these non-HUD employees to obtain certain 
expertise and outside points of view, including views from other 
federal agencies.
    Rating. HUD will evaluate and rate all applications for funding 
that meet the threshold requirements.
    [sbull] Past Performance. In evaluating applications for funding 
HUD will take into account applicants' past performance in managing 
funds, including the ability to account for funds appropriately; timely 
use of funds received either from HUD or other federal, state, or local 
programs; meeting performance targets for completion of activities and 
receipt of promised matching or leveraged funds; and, number of persons 
to be served or targeted for assistance. HUD may consider information 
available from HUD's records or available from public sources such as, 
but not limited to, newspapers, Inspector General or Government 
Accounting Office Reports or Findings, and/or hotline complaints that 
have been proven to have merit.
    [sbull] Deducting Points for Poor Performance. In evaluating past 
performance, HUD may elect to deduct points from the rating score or 
establish threshold levels as specified under the Factors for Award in 
the Program Section of this SuperNOFA.
    Ranking. HUD will rank applicants within each program or, for 
Continuum of Care applicants, across the three programs identified in 
the Continuum of Care section of this SuperNOFA. HUD will rank 
applicants only against those applying for the same program funding. 
Where there are set-asides within a program competition, you, the 
applicant, will compete against only those applicants in the same set-
aside competition.
    (C) Factors for Award Used to Evaluate and Rate Applications. For 
each program that is part of this SuperNOFA, the points awarded for the 
rating factors total 100. Depending upon the program for which you, the 
applicant, are seeking funding, the funding opportunity may provide for 
up to four bonus points as provided in paragraphs (1) and (2) of this 
Section VI(C).
    (1) RC/EZ/EC. The SuperNOFA provides for the award of two bonus 
points for eligible activities/projects that the applicant proposes to 
be located in federally designated Empowerment Zones (EZs), Enterprise 
Communities (ECs), Urban Enhanced Enterprise Communities (EECs), 
Strategic Planning Communities, or Renewal Communities (RCs), that 
serve the residents of these areas, and are certified to be consistent 
with the area's strategic plan. (For ease of reference in the 
SuperNOFA, all these federally designated areas are collectively 
referred to as ``RC/EZ/ECs'' and residents of any of these federally 
designated areas as ``RC/EZ/EC residents.'') The individual funding 
announcement will indicate if the bonus points are available for that 
funding. The SuperNOFA contains a certification that must be completed 
for the applicant to be considered for RC/EZ/EC bonus points. A list of 
RCs, EZs, ECs, EECs, and Strategic Planning Communities is attached to 
this General Section of the SuperNOFA as Appendix A-2 and is also 
available from the SuperNOFA Information Center, and the HUD Web site, 
http://www.hud.gov.
    (2) Brownfields Show Case Communities: In the BEDI competition, two 
bonus points are available for federally designated Brownfields Show 
Case Communities. (Please see BEDI section of this SuperNOFA for 
additional information.) A list of the federally designated RCs, EZs, 
ECs, Enhanced ECs, and Brownfields Show Case Communities is available 
from the SuperNOFA Information Center or through the HUD Web site, 
http://www.hud.gov.
    (D) The Five Standard Rating Factors for FY 2003. The majority of 
programs in this SuperNOFA use the five rating factors described below. 
Additional details about the five rating factors and the maximum points 
for each factor are provided in the Program Section of the SuperNOFA. 
You, the applicant, should carefully read the factors for award as 
described in the Program Section of the SuperNOFA. HUD has established 
these five factors as the basic factors for award in every program that 
is part of this SuperNOFA. For a specific funding opportunity, however, 
HUD may modify these factors to take into account specific program 
needs or statutory or regulatory limitations imposed on a program. The 
standard factors for award, except as modified in the program area 
section, are:

Factor 1: Capacity of the Applicant and Relevant Organizational Staff
Factor 2: Need/Extent of the Problem
Factor 3: Soundness of Approach
Factor 4: Leveraging Resources
Factor 5: Achieving Results and Program Evaluation

The Continuum of Care Homeless Assistance Program has only two factors 
that receive points: Need and Continuum of Care.
    (E) Negotiation. After HUD has rated and ranked all applications 
and made selections, HUD may require, depending upon the program, that 
all selected applicants participate in negotiations to determine the 
specific terms of the funding agreement and budget. In cases where HUD 
cannot successfully conclude negotiations with a selected applicant or 
a selected applicant fails to provide HUD with requested information, 
an award will not be made to that applicant. In this instance, HUD may 
offer an award, and proceed with negotiations with the next highest-
ranking applicant.
    (F) Adjustments to Funding.
    (1) HUD reserves the right to fund less than the full amount 
requested in your application to ensure the fair distribution of funds 
and ensure that the purposes or requirements of a specific program are 
met.
    (2) HUD will not fund any portion of your application that: is not 
eligible for funding under specific program statutory or regulatory 
requirements; does not meet the requirements of this SuperNOFA; or may 
be duplicative of other funded programs or activities from prior year 
awards or other selected applicants. Only the eligible portions of your 
application (including non-duplicative portions) may be funded.
    (3) If funds remain after funding the highest-ranking applications, 
HUD may fund all or part of the next highest-ranking application in a 
given program. If you, the applicant, turn down an award offer, HUD 
will make an offer of funding to the next highest-ranking application. 
If funds remain after all selections have been made, remaining funds 
may be available for other competitions for each program where there is 
a balance of funds.

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    (4) In the event HUD commits an error that, when corrected, would 
result in selection of an otherwise eligible applicant during the 
funding round of this SuperNOFA, HUD may select that applicant when 
sufficient funds become available.
    (G) Performance and Compliance Actions of Funding Recipients. HUD 
will measure and address the performance and compliance actions of 
funding recipients in accordance with the applicable standards and 
sanctions of their respective programs.

VII. Application Submission Requirements

    Be sure to read and follow the application submission requirements 
published in the Program Section for which you are applying. As noted 
above, once you have submitted one signed, original set of forms, 
certifications and assurances, you may send copies of these standard 
items with each additional application you submit.

VIII. 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 or failure to submit the requested number of copies. 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. (Sections 202 and 811 Programs provide for appeal of rejection 
of an application on technical deficiency. Please see the Program 
Section for these programs for additional information and 
instructions.)

IX. Findings and Certifications

    Environmental Impact. A Finding of No Significant Impact with 
respect to the environment has been made in accordance with HUD 
regulations at 24 CFR part 50 that implement Section 102(2)(C) of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332). The Finding 
of No Significant Impact is available for public inspection between 
8:00 a.m. and 5:00 p.m. 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.

X. Executive Orders and Congressional Intent

    (A) Executive Order 13132, Federalism. Executive Order 13132 
prohibits, to the extent practicable and permitted by law, an agency 
from promulgating policies that have federalism implications and either 
impose substantial direct compliance costs on state and local 
governments and are not required by statute, or preempt state law, 
unless the relevant requirements of Section 6 of the Executive Order 
are met. This SuperNOFA does not have federalism implications and does 
not impose substantial direct compliance costs on state and local 
governments or preempt state law within the meaning of the Executive 
Order.
    (B) Executive Order 12372, Intergovernmental Review of Federal 
Programs. Executive Order 12372 was issued to foster intergovernmental 
partnership and strengthen federalism by relying on state and local 
processes for the coordination and review of federal financial 
assistance and direct federal development. HUD implementing regulations 
are published in 24 CFR part 52. The Order allows each state to 
designate an entity to perform a state review function. The official 
listing of State Points of Contact (SPOC) for this review process can 
be found at http://www.whitehouse.gov/omb/grants/spoc.html. States not 
listed on the website have chosen not to participate in the 
intergovernmental review process and, therefore, do not have a SPOC. If 
your state has a SPOC, you should contact them to see if they are 
interested in reviewing your application prior to submission to HUD. 
Please make sure that you allow ample time for this review process when 
developing and submitting your applications. If your state does not 
have a SPOC, you may send applications directly to HUD.
    (C) Sense of Congress. It is the sense of Congress, as published in 
section 409(a) of the Conference Report of HJR 2, that, to the greatest 
extent practicable, all equipment and products purchased with funds 
made available in this Act should be American-made.

XI. Public Access, Documentation and Disclosure

    (A) Section 102 of the HUD Reform Act, Documentation and Public 
Access Requirements. Section 102 of the Department of Housing and Urban 
Development Reform Act of 1989 (42 U.S.C. 3545) (HUD Reform Act) and 
the regulations codified in 24 CFR part 4, subpart A, contain a number 
of provisions that are designed to ensure greater accountability and 
integrity in the provision of certain types of assistance administered 
by HUD. On January 14, 1992, HUD published a notice that also provides 
information on the implementation of Section 102 (57 FR 1942). The 
documentation, public access, and disclosure requirements of Section 
102 apply to assistance awarded under this SuperNOFA as follows:
    (1) Documentation, public access, and disclosure requirements. HUD 
will ensure that documentation and other information regarding each 
application submitted pursuant to this SuperNOFA are sufficient to 
indicate the basis upon which assistance was provided or denied. This 
material, including any letters of support, will be made available for 
public inspection for a five-year period beginning not less than 30 
days after the award of the assistance. Material will be made available 
in accordance with the Freedom of Information Act (5 U.S.C. 552) and 
HUD's implementing regulations (24 CFR part 15).
    (2) HUD Form 2880. HUD will also make available to the public for 
five years all applicant disclosure reports (HUD Form 2880) submitted 
in connection with this SuperNOFA. Update reports (also reported on HUD 
Form 2880) will be made available along with the applicant disclosure 
reports, but in no case for a period of less than three years. All 
reports, both applicant disclosures and updates, will be made available 
in accordance with the Freedom of Information Act (5 U.S.C. 552) and 
HUD's implementing regulations (24 CFR part 5).

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    (3) Publication of Recipients of HUD Funding. HUD's regulations at 
24 CFR part 4 provide that HUD will publish a notice in the Federal 
Register to notify the public of all decisions made by the Department 
to provide:
    (i) Assistance subject to Section 102(a) of the HUD Reform Act; 
and/or
    (ii) Assistance provided through grants or cooperative agreements 
on a discretionary (non-formula, non-demand) basis, but that is not 
provided on the basis of a competition.
    (4) Debriefing. Beginning 30 days after the awards for assistance 
are publicly announced and for at least 120 days after awards for 
assistance are publicly announced, HUD will provide a debriefing to any 
applicant requesting one on their application. All debriefing requests 
must be made in writing or by email by the authorized official whose 
signature appears on the SF-424 or his or her successor in office, and 
submitted to the person or organization identified as the Contact under 
the section entitled ``Further Information and Technical Assistance'' 
in the Program Section of the SuperNOFA under which you applied for 
assistance. Information provided during a debriefing will include, at a 
minimum, the final score you received for each rating factor, final 
evaluator comments for each rating factor, and the final assessment 
indicating the basis upon which assistance was provided or denied.
    (B) Section 103 of the HUD Reform Act. HUD's regulations 
implementing Section 103 of the Department of Housing and Urban 
Development Reform Act of 1989 (42 U.S.C. 3537a), codified in 24 CFR 
part 4, subpart B, section 4.26(2)(c) et. seq. and 4.28 apply to this 
funding competition. The regulations continue to apply until the 
announcement of the selection of successful applicants. HUD employees 
involved in the review of applications and in the making of funding 
decisions are limited by the regulations from providing advance 
information to any person (other than an authorized employee of HUD) 
concerning funding decisions or from otherwise giving any applicant an 
unfair competitive advantage. Persons who apply for assistance in this 
competition should confine their inquiries to the subject areas 
permitted under 24 CFR part 4.
    Applicants or employees who have ethics related questions should 
contact the HUD Ethics Law Division at 202-708-3815. (This is not a 
toll-free number.) HUD employees who have specific program questions 
should contact the appropriate field office counsel or Headquarters 
counsel for the program to which the question pertains.

XII. The FY 2003 SUPERNOFA Process and Future HUD Funding Processes

    Each year, HUD strives to improve its SuperNOFA. The FY 2003 
SuperNOFA was revised based upon comments received during the FY 2002 
funding process. HUD continues to welcome comments and feedback from 
applicants and other members of the public on how HUD may further 
improve its competitive funding process. In FY 2004, as part of Public 
Law 106-107 streamlining efforts and the interagency eGrants 
Initiative, HUD anticipates making considerable changes to the format 
and presentation of its funding notices. We are continually striving to 
ensure effective communication with our program funding recipients and 
potential funding recipients. HUD has been posting pertinent documents 
related to these efforts on its website. HUD encourages you to visit 
our website on an ongoing basis to keep abreast of the latest 
developments. Our website address for information on the eGrants 
Initiative is http://www.hud.gov/offices/adm/grants/egrants/
egrants.cfm. Information on Grant streamlining activities can be found 
on http://www.hud.gov/offices/adm/grants/pl-106107/pl106-107.cfm.
    The description of programs for which funding is available under 
this SuperNOFA follows this General Section and its appendices.

    Dated: April 15, 2003.
Mel Martinez,
Secretary.

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21085]]



FUNDING AVAILABILITY FOR COMMUNITY DEVELOPMENT TECHNICAL ASSISTANCE 
(CD-TA) PROGRAMS--HOME, CHDO (HOME), McKINNEY-VENTO HOMELESS 
ASSISTANCE, AND HOPMA

PROGRAM OVERVIEW

    Purpose of the Program. Funds are available to provide technical 
assistance (TA), under cooperative agreements with HUD, for four 
separate programs: (1) HOME Investment Partnerships Program (HOME); (2) 
HOME Investment Partnerships Program for Community Housing Development 
Organizations [CHDO (HOME)]; (3) McKinney-Vento Homeless Assistance; 
and (4) Housing Opportunities for Persons With AIDS (HOPWA).
    Available Funds. Approximately $22.9 million in Fiscal Year 2003 
funds is available for the CD-TA programs and additional funds that may 
become available as a result of recapturing unused funds.
    Eligible Applicants. Eligibility differs for each of the CD-TA 
programs. Specific eligibility requirements for the fourthree CD-TA 
programs are found below in Section III (B).
    Application Deadline. June 4, 2003.
    Match. None.

Additional Information

    If an organization is interested in applying for funding under this 
program, it should review carefully the General Section of this 
SuperNOFA and the following additional information.

I. Application Due Date; Application Submission Procedures; Addresses 
for Submitting Applications; For Further Information and Technical 
Assistance

    (A) Application Due Date. Applicants must submit completed 
applications on or before May 28, 2003 to the addresses shown below.
    (B) Application Submission Procedures. Only one application per 
organization is permitted; however, the one application may contain a 
proposal for one, two, three, or all four CD-TA programs, including the 
special ``pooled'' Field Office HOME Program TA arrangement being 
offered for the first time in this NOFA and described in Section II 
(B).
    Applicants must submit two copies of their application. One 
original application must be submitted to HUD Headquarters; it is 
considered the official application. Applicants must also send a copy 
of the original application to each HUD Field Office in which their 
organization is seeking to provide services, except that, in the case 
of pooled Field Office HOME TA, applicants need only submit the 
original and one copy to HUD Headquarters.
    Applicants must refer to the General Section of this SuperNOFA for 
detailed requirements governing application submission and receipt
    (C) Addresses for Submitting Applications. While following the 
procedures in the General Section of this SuperNOFA, submit the 
original application to HUD Headquarters at: U.S. Department of Housing 
and Urban Development; CPD Processing and Control Branch, Room 7251; 
451 Seventh Street, SW; Washington, DC 20410; Attention: CD-TA. Submit 
a copy of the application to the appropriate Field Office(s) at the 
address(es) shown on the list of HUD Field Offices included as Appendix 
B. Please mark the package Attention: CD-TA.
    (D) For Further Information and Technical Assistance. Applicants 
may contact HUD Headquarters at 202-708-3176, or they may contact the 
HUD Field Office serving their area shown in Appendix B. Persons with 
hearing and speech challenges may access the above numbers via TTY 
(text telephone) by calling the Federal Relay Service at 1-800-877-8339 
(this is a toll-free number). Information may also be obtained through 
the HUD Web site on the Internet at http://www.hud.gov.
    HUD will hold an informational satellite broadcast for potential 
applicants to learn more about the CD-TA programs and preparation of 
the application. For information about the date and time of the 
broadcast, consult the HUD Web site at http://www.hud.gov.

II. Description of National and Field Office TA; Amounts Allocated; 
Fair Share; Award Adjustments; Award Period

    (A) Description of National and Field Office TA. National TA 
activities are those that address, at a national or regional level, one 
or more of the CD-TA program activities and/or priorities identified in 
Section III (C) of this NOFA. National TA activities may include the 
development and delivery of training, delivery of training courses 
previously approved by HUD, development of written products, delivery 
of direct TA, the organization and delivery of workshops and 
conferences, and the development of online training materials. National 
TA activities will be administered by a Government Technical 
Representative (GTR) and Government Technical Monitor (GTM) at HUD 
Headquarters. Regardless of the geographical coverage proposed for the 
TA, applicants for National TA must be willing to work in any Field 
Office area listed in Appendix A of this NOFA.
    All Field Office TA activities must also address the CD-TA program 
activities and/or priorities identified in Section III (C), but the TA 
will be targeted to the specific needs of each Field Office in which 
the TA is proposed. Field Office TA activities are limited to the 
development of needs assessments, the organization and delivery of 
workshops and conferences, the customization and delivery of previously 
approved HUD trainings, and direct TA. Following the award of CD-TA 
program funds, HUD Headquarters may approve other proposed Field Office 
TA activities on a case-by-case basis. Field Office TA will be 
administered by a GTR and GTM in the respective HUD Field Office. 
Please note that the pooled Field Office HOME TA is Field Office TA 
carried out in Field Office jurisdictions and directed by Field Office 
GTRs and GTMs. Pooled Field Office HOME TA will involve coordination 
between HUD Headquarters and the respective Field Office as described 
in Section II (B).
    (B) Amounts Allocated. The amounts allocated for each CD-TA program 
are given below. Appendix A shows how the funds are divided between 
National TA and Field Office TA.
    (1) HOME TA funds available are approximately $8.3 million. 
National HOME TA funds will be available only to applicants proposing 
eligible activities that are national in scope. Field Office TA funds 
will be available to those proposing to provide TA in the geographic 
areas under the purview of Field Offices and those Field Offices 
selecting Option 2 as described below under (C) ``Fair-
Share''. (Field Offices that selected Option 2 are identified 
in Appendix A.) Please note that funding from HOME TA and all other 
HOME Program-related TA sources to any single eligible organization 
(excluding funds for organizational support and housing education 
``passed through'' to CHDOs), whether as an applicant or subrecipient 
is limited to not more than 20 percent of the operating budget of the 
recipient organization, and is limited to 20 percent of the $17,883,000 
made available for HOME and CHDO (HOME) TA in FY 2003.
    (2) CHDO (HOME) TA funds available are approximately $6 million. 
Not less than 40 percent of the funds are available for eligible 
applicants that have worked primarily in one state. HUD will consider 
an intermediary as a primarily single State technical assistance 
provider if it can document that more than 50 percent of its past

[[Page 21086]]

activities in working with CHDOs or similar nonprofit and other 
organizations (on the production of affordable housing, revitalization 
of deteriorating neighborhoods, and/or the delivery of technical 
assistance to these groups) was confined to the geographic limits of a 
single state. Funding from CHDO (HOME) TA and all other HOME program-
related TA sources to any single eligible organization (excluding funds 
for organizational support and housing education ``passed through'' to 
CHDOs), whether as an applicant or subrecipient is limited to not more 
than 20 percent of the operating budget of the recipient organization, 
and is limited to 20 percent of the $17,883,000 made available for HOME 
and CHDO (HOME) TA in FY 2003.
    (3) McKinney-Vento Act Homeless Assistance Programs TA funds 
available are up to $6.6 million. Up to 25 percent of the McKinney-
Vento Act Homeless Assistance technical assistance funds are for 
qualified providers who have not previously received a HUD CD-TA award.
    (4) HOPWA FY 2003 TA funds available are up to $2 million. HUD will 
ensure that at least $400,000 of the HOPWA TA funds are designated for 
each of the two national goals [see section III (C)(4)].
    (C) Fair Share. Each HUD Field Office with a Community Planning and 
Development (CPD) Division has been allocated a ``fair share'' of CD-TA 
funds for purposes of this competition, except for the HOPWA TA funds 
that will be awarded only through a national competition. Appendix A 
lists the fair share allocations. The amounts are based on allocations 
of HOME, CHDO (HOME), and McKinney-Vento Act Homeless Assistance 
formula funds and competitive programs for which Field Offices have 
management oversight.
    For HOME TA only, Field Offices are given two options for TA 
administration. Under Option 1, Field Offices administer their fair 
share HOME CD-TA funds.
    Under Option 2, Field Offices place their fair share of HOME TA 
funds into a separate HOME TA pooled account. Applications for these 
funds are rated and ranked separately. Field Offices that have chosen 
to ``opt in'' to the HOME TA pooled account receive assistance from TA 
providers chosen to serve the pooled account jurisdictions through this 
competition. Consequently, applicants proposing to provide training 
and/or direct TA with HOME TA pooled account funds must be willing to 
provide coverage to all Field Office jurisdictions opting in the HOME 
TA pooled account. Please review Appendix A for those Field Offices 
that have opted into the HOME TA pooled account and take the ``full 
coverage'' requirement into consideration when determining your funding 
request. Because of the statutory requirement that 40 percent of CHDO 
(HOME) TA be provided by single-state providers, all Field Offices will 
continue to administer their fair-share of CHDO (HOME) TA funds.
    (D) Award Adjustments. In addition to the funding adjustment 
authority provided for in the General Section of this SuperNOFA, HUD 
reserves the right to adjust funding levels for each CD-TA applicant. 
The amounts listed in Appendix A are provided to assist applicants to 
develop Field Office or national CD-TA program budgets and do not 
represent the exact amounts to be awarded. Once TA providers are 
selected for award, HUD will determine the total amount to be awarded 
to any provider based upon the size and needs of each of the provider's 
service areas, the funds available for that area and CD-TA program, the 
number of other CD-TA recipients selected in that area or CD-TA 
program, and the scope of the TA to be provided.
    Additionally, HUD may reduce the amount of funds allocated for 
Field Office jurisdictions to fund national CD-TA providers and other 
CD-TA providers for activities that cannot be fully budgeted for or 
estimated by HUD Headquarters or Field Offices at the time this NOFA 
was published. HUD may also require selected applicants, as a condition 
of funding, to provide coverage on a geographically broader basis than 
proposed in order to supplement or strengthen the CD-TA network in 
terms of the size of the area covered and types and scope of TA 
proposed. To facilitate the implementation of its Colonias initiative, 
HUD expects winners of national HOME TA funds to direct up to ten 
percent of their TA award to undertake activities in or related to the 
Colonias areas or its residents, to the extent feasible. (See the 
General Section of this SuperNOFA for information on HUD's Colonias 
initiatives.)
    If funds remain after all selections have been made, the remaining 
funds may be distributed among Field Offices (in proportion to their 
fair-share awards) and/or the national program, or made available for 
other CD-TA program competitions.
    (E) Award Period. Cooperative agreements will be for a period of up 
to 36 months. HUD, however, reserves the right to:
    (1) Terminate awards anytime after 12 months in accordance with 
provisions contained in 24 CFR parts 84 and 85;
    (2) Withdraw funds from a specific provider, if HUD determines that 
the need for the assistance is greater in other Field Office 
jurisdictions or the need for assistance is not commensurate with the 
amount of the award for assistance; and
    (3) In cases where a CD-TA provider currently is providing TA under 
an existing CD-TA grant/cooperative agreement, HUD reserves the right 
to adjust the start date of funding under this NOFA to coincide with 
the conclusion of the previous award or to incorporate the remaining 
activities from the previous award into the new agreement, adjusting 
the funding levels as necessary.

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. The CD-TA program provides assistance to 
achieve the highest level of performance and results for four separate 
community development programs. Information about the four community 
development programs and their mission, goals, and activities can be 
found on the HUD Web site at http://www.hud.gov.
    (B) Eligible Applicants.
    (1) General. The eligible applicants for each of the four CD-TA 
programs are listed in paragraphs (2), (3), (4), and (5) of this 
section. The following requirements are applicable to all applicants:
    (a) An organization may not provide assistance to itself. An 
organization may not provide assistance to another organization with 
which it contracts or subawards funds to carry out activities under the 
TA award;
    (b) A consortium of organizations may apply for one or more CD-TA 
programs, but one organization must be designated as the applicant;
    (c) Applicants must meet minimum statutory eligibility requirements 
for each CD-TA program for which they are applying; and
    (d) Applicants must meet the applicable threshold requirements of 
Section V (B)(2) of the General Section of the SuperNOFA.
    Applicants may propose assistance using in-house staff, 
consultants, sub-contractors and sub-recipients, networks of private 
consultants, and/or local organizations with requisite experience and 
capabilities. Where appropriate, applicants should make use of TA 
providers located in the Field Office jurisdiction receiving services. 
This draws upon local expertise and persons familiar with the 
opportunities and

[[Page 21087]]

resources available in the area to be served while reducing travel and 
other costs associated with delivering the proposed TA services.
    (2) HOME TA Eligible Applicants.
    (a) A for-profit or non-profit professional and technical services 
company or firm that has demonstrated capacity to provide technical 
assistance services;
    (b) A HOME participating jurisdiction (PJ);
    (c) A public purpose organization responsible to the chief elected 
official of a PJ and established pursuant to State or local 
legislation;
    (d) An agency or authority established by two or more PJs to carry 
out activities consistent with the purposes of the HOME program; and
    (e) A national or regional non-profit organization that has 
membership comprised predominantly of entities or officials of entities 
of PJs or PJs' agencies or established organizations.
    (3) CHDO (HOME) TA Eligible Applicants.
    (a) Public and private non-profit intermediary organizations that 
customarily provide services (in more than one community) related to 
HOME affordable housing development and management or other 
neighborhood revitalization by CHDOs; and
    (b) Other non-profit organizations that engage in community 
revitalization activities undertaken by CHDOs, including all eligible 
organizations under section 233 of the Cranston-Gonzales National 
Affordable Housing Act, as amended.
    (c) Any organization funded to assist CHDOs under this CD-TA 
program section of the SuperNOFA may not undertake CHDO set-aside 
activities itself within its service area while under cooperative 
agreement with HUD.
    (4) McKinney-Vento Act Homeless Assistance Programs TA Eligible 
Applicants.
    (a) States, units of general local government, and public housing 
authorities; and
    (b) Public and private non-profit or for-profit groups, including 
educational institutions and area-wide planning organizations.
    (5) HOPWA TA Eligible Applicants.
    (a) Non-profit organizations; and
    (b) States and units of general local government.
    (C) Eligible Activities. Eligible activities for each of the four 
CD-TA programs are the following:
    (1) HOME TA. By statute, HUD may provide TA to meet specified 
objectives. From these objectives, HUD has identified six TA priorities 
for FY 2003. These priorities are the following:
    (a) Facilitate the exchange of information that will help PJs carry 
out the purposes of the HOME statute, including the design, 
implementation, and management of affordable housing programs that 
address accessibility, housing finance, land use controls, and building 
construction techniques;
    (b) Improve the ability of PJs, particularly those PJs 
inexperienced in the development of affordable housing, to design and 
implement housing strategies that include an analysis and reduction of 
regulatory barriers, reflect sound management and fiscal controls, 
demonstrate measurable outcomes in the use of public funds, and provide 
for accurate and timely reporting of accomplishments;
    (c) Encourage private lenders, non-profit organizations, and for-
profit developers of low-income housing to participate in public-
private partnerships to achieve the purposes of the HOME statute;
    (d) Assist PJs in developing strategies that ameliorate the 
affordability gap between rapidly increasing housing costs and the less 
rapid growth in incomes among low-income households, especially among 
underserved populations (e.g., residents of the Colonias, homeless, 
persons with disabilities);
    (e) Assist PJs in developing strategies that increase and help 
sustain homeownership opportunities for low-income households--
particularly low-income, minority households; and
    (f) Facilitate the establishment and efficient operation of land 
assembly, under which title to vacant and abandoned parcels of real 
estate located in or causing blighted neighborhoods is cleared for use 
consistent with the purposes and timeframes of the HOME statute.
    (2) CHDO (HOME) TA. CHDO (HOME) TA funds may be used only for the 
following eligible activities:
    (a) Organizational Support--Organizational support may be made 
available to CHDOs to cover operational expenses, training, technical, 
legal, engineering, and other assistance to the board of directors, 
staff, and members of the community development organization;
    (b) Housing Education--Housing education assistance may be made 
available to CHDOs to cover expenses related to the provision or 
administration of programs for educating, counseling, and organizing 
homeowners and tenants who are eligible to receive assistance under the 
HOME Program;
    (c) Program-Wide Support of Non-Profit Development and Management--
Technical assistance, training, and continuing support may be made 
available to eligible CHDOs for managing and conserving properties 
developed under the HOME program;
    (d) Benevolent Loan Funds--Technical assistance may be made 
available to increase the investment of private capital in housing for 
very low-income families, particularly by encouraging the establishment 
of benevolent loan funds through which private financial institutions 
will accept deposits at below-market interest rates and make those 
funds available at favorable rates to developers of low-income housing 
and to low-income homebuyers;
    (e) Community Development Banks and Credit Unions--Technical 
assistance may be made available to establish privately-owned, local 
community development banks and credit unions to finance affordable 
housing;
    (f) Community Land Trusts--Organizational support, technical 
assistance, education, and training and assistance to community groups 
for the establishment of community land trusts [as defined in section 
233(f) of the Cranston-Gonzales National Affordable Housing Act]; and
    (g) Facilitating Women in Homebuilding Professions--Technical 
assistance may be made available to businesses, unions and 
organizations involved in the construction and rehabilitation of 
housing in low- and moderate-income areas to assist women residing in 
the area to obtain jobs involving such activities, which may include 
facilitating access by helping such women to develop nontraditional 
skills, recruiting women to participate in such programs, providing 
continuing support for women at job sites, counseling and educating 
businesses regarding suitable work environments for women, providing 
information to such women regarding opportunities for establishing 
small housing construction and rehabilitation businesses, and providing 
materials and tools for training such women in an amount not to exceed 
ten percent of any assistance provided under this paragraph. HUD shall 
give priority under this paragraph to providing technical assistance 
for organizations rehabilitating single family housing owned or 
controlled by HUD pursuant to Title II of the National Housing Act and 
which have women members in occupations in which women constitute 25 
percent or less of the total number of workers in the occupation (in 
this section referred to as ``nontraditional occupations'').

[[Page 21088]]

    (3) McKinney-Vento Act Homeless Assistance Programs TA. Funds are 
available to provide TA to McKinney-Vento Act-funded homeless 
assistance projects. Funds may be used to provide TA to prospective 
applicants, applicants, grantees, and project sponsors of McKinney-
Vento Act-funded housing and supportive services for homeless persons. 
The assistance may include, but is not limited to, written information 
such as papers, manuals, guides and brochures; person-to-person 
exchanges; on-site assessments; provision of technical expertise; and 
training and related costs.
    HUD has set a national goal to end chronic homelessness within ten 
years and seeks to meet the needs of chronically homeless individuals 
as well as other homeless persons and families. A person experiencing 
chronic homelessness is defined as an unaccompanied individual with a 
disabling condition who has been continuously homeless for a year or 
more or has experienced four or more episodes of homelessness over the 
last three years.
    TA activities are focused on but not limited to the following:
    (a) Facilitating the exchange of information between community 
organizations to develop and implement a community-wide discharge plan 
for individuals exiting publicly-funded institutions (e.g., criminal 
justice system, foster care system, mental health system) so that these 
individuals do not become homeless;
    (b) Improving the ability of eligible applicants to develop and 
operate permanent housing projects for chronically homeless persons;
    (c) Developing materials on effective grant administration for 
grantees and sponsors;
    (d) Improving the ability of eligible grantees and sponsors in 
reaching out to and enumerating chronically homeless persons; and
    (e) Improving the ability of grantees and sponsors in coordinating 
services available through mainstream resources with current housing 
units available for homeless persons.
    (4) HOPWA TA. Funds are available to provide grantees, project 
sponsors, and potential recipients of HOPWA program funds with the 
skills and knowledge needed to develop, operate, and support HOPWA-
eligible projects and activities in concert with two national goals: 
sustainable and sound management of HOPWA programs; and the accurate 
use of HUD's information and management tools. The national goals are 
to enhance the organization's ability to use HUD funds in a manner that 
upholds the public trust in the operation of the program, and to 
enhance the organization's ability to sustain their projects through 
financial downturns and beyond the term of the grant.
    An applicant for HOPWA TA funds may propose activities on a 
national basis or a regional basis. To achieve the national goals, 
HOPWA TA must be used to address the following areas:
    For goal one: Sustainable and sound management of HOPWA programs--
    (a) Management and operations through such activities as training 
on management practices to ensure responsive, efficient, and cost 
effective facility and program operations; training on fiscal 
management to ensure accountability in the use of funds and in the 
development of long-term strategies to assure financial viability, 
including strategic planning, merger and acquisition consideration, and 
financial development programs;
    (b) State, local, and community planning through such activities as 
training on the coordination of housing with health-care and other 
related supportive services for eligible persons; improving ability in 
developing collaborations with local, State and Federal agencies that 
administer HIV/AIDS-related programs, including programs funded under 
the Ryan White CARE Act; facilitating in creating or linking to 
existing needs assessments of the area's housing needs of persons 
living with HIV/AIDS and their families; facilitating in creating or 
linking to comprehensive multiple-year HIV/AIDS housing plans that are 
undertaken in collaboration with local, State and Federal programs 
including the Ryan White CARE Act programs; and facilitating in 
creating or linking to existing plans that address specialized needs of 
clients, including assistance for clients with serious mental illness, 
chronic alcohol and other drug abuse issues, and homelessness; and
    (c) Program evaluation through such activities as advising on data 
collection and program evaluation and dissemination of results; and 
developing and providing program handbooks, guidance materials, audio/
visual products, training, and other activities to promote good 
management practices.
    For goal two: Accurate use of HUD's information and management 
tools--
    Providing TA to grantees, project sponsors, and other nonprofit 
organizations involved in HIV/AIDS plans in using the Department's 
information technology, financial reporting on program activities. 
Proposed activities may support the use of the Department's 
Consolidated Planning Process and Comprehensive Annual Performance 
Evaluation Report (CAPER), Integrated Disbursement and Information 
System (IDIS), the use of HOPWA Annual Progress Reports, the Grants 
Management System, and LOCCS/HUDCAPS and other information collection 
or financial management tools, including the government-wide e-grants 
system when it becomes operational. The use of these management tools 
ensure that the performance of HOPWA recipients is measured under the 
HOPWA national performance goals. The proposed activities may include 
conducting grantee and sponsor workshops, developing training 
materials, developing or adapting program output and outcome measures 
and sponsoring related conferences and training of grantees and project 
sponsors.

IV. CD-TA Program Requirements

    Because CD-TA program awards are made as cooperative agreements, 
they entail significant HUD involvement. Thus, the TA activities 
proposed in an application may change after discussion with HUD. In 
addition to the requirements listed in the General Section of this 
SuperNOFA, applicants are subject to the following requirements:
    (A) Profit/Fee. No increment above cost, no fee or profit, may be 
paid to any recipient or subrecipient of an award under this CD-TA 
Program section of the SuperNOFA.
    (B) TA Oversight. All Field Office TA providers, including those 
awarded pooled Field Office HOME TA account funds, must operate under 
the direction of each HUD Field Office within whose jurisdiction they 
are providing TA. When directed by a Field Office, TA providers may be 
required to coordinate activities through a lead CD-TA provider or 
other organization designated by the Field Office. If an applicant is 
selected as a Field Office CD-TA provider and is then designated as the 
lead CD-TA provider, the applicant must follow HUD Field Office 
direction and coordinate the activities of other CD-TA providers 
selected under this CD-TA Program section of the SuperNOFA. All 
national TA providers must coordinate their plans with, and operate 
under the direction of the GTR and GTM in HUD Headquarters.
    Joint activities by CD-TA providers may be required.
    (C) Demand-Response Delivery System. All CD-TA applicants must 
operate within the structure of the demand-response system. Under the 
demand-response system, CD-TA providers are required to:

[[Page 21089]]

    (1) When requested by a HUD Headquarters or a Field Office GTR/GTM, 
market the availability of their services to existing and potential 
recipients within the jurisdictions in which the assistance will be 
delivered;
    (2) Respond to requests for assistance from the HUD Headquarters or 
HUD Field Office GTR/GTM responsible for overseeing TA within a 
specific geographic service area, including responding to priorities 
established by the Field Office in its Grants Management System. HOME 
PJs, CHDOs, and McKinney-Vento Act Homeless Assistance grantees may 
request assistance from the CD-TA provider directly, but the CD-TA 
provider is responsible for obtaining the local HUD Field Office's 
approval before responding to such requests. For CHDO (HOME) TA, the 
Field Office will coordinate with the affected HOME PJ in which the CD-
TA provider proposes to work;
    (3) When requested by a HUD Headquarters or a Field Office GTR/GTM, 
conduct a Needs Assessment to identify the type and nature of the 
assistance needed by the recipient of the assistance. Needs Assessments 
identify the nature of the problem to be addressed, the plan of action, 
the type of TA to be provided, the duration of the assistance, the 
staff assigned to provide the assistance, anticipated products and/or 
outcomes, and the estimated cost; and
    (4) CHDO (HOME) TA providers will be responsible for securing a 
technical assistance designation letter from a PJ stating that a CHDO, 
or prospective CHDO to be assisted by the provider, is a recipient or 
intended recipient of HOME funds and indicating, at its option, subject 
areas of assistance that are most important to the PJ.
    (D) Technical Assistance Delivery Plan (TADP). After selection for 
funding but prior to executing the cooperative agreement, applicants 
must develop in consultation with the respective HUD Headquarters or 
Field Office GTR/GTM, a TADP for each national program or Field Office 
jurisdiction for which the applicant has been selected.
    In developing the TADP, the applicant must follow the HUD 
Headquarters' or Field Office's management plan in determining the 
priority work activities, location of activities, and organizations to 
be assisted during the cooperative agreement performance period. The 
HUD Headquarters or Field Office GTR/GTM will direct TA activities and 
establish expected outcomes. Applicants will use the logic model to 
identify their planned outcomes and report on actual accomplishments in 
relation to the planned outcomes.
    For national HOME TA, applicants must work cooperatively with the 
GTR and GTM in the Office of Affordable Housing Programs to develop a 
TADP that addresses the national priorities, as identified in Section 
III (C), paragraphs (1) and (2) of this CD-TA NOFA, and meets the needs 
of HOME PJs and their partners.
    The TADP must delineate all tasks and sub-tasks for each CD-TA 
program the applicant will undertake either nationally or in each Field 
Office jurisdiction. The TADP must specify the location of the proposed 
CD-TA activities, the level of CD-TA funding and proposed activities by 
location, the improved program performance or other results expected 
from the CD-TA, and the methodology to be used for measuring the 
success of the CD-TA. A detailed time schedule for delivery of the 
activities, budget summary, budget-by-task, and staffing plan must be 
included in the TADP.
    In the case of pooled Field Office HOME TA funds, applicants will 
work with the GTR and GTM in HUD Headquarters to develop a TADP that 
includes the elements contained in the previous paragraph except for 
the detailed time schedule for delivery of the activities, budget 
summary, budget-by-task, staffing plan, and scope of work which will be 
negotiated in the form of a Technical Plan for Assistance (TPA) with 
the Field Office in which the TA is to be provided to ensure that the 
TA provider is working under the control and direction of the Field 
Office. The TPA must be consistent with the approved TADP.
    (E) Training Sessions. When conducting training sessions as part of 
its CD-TA activities, CD-TA providers are required to:
    (1) Design the course materials as ``step-in'' packages (also 
called ``train-the-trainer'' packages) so that a Field Office or other 
CD-TA provider may independently conduct the course on its own;
    (2) Provide all course material in an electronic format that will 
permit wide distribution among TA providers, Field Offices, and HUD 
grantees;
    (3) Arrange for joint delivery of the training with Field Office or 
Headquarters participation when requested by the HUD Headquarters or 
Field Office GTR/GTM; and
    (4) When required by HUD, deliver HUD-approved training courses 
that have been designed and developed by other HUD contractors or HUD 
cooperating parties on a ``step-in'' basis for CD-TA clients, and send 
trainers to approved ``train-the-trainers'' sessions. The costs 
associated with attending these required sessions are eligible under 
the cooperative agreement.
    (F) Reports to HUD Headquarters and Field Office GTR/GTMs. CD-TA 
providers will be required to report to the HUD Field Office(s) with 
oversight of the geographic area(s) in which CD-TA services are 
provided or to Headquarters GTR/GTMs in the case of national providers. 
At a minimum, this reporting will be on a quarterly basis unless 
otherwise specified in the approved TADP.
    (G) Financial Management and Audit Information. After selection for 
funding but prior to award, applicants must submit a certification from 
an Independent Public Accountant or the cognizant government auditor, 
stating that the applicant's financial management system meets 
prescribed standards for fund control and accountability required by 24 
CFR part 84 for Institutions of Higher Education and other Non-Profit 
Institutions, 24 CFR part 85 for States and local governments, or the 
Federal Acquisition Regulations for all other applicants. The 
information should include the name and telephone number of the 
independent auditor, cognizant Federal auditor, or other audit agency 
as applicable. In addition, the applicant must submit a certification 
that the organization is in compliance with the statutory limitations 
placed on HOME and CHDO (HOME) TA.
    (H) Affirmatively Furthering Fair Housing. Section V (D) of the 
General Section of the SuperNOFA does not apply to these technical 
assistance programs.
    (I) CHDO (HOME) ``Pass-Through Funds''. CD-TA providers may propose 
to fund the purchase of equipment and supplies, salaries and operating 
expenses, and training scholarships for eligible CHDOs that directly 
assist these organizations to own, develop, or sponsor affordable 
housing. CD-TA providers proposing ``pass-through'' grants are required 
to:
    (1) Establish written criteria for selection of CHDOs receiving 
pass through funds which include the following: Participating 
jurisdictions must designate the organizations as CHDOs; and, 
generally, the organizations should not have been in existence more 
than 3 years.
    (2) Enter into an agreement with the CHDO that the agreement and 
pass through funding may be terminated at the discretion of HUD if no 
written legally binding agreement to provide assistance for a specific 
housing project (for acquisition, rehabilitation, new

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construction, or tenant-based rental assistance) has been made by the 
PJ with the CHDO within 24 months of initially receiving pass-through 
funding.
    (3) The pass-through amount, when combined with other capacity 
building and operating support available through the HOME program, 
cannot exceed the greater of 50 percent of the CHDO's operating budget 
for the year in which it receives funds or $50,000 annually.
    (J) Program Requirements for HOPWA Technical Assistance.
    (1) The items listed in (A)--(I) immediately above apply to HOPWA 
TA, except that the demand-response delivery system does not apply. The 
CD-TA provider is responsible for obtaining the Field Office's approval 
before responding to TA requests in Field Office jurisdictions.
    (2) If selected, the TA provider is required to begin technical 
assistance activities within one year of selection (i.e., one year from 
the date of the signing of the selection letter by HUD) and to provide 
an initial report to the Field Office and the Headquarters GTR on the 
startup of the planned activities within three months of selection. If 
a selected project does not meet an appropriate performance benchmark, 
HUD reserves the right to cancel or withdraw the grant funds.
    (3) Except for national meetings, research, information and other 
activities that are conducted on a program-wide basis in cooperation 
with HUD Headquarters TA providers must work cooperatively with HUD 
Field Offices. Providers must notify the applicable HUD Field Office of 
the planned activities; must consider the views or recommendations of 
that office, if any; must follow those recommendations, to the degree 
practicable; and must report to the applicable Field Office on the 
accomplishments of the assistance.

V. Application Selection Process

(A) Threshold Review, Rating and Ranking

    (1) HUD will review each application to determine whether it meets 
the threshold requirements described in Sections I, III, and IV of this 
CD-TA NOFA. Only if an application meets all of the threshold 
requirements will it be eligible to be rated and ranked.
    (2) HUD will evaluate and rate applications that meet the threshold 
requirements according to the Factors for Award noted below in Section 
V (B). Separate ratings will be given for each CD-TA program within 
each Field Office or nationally, as applicable, and for the pooled 
Field Office HOME TA. Under this system, the single application from 
one organization for multiple CD-TA programs in several geographic 
areas could be assigned different scores for each program and for each 
Field Office. For HOPWA, separate ratings will be given for 
applications for each of the two national goals.
    The maximum number of points to be awarded for a CD-TA program 
proposal is 100. The minimum score for a program proposal to be 
considered within funding range is 75 with a minimum of 15 points on 
Factor 1. The CD-TA program is not subject to bonus points, as 
described in Section VI (C)(1)-(3) of the General Section of the Super 
NOFA.
    (3) Once rating scores are assigned, rated applications submitted 
for each CD-TA program and for the pooled Field Office HOME TA at 
either the Headquarters or Field Office level will be listed in rank 
order for each CD-TA program and, in the case of HOPWA TA, for each of 
the two national HOPWA goals for which activities are proposed. 
Applications within the funding range (score of 75+ points with 15+ 
points for Factor 1) may then be funded in rank order under the CD-TA 
program and service area for which they applied. Applicants for pooled 
Field Office HOME TA may not necessarily be funded in rank order since 
the amount of their awards, if any, will be determined by totaling the 
fair share amounts assigned to them by the individual Field Offices 
participating in the pool. A Field Office participating in the pooled 
account may distribute some or all of its fair share amount to any 
applicant for pooled funds that scores in the fundable range (i.e., 
score of 75+ points with 15+ points for Factor 1).

(B) Factors for Award

    For each CD-TA program and the pooled Field Office HOME TA, points 
are awarded on five factors. Factor 1 relates to the capacity of the 
applicant and its relevant organizational experience. Rating of the 
``applicant'' or the ``applicant's organization and staff'' includes 
any sub-contractors, consultants, sub-recipients, and members of 
consortia which are firmly committed to the project. In responding to 
Factor 1, applicants should specify the experience, knowledge, skills, 
and abilities of the applicant's organization and staff, and any 
organizations firmly committed to the project.
    When addressing Factors 2-5, applicants should discuss the specific 
TA projects, activities, tasks, etc. that will be carried out during 
the term of the cooperative agreement. Applicants should provide 
relevant examples to support the proposal, where appropriate. 
Applicants should also be specific when detailing the communities, 
populations, and/or organizations that they propose to serve and the 
specific outcomes expected as a result of the TA.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (25 points) (Minimum for Funding Eligibility--15 Points)

    In a narrative, applicants should describe:
    (1) (10 points). Recent, relevant, and successful experience of the 
applicant's organization in providing TA in all activities and to all 
entities for the CD-TA programs applied for, and an ability to provide 
CD-TA in a geographic area larger than a single city or county.
    (2) (10 points). Competence, knowledge, skills, and abilities of 
key personnel in managing complex, multi-faceted, or multi-disciplinary 
TA programs that require coordination with other entities or multiple, 
diverse units in an organization.
    (3) (5 points). Sufficient personnel or access to qualified experts 
or professionals with the knowledge, skills, and abilities to deliver 
the proposed level of TA in each proposed service area in a timely and 
effective fashion.
    In rating this factor, HUD will consider the extent to which the 
application demonstrates, in relation to the CD-TA program funding that 
is requested, relevant experience within the last four years of 
providing TA that demonstrates the ability to manage multiple TA 
assignments simultaneously, experience levels of key staff demonstrated 
by the technical complexity of assignments performed, and the number 
and experience of key staff as well as their availability to perform 
the work.

Rating Factor 2: Need/Extent of the Problem (20 Points)

    In a narrative, applicants should:
    (1) (10 points). Identify high priority needs in relation to the 
eligible activities [see section III (C) of the CD-TA NOFA] for the CD-
TA program in each community or Field Office jurisdiction for which CD-
TA funding is requested, or on a national or regional basis for 
national HOPWA, McKinney-Vento Homeless Assistance, and HOME grants. 
Even though applicants for pooled Field Office HOME TA funds must be 
willing to provide full coverage for all of the Field Office 
jurisdictions participating in the pool, for the purposes of this 
narrative, these applicants need only identify high

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priority needs in four (4) Field Office jurisdictions.
    (2) (10 points). Support the description of the need described with 
objective information and/or data showing need in each community or 
Field Office jurisdiction for which CD-TA funding is requested, or on a 
national or regional basis for national HOPWA, McKinney-Vento Homeless 
Assistance, and HOME grants.
    In rating this factor, HUD will evaluate the extent to which the 
application shows, in each geographic area for which CD-TA funding is 
requested, an understanding of the specific needs for TA and supports 
the description of need with reliable, quantitative information.

Rating Factor 3: Soundness of Approach (40 Points)

    In a narrative, applicants should:
    (1) (10 points). Describe a sound approach for addressing the 
identified needs.
    (2) (10 points). Provide a cost-effective plan for designing, 
organizing, managing, and carrying out the proposed TA activities 
within the demand-response system.
    (3) (10 points). Demonstrate an effective assistance program to 
specific disadvantaged communities, populations, and/or organizations 
which previously have been underserved and have the potential to 
participate in the four CD-TA programs.
    (4) (10 points). Describe a feasible, creative plan which uses 
state of the art or new promising technology to transfer models and 
lessons learned in each of its CD-TA program's activities to grantees 
and/or program beneficiaries in other CD-TA programs.
    In rating this factor, HUD will evaluate the extent to which the 
application presents and supports a detailed, sound approach in 
addressing identified needs and CD-TA program priorities. HUD will also 
evaluate the extent to which the application demonstrates the cost-
effectiveness of its activities and the effectiveness of its operation 
under the demand-response system, including responding to requests for 
assistance at HUD's direction, handling competing demands, and 
responding to unanticipated demands.

Rating Factor 4: Leveraging Resources (5 Points)

    This factor addresses the applicant's ability to secure community 
resources that can be combined with HUD's program resources to achieve 
program purposes.
    Applicants should provide evidence of leveraging/partnerships by 
including in the application of firm commitments for specific dollar 
amounts in letters, memoranda of understanding, or agreements to 
participate from those entities identified as partners in the 
application. Each letter of commitment, memorandum of understanding, or 
agreement to participate should include the organization's name, 
proposed level of commitment of resources (at fair market value) and 
responsibilities as they relate to the proposed program. The commitment 
must be signed by an authorized official of the organization legally 
able to make commitments on behalf of the organization, and indicate 
specifically that the resources will be committed during the time 
period in which CD-TA funds will be used. Outdated or past commitments 
will not be considered.
    Resources may include cash or in-kind contributions, such as 
services valued at the fair market rate. Resources may be provided by 
governmental entities, public or private nonprofit organizations, for-
profit private organizations, or other entities.
    In rating this factor, HUD will evaluate the extent to which, in 
relation to the funds requested, applicants can provide firm 
commitments for cash or in-kind services that will be used in 
conjunction with the CD-TA resources to achieve program purposes.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    This factor emphasizes HUD's commitment to ensuring that the TA 
provided achieves measurable results. In a narrative, applicants 
should:
    (1) (5 points). Propose an effective, quantifiable, outcome-
oriented evaluation plan for measuring performance, i.e., actual 
against planned achievements. An ``outcome'' is an impact or end result 
of the TA activities undertaken, not the TA activities themselves. The 
evaluation plan shall identify outcomes to be measured, how they will 
be measured, and the steps in place to make adjustments to work plans 
if performance targets are not met within established timeframes. For 
example, plans shall include goals (and report accomplishments) for the 
percent increase in program accomplishments as a result of capacity 
building assistance; measures of improved efficiencies; and increase in 
project resources as a result of assistance. The evaluation plan shall 
also contain ways to identify shortcomings and recommend areas for 
improvement when providing TA.
    (2) (5 points). Demonstrate successful past performance in 
administering HUD CD-TA programs or, for applicants new to HUD's CD-TA 
Programs, demonstrate successful past performance in providing TA in 
other community development programs.
    In rating this factor, HUD will evaluate the extent to which the 
application has an evaluation plan that is specific, measurable, and 
appropriate in relation to the activities proposed and the extent to 
which the application demonstrates past performance that is timely and 
cost-effective in the delivery of community development TA. HUD will 
consider past performance of current CD-TA providers, including 
financial drawdown information in HUD's files.
    (C) Selection. Applications within the funding range (75+ points 
with 15+ points on Factor 1) may be funded in rank order under the CD-
TA program and service areas for which they applied. Applicants for 
pooled Field Office HOME TA may not necessarily be funded in rank order 
since the amount of their awards, if any, will be determined by 
totaling the fair share amounts assigned to them by the individual 
Field Offices participating in the pool. A participating Field Office 
may distribute some or all of its fair share amount to any applicant 
for pooled funds that scores in the fundable range. To the extent 
permitted by funding constraints, HUD intends to provide coverage for 
as full a range of eligible CD-TA program activities as possible both 
in Field Office jurisdictions and nationally. To achieve this 
objective, HUD will seek to fund the highest ranking applications that 
bring the required expertise in one or more specialized activity areas, 
and fund portions of providers' proposed programs in which they have 
the greatest skill and capability for given geographic areas or on a 
national basis. HUD also may require national, multi-jurisdictional, or 
other providers to provide coverage to Field Office jurisdictions that 
cannot otherwise receive cost-effective support from a CD-TA provider. 
In selecting applicants for funding, HUD will seek to select a range of 
providers and activities that will best serve HOME, CHDO (HOME), 
McKinney-Vento Act Homeless Assistance, and HOPWA program goals and 
priorities.
    (D) Negotiation. After all applications have been rated and ranked 
and a selection has been made, HUD requires that all winners 
participate in negotiations to determine the specific terms of the TADP 
and the budget. HUD will follow the negotiation procedures described in 
Section VI (D) of the General Section of the SuperNOFA.

[[Page 21092]]

    (E) Applicant Debriefing. Applicants may request a debriefing as 
described in the General Section of the SuperNOFA.

VI. Application Submission Requirements

    The application must contain the following items:
    (A) HUD-424 which identifies the legal name of the applicant 
organization, a contact person, mailing address (including zip code), 
telephone number, fax number, and e-mail address. If the organization 
has never received a CD-TA award, please include a statement to this 
effect.
    (B) One-page summary outlining the key elements of the proposed CD-
TA activities.
    (C) Chart that summarizes the amount of funds the applicant is 
requesting for each CD-TA program in each Field Office jurisdiction, 
for the pooled Field Office HOME TA, and for National TA. Please use 
the chart in Appendix C of this NOFA.
    For Field Office TA only: If the applicant will not offer services 
throughout the full jurisdictional area of the Field Office, attach a 
statement to the chart that identifies the service areas proposed 
(e.g., cities, counties, etc.), as well as the communities in which the 
organization proposes to offer services. Please note that applicants 
requesting funding under the pooled Field Office HOME TA account must 
be willing to provide coverage to all Field Office jurisdictions opting 
in to the pooled account.
    (D) Statement as to whether the applicant proposes to be considered 
for the role of lead CD-TA provider in one or more specific program 
areas in a Field Office jurisdiction and, if so, the organization's 
capabilities and attributes that qualify the applicant organization for 
the role.
    (E) Narrative addressing each of the Factors for Award described in 
Section V(B) of this CD-TA Program section of this SuperNOFA. This 
narrative statement will be the basis for evaluating the application.
    (F) Statement as to whether the organization proposes to use pass 
through funds under the CHDO (HOME) TA program and, if so, the amount 
and proposed uses of such funds.
    (G) If applying for the CHDO (HOME) program, a certification as to 
whether the organization qualifies as a primarily single-State provider 
under section 233(e) of the Cranston-Gonzales Affordable Housing Act 
and as discussed in Section III(C)(2) of this CD-TA program section of 
this SuperNOFA.
    (H) Budget Summary identifying costs for implementing the plan of 
suggested TA activities by cost category for each CD-TA program for 
which funds are requested by Field Office or as a National Provider 
(applicants for pooled Field Office HOME TA should submit one Budget 
Summary to cover all Field Offices opting in) in accordance with the 
following:
    (1) Direct Labor by position or individual indicating the estimated 
hours per position, the rate per hour, estimated cost per staff 
position, and the total estimated direct labor costs;
    (2) Fringe Benefits by staff position identifying the rate, the 
salary base the rate was computed on, estimated cost per position, and 
the total estimated fringe benefit cost;
    (3) Material Costs indicating the item, quantity, unit cost per 
item, estimated cost per item, and the total estimated material costs;
    (4) Transportation Costs, as applicable;
    (5) Equipment Costs, if any, identifying the type of equipment, 
quantity, unit costs, and total estimated equipment costs;
    (6) Consultant Costs, if applicable, indicating the type, estimated 
number of consultant days, rate per day, total estimated consultant 
costs per consultant, and total estimated costs for all consultants;
    (7) Subcontract Costs, if applicable, indicating each individual 
subcontract and amount;
    (8) Other Direct Costs listed by item, quantity, unit cost, total 
for each item listed, and total other direct costs for the award; and
    (9) Indirect Costs, if applicable, identifying the type, approved 
indirect cost rate, base to which the rate applies, and total indirect 
costs.
    These line items should total the amount requested for each CD-TA 
program area. The grand total of all CD-TA program funds requested 
should reflect the grand total of all funds for which application is 
made.
    (I) Forms, Certifications, and Assurances listed in Section II (H) 
of the General Section of the SuperNOFA (collectively referred to as 
the ``standard forms'').

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    In accordance with 24 CFR 50.19(b)(9) and 58.34(a)(9), the 
assistance provided by these programs relates only to the provision of 
technical assistance and is categorically excluded from the 
requirements of the National Environmental Policy Act and not subject 
to environmental review under the related laws and authorities. This 
determination is based on the ineligibility of real property 
acquisition, construction, rehabilitation, conversion, leasing, or 
repair for HUD assistance under these technical assistance programs.

IX. Authority

    The CHDO (HOME) Technical Assistance program is authorized by the 
HOME Investment Partnerships Act (42 U.S.C. 12773); 24 CFR part 92.
    The HOME Technical Assistance Program is authorized by the HOME 
Investment Partnerships Act (42 U.S.C. 12781-12783); 24 CFR part 92.
    For the McKinney-Vento Act Homeless Assistance Programs Technical 
Assistance, the Supportive Housing Program is authorized under 42 
U.S.C. 11381 et seq.; 24 CFR 583.140. The Emergency Shelter Grant, 
Section 8 Moderate Rehabilitation Single Room Occupancy Program and 
Shelter Plus Care Technical Assistance Programs are authorized by the 
FY 2003 HUD Appropriations Act.
    The HOPWA Technical Assistance program is authorized under the FY 
2003 HUD Appropriations Act. The HOPWA program is authorized under the 
AIDS Housing Opportunities Act (42 U.S.C. 12901) and the HOPWA 
regulations are found at 24 CFR part 574.

X. HUD Reform Act

    The provisions of the HUD Reform Act of 1989 that apply to the CD-
TA programs are explained in the General Section of this SuperNOFA.

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Appendix B to CD-TA Program--List of HUD CPD Field Offices

New England

Connecticut State Office, One Corporate Center, 19th Floor, 
Hartford, CT 06103-3220
Manchester Area Office, 275 Chestnut St., Norris Cotton Bldg., 
Manchester, NH 03101-2487
Massachusetts State Office, 10 Causeway Street, Room 301, Boston, MA 
02222-1092

New York/New Jersey

Buffalo Area Office, 465 Main Street, Fifth Floor, Buffalo, NY 
14203-1780
New Jersey State Office, One Newark Center, 13th Floor, Newark, NJ 
07102-5260
New York State Office, 26 Federal Plaza, New York, NY 10278-0068

Mid-Atlanic

Maryland State Office, 10 S. Howard St., 5th Floor, City Crescent 
Bldg., Baltimore, MD 21201-2505
Pennsylvania State Office, Wanamaker Bldg., 100 Penn Square East, 
Philadelphia, PA 19107-3390
Pittsburgh State Office, 339 6th Avenue, 6th Floor, Pittsburgh, PA 
15222-2515
Virginia State Office, 600 East Broad Street, Richmond, VA 23230-
4920
District of Columbia Office, 820 1st St., N.E., Ste. 450, 
Washington, DC 20002-4205

Southeast/Caribbean

Alabama State Office, Medical Forum Building, Suite 900, 950 22nd 
Street North, Birmingham, AL 35203
Caribbean Office, 159 Carlos E. Chardon Avenue, San Juan, PR 00918-
1804
Florida State Office, 909 Southeast 1st Ave., Rm 500, Miami, FL 
33131
Georgia State Office, 40 Marietta Street, Five Points Plaza--15th 
Floor, Atlanta, GA 30303-3388
Jacksonville Area Office, Southern Bell Tower, 301 West Bay Street, 
Ste. 2200, Jacksonville, FL 32202-5121
Kentucky State Office, 601 W. Broadway, Louisville, KY 40202
Mississippi State Office, 100 West Capitol Street, Rm 910, Jackson, 
MS 39269-1096
North Carolina State Office, Koger Bldg., 2306 W. Meadowview Rd., 
Greensboro, NC 27407-3707
South Carolina State Office, S. Thurmon Fed. Bldg., 1835 Assembly 
Street, Columbia, SC 29201-2480
Tennessee State Office, 710 Locust Street, 3rd Floor, Knoxville, TN 
37902-2526

Midwest

Illinois State Office, 77 West Jackson Boulevard, Ralph Metcalfe 
Bldg., Chicago, IL 60604-3507
Indiana State Office, 151 North Delaware Street, Indianapolis, IN 
46204-2526
Michigan State Office, Patrick McNamara Building, 477 Michigan 
Avenue, Detroit, MI 48226-2592
Minnesota State Office, 920 Second Avenue, South, Minneapolis, MN 
55401-2195
Ohio State Office, 200 North High Street, Columbus, OH 43215-2499
Wisconsin State Office, 310 W. Wisconsin Avenue, Ste. 1380, 
Milwaukee, WI 53203-2289

Southwest

Arkansas State Office, 425 West Capital Avenue, TCBY Tower, Ste. 
900, Little Rock, AR 72201-3488
Louisiana State Office, 501 Magazine Street, Hale Boggs, 9th Floor, 
New Orleans, LA 70130-3099
New Mexico State Office, 625 Silver Avenue, SW., Ste. 100, 
Albuquerque, NM 87110-6472
Oklahoma State Office, 500 West Main Street, Ste. 40, Oklahoma City, 
OK 73102
San Antonio State Office, Washington Square, 800 Delorosa Street, 
San Antonio, TX 78207-4563
Texas State Office, 801 N. Cherry Street, 6T1, 25th Floor, Fort 
Worth, TX 76102

Great Plains

Kansas/Missouri State Office, Gateway Tower II, 400 State Avenue, 
Rm. 200, Kansas City, KS 66101-2406
Nebraska State Office, 10909 Mill Valley Road, Omaha, NE 68154-3955
St. Louis Area Office, 1222 Spruce Street, 3rd Floor, Suite 1200, 
St. Louis, MO 63103-2836

Rocky Mountain

Colorado State Office, First Interstate Tower North, 633--17th 
Street, Denver, CO 80202-3607

Pacific/Hawaii

California State Office, 450 Golden Gate Avenue, San Francisco, CA 
94102-3448
Hawaii State Office, 500 Ala Moana Blvd., Ste. 3A, Honolulu, HI 
96813-4918
Los Angeles Area Office, AT&T Center, 611 W. 6th Street, Ste. 800, 
Los Angeles, CA 90015-3801
Phoenix Area Office, 400 North 5th Street, Ste. 1600, Phoenix, AZ 
85004

Northwest/Alaska

Alaska State Office, 949 East 36th Avenue, Ste. 401, Anchorage, AK 
99508-4135
Oregon State Office, 400 Southwest 6th Ave., Ste. 700, Portland, OR 
97204-1632
Washington State Office, 909 1st Avenue, Ste. 200, Seattle, WA 
98104-1000

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Notices  

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
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Funding Availability for Universities and Colleges Programs

    As part of HUD's consolidation approach to streamline the NOFA 
process, the Office of University Partnerships (OUP) is announcing the 
following competitive grant programs in this NOFA.
    [sbull] Community Outreach Partnership Centers Program (COPC)
    [sbull] Historically Black Colleges and Universities (HBCU)
    [sbull] Hispanic Serving Institutions Assisting Communities (HSIAC)
    [sbull] Alaska Native/Native Hawaiian Institutions Assisting 
Communities (AN/NHIAC)
    [sbull] Tribal Colleges and Universities Program (TCUP)
    The purpose for combining all of the OUP competitive grant programs 
(excluding the Early Doctoral Student Research Grant Program, the 
Doctoral Dissertation Research Grant Program, the Community Development 
Work Study Program, and the Community Outreach Partnership Center 
(COPC) Community Futures Demonstration) under this NOFA is to make it 
easier for applicants to identify all of the funding opportunities 
available to colleges and universities through OUP. Please read this 
NOFA thoroughly and carefully prior to submitting a proposal, since 
each program in this NOFA has distinct requirements. THERE IS NO 
SEPARATE APPLICATION KIT FOR THESE PROGRAMS.
    Available Funds. Approximately $34.092 million from the Fiscal Year 
(FY) 2003 Consolidated Appropriation Resolution, Division K (plus any 
unexpended and additional funds recaptured from prior appropriations) 
is available for the Office of University Partnership programs as 
follows:
    [sbull] Community Outreach Partnership Centers Programs: $6.955 
million ($1.955 million has been set aside to fund the COPC Community 
Futures Demonstration. A separate NOFA is included in this SuperNOFA 
for this program).
    [sbull] Historically Black Colleges and Universities: $9.935 
million (up to $2 million was earmarked to provide technical 
assistances).
    [sbull] Hispanic Serving Institutions Assisting Communities: $6.458 
million plus approximately $588,000 in previously unexpended FY 2002 
funds.
    [sbull] Alaska Native/Native Hawaiian Institutions Assisting 
Communities: $2.981 million plus approximately $4.0 million in 
previously unexpended funds.
    [sbull] Tribal Colleges and Universities Program: $2.981 million 
plus approximately $194,552 in previously unexpended FY 2002 funds.

Additional Information

    Applicants interested in applying for funds under these grant 
programs should carefully review the General Section of this SuperNOFA 
and the following additional information.

I. Application Due Date, Addresses, Submission Procedures, Further 
Information, and Technical Assistance

    Application Due Date. A completed application package is due on or 
before June 12, 2003 for Historically Black Colleges and Universities 
(HBCU) Program, Hispanic-Serving Institutions Assisting Communities 
(HSIAC) Program, Alaska Native/Native Hawaiian Communities Program (AN/
NHIAC), and Tribal Colleges and Universities Program (TCUP).
    A completed application package is due on or before June 24, 2003 
for the Community Outreach Partnership Centers (COPC) Program.
    Address for Submitting Applications. A completed application 
package consists of one original signed application, three copies, and 
one computer disk (in Word 6.0 or higher) of the application. This 
package must be submitted to the following address: Processing and 
Control Branch, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW., 
Room 7251, Washington, DC, 20410. When submitting an application 
package, also please include the following information on the outside 
of the envelope: (a) the Office of University Partnerships, (b) name of 
the program under which funding is being requested, (c) Room number 
7251, (d) applicant's name and mailing address (including zip code), 
and (e) applicant's telephone number (including area code). Applicants 
applying for funding under the HBCU program must also send a copy of 
their application to the Community Planning and Development (CPD) 
Director in the appropriate HUD Field Office. The address for each 
Field Office is listed in the General Section of this NOFA.
    Mailing and Receipt Procedures. Applicants must refer to the 
General Section of this SuperNOFA for detailed requirements governing 
application submission and receipt.
    For Further Information and Technical Assistance. Applicants may 
contact Armand W. Carriere of HUD's Office of University Partnerships 
at (202) 708-3061, ext. 3181 or Susan Brunson at (202) 708-3061, ext. 
3852. For information regarding the Tribal Colleges and Universities 
Program, please contact Sherone Ivey, Office of Native American 
Programs at (202) 708-0314 ext. 4200. Speech- or hearing-impaired 
individuals may call the Federal Information Relay Service TTY at (800) 
877-8399. Except for the ``800'' number, these numbers are not toll-
free. Applicants may also reach Mr. Carriere via email at Armand--W.--
[email protected], Ms. Brunson at [email protected], and Ms. 
Ivey at Sherone--E.-- [email protected].
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about these programs 
and preparation of applications. For more information about the date 
and time of this broadcast, consult HUD's Website at www.hud.gov.

The Community Outreach Partnership Centers Program (COPC)

I. Program Overview

    Purpose of the Program. To provide funds to two-year colleges, 
four-year colleges, and universities to establish and operate Community 
Outreach Partnership Centers (COPCs) to address the problems of urban 
areas.

II. Amount Allocated, Grant Size and Term, and Performance Period

    The amount allocated, grant size and term, and performance period 
for this program are listed below.
    Amount Allocated. In Fiscal Year 2003, approximately $6.955 million 
was earmarked by the conference report accompanying the FY 2003 
Consolidation Appropriation Resolution, Division K ($1.955 million has 
been set aside to fund architectural and planning schools. There is a 
separate NOFA for this program and it is included in this SuperNOFA).
    Grant Size and Term. HUD will award two kinds of grants under this 
program, New Grants and New Directions Grants.
    (1) New Grants will be awarded to applicants who have never 
received a COPC grant to undertake eligible work (as identified in 
Section III(C) below). The minimum amount a New Grant applicant can 
request is $250,000 and the maximum amount is $400,000 for a three-year 
(36 months) grant performance period.
    (2) New Directions Grants will be awarded to applicants who were 
previous COPC recipients to undertake new directions in their 
activities (as identified in Section III(C) below). The minimum and 
maximum amount a New Direction Grant applicant can request is $150,000 
for a two-year (24 months) grant performance period.

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    HUD will use up to $4 million to fund approximately 10 New Grants 
and up to $1 million to fund approximately 6 New Directions Grants.
    HUD intends to fund at least two eligible COPC applications 
(applications that receive a minimum score of 75 points) that serve 
Colonias, (as defined in the General Section of this SuperNOFA). HUD 
will select the highest-ranking COPC applications that serve Colonias 
among the rated COPC applications. If less than two fundable COPC 
applications that serve Colonias are eligible for award these funds 
will be used to award additional COPC grants.

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. The main purpose of the COPC Program is to 
assist in establishing or carrying out outreach and applied research 
activities that address problems of urban areas; and to encourage 
structural change, both within an institution of higher education and 
in the way the institution relates to its neighbors. Funding under this 
program shall be used to establish and operate local Community Outreach 
Partnership Centers (COPC). The five key concepts that a COPC Program 
should include are:
    (1) Outreach, technical assistance, and applied research;
    (2) Empowerment efforts that engage community-based organizations 
and residents as partners with the institution throughout the life of 
the project and beyond;
    (3) Applied research related to the project's outreach activities;
    (4) Assistance to target communities primarily from the faculty, 
students, and to a limited extent by neighborhood residents and 
community-based organizations funded by the university; and
    (5) Support from the university's senior officials to make the 
program part of the institution's broader effort to meet its urban 
mission.
    (B) Eligible Applicants. Public or private nonprofit institutions 
of higher education granting two- or four-year degrees that are 
accredited by a national or regional accrediting agency recognized by 
the U.S. Department of Education. Consortia of eligible institutions 
may also apply, as long as one institution is designated the lead 
applicant. (Note: Institutions that participated in a COPC grant as a 
member of a consortium are eligible to apply for New Grant if they 
received 25 percent or less of the earlier grant.)
    (C) Eligible Activities. COPC Programs should combine research with 
outreach activities and work with communities and local governments to 
address the multidimensional problems that beset urban areas. 
Appropriate urban problems include, but are not limited to housing, 
economic development, neighborhood revitalization, infrastructure, 
health care, job training, education, crime prevention, planning, the 
environment, and community organizing.
    (1) Research activities must have a clear near-term potential and 
practical application for solving specific, significant urban problems 
in designated communities and neighborhoods, including evaluation of 
the effectiveness of the outreach activities and how they relate to HUD 
programs. Applicants must have the capacity to apply the research 
results directly to the proposed outreach activities outlined in the 
application's work plan. In addition, applicants must work with 
communities and local institutions, including neighborhood groups, 
local governments, and other appropriate community stakeholders, in 
applying these results to real-life urban problems.
    (2) Outreach, technical assistance, and information exchange 
activities designed to address specific urban problems in designated 
communities and neighborhoods served by the grant.
    Examples of outreach activities include, but are not limited to:
    (a) Assistance to communities to improve consolidated housing and 
community development plans and eliminate impediments to the design and 
implementation of such plans;
    (b) Design of community or metropolitan strategies to resolve urban 
problems of communities and neighborhoods;
    (c) Innovative use of funds to provide direct technical expertise 
and assistance to local community groups, residents, and other 
appropriate community stakeholders to resolve local problems such as 
homelessness, housing discrimination, and impediments to fair housing 
choice;
    (d) Technical assistance in business start-up activities for low- 
and moderate-income individuals and organizations, including business 
start-up training and technical expertise and assistance, mentor 
programs, assistance in developing small loan funds, business 
incubators, etc;
    (e) Technical assistance to local public housing authorities on 
welfare-to-work initiatives and physical transformations of public or 
assisted housing, including development of accessible and visitable 
housing;
    (f) Job training and other training projects, such as workshops, 
seminars, and one-on-one and on-the-job training;
    (g) Assistance to communities in eliminating or reducing excessive, 
unnecessary or duplicative regulations, processes or policies that 
restrict the development or rehabilitation of affordable housing (For 
further discussion of Regulatory Barriers see the General Section of 
this SuperNOFA);
    (h) Assistance to communities to improve the design of affordable 
housing to better meet user needs and applying design approaches and 
principles that can improve overall quality and livability. For further 
information and guidance visit the Web site: http://
www.designadvisor.org.
    (i) Regional projects that maximize the interaction of targeted 
inner city distressed neighborhoods with suburban job opportunities 
similar to HUD's Bridges-to-Work or Moving to Opportunity programs. 
(For more information see www.HUDUSER.org.)
    (3) Funds for faculty development including paying for course time 
or summer support to enable faculty members to work with the COPC.
    (4) Funds for stipends or salaries for students (but the program 
cannot cover tuition and fees) while they are working with the COPC.
    (5) Up to 20% of the grant for payments of reasonable grant 
administrative costs related to planning and execution of the project 
(e.g. preparation/submission of HUD reports). A detailed explanation of 
these costs is provided in the OMB circulars that can be accessed at 
the White House Web site at: http://www.whitehouse.gov/omb/circulars/
index.html.
    (6) Activities to carry out the ``Program Requirements'' as defined 
in this NOFA. These activities may include leases for office space in 
which to house the Community Outreach Partnership Center, under the 
following conditions:
    (a) The lease must be for existing facilities not requiring 
rehabilitation or construction;
    (b) No repairs or renovations of the property may be undertaken 
with federal funds; and
    (c) Properties in the Coastal Barrier Resource System designated 
under the Coastal Barrier Resources Act (16 U.S.C. 3501) cannot be 
leased with federal funds.
    (7) Components of the program may address metropolitan or regional 
strategies. Applicants must clearly demonstrate how:
    (a) Strategies are directly related to what the targeted 
neighborhoods and neighborhood-based organizations have decided is 
needed; and

[[Page 21107]]

    (b) Neighborhoods and neighborhood organizations are involved in 
the development and implementation of the metropolitan or regional 
strategies.
    (D) Ineligible Activities. Activities ineligible for funding under 
this program include, but are not limited to the following:
    (1) Research activities that have no clear and immediate practical 
application for solving urban problems or do not address specific 
problems in designated communities and neighborhoods or have any 
specific link to HUD programs.
    (2) Any type of construction, rehabilitation, or other physical 
development costs.
    (3) Costs used for routine operations and day-to-day administration 
of institutions of higher education, local governments or neighborhood 
groups.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, applicants must meet the following program 
requirements:
    (1) All funds awarded to New Grant applicants must be spent over a 
three-year (36 months) grant performance period. All funds awarded to 
New Direction Grants applicants must be spent over a two-year (24 
months) grant performance period.
    (2) Applicants are required to meet the following match 
requirements:
    (a) New Grant applicants match requirements:
    (1) Research Activities. 50% of the total project costs of 
establishing and operating research activities.
    (2) Outreach Activities. 25% of the total project costs of 
establishing and operating outreach activities.
    (b) New Directions Grant applicants match requirements:
    (1) Research Activities. 60% of the total project costs of 
establishing and operating research activities.
    (2) Outreach Activities. 35% of the total project costs of 
establishing and operating outreach activities.
    For each match, cash or in-kind contributions to the program, 
applicants must submit a signed letter of commitment (Further detailed 
information is outlined in this NOFA in Section V. Application 
Selection Process, ``Factor 4: Leveraging Resources'' for this 
program). Applicants may not count as match any costs that would be 
ineligible for funding under the program (e.g., housing 
rehabilitation).
    In previous competitions, some applicants incorrectly based their 
match calculations on the federal grant amount only. An applicant's 
match is evaluated as percentage of the total cost of establishing and 
operating research and outreach activities, not just the federal grant 
amount. Please remember to base the calculation on the TOTAL AMOUNT.
    (3) Employ the research and outreach resources of the institution 
of higher education to solve specific urban problems identified by 
communities served by the Center;
    (4) Establish outreach activities in areas identified in the 
application as the communities to be served;
    (5) Establish a community advisory committee comprised of 
representatives of local institutions and residents of the communities 
to be served to assist in identifying local needs and advise on the 
development and implementation of strategies to address those issues;
    (6) Coordinate outreach activities in communities to be served by 
the Center;
    (7) Facilitate public service projects in the communities served by 
the Center;
    (8) Act as a clearinghouse for dissemination of information;
    (9) Develop instructional programs, convene conferences, and 
provide training for local community leaders, when appropriate;
    (10) Exchange information with other Centers. The clearinghouse 
function in Section IV(8) above refers to a local or regional 
clearinghouse for dissemination of information and is separate and 
distinct from the functions in (10) above, which relate to the 
provision of information to the University Partnerships Clearinghouse, 
which is the national clearinghouse for the program; and
    (11) Grant funds will pay for activities conducted directly, rather 
than passing funds to other entities (In order for an application to be 
competitive, no more than 25 percent of the grant funds should be 
passed to other entities).

V. Application Selection Process

    Two types of reviews will be conducted:
    (1) A threshold review to determine an application's eligibility; 
and
    (2) A technical review for all applications that pass the threshold 
review to rate and rank the application based on the ``Factors for 
Award'' rating factors listed in Section V(B) below.
    Only those applications that pass the threshold review will receive 
a technical review and be rated and ranked.

(A) Threshold Requirements For Funding Consideration

    All applicants must be in compliance with the threshold 
requirements as defined in the General Section of this SuperNOFA and 
the requirements listed below to be evaluated, rated, and ranked. 
Applications that do not meet these requirements will be considered 
ineligible for funding and will be disqualified:
    There will be two separate competitions, one for New Grants 
applicants and one for New Direction Grant applicants. For each type of 
grant applicants will be rated, ranked, and selected separately.
    (1) The applicant is eligible as referenced in Section III, 
``Program Description, Eligible Applicants; Eligible Activities in this 
NOFA''.
    (2) Applicants applying for New Grants may not request less than 
$250,000 or exceed $400,000. Applicants applying for New Direction 
Grants may not request less or exceed $150,000.
    (3) Applicants must meet the program's statutory match requirement 
(the requirement is defined in Section IV, ``Program Requirements'').
    (4) New Grant applications must be multifaceted, address three or 
more urban problems, and propose at least one distinct activity to 
address each separate urban problem. Single purpose applications are 
not eligible.
    (5) New Direction Grant applications are required to address two 
urban problems and undertake at least one activity for each of these 
problems. Applicants must also demonstrate that the proposed activities 
either implement new eligible projects in the current target 
neighborhood(s) or implement eligible projects in a new target 
neighborhood(s). Single purpose applications are not eligible.
    (6) New Direction Grant applicants must have drawn down at least 
75% from any previous COPC award two weeks prior to the program's 
application due date to be eligible to apply and receive a New 
Directions Grant.
    (7) Applicants who were a member of a consortium and received more 
than 25 percent of the earlier funding are not eligible to apply for a 
New Grant. However applicants may submit an application for a New 
Direction Grant (Applicants may submit an application individually or 
as part of the old consortium).
    (8) Only one New Grant application will be permitted from an 
institution. However different campuses of the same university system 
are eligible to apply, even if one campus has already received COPC 
funding if they have an administrative and budgeting structure 
independent of other campuses in the system.

[[Page 21108]]

    (9) Applicants may be part of only one consortium or submit only 
one application or all applications will be disqualified. HUD will hold 
the applicant responsible for ensuring that neither the applicant nor 
any part of their institution, including specific faculty, participate 
in more than one application.
    (10) Programs must operate in an urban area. The statute creating 
COPC is very specific that programs address the problems of urban 
areas. HUD uses the Census definition of an urban area: a single 
geographic place (e.g., a city, town, or village, but not a county) 
with a population of 2,500 or more. Applicants cannot meet this test by 
aggregating several places smaller than the population threshold in 
order to meet this requirement.
    (11) In order to ensure that the primary focus of the proposed 
project is on outreach, there is a cap on research costs that can be 
budgeted for this program. No more than 25 percent of the total project 
costs (federal share plus match) can be spent on research activities. 
However, applicants are not required to undertake any research as part 
of their project and may apply for a project that is totally outreach 
focused.

(B) Factors for Award Used to Evaluate and Rate Applications

    The factors for evaluating, rating, and ranking an application and 
the maximum points for each factor are listed below. Unless otherwise 
noted, New Grant applications and New Directions Grant applications 
will receive the same number of points on a given factor. Applications 
must receive a minimum of 75 out of the total possible points to be 
considered for funding. The maximum number of points available under 
this program is 102. This includes the two RC/EZ/EC bonus points as 
described in the General Section of this SuperNOFA.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (15 Points)

    This factor addresses the extent to which the applicant has the 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner. In rating this factor HUD will 
consider the extent to which the proposal demonstrates:
    (1) Knowledge and Experience (15 Points) For New Grant Applicants. 
(7 Points) For New Direction Grant Applicants.
    (a) The knowledge and experience of the overall proposed project 
director and staff, including the day-to-day program manager, 
consultants, and contractors in planning and managing the kind of 
programs for which funding is being requested. Experience will be 
judged in terms of recent, relevant, and successful knowledge and 
skills of the staff to undertake eligible program activities. HUD will 
consider experience within the last 5 years to be recent; experience 
pertaining to the specific activities being proposed to be relevant; 
and experience producing specific accomplishments to be successful. The 
more recent and substantial the experience of the staff, particularly 
the institution's own staff who will work on the project have in 
successfully conducting and completing similar activities, the higher 
the number of points an applicant can receive for this rating factor. 
The following categories will be evaluated:
    (1) Undertaking research activities in specific communities that 
have a clear near-term potential for practical application to 
significant urban issues;
    (2) Undertaking outreach activities in specific communities to 
solve or ameliorate significant urban issues;
    (3) Undertaking projects with community-based organizations or 
local governments; and
    (4) Providing leadership in solving community problems and making 
national contributions to solving long-term and immediate urban 
problems.
    (b) Past Performance (8 points). For New Directions Grants only. 
This subfactor will evaluate the extent to which an applicant has 
performed successfully under a previous COPC grant(s), as measured by:
    (a) Achievement of specific measurable outcome objectives 
consistent with the timeline in the awarded grant proposal. Please 
provide a detailed list outlining those achievements as they related to 
the approved timeline in the awarded grant;
    (b) Leveraging of funding consistent with or exceeding the funds 
originally proposed to be leveraged for that project. In addressing 
leveraging provide information that compares the proposed leveraged 
funds and resources with what was actually leveraged; and
    (c) Full points will be awarded for performance that met the goals 
and objectives as outlined in the awarded grant proposal.

Rating Factor 2: Need/Extent of the Problem (10 Points)

    This factor addresses the extent to which there is a need for 
funding the proposed program activities and an indication of the 
urgency of meeting the need in the target area. In evaluating this 
factor, the proposal will be rated on the extent to which the level of 
need for the proposed activities and the importance of meeting the need 
are documented.
    Applicants should use statistics and analyses contained in at least 
one or more current data sources that are sound and reliable. The data 
provided must be current. In rating this factor, HUD will consider data 
collected within the last five years to be current. To the extent that 
the targeted community's Five (5) Year Consolidated Plan and Analysis 
of Impediments to Fair Housing Choice (AI) identify the level of the 
problem and the urgency in meeting the need, applicants should include 
references to these documents in the response.
    If the proposed activities are not covered under the scope of the 
Consolidated Plan and Analysis of Impediments to Fair Housing Choice 
(AI), indicate such in the proposal and use other sound data sources to 
identify the level of need and the urgency in meeting the need. Other 
reliable sources of data include, but are not limited to, Census 
reports, HUD Continuum of Care gap analysis and its E-Map (http://
www.hud.gov/emaps), law enforcement agency crime reports, Public 
Housing Authorities' Comprehensive Plan, community needs analyses such 
as provided by the United Way, the applicant's institution, and other 
sound and reliable appropriate sources. Needs in terms of fulfilling 
court orders or consent decrees, settlements, conciliation agreements, 
and voluntary compliance agreements may also be addressed.
    The data used should be specific to the area where the proposed 
activities will be carried out. Needs should be documented as they 
apply to the area where the activities will be targeted, rather than 
the entire locality or state. Remember the statute creating COPC is 
very specific that the program addresses problems of an urban area: A 
single geographic place (e.g. a city, town, or village, but not a 
county) with a population of 2,500 or more.

Rating Factor 3: Soundness of Approach (55 Points)

    This factor addresses the quality and cost-effectiveness of the 
proposed work plan. There must be a clear relationship between the 
proposed activities, community needs, and purpose of the program 
funding for an applicant to receive points for this factor. In 
addition, HUD will also consider the extent to which the budget is 
consistent with the Work Plan and the dollars indicated on the HUD 424 
form.

[[Page 21109]]

    This factor will be evaluated on the extent to which the proposed 
work plan will:
    (1) (10 points). Identify the specific services or activities to be 
performed. (Note applicants are not required to undertake research as 
part of the grant.) In reviewing this subfactor, HUD will consider the 
extent to which:
    (a) There is a clear research agenda;
    (i) With identifiable research projects and outcomes (e.g., 
reports, surveys, etc.)
    (ii) That identifies each task and who will be responsible for it;
    (iii) Which is tied to the outreach agenda (e.g., if an applicant 
proposed to study the extent of housing abandonment in a neighborhood 
and then design a plan for reusing this housing, this demonstrates a 
link between the proposed research and outreach strategies);
    (iv) Which does not duplicate research by the institution or others 
for the target area previously completed or currently underway. If 
other complimentary research is underway, describe how the proposed 
research agenda would complement it; and
    (b) There is a clear outreach agenda:
    (i) With identifiable outreach projects;
    (ii) That identifies each task and who will be responsible for it;
    (iii) That involves the institution as a whole (i.e., many academic 
disciplines and administrative offices);
    (iv) That provides for on-site or frequent presence in the target 
area; and
    (v) That does not duplicate outreach activities by the institution 
or others for the target area previously completed or currently 
underway.
    (c) For research and outreach activities, applicant should briefly 
summarize the potential for their work to improve the performance of 
HUD programs, such as citizen participation requirements and other 
features of the Consolidated Plan.
    (2) (7 Points). Involve the communities to be served in a 
partnership for the planning and implementation of the proposed program 
activities. In reviewing this subfactor, HUD will look at the extent to 
which:
    (a) One or more Community Advisory Committees have been or will be 
formed that represent the communities' diversity (including businesses, 
community groups, residents, and others) to be served to develop and 
implement strategies to address the needs identified in Factor 2. In 
addressing this subfactor, applicants must demonstrate by providing a 
list that such a committee(s) has already been formed and what groups 
they represent or that commitments have been secured from the 
appropriate persons to serve on the committee(s), rather than just 
describing generally the types of people whose involvement will be 
sought.
    (b) A wide range of neighborhood organizations and local government 
entities has been involved in the identification of the proposed 
research and outreach activities.
    (c) The committee and partners will play an active role in all 
stages of the project and will not serve as merely advisors or 
monitors.
    (d) The outreach agenda includes training projects for local 
community leaders, for example, to increase their capacity to direct 
their organizations or undertake various kinds of community development 
projects.
    (3) (6 Points). Help solve or address an urgent problem as 
identified in Rating Factor 2 and will achieve the purposes of the 
program within the grant period. In reviewing this subfactor, HUD will 
look at the extent to which:
    (a) Specific time phased and measurable objectives are identified 
to be accomplished; the proposed short and long term program objectives 
to be achieved as a result of the proposed activities; the tangible and 
measurable impact the program will have on the community in general; 
the target area or population in particular including affirmatively 
furthering fair housing for classes protected under the Fair Housing 
Act; and the relationship the proposed activities to other ongoing or 
proposed efforts to improve the economic, social or living environment 
in the impact area; and
    (b) The activities proposed are responsive to the pressing and 
urgent needs, as identified in the documents described in Factor 2.
    (4) (4 Points) Potentially yield innovative strategies or ``best 
practices'' that can be replicated and disseminated to other 
organizations, including nonprofit organizations, state and local 
governments. In reviewing this subfactor, HUD will assess the 
applicant's demonstrated ability to disseminate results of research and 
outreach activities to other COPCs and communities. HUD will evaluate 
an applicant's past experience and the scope and quality of the plan to 
disseminate information on COPC results, strategies, and lessons 
learned through such means as conferences, cross-site technical 
assistance, publications, etc. The more proactive the plan for 
providing information to a wide ranges of audiences, the higher the 
number of points an applicant will receive.
    (5) (5 Points) Affirmatively Further Fair Housing. This factor will 
evaluate the extent to which an applicant proposes to undertake 
activities designed to affirmatively further fair housing, for example:
    (a) Working with other entities in the community to overcome 
impediments to fair housing, such as discrimination in the sale or 
rental of housing or in advertising, provision of brokerage services, 
or lending;
    (b) Promoting fair housing choice through the expansion of 
homeownership opportunities and improved quality of services for 
minorities, families with children, and persons with disabilities; or
    (c) Providing housing mobility counseling services.
    (6) (6 Points) HUD Policy Priorities. HUD encourages applicants to 
undertake specific activities that will assist the Department in 
implementing its policy priorities and which help the Department 
achieve its goals and objectives in FY 2004, when the majority of grant 
recipients will be reporting programmatic results and achievements. In 
addressing this factor, HUD will evaluate the extent to which a program 
will further and support HUD's priorities. The quality of the responses 
provided to one or more of HUD's priorities will determine the score an 
applicant can receive. For each policy priority addressed an applicant 
will receive one point. Applicants cannot receive more than six points. 
For the full list and explanation of each policy priority, please refer 
to the General Section of this SuperNOFA.
    (7) (12 Points) For New Grant Applicants (7 Points) For New 
Directions Grant Applicants. Result in the COPC function and activities 
becoming part of the urban mission of the institution and being funded 
in the future by sources other than HUD. The rating for this subfactor 
will vary depending on whether the application is for a New Grant or a 
New Directions Grant.
    In reviewing this subfactor for a New Grant, HUD will evaluate the 
extent to which the applicant addresses each of the categories below:
    (a) COPC activities relate to the institution's urban mission; 
demonstrates support and involvement of the institution's executive 
leadership (e.g. department chairs, deans, etc.); are linked by a 
formal organizational structure to other units related to outreach and 
community partnerships; are reflected in budget and planning documents 
of the university; are part of

[[Page 21110]]

a climate that rewards faculty work on these activities through 
promotion and tenure policies; benefit students because they are part 
of a service learning program or professional training at the 
institution (rather than just volunteer activities); and are reflected 
in the institution's curriculum. HUD will look at the institution's 
commitment to faculty and staff continuing work in COPC neighborhoods 
or replicating successes in other neighborhoods and to the long term 
commitment (e.g. three years after the start of the COPC) of hard 
dollars to COPC work. HUD will consider the extent to which the 
proposed activities are appropriate for an institution of higher 
education and are tied to the institution's teaching or research 
mission. In addition, HUD will consider the extent to which the 
faculty, staff and students from across many disciplines are involved 
in COPC-like activities as a way of demonstrating the institution's 
commitment to these kinds of activities.
    (b) The institution has received commitments for funding from 
sources outside the university for related COPC-like projects and 
activities in the targeted neighborhood or other distressed 
neighborhoods. Funding sources to be considered include, but are not 
limited to, local governments, neighborhood organizations, private 
businesses, the institution, and foundations.
    In reviewing this subfactor for a New Directions Grant, HUD will 
consider the extent to which the New Directions project will sustain 
the institutional capacity and commitment of the institution to 
undertake outreach activities. HUD will evaluate the following: (a) 
Increases in the number of faculty undertaking this kind of work, (b) 
increases in the number of courses linked to outreach activities and 
the number of students taking these courses, (c) formal changes in 
institutional policies related to support of outreach, and (d) other 
measures of the impact of this work on the institution.
    (8) (5 Points) For New Direction Grants Only. Previous grantees 
have a wealth of knowledge that they can and should be shared with 
other institutions. If an applicant sends a faculty member of its team 
who has been listed in the application to participate in the peer 
review process for New Grants, the applicant will receive 5 points.
    (9) (5 Points) Budget. HUD will consider the extent to which the 
budget presentation is consistent with the Work Plan and the dollars 
indicated on the HUD 424 form. The budget submission should follow the 
narrative statement in this factor and include the following documents:
    (a) HUD 424-C ``Budget Summary for Competitive Grant Programs''. 
This budget form shows the costs for each budget category for the 
program's entire period of performance.
    (b) HUD 424-CB ``Grant Application Detailed Budget''. This budget 
form shows the total budget by year and by line item for the program 
activities to be carried out. This will be a functional budget. Each 
year of the program should be presented separately.
    All budget forms must be completed in full. If an application is 
selected for award, the applicant may be required to provide greater 
specificity to the budget during grant agreement negotiations.
    (b) Budget-Narrative. A narrative explanation of how the applicant 
arrived at the cost estimates, for any line item, including match 
items, over $5,000. For example, a van rental, $150 per month x 36 
months equals $5,400. The proposed cost estimates should be reasonable 
for the work to be performed and consistent with rates established for 
the level of expertise required to perform the work proposed in the 
geographical area. When necessary, quotes from various vendors or 
historical data should be used and included. All direct labor or 
salaries must be supported with mandated city/state pay scales, the 
Davis-Bacon rate, (if applicable) or other documentation. When an 
applicant proposes to use a consultant, the applicant must indicate 
whether there is a formal agreement or written procurement policy. For 
each consultant, please provide the name, if known, hour or daily fee, 
and the estimated time on the project. For equipment applicants must 
provide a list by type and cost for each item and explain how it will 
be used. Applicants using contracts must provide an individual 
description and cost estimate for each contract.
    Indirect costs attributed to a particular project functional 
category should be listed under the category ``Indirect Costs''. 
Indirect costs are allowable only if an applicant has a federally 
approved indirect cost rate. A copy of the institution's negotiated 
indirect cost rate as issued by the cognizant federal agency must be 
attached to the budget sheets when submitting an application.
    Make sure that the amount shown on the HUD 424, the budget forms, 
and on all other required program forms is consistent and the budget 
totals correct. Remember to check addition in totaling the categories 
on the HUD 424-C and HUD 424-CB forms so that all items are included in 
the total. If there is an inconsistency between any of the forms 
required, the HUD 424C form will be used. If upon checking the addition 
HUD finds that an applicant has added incorrectly, the HUD 424-CB will 
be revised accordingly. Please note that this would be considered a 
substantive rather than a technical error. If this correction puts an 
application over the grant maximum, the applicant will not be able to 
correct the amount requested and the application will be disqualified.

Rating Factor 4: Leveraging Resources (10 Points)

    This factor addresses the ability of the applicant to secure 
community resources that can be combined with HUD's grant funds to 
achieve the program purpose. This factor measures the extent to which 
partnerships have been established with other entities to secure 
additional resources to increase the effectiveness of the proposed 
program activities. Resources may include funding or in-kind 
contributions, such as services or equipment, allocated to the 
purpose(s) of the grant being sought. Resources may be provided by 
governmental entities, public or private nonprofit organizations, for-
profit private organizations, or other entities willing to establish 
partnerships. Applicants may also establish partnerships with funding 
recipients in other grant programs to coordinate the use of resources 
in the target area. Please note that the value of the time of 
individuals serving on an applicant program advisory board cannot be 
counted as an in-kind contribution. Applicants may count overhead and 
other institutional costs (e.g., salaries) that the institution has 
waived. In evaluating this factor, HUD will allocate points as follows:
    (1) Five (5 Points) will be awarded for a match that is 50 percent 
over the required match, as described in Section V, Application 
Selection Process. Less points will be assigned depending on the extent 
of the match. Matching funds must be provided unconditionally in order 
to be counted for this subfactor.
    HUD is concerned that applicants should be providing hard dollars 
as part of their matching contributions to enhance the tangible 
resources going into targeted neighborhoods. Thus, while indirect costs 
can count towards meeting the required match, they will not be used in 
calculating match overage. Only direct costs can count in this factor.
    (2) (Up to an additional five (5) points) will be awarded for the 
extent to which applicants document that matching funds are provided 
from eligible sources other than the institution (e.g., funds from the 
city,

[[Page 21111]]

including CDBG, other state or local government agencies, public or 
private organizations, or foundations). Less points will be assigned 
depending on the extent of the outside match. Applicants must provide 
evidence of leveraging/partnerships by including in the application 
package letters of firm commitment, memoranda of understanding, or 
agreements to participate from any entity, including the applicant's 
own institution that will be providing matching funds to the project.
    For each match, cash or in-kind contribution, a letter of 
commitment, memorandum of understanding, or agreement must be provided 
that shows the extent and firmness of the commitment of leveraged funds 
(including any commitment of resources from the applicant's own 
institution) in order for the resources to count in determining points 
under this factor. Resources will not be counted for which there is no 
commitment letter, memorandum of understanding, or agreement, nor 
quantified level of commitment. Letters, memoranda of understanding or 
agreements must be submitted from the provider on the provider's 
letterhead and be included with the application package. The date of 
the letter, memorandum of understanding, or agreement from the CEO of 
the provider organization must be dated no earlier than the date of 
this published SuperNOFA. Applications that do not include evidence of 
leveraging will receive zero (0) points for this Factor and will be 
disqualified.
    A firm commitment letter, memorandum of understanding, or agreement 
must address the following:
    (a) The cash amount contributed or dollar value of the in-kind 
goods and/or services committed (If a dollar amount and use is not 
shown, the source cannot be counted toward the match requirement);
    (b) Specifically indicate how the match is to be used;
    (c) The date the match will be made available and a statement that 
describes the duration of the contribution. If any of the matching 
sources are for more than one year, the commitment letter, memorandum 
of understanding, or agreement must state the number of years, the per 
year commitment, and the total commitment. Without this statement, HUD 
will assume that the commitment is for only one year;
    (d) Any terms and conditions affecting the commitment, other than 
receipt of a HUD Grant; and
    (e) The signature of the appropriate executive officer authorized 
to commit the funds and/or goods and/or services.
    Please remember that only items eligible for funding under this 
program can be counted as a match.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    This factor reflects HUD's goal to embrace high standards of 
ethics, management, and accountability. The factor measures the 
applicant's commitment to assess their performance to achieve the 
program's proposed objectives and goals. Applicants are required to 
develop an effective, quantifiable, outcome oriented evaluation plan 
for measuring performance and determining that objectives and goals 
have been achieved.
    ``Outcomes'' are benefits accruing to institutions of higher 
education and/or communities during or after participation in the COPC 
program. Applicants must clearly identify the outcomes to be measured 
and achieved. Examples of outcomes are increasing business start-up in 
the target community, by a certain percentage, or increasing family 
financial stability (e.g., increasing assets to families and 
communities through the development of incubators).
    In addition, applicants must establish interim benchmarks and 
outputs that lead to the ultimate achievement of outcomes. ``Outputs'' 
are the direct products of the program's activities. Examples of 
outputs are the number of new businesses developed, the number of 
students involved in service learning activities, the number of new 
courses an institution developed that focus on community outreach 
activities, the number of new formed partnerships that aid in community 
capacity building. Outputs should produce outcomes for the program. At 
a minimum an applicant must address the following activities in the 
evaluation plan:
    (a) Short and long term objectives to be achieved;
    (b) Actual accomplishments against anticipated achievements;
    (c) Measurable impacts the grant will have on the community in 
general and the target area or population;
    (d) The impact the grant will have on the long term commitment of 
the University to the faculty and students to provide opportunities to 
reward and continue this type of work; and
    (e) The impact the grant will have on assisting the University to 
obtain additional resources to continue this type of work at the end of 
the funding period of this grant award.
    This information should be provided in a Logic Model format. This 
form and information on how to use can be found in the General Section 
of this SuperNOFA.

The Historically Black Colleges and Universities Program (HBCU)

I. Program Overview

    Purpose of the Program. To assist Historically Black Colleges and 
Universities (HBCU) expand their role and effectiveness in addressing 
community development needs in their localities, including neighborhood 
revitalization, housing, and economic development, principally for 
persons of low- and moderate-income, consistent with the purposes of 
Title I of the Housing and Community Development Act of 1974, as 
amended.

II. Amount Allocated, Grant Size and Term and Performance Period

    Amount Allocated. In Fiscal Year 2003, $9.935 million was earmarked 
by the conference report accompanying the FY 2003 Consolidation 
Appropriation Resolution, Division K (of which up to $2 million was 
earmarked to provide technical assistance).
    Grant Size and Term. HUD will award two kinds of grants under this 
program, Previously Unfunded HBCU Grants and Previously Funded HBCU 
Grants.
    (1) Previously Unfunded HBCU Grants will be awarded to HBCU 
applicants who have never received an HBCU grant. The minimum and 
maximum amount a Previously Unfunded HBCU applicant can request is 
$340,000 for a three-year (36 months) grant performance period.
    (2) Previously Funded HBCU Grants will be awarded to HBCU 
applicants that have received funding under previous HBCU grant 
competitions. The minimum amount a Previously Funded HBCU applicant can 
request is $340,000 and the maximum is $550,000 for a three-year (36 
months) grant performance period.
    In order to ensure that Previously Unfunded HBCU applicants receive 
awards in this competition, approximately $1.4 million will be made 
available to fund Previously Unfunded HBCU applicants and approximately 
$6.6 million will be made available to Previously Funded HBCU 
applicants that have received funding under previous HBCU competitions. 
(See Appendix C of this NOFA for a list of Previously Funded and 
Unfunded HBCUs).

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. The purpose of the HBCU Program is to 
assist HBCUs expand their role and effectiveness in addressing 
community development

[[Page 21112]]

needs in their localities, including neighborhood revitalization, 
housing, and economic development.
    (1) For the purposes of these programs, the term ``locality'' 
includes any city, county, township, parish, village, or other general 
political subdivision of a state, Puerto Rico, or the U.S. Virgin 
Islands where the institution is located.
    (2) If the institution is located in a metropolitan statistical 
area (MSA), as established by the Office of Management and Budget 
(OMB), the locality may be considered to be one or more entities (as 
defined above) within the entire MSA. The nature of the locality for 
each HBCU may differ, therefore, depending on its location.
    (3) A ``target area'' is the locality or the area within the 
locality in which the institution will implement its proposed HUD 
grant.
    (B) Eligible Applicants. HBCUs as determined by the Department of 
Education in 34 CFR 608.2 in accordance with that Department's 
responsibilities under Executive Order 13256, dated February 12, 2002, 
are eligible for funding under this program. Applicants must be 
accredited by a national or regional accrediting agency recognized by 
the U.S. Department of Education.
    (C) Eligible Activities. Each activity proposed for funding must 
meet both a Community Development Block Grant (CDBG) Program national 
objective and the CDBG eligibility requirements. Eligible activities 
that may be funded under this program are those activities eligible for 
CDBG funding. The eligible activities are listed in 24 CFR part 570, 
subpart C, particularly Sec. Sec.  570.201 through 570.206. Each 
activity funded under this program must meet one of the three national 
objectives of the Community Development Block Grant program, which are:
    (a) Benefit to low- or moderate-income persons;
    (b) Aid in the prevention or elimination of slums or blight; or
    (c) Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    Criteria for determining whether an activity addresses one or more 
of these objectives are provided at 24 CFR 570.208.
    Examples of Eligible Activities include, but are not limited to:
    (a) Acquisition of real property;
    (b) Clearance and demolition;
    (c) Rehabilitation of residential structures including lead-based 
paint hazard evaluation and reduction; and encouraging accessible 
design features in accordance with the requirements of section 504 of 
the Rehabilitation Act of 1973;
    (d) Acquisition, construction, reconstruction, rehabilitation, or 
installation of public facilities and improvements, such as water and 
sewer facilities and streets; including lead-based paint hazard 
evaluation and reduction; and encouraging compliance accessible with 
the design and construction requirements of Section 504 of the 
Rehabilitation Act of 1973 and the Fair Housing Act;
    (e) Relocation payments and other assistance for permanently and 
temporarily relocated individuals, families, businesses, nonprofit 
organizations, and farm operations where the assistance is:
    (i) Required under the provisions of 24 CFR 570.606(b) or (c); or
    (ii) Determined by the grantee to be appropriate under the 
provisions of 24 CFR 570.606(d);
    (f) Direct homeownership assistance to low- and moderate-income 
persons, as provided in section 105(a) (25) of the Housing and 
Community Development Act of 1974;
    (g) Special economic development activities described at 24 CFR 
570.203;
    (h) Assistance to facilitate economic development by providing 
technical or financial assistance for the establishment, stabilization, 
and expansion of microenterprises, including minority enterprises;
    (i) Assistance to community-based development organizations (CBDO) 
to carry out a CDBG neighborhood revitalization, community economic 
development, or energy conservation project, in accordance with 24 CFR 
570.204. This could include activities in support of a HUD approved 
local entitlement grantee, CDBG Neighborhood Revitalization Strategy 
(NRS) or HUD approved State CDBG Community Revitalization Strategy 
(CRS);
    (j) Eligible public service activities are those general support 
activities that can help to stabilize a neighborhood and contribute to 
sustainable redevelopment of the area, including but not limited to 
such activities as those concerned with employment, crime prevention, 
child care, health, drug abuse, education, fair housing counseling, 
energy conservation, homebuyer down payment assistance, or recreational 
needs;
    The CDBG Publication entitled ``Community Development Block Grant 
Program Guide to National Objectives and Eligible Activities for 
Entitlement Communities'' describes the regulations, and a copy can be 
obtained from HUD's SuperNOFA Information Center at 1-800-HUD-8929 or 
1-800-HUD-2209 for the hearing-impaired.
    (k) Fair housing services designed to further the fair housing 
objectives of the Fair Housing Act (42 U.S.C. 3601-20) by making all 
persons, without regard to race, color, religion, sex, national origin, 
family status and/or disability aware of the range of housing 
opportunities available to them;
    (l) Payments of reasonable grant administrative costs related to 
planning and execution of the project (e.g. preparation/submission of 
HUD reports). A detailed explanation of these costs are provided in the 
OMB circulars that can be accessed at the White House Web site at: 
http://www.whitehouse.gov/omb/circulars/index.html; and
    (m) Activities Designed to Promote Training and Employment 
Opportunities. HUD urges applicants to consider undertaking activities 
designed to promote opportunities for training and employment of very 
low-income residents in connection with HUD initiatives such as 
``Neighborhood Networks'' (NN) in other federally assisted or insured 
housing and Employment Opportunities for Lower Income Persons in 
connection with Assisted Projects.
    (D) Ineligible Activities. Ineligible CDBG Activities are listed at 
24 CFR 570.207.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, applicants must meet the following 
requirements:
    (1) All funds awarded under these programs must be spent over a 
three-year (36 months) grant performance period.
    (2) Applicants that propose to undertake activities that involve 
the following: acquisition of real property, clearance, demolition, 
rehabilitation of residential structures including lead-based paint 
hazard evaluation, reduction encouraging accessible design features, 
acquisition, construction, reconstruction, rehabilitation, or 
installation of public facilities and improvements are required to 
provide at least one appraisal from a qualified certified appraiser 
other than the institution, of the cost to complete the activities. 
This information must be submitted with the application. Such an entity 
must be involved in the business of housing rehabilitation, 
construction, and/or management.

[[Page 21113]]

    (3) Applicants must ensure that not less than 51% of the aggregated 
expenditures of the grant benefit low- and moderate-income persons 
under the criteria specified in 24 CFR 570.208(a) or 570.208(d)(5) or 
(6).
    (4) Applicants that claim leveraging from any source, including 
their own institution, must provide letters of firm commitment, 
memoranda of understanding, or agreements evidencing the extent and 
firmness of commitment of leveraging from other federal (e.g., 
AmeriCorps Programs), state, local, and/other private sources 
(including the applicant's own resources). These documents must be 
dated no earlier than the date of this published NOFA and follow the 
outline provided in Section V, Application Process, ``Factor 4: 
Leveraging Resources of this NOFA.
    (5) Where grant funds will be used for acquisition, rehabilitation, 
or new construction an applicant must demonstrate site control. Funds 
may be recaptured or deobligated from applicants that cannot 
demonstrate control of a suitable site within one year after the 
initial notification of award.
    (6) Labor Standards. Applicants awarded funds must comply with the 
labor standards (Davis-Bacon) as found at 24 CFR 570.603.

V. Application Selection Process

    Two type of reviews will be conducted:
    (1) A threshold review to determine an applicant's eligibility; and
    (2) A technical review for all applications that pass the threshold 
review to rate and rank the application based on the ``Factors for 
Award'' rating factors listed in Section V (B) below.
    Only those applications that pass the threshold review will receive 
a technical review and be rated and ranked.

(A) Threshold Requirements for Funding Consideration

    All applicants must be in compliance with the threshold 
requirements as defined in the General Section of this SuperNOFA and 
the requirements listed below to be evaluated, rated, and ranked. 
Applications that do not meet these requirements will be considered 
ineligible for funding and will be disqualified:
    (1) The applicant is eligible as referenced in Section III, 
``Program Description, Eligible Applicants; Eligible Activities in this 
NOFA''.
    (2) The minimum and maximum amount Previously Unfunded HBCU 
applicants can request is $340,000. The minimum amount a Previously 
Funded HBCU applicant can request is $340,000 and the maximum is 
$550,000.
    (3) Applicants are bound by the CDBG statutory requirement that no 
more than 15% of the total grant amount is used for public service 
activities that benefit low- and moderate-income persons. Therefore, at 
least 85% of the grant amount must be used for activities qualifying 
under an eligibility category other than public services (as described 
at 24 CFR 570.201(e). If an applicant proposes an activity which 
otherwise is eligible it may not be funded if state or local law 
requires that it be carried out by a governmental entity.
    (4) Institutions with two (2) or more active HBCU grants who have 
drawn down less than 50 percent of the funding for each active grant 
two weeks prior to the program's application due date are ineligible to 
apply for a grant under this NOFA.

(B) Factors for Award Used To Evaluate and Rate Applications

    The factors for evaluating, rating, and ranking an application and 
the maximum points for each factor are listed below. Applications must 
receive a minimum of 75 out of the total possible points to be 
considered for funding. The maximum number of points available under 
this program is 102. This includes the two RC/EZ/EC bonus points as 
described in the General Section of this SuperNOFA.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points)

    This factor addresses the extent to which the institution has the 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner. In rating this factor, HUD will 
consider the extent to which the proposal demonstrates:
    (1) Knowledge and Experience (20 Points) For previously Unfunded 
Applicants (5 Points) For previously Funded Applicants.
    The knowledge and experience of the overall project director and 
staff, including the day-to-day program manager, consultants (including 
technical assistance providers), and contractors in planning and 
managing the kinds of programs for which funding is being requested. 
Experience will be judged in terms of recent, relevant, and successful 
knowledge and skills of the staff to undertake eligible program 
activities. HUD will consider experience within the last 5 years to be 
recent; experience pertaining to specific activities to be relevant; 
and experience producing specific accomplishments to be successful. The 
more recent and substantial the experience of the staff, particularly 
the institution's own staff who will work on the project have in 
successfully conducting and completing similar activities, the higher 
the number of points an applicant can receive for this rating factor. 
The following categories will be evaluated:
    (a) Undertaking specific successful community development projects 
with community-based organizations or local governments; and
    (b) Providing leadership in solving community problems that have a 
direct bearing on the proposed activities.
    (2) Past Performance for Previously Funded Grant Applicants Only 
(15 points).
    This subfactor will evaluate the extent to which an applicant has 
performed successfully under all previously awarded and current 
grant(s) as measured by:
    (a) Achievement of specific measurable outcome objectives 
consistent with the timeline in the grant proposal(s). Provide a 
detailed list outlining those achievements as they relate to the 
approved timeline in the past grant award(s);
    (b) Leveraging of funding consistent with or exceeding the funds 
originally proposed to be leveraged for that project. In addressing 
leveraging, provide information that compares the proposed leveraged 
funds and resources with what was actually leveraged; and
    (c) Full points will be awarded for performance that has met the 
goals and objectives as outlined in the past awarded grant proposal(s).
    To address this subfactor, applicants must submit the HUD 40076-
HBCU ``Response Sheet'' (Preparation Narrative only) for each HBCU 
grant they have received. (This form is located in Appendix C at the 
end of this NOFA.) The form should be complete and detailed.

Rating Factor 2: Need/Extent of the Problem (10 Points)

    This factor addresses the extent to which there is a need for 
funding the proposed program activities and an indication of the 
importance of meeting the need in the target area. In responding to 
this factor, the proposal will be rated on the extent to which the 
level of need for the proposed activities and the importance of meeting 
the need are documented.
    Applicants should use statistics and analyses contained in at least 
one or more current data sources that are sound and reliable. The data 
provided must be current. In rating this factor HUD will consider data 
collected within the last five years to be current. To the

[[Page 21114]]

extent that the targeted community's Five (5) Year Consolidated Plan 
and Analysis of Impediments to Fair Housing Choice (AI) identify the 
level of the problem and the urgency in meeting the need, applicants 
should include references to these documents in the response to this 
factor.
    If the proposed activities are not covered under the scope of the 
Consolidated Plan and Analysis of Impediments to Fair Housing Choice 
(AI), indicate such in the proposal and use other sound data sources to 
identify the level of need and the urgency in meeting the need. Other 
reliable sources include, but are not limited to Census reports, HUD 
Continuum of Care gap analysis and its E-MAP (http://www.hud.gov/
emaps), law enforcement agency crime reports, Public Housing 
Authorities' Comprehensive Plans, community needs analyses such as 
provided by the United Way, the applicant's institution, and other 
sound and reliable appropriate sources. Needs in terms of fulfilling 
court orders or consent decrees, settlements, conciliation agreements, 
and voluntary compliance agreements may also be addressed.
    The data used should be specific to the area where the proposed 
activities will be carried out. Needs should be documented as they 
apply to the area where the activities will be targeted, rather than 
the entire locality or state, unless the target area is the entire 
locality or state.

Rating Factor 3: Soundness of Approach (50 Points)

    This factor addresses the quality and cost effectiveness of the 
proposed work plan, the commitment of the institution to sustain the 
proposed activities, and actions regarding HUD's priorities, goals and 
objectives, and Affirmatively Furthering Fair Housing. In addition, HUD 
will also consider the extent to which the budget is consistent with 
the Work Plan and the dollars indicated on the HUD 424 form.
    This factor will be evaluated based on the extent to which the 
proposed work plan will:
    (1) Quality of the Work Plan (35 Points)
    (a) (10 Points) Work Plan Impact. Describe how the proposed 
activities will:
    (i) Expand the role of the institution in its community;
    (ii) Alleviate and/or fulfill the needs identified in Factor 2;
    (iii) Relate to and not duplicate other activities in the target 
area. Duplicative effort will be acceptable only if an applicant can 
demonstrate through documentation that there is a population in need 
that is not being served;
    (iv) Involve and empower citizens of the target area in all stages 
of the proposed project (particularly through a committee that is 
representative of the target community to guide the project); and
    (v) Be disseminated to a wide variety of audiences, both academic 
and community-based, using a wide variety of media, including print and 
Internet technology.
    (b) (20 Points). Specific Services and/or Activities. The work plan 
must incorporate all proposed activities. HUD will consider the 
feasibility of success of the program, measurable objectives, and how 
timely products will be delivered.
    Describe each proposed activity and the tasks required to implement 
and complete the activities. Also for each activity describe:
    (i) Which CDBG national objective is being met and how;
    (ii) The sequence, duration, and the products to be delivered in 6 
month intervals, up to thirty-six (36) months. Indicate which staff 
member, as described in Factor 1, will be responsible and accountable 
for the deliverables; and
    (iii) Measurable objectives to be accomplished, e.g., the number of 
persons to be trained and employed; houses to be built (pursuant to 24 
CFR 570.207) or rehabilitated; minority owned businesses to be started.
    (c) (5 Points) Involvement of the Faculty and Students. The extent 
to which the applicant proposes to integrate the institution's students 
and faculty into proposed project activities.
    (2) (5 Points) HUD Policy Priorities. HUD encourages applicants to 
undertake specific activities that will assist the Department in 
implementing its policy priorities and which help the Department 
achieve its goals and objectives in FY 2004, when the majority of grant 
recipients will be reporting programmatic results and achievements. In 
addressing this factor, HUD will evaluate the extent to which a program 
will further and support HUD's priorities. The quality of the responses 
provided to one or more of HUD's priorities will determine the score an 
applicant can receive. For each policy priority addressed an applicant 
will receive one point. Applicants cannot receive more than five 
points. For the full list and explanation of each policy priority, 
please refer to the General Section of this SuperNOFA.
    (3) (5 Points) Affirmatively Furthering Fair Housing. This 
subfactor will be evaluated on the extent to which an applicant 
proposes to undertake activities designed to affirmatively further fair 
housing, for example:
    (a) Working with other entities in the community to overcome 
impediments to fair housing, such as discrimination in the sale or 
rental of housing or in advertising, provision of brokerage services or 
lending;
    (b) Promoting fair housing choice through the expansion of 
homeownership opportunities and improved quality of services for 
minorities, families with children, and persons with disabilities; or
    (c) Providing housing mobility counseling services.
    (4) (5 Points) Budget. HUD will consider the extent to which the 
budget presentation is consistent with the Work Plan and the dollars 
indicated on the HUD 424 Form. The budget submission should follow the 
narrative statement in this factor and include the following documents:
    (a) HUD 424-C ``Budget Summary for Competitive Grant Programs''. 
This budget form shows the costs for each budget category for the 
program's entire period of performance.
    (b) HUD 424-CB ``Grant Application Detailed Budget''. This budget 
form must show the total budget by year and by line item for the 
program activities to be carried out. This will be a functional budget. 
Each year of the program should be presented separately.
    All budget forms must be completed in full. If an application is 
selected for award, the applicant may be required to provide greater 
specificity to the budget during grant agreement negotiations.
    (c) Budget-Narrative. A narrative explanation of how the applicant 
arrived at the cost estimates, for any line item, including match 
items, over $5,000. For example, a van rental, $150 per month x 36 
months equals $5,400. The proposed cost estimates should be reasonable 
for the work to be performed and consistent with rates established for 
the level of expertise required to perform the work proposed in the 
geographical area. When necessary, quotes from various vendors or 
historical data should be used and included. All direct labor or 
salaries must be supported with mandated city/state pay scales, Davis-
Bacon wage rates (if applicable) or other documentation. When an 
applicant proposes to use a consultant, the applicant must indicate 
whether there is a formal agreement or written procurement policy. For 
each consultant, please provide the name, if known, hour or daily fee, 
and the estimated time on the project. If applicants propose to 
undertake: rehabilitation of residential, commercial

[[Page 21115]]

and/or industrial structures; and/or acquisition, construction, or 
installation of public facilities and improvements, applicants must 
submit one appraisal from a qualified certified appraiser other than 
the institution. Such an entity must be involved in the business of 
housing rehabilitation, construction and/or management. Guidance for 
securing these estimates can be obtained from the local HUD Office of 
Community Planning and Development. Equipment and contracts cannot be 
presented as a total estimated figure. For equipment applicants must 
provide a list by type and cost for each item and explain how it will 
be used. Applicants using contracts must provide an individual 
description and cost estimate for each contract.
    Indirect costs attributed to a particular project functional 
category should be listed as ``Indirect Costs'' under that category. 
Indirect costs are allowable only if an applicant has a federally 
approved indirect cost rate. A copy of the institution's negotiated 
indirect cost rate as issued by the cognizant federal agency must be 
attached to the budget sheets when submitting an application.
    Make sure that the amount shown on the HUD 424, the budget forms, 
and on all other required program forms is consistent and the budget 
totals correct. Remember to check addition in totaling the categories 
on the HUD 424-C and HUD 424-CB form so that all items are included in 
the total. If there is an inconsistency between any of the forms 
required, the HUD 424-C form will be used. If upon checking the 
addition HUD finds that an applicant has added incorrectly, the HUD 
424-CB will be revised accordingly. Please note that this would be 
considered a substantive rather than a technical error. If this 
correction puts an application over the grant maximum, the applicant 
will not be able to correct the amount requested and the application 
will be disqualified.

Rating Factor 4: Leveraging Resources (10 Points)

    This factor addresses the ability of the applicant to secure 
community resources that can be combined with HUD's grant funds to 
achieve the program's purpose.
    In evaluating this factor, HUD will consider the extent to which 
the applicant established partnerships with other entities to secure 
additional resources to increase the effectiveness of the proposed 
activities. Resources may include funding or in-kind contributions, 
such as services or equipment, allocated to the purpose(s) of the 
grant. Resources may be provided by governmental entities, public or 
private nonprofit organizations, for-profit private organizations, or 
other entities. Applicants may also establish partnerships with other 
program funding recipients to coordinate the use of resources in the 
target area. Please note that the value of the time of individuals 
serving on the program's advisory board cannot be counted as an in-kind 
contribution. Overhead and other institutional costs (e.g., salaries) 
that the institution has waived may be counted. However, higher points 
will be awarded if an applicant secures leveraged resources from 
sources outside the institution. Examples of potential sources for 
outside assistance:
    [sbull] State and local governments
    [sbull] Housing Authorities
    [sbull] Local or national nonprofit organizations
    [sbull] Banks and/or private businesses
    [sbull] Foundations
    [sbull] Faith-based and other community based organizations.
    For each match, cash or in-kind contribution to the program a 
letter of commitment, memorandum of understanding, or agreement must be 
provided that shows the extent and firmness of the commitment of 
leveraged funds (including any commitment of resources from the 
applicant's own institution) in order for these resources to count in 
determining points under this factor. Resources will not be counted for 
which there is no commitment letter, memorandum of understanding, or 
agreement, nor quantified level of commitment. Letters, memoranda of 
understanding, or agreements must be submitted from the provider on the 
provider's letterhead and be included with the application package. The 
date of the letter, memorandum of understanding, or agreement from the 
CEO of the provider organization must be dated no earlier than the date 
of this published SuperNOFA. Applications that do not include evidence 
of leveraging will receive zero (0) points for this Factor.
    A firm commitment letter, memorandum of understanding, or agreement 
must address the following:
    (a) The cash amount contributed or dollar value of the in-kind 
goods and/or services committed (If a dollar amount and use is not 
shown, the source cannot be counted towards the match requirement.);
    (b) Specifically indicate how the match is to be used;
    (c) The date the match will be made available and a statement that 
describes the duration of the contribution. If any of the matching 
sources are for more than one year, the commitment letter, memoranda of 
understanding, or agreement must state the number of years, the per 
year commitment, and the total commitment. Without this statement, HUD 
will assume that the commitment is for only one year;
    (d) Any terms and conditions affecting the commitment, other than 
receipt of a HUD Grant; and
    (e) The signature of the appropriate executive officer authorized 
to commit the funds and/or goods and/or services.
    Please remember that only items eligible for funding under this 
program can be counted as a match.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    This factor reflects HUD's goal to embrace high standards of 
ethics, management, and accountability. The factor measures the 
applicant's commitment to assess their performance to achieve the 
program's proposed objectives and goals. Applicants are required to 
develop an effective, quantifiable, outcome oriented evaluation plan 
for measuring performance and determining that objectives and goals 
have been achieved.
    ``Outcomes'' are benefits accruing to institutions of higher 
education and/or communities during or after participation in the HBCU 
program. Applicants must clearly identify the outcomes to be measured 
and achieved. Examples of outcomes are increasing community development 
in the target community, by a certain percentage, or increasing family 
stability through the creation of affordable housing opportunities 
(e.g., increasing assets to families and communities through the 
development of affordable community housing).
    In addition, applicants must establish interim benchmarks and 
outputs that lead to the ultimate achievement of outcomes. ``Outputs'' 
are the direct products of the program's activities. Examples of 
outputs are the number of new affordable housing units, the number of 
homes that have been renovated, and the number of community facilities 
that have been constructed or rehabilitated. Outputs should produce 
outcomes for the program. At a minimum, an applicant must address the 
following activities in the evaluation plan:
    (a) Short and long term objectives to be achieved;
    (b) Actual accomplishments against anticipated achievements;
    (c) Measurable impacts the grant will have on the community in 
general and the target area or population;
    (d) The impact the grant will have on the long term commitment of 
the

[[Page 21116]]

University to the faculty and students to provide opportunities to 
reward and continue this type of work; and
    (e) The impact the grant will have on assisting the university to 
obtain additional resources to continue this type of work at the end of 
the funding period of this grant award.
    This information should be provided in a Logic Model format. This 
form and information on how to use can be found in the General Section 
of this SuperNOFA.

The Hispanic-Serving Institutions Assisting Communities Program (HSIAC)

I. Program Overview

    Purpose of the Program. To assist Hispanic-serving Institutions 
(HSIs) expand their role and effectiveness in addressing community 
development needs in their localities, including neighborhood 
revitalization, housing, and economic development, consistent with the 
purposes of Title I of the Housing and Community Development Act of 
1974, as amended.

II. Amount Allocated, Grant Size and Term and Performance Period

    Amount Allocated. In Fiscal Year 2003, $6.458 million was earmarked 
by the conference report accompanying the FY 2003 Consolidation 
Appropriation Resolution, Division K plus approximately $588,000 in 
previously unexpended FY 2002 funds.
    Grant Size and Term. The maximum amount an HSIAC applicant can 
request for award is $600,000 for a three-year (36 months) grant 
performance period.
    HUD intends to fund at least two eligible HSIAC applications 
(applications that receive a minimum score of 75 points) that serve 
Colonias (as defined in the General Section of the SuperNOFA). HUD will 
select the highest-ranking HSIAC applications that serve Colonias among 
the rated HSIAC applications. If less than two fundable HSIAC 
applications that serve Colonias are eligible for award these funds 
will be used to award additional HSIAC grants.

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    The purpose of the HSIAC Program is to assist HSI's expand their 
role and effectiveness in addressing community development needs in 
their localities, including neighborhood revitalization, housing, and 
economic development, principally for persons of low- and moderate-
income.
    (1) For the purposes of these programs, the term ``locality'' 
includes any city, county, township, parish, village, or other general 
political subdivision of a state, Puerto Rico, or the U.S. Virgin 
Islands where the institution is located.
    (2) A ``target area'' is the locality or the area within the 
locality in which the institution will implement its proposed HUD 
grant.

(B) Eligible Applicants

    Nonprofit Hispanic-serving institutions of higher education that 
meet the definition of an HSI established in Title V of the 1998 
Amendments to the Higher Education Act of 1965 (Pub. L. 105-244; 
enacted October 7, 1998). In order to meet this definition, at least 25 
percent of the full-time undergraduate students enrolled in an 
institution must be Hispanic and not less than 50 percent of these 
Hispanic students must be low-income individuals. Institutions are not 
required to be on the list of eligible HSIs prepared by the U.S. 
Department of Education. However, an applicant that is not on the list 
is required to state in the application that the institution meets the 
U.S. Department of Education's statutory definition of an HSI.

(C) Eligible Activities

    Each activity proposed for funding must meet both a Community 
Development Block Grant (CDBG) Program national objective and the CDBG 
eligibility requirements. Eligible activities that may be funded under 
this program are those activities eligible for CDBG funding. The 
eligible activities are listed in 24 CFR part 570, subpart C, 
particularly Sec. Sec.  570.201 through 570.206. Each activity funded 
under this program must meet one of the three national objectives of 
the Community Development Block Grant program, which are:
    (a) Benefit to low- or moderate-income persons;
    (b) Aid in the prevention or elimination of slums or blight; or
    (c) Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    Criteria for determining whether an activity addresses one or more 
of these objectives are provided at 24 CFR 570.208.
    Examples of Eligible Activities include, but are not limited to:
    (a) Acquisition of real property;
    (b) Clearance and demolition;
    (c) Rehabilitation of residential structures including lead-based 
paint hazard evaluation and reduction; and encouraging accessible 
design features in accordance with the requirements of section 504 of 
the Rehabilitation Act of 1973;
    (d) Acquisition, construction, reconstruction, rehabilitation, or 
installation of public facilities and improvements, such as water and 
sewer facilities and streets; including lead-based paint hazard 
evaluation and reduction; and encouraging compliance accessible with 
the design and construction requirements of Section 504 of the 
Rehabilitation Act of 1973 and the Fair Housing Act;
    (e) Relocation payments and other assistance for permanently and 
temporarily relocated individuals, families, businesses, nonprofit 
organizations, and farm operations where the assistance is:
    (i) Required under the provisions of 24 CFR 570.606(b) or (c); or
    (ii) Determined by the grantee to be appropriate under the 
provisions of 24 CFR 570.606(d);
    (f) Direct homeownership assistance to low- and moderate-income 
persons, as provided in section 105(a) (25) of the Housing and 
Community Development Act of 1974;
    (g) Special economic development activities described at 24 CFR 
570.203;
    (h) Assistance to facilitate economic development by providing 
technical or financial assistance for the establishment, stabilization, 
and expansion of microenterprises, including minority enterprises;
    (i) Assistance to community-based development organizations (CBDO) 
to carry out a CDBG neighborhood revitalization, community economic 
development, or energy conservation project, in accordance with 24 CFR 
570.204. This could include activities in support of a HUD approved 
local entitlement grantee CDBG Neighborhood Revitalization Strategy 
(NRS) or HUD approved State CDBG Community Revitalization Strategy 
(CRS);
    (j) Eligible public service activities are those general support 
activities that can help to stabilize a neighborhood and contribute to 
sustainable redevelopment of the area, including but not limited to 
such activities as those concerned with employment, crime prevention, 
child care, health, drug abuse, education, fair housing counseling, 
energy conservation, homebuyer down payment assistance, or recreational 
needs;

[[Page 21117]]

    The CDBG Publication entitled ``Community Development Block Grant 
Program Guide to National Objectives and Eligible Activities for 
Entitlement Communities'' describes the regulations, and a copy can be 
obtained from HUD's SuperNOFA Information Center at 1-800-HUD-8929 or 
1-800-HUD-2209 for the hearing-impaired.
    (k) Fair housing services designed to further the fair housing 
objectives of the Fair Housing Act (42 U.S.C. 3601-20) by making all 
persons, without regard to race, color, religion, sex, national origin, 
family status and/or disability aware of the range of housing 
opportunities available to them;
    (l) Up to 20% of the grant for payments of reasonable grant 
administrative costs related to planning and execution of the project 
(e.g. preparation/submission of HUD reports). A detailed explanation of 
these costs are provided in the OMB circulars that can be accessed at 
the White House website at: www.whitehouse.gov/omb/circulars/
index.html; and
    (m) Activities Designed to Promote Training and Employment 
Opportunities. HUD urges applicants to consider undertaking activities 
designed to promote opportunities for training and employment of very 
low-income residents in connection with HUD initiatives such as 
``Neighborhood Networks'' (NN) in other federally assisted or insured 
housing and Employment Opportunities for Lower Income Persons in 
connection with Assisted Projects.

(D) Ineligible Activities

    Ineligible CDBG Activities are listed at Sec.  570.207.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, applicants must meet the following 
requirements:
    (1) All funds awarded under these programs must be spent over a 
three-year (36 months) grant performance period.
    (2) Applicants that propose to undertake activities that involve 
the following: acquisition of real property, clearance, demolition, 
rehabilitation of residential structures including lead-based paint 
hazard evaluation, reduction encouraging accessible design features, 
acquisition, construction, reconstruction, rehabilitation, or 
installation of public facilities and improvements are required to 
provide at least one appraisal from a qualified certified appraiser 
other than the institution, of the cost to complete the activities. 
This information must be submitted with the application. Such an entity 
must be involved in the business of housing rehabilitation, 
construction, and/or management.
    (3) Applicants must ensure that not less than 51% of the aggregated 
expenditures of a grant benefit low- and moderate-income persons under 
the criteria specified in 24 CFR 570.208(a) or 570.208(d)(5) or (6).
    (4) Applicants that claim leveraging from any source, including 
their own institution, must provide letters of firm commitment, 
memoranda of understanding, or agreements evidencing the extent and 
firmness of commitment of leveraging from other federal (e.g., 
AmeriCorps Programs), state, local, and/other private sources 
(including the applicant's own resources). These documents must be 
dated no earlier than the date of this published NOFA and follow the 
outline provided for these programs in Section V, Application Process, 
``Factor 4: Leveraging Resources'' of this NOFA.
    (5) Where grant funds will be used for acquisition, rehabilitation, 
or new construction an applicant must demonstrate site control. Funds 
may be recaptured or deobligated from applicants that cannot 
demonstrate control of a suitable site within one year after the 
initial notification of award.
    (6) Labor Standards. Applicants awarded funds must comply with the 
labor standards (Davis-Bacon) as found at 24 CFR 570.603.

V. Application Selection Process

    Two types of reviews will be conducted:
    (1) A threshold review to determine an applicant's eligibility; and
    (2) A technical review for all applications that pass the threshold 
review to rate and rank the application based on the ``Factors for 
Award'' rating factors listed in Section V(B) below. Only those 
applications that pass the threshold review will receive a technical 
review and be rated and ranked.

(A) Threshold Requirements for Funding Consideration

    All applicants must be in compliance with the threshold 
requirements as defined in the General Section of this SuperNOFA and 
the requirements listed below to be evaluated, rated, and ranked. 
Applications that do not meet these requirements will be considered 
ineligible for funding and will be disqualified:
    (1) The applicant is eligible as referenced in Section III, 
``Program Description, Eligible Applicants; Eligible Activities in this 
NOFA''.
    (2) The maximum amount an HSIAC applicant can request is $600,000.
    (3) In order to meet the definition of a HISAC, at least 25 percent 
of the full-time undergraduate student enrolled in an institution must 
be Hispanic and not less than 50 percent of these Hispanic students 
must be low-income individuals.
    (4) An individual campus that is one of several campuses of the 
same institution may apply separately from the other campus as long as 
the applicant's campus has a separate administrative and budget 
structure.
    (5) Institutions that received an HSIAC grant in FY2002 cannot 
reapply. If an institution received an HSIAC grant in FY1999, FY2000, 
or FY2001 the institution may reapply as long as it: (a) propose a 
different activity (activities) in their current project location, or 
propose replicating their current project in a new location and (b) 
have drawn down at least 75 percent of the previous grant two weeks 
prior the program's application due date.

(B) Factors for Award Used To Evaluate and Rate Applications

    The factors for evaluating, rating, and ranking an application and 
the maximum points for each factor are listed below. Applications must 
receive a minimum of 75 out of the total possible points to be 
considered for funding. The maximum number of points available under 
this program is 102. This includes the two RC/EZ/EC bonus points as 
described in the General Section of this SuperNOFA.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points)

    This factor addresses the extent to which the institution has the 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner. In rating this factor, HUD will 
consider the extent to which the proposal demonstrates:
    (1) Knowledge and Experience (20 Points) For previously Unfunded 
Applicants (5 Points) For previously Funded Applicants.
    The knowledge and experience of the overall project director and 
staff, including the day-to-day program manager, consultants (including 
technical assistance providers), and contractors in planning and 
managing the kinds of programs for which funding is being requested. 
Experience will be judged in terms of recent, relevant, and successful 
knowledge and skills of the staff to undertake eligible program 
activities. HUD will consider experience within the last 5 years to be 
recent;

[[Page 21118]]

experience pertaining to specific activities to be relevant; and 
experience producing specific accomplishments to be successful. The 
more recent and substantial the experience of the staff, particularly 
the institution's own staff who will work on the project have in 
successfully conducting and completing similar activities, the higher 
the number of points an applicant can receive for this rating factor. 
The following categories will be evaluated:
    (a) Undertaking specific successful community development projects 
with community-based organizations or local governments; and
    (b) Providing leadership in solving community problems that have a 
direct bearing on the proposed activities.
    (2) Past Performance For previously Funded Grant Applicants Only 
(15 Points).
    This subfactor will evaluate the extent to which an applicant has 
performed successfully under all previously awarded and current 
grant(s) as measured by:
    (a) Achievement of specific measurable outcome objectives 
consistent with the timeline in the grant proposal(s). Provide a 
detailed list outlining those achievements as they relate to the 
approved timeline in the past grant award(s);
    (b) Leveraging of funding consistent with or exceeding the funds 
originally proposed to be leveraged for that project. In addressing 
leveraging, provide information that compares the proposed leveraged 
funds and resources with what was actually leveraged; and
    (c) Full points will be awarded for performance that has met the 
goals and objectives as outlined in the past awarded grant proposal(s).

Rating Factor 2: Need/Extent of the Problem (10 Points)

    This factor addresses the extent to which there is a need for 
funding the proposed program activities and an indication of the 
importance of meeting the need in the target area. In responding to 
this factor, the proposal will be rated on the extent to which the 
level of need for the proposed activities and the importance of meeting 
the need are documented.
    Applicants should use statistics and analyses contained in at least 
one or more current data sources that are sound and reliable. The data 
provided must be current. In rating this factor HUD will consider data 
collected within the last five years to be current. To the extent that 
the targeted community's Five (5) Year Consolidated Plan and Analysis 
of Impediments to Fair Housing Choice (AI) identify the level of the 
problem and the urgency in meeting the need, applicants should include 
references to these documents in the response to this factor.
    If the proposed activities are not covered under the scope of the 
Consolidated Plan and Analysis of Impediments for Housing Choice (AI), 
indicate such in the proposal and use other sound data sources to 
identify the level of need and the urgency in meeting the need. Other 
reliable sources include, but are not limited to Census reports, HUD 
Continuum of Care gap analysis and its E-MAP (www.hud.gov/emaps), law 
enforcement agency crime reports, Public Housing Authorities' 
Comprehensive Plans, community needs analyses such as provided by the 
United Way, the applicant's institution, and other sound and reliable 
appropriate sources. Needs in terms of fulfilling court orders or 
consent decrees, settlements, conciliation agreements, and voluntary 
compliance agreements may also be addressed.
    The data used should be specific to the area where the proposed 
activities will be carried out. Needs should be documented as they 
apply to the area where the activities will be targeted, rather than 
the entire locality or state, unless the target area is the entire 
locality or state.

Rating Factor 3: Soundness of Approach (50 Points)

    This factor addresses the quality and cost effectiveness of the 
proposed work plan, the commitment of the institution to sustain the 
proposed activities, and actions regarding HUD's priorities, goals and 
objectives, and Affirmatively Furthering Fair Housing. In addition, HUD 
will also consider the extent to which the budget is consistent with 
the Work Plan and the dollars indicated on the HUD 424 form.
    This factor will be evaluated based on the extent to which the 
proposed work plan will:
    (1) Quality of the Work Plan (35 Points)
    (a) (10 Points) Work Plan Impact. Describe how the proposed 
activities will:
    (i) Expand the role of the institution in its community;
    (ii) Alleviate and/or fulfill the needs identified in Factor 2;
    (iii) Relate to and not duplicate other activities in the target 
area. Duplicative effort will be acceptable only if an applicant can 
demonstrate through documentation that there is a population in need 
that is not being served;
    (iv) Involve and empower citizens of the target area in all stages 
of the proposed project (particularly through a committee that is 
representative of the target community to guide the project); and
    (v) Be disseminated to a wide variety of audiences, both academic 
and community-based, using a wide variety of media, including print and 
Internet technology.
    (b) (20 Points) Specific Services and/or Activities. The work plan 
must incorporate all proposed activities. HUD will consider the 
feasibility of success of the program, measurable objectives, and how 
timely products will be delivered.
    Describe each proposed activity and the tasks required to implement 
and complete the activities. Also for each activity describe:
    (1) Which CDBG national objective is being met and how;
    (2) The sequence, duration, and the products to be delivered in 6 
month intervals, up to thirty-six (36) months. Indicate which staff 
member, as described in Factor 1, will be responsible and accountable 
for the deliverables; and
    (3) Measurable objectives to be accomplished, e.g., the number of 
persons to be trained and employed; houses to be built (pursuant to 24 
CFR 570.207) or rehabilitated; minority owned businesses to be started.
    (c) (5 Points) Involvement of the Faculty and Students. The extent 
to which the applicant proposes to integrate the institution's students 
and faculty into proposed project activities.
    (2) (5 Points) HUD Policy Priorities. HUD encourages applicants to 
undertake specific activities that will assist the Department in 
implementing its policy priorities and which help the Department 
achieve its goals and objectives in FY2004, when the majority of grant 
recipients will be reporting programmatic results and achievements. In 
addressing this factor, HUD will evaluate the extent to which a program 
will further and support HUD's priorities. The quality of the responses 
provided to one or more of HUD's priorities will determine the score an 
applicant can receive. For each policy priority addressed, an applicant 
will receive one point. Applicants cannot receive more than five 
points. For the full list and explanation of each policy priority, 
please refer to the General Section of this SuperNOFA.
    (3) (5 Points) Affirmatively Furthering Fair Housing. This 
subfactor will be evaluated on the extent to which an applicant 
proposes to undertake activities designed to affirmatively further fair 
housing, for example:
    (a) Working with other entities in the community to overcome 
impediments to

[[Page 21119]]

fair housing, such as discrimination in the sale or rental of housing 
or in advertising, provision of brokerage services or lending;
    (b) Promoting fair housing choice through the expansion of 
homeownership opportunities and improved quality of services for 
minorities, families with children, and persons with disabilities; or
    (c) Providing housing mobility counseling services.
    (4) (5 Points) Budget. HUD will consider the extent to which the 
budget presentation is consistent with the Work Plan and the dollars 
indicated on the HUD 424 Form. The budget submission should follow the 
narrative statement in this factor and include the following documents:
    (a) HUD 424-C ``Budget Summary for Competitive Grant Programs''. 
This budget form shows the costs for the each budget category for the 
program's entire period of performance.
    (b) HUD 424 CB ``Grant Application Detailed Budget''. This budget 
form must show the total budget by year and by line item for the 
program activities to be carried out. This will be a functional budget. 
Each year of the program should be presented separately.
    All budget forms must be completed in full. If an application is 
selected for award, the applicant may be required to provide greater 
specificity to the budget during grant agreement negotiations.
    (c) Budget-Narrative. A narrative explanation of how the applicant 
arrived at the cost estimates, for any line item, including match 
items, over $5,000. For example, a van rental, $150 per month x 36 
months equals $5,400. The proposed cost estimates should be reasonable 
for the work to be performed and consistent with rates established for 
the level of expertise required to perform the work proposed in the 
geographical area. When necessary, quotes from various vendors or 
historical data should be used and included. All direct labor or 
salaries must be supported with mandated city/state pay scales, Davis-
Bacon wage rates (if applicable) or other documentation. When an 
applicant proposes to use a consultant, the applicant must indicate 
whether there is a formal agreement or written procurement policy. For 
each consultant, please provide the name, if known, hour or daily fee, 
and the estimated time on the project. If applicants propose to 
undertake: rehabilitation of residential, commercial and/or industrial 
structures; and/or acquisition, construction, or installation of public 
facilities and improvements, applicants must submit one appraisal from 
a qualified certified appraiser other than the institution. Such an 
entity must be involved in the business of housing rehabilitation, 
construction and/or management. Guidance for securing these estimates 
can be obtained from the local HUD Office of Community Planning and 
Development. Equipment and contracts cannot be presented as a total 
estimated figure. For equipment applicants must provide a list by type 
and cost for each item and explain how it will be used. Applicants 
using contracts must provide an individual description and cost 
estimate for each contract.
    Indirect costs attributed to a particular project functional 
category should be listed as ``Indirect Costs'' under that category. 
Indirect costs are allowable only if an applicant has a federally 
approved indirect cost rate. A copy of the institution's negotiated 
indirect cost rate as issued by the cognizant federal agency must be 
attached to the budget sheets when submitting an application.
    Make sure that the amount shown on the HUD 424, the budget forms, 
and on all other required program forms is consistent and the budget 
totals correct. Remember to check addition in totaling the categories 
on the HUD 424C and HUD 424-CB form so that all items are included in 
the total. If there is an inconsistency between any of the forms 
required, the HUD 424C form will be used. If upon checking the addition 
HUD finds that an applicant has added incorrectly, the HUD 424-CB will 
be revised accordingly. Please note that this would be considered a 
substantive rather than a technical error. If this correction puts an 
application over the grant maximum, the applicant will not be able to 
correct the amount requested and the application will be disqualified.

Rating Factor 4: Leveraging Resources (10 Points)

    This factor addresses the ability of the applicant to secure 
community resources that can be combined with HUD's grant funds to 
achieve the program's purpose.
    In evaluating this factor, HUD will consider the extent to which 
the applicant established partnerships with other entities to secure 
additional resources to increase the effectiveness of the proposed 
activities. Resources may include funding or in-kind contributions, 
such as services or equipment, allocated to the purpose(s) of the 
grant. Resources may be provided by governmental entities, public or 
private nonprofit organizations, for-profit private organizations, or 
other entities. Applicants may also establish partnerships with other 
program funding recipients to coordinate the use of resources in the 
target area. Please note that the value of the time of individuals 
serving on the program's advisory board cannot be counted as an in-kind 
contribution. Overhead and other institutional costs (e.g., salaries) 
that the institution has waived may be counted. However, higher points 
will be awarded if an applicant secures leveraging resources from 
sources outside the institution. Examples of potential sources for 
outside assistance:
    [sbull] State and local governments
    [sbull] Housing Authorities
    [sbull] Local or national nonprofit organizations
    [sbull] Banks and/or private businesses
    [sbull] Foundations
    [sbull] Faith-based and other community based organizations.
    For each match, cash or in-kind contribution to the program a 
letter of commitment, memorandum of understanding, or agreement must be 
provided that shows the extent and firmness of the commitment of 
leveraged funds (including any commitment of resources from the 
applicant's own institution) in order for these resources to count in 
determining points under this factor. Resources will not be counted for 
which there is no commitment letter, memorandum of understanding, or 
agreement, nor quantified level of commitment. Letters, memoranda of 
understanding, or agreements must be submitted from the provider on the 
provider's letterhead and be included with the application package. The 
date of the letter, memorandum of understanding, or agreement from the 
CEO of the provider organization must be dated no earlier than the date 
of this published SuperNOFA. Applications that do not include evidence 
of leveraging will receive zero (0) points for this Factor.
    A firm commitment letter, memorandum of understanding, or agreement 
must address the following:
    (a) The cash amount contributed or dollar value of the in-kind 
goods and /or services committed (If a dollar amount and use is not 
shown, the source cannot be counted towards the match requirement);
    (b) Specifically indicate how the match is to be used;
    (c) The date the match will be made available and a statement that 
describes the duration of the contribution. If any of the matching 
sources are for more than one year, the commitment letter, memorandum 
of understanding, or agreement must state the number of years, the per 
year commitment, and the total commitment. Without this statement, HUD 
will assume that the commitment is for only one year;

[[Page 21120]]

    (d) Any terms and conditions affecting the commitment, other than 
receipt of a HUD Grant; and
    (e) The signature of the appropriate executive officer authorized 
to commit the funds and/ or goods and /or services.
    Please remember that only items eligible for funding under this 
program can be counted as a match.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    This factor reflects HUD's goal to embrace high standards of 
ethics, management, and accountability. The factor measures the 
applicant's commitment to assess their performance to achieve the 
program's proposed objectives and goals. Applicants are required to 
develop an effective, quantifiable, outcome oriented evaluation plan 
for measuring performance and determining that objectives and goals 
have been achieved.
    ``Outcomes'' are benefits accruing to institutions of higher 
education and/or communities during or after participation in the HSIAC 
program. Applicants must clearly identify the outcomes to be measured 
and achieved. Examples of outcomes are increasing community development 
in the target community, by a certain percentage, or family stability 
through the creation of affordable housing opportunities (e.g. 
increasing assets to families and communities through the development 
of affordable community housing).
    In addition, applicants must establish interim benchmarks and 
outputs that lead to the ultimate achievement of outcomes. ``Outputs'' 
are the direct products of the program's activities. Examples of 
outputs are the number of new affordable housing units, the number of 
homes that have been renovated, the number of community facilities that 
been constructed or rehabilitated. Outputs should produce outcomes for 
the program. At a minimum an applicant must address the following 
activities in the evaluation plan:
    (a) Short and long term objectives to be achieved;
    (b) Actual accomplishments against anticipated achievements.
    (c) Measurable impacts the grant will have on the community in 
general and the target area or population;
    (d) The impact the grant will have on the long term commitment of 
the University to the faculty and students to provide opportunities to 
reward and continue this type of work; and
    (e) The impact the grant will have on assisting the university to 
obtain additional resources to continue this type of work at the end of 
the funding period of this grant award.
    This information should be provided in a Logic Model format. This 
form and information can be found in the General Section of this 
SuperNOFA.

The Alaska Native/Native Hawaiian Institutions Assisting Communities 
Program (AN/NHIAC)

I. Program Overview

    Purpose of the Program. To assist Alaska Native/Native Hawaiian 
Institutions of higher education (AN/NHIs) expand their role and 
effectiveness in addressing community development needs in their 
localities, including neighborhood revitalization, housing, and 
economic development, principally for persons of low- and moderate-
income, consistent with the purposes of Title I of the Housing and 
Community Development Act of 1974, as amended.

II. Amount Allocated, Grant Size and Term, and Performance Period

    Amount Allocated. In Fiscal Year 2003, $2.981 million was earmarked 
by the conference report accompanying the FY 2003 Consolidation 
Appropriation Resolution, Division K plus approximately $4 million in 
previously unexpended FY2002 funds.

III. Grant Size and Term, and Performance Period

    HUD will award two kinds of grants under this program. Grants for 
Alaska Native Institutions (ANIs) and grants for Native Hawaiian 
Institutions (NHIs).
    The maximum amount an ANI and NHI applicant can request is $800,000 
for a three-year (36 months) grant performance period. $3.4 million is 
being made available for ANIs and $ 3.4 million is being made available 
for NHIs.

IV. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    The purpose is to assist AN/NHIs to expand their role and 
effectiveness in addressing community development needs in their 
localities, including neighborhood revitalization, housing, and 
economic development.
    (1) For the purposes of this program, the term ``locality'' 
includes any city, county, township, parish, village, or other general 
political subdivision of a state within which your AN/NHI is located.
    (2) A ``target area'' is the locality or the area within the 
locality in which the institution will implement its proposed HUD 
grant.

(B) Eligible Applicants

    Nonprofit Alaska Native and Native Hawaiian institutions of higher 
education that meet the definitions of Alaska Native and Native 
Hawaiian institutions of higher education established in Title III, 
Part A, Section 317 of the Higher Education Act of 1965, as amended by 
the Higher Education Amendments of 1998 (Pub. L.105-244; enacted 
October 7, 1998). Institutions are not required to be on the list of 
eligible AN/NHIs prepared by the U.S. Department of Education. However, 
an institution that is not on the list is required to state in the 
application that the institution meets the U.S. Department of 
Education's statutory definition of an AN/NHI institution.

(C) Eligible Activities

    Each activity proposed for funding must meet both a Community 
Development Block Grant (CDBG) Program national objective and the CDBG 
eligibility requirements. Eligible activities that may be funded under 
this program are those activities eligible for CDBG funding. The 
eligible activities are listed in 24 CFR part 570, subpart C, 
particularly Sec. Sec.  570.201 through 570.206. Each activity funded 
under this program must meet one of the three national objectives of 
the Community Development Block Grant program, which are:
    (a) Benefit to low-or moderate-income persons;
    (b) Aid in the prevention or elimination of slums or blight; or
    (c) Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    Criteria for determining whether an activity addresses one or more 
of these objectives are provided at 24 CFR 570.208.
    Examples of Eligible Activities include, but are not limited to:
    (a) Acquisition of real property;
    (b) Clearance and demolition;
    (c) Rehabilitation of residential structures including lead-based 
paint hazard evaluation and reduction; and encouraging accessible 
design features in accordance with the requirements of section 504 of 
the Rehabilitation Act of 1973;
    (d) Acquisition, construction, reconstruction, rehabilitation, or 
installation of public facilities and

[[Page 21121]]

improvements, such as water and sewer facilities and streets; including 
lead-based paint hazard evaluation and reduction; and encouraging 
compliance accessible with the design and construction requirements of 
Section 504 of the Rehabilitation Act of 1973 and the Fair Housing Act;
    (e) Relocation payments and other assistance for permanently and 
temporarily relocated individuals, families, businesses, nonprofit 
organizations, and farm operations where the assistance is:
    (i) Required under the provisions of 24 CFR 570.606(b) or (c); or
    (ii) Determined by the grantee to be appropriate under the 
provisions of 24 CFR 570.606(d);
    (f) Direct homeownership assistance to low- and moderate-income 
persons, as provided in section 105(a) (25) of the Housing and 
Community Development Act of 1974;
    (g) Special economic development activities described at 24 CFR 
570.203;
    (h) Assistance to facilitate economic development by providing 
technical or financial assistance for the establishment, stabilization, 
and expansion of microenterprises, including minority enterprises;
    (i) Assistance to community-based development organizations (CBDO) 
to carry out a CDBG neighborhood revitalization, community economic 
development, or energy conservation project, in accordance with 24 CFR 
570.204. This could include activities in support of a HUD-approved 
local entitlement grantee CDBG Neighborhood Revitalization Strategy 
(NRS) or HUD-approved State CDBG Community Revitalization Strategy 
(CRS);
    (j) Eligible public service activities are those general support 
activities that can help to stabilize a neighborhood and contribute to 
sustainable redevelopment of the area, including but not limited to 
such activities as those concerned with employment, crime prevention, 
child care, health, drug abuse, education, fair housing counseling, 
energy conservation, homebuyer down payment assistance, or recreational 
needs.
    The CDBG Publication entitled ``Community Development Block Grant 
Program Guide to National Objectives and Eligible Activities for 
Entitlement Communities'' describes the regulations, and a copy can be 
obtained from HUD's SuperNOFA Information Center at 1-800-HUD-8929 or 
1-800-HUD-2209 for the hearing-impaired;
    (k) Fair housing services designed to further the fair housing 
objectives of the Fair Housing Act (42 U.S.C. 3601-20) by making all 
persons, without regard to race, color, religion, sex, national origin, 
family status and/or disability aware of the range of housing 
opportunities available to them;
    (l) Up to 20% of the grant for payments of reasonable grant 
administrative costs related to planning and execution of the project 
(e.g. preparation/submission of HUD reports). A detailed explanation of 
these costs are provided in the OMB circulars that can be accessed at 
the White House website at: www.whitehouse.gov/omb/circulars/
index.html; and
    (m) Activities Designed to Promote Training and Employment 
Opportunities. HUD urges applicants to consider undertaking activities 
designed to promote opportunities for training and employment of very 
low-income residents in connection with HUD initiatives such as 
``Neighborhood Networks'' (NN) in other federally assisted or insured 
housing and Employment Opportunities for Lower Income Persons in 
connection with Assisted Projects.

(D) Ineligible Activities

    Ineligible CDBG Activities are listed at 24 CFR 570.207.

V. Program Requirements

    In addition to the program requirements listed in General Section 
of this SuperNOFA, applicants must meet the following program 
requirements:
    (1) All funds awarded under these programs must be spent over a 
three-year (36 months) period grant performance period.
    (2) Applicants that propose to undertake activities that involve 
the following: acquisition of real property, clearance, demolition, 
rehabilitation of residential structures including lead-based paint 
hazard evaluation, reduction encouraging accessible design features, 
acquisition, construction, reconstruction, rehabilitation, or 
installation of public facilities and improvements are required to 
provide at least one appraisal from a qualified certified appraiser 
other than the institution, of the cost to complete the activities. 
This information must be submitted with the application. Such an entity 
must be involved in the business of housing rehabilitation, 
construction, and/or management.
    (3) Applicants must ensure that not less than 51% of the aggregated 
expenditures of a grant benefit low- and moderate-income persons under 
the criteria specified in 24 CFR 570.208(a) or 570.208(d)(5) or (6).
    (4) Applicants that claim leveraging from any source, including 
their own institution, must provide letters of firm commitment, 
memoranda of understanding, or agreements evidencing the extent and 
firmness of commitment of leveraging from other federal (e.g., 
AmeriCorps Programs), state, local, and/other private sources 
(including the applicant's own resources). These documents must be 
dated no earlier than the date of this published NOFA and follow the 
outline provided for this program in Section V, Application Process, 
``Factor 4: Leveraging Resources'' of this NOFA.
    (5) Where grant funds will be used for acquisition, rehabilitation, 
or new construction an applicant must demonstrate site control. Funds 
may be recaptured or deobligated from applicants that cannot 
demonstrate control of a suitable site within one year after the 
initial notification of award.
    (6) Labor Standards. Applicants awarded funds must comply with the 
labor standards (Davis-Bacon) as found at 24 CFR 570.603.

VI. Application Selection Process

    Two types of reviews will be conducted:
    (1) A threshold review to determine an applicant's eligibility; and
    (2) A technical review for all applications that pass the threshold 
review to rate and rank the application based on the ``Factors for 
Award'' rating factors listed in Section V (B) below. Only those 
applications that pass the threshold review will receive a technical 
review and be rated and ranked.

(A) Threshold Requirements for Funding Consideration

    All applicants must be in compliance with the threshold 
requirements as defined in the General Section of this SuperNOFA and 
the requirements listed below to be evaluated, rated, and ranked. 
Applications that do not meet these requirements will be considered 
ineligible for funding and will be disqualified:
    (1) The applicant is eligible as referenced in Section III, 
``Program Description, Eligible Applicants; Eligible Activities in this 
NOFA''.
    (2) The maximum amount ANI and NHI applicants can request for award 
is $800,000.
    (3) In order to meet the Alaska Native Institution definition, at 
least 20% of the undergraduate headcount enrollment must be Alaska 
Native students. If applicant is a Native Hawaiian institution, in 
order to meet this definition at least 10% of the

[[Page 21122]]

undergraduate headcount enrollment must be Native Hawaiian students.
    (4) Institutions that received grants in FY 2002 are not eligible 
to submit an application.
    (5) If an institution has multiple campuses, each one is eligible 
to apply separately as long as it meets the enrollment test.

(B) Factors for Award Used To Evaluate and Rate Applications

    The factors for evaluating, rating, and ranking an application and 
the maximum points for each factor are listed below. Applications must 
receive a minimum of 75 out of the total possible points to be 
considered for funding. The maximum number of points available under 
this program is 102. This includes the two RC/EZ/EC bonus points as 
described in the General Section of this SuperNOFA.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points)

    This factor addresses the extent to which the institution has the 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner. In rating this factor, HUD will 
consider the extent to which the proposal demonstrates:
    (1) Knowledge and Experience (20 Points) For previously Unfunded 
Applicants (5 Points) For previously Funded Applicants.
    The knowledge and experience of the overall project director and 
staff, including the day-to-day program manager, consultants (including 
technical assistance providers), and contractors in planning and 
managing the kinds of programs for which funding is being requested. 
Experience will be judged in terms of recent, relevant, and successful 
knowledge and skills of the staff to undertake eligible program 
activities. HUD will consider experience within the last 5 years to be 
recent; experience pertaining to specific activities to be relevant; 
and experience producing specific accomplishments to be successful. The 
more recent and substantial the experience of the staff, particularly 
the institution's own staff who will work on the project have in 
successfully conducting and completing similar activities, the higher 
the number of points an applicant can receive for this rating factor. 
The following categories will be evaluated:
    (a) Undertaking specific successful community development projects 
with community-based organizations or local governments; and
    (b) Providing leadership in solving community problems that have a 
direct bearing on the proposed activities.
    (2) Past Performance--For previously Funded Grant Applicants Only 
(15 Points).
    This subfactor will evaluate the extent to which an applicant has 
performed successfully under all previously awarded and current 
grant(s) as measured by:
    (a) Achievement of specific measurable outcome objectives 
consistent with the timeline in the grant proposal(s). Provide a 
detailed list outlining those achievements as they relate to the 
approved timeline in the past grant award(s);
    (b) Leveraging of funding consistent with or exceeding the funds 
originally proposed to be leveraged for that project. In addressing 
leveraging, provide information that compares the proposed leveraged 
funds and resources with what was actually leveraged; and
    (c) Full points will be awarded for performance that has met the 
goals and objectives as outlined in the past awarded grant proposal(s).
    Rating Factor 2: Need/Extent of the Problem (10 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed program activities and an indication of the 
importance of meeting the need in the target area. In responding to 
this factor, the proposal will be rated on the extent to which the 
level of need for the proposed activities and the importance of meeting 
the need are documented.
    Applicants should use statistics and analyses contained in at least 
one or more current data sources that are sound and reliable. The data 
provided must be current. In rating this factor HUD will consider data 
collected within the last five years to be current. To the extent that 
the targeted community's Five (5) Year Consolidated Plan and Analysis 
of Impediments to Fair Housing Choice (AI) identify the level of the 
problem and the urgency in meeting the need, applicants should include 
references to these documents in the response to this factor.
    If the proposed activities are not covered under the scope of the 
Consolidated Plan and Analysis of Impediments to Fair Housing Choice 
(AI), indicate such in the proposal and use other sound data sources to 
identify the level of need and the urgency in meeting the need. Other 
reliable sources include, but are not limited to Census reports, HUD 
Continuum of Care gap analysis and its E-MAP (http://www.hud.gov/
emaps), law enforcement agency crime reports, Public Housing 
Authorities' Comprehensive Plans, community needs analyses such as 
provided by the United Way, the applicant's institution, and other 
sound and reliable appropriate sources. Needs in terms of fulfilling 
court orders or consent decrees, settlements, conciliation agreements, 
and voluntary compliance agreements may also be addressed.
    The data used should be specific to the area where the proposed 
activities will be carried out. Needs should be documented as they 
apply to the area where the activities will be targeted, rather than 
the entire locality or state, unless the target area is the entire 
locality or state.

Rating Factor 3: Soundness of Approach (50 Points)

    This factor addresses the quality and cost effectiveness of the 
proposed work plan, the commitment of the institution to sustain the 
proposed activities, and actions regarding HUD's priorities, goals and 
objectives, and Affirmatively Furthering Fair Housing. In addition, HUD 
will also consider the extent to which the budget is consistent with 
the Work Plan and the dollars indicated on the HUD 424 form.
    This factor will be evaluated based on the extent to which the 
proposed work plan will:
    (1) Quality of the Work Plan (35 Points)
    (a) (10 Points) Work Plan Impact. Describe how the proposed 
activities will:
    (i) Expand the role of the institution in its community;
    (ii) Alleviate and/or fulfill the needs identified in Factor 2;
    (iii) Relate to and not duplicate other activities in the target 
area. Duplicative effort will be acceptable only if an applicant can 
demonstrate through documentation that there is a population in need 
that is not being served;
    (iv) Involve and empower citizens of the target area in all stages 
of the proposed project (particularly through a committee that is 
representative of the target community to guide the project); and
    (v) Be disseminated to a wide variety of audiences, both academic 
and community-based, using a wide variety of media, including print and 
Internet technology.
    (b) (20 Points). Specific Services and/or Activities. The work plan 
must incorporate all proposed activities. HUD will consider the 
feasibility of success of the program, measurable objectives, and how 
timely products will be delivered.

[[Page 21123]]

    Describe each proposed activity and the tasks required to implement 
and complete the activities. Also for each activity, describe:
    (1) Which CDBG national objective is being met and how;
    (2) The sequence, duration, and the products to be delivered in 6 
month intervals, up to thirty-six (36) months. Indicate which staff 
member, as described in Factor 1, will be responsible and accountable 
for the deliverables; and
    (3) Measurable objectives to be accomplished, e.g., the number of 
persons to be trained and employed; houses to be built (pursuant to 24 
CFR 570.207) or rehabilitated; minority-owned businesses to be started.
    (c) (5 Points) Involvement of the Faculty and Students. The extent 
to which the applicant proposes to integrate the institution's students 
and faculty into proposed project activities.
    (2) (5 Points) HUD Policy Priorities. HUD encourages applicants to 
undertake specific activities that will assist the Department in 
implementing its policy priorities and which help the Department 
achieve its goals and objectives in FY 2004, when the majority of grant 
recipients will be reporting programmatic results and achievements. In 
addressing this factor, HUD will evaluate the extent to which a program 
will further and support HUD's priorities. The quality of the responses 
provided to one or more of HUD's priorities will determine the score an 
applicant can receive. For each policy priority addressed an applicant 
will receive one point. Applicants cannot receive more than five 
points. For the full list and explanation of each policy priority, 
please refer to the General Section of this SuperNOFA.
    (3) (5 Points) Affirmatively Furthering Fair Housing. This 
subfactor will be evaluated on the extent to which an applicant 
proposes to undertake activities designed to affirmatively further fair 
housing, for example:
    (a) Working with other entities in the community to overcome 
impediments to fair housing, such as discrimination in the sale or 
rental of housing or in advertising, provision of brokerage services or 
lending;
    (b) Promoting fair housing choice through the expansion of 
homeownership opportunities and improved quality of services for 
minorities, families with children, and persons with disabilities; or
    (c) Providing housing mobility counseling services.
    (4) (5 Points) Budget. HUD will consider the extent to which the 
budget presentation is consistent with the Work Plan and the dollars 
indicated on the HUD 424 Form. The budget submission should follow the 
narrative statement in this factor and include the following documents:
    (a) HUD 424-C ``Budget Summary for Competitive Grant Programs''. 
This budget form shows the costs for each budget category for the 
program's entire period of performance.
    (b) HUD 424 CB ``Grant Application Detailed Budget''. This budget 
form must show the total budget by year and by line item for the 
program activities to be carried out. This will be a functional budget. 
Each year of the program should be presented separately.
    All budget forms must be completed in full. If an application is 
selected for award, the applicant may be required to provide greater 
specificity to the budget during grant agreement negotiations.
    (c) Budget-Narrative. A narrative explanation of how the applicant 
arrived at the cost estimates, for any line item, including match 
items, over $5,000. For example, a van rental, $150 per month x 36 
months equals $5,400. The proposed cost estimates should be reasonable 
for the work to be performed and consistent with rates established for 
the level of expertise required to perform the work proposed in the 
geographical area. When necessary, quotes from various vendors or 
historical data should be used and included. All direct labor or 
salaries must be supported with mandated city/state pay scales, Davis-
Bacon wage rates (if applicable) or other documentation. When an 
applicant proposes to use a consultant, the applicant must indicate 
whether there is a formal agreement or written procurement policy. For 
each consultant, please provide the name, if known, hour or daily fee, 
and the estimated time on the project. If applicants propose to 
undertake: rehabilitation of residential, commercial and/or industrial 
structures; and/or acquisition, construction, or installation of public 
facilities and improvements, applicants must submit one appraisal from 
a qualified certified appraiser other than the institution. Such an 
entity must be involved in the business of housing rehabilitation, 
construction and/or management. Guidance for securing these estimates 
can be obtained from the local HUD Office of Community Planning and 
Development. Equipment and contracts cannot be presented as a total 
estimated figure. For equipment applicants must provide a list by type 
and cost for each item and explain how it will be used. Applicants 
using contracts must provide an individual description and cost 
estimate for each contract.
    Indirect costs attributed to a particular project functional 
category should be listed as ``Indirect Costs'' under that category. 
Indirect costs are allowable only if an applicant has a federally 
approved indirect cost rate. A copy of the institution's negotiated 
indirect cost rate as issued by the cognizant federal agency must be 
attached to the budget sheets when submitting an application.
    Make sure that the amount shown on the HUD 424, the budget forms, 
and on all other required program forms is consistent and the budget 
totals correct. Remember to check addition in totaling the categories 
on the HUD 424C and HUD 424-CB form so that all items are included in 
the total. If there is an inconsistency between any of the forms 
required, the HUD 424C form will be used. If upon checking the addition 
HUD finds that an applicant has added incorrectly, the HUD 424-CB will 
be revised accordingly. Please note that this would be considered a 
substantive rather than a technical error. If this correction puts an 
application over the grant maximum, the applicant will not be able to 
correct the amount requested and the application will be disqualified.

Rating Factor 4: Leveraging Resources (10 Points)

    This factor addresses the ability of the applicant to secure 
community resources that can be combined with HUD's grant funds to 
achieve the program's purpose.
    In evaluating this factor, HUD will consider the extent to which 
the applicant established partnerships with other entities to secure 
additional resources to increase the effectiveness of the proposed 
activities. Resources may include funding or in-kind contributions, 
such as services or equipment, allocated to the purpose(s) of the 
grant. Resources may be provided by governmental entities, public or 
private nonprofit organizations, for-profit private organizations, or 
other entities. Applicants may also establish partnerships with other 
program funding recipients to coordinate the use of resources in the 
target area. Please note that the value of the time of individuals 
serving on the program's advisory board cannot be counted as an in-kind 
contribution. Overhead and other institutional costs (e.g., salaries) 
that the institution has waived may be counted. However, higher points 
will be awarded if an applicant secures leveraging resources from 
sources outside the institution. Examples of potential sources for 
outside assistance:
    [sbull] State and local governments
    [sbull] Housing Authorities

[[Page 21124]]

    [sbull] Local or national nonprofit organizations
    [sbull] Banks and/or private businesses
    [sbull] Foundations
    [sbull] Faith-based and other community based organizations.
    For each match, cash or in-kind contribution to the program a 
letter of commitment, memorandum of understanding, or agreement must be 
provided that shows the extent and firmness of the commitment of 
leveraged funds (including any commitment of resources from the 
applicant's own institution) in order for these resources to count in 
determining points under this factor. Resources will not be counted for 
which there is no commitment letter, memorandum of understanding, or 
agreement, nor quantified level of commitment. Letters, memoranda of 
understanding, or agreements must be submitted from the provider on the 
provider's letterhead and be included with the application package. The 
date of the letter, memorandum of understanding, or agreement from the 
CEO of the provider organization must be dated no earlier than the date 
of this published SuperNOFA. Applications that do not include evidence 
of leveraging will receive zero (0) points for this Factor.
    A firm commitment letter, memorandum of understanding, or agreement 
must address the following:
    (a) The cash amount contributed or dollar value of the in-kind 
goods and/or services committed (If a dollar amount and use is not 
shown, the source cannot be counted towards the match requirement);
    (b) Specifically indicate how the match is to be used;
    (c) The date the match will be made available and a statement that 
describes the duration of the contribution. If any of the matching 
sources are for more than one year, the commitment letter, memorandum 
of understanding, or agreement must state the number of years, the per 
year commitment, and the total commitment. Without this statement, HUD 
will assume that the commitment is for only one year;
    (d) Any terms and conditions affecting the commitment, other than 
receipt of a HUD Grant; and
    (e) The signature of the appropriate executive officer authorized 
to commit the funds and/ or goods and/or services.
    Please remember that only items eligible for funding under this 
program can be counted as a match.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    This factor reflects HUD's goal to embrace high standards of 
ethics, management, and accountability. The factor measures the 
applicant's commitment to assess their performance to achieve the 
program's proposed objectives and goals. Applicants are required to 
develop an effective, quantifiable, outcome oriented evaluation plan 
for measuring performance and determining that objectives and goals 
have been achieved.
    ``Outcomes'' are benefits accruing to institutions of higher 
education and/or communities during or after participation in the AN/
NHIAC program. Applicants must clearly identify the outcomes to be 
measured and achieved. Examples of outcomes are increasing community 
development in the target community, by a certain percentage, or 
increasing family stability through the creation of affordable housing 
opportunities (e.g., increasing assets to families and communities 
through the development of affordable community housing).
    In addition, applicants must establish interim benchmarks and 
outputs that lead to the ultimate achievement of outcomes. ``Outputs'' 
are the direct products of the program's activities. Examples of 
outputs are the number of new affordable housing units, the number of 
homes that have been renovated, the number of community facilities that 
have been constructed or rehabilitated. Outputs should produce outcomes 
for the program. At a minimum, an applicant must address the following 
activities in the evaluation plan:
    (a) Short- and long-term objectives to be achieved;
    (b) Actual accomplishments against anticipated achievements.
    (c) Measurable impacts the grant will have on the community in 
general and the target area or population;
    (d) The impact the grant will have on the long term commitment of 
the University to the faculty and students to provide opportunities to 
reward and continue this type of work; and
    (e) The impact the grant will have on assisting the university to 
obtain additional resources to continue this type of work at the end of 
the funding period of this grant award.
    This information should be provided in a Logic Model format. This 
form and information on how to use can be found in the General Section 
of this SuperNOFA.

Tribal Colleges and Universities Program (TCUP)

I. Program Overview

    Purpose of the Program. To assist Tribal Colleges and Universities 
(TCUs) to build, expand, renovate, and equip their own facilities.

II. Amount Allocated, Grant Size and Term, and Performance Period

    Amount Allocated. In Fiscal Year 2003, $2.981 million was earmarked 
by the conference report accompanying the FY 2003 Consolidation 
Appropriation Resolution, Division K, and approximately $194,522 in 
previously unexpended FY 2002 funds is being made available.
    Grant Size and Term. The maximum amount a TCUP applicant can 
request is $400,000 for a three-year (36 months) grant performance 
period.

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    The purpose of this program is to assist TCUs to build, expand, 
renovate, and equip their own facilities, especially those facilities 
that are used by or available to the larger community.

(B) Eligible Applicants

    Tribal colleges and universities that meet the definition of a TCU 
established in Title III of the 1998 Amendments to the Higher Education 
Act of 1965 (Pub. L. 105-244, enacted October 7, 1998). Institutions 
must be accredited or state they are a candidate for accreditation by a 
regional institutional accrediting association recognized by the U.S. 
Department of Education.

(C) Eligible Activities

    Each activity proposed for funding must meet one of the following 
Community Development Block Grant (CDBG) Program national objectives:
    (a) Benefit low- and moderate-income persons;
    (b) Aid in the prevention or elimination of slums or blight; or
    (c) Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    TCU Programs should build, expand, renovate, and equip facilities 
to assist activities that an institution normally provides. Buildings 
in which an institution undertakes activities that serve those not 
enrolled in the institution are eligible, however the facilities must 
be predominantly for the use of the institution.
    Up to 20% of the grant for payments of reasonable grant 
administrative costs related to planning and execution of the project 
(e.g., preparation/submission of

[[Page 21125]]

HUD reports). A detailed explanation of these costs is provided in the 
OMB circulars that can be accessed at the White House Web site at: 
http://www.whitehouse.gov/omb/circulars/index.html.
    Examples of Eligible Activities include, but are not limited to:
    (a) Small business assistance center operated by the institution or 
renovation of the facility in which the center is located;
    (b) New gymnasium solely for students, but that offers some 
physical education classes or other activities in the evening to the 
larger community;
    (c) Rehabilitation of a student union building that would also 
serve as a community meeting facility, with the community helping to 
plan the renovations and also helping to operate additional activities;
    (d) Equipping the university's computer lab where the larger 
community helped the institution identify the equipment needs and also 
help in implementing workshops, etc.;
    (e) Development of a facility that is solely for the institution 
(e.g., a dormitory or administration building); and
    (f) Long-term leases of property (i.e., at least five years in 
duration are considered an acceptable form of ownership under this 
program).

(D) Ineligible Activities

    Activities ineligible for funding under this program include, but 
are not limited to the following:
    (a) Renovation of a facility/center in which the facility/center is 
not used at least 51% of the time by the institution.
    (b) Rental space to another entity that operates a small business 
assistance center;
    (c) Institution proposes to build a new gymnasium, where the 
majority of the activities are for non-students, or the activities are 
primarily run by an outside entity.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, applicants must meet the following program 
requirements:
    (1) All funds awarded under this program must be spent over a 
three-year (36 months) grant performance period.
    (2) While community-wide use of a facility (that is purchased, 
leased, or built) is permissible under this program, the facility must 
be predominantly for the use of the institution (i.e., it must be used 
by the institution at least 51% of the time).
    (3) Applicants that claim leveraging from any source, including 
their own institution, must provide letters of firm commitment, 
memoranda of understanding, or agreements evidencing the extent and 
firmness of commitment of leveraging from other federal (e.g., Bureau 
of Indian Affairs), state, Indian housing authorities, local, tribes, 
and/other private sources (including the applicant's own resources). 
These documents must be dated no earlier than the date of this 
published NOFA and follow the outline provided for these programs in 
Section V, Factor 4 of this NOFA.
    (4) If a TCU is a part or instrumentality of a tribe, the applicant 
must comply with the Indian Civil Rights Act (25 U.S.C. 1301 et seq.). 
If the TCU is not a part or instrumentality of a tribe the applicant 
must comply with the Fair Housing Act (42 U.S.C. 3601-19) and 
implementing regulations at 24 CFR part 100 et seq. Title VI of the 
Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d-4) (Nondiscrimination 
in Federally Assisted Programs) and implementing regulations at 24 CFR 
part 1, and Section 109 of Title One of the Housing and Community 
Development Act of 1974, as amended, with respect to nondiscrimination 
on the basis of age, sex, religion, or disability and implementing 
regulations at 24 CFR part 6;
    (5) Labor Standards. Institutions and their subgrantees, 
contractors and subcontractors must comply with the labor standards 
(Davis-Bacon) requirements referenced in 24 CFR 570.603. However, in 
accordance with HCDA section 107(e)(2), the Secretary waives the 
provisions of HCDA section 110 with respect to the TCUP program for 
grants to a TCU that is part of a tribe, i.e., a TCU that is legally a 
department or other part of a tribal government, but not a TCU that is 
established under tribal law as an entity separate from the tribal 
government. If a TCU is not part of a tribe, the labor standards of 
HCDA section 110, as referenced in 24 CFR 570.603, apply to activities 
under the grant to the TCU.

V. Application Selection Process

    Two types of reviews will be conducted:
    (1) A threshold review to determine an applicant's eligibility; and
    (2) A technical review for all applications that pass the threshold 
review to rate and rank the application based on the ``Factors for 
Award'' rating factors listed for each program in Section V(B) below.
    Only those applications that pass the threshold review will receive 
a technical review and be rated and ranked.

(A) Threshold Requirements for Funding Consideration

    All applicants must be in compliance with the threshold 
requirements as defined in the General Section of this SuperNOFA and 
the requirements listed below to be evaluated, rated, and ranked. 
Applications that do not meet these requirements will be considered 
ineligible for funding and will be disqualified:
    (1) The applicant is eligible as referenced in Section III, 
``Program Description, Eligible Applicants; Eligible Activities in this 
NOFA.
    (2) The maximum amount a TCUP applicant can request for award is 
$400,000.
    (3) Funds awarded under this program may not be used for public 
services, as defined in 24 CFR part 570, subpart C, Sec.  570.201(e).
    (4) Only one application is eligible for funding from an 
institution or campus. However, an individual campus that is one of 
several campuses of the same institution may apply separately from the 
other campus as long as the applicant's campus has a separate 
administrative and budget structure.
    (5) Institutions that received grants in FY 2002 are not eligible 
to submit an application

(B) Factors for Award Used To Evaluate and Rate Applications.

    The factors for evaluating, rating, and ranking an application and 
the maximum points for each factor are listed below. Applications must 
receive a minimum of 75 out of the total possible points to be 
considered for funding. The maximum number of points available under 
this program is 100. The RC/EZ/EC bonus points do not apply to this 
program as described in the General Section of this SuperNOFA.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points)

    This factor addresses the extent to which the applicant has the 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner. In rating this factor, HUD will 
consider the extent to which the proposal demonstrates the overall 
project director and staff, including the day-to-day program manager, 
consultants, and contractors in planning and managing the kind of 
activities/projects for which funding is being requested. Experience 
will be judged in terms of recent, relevant, and successful knowledge 
and skills of the staff to undertake eligible program activities. HUD 
will consider experience

[[Page 21126]]

within the last 5 years to be recent; experience pertaining to specific 
activities to be relevant; and experience producing specific 
accomplishments to be successful. Higher points will be awarded for 
this factor where the experience belongs to members of the TCU staff 
who will actually do the work on the project rather than consultants, 
contractors, and other staff outside the institution.

Rating Factor 2: Need/Extent of the Problem (10 Points)

    This factor addresses the extent to which there is a need for 
funding the proposed program activities and an indication of the 
importance of meeting that need. In responding to this factor, the 
proposal will be rated on the extent to which the level of need for the 
proposed activities and the importance of meeting the need are 
documented.
    Applicants should use statistics and analyses contained in at least 
one or more current data sources that are sound and reliable. The data 
provided must be current and specific to the area where the proposed 
activities will be carried out. In rating this factor HUD will consider 
data collected within the last five years to be current.

Rating Factor 3: Soundness of Approach (50 Points)

    This factor addresses the quality and cost-effectiveness of the 
proposed work plan.
    (1) Quality of Work Plan (40 Points)
    (a) (15 Points) Work Plan Impact. Specifically, HUD will consider 
the extent to which the proposed activities will:
    (i) Meet an identified important need; and
    (ii) Relate to and not duplicate other activities in the target 
area.
    (b) (15 Points) Specific Services and/or Activities. HUD will 
consider the feasibility of success of the program, the measurable 
objectives, and how timely the identified tasks will be completed. 
Specifically, HUD will examine the extent to which the objectives are 
measurable (e.g., the number of classrooms added, the number of 
additional clients that can be helped in an expanded small business 
assistance center), result in measurable improvement to the community 
(e.g., fifty more people receiving computer literacy training, twenty 
more small businesses started, etc.), and how well the applicant 
demonstrates that these objectives will be achieved by the proposed 
management plan, and team and will result directly from the activities.
    (c) (5 Points) Community Involvement. HUD will consider the extent 
to which the applicant has involved the community in all stages of the 
proposed project.
    (d) (5 Points) Involvement of the Faculty and Students. The extent 
to which the applicant proposes to integrate students and faculty into 
project activities.
    (2) (5 Points) HUD Policy Priorities. HUD encourages applicants to 
undertake specific activities that will assist the Department in 
implementing its policy priorities and which help the Department 
achieve its goals and objectives in FY 2004, when the majority of grant 
recipients will be reporting programmatic results and achievement. In 
addressing this factor, HUD will evaluate the extent to which a program 
will further and support HUD priorities. The quality of the responses 
provided to one or more of HUD's priorities will determine the score an 
applicant can receive. For each policy priority addressed an applicant 
will receive one point. Applicants cannot receive more than five 
points. For the full list and explanation of each policy priority, 
please refer to the General Section of this SuperNOFA.
    (3) (5 Points) Budget. HUD will consider the extent to which the 
budget presentation is consistent with the Work Plan and the dollars 
indicated on the HUD 424 form. The budget submission should follow the 
narrative statement in this factor and include the following documents:
    (a) HUD 424-C ``Budget Summary for Competitive Grant Programs''. 
This budget form shows the cost for each budget category for the 
program's entire period of performance.
    (b) HUD 424-CB ``Grant Application Detailed Budget''. This budget 
form shows the total budget by year and by line item for the program 
activities to be carried out. This will be a functional budget. Each 
year of the program should be presented separately.
    All budget forms must be completed in full. If an application is 
selected for award, the applicant may be required to provide greater 
specificity to the budget during grant agreement negotiations.
    (b) Budget-Narrative. A narrative explanation of how the applicant 
arrived at the cost estimates, for any line item, including match 
items, over $5,000. For example, a van rental, $150 per month x 36 
months equals $5,400. The proposed cost estimates should be reasonable 
for the work to be performed and consistent with rates established for 
the level of expertise required to perform the work proposed in the 
geographical area. When necessary, quotes from various vendors or 
historical data should be used and included. All direct labor or 
salaries must be supported with mandated city/state pay scales, Davis-
Bacon wage rates (if applicable) or other documentation. When an 
applicant proposes to use a consultant, the applicant must indicate 
whether there is a formal agreement or written procurement policy. For 
each consultant, please provide the name, if known, hour or daily fee, 
and the estimated time on the project. Applicants must submit one 
appraisal from a qualified certified appraiser other than the 
institution for projects that involve rehabilitation of residential, 
commercial and/or industrial structures; and/or acquisition, 
construction, or installation of public facilities and improvements. 
Such an entity must be involved in the business of housing 
rehabilitation, construction and/or management. Guidance for securing 
these estimates can be obtained from the local Office of Native 
American Programs (ONAP) and the local HUD Office of Community Planning 
and Development. Equipment and contracts cannot be presented as a total 
estimated figure. For equipment applicants must provide a list by type 
and cost for each item and explain how it will be used. Applicants 
using contracts must provide an individual description and cost 
estimate for each contract.
    Indirect costs attributed to a particular project functional 
category should be listed as ``Indirect Costs'' under that category. 
Indirect costs are allowable only if an applicant has a federally 
approved indirect cost rate. A copy of the institution's negotiated 
indirect cost rate as issued by the cognizant federal agency must be 
attached to the budget sheets when submitting an application.
    Make sure that the amount shown on the HUD 424, the budget forms, 
and on all other required program forms is consistent and the budget 
totals correct. Remember to check addition in totaling the categories 
on the HUD 424-C and HUD 424-CB form so that all items are included in 
the total. If there is an inconsistency between any of the forms 
required, the HUD 424-C will be used. If upon checking the addition HUD 
finds that an applicant has added incorrectly, the HUD 424-CB will be 
revised accordingly. Please note that this would be considered a 
substantive rather than a technical error. If this correction puts an 
application over the grant maximum, the applicant will not be able to 
correct the amount requested and the application will be disqualified.

[[Page 21127]]

Rating Factor 4: Leveraging Resources (10 Points)

    This factor addresses the ability of the applicant to secure 
community resources that can be combined with HUD's grant funds to 
achieve the program's purpose.
    In evaluating this factor, HUD will consider the extent to which 
the applicant established partnerships with other entities to secure 
additional resources to increase the effectiveness of the proposed 
activities. Resources may include funding or in-kind contributions, 
such as services or equipment, allocated to the purpose(s) of the 
grant. Resources may be provided by governmental entities (e.g. the 
tribe, federal government (Bureau of Indian Affairs, Department of 
Health and Human Services, and Department of Education)), public or 
private nonprofit organizations, for-profit private organizations, or 
other entities. Applicants may also establish partnerships with other 
program funding recipients to coordinate the use of resources in the 
target area. Please note that the value of the time of individuals 
serving on the program's advisory board cannot be counted as an in-kind 
contribution. Overhead and other institutional costs (e.g., salaries) 
that the institution has waived may be counted. However, higher points 
will be awarded if an applicant secures leveraging resources from 
sources outside the institution. Examples of potential sources for 
outside assistance are:
    [sbull] State and local governments
    [sbull] Tribe/Tribally Designated Housing Entities
    [sbull] Local or national nonprofit organizations
    [sbull] Banks and/or private businesses
    [sbull] Foundations
    [sbull] Faith-based and other community based organizations.
    For each match, cash or in-kind contribution, a letter of 
commitment, memorandum of understanding, or agreement must be provided 
that shows the extent and firmness of the commitments of leveraged 
funds (including any commitment of resources from the applicant's own 
institution) in order for these resources to count in determining 
points under this factor. Resources will not be counted for which there 
is no commitment letter, memorandum of understanding or agreement, nor 
quantified level of commitment. Letters, memoranda of understanding, or 
agreements must be submitted from the provider on the provider's 
letterhead and be included with the application package. The date of 
the letter, memorandum of understanding, or agreement from the CEO of 
the provider organization must be dated no earlier than the date of 
this published SuperNOFA. Applicants that do not include evidence of 
leveraging will receive zero (0) points for this Factor.
    A firm commitment letter, memorandum of understanding, or agreement 
must address the following:
    (a) The cash amount contributed or dollar value of the in-kind 
goods and/or services committed (If a dollar amount and use is not 
shown, the source cannot be counted towards the match requirement);
    (b) Specifically indicate how the match is to be used;
    (c) The date the match will be made available and a statement that 
describes the duration of the contribution. If any of the matching 
sources are for more than one year, the commitment letter, memorandum 
of understanding, or agreement must state the number of years, the per 
year commitment, and the total commitment. Without this statement, HUD 
will assume that the commitment is for only one year;
    (d) Any terms and conditions affecting the commitment, other than 
receipt of a HUD grant; and
    (e) The signature of the appropriate executive officer authorized 
to commit the funds and/or goods and/or services. Please remember that 
only items eligible for funding under this program can be counted as a 
match.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    This factor reflects HUD's goal to embrace high standards of 
ethics, management, and accountability. The factor measures the 
applicant's commitment to assess their performance to achieve the 
program's proposed objectives and goals. Applicants are required to 
develop an effective, quantifiable, outcome-oriented evaluation plan 
for measuring performance and determining that objectives and goals 
have been achieved.
    ``Outcomes'' are benefits accruing to institutions of higher 
education and/or communities during or after participation in the TCUP 
program. Applicants must clearly identify the outcomes to be measured 
and achieved. Examples of outcomes are increasing the number of 
facilities built or renovated, by a certain percentage (e.g. 
rehabilitation of a student union building primarily for the use of 
students).
    In addition, applicants must establish interim benchmarks and 
outputs that lead to the ultimate achievement of outcomes. ``Outputs'' 
are the direct products of the program's activities. Examples of 
outputs are the number of new on campus facilities renovated, or the 
number of new dormitories built. Outputs should produce outcomes for 
the program. At a minimum, an applicant must address the following 
activities in the evaluation plan:
    (a) Short and long term objectives to be achieved;
    (b) Actual accomplishments against anticipated achievements;
    (c) Measurable impacts the grant will have on the community in 
general and the target area or population;
    (d) The impact the grant will have on the long term commitment of 
the University to the faculty and students to provide opportunities to 
reward and continue this type of work; and
    (e) The impact the grant will have on assisting the university to 
obtain additional resources to continue this type of work at the end of 
the funding period of this grant award.
    This information should be provided in a Logic Model format. This 
form and information can be found in the General Section of this 
SuperNOFA.

VI. Application Submission Requirements (For All Programs)

    A complete application package must include an original signed 
application, three copies, and one computer disk of the application (in 
Word 6.0 or higher) of the items listed below. In order to be able to 
recycle paper, applications should not be submitted in bound form; 
binder clips or loose-leaf binders are acceptable. Please do not use 
colored paper. Applications must be submitted on 8\1/2\ by 11 inches 
paper, double-spaced on one side of the paper, and printed in a 
standard Times Roman 12-point font. Each page should include the 
applicant's name and be numbered. Each section should be tabbed 
sequentially. The application narrative including the statement of 
work, tables, and maps must not exceed 75 pages (excluding forms, 
budget narrative, assurances and commitment letters). The double-
spacing requirement applies to all parts of the application including 
agreements and tables. Please note that although submitting pages in 
excess of the page limit will not disqualify an application, HUD will 
not consider the information on any excess page. This may result in a 
lower score or failure to meet a threshold. Please make sure that all 
items are submitted in the order listed below. Except where a 
particular form may direct otherwise, all forms included in an 
application, as well as the transmittal letter, must be signed by

[[Page 21128]]

the Chief Executive Officer (this is generally the President or 
Provost) or an official authorized legally to make a commitment on 
behalf of the institution. If a designee signs, the application must 
contain a copy of the official designation of signatory authority.
    Applicants applying for funding under more than one of the programs 
included in this NOFA will need to produce separate applications for 
each program. However, applicants may use portions of an application to 
fulfill certain requirements of all of the applications. There is no 
separate application kit for these programs. Note: All OUP programs are 
included under this NOFA (excluding the Early Doctoral Student Research 
Grant, the Doctoral Dissertation Research Grant, the Community 
Development Work Study Grant Programs, and the Community Outreach 
Partnerships Center Community Futures Demonstration). Applicants are 
advised to review each program for specific requirements. Therefore, it 
is important for applicants to thoroughly read the information 
presented in this NOFA. Please include each item in the order listed 
below:
    (1) HUD 424 ``Application for Federal Assistance''. Instructions 
for completing this form are found on the back of the first page of the 
form. Please remember the following: (a) The full grant amount should 
be entered in block 15, not the amount for just one year; (b) Include 
the name, title, address, telephone number, facsimile number, and email 
address of the designated contact in block 5. This is the person who 
will receive the reviewer comments; therefore please ensure the 
accuracy of the information (c) the correct Employer Identification/Tax 
ID number in block 6. This form should be signed by the appropriate 
official (d) Block 10, the Catalog of Federal Domestic Assistance 
Number for the program from which funding is requested, and (e) the 
project's proposed start date and completion date. For all projects the 
start date should be September 1, 2003. The Catalog of Federal Domestic 
Assistance (CDFA) numbers (Item 10) for all OUP programs are as 
follows:

--Community Outreach Partnership Center Programs 14.511
--Historically Black Colleges and Universities 14.237
--Hispanic Serving Institutions Assisting Communities 14.514
--Alaska Native/Native Hawaiian Institutions Assisting Communities 
14.515
--Tribal Colleges and Universities Program 14.519

    (2) Transmittal Letter. The letter should contain the following:
    (a) A statement certifying that the institution is an eligible 
institution because it meets the requirement of the specific program 
from which funding is being sought; (b) the institution is a two-or 
four-year institution; and (c) the institution of higher education is 
fully accredited. This assurance must state not only the name of the 
accrediting agency but also that the particular accrediting agency is 
recognized by the U.S. Department of Education (or, for applicants to 
the Tribal Colleges and Universities Programs, that the institution has 
applied for accreditation by a regional instructional accrediting 
association recognized by the U.S. Department of Education). Applicants 
can also use the transmittal letter as one way to demonstrate the 
President's commitment to the institutionalization of the program. This 
letter must be signed by the Chief Executive Officer (usually the 
President or Provost) of the institution. If the Chief Executive 
Officer has delegated this responsibility to another official, that 
person may sign, but a copy of the delegation must be included or 
stated in the letter. (Note: If applying for funding under the TCUP 
program, applicants must also address whether their institution is a 
department or agency of a tribal government and is thus claiming 
exemption from Davis-Bacon labor standards and the non-discrimination 
provision of section 109 of the Housing and Community Development Act 
of 1974).
    (3) Application Checklist. Applicants must include the completed 
checklist in their application. On the checklist, indicate the page 
number where each of the items can be found in the application (See 
Appendix A).
    (4) Abstract. Applicants must include a two-page summary of the 
proposed project. Please include the following:
    (a) The designated contact person, including phone number, 
facsimile number, and email address;
    (b) University's name, department, mailing address, telephone 
number, facsimile number, and email address; and
    (c) The principal investigator for the project, including phone 
number, facsimile number, and email address.
    (5) Narrative statement addressing the Factors for Award. HUD will 
use the narrative response to the ``Factors for Award'' to evaluate, 
rate, and rank applications. This statement is the main source of 
information. Therefore, it is very important that applicants become 
fully familiar with each of the rating factors above since all OUP 
programs (excluding the Early Doctoral Student Research Grant, the 
Doctoral Dissertation Research Grant, the Community Development Work 
Study Programs, and the Community Outreach Partnership Centers Housing 
and Community Futures Demonstration) are included in this NOFA. 
Applicants are advised to review each factor carefully for program 
specific requirements. The response to each factor should be concise 
and contain only information relevant to the factor, but detailed 
enough to address each factor fully. Please do not repeat material in 
response to the five factors; instead focus on how well the proposal 
responds to each of the factors. In factors where there are subfactors, 
each subfactor should be presented separately, with the short title of 
the subfactor presented. Make sure to address each subfactor and 
provide sufficient information about every element of the subfactor.
    The application narrative including the statement of work, tables, 
and maps must not exceed 75 pages (excluding forms, budget narrative, 
assurances, and letters of leveraging commitments).
    (a) Statement of Work. The Statement of Work (SOW) under the 
Narrative Statement section of the application (Factor 3) should 
clearly identify and incorporate all proposed eligible activities in 
the application and detail how the proposed work will be accomplished. 
Specifically, the SOW must: briefly describe the target population that 
will be assisted with grant funds (See Factor for Award 2 for 
the kind of information that should be included).
    (1) Arrange the presentation of related major activities by project 
functional category, (a) Summarize each activity, (b) Delineate the 
major tasks involved in carrying out each activity, (c) Indicate the 
sequence in which these tasks will be performed, noting areas of work 
that will be performed simultaneously and continually during the life 
of the grant and, (d) Identify the key personnel responsible for 
carrying out the activity (HUD recommends Applicant use a milestone 
chart to present the information above). Applicants applying for 
funding under the HBCU, HSIAC, AN/NHIAC, and TCUP programs should 
describe how each proposed activity meets one of the three Community 
Development Block Grant Program (CDBG) national objectives. The 
sequence and duration should be presented in six-month intervals for 
the entire life of the grant (See Allocation of Funding, Period of 
Performance, Match Requirement).
    (2) Identify the specific number of quantifiable, major, 
intermediate, and end products and objectives (e.g., the

[[Page 21129]]

number of individuals in the community that will receive job training) 
the proposal aims to deliver by the end of the grant period as a result 
of the work performed.
    (3) State the impact objectives the project intends to achieve in 
measurable terms along with deadlines for meeting them (e.g., number of 
persons obtaining jobs that pay more than minimum wage, or persons 
entering full time employment with benefits).
    (4) Briefly discuss, with specific details:
    (a) How the proposed major activities do not duplicate those of 
other entities in an applicant's target community; and
    (b) Are appropriate for an institution of higher education to 
undertake in light of its teaching, research, and service missions (if 
applicable).

    Note: If applying for a COPC New Directions Grant, the Statement 
of Work should also describe the new directions proposed in the 
application either the new activities or new target neighborhoods--
and how these differ from those in the previous COPC grant.

    (6) Budget. The budget documents should follow the statement 
addressing Factor 3. The budget presentation should be consistent with 
the Statement of Work and include the following:
    (a) HUD 424-C ``Budget Summary for Competitive Grants Programs''
    (b) (HUD 424-CB ``Grant Application Detailed Budget''
    Applicants should provide a budget for the funding period of the 
program for which they are applying (See Allocation of Funding, Period 
of Performance, and Match Requirement).
    (c) Budget-Narrative. A narrative of how the applicant arrived at 
costs for line items over $5,000. All budget forms must be completed in 
full.
    Make sure that the amount shown on the HUD 424, the budget forms, 
and on all other required program forms is consistent and the budget 
totals correct. If there is an inconsistency between any of the forms 
required, the HUD 424-C will be used. If upon checking the addition HUD 
finds that an applicant has added incorrectly, the HUD 424-CB will be 
revised accordingly.
    (d) Indirect Cost Rate. A copy of the negotiated indirect cost rate 
as issued by the cognizant federal agency.
    (e) Explanation of Compliance with Limitation on Research 
Allocation. (Applicable only to applicants applying for funding under 
the COPC program). Applicants must demonstrate that not more than 25% 
of the total budget (including federal and matching funds) will be 
allocated to research activities. An applicant must use the Form HUD-
30002, ``Community Outreach Partnership Centers Breakdown of Outreach 
and Research Activities'' to demonstrate this. This form is included in 
Appendix B. For purposes of this form, all costs (including 
administrative costs) must be categorized or apportioned as either 
research or outreach, as appropriate.
    (f) Explanation of Compliance with Matching Requirement. 
(Applicable only to applicants applying for funding under the COPC 
program). This NOFA spells out the matching responsibilities for 
applicants applying for funds under COPC. Note that research requires a 
50 percent match, while outreach activities require a 25 percent match. 
Match requirements are based on Total Project Costs, not the federal 
grant amount. In order to avoid confusion about the calculation of the 
match, an example is provided.
    Assume that the total project cost for a New COPC Grant was 
$500,000, with $125,000 for research and $375,000 for outreach. Note 
that this project meets the requirement that no more than one-quarter 
of the total project costs be allocated for research. The total amount 
of the required match would be $156,250. The research match would be 
$62,500 ($125,000 x 50 percent) and the outreach match would be $93,750 
($375,000 x 25 percent). The federal grant requested would be $343,750 
($500,000 minus the match of $156,250). In calculating the match, 
administrative costs should be applied to the appropriate attributable 
outreach or research component.
    Applicants must use Form ``HUD-30001, Community Outreach 
Partnership Centers Matching Requirements'' (included in Appendix B) to 
show how the match requirements have been met. Under each category, 
list the specific project activities. Only the dollar totals for 
research and outreach activities should be listed; costs by activity do 
not need to be listed. For the purposes of this form, administrative 
costs should be allocated between research and outreach activities, as 
appropriate. Applicants must provide letters, memoranda of 
understanding or agreements that show the extent and firmness of 
commitments of leveraged funds (including an applicant's own resources) 
in order for these resources to count. Any resource for which there is 
no commitment letter will not be counted, nor will the resource be 
counted without the proposed level of commitment being quantified. Each 
letter must include a specific dollar amount and use of the funds. If a 
dollar amount and use is not shown, the source cannot be counted 
towards the match requirement (Applicable only to COPC) and Factor 4. 
(Note: While indirect costs can count towards meeting the required 
match, they will not be used to calculate the match percentage above 
the match requirement. Only direct costs can count in this factor). 
Letters, memoranda of understanding and agreements must be signed by an 
authorized representative of the funding source. If any matching 
sources are for more than one year, the commitment letter, memorandum 
of understanding, or agreement must state the number of years, the per 
year commitment, and the total commitment. Items eligible for program 
funding can be counted as match. Include matching documentation at the 
end of in the Narrative Statement Addressing the Factors for Award (see 
below). COPC program applicants only must include a multiple-page 
worksheet entitled ``HUD 30011 or HUD 30012, Verification of the 
Match,'' (included in Appendix B) which must be used to determine if a 
sufficient match has been provided. This worksheet must be included in 
the application. Please note on this form by each commitment listed if 
the match is an inside or outside match commitment.
    (7) Certifications. The following certifications and assurances 
must be included in all application packages. These forms must be 
signed by the Chief Executive Officer (or official designee) of the 
institution and can be downloaded from the HUD Web site at http://www.hud.gov.
    (a) Applicant Assurances and Certifications (HUD-424-B)
    (b) Disclosure of Lobbying Activities (SF-LLL)
    (c) Applicant/Recipient Disclosure/Update Report (HUD-2880)
    (d) Certification of Consistency with the Consolidated Plan (HUD-
2991)
    (e) Certification of Consistency with the EZ/EC/RC Strategic Plan 
(HUD-2990). Must be signed by the certifying official of the EZ/EC/RC. 
The General Section of the SuperNOFA provides procedures and guidelines 
required to certify that proposed grant activities are being conducted 
in the EZ/EC/RC that serve the residents of these areas, and are 
certified to be consistent with the area's strategic plan. (Note: 
Applicants applying for funding under the TCUP programs are not 
eligible to receive these bonus points.)
    (f) Acknowledgment of Receipt of Application (Form HUD-2993). To 
confirm that HUD has received the application package, please complete 
this form. Applicants are not required to include this form, but HUD 
recommends an applicant to do so.

[[Page 21130]]

    (g) Client Comments and Suggestions (Form HUD-2994). This form is 
included to solicit information from the most valuable source, the 
applicant. The changes that we have instituted this year are designed 
to make things easier for the applicant. If applicants complete and 
submit this form, it will help us to assess whether the changes have 
had the intended results. It will also guide us in our continuing 
efforts to improve the competitive grant process. Applicants are not 
required to complete this form.
    (h) Appendices. Applicants are not permitted to submit any 
appendices. Letters of commitment for matching funds should be included 
in the narrative response to Factor 4. An applicant may not submit 
general support letters or resumes or other back-up materials (unless 
an applicant is willing to have the latter count towards the page 
limits). Applicants should make sure that the Statement of Work and 
Narrative Statement addressing the ``Factors for Award'' contain 
sufficient detail to stand on their own, without the need for back-up 
material.
    (B) Final selection.
    If an application is in compliance with the applicable threshold 
requirements as defined in the General Section of this SuperNOFA and 
NOFA, as well as the applicable program requirements, it will be 
evaluated, rated, and ranked based on its total score on the program's 
rating factors. In order to be funded, an application must receive a 
minimum score of 75 points. HUD will fund applications for each program 
in this NOFA in rank order, until it has awarded all available program 
funds.
    If two or more applications have the same number of points, the 
application with the most points for Factor 3, Soundness of Approach, 
shall be selected. If there is still a tie, the application with the 
most points for Factor 4, Leveraging, shall be selected. HUD also 
reserves the right to make selections out of rank order to provide for 
geographic distribution of grantees. If HUD decides to use this option, 
it will do so only if two adjacent HUD regions do not yield at least 
one fundable grantee on the basis of rank order. If this occurs, HUD 
will fund the highest-ranking applicant within the two regions as long 
as the minimum score of 75 points is achieved.
    HUD reserves the right to reduce the amount of funding requested in 
order to fund as many highly ranked applications under each program in 
this NOFA as possible. Additionally, if funds remain after funding the 
highest ranked applications, HUD may fund part of the next highest-
ranking application in a given program area. If an applicant turns down 
the award offer, HUD will make the same determination for the next 
highest-ranking application. If funds remain after all selections have 
been made, the remaining funds will be carried over to the next funding 
cycle's competition.
    (C) Negotiations. After all selections have been made, HUD may 
require winning applicants to participate in negotiations to determine 
the specific terms of a program's Statement of Work and/or Grant 
Budget. In cases where HUD cannot successfully conclude negotiations, 
or an applicant fails to provide HUD with requested information, an 
award will not be made. In such instances, HUD may elect to offer an 
award to the next highest-ranking applicant, and proceed with 
negotiations with that applicant.

VII. Other Matters

    The provisions of the HUD Reform Act of 1989 that apply to this 
NOFA are explained in the General Section of the SuperNOFA.
    (A) Debriefing. The General Section of the SuperNOFA provides the 
procedures for requesting a debriefing. All requests for debriefings 
must be made in writing and submitted to Armand Carriere of HUD's 
Office of University Partnerships, Robert C. Weaver Building, 451 7th 
St., SW., Room 8106, Washington, DC 20410. Applicants may also write to 
Mr. Carriere via email at [email protected].
    (B) Administrative. Grants awarded under this NOFA will be governed 
by the provisions of 24 CFR part 84 (Grants and Agreements with 
Institutions of Higher Education, Hospitals and Other Non-Profit 
Organizations), A-21 (Cost Principles for Education Institutions) and 
A-133 (Audits of States, Local Governments, and Non-Profit 
Organizations). Applicants can access the OMB circulars at the White 
House website at www.whitehouse.gov/omb/circulars/index.html.

VIII. Corrections to Deficient Applications

    The General Section of this SuperNOFA provides the procedures for 
corrections to deficient applications.

IX. Site Control

    Where grant funds will be used for acquisition, rehabilitation, or 
new construction an applicant must demonstrate site control. If the 
recipient cannot demonstrate control of a suitable site within one year 
after initial notification of award of assistance, HUD may recapture or 
deobligate any award for assistance. (This is not applicable to 
applicants applying for funding under COPC).

X. Environmental Requirements

    (A) COPC Program. In accordance with 24 CFR 50.19 (b) of the HUD 
regulations, activities under the COPC program are categorically 
excluded from the requirements of the National Environment Policy Act 
and are not subject to environmental review under related laws and 
authorities.
    (B) HBCU, HSIAC, AN/NHIAC, and TCUP Programs. Selection for award 
does not constitute approval of any proposed sites. Following selection 
for award, HUD will perform an environmental review of activities 
proposed for assistance in accordance with 24 CFR part 50. The results 
of the environmental review may require that proposed activities be 
modified or proposed sites be rejected. Applicants are particularly 
cautioned not to undertake or commit funds for acquisition or 
development of proposed properties prior to HUD approval of specific 
properties or areas. An application constitutes an assurance that the 
institution will assist HUD to comply with part 50; will supply HUD 
with all available and relevant information to perform an environmental 
review for each proposed property; will carry out mitigating measures 
required by HUD or select alternate property; and will not acquire, 
rehabilitate, convert, demolish, lease, repair, or construct property 
and not commit or expend HUD or local funds for these program 
activities with respect to any eligible property until HUD approval of 
the property is received. In supplying HUD with environmental 
information, applicants should use the same guidance as provided in the 
HUD Notice CPD-99-01 entitled ``Field Environmental Review Processing 
for HUD Colonias Initiative (HCI) Grants'' issued January 27, 1999.

XI. Authority

    The COPC program is authorized under the Community Outreach 
Partnership Act of 1992 (42 U.S.C. 5307 note; the ``COPC Act''). The 
COPC Act is contained in section 851 of the Housing and Community 
Development Act of 1992 (Pub. L. 102-550, approved October 28, 1992) 
(HCD Act of 1992). Section 801(c) of the HCD Act of 1992 authorized 
$7.5 million for each year of the 5-year demonstration to create 
Community Outreach Partnership Centers as authorized in the COPC Act. 
Division K of the Consolidated Appropriations Resolution, 2003 (Pub. L. 
108-7, approved February 20, 2003) continued the program beyond the

[[Page 21131]]

initial five-year demonstration by providing funding for Community 
Outreach Partnership Centers for FY 2003.
    The HBCU program is authorized under section 107 (b) (3) of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5307 (b) (3)), 
which was added by section 105 of the Department of Housing and Urban 
Development Reform Act of 1989 (Pub. L. 101-235, approved December 15, 
1989). This program is governed by regulations contained in 24 CFR 
570.400 and 570.404, and in 24 CFR part 570, subparts A, C, J, K, and 
O.
    The HSIAC, AN/NHIAC, and TCUP programs were approved by the 
Congress under the conference report accompanying the CDBG 
appropriation for section 107, as part of the FY2003 Consolidated 
Appropriations Resolution (Pub. L. 108-7). These programs are being 
implemented through this NOFA and the policies governing its operation 
are contained herein.

XII. Appendices

    The application checklist, non-standard forms required for the 
programs, and the list of previously funded and unfunded HBCUs follow 
in Appendices A-C.

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21153]]



Funding Availability for Universities and Colleges: Community Outreach 
Partnership Centers (COPC) Community Futures Demonstration

Program Overview

    Purpose of the Program. The purpose of the Community Outreach 
Partnership Centers (COPC) Community Futures Demonstration is to 
provide funds to schools of architecture, planning or design at two-
year colleges, four-year colleges, and universities to establish and 
operate Community Outreach Partnership Centers (COPCs) to:
    (1) Develop case study housing plans and designs that address 
community housing needs as described below; or
    (2) Develop long-range plans for local communities that address 
future growth and development trends in the metropolitan area or 
region.
    Available Funds. Up to $1.955 million from the Fiscal Year (FY) 
2003 Consolidated Appropriation Resolution for the Community Outreach 
Partnership Centers Program (COPC).

Additional Information

    Applicants interested in applying for funds under this NOFA should 
carefully review the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date, Addresses, Submission Procedures, Further 
Information, and Technical Assistance

    Application Due Date. A completed application package is due on or 
before June 24, 2003.
    Address for Submitting Applications. A completed application 
package consists of one original signed application, three copies, and 
one computer disk (in Word 6.0 or higher) of the application. This 
package must be submitted to the following address: Processing and 
Control Branch, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street SW., 
Room 7251, Washington, DC 20410. When submitting an application 
package, also include the following information on the outside of the 
envelope: (a) Office of University Partnerships, (b) COPC Community 
Futures Demonstration Application, (c) Room number 7251, (d) 
applicant's name and mailing address (including zip code), and (e) 
applicant's telephone number (including area code).
    Mailing and Receipt Procedures. Applicants must refer to the 
General Section of this SuperNOFA for detailed requirements governing 
application submission and receipt procedures.
    For Further Information and Technical Assistance. Applicants may 
contact HUD's Office of University Partnerships staff--Armand W. 
Carriere at (202) 708-3061, ext. 3852 or Susan Brunson at (202) 708-
3061, ext. 3181. Speech-or hearing-impaired individuals may call the 
Federal Information Relay Service TTY at 1 (800) 877-8399. Except for 
the ``800'' number, these numbers are not toll-free. Applicants may 
also reach Mr. Carriere via e-mail at [email protected] and 
Ms. Brunson at [email protected].
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about this NOFA and 
preparation of an application. For more information about the date and 
time of this broadcast, consult the HUD website at www.hud.gov.

II. Amount Allocated, Grant Size and Term, and Performance Period

    The amount allocated, grant size and term, and performance period 
for this NOFA are listed below:
    Amount Allocated. HUD will use up to $1.955 million to fund 
applications from accredited colleges and universities with programs in 
architecture, planning or design.
    Grant Size and Term. HUD will make two kinds of grants under this 
NOFA (1) Housing Design Grants and (2) Planning Grants.
    Applicants may apply for either (1) Housing Design Grants or (2) 
Planning Grants as described in Section III below, but not both.
    The minimum grant amount an applicant can request is $250,000 and 
the maximum amount is $400,000 for a three-year (36-month) performance 
period.
    Funds will be awarded on a competitive basis following the review 
of all applications that have passed the threshold review. A technical 
review will be conducted for all applications that pass the threshold 
review to rate and rank the applications according to the rating 
factors described in Section VII of this NOFA. Only applications that 
pass the threshold review will receive a technical review and be rated 
and ranked. A minimum score of 75 is required for award consideration. 
HUD will select the highest-ranking COPC Community Futures 
Demonstration application among the applications receiving the minimum 
score of 75 points. If funding remains after all the eligible 
applicants are awarded, these funds will be used to make awards to 
additional eligible applicants under the basic Universities and 
Colleges Community Outreach Partnership Centers (COPC) program, first 
to New Grants and then to New Directions applicants.

III. Purpose, Eligible Applicants, Program Description

    (A) Purpose. The overall purpose of the COPC Community Futures 
Demonstration is to assist schools of architecture, planning and design 
to carry out applied research and outreach activities that address 
problems of urban areas and to enable them to form partnerships with 
local communities to address either of the urban issues described 
below.
    COPC Community Futures awards are intended to focus on two specific 
urban problems that are cited in the COPC statute (housing and 
planning). They are also intended to further three of HUD's key Policy 
Priorities, as described in the General Section of the SuperNOFA: 
Policy Priority A--Providing increased homeownership and rental 
opportunities for low- and moderate-income persons, persons with 
disabilities, the elderly, minorities, and families with limited 
English proficiency; Policy Priority C--Encouraging accessible design 
features; Policy Priority G--Participation in Energy Star. Finally, the 
awards also intend to address three of HUD's key Strategic Goals that 
are described in the General Section of the SuperNOFA: (1) Increasing 
homeownership opportunities; (2) Promoting decent affordable housing; 
and (3) Strengthening communities.
    HUD is also interested in how the research activities undertaken 
with COPC funds can assist HUD in improving its programs. In the case 
of the Community Futures awards, HUD is interested in how the research 
carried out with these funds can assist HUD in improving its 
Consolidated Plan requirements and procedures, which are currently in 
the process of being simplified and improved as an element in the 
President's Management Agenda. An area of special interest is the use 
of Geographic Information System (GIS), visual simulation tools and 
other computer technologies to enhance citizen participation and other 
elements of the planning process.
    (B) Eligible Applicants. Public or private nonprofit institutions 
of higher education granting two- or four-year degrees in architecture, 
planning or design that are accredited by a national or regional 
accrediting agency recognized by the U.S. Department of Education may 
apply for COPC Community Futures awards. Institutions that were 
previous COPC grant recipients are eligible to apply for these

[[Page 21154]]

funds. Consortia of eligible institutions may also apply, as long as 
one institution is designated the lead applicant. Institutions applying 
for COPC Community Futures awards may also submit applications for the 
basic Universities and Colleges COPC program provided the application 
is from a different academic unit with its own administrative 
structure.
    (C) Program Description. In general, a Communities Futures COPC 
program must combine research and outreach with communities and local 
governments, and address the problems faced by urban areas. The statute 
creating COPC is very specific that COPC address problems of urban 
areas. Funded research must have a clear potential for solving 
significant urban problems. Applicants must have the capacity to apply 
the research results and work with communities and local institutions, 
including neighborhood groups, individual citizens, local governments, 
and other appropriate community stakeholders, in applying these results 
to specific, real-world community issues. More specifically, HUD will 
award COPC Community Futures Demonstration awards for research and 
outreach activities in one of the following two categories:
    (1) Housing Design Awards. HUD will award funds to eligible schools 
of architecture, planning or design to establish and operate Community 
Outreach Partnership Centers to develop case study housing plans that 
incorporate innovative technologies, good design, energy efficiency, 
universal design, accessibility and affordability, so that the homes 
can be economically viable and marketable in the local area.
    HUD is interested in stimulating the design and construction of 
housing that will reflect the future needs of communities in the United 
States. Applicants are expected to address the need for greater 
innovation and experimentation in the housing industry, training of 
architects and planners in affordable housing design, and merging 
quality affordable housing designs with market needs and constraints. 
These designs should be practicable but innovative, cost-effective but 
using cutting-edge technologies that incorporate good design.
    Case study homes should include the following features: Innovative 
building technologies, including green building technologies; 
accessibility; energy efficiency; and good design that is both 
innovative and contextual. Clearly, there is no single definition of 
good design; however, it should at least address the following 
criteria: (1) Meet user needs; (2) understand and respond to local 
context; (3) enhance the neighborhood; and (4) be built to last (See 
www.designadvisor.org for further guidance on these criteria).
    The extent to which the housing addresses market needs is as 
important as the physical design. The designs should be based on a 
careful cost analysis and priced to meet specific segments of the 
housing market--either specific income levels or specific populations 
(elderly, female-headed households, young couples, persons with 
disabilities, homeless persons, etc).
    Case study houses are not restricted to a single building type; 
they may consist of single-family homes, both detached or attached, 
multifamily units, or a combination of housing types that are suitable 
for different users. They may be rental or homeownership units, or 
single-room occupancy (SRO) units. They should be affordable to low- to 
moderate-income families (up to 80 percent of area median income). 
However, the affordable units may make up a portion of a larger complex 
that is market-rate; in fact, this may be a desirable strategy for 
meeting affordable housing needs. Several states, counties, or cities 
have established programs that provide for a set-aside of affordable 
units within a larger market-rate complex. HUD has also encouraged 
production of mixed-income housing, which combines affordable, market 
rate and subsidized housing as an alternative to previous approaches 
that separated these housing types. To the extent that the state or 
city has one of these programs, applicants may wish to adopt this 
strategy for their case study design.
    Case study housing designs developed in this grant category must be 
conceived in one or more target communities in cooperation with a 
private or non-profit developer or builder (or more than one developer 
or builder) that will agree to build one or more demonstrations of the 
product in the community by the end of the grant period. The process 
for designing and building case study homes should be a joint venture 
with a developer or builder that is committed to building the final 
product. HUD recognizes the difficulty in establishing such joint 
ventures, particularly when they involve innovative or experimental 
designs such as envisioned through this NOFA. However, HUD's intent is 
to ensure that the designs result in tangible benefits for local 
communities in the form of affordable housing. At the same time, 
applicants may develop a range of case study housing designs through 
this NOFA, provided that at least one of these designs results in 
actual construction.
    Within these parameters, the purpose of the Community Futures 
awards in housing design is to foster and stimulate creativity and 
innovation on the part of architecture schools in addressing housing 
needs in their communities. This NOFA is therefore purposefully non-
prescriptive in defining the specific characteristics that HUD is 
seeking in the design of case study homes. Rather, these should be 
determined by community needs, market economics, and financial 
feasibility. In addition to benefiting individual communities, HUD 
hopes that policy makers and the building industry can learn from these 
local case studies in shaping the next generation of affordable housing 
in the United States. HUD is interested in the completed designs and 
built projects as best practices for the building industry, and will 
share the results with key public and private sector leaders around the 
country.
    For the purposes of this grant, applicants must identify the 
community or communities that will be served by the COPC. Applicants 
may identify a community as either (1) one or more specific communities 
or neighborhoods; or (2) the entire city, in which case applicants must 
identify one or more demographic groups (e.g., elderly, homeless 
persons, persons with disabilities) or income groups (e.g., low-income, 
very low-income or moderate income) that will be served by the designs, 
and identify those neighborhoods in which the housing will be made 
available.
    (2) Planning Awards. HUD will award funds to eligible schools of 
architecture, planning or design to establish and operate Community 
Outreach Partnership Centers to develop, in cooperation with 
communities and local governments in a city, region or metropolitan 
area, a plan for the future of the cities or metropolitan areas for the 
next 20 years.
    HUD is interested in universities and colleges assisting 
communities to address the challenges associated with metropolitan 
growth. By 2050, the U.S. population is projected to grow from the 
current (2000) 281 million to 410 million. Much of this growth will 
take place in cities and metropolitan areas, but it will take place 
unevenly, depending on the geographic region of the country and other 
facts. Some metropolitan areas are growing, but their central cities 
continue to experience population losses. Planning awards in this 
category are intended to help communities assess the nature of these 
changes and develop policies, plans and strategies to effectively 
address them.

[[Page 21155]]

    Applicant's plans must identify trends that are changing the shape 
of the metropolitan area--both cities and counties--such as: growing 
populations, demographic shifts, expanding and more complex 
transportation needs, environmental challenges, changing land use 
patterns that include declining density and loss of open space and 
farmland, the shortage of affordable housing in locations close to jobs 
and employment centers, changing location and composition of job 
markets, and as our population ages, the need for accessible housing, 
among other things. Many of these emerging issues cannot adequately be 
addressed independently in an individual neighborhood or community, but 
are more appropriately addressed at the city, regional or metropolitan 
level. Neighborhoods, cities and suburbs must plan for their futures in 
ways that recognize and address these changes.
    Applicants should also be aware of HUD-required Consolidated Plans 
that cities (with populations of 50,000 or more) and urban counties 
(with populations of 200,000 or more) are required to prepare in order 
to receive Community Development Block Grant and other formula grant 
funds. These are 3-5 year plans that include a detailed housing needs 
assessment and specific actions that the community will take to address 
these needs, as well as other community and economic development 
activities. Community Futures Planning Grants provide applicants with 
an opportunity to build on these plans, by extending them to a regional 
level, using the housing needs data already gathered, and to expanding 
the time frame to 20 years. Regional councils of governments and 
metropolitan planning organizations also prepare long-range 
transportation and land use plans. Applicants should review these plans 
and identify appropriate steps to coordinate the planning efforts to be 
mutually supportive.
    The plans should identify key elements that impact the growth, 
financial stability and quality of life of cities or communities within 
a region, including but not limited to the following:
    [sbull] Population growth, diversity, and locational trends;
    [sbull] Changing housing needs, affordability issues, and the range 
of housing types needed by diverse income and population groups, 
including, for example, female-headed households, single households, 
the elderly and persons with disabilities;
    [sbull] Changing energy and transportation needs;
    [sbull] Changing job and employment markets; and
    [sbull] Infrastructure needs including water, sewer, and 
communications infrastructure that will allow for industry and business 
growth.
    Plans must also provide three or more scenarios that describe 
alternative population, land use and growth patterns that result from 
the assessment of these trends. The scenarios must address the physical 
shape of the urban landscape as it develops over the next two or more 
decades. Alternative development patterns may be modeled to include 
such factors as varying transportation assumptions, alternative density 
patterns, alternative employment, job growth and commercial development 
trends, and alternative environmental (air and water quality, and 
other) impacts. These scenarios must be documented in the form of one 
or more plans utilizing Geographic Information System (GIS) or other 
computer modeling tools as described below.
    Applicants must make use of GIS systems, visual simulation and 
other computer modeling tools to model and document alternative 
development trends. Applicants must also undertake an extensive 
outreach process in developing the plan. Outreach activities should 
include such activities as community meetings or design charettes, and 
other activities that include citizens and groups such as civic and 
non-profit organizations, elected and appointed officials, Chambers of 
Commerce, representatives of the business or development community, 
public housing resident management organizations and public housing 
officials. Web sites and other forms of electronic communications may 
be utilized.
    Additionally, completed plans must include a priority listing of 
projects designed to address local needs to be presented to community 
officials and other stakeholders for possible adoption as a roadmap for 
future development of the metropolitan area/region. Applicants should 
determine the appropriate scale for the plans.
    For the purpose of these Planning awards, the urban area covered 
may be city-wide, county-wide or metropolitan area-wide, since much of 
future growth will be across jurisdictional boundaries. Additionally, 
applicants must identify one or more local communities and model how 
the metro-wide changes being proposed for adoption will impact these 
communities, the implications of these changes for these communities, 
and local strategies for addressing them.

IV. Threshold Requirements

    In addition to the threshold requirements identified in the General 
Section of this SuperNOFA, applicants must meet the following 
additional threshold requirements for an application to be considered 
for funding. Applications that do not meet these requirements will be 
considered ineligible for funding and will be disqualified.
    (1) Applicants must be an eligible applicant, as referenced in 
Section III (B) ``Eligible Applicants.''
    (2) Applicants must create a Community Outreach Partnership Center 
(COPC) to carry out the proposed activities.
    (3) Applicants must meet the following, statutorily set match 
requirements:
    (a) Research Activities. 50 percent of the total project costs of 
establishing and operating research activities.
    (b) Outreach Activities. 25 percent of the total project costs of 
establishing and operating outreach activities.
    (4) Total project costs do not include the cost of any housing 
units built by a participating developer or builder. For each match, 
cash or in-kind contribution provided applicants must submit a letter 
of commitment. Applicants may not count as meeting the match 
requirements any costs that would be ineligible for funding under this 
NOFA. An applicant's match is evaluated as percentage of the total cost 
of establishing and operating research and outreach activities, not 
just the federal grant amount. Please remember to base the calculation 
on the Total Amount. Applicants must use Form HUD-30001 ``Community 
Outreach Partnership Centers Matching Requirements'' (included in 
Appendix A) to show how the match requirements have been met. 
Applicants are also required to include Form HUD-30012, ``Verification 
of the Match'' (included in Appendix A) to determine if a sufficient 
match has been provided. Please note on this form by each commitment 
listed if the match is an inside or outside commitment.
    (5) For each match, cash or in-kind contribution, a letter of 
commitment, memorandum of understanding, or agreement must be provided 
that shows the extent and firmness of the commitment of leveraged funds 
(including any commitment of resources from the applicant's own 
institution) in order for the resources to count in determining points 
under this factor. Resources will not be counted for which there is no 
commitment letter, memorandum of understanding, or

[[Page 21156]]

agreement, nor quantified level of commitment. Letters of commitment, 
memoranda of understanding or agreements must be submitted from the 
provider on the provider's letterhead and be included with the 
application package. The date of the letter of commitment, memorandum 
of understanding, or agreement from the CEO of the provider 
organization must be dated no earlier than the date of this published 
SuperNOFA. Applications that do not meet the required matching amounts 
will be disqualified from further review. A firm commitment letter, 
memorandum of understanding, or agreement must address the following:
    (a) The cash amount contributed or dollar value of the in-kind 
goods and/or services committed (If a dollar amount and use is not 
shown, the source cannot be counted towards the match requirement);
    (b) How the match is to be used;
    (c) The date the match will be made available and a statement that 
describes the duration of the contribution. If any of the matching 
sources are for more than one year, the commitment letter, memorandum 
of understanding, or agreement must state the number of years, the per 
year commitment, and the total commitment. Without this statement, HUD 
will assume that the commitment is for one year (e.g., $4,000 each year 
for three years totaling $12,000); and
    (d) Any terms and conditions affecting the commitment, other than 
receipt of a HUD grant.
    The commitment letter must be signed by the appropriate executive 
officer authorized to commit the funds and/or goods and/or services. 
Please remember that only items eligible for funding under this program 
can be counted as match.
    Please note that the value of the time of individuals serving on an 
applicant program advisory board cannot be counted as an in-kind 
contribution. Applicants may count overhead and other institutional 
costs (e.g., salaries) that the institution has waived.
    HUD is concerned that applicants should be providing hard dollars 
as part of their matching contributions to enhance the tangible 
resources going into targeted neighborhoods. Thus, while indirect costs 
can count toward meeting the required match, they will not be used to 
calculate the match percentage above the match requirement. Only direct 
costs can count in this factor.
    (6) The COPC must operate in an urban area. The statute creating 
COPC is very specific that programs address the problems of urban 
areas. HUD uses the Census definition of an urban area: a single 
geographic place with a population of 2,500 or more.
    (7) Applicants for a Housing Design award must provide evidence of 
a commitment from a private or non-profit developer or builder (or more 
than one developer or builder) to build at least one of the case study 
designs prepared with this NOFA. This must be in the form of a letter 
on the developer's or builder's stationery.

V. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, applicants must meet the following 
requirements that are specific to the COPC program Community Futures 
Demonstration awards:
    (1) Conduct the statutorily required activities described below:
    (2) Employ the research and outreach resources of the institution 
of higher education to solve specific urban problems identified by 
communities served by the Center;
    (3) Establish outreach activities in areas identified in the 
application as the communities to be served;
    (4) Establish a community advisory committee comprised of 
representatives of local institutions and residents of the communities 
to be served to assist in identifying local needs and advise on the 
development and implementation of strategies to address those issues;
    (5) Coordinate outreach activities in communities to be served by 
the Center;
    (6) Act as a clearinghouse for dissemination of information;
    (7) Develop instructional programs, convene conferences, and 
provide training for local community leaders, when appropriate; and
    (8) Exchange information with other Centers.
    (B) No more than 25 percent of the grant funds should be passed 
through to other entities.

VI. Eligible Activities

    (A) Housing Design Grant. Eligible activities for this category of 
Community Futures Demonstration awards include, but are not limited to, 
the following:
    (1) Researching and identifying housing market needs for one or 
more target communities.
    (2) Identifying the range of housing markets within an urban area 
based on current and anticipated demographic trends, including market 
needs of different income groups as well as diverse populations such as 
the elderly, persons with disabilities, younger families with children, 
empty-nesters, and racial and ethnic minorities.
    (3) Identifying relevant technologies that show promise for 
improving the durability, affordability and accessibility of housing, 
including but not limited to advanced technologies and building systems 
that have been identified through such sources as the PATH program 
(Partnership for Advancing Technology in Housing), Energy Star and 
other sources (See www. pathnet.org for further information on PATH's 
technology inventory, and www.energystar.gov for information on Energy 
Star).
    (4) Developing housing designs for construction of case study homes 
that demonstrate innovative technologies, energy efficiency, 
accessibility, green building techniques and/or other features of 
innovative design.
    (5) Preparing schematic designs of these houses for review by a 
panel of construction and design experts, such as builders, developers 
and local architects.
    (6) Preparing cost analyses of these designs that illustrate that 
they are suitable for and affordable, to one or more market segments in 
the local community.
    (7) Conducting focus groups, design charettes and/or other 
decision-making activities that engage residents and community leaders 
in providing input and responses to proposed designs and plans.
    (8) Preparing final designs and construction specifications, 
including where appropriate the use of industrialized housing systems.
    (9) Identifying a site or sites for construction of final ``case 
study'' design or designs.
    (10) Working with local HUD offices, other government agencies and 
private institutions (such as private foundations and lending 
institutions), non-profit and private sector developers to identify 
sources of financing for the case study houses.
    (11) Identifying regulatory barriers, including zoning 
restrictions, building codes, permitting or inspection standards that 
inhibit use of new technologies or construction methods, and assisting 
communities to eliminate or reduce excessive, unnecessary or 
duplicative regulations, processes or policies that restrict the 
development or rehabilitation or add to the cost of affordable housing 
(For further discussion of Regulatory Barriers, see the General Section 
of this SuperNOFA).
    (12) Implementing an information dissemination program for 
builders, investors and civic leaders that could

[[Page 21157]]

include exhibits of completed designs in suitable community locations, 
along with symposia, community workshops or other activities.
    (13) Providing continuing architectural services during the 
construction of the completed design by a non-profit or for-profit 
developer.
    (14) Conducting the required activities as described in Section V, 
``Program Requirements''.
    (B) Planning Awards. Eligible activities in the planning category 
include, but are not limited to, the following:
    (1) Making use of visual simulation, Geographic Information 
Systems, and other computer modeling tools in the planning process.
    (2) Preparing computer models that can simulate growth, market and 
investment demands as a tool for community planning and development 
decision-making.
    (3) Identifying and utilizing HUD approved Consolidated Plans, and 
other community, city or regional plans that may provide useful growth-
related data.
    (4) Partnering with economists and market analysts to determine 
market demands for housing and other needs.
    (5) Conducting symposia to educate local officials and residents.
    (6) Working with legal and regulatory authorities to resolve legal 
and regulatory issues that might limit housing development or growth 
options for the area.
    (7) Meeting and entering into agreements with local officials and 
community groups to establish priorities for plan implementation.
    (8) Conducting focus groups, charettes or other decision-making 
activities that involve communities in providing input and responses to 
proposed designs and plans.
    (9) Conducting the required activities as described in Section V, 
``Program Requirements''.
    (C) Both Grant Categories. In addition to eligible activities in 
each grant category described above, the following are eligible 
activities for both grant categories:
    (1) Convening meetings and providing staff support for Community 
Advisory Boards.
    (2) Incorporating relevant housing design and planning topics in 
the curriculum of architecture and planning schools, by offering design 
and planning courses and studios on relevant topics such as affordable 
housing, housing economics, real estate development, accessible design, 
energy efficient housing, and/or metropolitan growth.
    (3) Stipends or salaries for students (but the program cannot cover 
tuition and fees) while they are working with the COPC.
    (4) Faculty development, including paying for course time or summer 
support to enable faculty members to work with the COPC.
    (5) Leases for office space in which to house the Community 
Outreach Partnership Center, under the following conditions:
    (a) The lease must be for existing facilities not requiring 
rehabilitation or construction;
    (b) No repairs or renovations of the property may be undertaken 
with COPC funds; and
    (c) Properties in the Coastal Barrier Resource System designated 
under the Coastal Barrier Resources Act (16 U.S.C. 3501) cannot be 
leased with federal funds.
    (6) Up to 20 percent of the grant for reasonable grant 
administrative activities related to planning and execution of the 
project (e.g., preparation/submission of HUD reports). A detailed 
explanation of these costs is provided in the OMB circulars that can be 
accessed at the White House Web site at: whitehouse.gov/omb/circulars/
index.html.

VII. Ineligible Activities

    (A) Activities ineligible for funding under this program are as 
follows:
    (a) Any type of construction, rehabilitation, or other physical 
development. (Leveraged funds beyond the match requirements may be used 
for this purpose).
    (b) Routine operations and day-to-day administration of 
institutions of higher education, local governments or neighborhood 
groups.
    (c) Payment of court fines, judgments or fees imposed as a result 
of a court case or a settlement of a court case.

VIII. Application Selection Process

    (A) Two Types of Reviews. Two types of reviews will be conducted:
    (1) A threshold review to determine an application's eligibility; 
and
    (2) A technical review based on the rating factors listed below.
    Only those applications that pass the threshold review will receive 
a technical review and be rated and ranked.
    (B) Factors for Award Used to Evaluate and Rate Applications. The 
factors for evaluating, rating, and ranking an application and the 
maximum points for each factor are listed in this NOFA below. 
Applications must receive a minimum of 75 out of the total possible 
points to be considered for funding. The maximum number of points 
available under the program is 102. This includes the two RC/EZ/EC 
bonus points as described in the General Section of the SuperNOFA.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (15 Points)

    This factor addresses the extent to which an applicant has the 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner. The rating includes any faith-
based and other community-based organizations, sub-contractors, 
consultants, sub-recipients and members of consortia that are firmly 
committed to the project. In rating this factor, HUD will consider the 
extent to which the proposal demonstrates the knowledge and experience 
of the overall proposed project director and staff, including the day-
to-day program manager, consultants, and contractors in planning and 
managing the kind of programs for which funding is being requested. 
Experience will be judged in terms of recent, relevant, and successful 
knowledge and skills of the staff to undertake eligible program 
activities. HUD will consider experience within the last 5 years to be 
recent; experience pertaining to the specific activities being proposed 
to be relevant; and experience producing specific accomplishments to be 
successful. The more recent and substantial the experience of the 
staff, particularly the institution's own staff who will work on the 
project, in successfully conducting and completing similar activities, 
the higher the number of points an applicant can receive for this 
rating factor. The following categories will be evaluated:
    (1) Undertaking research, planning, design or outreach activities 
in specific communities to solve or ameliorate significant urban 
issues;
    (2) Undertaking projects with community-based organizations or 
local governments; and
    (3) Experience in conducting planning or design work, including 
outreach to community groups, local officials and business leaders.
    In addition, applicants should include information on project staff 
commitment to the project and position titles. Resumes of up to three 
pages each and position descriptions for up to three personnel (in 
addition to the project director and project manager) and a clearly 
delineated organizational chart for the project must be included.
    (b) Applicants should provide their qualifications to carry out the 
proposed activities as evidenced by academic background, training, and/
or relevant publications of project staff.

[[Page 21158]]

    (c) Provide information that reflects whether an applicant has 
sufficient personnel, or will be able to retain qualified experts or 
professionals to begin the proposed project immediately, and to perform 
proposed activities in a timely and effective fashion. Applicants 
should describe how principal components of the organization will 
participate in or support the project.
    (d) Applicants may submit attachments totaling no more than 25 
pages over and above the narrative statement that consist of copies of 
plans, drawings, photographs, award announcements or journal articles 
that illustrate previous projects, both for project staff and/or 
representative studio design projects completed by students that 
illustrate the type of design and plans anticipated to be carried as 
part of the proposed activities.

Rating Factor 2: Need/Extent of the Problem (10 Points)

    This factor addresses the extent to which there is a need for 
funding the proposed grant activities and an indication of urgency of 
meeting the need to participate in the target area. In responding to 
this factor, the proposal will be evaluated on the extent to which the 
level of need for the proposed activities and the importance of meeting 
the need are documented.
    Applicants should use statistics and analyses contained in at least 
one or more current data sources that are sound and reliable. The data 
provided must be current. In rating this factor, HUD will consider data 
collected within the last five years to be current. To the extent that 
the targeted community or community's Five (5) Year Consolidated Plan 
and Analysis of Impediments to Fair Housing Choice (AI) identify the 
level of the problem and the urgency in meeting the need, applicants 
should include references to these documents in the response to this 
factor.
    If the proposed activities are not covered under the scope of the 
Consolidated Plan and Analysis of Impediments to Fair Housing Choice 
(AI), indicate such in the proposal, and use other sound data sources 
to identify the level of need and the urgency in meeting the need. 
Other reliable sources include, but are not limited to, Census report 
data, HUD Continuum of Care gaps analysis and its E-Map (http//
:www.hud.gov/emaps), law enforcement agency crime reports, Public 
Housing Authorities' Comprehensive Plans, community needs analyses such 
as provided by the United Way, the applicant's institution, etc., and 
other sound and reliable appropriate sources. Needs in terms of 
fulfilling court orders or consent decrees, settlements, conciliation 
agreements, and voluntary compliance agreements may also be addressed. 
The data used should be specific to the area where the proposed 
activities will be carried out. Needs should be documented as they 
apply to the area where the activities will be targeted. Remember, the 
statute creating COPC is very specific that the program address 
problems of an urban area: a single geographic place (e.g., a city, 
town, or village, but not a county) with a population of 2,500 or more.

Rating Factor 3: Soundness of Approach (60 Points)

    This factor addresses the quality and cost-effectiveness of the 
proposed work plan. There must be a clear relationship among the 
proposed activities, community needs and the purpose of the funding to 
receive points for this factor.
    The factor will be evaluated based on the extent to which the 
proposed work plan will:
    (1) Perform Specific Services and/or Activities. (10 Points). 
Identify the specific services or activities to be performed in a 
Statement of Work, as well as the dollars allocated for each activity 
and task identified, milestones and timeline, and the budget for the 
activities proposed. HUD will make a judgment based upon the 
reasonableness and appropriateness of the budget to the dollars 
allocated for your work plan. In reviewing this sub-factor, HUD will 
consider the extent to which:
    (a) There is a clear research agenda with identifiable research 
activities and outcomes (e.g., reports, surveys, etc.) that identifies 
each task and who will be responsible for it, and is tied to the 
outreach agenda which does not duplicate research by the institution or 
others for the target area previously completed or currently underway. 
If other complementary research is underway, describe how the proposed 
research agenda would complement it.
    (b) There is a clear outreach agenda with identifiable outreach 
activities that involves the architecture, planning or design school 
(where appropriate in partnership with other disciplines, departments 
and administrative offices) and does not duplicate outreach activities 
by the institution or others for the target area previously completed 
or currently underway, that identifies each task and who will be 
responsible for it;
    (c) For research and outreach activities, applicants should briefly 
summarize the potential for the work to improve the performance of HUD 
programs, such as the citizen participation requirements and other 
features of the Consolidated Plan that communities must prepare in 
order to receive Community Development Block Grant or other formula 
grant funds.
    (2) Involve the communities to be served in a partnership for the 
planning and implementation of the proposed activities. (7 Points). In 
reviewing this subfactor, HUD will look at the extent to which:
    (a) One or more Community Advisory Committees have been formed or 
will be formed that represent the community's or communities' diversity 
(including businesses, community groups, residents, and others) to be 
served to develop and implement strategies to address the needs 
identified in Rating Factor 2. In addressing this subfactor, applicants 
must demonstrate by providing a list that such a committee(s) has 
already been formed and what groups described above it represents, or 
that they have secured the commitment of the appropriate persons to 
serve on the committee(s), rather than just describing generally the 
types of people whose involvement will be sought.
    (b) A range of neighborhood organizations and/or local government 
entities and or citizens have been involved in the proposed research 
and outreach activities.
    (c ) Innovative techniques and technologies have been identified to 
involve local citizens directly in the decision-making and design 
processes (e.g., computer mapping technologies or visual simulation 
tools, Internet, or other multi-media techniques).
    (3) Help solve or address an urgent problem as identified in Rating 
Factor 2 and will achieve the purposes of the proposed application 
within the award period. (6 Points). In reviewing this subfactor, HUD 
will look at the extent to which:
    (a) Specific time phased and measurable objectives are identified 
to be accomplished, including the proposed short and long term 
objectives to be achieved as a result of the proposed activities; the 
tangible and measurable impact the activities will have on the 
community in general and the target area or population in particular, 
including affirmatively furthering fair housing for classes protected 
under the Fair Housing Act; and the relationship of the proposed 
activities to other ongoing or proposed efforts to improve the 
economic, social or living environment in the impact area; and
    (b) The activities proposed are responsive to pressing and urgent 
needs, as identified in the documents described in Rating Factor 2.

[[Page 21159]]

    (c) Grant funds will pay for activities you conduct directly, 
rather than passing funds through to other entities. (No more than 25 
percent of your grant funds should be passed through to other 
entities.)
    (4) Work will yield innovative strategies or ``best practices'' 
that can be replicated and disseminated to other organizations, 
including nonprofit organizations, state and local governments. (4 
Points) In reviewing this subfactor, HUD will assess the applicant's 
demonstrated ability to disseminate results of research and outreach 
activities to other COPCs and communities. HUD will evaluate an 
applicant's past experience and the scope and quality of the plan 
provided to disseminate information on COPC results, strategies, and 
lessons learned through such means as conferences, cross-site technical 
assistance, publications, etc. The more proactive the plan for 
providing information to a wide range of audiences, the higher the 
number of points an applicant will receive.
    (5) Affirmatively further Fair Housing. (5 Points). This factor 
will be evaluated on the extent to which the application incorporates 
principles and techniques to affirmatively further fair housing, for 
example:
    (a) Working with other entities in the community to overcome 
impediments to fair housing, such as discrimination in the sale or 
rental of housing or in advertising, provision of brokerage services or 
lending;
    (b) Promoting fair housing choice through the expansion of 
homeownership opportunities and improved quality of services for 
minorities, families with children, and persons with disabilities;
    (c) Providing housing mobility counseling services; or
    (d) Ensuring that any housing units that result from this award are 
affirmatively marketed, either directly or through existing 
organizations.
    (6) HUD Policy Priorities. (6 Points). HUD encourages applicants to 
undertake specific activities that will assist the Department in 
implementing its policy priorities and that help the Department achieve 
its goals and objectives in FY 2004, when the majority of grant 
recipients will be reporting programmatic results and achievement. In 
addressing this factor, HUD will evaluate the extent to which the 
research and outreach will further and support HUD's priorities. The 
quality of the responses provided to one or more of HUD's priorities 
will determine the score an applicant can receive. For each policy 
priority addressed, applicants will receive one point. Applicants 
cannot receive more than six points. For the full list and explanation 
of each policy priority, please refer to the General Section of this 
SuperNOFA.
    (7) Result in the COPC planning and design functions and activities 
becoming part of the urban mission of the institution and funded in the 
future by sources other than HUD. (12 Points).
    In rating this subfactor, HUD will evaluate the extent to which the 
applicant addresses each of the following categories:
    (a) COPC activities relate to the institution's urban mission; 
demonstrate support and involvement of the institution's executive 
leadership (e.g., department chairs, deans, etc.); are linked by a 
formal organizational structure to other units related to outreach and 
community partnerships; are reflected in budget and planning documents 
of the university; are part of a climate that rewards faculty work on 
these activities through promotion and tenure policies; benefit 
students because they are part of the professional training programs at 
the institution (rather than just volunteer activities); and are 
reflected in the institution's curriculum. HUD will look at the 
institution's commitment to faculty and staff continuing work in COPC 
neighborhoods or replicating successes in other neighborhoods and to 
the long term commitment (e.g., three years after the start of the 
COPC) of hard dollars to COPC work. HUD will consider the extent to 
which the proposed activities are appropriate for an institution of 
higher education and are tied to the institution's teaching or research 
mission. In addition, HUD will consider the extent to which the 
faculty, staff and students from across disciplines are involved in 
COPC activities as a way of demonstrating the institution's commitment 
to these kinds of activities.
    (b) The institution has received commitments for funding from 
sources outside the university for related COPC-like activities in the 
targeted neighborhood or other distressed neighborhoods. Funding 
sources to be considered include, but are not limited to, local 
governments, neighborhood organizations, private businesses, and 
foundations.
    (8) Involvement of students in course work. (5 points). The extent 
to which COPC activities are incorporated or addressed in student 
course work, including design and planning studios. This should include 
students' developing an understanding of design and planning issues 
associated with the project, as well as the market economics associated 
with housing development. Please describe the proposed relationship 
between student work and the final plans or housing designs.
    (9) Budget. (5 points) The extent to which the budget presentation 
is consistent with the Work Plan and the dollars indicated on the HUD 
424 form. The budget submission should follow the narrative statement 
in this factor and include the following documents:
    (a) HUD 424-C ``Budget Summary for Competitive Grant Programs''. 
This budget form shows the costs for each budget category for the 
program's entire period of performance. For budgeting purposes, 
applicants should assume a start date of September 1, 2003.
    (b) HUD 424-CB ``Grant Application Detailed Budget''. This budget 
form shows the total budget by year and by line item for the program 
activities to be carried out. This will be a functional budget. Each 
year of the program should be presented separately.
    These forms must be completed in full. If an application is 
selected for award, the applicant may be required to provide greater 
specificity to the budget during grant agreement negotiations.
    (c) Budget Narrative. A narrative explanation of how the applicant 
arrived at the cost estimates, for any line item, including match 
items, over $5,000. For example, a van rental, $150 per month x 36 
months equals $5,400. The proposed cost estimates should be reasonable 
for the work to be performed and consistent with rates established for 
the level of expertise required to perform the work proposed in the 
geographical area. When necessary, quotes from various vendors or 
historical data should be used and included. All direct labor or 
salaries must be supported with mandated city/state pay scales, the 
Davis-Bacon rate (if applicable) or other documentation. When an 
applicant proposes to use a consultant, the applicant must indicate 
whether there is a formal agreement or written procurement policy. For 
each consultant, please provide the name, if known, hour or daily fee, 
and the estimated time on the project. For equipment, applicants must 
provide a list by type and cost for each item and explain how it will 
be used. Applicants using contracts must provide an individual 
description and cost estimate for each contract.
    Indirect costs attributed to a particular project functional 
category should be listed under the `` Indirect Cost'' category. 
Indirect costs are allowable only if an applicant has a federally 
approved indirect cost rate. A copy of the institution's negotiated 
indirect rate as issued by the cognizant federal

[[Page 21160]]

agency must be attached to the budget sheets when submitting an 
application.
    Make sure that the amount shown on the HUD 424, the budget forms, 
and all other required program forms are consistent and the budget 
totals correct. Remember to check addition in totaling the categories 
on the HUD 424-C and HUD 424-CB forms so that all items are included in 
the total. If there is an inconsistency between any of the forms 
required, the HUD 424-C form will be used. If upon checking the 
addition, HUD finds that an applicant has added incorrectly, the HUD 
424-CB will be revised accordingly. Please note that, because this 
would be considered a substantive rather than a technical error, if 
this correction puts an application over the grant maximum, the 
application will be disqualified.

Rating Factor 4: Leveraging Resources (5 Points)

    This factor addresses the applicant's ability to secure additional 
community resources that will aid in project implementation.
    (A) Planning Grants. HUD is looking for proposed plans to be 
adopted and resources allocated from the community to support the 
development. Example of resources are items such as detailed design 
drawings, construction specs, legal services, etc. that will be 
necessary to implement the priority projects once they are developed. 
The greater the number of resources provided by the community to 
support the policy priority projects, the higher the number of points 
that will be allocated.
    (B) Design Grants. HUD is interested in a private or non-profit 
developer (or a number of developers) building one or more of the 
proposed units; leveraging points will be awarded based on the total 
developer project costs as a percentage of the total COPC funding 
award. The higher the developer contribution, the higher the number of 
points. Resources may also include funding or in-kind contributions, 
such as services or equipment, allocated to the purpose(s) of the grant 
being sought.
    Resources may be provided by governmental entities, public or 
private nonprofit organizations, for-profit private organizations, or 
other entities willing to establish partnerships with the institution. 
Applicants may also establish partnerships with funding recipients in 
other grant programs to coordinate the use of resources in the target 
area. In order to receive points under this factor, applicants must 
submit letters of commitment. Applicants should follow the requirements 
for letters of commitment as defined in Section IV (5) ``Threshold 
Requirements''.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    This factor reflects HUD's goal of embracing high standards of 
ethics, management, and accountability. The factor measures the 
applicant's commitment to assess your performance to achieve the 
program's proposed objectives and goals. Applicants are required to 
develop an effective, quantifiable, outcome oriented evaluation plan to 
measure performance and determine that objectives and goals have been 
achieved. HUD will evaluate the extent to which applicants identify 
program activities, outcomes, interim benchmarks and performance 
indicators that will describe how performance will be measured, and a 
description of the steps that will be taken to make adjustments to the 
work plan if performance targets are not met within the established 
time frame associated with each activity.
    The evaluation plan must include a statement of outcomes and 
interim benchmarks or outputs. ``Outcomes'' are benefits accruing to 
institutions of higher education and/or communities during or after 
participation in the COPC Community Futures Demonstration. Outcomes are 
not the actual development of housing units or community plans. 
Examples of outcomes are: increasing the homeownership rate in a 
community by a certain percentage, increasing housing stability (e.g., 
increasing assets through additional savings, home equity), or 
increasing the availability of rental housing.
    In addition, applicants must establish interim benchmarks and 
outputs that lead to the ultimate achievement of outcomes. ``Outputs'' 
are the direct products of the program's activities. Examples of 
outputs are the number of houses designed and/or built and the number 
of homes rehabilitated. Outputs should produce outcomes for the COPC. 
At a minimum, an applicant must address the following activities in the 
evaluation plan:
    (a) Short and long term objectives to be achieved;
    (b) Actual accomplishments against anticipated achievements;
    (c) Measurable impacts the grant will have on the community in 
general and the target area or population;
    (d) The impact the grant will have on the long term commitment of 
the University to the community to continue this type of work; and
    (e) The impact this award will have on assisting the university to 
obtain additional resources to continue this type of work at the end of 
the funding period.
    This information should be provided in a Logic Model format. This 
form and information on how to use it can be found in the General 
Section of this SuperNOFA.

VI. Application Submission Requirements

    A complete application package must include an original signed 
application and three copies, and one computer disk of the application 
(in Word 6.0 or higher) of the items listed below. In order to be able 
to recycle paper, applicants should not submit applications in bound 
form. Binder clips or loose-leaf binders are acceptable. Applications 
must be submitted on 8\1/2\ by 11 inch paper, double-spaced, and 
printed in a standard Times Roman 12-point font. The doubled-spaced 
requirement applies to all parts of the narrative, but excludes 
materials submitted in the appendix (e.g., visual materials, such as 
copies of plans, drawings, photographs, award announcements or 
journals). Each page should include the applicant's name, be numbered, 
and each section tabbed sequentially.
    Please make sure that all items are submitted in the application in 
the order listed below. Except where a particular form may direct 
otherwise, all forms included in the application, as well as the 
transmittal letter, must be signed by the Chief Executive Officer 
(generally the President or Provost) or an official authorized to make 
a binding legal commitment for the institution. If a designee signs, 
the application must contain a copy of the official delegation of 
signatory authority.
    (A) Application Contents. All information needed to apply for 
funding is contained in this SuperNOFA. There is no separate 
application kit. Please include each item in the order listed below:
    (1) Transmittal Letter. The letter should contain the following:
    (a) A statement certifying that the institution is an eligible 
institution because it meets the requirement of the specific program 
from which funding is sought; (b) the institution is a two- or four-
year institution; and (c) the institution of higher education is fully 
accredited. This assurance must state not only the name of the 
accrediting agency but also that the particular accrediting agency is 
recognized by the U.S. Department of Education (or, for applicants to 
the Tribal Colleges and Universities Programs, that the institution has 
applied for accreditation

[[Page 21161]]

by a regional instructional accrediting association recognized by the 
U.S. Department of Education). Applicants can also use the transmittal 
letter as one way to demonstrate the President's commitment to the 
institutionalization of the program. This letter must be signed by the 
Chief Executive Officer (usually the President or Provost) of the 
institution. If the Chief Executive Officer has delegated this 
responsibility to another official, that person may sign, but a copy of 
the delegation must be included or stated in the letter.
    (2) HUD 424 ``Application for Federal Assistance''. Applicants 
should complete this form signed by the Chief Executive Officer of the 
institution. Community Outreach Partnership Centers Program is 14.511.
    (3) Application Checklist. This checklist, provided in Appendix A 
to this program NOFA, provides a listing of all of the items that need 
to be included in your application. Applicants must include the 
application items in the order that they are listed on the checklist. 
Applicants must include the completed checklist in their application. 
On the checklist, indicate the page number where each of the items can 
be found in the application.
    (4) Abstract. Applicants must include a two-page summary of their 
proposed project. Please include the following: Page (1), (a) project 
title, (b) name of College/University, (c) requested grant amount, (d) 
project address, (e) the designated contact person, including phone 
number, facsimile number, and e-mail address; page (2), (a) 
University's name, department, mailing address, telephone number, 
facsimile number, and e-mail address, and (b) the principal 
investigator for the project, designated contact person, including 
telephone number, facsimile number, and e-mail address, (c) brief 
description of the target area to be assisted through this grant, (d) 
needs of the target area to be addressed through the proposed 
activities, (e) the activities proposed to be funded, and (f) the 
grant's goals and objectives.
    (5) Documentation required to verify match.
    (a) Applicants are required to use form HUD-30001, ``Community 
Outreach Partnership Center Match Requirements'' (included in Appendix 
A) to show how the match requirements have been met.
    (b) Applicants must also include the multiple-page worksheet HUD 
30012, ``Verification of the Match'' (included in Appendix A) which 
must be used to determine if a sufficient match has been provided.
    (6) Narrative statement (including any required forms and 
submissions) addressing the following factors for award.
    Factor 1: Capacity. Include any resumes or documentation showing 
experience.
    Factor 2: Need. Include any documentation of need including any 
excerpts from the HUD approved Consolidated Plan.
    Factor 3: Approach. Include statement of work, required budget 
documentation and any explanatory budget narrative for line items over 
$5,000.
    Factor 4: Leveraging Resources. Include letters of commitment for 
the leveraged funds.
    Factor 5: Achieving Results and Program Evaluation.
    Application should not exceed 60 pages, including letters of 
commitment for the required match, tables and maps, but not including 
letters of matching commitments, the match calculation and budget 
forms. Please note that although submitting pages in excess of the page 
limit will not disqualify your application, HUD will not consider the 
information submitted on any pages that exceed the 60-page limit. 
Failure to include all the requested information within the page limit 
may result in a lower score for failure to meet a threshold.
    (7) Budget. The budget documents should follow the narrative 
addressing Factor 3. The budget presentation should be consistent with 
the Statement of Work and include the following:
    (a) HUD 424-C ``Budget Summary for Competitive Grants Programs''
    (b) HUD 424-CW ``Grant Application Detailed Budget''
    (c) Budget-Narrative. A narrative of how the applicant arrived at 
costs, for line items over $5,000. All budget forms must be completed 
in full.
    (8) Appendices. Applicants may submit appendices that include 
visual material illustrating past projects and awards, provided that 
they follow the requirements stated under Factor 1(d), above.
    (9) Certifications. The following certifications and assurances 
must be included in the application package. These forms must be signed 
by the Chief Executive Officer (or official designee) of the 
institution and can be downloaded from the HUD Website at www.hud.gov.
    (a) Applicant Assurances and Certification (HUD-424-B)
    (b) Disclosure of Lobbying Activities (SF-LLL)
    (c) Applicant/Recipient Disclosure/Update Report (HUD-2880)
    (d) Certification of Consistency with the Consolidated Plan (HUD-
2991)
    (e) Certification of Consistency with the EZ/EC/RC Strategic Plan 
(HUD-2990) (Must be signed by the certifying official of the EZ/EC/RC. 
The General Section of the SuperNOFA provides procedures and guidelines 
required to certify that proposed grant activities are being conducted 
in the EZ/EC/EEC/RC that serve the residents of these areas, and are 
certified to be consistent with the area's strategic plan.)
    (10) Acknowledgment of Receipt of Application (Form HUD-2993). To 
confirm that HUD has received the application package, please complete 
this form. Applicants are not required to include this form, but HUD 
recommends that an applicant do so.
    (11) Client Comments and Suggestions (Form HUD-2994). This form is 
included so that HUD can solicit information from the most valuable 
source, the applicant--our customers. Applicants are not required to 
complete this form.
    (B) Final selection. If an application is in compliance with the 
applicable threshold requirements as defined in the General Section of 
this SuperNOFA and NOFA, as well as the applicable program 
requirements, it will be evaluated, rated, and ranked based on its 
total score on the program's rating factors. In order to be funded, an 
application must receive a minimum score of 75 points. HUD will fund 
applications under this NOFA in rank order, until it has awarded all 
available program funds.
    If two or more applications have the same number of points, the 
application with the most points for Factor 3, Soundness of Approach, 
shall be selected. If there is still a tie, the application with the 
most points for Factor 1, Capacity, shall be selected. HUD also 
reserves the right to make selections out of rank order to provide for 
geographic distribution of grantees and a combination of planning and 
design awards. If this occurs, HUD will fund the highest-ranking 
application within the two categories in different locations as long as 
the minimum score of 75 points is achieved.
    HUD reserves the right to reduce the amount of funding requested in 
order to fund as many highly ranked applications in this NOFA as 
possible. Additionally, if funds remain after funding the highest-
ranked applications, HUD may fund part of the next highest-ranking 
application in a given program area. If an applicant turns down the 
award offer, HUD will make the same determination for the next highest-
ranking application. If funds remain after all selections have been 
made, the remaining funds will be made available

[[Page 21162]]

to applicants to the basic Colleges and Universities COPC program in 
the following order: New Grants; New Directions.
    (C) Negotiations. After all selections have been made, HUD may 
require winning applicants to participate in negotiations to determine 
the specific terms of a program's Statement of Work and/or Grant 
Budget. In cases where HUD cannot successfully conclude negotiations, 
or an applicant fails to provide HUD with requested information, an 
award will not be made. In such instances, HUD may elect to offer an 
award to the next highest-ranking applicant, and proceed with 
negotiations with that applicant.

VII. Other Matters

    The provisions of the HUD Reform Act of 1989 that apply to this 
NOFA are explained in the General Section of the SuperNOFA.
    (A) Debriefing. The General Section of the SuperNOFA provides the 
procedures for requesting a debriefing. All requests for debriefings 
must be made in writing and submitted to Armand Carriere of HUD's 
Office of University Partnerships, Robert C. Weaver Building, 451 7th 
Street SW., Room 8106, Washington, DC 20410. Applicants may also write 
to Mr. Carriere via e-mail at [email protected].
    (B) Administrative. Grants awarded under this NOFA will be governed 
by the provisions of 24 CFR part 84 (Grants and Agreements with 
Institutions of Higher Education, Hospitals and Other Non-Profit 
Organizations), A-21 (Cost Principles for Education Institutions) and 
A-133 (Audits of States, Local Governments, and Non-Profit 
Organizations). Applicants can access the OMB circulars at the White 
House website at whitehouse.gove/omb/circulars/index.html.
    (C) Davis-Bacon Requirements. Provided that no grant funds are used 
for construction or construction management of housing built as a 
result of this award, Davis-Bacon requirements do not apply, unless the 
funds used for construction are federal funds that carry their own 
Davis-Bacon requirements. Provision of architectural services, whether 
before or during construction, does not trigger Davis-Bacon 
requirements.

VIII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

IX. Environmental Requirements

    In accordance with 24 CFR 50.19(b) of the HUD regulations, 
activities assisted with Community Planning awards are categorically 
excluded from the requirements of the National Environmental Policy Act 
and are not subject to environmental review under the related laws and 
authorities.
    With regard to Housing Design awards, selection for award does not 
constitute approval of any proposed sites for construction of the 
housing designs. Following selection for award, HUD will perform an 
environmental review of sites proposed for construction of housing 
designs, in accordance with 24 CFR part 50. The results of the 
environmental review may require that the proposed activities be 
modified or that the proposed sites be rejected. Applicants are 
particularly cautioned not to undertake or commit funds for acquisition 
or development of proposed properties prior to HUD approval of specific 
properties or areas.
    An application constitutes an assurance that the institution will 
assist HUD to comply with 24 CFR part 50; will supply HUD with all 
available and relevant information to perform an environmental review 
for each proposed property; will carry out mitigating measures required 
by HUD or select an alternate property; and will not acquire, 
rehabilitate, convert, demolish, lease, repair or construct property 
and will not commit or expend HUD or local funds for these program 
activities with respect to any eligible property, until HUD approval of 
the property is received. In supplying HUD with environmental 
information, applicants should use the same guidance as provided in the 
HUD Notice CPD-99-01 entitled ``Field Environmental Review Processing 
for HUD Colonias Initiative (HCI) Grants,'' issued January 27, 1999.

X. Authority

    The COPC program is authorized under the Community Outreach 
Partnership Act of 1992 (42 U.S.C. 5307 note; the ``COPC Act''). The 
COPC Act is contained in section 851 of the Housing and Community 
Development Act of 1992 (Pub. L. 102-550, approved October 28, 1992 
(HCD Act of 1992). Section 801(c) of the HCD Act of 1992 authorized 
$7.5 million for each year of the 5-year demonstration to create 
Community Outreach Partnership Centers as authorized in the COPC Act. 
Division K of the FY 2003 Consolidated Appropriations Resolution (Pub. 
L. 108-7, approved February 20, 2003) continued the program beyond the 
initial five-year demonstration by providing funding for Community 
Outreach Partnership Centers for FY 2003. Applicants are encouraged to 
familiarize themselves with the provisions of the statute on HUD's 
SuperNOFA website at www.hud.gov.

XI. Appendix A

    Appendix A, which follows, includes the non-standard forms required 
for this NOFA.

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21173]]



Funding Availability for the Early Doctoral Student Research Grant 
Program and Doctoral Dissertation Research Grant Program

Program Overview

    Purpose of the Programs. The purposes of the university partnership 
dissertation programs are:
    Early Doctoral Student Research Grant Program (EDSRG). To help 
eligible doctoral students cultivate their research skills through the 
preparation of research manuscripts that focus on housing and urban 
development issues; and
    Doctoral Dissertation Research Grant Program (DDRG). To assist 
Ph.D. candidates to complete their research and dissertations on 
housing and urban development issues.
    Available Funds. Approximately $550,000 in Fiscal Year (FY) 2003 
appropriations is available for the Office of University Partnerships 
dissertation programs as follows.
    [sbull] Early Doctoral Student Research Program: $150,000
    [sbull] Doctoral Dissertation Research Grant Program: $400,000
    Application Deadline. May 27, 2003.
    Match. None.

Additional Information

    Doctoral students interested in applying for funding under these 
grant programs should carefully review the General Section of this 
SuperNOFA and the following additional information. There is no 
separate Application Kit for this NOFA.

Additional Information

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

    Application Due Date. A completed application package is due on or 
before May 27, 2003.
    Address for Submitting Applications. A completed application 
package consists of an original signed application, three copies, and 
one computer disk (in Word 6.0 or higher) of the application. All 
applications must be submitted via the United States Postal Service to 
the following address: University Partnerships Clearinghouse, c/o Danya 
International, 8737 Colesville Road, Suite 1200, Silver Spring, MD 
20910. When submitting an application package, indicate the following 
information on the outside of the envelope: Name of the program under 
which funding is being requested and the doctoral student's name and 
mailing address, including zip code. HUD will accept only one 
application package per doctoral student.
    For Further Information and Technical Assistance. Doctoral students 
may contact Armand Carriere of HUD's Office of University Partnerships 
at (202) 708-3061, ext. 3181 or Susan Brunson at (202) 708-3061, ext. 
3852. Speech- or hearing-impaired individuals may call the Federal 
Information Relay Service TTY at 1-800-877-8339. Except for the ``800'' 
number, these telephone numbers are not toll-free. Students may also 
reach Mr. Carriere via the Internet at [email protected] and 
Ms. Brunson at [email protected].
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential doctoral student applicants to learn more about 
the programs and preparation of applications. For more information 
about the date and time of this broadcast, consult the HUD Website at 
www.hud.gov.

II. Amount Allocated, Grant Size and Term, and Performance Period

    The amount allocated, grant size and term, and performance period 
are listed below for each program in this NOFA. HUD's authority for 
making funding available under this NOFA is Division K of the 
Consolidated Appropriations Resolution of 2003 (Pub. L. 108-7, approved 
February 20, 2003).
    Early Doctoral Student Research Grant Program--Approximately 
$150,000 will be made available for funding under this program.
    The maximum grant period is 12 months. The performance period will 
commence on the effective date of the grant agreement.
    The maximum amount that can be requested by a doctoral student for 
award is $15,000.
    Doctoral Dissertation Research Grant Program--Approximately 
$400,000 will be made available for funding under this program.
    The maximum grant period is 24 months. The performance period will 
commence on the effective date of the grant agreements.
    The maximum amount that can be requested by a doctoral student for 
award is $25,000.

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    Early Doctoral Student Research Grant Program (EDSRG). The purpose 
of the EDSRG program is to enable doctoral students enrolled at an 
accredited institution of higher learning recognized by the U.S. 
Department of Education to cultivate their research skills through the 
preparation of research manuscripts that focus on policy-relevant 
housing and urban development issues. The program also encourages new 
scholars to share their research findings through presentation at 
scholarly conferences and/or publication in refereed journals. The FY 
2003 EDSRG program seeks to fund research studies that may impact 
federal problem solving and policymaking and that are relevant to HUD's 
policy priorities and annual goals and objectives. (See the General 
Section of the SuperNOFA for discussion of these priorities and annual 
goals and objectives).
    Doctoral Dissertation Research Grant Program (DDRG). The purpose of 
the DDRG program is to enable Ph.D. candidates enrolled at accredited 
institutions of higher education recognized by the U.S. Department of 
Education to complete their research and dissertations on policy-
relevant housing and urban development issues. The FY 2003 DDRG program 
seeks to fund dissertations that may impact federal problem solving and 
policymaking and that are relevant to HUD's policy priorities and 
annual goals and objectives. (See the General Section of the SuperNOFA 
for discussion of these priorities and annual goals and objectives). 
Examples of topics addressing these issues (applicable to both the 
EDSRG and DDRG programs) include but are not limited to:
    (1) Increase Homeownership Opportunities
    (a) Increasing Minority Homeownership;
    (b) Simplifying the Homebuying Process (RESPA reform) and Reducing 
Settlement Costs;
    (c) Setting Appropriate Housing Goals for the GSEs;
    (d) Countering Predatory Lending;
    (e) Helping Low-Income Homeowners Avoid Default and Foreclosure;
    (f) Evaluating Housing Counseling.
    (2) Promote Decent Affordable Housing
    (a) Reducing Regulatory Barriers to the Development of Affordable 
Housing, as well as All Forms of Multifamily Housing
    (b) Developing Creative Strategies for Expanding the Availability 
of Affordable Housing. Strengthening the Delivery of HUD-Funded Rental 
Assistance and Assistance Provided Through the Low-Income Housing Tax 
Credit
    (c) Promoting Self-Sufficiency Among Residents of Public and 
Assisted Housing
    (d) Meeting the Housing-Related Needs of the Elderly

[[Page 21174]]

    (e) Meeting the Housing-Related Needs of Persons with Disabilities
    (f) Improving Housing Quality and Affordability through Technology 
and Design
    (3) Strengthen Communities
    (a) Ending Chronic Homelessness
    (b) Preventing Homelessness
    (c) Strengthening Cities
    (d) Meeting the Housing and Community and Economic Development 
Needs of Residents of High-Needs Areas, including the Colonias, 
Appalachia, the Mississippi Delta, and Tribal Areas.
    (4) Ensure Equal Opportunity In Housing
    (a) Reducing Housing Discrimination
    (b) Improving Housing Accessibility for Persons with Disabilities
    (5) Embrace High Standards Of Ethics, Management And Accountability
    (a) Reducing Fraud, Waste and Abuse in HUD-Funded Programs
    (b) Improving the Effectiveness of HUD Programs Through Program 
Evaluations
    (6) Promote Participation Of Faith-Based And Community 
Organizations
    (a) Strengthening the Capacity of Faith-Based and Community 
Organizations

(B) Eligible Applicants

    Doctoral students must demonstrate they meet the requirements 
listed under the grant program in this NOFA which they are requesting 
funding.
    Early Doctoral Student Research Grant Program (EDSRG). Doctoral 
students applying for funding under this program must meet the 
following requirements:
    (a) Be a U.S. citizen or resident alien currently enrolled, as a 
full-time student at an accredited doctoral program at an accredited 
institution of higher education (recognized by the U.S. Department of 
Education);
    (b) Have a major or concentration within a field related to housing 
and urban development;
    (c) Have not taken the preliminary/comprehensive examinations;
    (d) Completed at least two semesters or three terms of a doctoral 
studies program (depending on the course structure of the institution);
    (e) Have an assigned faculty advisor to supervise the research 
manuscript (provide the advisor's name, address, phone number, 
facsimile number, and email address);
    (f) Submit support letters/documentation from the chairperson of 
the doctoral student's department that confirms the student meets all 
of the conditions above and that the proposed research manuscript can 
be completed within the one-year grant period; and
    (g) Provide a support letter from the institution that includes in 
detail the type of support the university is providing. Such support 
might include tuition waivers, office space, equipment, computer time, 
assumption of indirect costs, or similar items the doctoral student 
might need in order to complete the required product. This support may 
not replace support or assistance the institution would otherwise 
provide to the student.
    Doctoral Dissertation Research Grant Program (DDRG). Doctoral 
students applying for funding under this program must meet the 
following requirements:
    (a) Be a U.S. citizen or resident alien (student) currently 
enrolled and matriculated who has been accepted into candidacy in an 
accredited doctoral program at an accredited institution of higher 
education recognized by the U.S. Department of Education;
    (b) Developed an approved dissertation proposal;
    (c) Provide documentation from the dissertation committee 
chairperson that confirms the following information;
    (1) By the application due date, the student's dissertation 
proposal has been accepted by the full dissertation committee and the 
student has been assigned a dissertation advisor (provide the advisor's 
name, address, phone number, facsimile number, and email address);
    (2) By September 1, 2003, the student will have satisfactorily 
completed all other written and oral Ph.D. requirements, including all 
examinations and defense of the proposal, except the dissertation; and
    (3) The proposed dissertation can be completed within the two-year 
grant period.
    (d) Provide a support letter from the institution that includes in 
detail the type of support the university is providing. Such support 
might include tuition waivers, office space, equipment, computer time, 
assumption of indirect costs, or similar items the student might need 
in order to complete the required product. This support may not replace 
support or assistance the institution would otherwise provide to the 
student.

(C) Eligible Activities

    Grant funds awarded for programs in this NOFA must be used to 
support direct costs incurred in the timely completion of the research 
product. Eligible costs include stipends, computer software, purchase 
of data, travel expenses to collect data, transcription services, and 
compensation for interviews.

(D) Ineligible Activities

    Grant funds awarded for programs under this NOFA may not be used to 
pay for tuition, computer hardware, or meals.

IV. Program Requirements

(A) Threshold Requirements

    All applicants requesting funding from programs under this NOFA 
must be in compliance with the applicable threshold requirements found 
in Section V of the General Section of the SuperNOFA and the 
requirements listed below to be evaluated, rated, and ranked. 
Applications that do not meet these requirements will be considered 
ineligible for funding and will be disqualified.
    (1) The doctoral student is eligible to apply (as defined in 
Section III (B) above) for the program for which they are requesting 
funding;
    (2) University sponsorship. The university shall enter into a Grant 
Agreement with HUD that provides for payment of the grant by HUD to the 
university and from the university to the approved doctoral student, 
and that further provides all required certifications and assurances. 
The university shall agree to provide as the Principal Investigator 
under the Grant Agreement a dissertation advisor or chairperson of the 
doctoral student's dissertation committee who shall supervise the 
student's work under the Grant Agreement.
    (3) The student has provided a letter from the department 
chairperson confirming the applicant is eligible as outlined in Section 
III (B).
    (4) The student's institution has provided a letter agreeing to 
provide support and outlines the specific type of support they will 
provide as part of this grant as defined in Section III (B).
    (5) The student has requested no more funding than the grant 
maximum allocated as defined in Section II Amount Allocated, Grant Size 
and Term, and Performance Period.

(B) Program Specific Requirements

    Early Doctoral Student Research Grant Program (EDSRG). Three 
thousand dollars of the grant funds will be held until the doctoral 
student's research manuscript has been completed and accepted for 
presentation at a conference or publication in a refereed journal by 
the end of the grant period, or a committee of three faculty members 
(including the faculty sponsor, as the principal investigator of the 
grant) has determined and certified to HUD that the manuscript is of 
high quality and

[[Page 21175]]

worthy of submission to conferences or journals and two copies of the 
research product are submitted to HUD in its final version.
    Doctoral Dissertation Research Grant Program (DDRG). Six thousand 
dollars of the grant funds will be held until the doctoral student's 
dissertation has been completed, approved by the committee, and two 
final copies are submitted to HUD in its final version.

    Note: Institutions that have had previously awarded grants under 
these programs terminated for non-performance and have outstanding 
funds owed to HUD resulting from the termination will be excluded 
from competition until the outstanding funds are repaid (Applicants 
must comply with the Delinquent Federal Debt Requirement as defined 
in Section V (B)(4) of the General Section of the SuperNOFA).

(C) Other Requirements (applicable to both grant programs)

    (1) Progress reporting. All recipients of grant funds for programs 
in this NOFA are required to submit a report, halfway through the grant 
period, on the progress to date that has been made towards completion 
of the research product and the likelihood that it will be completed on 
time.

V. Application Selection Process

(A) Two Types of Reviews Will Be Conducted

    (1) A threshold review to determine a student's eligibility to 
apply; and
    (2) A technical review to rate the student's application based on 
the rating factors in this section.

(B) Threshold Criteria for Funding Consideration

    Doctoral students must meet all of the threshold requirements 
listed above and the General Section of the SuperNOFA to be evaluated, 
rated, and ranked. Applications that do not meet these requirements 
will be considered ineligible for funding and will be disqualified.

(C) Final Selection

    In order to be funded, an application must receive a minimum score 
of 75 points. HUD will fund applications under each program in rank 
order, until all available program funds are awarded. If two or more 
applications have the same number of points, the application with the 
higher points for Factor 1, Capacity to do the Research, shall be 
selected. If there is still a tie, the application with the higher 
points for Factor 2, Need for the Research, shall be selected.

(D) Factors for Award Used to Evaluate and Rate Applications

    The factors for rating and ranking an application and the maximum 
points available for award for each factor are provided below. Doctoral 
students applying for either program must address these factors. 
Applications must receive a minimum of 75 points out of the total 100 
maximum points available for each program. The RC/EZ/EC bonus points 
described in the General Section of the SuperNOFA do not apply to these 
research programs.

Rating Factor 1: Capacity to do the Research (20 points)

    In reviewing this factor, HUD will determine the extent to which:
    (1) The student's skills and experience are relevant to the 
proposed research manuscript/dissertation (e.g., course work, teaching, 
research projects, and presentations);
    (2) The student provides a research outline that identifies the 
preliminary steps that have been undertaken (e.g., literature review, 
research hypotheses, questions to be answered) to produce the proposed 
manuscript/dissertation; and
    For Early Doctoral Program Applicants only. (3) The proposed 
research will help to further the student's research skills (i.e., it 
is relevant to the kinds of projects the student will continue to work 
on as she/he earns his/her Ph.D.).
    For Doctoral Dissertation Research Applicants only. (3) The 
doctoral student's previous research experience (e.g., graduate-level 
research projects, presentations at conferences, publications, etc.) is 
relevant to and supportive of the proposed dissertation.

Rating Factor 2: Need for the Research (35 points)

    In reviewing this factor, HUD will determine the extent to which 
the research manuscript/dissertation will produce policy-relevant 
information that is directly related to HUD's research priorities and/
or annual goals and objectives as defined in the General Section of the 
SuperNOFA (i.e., the research that will be produced could have an 
effect on HUD's strategic goals and programs and policies to achieve 
these goals). The more direct the relationship is between the doctoral 
student's manuscript/dissertation and one of these topics, the higher 
number of points awarded. For example a study of minorities' housing 
choice decisions would have high relevance to HUD's strategic goals; a 
study of transportation inequities would have medium relevance; and a 
study of the effects of global warming on urban development would have 
low relevance.

Rating Factor 3: Soundness of Approach (35 points)

    In reviewing this factor, HUD will determine the extent to which:
    (1) The research design and methodology proposed is likely to 
produce data and information that will successfully answer the research 
hypothesis;
    (2) The methodology proposed is sound and generally accepted by the 
relevant research community and is in line with research already 
completed or existing publications in the field as they relate to the 
scholarly standard for the research questions; and
    (3) The research and production of the research manuscript/
dissertation can feasibly be completed within the grant performance 
period. Efforts on the part of the doctoral student who proposes 
extremely complex and time-consuming data collection efforts (e.g., 
major longitudinal studies or a very large number of site visits within 
the grant period) will be determined less feasible for completion 
within the allotted grant period. For example, if the proposed 
methodology is based on information that may not be publicly available 
until after the end of the grant period (e.g., Census information), or 
a data collection plan that will take longer than the allotted grant 
period, zero points will be awarded for this factor.

Rating Factor 4: Issuance of the Research Product (10 points)

    An important purpose of these programs is to fund research that may 
impact federal problem solving and policymaking and is relevant to 
HUD's policy priorities and annual goals and objectives (See the 
General Section of the SuperNOFA for discussion). In reviewing this 
factor, HUD will evaluate the likelihood that the research will be 
completed and suitable for presentation at a conference or publication 
in a refereed journal by the end of the grant period. HUD will also 
evaluate the student's plan to disseminate the research through other 
means, e.g., seminars, university publications, or relevant Internet 
listserves.

VI. Application Submission Requirements

    (A) Content of Application. The application package must include an 
original signed application, three copies, and one computer disk (in 
Word 6.0 or higher) of the items listed below. In order to be able to 
recycle paper, doctoral students should not submit

[[Page 21176]]

applications in bound form; binder clips or loose-leaf binders are 
acceptable. Please do not use colored paper. The application narrative 
must not exceed 15 pages in length (excluding forms and assurances) and 
must be submitted on 8\1/2\ by 11-inch paper, double-spaced on one side 
of the paper, and printed in a standard Times Roman 12-point font. Each 
page should be numbered, section tabbed, and the name of the student 
and university on each page. The double-spacing requirement applies to 
all parts of an application including agreements. Please note that 
although submitting pages in excess of the page limit will not 
disqualify the application, HUD will not consider the information on 
any excess page. This may result in a lower score or failure to meet a 
threshold
    Applications must contain the items listed in this section in the 
order shown below. There is no separate Application Kit for these 
programs.
    (1) Transmittal Letter. This letter is from the student and must 
contain the following information: (a) Student's home address, 
telephone number, and email address; (b) Student's address, telephone 
number, facsimile number and email address at the university; (c) 
University's name, department, mailing address, telephone and facsimile 
number; and (d) The faculty advisor's name, title, department, address, 
telephone number, facsimile numbers, and email address--This must be 
the person who will serve as the Principal Investigator for the grant.
    (2) HUD-424 (``Application for Federal Assistance'') Instructions 
for completing this form are found on the back of the first page of the 
form. Please remember the following: (a) The full grant amount should 
be entered in block 15, not the amount for one year, (b) Include the 
name, title, address, telephone number, facsimile number, and email 
address of the person authorized to execute the grant agreement in 
Block 5, (c) Include the institution's tax ID number in Block 6. The 
form should be signed by the appropriate university official, and (d) 
Block 10, the Catalog of Federal Domestic Assistance Number for the 
program funding is being requested. The Catalog of Federal Domestic 
Assistance (CDFA) number (block 10) for each program is as follows:
Early Doctoral Student Research Grant Program is 14.517
Doctoral Dissertation Research Grant Program is 14.516
    (3) Table of Contents.
    (4) Application Checklist (See Appendix A)
    (5) Executive Summary (500 words or less). The Executive Summary 
should, at a minimum, include a summary of the proposed research 
project that addresses the following topics: (a) Specific purpose of 
the manuscript/dissertation; (b) Methodology being used; and (c) How 
the student meets the eligibility criteria for the program from which 
she/he is requesting funding.
    (6) Narrative statement responding to the Factors for Award in 
Section V. The narrative of application must not exceed 15 pages, 
double-spaced, typed in standard Times Roman 12-point font, and be 
submitted on one side of 8\1/2\-by 11-inch paper. HUD will use the 
narrative response to the Factors for Award to rate and rank an 
application. This statement is the main source of information; 
therefore, it is very important that the student becomes fully familiar 
with the rating factors above for the program from which he/she is 
requesting funding. The narrative should be numbered in accordance with 
each factor and subfactor.
    (7) Department Chairperson Support Letter. This letter must provide 
a statement from the doctoral student's department chairperson 
verifying the doctoral student has met all the eligibility criteria 
described in Section III (B).
    (8) University Support Letter. This letter must provide a statement 
from the appropriate official at the university that describes in 
detail the type of support the university will be providing, as 
described in Section III (B). Please remember that this support may not 
replace support nor assistance that the institution would otherwise 
provide the student.
    (9) Budget. The budget presentation should be consistent with the 
Statement of Work. (See Appendix B for a sample.)
    (10) Additional Required Assurances and Certifications. These forms 
can be downloaded from the HUD website at www.hud.gov.
    (a) Applicant Assurances and Certification (HUD-424B) (if 
applicable)
    (b) Disclosure of Lobbying Activities (SF LLL) (if applicable)
    (c) Acknowledgment of Receipt of Applications (HUD-2993). To 
confirm that HUD received the student's application, please complete 
this form. This form is optional.
    (d) Client Comments and Suggestions (HUD 2994). This form is 
included so that we can solicit information from the most valuable 
source--the student, or customers. If the student completes and submits 
this form, it will help HUD to assess whether the changes made to this 
document have had the intended results. It will also guide us in our 
continuing efforts to improve the competitive grant process. This form 
is optional and can be completed by the student.

VII. Correction to Deficient Applications

    After all application selections have been made, HUD may require 
the student to participate in negotiations to determine the specific 
terms of the Statement of Work and the grant budget. In cases where HUD 
cannot successfully complete negotiations, or the student fails to 
provide HUD with requested information, an award will not be made. 
Students must submit clarifications or corrections of technical 
deficiencies in accordance with the information provided by HUD 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, the 
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. In such 
instances, HUD may elect to offer an award to the next highest-ranking 
application, and proceed with negotiations with that student.

VIII. Environmental Requirements

    The provision of assistance under these programs is categorically 
excluded from environmental review under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321) and not subject to compliance 
actions for related environmental authorities under 24 CFR 50.19(b)(1) 
and (b)(9).

IX. Other Matters

    (1) Applicants must comply with the requirements for funding 
competitions established by the HUD Reform Act of 1989 (42 U.S.C. 3531 
et seq.) as defined in the General Section of the SuperNOFA.
    (2) Debriefing. The General Section of the SuperNOFA provides the 
procedures for requesting a debriefing. All requests for debriefings 
must be made in writing and submitted to Armand Carriere of HUD's 
Office of University Partnerships, Robert C. Weaver Building, 451 7th 
ST. SW., Room 8106, Washington DC 20410. Doctoral students may also 
write to Mr. Carriere via the Internet at [email protected].

X. Authority

    These programs are being undertaken under HUD's research authority 
under

[[Page 21177]]

Title V of the Housing and Urban Development Act of 1970.
Appendices A and B
    The application checklist and sample budget are included in 
Appendices A and B.

[[Page 21178]]

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[[Page 21179]]


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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21181]]


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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21183]]



Funding Availability for the Community Development Work Study Program

Program Overview

    Purpose of the Program: To provide assistance to economically 
disadvantaged and minority graduate students who participate in 
community development work study programs, are U.S. citizens or 
resident aliens, and are enrolled full-time in a graduate community 
building academic degree program.
    Available Funds: Approximately $2.981 million from Fiscal Year (FY) 
2003 Consolidated Appropriation Resolution, (plus any additional funds 
recaptured from prior appropriations).
    Eligible Applicants: Institutions of higher learning accredited by 
national or regional accrediting agency recognized by the U.S. 
Department of Education, Area-Wide Planning Organizations (APOs), and 
states.
    Application Deadline: May 27, 2003
    Match: None.

Additional Information

    Applicants interested in applying for funding under this NOFA 
should carefully review the General Section of this SuperNOFA and the 
following additional information. There is no separate Application Kit 
for this NOFA.

I. Application Due Date and Technical Assistance

    Application Due Date. A completed application package is due on or 
before May 27, 2003, based on the following submission requirements.
    Address for submitting applications. A completed application 
package (one original signed application, three copies, and one 
computer disk (in Word 6.0 or higher) of the application. This package 
must be submitted to the following address: Processing and Control 
Branch, Office of Community Planning and Development, U.S. Department 
of Housing and Urban Development, 451 Seventh Street, SW., Room 7251, 
Washington, DC 20410. When submitting an application package, also 
please include the following information on the outside of the 
envelope: (a) the Office of University Partnerships, (b) refer to the 
Community Development Work Study Program, (c) Room number 7251, (d) the 
applicant's name and mailing address (including zip code), and (e) the 
applicant's telephone number (including area code).
    Mailing and Receipt Procedures. Applicants must refer to the 
General Section of this SuperNOFA for detailed requirements governing 
application submission and receipt.
    For Further Information and Technical Assistance. Applicants may 
contact Armand Carriere of HUD's Office of University Partnerships at 
(202) 708-3061, ext. 3181 or Susan Brunson, at (202) 708-3061, ext. 
3852. Hearing-or speech-impaired individuals may call the Federal 
Information Relay Service at 1-800-877-8339 (this is the only toll-free 
number). Applicants may also reach Mr. Carriere via e-mail at Armand--
[email protected] and Ms. Brunson at [email protected].
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about this program and 
preparation of the application. For more information about the date and 
time of this broadcast, consult HUD's website at www.hud.gov.

II. Amount Allocated, Grant Size and Term, and Performance Period

    Up to $2.981 million, plus approximately $120,000 in previously 
unexpended funds and any additional funds recaptured from prior 
appropriations will be available for funding under this program.
    The maximum grant performance period is two years (24 months). The 
performance period will commence on the effective date of the grant 
agreement.
    Institutions may request no more than $15,000 per year per student 
for a total of $30,000 for a two-year (24 months) grant performance 
period. The minimum amount an institution can request is $90,000 
(funding for three students) and the maximum amount is $150,000 
(funding for five students).

III. Program Description; Eligible Applicants; Eligible Activities and 
Costs

(A) Program Description

    Community Development Work Study Program (CDWSP) funds two-year 
grants to accredited institutions of higher education, APOs, and states 
applying on behalf of institutions of higher education to provide 
assistance to economically disadvantaged and minority graduate students 
who participate in a community development work study program. Students 
must be U.S. citizens or resident aliens and enrolled full-time in a 
graduate community building academic degree program. Grants will cover 
the academic period August 2003 through August 2005.

(B) Eligible Applicants

    Organizations are eligible if they are:
    (1) An accredited institution of higher education recognized by the 
U.S. Department of Education that offers a graduate degree in a 
community development academic program;
    (2) An APO applying on behalf of two or more eligible accredited 
institutions of higher education recognized by the U.S. Department of 
Education that are located in the same Standard Metropolitan 
Statistical Area (SMSA) or non-SMSA as the APO (in accordance with the 
regulations at 24 CFR 570.415, institutions of higher education are 
permitted to choose whether to apply independently or through an APO); 
or
    (3) A state applying on behalf of two or more eligible accredited 
institutions of higher education recognized by the U.S. Department of 
Education that are located in the state. If a state is approved for 
funding, accredited institutions of higher education located in that 
state may not apply independently.

(C) Eligible Activities and Costs

    Applicants may request no more than $15,000 per year per student, 
for a total of $30,000 for two years. The total is broken down per year 
as follows: an administrative allowance of $1,000 per student per year; 
a work stipend of no more than $9,000 per student per year; and 
tuition, fees, and additional support of no more than $5,000 per 
student per year.

IV. Program Requirements

    In addition to the program requirements listed in the General 
Section of this SuperNOFA, applicants must meet the following program 
requirements.
    (A) Statutory Requirements. Applicants must comply with all 
statutory and regulatory requirements applicable to this program. CDWSP 
regulations can be found at 24 CFR 570.415. Copies of the regulations 
are available on request from HUD User (www.HUDUSER.org).
    (B) Recipient/Student Bonding Agreement. This agreement should 
cover the purpose of the work placement, responsibilities of both 
parties, including financial support and work component. This agreement 
should also address the student's responsibilities as described in the 
program regulations.
    (C) Recipient Workplace Agreement. This agreement should cover the 
purpose of the work placement and the respective roles of the parties. 
Among other matters determined to be appropriate, this agreement should 
address the work placement agency's responsibilities described in the 
program regulations.
    (Note: HUD does not provide a model or sample format for either of 
these agreements).

[[Page 21184]]

V. Application Selection Process

(A) Two Types of Reviews

    Two types of reviews will be conducted:
    (1) A threshold review to determine an applicant's eligibility; and
    (2) A technical review based on the ``Factors for Award'' rating 
factors listed in Section V below.
    Only those applications that pass the threshold review will receive 
a technical review and be rated and ranked.

(B) Threshold Criteria for Funding Consideration

    All applicants must be in compliance with the threshold 
requirements as defined in the General Section of this SuperNOFA and 
the requirements listed below to be evaluated, rated, and ranked. 
Applications that do not meet these requirements will be considered 
ineligible for funding and will be disqualified:
    (1) Eligibility. Applicants must be eligible to apply for the 
program (Sec. III B). In an effort to expand the program to include a 
greater variety of institutions, institutions that received grants in 
FY 2002 (independently or through an APO or state) are not eligible to 
submit an application.
    (2) Eligibility of the Degree Program. An eligible community 
building academic program includes but is not limited to accredited 
graduate degree programs in community and economic development, 
community planning, community management, public administration, public 
policy, urban economics, urban management, and urban planning. An 
eligible community building academic program excludes social and 
humanistic fields such as law, economics (except for urban economics), 
education, sociology, social work, business administration, history, 
and joint degree programs except where both joint degree fields have 
the purpose and focus of educating students in community building. 
Applicants are encouraged to contact Armand Carriere or Susan Brunson 
at the above listed telephone numbers if they have any questions about 
eligibility of a proposed degree program.
    (3) Number of students to be assisted. The minimum number of 
students that may be assisted per participating institution is three. 
If an APO or state receives assistance for a program that is conducted 
by two or more institutions, each participating institution must have a 
minimum of three students per program. The maximum number of students 
that can be assisted under this program is five per participating 
institution.
    (4) Graduation rates. If an applicant received funding during the 
FY 2000 round, at least 50 percent of the students assisted must have 
graduated. This round of funding covered the school years August 2000 
to August 2002. To address this requirement an applicant must submit a 
copy of the final Community Development Work Study Program Student Data 
Sheet, HUD-30007, for each student that received assistance from the 
program. This rate must be achieved two weeks prior to the application 
submission date of this NOFA. Institutions funded under the FY 2000 
CDWSP funding round that cannot verify such a rate will be excluded 
from participating in the FY 2003 funding competition.
    (5) Budget. Submit a completed budget Form HUD-30015 (Community 
Development Work Study Program Student Budget Sheet) for the August 
2003 through August 2005 funding period. Applicants may request no more 
than a total of $15,000 per year per student and funding for no more 
than five or fewer than three students per institution of higher 
education. An APO and/or state must also complete the HUD 30014 
(Community Development Work Study Program State/Areawide Planning 
Organization Budget Summary).
    (6) Compliance with nondiscrimination requirements. 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). In addition, applicants must comply with Title X of 
the Education Amendments Act of 1972 (2 U.S.C. 1681 et seq.). HUD will 
not approve an application for funding under this NOFA if, as of the 
due date, the applicant:
    (a) Has been charged with a systemic violation of the Fair Housing 
Act alleging ongoing discrimination;
    (b) Is the defendant in a Fair Housing Act lawsuit filed by the 
Department of Justice alleging an ongoing pattern or practice of 
discrimination; or
    (c) Has received a letter of noncompliance findings 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 a 
letter of findings has not been resolved to HUD's satisfaction before 
the application deadline stated in this NOFA, the applicant may not 
apply for assistance under this program. HUD will not rate and rank the 
application. HUD's decision regarding whether a charge, lawsuit, or 
letter of findings has been satisfactorily resolved will be based upon 
whether appropriate actions have been taken to address allegations of 
ongoing discrimination in the policies or practices involved in the 
charge, lawsuit, or letter of findings. Examples of actions that may be 
taken prior to the application due date to resolve the charge, lawsuit, 
or letter of finding include, but are not limited to:
    (i) A voluntary compliance agreement signed by all parties in 
response to the letter of findings;
    (ii) A HUD-approved conciliation agreement signed by all parties;
    (iii) A consent order or consent decree; or
    (iv) A judicial ruling or a HUD Administrative Law Judge's decision 
that exonerates the respondent of any allegations or discrimination.

(C) Factors for Award Used to Evaluate and Rank Applications.

    The factors for evaluating, rating, and ranking an application, and 
the maximum points for each factor, are listed below. The maximum 
number of points available for this program is 100. To be eligible for 
funding, an application must have a minimum score of 75 points out of 
the total possible points. The RC/EZ/EC bonus points described in the 
General Section of this SuperNOFA do not apply to this program.

Rating Factor 1: Capacity of the Academic Program and Relevant Past 
Experience (25 points)

    This factor addresses the extent to which an applicant's academic 
program has the capacity to prepare students for careers in community 
building. In evaluating this factor, HUD will consider:
    (1) Capacity of the Academic Program (20 points)for previously 
unfunded applicants and 15 points for previously funded applicants)
    Applicants must describe the quality of the academic program the 
institution offers (or in the case of an application from an APO or 
state, those offered by the institutions included in the application) 
including, without limitation, the:
    (a) Quality of the course offerings in terms of their depth and 
emphasis on applied coursework;
    (b) Appropriateness of the courses offered for preparing students 
for careers in community building; and
    (c) Qualifications of the faculty, such as the number of PhD's, and 
the percentage of their time devoted to

[[Page 21185]]

teaching and research in community building.
    As a supplement to the narrative response, applicants can include 
photocopies of excerpts from official publications of the educational 
institution or department. Please make sure to place these documents 
after the narrative and include them in the page count requirement.
    (2) Rates of Graduation (5 points for previously unfunded 
applicants and 10 points for previously funded applicants)
    HUD will evaluate the graduation rates of students previously 
enrolled in a community building academic degree program, specifically 
(where applicable) graduation rates from any previously funded CDWSP 
academic programs or similar programs. This factor measures the rate of 
graduation for all applicable years and awards points based on the 
extent to which the applicant exceeds a 50 percent graduation rate each 
applicable year. Previously funded CDWSP programs should include copies 
of the final Community Development Work Study Program Student Data 
Sheet, HUD-30007 for each previously enrolled student that received 
assistance from the program.

Rating Factor 2: Need for the Program (10 Points)

    This factor addresses the extent to which there is a need for 
funding the proposed program activities and an indication of the 
importance of meeting the need. In responding to this factor, HUD will 
evaluate the applicant's commitment to meeting the needs of 
economically disadvantaged and minority students as demonstrated by the 
institution's policies and plans, past efforts and successes 
recruiting, enrolling, and financially assisting economically 
disadvantaged and minority students, including the provision of 
reasonable accommodations for students with disabilities. If the 
applicant is an APO or state, HUD will consider the demonstrated 
commitment of each accredited institution of higher education on whose 
behalf the APO or state is applying.

Rating Factor 3: Soundness of Approach (45 Points)

    This factor addresses the quality and effectiveness of the proposed 
student work placement assignments.
    (1) Quality of the Work Placement Assignments (13 Points) HUD will 
evaluate the extent to which participating students will receive a 
variety of work placement assignments. (Note: Students cannot be placed 
with a Federal Government agency). The assignments should provide 
practical and useful experience to students participating in the 
program and further the participating students' preparation for 
professional careers in community building. In rating this factor, HUD 
will consider the quality in terms of the variety of work placement 
agencies, and the variety of projects/experiences at each agency and 
overall. Applicants must also include a description of the plan for 
rotating students among work placement agencies. Note: Students 
engaging in community building projects through an institution of 
higher education (rather than being directly supervised by local work 
placement sites) may do so only through a HUD funded Community Outreach 
Partnership Center (COPC), which will in that instance be considered a 
work placement agency even if the community building projects are 
undertaken with or through a separate organization or entity. 
Accordingly, students engaging in community building through an 
institution of higher education's outreach center should do so during 
only part of their academic program and should rotate to other work 
placement agency responsibilities as well. In order to receive higher 
points on this subfactor, applicants must propose at least three 
different work placement experiences for each student (typically, one 
each school year and one during the summer between the two school 
years) and include executed agreements with their proposed work study 
sites, rather than just listing these sites.
    (2) Effectiveness of Program Administration (15 Points) HUD will 
evaluate the degree to which the applicant will be able to coordinate 
and administer the program. HUD will allocate the maximum points 
available under this criterion equally among the following three 
considerations, except that the maximum points available under this 
criterion will be allocated equally only between (a) and (b), if the 
applicant has not previously administered a CDWSP-funded program. If an 
applicant received a CDWSP grant in FY 1999 or before and has not 
received one since, the applicant is considered a new applicant, for 
the purposes of this factor. Applicants must include a Management Work 
Plan that addresses the following details at a minimum:
    (a) The strength and clarity of the plan for placing CDWSP students 
on rotating work placement assignments and for monitoring CDWSP 
students' progress both academically and in their work placement 
assignments. In addition, include plans, procedures, schedules, and 
preferably a milestone chart that indicates the sequence in which these 
tasks will be performed, noting areas of work that will be performed 
simultaneously and continually during the life of the grant, along with 
the name of the responsible individual. Also, include plans for 
recruiting and selecting students, monitoring and guidance of students 
academic progress, coordinating and monitoring student work placement 
agencies, and other matters deemed significant;
    (b) The key personnel responsible for administering, managing, and 
evaluating the project, the experience, responsibilities, available 
time, and authority of the individual who will coordinate and 
administer the program; and
    (c) The effectiveness of prior coordination and administration of a 
CDWSP-funded program, where applicable. In addressing this factor, 
applicants should describe the timeliness of report submissions. 
Applicants should review their prior CDWSP grant agreements and reports 
and compare when reports were due with when the reports actually were 
submitted. Applicants should also describe their timeliness in drawing 
down grant funds. Applicants are encouraged to provide a chart that 
outlines report submissions for each grant by the submission date and 
the pattern of drawing down of funds.
    (3) Likelihood of Fostering Students' Permanent Employment in 
Community Building (15 Points)
    HUD will evaluate the extent to which the proposed program will 
lead participating students directly and immediately to permanent 
employment in community building. Include a statement that describes, 
at a minimum, the following:
    (a) Past success in placing graduates (particularly CDWSP-funded 
and similar program graduates, where applicable) in permanent 
employment in community building; and
    (b) How the institution will assist students (particularly students 
in CDWSP-funded and similar programs, where applicable) in finding 
permanent employment in community building. Include the amount/type of 
faculty/staff time and resources that will be devoted to assisting 
students.
    (4) HUD 2003 Policy Priorities (2 Points). The extent to which an 
applicant provides students with work place assignments that undertake 
specific activities that will further and support HUD's policy 
priorities and FY 2004 goals. In rating this factor, HUD will evaluate 
the quality of the responses provided to one or more of

[[Page 21186]]

HUD's priorities to determine the score an applicant will receive. For 
each policy priority addressed an applicant can receive one point. 
Applicants cannot receive more than two points.[S1] For a full list and 
explanation of each priority, please refer to the General Section of 
this SuperNOFA.

Rating Factor 4: Leveraging Resources (10 points)

    HUD will evaluate the applicant's commitment and ability to assure 
that CDWSP students will receive sufficient financial assistance above 
and beyond the CDWSP funding to complete their academic program in a 
timely manner and without working in excess of 20 hours a week during 
the school year. When addressing this issue, delineate the full costs 
budgeted annually per student (including living expenses, fees, etc), 
explain the basis for the budget and how the financial assistance 
package offered to each CDWSP student will meet that budget. Applicants 
must explain how variations in the budget needs and emergency financial 
needs will be addressed among students. Loans are less preferred than 
grants because of the burden placed on the student to repay them. 
Therefore, higher points will be given to applicants that provide 
assistance in the form of grants rather than loans.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    HUD will evaluate the extent to which an applicant identifies 
program activities, outcomes, interim benchmarks, and performance 
indicators that will describe how performance will be measured. 
Applicants must also describe the steps that will be taken to make 
adjustments to the work plan if performance targets are not met within 
the established timeframe associated with each activity. At a minimum, 
the evaluation plan should address the following activities:
    (a) Student recruitment;
    (b) Student completion of degree program; and
    (c) Long term placement after graduation (1year after graduation).
    All performance indicators should be objectively quantifiable and 
measure actual achievements against anticipated achievements. This 
information should be provided in a Logic Model format. This form and 
information on how to use it can be found in the General Section of 
this SuperNOFA.

VI. Application Submission Requirements

    (A) Content of Application. The application package should include 
one original signed application, three (3) copies, and one computer 
disk of the application (in Word 6.0 or higher) of the items listed 
below. In order to be able to recycle paper, applicants should not 
submit applications in bound form; binder clips or loose-leaf binders 
are acceptable. Also, please do not use colored paper. The application 
narrative must not exceed 50 pages in length (excluding forms and 
assurances) and must be submitted on 8\1/2\ by 11-inch paper, double-
spaced on one side of the paper, and printed in a standard Times Roman 
12-point font. The double-spacing requirement applies to all parts of 
the program narrative, including agreements and tables (photocopies of 
excerpts from official publications of the educational institution or 
department are excluded from this requirement). Please do not provide 
any additional exhibits, appendices, or resumes to support responses. 
No additional attachments are permitted. Please note that although 
submitting pages in excess of the page limit will not disqualify an 
application, HUD will not consider the information on any excess page. 
This may result in a lower score or failure to meet a threshold. Please 
make sure that all items are submitted in the order listed below and 
all pages numbered. Except where a particular form may direct 
otherwise, all forms included in the application, as well as the 
transmittal letter, must be signed by the Chief Executive Officer (this 
is generally the President or Provost) or an official designee legally 
authorized to make a commitment on behalf of the institution. If a 
designee signs, the application must contain a copy of the official 
delegation of signatory authority.
    (1) Transmittal Letter. This letter must contain the following:
    (a) A statement assuring that the institution of higher education 
(not the department or program) that will be receiving funds under this 
grant is fully accredited. The letter must state not only the name of 
the accrediting agency but also that the particular accrediting agency 
is recognized by the U.S. Department of Education. If a state or APO is 
the applicant, the transmittal letter must set forth this assurance for 
each institution of higher education with whom they will be working;
    (b) The name, title, address, telephone number, fax number, and e-
mail address of the Program Director and the individual(s) authorized 
to legally negotiate on the institution's behalf. All APOs and states 
must provide this assurance with respect to accreditation for each 
institution that would participate in their FY 2003 CDWSP grant.
    (2) HUD Form 424 (Application for Federal Assistance). When 
completing this form, please remember the following:
    (a) The full grant amount should be entered in block 15, not the 
amount for the first year;
    (b) In designating the contact (in box 5), please include a title, 
address, telephone number, fax number, and [chyph]e-mail address. This 
is the person who will be receiving the reviewer comments, so please 
ensure the accuracy of the address;
    (c) Item 10, the Catalogue of Federal Domestic Assistance Number 
for this program is 14.512; and
    (d) The project start date should be August 1, 2003 and the 
completion date should be August 31, 2005.
    (3) Table of Contents.
    (4) Application Checklist (See attachment A) fully completed.
    (5) Executive Summary--no more than three (3) pages in length. The 
Executive Summary should, at a minimum, describe:
    (a) The academic degree programs for which the students will be 
selected;
    (b) The type of work placement agencies (including specific 
examples) that have committed to participate in the program (students 
cannot be placed at a Federal Government agency); and
    (c) The plans and resources/facilities for administering the 
program and assisting students to pursue post-academic or community 
building opportunities.
    (6) Designation of Applicable Graduate Degree Program(s) Form HUD-
30013 (Community Development Work Study Program Designation of 
Applicable Graduate Academic Degree Program). Review carefully the 
regulations dealing with eligible types of degree programs before 
completing this form. If the proposed program is other than one listed 
as an eligible degree program, please contact Armand Carriere or Susan 
Brunson for additional guidance.
    (7) Narrative statement addressing the Factors for Award in Section 
V. The application narrative must not exceed 50 pages in length 
(excluding required forms and assurances) and must be submitted on 8\1/
2\ by 11-inch paper, double-spaced on one side of the paper, and 
printed in a standard Times Roman 12-point font. The double-spacing 
requirement applies to all parts of the program narrative, including 
agreements and tables (photocopies of excerpts from

[[Page 21187]]

official publications of the educational institution or department are 
excluded from this requirement). Please do not provide any additional 
exhibits, appendices, or resumes to support your responses. No 
additional attachments are permitted. Please note that although 
submitting pages in excess of the page limit will not disqualify an 
application, HUD will not consider the information on any excess page. 
Failure to comply with this requirement may result in a lower score or 
failure to meet a threshold. This statement is the main source of 
information used to rate and rank an application; therefore, it is very 
important to become fully familiar with the rating factors above. In 
each factor there may be subfactors. Each subfactor should be presented 
separately, with the short tile of the subfactor and sufficient 
information about every element of the subfactor. The response to each 
factor and subfactor should be concise and contain only relevant 
information, but detailed enough to address each factor fully. Please 
do not repeat material in response to the factors and subfactors.
    (8) Budget. Use the budget form HUD 30015 (Community Development 
Work Study Program Student Budget Sheet) for the August 2003 through 
August 2005 funding period. Applicants may request no more than a total 
of $15,000 per year per student for five students and no fewer than 
three students per institution of higher education. An APO and/or state 
must also complete the HUD 30014 (Community Development Work Study 
Program State/Area-wide Planning Organization Budget Summary). Please 
provide any necessary back-up documentation (e.g., pages from course 
catalogues listing the fees) to demonstrate concisely that the amounts 
requested are reasonable and customary. Applicants are not required to 
submit documentation for the administrative allowance amount. Any 
anticipated increases to these project costs should be included and an 
explanation for the basis of the increases provided. If documentation 
is not included, the award amount will be based on current tuition 
rates, regardless of any subsequent tuition increase. HUD will not 
increase the amount of the grant once awarded to reflect any tuition or 
fee increases that have not been set forth in the application. Also, 
HUD will not cover any costs exceeding the per-student maximum.
    (9) Additional required Assurances and Certifications.
    (a) Applicant Assurances and Certifications (HUD-424B) if 
applicable.
    (b) Applicant/Recipient Disclosure Update Report (HUD-2880).
    (c) Assurance Regarding the Applicant's Financial Management 
Systems.
    (d) Acknowledgement of Applicant Receipt (HUD-2993)
    (e) Client Comments and Suggestions (HUD-2994).
    (B) Rating Panels. To review and rate applications, the Department 
may establish panels including persons not currently employed by HUD to 
obtain certain expertise and outside points of view, including views 
from other Federal agencies.
    (C) Selections. If an application passes the threshold requirement 
review, it will be rated and then ranked based on the total score it 
received on the rating selection factors. Applications will be 
considered for selection based on their rank order. HUD may make awards 
out of rank order to achieve geographic diversity, and may provide 
assistance to support a number of students that is less than the number 
requested under an application or a lower funding level per student, in 
order to provide assistance to as many highly ranked applications as 
possible.
    The minimum fundable score is 75 points. If there is a tie in the 
point scores of two applications, the rank order will be determined by 
the scores on Rating Factor 3 entitled ``Soundness of Approach.'' The 
application with the higher points on this factor will be given the 
higher rank. If there is still a tie, the rank order will be determined 
by the applicants' scores on Rating Factor 1 entitled ``Capacity of the 
Applicant's Academic Program and Relevant Past Experience.'' The 
application with the higher points for this selection factor will be 
given the higher rank.
    If there are insufficient funds to fund an application, even if the 
request is reduced to the minimum number of students that could be 
funded (i.e., three students per institution of higher education), HUD 
may select the next ranked application that would not exceed the 
funding left available and still fund the minimum number of students 
allowed.
    If funds remain after funding the highest ranked applications that 
can be fully funded, HUD may fund part of the next highest-ranking 
application (as long as it would provide assistance to the minimum 
number of students required to be served) in a given program area. If 
an applicant turns down the award offer, HUD will make the same 
determination for the next highest-ranking application. If funds remain 
after all selections have been made, the remaining funds will be 
carried over to the next funding cycle's competition.
    (1) Applicants must comply with the requirements for funding 
competitions established by the HUD Reform Act of 1989.
    (D) Debriefing. The General Section of the SuperNOFA provides the 
procedures for requesting a debriefing. All requests for a debriefing 
must be made in writing and submitted to Armand W. Carriere, Acting 
Director, Office of University Partnerships, Robert C. Weaver Building, 
451 7th Street SW., Room 8106, Washington, DC 20410.
    (E) Disclosures. HUD will make available to the public for five 
years all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this NOFA. Update reports (also Form 2880) will be made 
available along with the applicant disclosure reports, but in no case 
for a period less than three years. All reports--both applicant 
disclosures and updates--will be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15.
    (F) Negotiations. After selections have been made, HUD may require 
winners to participate in negotiations to determine the Grant Budget. 
In cases where HUD cannot successfully conclude negotiations, or an 
applicant fails to provide HUD with the requested information, an award 
will not be made. In such instances, HUD may elect to offer an award to 
the next highest-ranking applicant, and proceed with negotiations with 
the next highest applicant.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    This NOFA does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern or regulate real property 
acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise, or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this NOFA 
is categorically excluded from environmental review under the National 
Environmental Policy Act of 1969, as amended (42 U.S.C. 4321) and 24 
CFR 50.19(b)(3) and (b)(9).

IX. Other Matters

    The provisions of the HUD Reform Act of 1989 that apply to this 
NOFA are

[[Page 21188]]

explained in the General Section of the SuperNOFA.

X. Authority

    Section 107(c) of the Housing and Community Development Act of 
1974, as amended (42 U.S.C. 5301 et seq.) authorizes CDWSP. Regulations 
for the program appear at 24 CFR part 57.

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21197]]



Funding Availability for the Fair Housing Initiatives Program (FHIP)

Program Overview

    Purpose of the Program. To increase compliance with the Fair 
Housing Act (the Act) and with substantially equivalent State and local 
fair housing laws.
    Available Funds. Approximately $20,118,375 in FY 2003 funds and any 
potential recapture is allocated to three (3) initiatives as follows:
    A. Private Enforcement Initiative (PEI) $10.2 million
    B. Education and Outreach Initiative (EOI) $5.318 million.
    C. Fair Housing Organizations Initiative (FHOI) $2.1 million.
Approximately $2.5 million will be used for contracts including the 
continuation of activities for the third option year under the Project 
for Training and Technical Assistance Guidance (PATTG) and in 
furtherance of fair housing education and outreach to meet HUD's 
Minority Serving Institution (MSI) goals. The funds for PATTG were 
announced under a previous solicitation. The funds to further the 
Department's goals to work with MSIs will be announced under a separate 
solicitation.
    Eligible Applicants. Eligibility requirements are described in 
detail under each of the funded initiatives and components, set forth 
below
    Application Deadline. June 5, 2003.
    Match: No matching funds are required for the Education and 
Outreach or Private Enforcement Initiatives. However, sponsored 
organizations under FHOI must meet the requirements described in 
Section IV (D) below.

Additional Information

    If you are interested in applying for funding under the Fair 
Housing Initiatives Program (FHIP), please review carefully the General 
Section of this SuperNOFA (hereafter, the General Section), the FHIP 
Authorizing Statute (Sec. 561 of the Housing and Community Development 
Act of 1987, as amended), the FHIP Regulations (24 CFR 125.103-501), 
and the following additional information:

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

    Application Due Date. You must submit a completed application (one 
original and three copies) for the specific initiative and component 
for which you are applying on or before June 5, 2003, to the HUD 
Headquarters building, at the address shown below.
    Application Submission Procedures. See the General Section of the 
SuperNOFA for specific procedures governing the submission and receipt 
of applications.
    Address for Submitting Applications. Your application consists of 
an original signed application form (HUD-424) and all items listed in 
the Checklist (See Section IV and Appendix C for all submission 
requirements). Mail your completed application (one original and three 
copies) to:
    FHIP SuperNOFA 2003 [Specify the Initiative/Component to which you 
apply], FHIP/FHAP Support Division, Office of Fair Housing and Equal 
Opportunity, U.S. Department of Housing and Urban Development, 451 
Seventh Street, SW., Room 5224, Washington, DC 20410.
    For Further Information and Technical Assistance. You may contact 
Myron P. Newry or Denise L. Brooks of the FHIP/FHAP Support Division, 
at 202-708-0800 (this is not a toll-free number). Persons with hearing 
or speech impairments may contact the Division by calling 1-800-290-
1617 (this is a toll-free number). Contained in Appendix A of this NOFA 
is a Question and Answer section. Please review this section for 
answers to some of your questions.
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for prospective applicants to learn more about the program 
and preparing applications. For more information about the date and 
time of this broadcast, you should consult the HUD web site at http://www.hud.gov/grants.

II. Amounts Allocated

    In Fiscal Year 2003, $20,118,375 was appropriated for the Fair 
Housing Initiatives Program. Of this amount, $17,618,375 is being made 
available on a competitive basis to eligible organizations responding 
to this FHIP program section of the SuperNOFA. The remaining 
approximately $2,500,000 will be used for a continuation of activities 
for the third option year under the Project for Training and Technical 
Assistance Guidance (PATTG) and the awarding of a new contract in 
furtherance of a fair housing education and outreach effort in 
partnership with Historically Black Colleges and Universities (HBCU) 
with law schools. The amount available for each initiative or component 
and the maximum amount of funds that can be awarded for each grant are 
specified as follows:
    (A) Private Enforcement Initiative (PEI). Approximately $10,200,000 
is allocated; maximum award is $275,000 per grant; project duration is 
12 to 18 months.
    (B) Education and Outreach Initiative (EOI). Approximately 
$5,318,375 is allocated. This Initiative has five (5) components. 
Approximately $4,818,375 is allocated to four (4) components under the 
EOI Regional/Local/Community-Based (R/L/CB) Program. The maximum award 
is $100,000 for the R/L/CB Program and the project duration is 12 to 18 
months. These four components are as follows:
    (1) EOI--General Component. Approximately $3,018,375 is allocated.
    (2) EOI--Disability Component. Approximately $900,000 is allocated.
    (3) Hispanic Fair Housing Awareness Component. Approximately 
$450,000 is allocated.
    (4) Fair Housing and Minority Homeownership Component. 
Approximately $450,000 is allocated.
    The fifth Component falls under the EOI--National Program:
    (5) Codes Component. Approximately $500,000 is allocated. The 
maximum award for the EOI National Program--Model Codes Component is 
$500,000 and the project duration is 24 months.
    (C) Fair Housing Organizations Initiative (FHOI). Approximately 
$2,100,000 is allocated; project duration is three years. Maximum award 
is $1,050,000 allocated over a three year period at up to $350,000 per 
year.

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. The Fair Housing Initiatives Program 
(FHIP), 24 CFR part 125, assists fair housing activities that increase 
compliance with the Fair Housing Act (the Act) and with the 
substantially equivalent fair housing laws administered by state and 
local government agencies (Fair Housing Assistance Program Agencies 
(FHAP)). Applications submitted for funding under EOI are required to 
describe a complaint referral process that should result in referrals 
to HUD of fair housing complaints and other information regarding 
discriminatory housing practices. HUD's recently published Housing 
Discrimination Study found that discrimination against Hispanic renters 
appears to have remained essentially unchanged since 1989. To address 
this issue, HUD has created a separate Component under EOI to provide 
effective bilingual fair housing education and outreach to Hispanics; 
however, grantees may not deny services to a client who is not 
Hispanic. For the Fair Housing and Minority Homeownership Component, 
HUD wants to educate people on the Fair Housing Act and how to prepare 
for homeownership.

[[Page 21198]]

    (B) Program Definitions. The definitions that apply to this FHIP 
section of the NOFA are as follows:
    Broad-based proposals are those that include activities that are 
not limited to a single fair housing issue; instead, they cover 
multiple issues related to housing discrimination covered under the 
Act, such as: Rental, sales and financing of housing. (See also Full 
Service Projects below)
    Colonias (See General Section).
    Complainant means the person (including the Assistant Secretary for 
FHEO) who files a complaint under Section 810 of the Act.
    Disability advocacy groups mean organizations that traditionally 
have provided for the civil rights of persons with disabilities. This 
would include organizations such as Independent Living Centers, and 
cross-disability legal services groups. Such organizations must be 
experienced in providing services to persons with a broad range of 
disabilities, including physical, cognitive, and psychiatric/mental 
disabilities. Such organizations must demonstrate actual involvement of 
persons with disabilities throughout their activities, including on 
staff and board levels.
    Enforcement proposals are potential complaints under the Act that 
are timely, jurisdictional, and well-developed, that could reasonably 
be expected to become enforcement actions if an impartial investigation 
finds evidence supporting the allegations and the cases proceeded to a 
resolution with HUD or FHAP Agency involvement.
    Fair Housing Act means Title VIII of the Civil Rights Act of 1968 
as amended by the Fair Housing Amendments Act of 1988 (42 U.S.C. 3600-
3620).
    Fair Housing Assistance Program (FHAP) Agencies mean State and 
local fair housing enforcement government agencies that receive FHAP 
funds because they administer laws deemed substantially equivalent to 
the Act, as described in 24 CFR part 115.
    Fair Housing Enforcement Organization (FHO) means an organization 
engaged in fair housing activities as defined in 24 CFR 125.103.
    Full-service projects must include the following enforcement-
related activities in your project application: Interviewing potential 
victims of discrimination; analyzing housing-related issues; taking 
complaints; testing; evaluating testing results; conducting preliminary 
investigations; conducting mediation; enforcing meritorious claims 
through litigation or referral to administrative enforcement agencies; 
and disseminating information about fair housing laws.
    Grassroots organizations (See General Section).
    Meritorious claims means enforcement activities by an organization 
that resulted in lawsuits, consent decrees, legal settlements, HUD and/
or substantial equivalent agency (under 25 CFR 115.6) conciliations and 
organization initiated settlements with the outcome of monetary awards 
for compensatory and/or punitive damages to plaintiffs or complaining 
parties, or other affirmative relief, including the provision of 
housing (24 CFR 125.103).
    Minority Serving Organization (See General Section).
    Operating budget means your organization's total planned budget 
expenditures from all sources, including the value of in-kind and 
monetary contributions, in the period for which funding is requested.
    Qualified Fair Housing Enforcement Organization (QFHO) means an 
organization engaged in fair housing activities as defined in 24 CFR 
125.103.
    Regional/Local/Community-Based Activities are defined at 24 CFR 
125.301(a) & (d).
    Rural Areas, according to the Rural Housing and Economic 
Development Program of Community Planning and Development (CPD), may be 
defined in one of five ways:
    (i) A place having fewer than 2,500 inhabitants (within or outside 
of metropolitan areas).
    (ii) A county with no urban population (i.e., city) or 20,000 
inhabitants or more; territory, persons and housing units in the rural 
portions of `extended cities.'
    (iii) The rural portions of extended cities in the United States as 
identified by the U.S. Census Bureau.
    (iv) Open country that is not part of or associated with an urban 
area. The United States Department of Agriculture (USDA) describes open 
country as a site separated by open space from any adjacent densely 
populated urban area. Open space includes undeveloped land, 
agricultural land, or sparsely settled areas, but does not include 
physical barriers (such as rivers or canals) public parks, commercial 
and industrial developments, small areas reserved for recreational 
purposes, and open space set aside for future development.
    (v) Any place with a population not in excess of 20,000 and that is 
not located in a Metropolitan Statistical Area.
    Traditional Civil Rights Organizations mean non-profit 
organizations or institutions and/or private entities with a history 
and primary mission of securing Federal civil rights protection for 
groups and individuals protected under the Act or substantially 
equivalent State or local laws and that are engaged in programs to 
prevent or eliminate discriminatory housing practices.
    Underserved Areas mean jurisdictions where there are no Fair 
Housing Initiatives Program or Fair Housing Assistance Program agencies 
and where either no public or private fair housing enforcement 
organizations exist or the jurisdiction is not sufficiently served by 
one or more public or private enforcement fair housing organizations 
and there is a need for service.
    Underserved Populations mean groups of individuals who fall within 
one or more of the categories protected under the Act and who are also: 
(1) Of an immigrant population (especially racial and ethnic minorities 
who are not English-speaking or with limited English proficiency), (2) 
in rural populations, (3) persons living in the Colonias, (4) the 
homeless, (5) persons with disabilities who can be historically 
documented to have been subject to discriminatory practices not having 
been the focus of Federal, State or local fair housing enforcement 
efforts, and (6) areas that are heavily impacted with minorities and 
there is inadequate protection and ability to provide service from the 
State or local government or private fair housing organizations.
    (C) Changes to this year's FHIP NOFA. A number of changes have been 
made this year.
    (1) All technical deficiencies must be responded to in 5 days from 
receipt of notice of deficiency;
    (2) For EOI, there is one new EOI National Program Component: the 
Model Codes Component and two new Regional/Local Community-Based 
Components--the Hispanic Fair Housing Awareness and the Fair Housing 
and Minority Homeownership Components;
    (3) Except for applicants under FHOI, applicants may not submit 
multiple applications under this NOFA;
    (4) All applicants must submit a completed Statement of 
Eligibility; and
    (5) The criteria for awarding points under Rating Factor 2--Need/
Distress/Extent of the Problem has been revised for FHOI.
    Bonus Points: See General Section VI (C) ``Factors For Award Used 
to Evaluate and Rate Applications'' for information on how Bonus Points 
will be awarded under this SuperNOFA.
    (D) Ineligible Activities. (1) Fair Housing and Free Speech. None 
of the amounts made available under this FHIP Program Section of the 
SuperNOFA may be used to investigate or prosecute under the Act any 
activity

[[Page 21199]]

engaged in by one or more persons, including the filing or maintaining 
of a non-frivolous legal action that is protected by the First 
Amendment to the U.S. Constitution. This includes activities engaged in 
for the purpose of achieving or preventing action by a government 
official or entity.
    (2) Insurance Testing. HUD will fund organizations that conduct 
insurance-related enforcement work under the FHIP, but no project that 
focuses exclusively on this issue will be funded.
    (3) All Applicants. If a majority (51% or more) of the activities 
within your application, Statement of Work (SOW), or Budget are 
ineligible or you propose to carry out ineligible activities that total 
51% or more, your application will be ineligible.
    (4) Imposed Burdens. Registration fees, fundraising, professional/
association dues, publications, and other fees or costs that result in 
burdens placed on the public being serviced by these awards are 
prohibited practices.
    (E) Objectives. Applicants submitting applications to the Education 
and Outreach National Program's Model Codes Component and all the 
Regional/Local Community-Based Initiatives/Component must address all 
forms of housing discrimination covered under the Fair Housing Act.
    For the Model Codes Component, applicants must partner with a 
Disability Advocacy Group to coordinate with current efforts by HUD to 
identify jurisdictions where activities can be targeted and education 
and outreach can be designed to provide technical assistance to these 
jurisdictions that wish to adopt HUD-recognized Fair Housing Act safe 
harbor codes. In addition, applicants must identify and coordinate with 
jurisdictions that want to update their existing codes to incorporate 
one of the safe harbors.
    Lastly, President Bush announced an ambitious plan to help close 
the homeownership gap by increasing minority homeownership by 5.5 
million families before the end of the decade. This year, HUD has 
included under this NOFA the Fair Housing and Minority Homeownership 
Component, where applicants must demonstrate the ability to conduct 
community outreach activities to educate people about their rights 
under the Fair Housing Act and to prepare them for homeownership. The 
goal of this Component is to improve access to homeownership by racial 
and ethnic minorities by educating them about fair housing, the home 
buying process and generally to help prepare participants for the 
responsibilities of homeownership.
    (F) Eligible Activities. (1) Private Enforcement Initiative (PEI). 
This Initiative assists private, tax-exempt fair housing enforcement 
organizations in the investigation and enforcement of alleged 
violations of the Act and substantially equivalent State and local fair 
housing laws. As a condition of funding, you will be required to refer 
to HUD all cases arising from FHIP-funded enforcement activities (see 
Mandatory Referrals, Section IV below).
    (a) Eligible Applicants. Eligible applicants are fair housing 
enforcement organizations (FHOs) with at least one year of experience 
in complaint intake, complaint investigation, testing for fair housing 
violations, and meritorious claims in the two years prior to the filing 
of this application (24 CFR 125.401(b)(2)) and Qualified Fair Housing 
Enforcement Organizations (QFHOs) with at least two years of 
enforcement-related experience, as noted above, and meritorious claims 
in the three years prior to filing this application, (24 CFR 125.103). 
You must certify, in the Statement of Eligibility that you submit with 
this application, that your organization is an FHO or a QFHO and 
document in the Statement of Eligibility that your organization has the 
required one or two years of enforcement-related experience. All 
applicants claiming QFHO and FHO status are required to be a 501(c)(3) 
tax-exempt organization and also to submit with their application a 
copy of its Letter of Determination from the Internal Revenue Service 
(IRS) in support of its 501(c)(3) tax-exempt status.
    (b) Eligibility of Successor Organization. HUD recognizes that 
QFHOs and FHOs may merge with each other or other organizations. The 
merger of a QFHO or an FHO with a new organization, that has a separate 
Employer Identification Number (EIN), does not confer QFHO or FHO 
status upon the successor. To determine whether the successor 
organization meets the eligibility requirements for this Initiative, 
HUD will look at the enforcement-related experience of the successor 
organization (based upon the successor organization's EIN). The 
successor organization is not eligible to apply under this Initiative 
unless it establishes in the Statement of Eligibility that it is a 
private, tax-exempt organization with the requisite two years of 
enforcement related experience for a QFHO or one year experience for an 
FHO.
    (c) Eligible Activities include either:
    (i) Complaint intake of allegations of housing discrimination, 
testing, evaluating testing results, or providing other investigative 
and complaint support for administrative and judicial enforcement of 
fair housing laws; or
    (ii) Investigations of individual complaints and systemic housing 
discrimination for further enforcement processing by HUD, through 
testing and other investigative methods; or
    (iii) Mediated agreements or other voluntary resolution of 
allegations of fair housing discrimination after a complaint has been 
filed; and
    (iv) Litigating fair housing cases including procuring expert 
witnesses.
    (2) Education and Outreach Initiative (EOI). This Initiative 
assists projects that inform the public about the rights and 
obligations under the Act and substantially equivalent State and local 
fair housing laws. Under this Initiative, you must develop a complaint 
referral process so that activities funded under this Initiative will 
result in referrals to HUD of fair housing complaints and other 
information regarding possible discriminatory housing practices. 
Applications are solicited for this Initiative under the EOI-Regional/
Local/Community-Based Program--in which activities are conducted on a 
regional/local/community-based level; and, under a National Program. 
You may submit your application for the Regional/Local/Community-Based 
General Component, Disability Component, the Hispanic Fair Housing 
Awareness Component; the Fair Housing and Minority Homeownership 
Component or the National Program's Model Codes Component depending 
upon its focus.
    (a) Eligible Applicants. Eligible applicants are QFHOs; FHOs; 
public or private, for-profit or not-for-profit organizations or 
institutions and other public or private entities that are formulating 
or carrying out programs to prevent or eliminate discriminatory housing 
practices (including entities that will be established as a result of 
receiving an award under this FHIP NOFA); agencies of State or local 
governments; and agencies that participate in the FHAP (see the list of 
FHAP agencies at Appendix D). If you are a disability advocacy group, 
an organization that identifies or connects/communicates with 
Hispanics, grassroots faith-based and other community-based 
organization, minority universities or institutions, or traditional 
civil rights organization, you are encouraged to apply under this 
Initiative.
    (b) Eligible Activities. The following are eligible activities for 
EOI: Conducting educational symposia or other training; developing new 
and innovative fair housing activities or

[[Page 21200]]

materials throughout your project area; providing outreach and 
information on fair housing through printed and electronic media; 
developing fair housing curricula, and providing outreach to persons 
with disabilities and/or their support organizations and service 
housing providers working with homeless activists or persons to 
determine if fair housing plays a part in the homeless situation, and 
the general public regarding the rights of persons with disabilities 
under the Act. When conducting your outreach activities, we also 
encourage the use of existing, fair housing materials; except that we 
require that you translate these existing materials in languages other 
than English. The applicants for the Regional/Local/Community-Based 
Programs who submit an application in conjunction with a grassroots 
faith-based and other community-based organization must include in 
their application a letter of firm commitment from that grassroots 
faith-based and other community based organization. This letter of firm 
commitment must: (1) Identify the grassroots faith-based and other 
community-based organization; (2) identify the activities/tasks to be 
undertaken by the grassroots faith-based and other community-based 
organization under the project; and (3) be signed by the individual or 
organization with legal authority to make commitments for the 
organization. These components are described below:
    Disability Component. Applications that emphasize the fair housing 
needs of persons with disabilities, so that persons with disabilities, 
housing providers and the general public better understand the rights 
and obligations under the Act and more fully appreciate the forms of 
housing discrimination that persons with disabilities may encounter, 
should submit their applications to the EOI-Disability Component. 
Although the component has a disability focus, the funded activities 
must provide education and outreach to all persons protected under the 
Act.
    Hispanic Fair Housing Awareness Component. Applicants must be able 
to provide bilingual materials and services to Hispanics so that they 
are aware of and educated about their fair housing rights and 
responsibilities under the Fair Housing Act. In addition, applicants 
must have staff who are bilingual and have demonstrated experience, 
which is defined as 5 years of proven experience in providing social 
services to persons of Hispanic origin or must have established a 
partnership with an established faith-based or other community-based 
organization to carry out the objectives of this component and three 
years of experience with the applicant. Although the component has a 
focus in providing education and outreach to Hispanic communities, the 
funded activities must provide education and outreach in a non-
discriminatory manner. Grantees may not deny services to a client who 
is not Hispanic.
    Fair Housing and Minority Homeownership Component. Today, 
homeownership in America is at an all time high--but not all Americans 
have benefited. While 75% of white Americans own their own homes, less 
than half of all African Americans and Hispanic Americans are 
homeowners. Even with a surge in homeownership during the 1990's, the 
homeownership gap between minority and white households declined by 
just 1.5 percentage points. In June 2002, President George W. Bush 
announced an ambitious plan to help close the homeownership gap by 
increasing minority homeownership by 5.5 million families before the 
end of the decade. Educating homebuyers is an important step in meeting 
the President's challenge and there is a strong tie between equal 
housing opportunity and minority homeownership.
    Under the Fair Housing and Minority Homeownership Component, 
applicants must demonstrate the ability to conduct community outreach 
activities to educate people about their rights under the Fair Housing 
Act and to prepare them for homeownership. The goal of this Component 
is to improve access to homeownership by racial and ethnic minorities 
by educating them about fair housing and how to recognize 
discriminatory housing practices in sales and financing of housing. 
Applicants must demonstrate the ability to educate participants about 
various forms of unlawful discrimination including discrimination in 
the sale of dwellings, discrimination in the financing of dwellings and 
unlawful segregation resulting from steering and other activities. 
Please ensure that all activities are tied to the protections outlined 
in the Fair Housing Act.
    General Component. Applications for all other fair housing 
education and outreach activities should be submitted to the EOI-
General Component.
    The fifth component is the National Program--Model Codes Component.
    The purpose of this component of the National Program is to 
increase compliance with the Fair Housing Act's accessible design and 
construction requirements through activities that will promote a 
collaborative partnership among builders and State and local government 
building code entities and disability advocacy or fair housing groups. 
These collaborations will ultimately result in encouraging the adoption 
of model building codes at the State and local level that are 
consistent with the accessibility requirements of the Fair Housing Act, 
its regulations and the Fair Housing Accessibility Guidelines. 
Activities to be carried out will involve taking steps to encourage 
State and local jurisdictions to adopt building codes that incorporate 
one of the HUD-recognized safe harbors for compliance. (These safe 
harbors are discussed below). Activities must be done in a manner that 
recognizes that under the Fair Housing Act, HUD cannot compel the 
adoption of model codes but HUD is encouraging jurisdictions to adopt 
such codes.
    Activities may include identifying jurisdictions toward which to 
target activities and education and outreach designed to provide 
technical assistance to jurisdictions that wish to adopt HUD-recognized 
Fair Housing Act safe harbor codes or update their existing codes to 
incorporate one of the safe harbors. This may be done through direct 
meetings, educational workshops, on-line ``how to'' technical 
assistance, and technical assistance to State and local communities 
that may be in the process of updating State or local building codes. 
Such technical assistance shall include educating entities on 
incorporating commentary or appendices to their codes.
    These kinds of activities may be carried out under this NOFA:
    (1) Assisting State and local jurisdictions that modify their 
existing building codes so that they are consistent with the 
accessibility requirements of the Fair Housing Act and the Fair Housing 
Accessibility Guidelines, the ANSI A117.1 technical standards;
    (2) Educating State and local officials on the requirements of the 
Fair Housing Act and the Fair Housing Accessibility Guidelines, the 
ANSI A117.1 technical standards, or the State or local building codes 
if such codes already incorporate requirements that are consistent with 
the Act;
    (3) Developing an electronically accessible ``Best Practices 
Directory'' for dissemination of information to those interested in 
finding peer communities and organizations that have successfully 
adopted or revised their model building codes to meet the Fair Housing 
Act's accessibility requirements, the Fair Housing Accessibility 
Guidelines, and the ANSI A117.1 technical standards;
    (4) Providing assistance and reviewing proposed modifications of 
language to be included in building

[[Page 21201]]

codes to ensure that such codes meet the Fair Housing Act's 
accessibility requirements, the Fair Housing Accessibility Guidelines, 
and the ANSI A117.1 technical standards. (2)
    (5) Encouraging jurisdictions to use one of the former three model 
codes, i.e., the Uniform Building Code, the Standard Building Code, or 
the BOCA National Building Code to update their codes to address 
inconsistencies identified in HUD's Final Report on the Review of Model 
Building Codes, published in the Federal Register on March 23, 2000.
    There are currently seven documents recognized by HUD as providing 
a safe harbor for meeting the accessibility requirements of the Fair 
Housing Act. The seven documents include the following:
    1. HUD's March 6, 1991 Fair Housing Accessibility Guidelines (the 
Guidelines) and the June 28, 1994 Supplemental Notice to Fair Housing 
Accessibility Guidelines: Questions and Answers about the Guidelines;
    2. ANSI A117.1--1986--Accessible and Usable Buildings and 
Facilities, used in conjunction with the Act, HUD's Regulations, and 
the Guidelines;
    3. CABO/ANSI A117.1--1992--Accessible and Usable Buildings and 
Facilities, used in conjunction with the Act, HUD's regulations, and 
the Guidelines;
    4. ICC/ANSI A117.1--1998--Accessible and Usable Buildings and 
Facilities, used in conjunction the Act, HUD's regulations, and the 
Guidelines;
    5. HUD's Fair Housing Act Design Manual;
    6. Code Requirements for Housing Accessibility 2000 (CRHA), 
approved and published by the International Code Council (ICC), October 
2000; and,
    7. International Building Code (IBC) 2000 as amended by the IBC 
2001 Supplement to the International Building Codes.
    It is important to note that the ANSI A117.1 standard contains only 
technical criteria, whereas the Act, HUD's regulations, and the 
Guidelines contain both scoping and technical criteria. Therefore, in 
using any of the ANSI standards, it is necessary to also consult the 
Act, HUD's regulations, and the Guidelines for the scoping 
requirements. The CRHA and the IBC contain both scoping and technical 
criteria and are written in building code language, which make them 
readily adoptable by state and local jurisdictions.
    (3) Fair Housing Organizations Initiative (FHOI). This Initiative 
provides assistance to projects (sponsoring organizations) that 
establish or build the capacity of organizations to become viable fair 
housing enforcement organizations that conduct fair housing enforcement 
activities in underserved areas (as defined in Section IV) in rural 
areas, in the Colonias, and areas with new immigrants (especially 
racial and ethnic minorities who are not English-speaking or have 
limited English proficiency). This is accomplished with the assistance 
of a sponsoring organization. It is the sponsoring organization that 
submits the application under this Initiative and certifies the 
sponsored organization's ability to become a QFHO or FHO (Note: The 
sponsoring organization is ineligible if they received a grant under 
this Initiative in 2001 or 2002.) The sponsored organization whose 
enforcement capacity is established or enhanced by funding under this 
Initiative, will be allowed to participate in this Initiative for three 
years contingent upon annual performance reviews. Funds are allocated 
under this NOFA for this Initiative for 3 years and distributed to the 
sponsored organization by the sponsoring organization. The sponsoring 
organization may expend FHIP funds for administrative costs as 
described below. HUD has targeted for funding under this Initiative 
projects that will provide fair housing enforcement services to the 
Colonias, rural areas, and to underserved areas, and to immigrants 
(especially racial and ethnic minorities who are not English speaking 
or have limited English proficiency).
    (a) Eligible Applicants. Only the sponsoring organization is 
eligible to apply under this Initiative. The sponsoring organization 
must be a qualified fair housing enforcement organization (QFHO). You 
must certify in the Statement of Eligibility that you submit with this 
application that your organization is a QFHO.
    (b) Eligible Activities. The proposed activities must build the 
enforcement capacity of the sponsored organization so that it can 
undertake all of the following activities by the conclusion of year 3 
of the grant cycle:
    (i) Complaint intake of allegations of housing discrimination, 
testing, evaluating testing results or providing other investigative 
and complaint support for administrative and judicial enforcement of 
fair housing laws;
    (ii) Investigations of individual complaints and systemic housing 
discrimination for further enforcement processing by HUD, through 
testing and other investigative methods;
    (iii) Mediation or other voluntary resolution of allegations of 
fair housing discrimination after a complaint has been filed; and
    (iv) Litigating fair housing cases including procuring expert 
witnesses.
    (c) Administrative Costs for the Sponsoring Organization. The 
sponsoring organization may use no more than 15 percent of the annually 
awarded funds to cover its costs to administer the grant.

IV. Program Requirements

    (A) Requirements for All Initiatives. In addition to the Threshold 
Requirements in Section V of the General Section of this SuperNOFA, 
your FHIP-funded program application must also meet the following 
requirements:
    (1) Protected Basis. All FHIP-funded projects must address housing 
discrimination based upon race, color, religion, sex, disability, 
familial status, or national origin.
    (2) Performance Measures and Products. For all Initiatives, your 
application must demonstrate how your project activities will support 
HUD goals, identify performance measures/outcomes in support of those 
goals, describe your proposed record-keeping and evaluation systems, 
and identify current (baseline) conditions and target levels of the 
performance measures that you plan to achieve. For PEI, your 
application also must contain a strategy for generating enforcement 
related project products, with related timelines and milestones. For 
FHOI, if the sponsoring organization is enhancing an existing 
organization, then the sponsoring organization must submit a statement 
outlining: (1) What is expected of the sponsored organization, and (2) 
that the sponsored organization will be part of the program. If the 
sponsoring organization is being created, then the sponsored 
organization must submit a mission statement for the sponsoring 
organization and a timeline for creation and independence. If selected 
for funding, your final performance measures will be negotiated between 
you and HUD as part of your executed grant agreement.
    (3) Reports and Meetings on Performance Measures and Products. 
Refer to the mandatory use of the Logic Model provided in the forms 
appended to the General Section.
    (4) Single Applications. Except for applicants under FHOI, all 
applicants may only submit one application under the FHIP. FHOI 
applicants may apply under FHOI and one other Initiative. Applicants 
must determine which Initiative/Component to which they want to apply 
and submit a completed application to only that Initiative/Component. 
Multiple applications

[[Page 21202]]

applying to more than one, except FHOI, Initiative/Component will be 
treated as a technical deficiency and the applicant will be asked to 
identify which application they want reviewed.
    (5) Independence of Awards. HUD will review each application 
separately and without reference to other applications submitted by you 
or others. However, the application you submit must be independent and 
capable of being implemented without reliance on the selection of other 
applications submitted by you or other applicants.
    (6) Project Starting Period. For planning purposes, assume a start 
date no later than March 1, 2004.
    (7) Page Limitation and Formatting Requirements. The maximum 
narrative page requirement is ten (10) pages per factor. All pages in 
your application must be numbered consecutively from beginning to end. 
The narrative pages must be double-spaced (no more than three lines per 
vertical inch). This includes all narrative text, titles and headings. 
(However, you may single space footnotes, quotations, references, 
captions, charts, forms, tables, figures and graphs). You are required 
to use 12 point typesize. A page is 8.5'' x 11'', on one side only, 
with 1'' margins top, bottom, right and left. You must respond fully to 
each factor to obtain maximum points. Failure to provide narrative 
responses to all factors or omitting requested information will result 
in less than the maximum points available for the given rating factor 
or sub-factors. Failure to provide double spaced, 12 point typesize 
narrative responses will result in five points being deducted from your 
overall score (one point per factor). Failure to consecutively number 
pages within your application will result in one point being deducted 
from your overall score.
    (8) Training funds. Your proposed budget must set-aside funds to 
participate in HUD mandatory sponsored or approved training $3000 for 
12-18 month projects (EOI and PEI); and $6000 annually for 36 month 
projects (FHOI). For FHOI, there must be attendance from the sponsoring 
and sponsored organization.
    Requests to attend HUD-approved training must be submitted to the 
GTR for approval in advance of the requested training. Do not include 
amounts over the $3000 or $6000 (as appropriate) for the training set-
aside in this category. If applicants do not include these funds in the 
budget and you are selected for an award, HUD may modify your budget, 
reallocating the appropriate amount for training. If awardee's key 
personnel do not attend mandatory HUD-approved or HUD-sponsored 
training, training funds must be returned to HUD and it will be 
reflected on your performance assessment.
    (9) Payment Contingent on Completion. Payment of FHIP funds is made 
on a reimbursement basis. Payments are contingent on the satisfactory 
and timely completion of your project activities and products as 
reflected in your grant or cooperative agreement. Requests for funds 
must be accompanied by financial and progress reports.
    (10) Accessibility Requirements. All activities, facilities, and 
materials funded by this Program must be accessible to persons with 
disabilities (24 CFR 8.2, 8.4, 8.6, and 8.54).
    (11) Copyright Materials. You may copyright any work that is 
eligible for copyright protection subject to HUD's right to reproduce, 
publish, or otherwise use your work for Federal purposes, and to 
authorize others to do so as required in 24 CFR 84.36.
    (12) Complaints Against Awardees. Each FHIP award is overseen by a 
HUD Grant Officer (See Appendix B for list of Grant Officers per 
region). Complaints from the public against FHIP grantees should be 
forwarded to the Grant Officer. The Grant Officer's name and contact 
information is provided in the grant agreement. If, after notice and 
consideration of relevant information, the Grant Officer concludes that 
there has been inappropriate conduct, such as a violation of FHIP 
program requirements, terms or conditions of the grant, or any other 
applicable statute, regulation or other requirement, HUD will take 
appropriate action in accordance with 24 CFR 84.62. Such action may 
include: written reprimand; consideration of past performance in 
awarding future FHIP applications; repayment to HUD of funds received 
under the grant; or temporary or permanent denial of participation in 
the FHIP in accordance with 24 CFR part 24.
    (13) Double Payments. If you are awarded funds under this NOFA, you 
(and any subcontractor or consultant) may not charge or claim credit 
for the activities performed under this project under any other Federal 
project.
    (14) Award Instrument. The type of funding instrument HUD may offer 
a successful applicant which sets forth the relationship between HUD 
and the grantee will be a grant or cooperative agreement, where the 
principal purpose is the transfer of funds, property, services, or 
anything of value to the applicant to accomplish a public purpose. The 
agreement will identify the eligible activities to be undertaken, 
financial controls, and special conditions, including sanctions for 
violations of the agreement. HUD will determine the type of instrument 
under which your award will be made and monitor your progress to ensure 
that you have achieved the objectives set out in your agreement. 
Failure to meet such objectives may be the basis for HUD determining 
your agreement in default and exercising available sanctions, including 
suspension, termination, and/or the recapture of your funds. Also HUD 
may refer violations or suspected violations to enforcement offices 
within HUD, the Department of Justice, or other enforcement 
authorities.
    (15) Reallocation of Funds. If after all applications within 
funding range have been selected or obligations are completed in an 
Initiative and funds remain available, the selecting official or 
designee will have the discretion to reallocate leftover funds in rank 
order between initiatives as follows:
    (a) For EOI, any remaining funds from any component will be 
reallocated first within the initiative; if after reallocating funds 
within the initiative left over funds remain, they shall be reallocated 
to PEI then to FHOI;
    (b) For PEI, any remaining funds will be reallocated to EOI then to 
FHOI;
    (c) For FHOI, left over funds will be reallocated to PEI then to 
EOI.
    Reallocated funds will be awarded within initiative as described in 
Section V of this Program Section of the SuperNOFA.
    (16) Affirmatively Furthering Fair Housing. A separate AFFH 
submission is not required for FHIP.
    (17) Name Check Review. (See General Section).
    (18) Product Information. Press releases and any other product 
intended to be disseminated to the public must be submitted to the 
Government Technical Representative (GTR) 2 weeks before release for 
approval and acceptance.
    (19) Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women Owned Businesses. (See General 
Section).
    (20) Retainer Fees. If you are a recipient of FHIP funds, you 
cannot require any complainant to whom you are providing assistance 
using FHIP funds, to sign a retainer agreement or other contract for 
legal fees as part of the filing, commencement, or maintenance of a 
Fair Housing Act complaint. If the FHIP recipient has a successful 
settlement or a verdict, then the FHIP is able to include its 
reasonable fees as a part of the settlement, though the complainant 
shall be under no obligation to accept such an arrangement. If 
reasonable legal fees are recovered, the FHIP agency must return

[[Page 21203]]

a portion of its recovery to HUD, in proportion to the amount of FHIP 
funds spent on the prosecution of the case.
    Agencies that are the recipients of FHIP funds agree to provide HUD 
with information regarding the recovery of fees and applicable 
reimbursement of FHIP funds to HUD on a yearly basis. All settlements 
and verdicts involving cases processed using FHIP funds are a matter of 
public record. An agency cannot claim attorney-client or other 
privilege against the release of data concerning the case. This 
restriction on withholding of information must be communicated to the 
complainant. The complainant must agree to such a restriction before 
the case can be processed using FHIP funds.
    (21) For FHOI, HUD will fund applications that purpose to provide 
services in underserved areas (See Section III (B)(1)(b) of the FHIP 
Program Section of this NOFA.
    (22) HUD expects applicants to address all forms of housing 
discrimination covered under the Fair Housing Act.
    (23) HUD has determined there is a need to ensure equal opportunity 
and access to housing in communities across the nation.
    (B) Screening/Threshold Review. Only applications that satisfy all 
of the applicable requirements under this FHIP NOFA will be considered 
for funding. The rating of the ``applicant'' or the ``applicant's 
organization and staff'' for technical merit or threshold compliance, 
unless otherwise specified, will include any sub-contractors, 
consultants, sub-recipients, and members of consortia that are firmly 
committed to the project.
    (1) General Section Requirements and Procedures. Applicants are 
ineligible for funding if they do not meet the Threshold Requirements 
set forth in Section V (B), (C) and (D) of the General Section of this 
SuperNOFA.
    (2) Debarment and Suspension. Applicants are ineligible for funding 
if they are debarred and suspended (See General Section).
    (3) Maximum award. Applicants are ineligible for funding if they 
request funding in excess of the maximum allowed under the initiative 
or component for which you are applying your application is ineligible. 
Any amount over the maximum award, even if less than one dollar, will 
be considered a request in excess of the maximum award. In addition, 
inconsistencies in the amount requested and/or miscalculations that 
result in amounts over the maximum award will be considered excessive; 
therefore the application is ineligible.
    (4) Incomplete Application. Applicants are ineligible for funding 
if their application does not include a completed Statement of 
Eligibility.
    (5) Research Activities. Applicants are ineligible for funding if 
100% of their project is aimed solely and primarily at research. Also, 
your application should not require any unapproved surveys or 
questionnaires.
    (6) Eligible Applicants. Applicants are ineligible for funding if 
they do not meet the eligibility requirements for EOI, PEI and FHOI. 
For PEI, you must be a FHO or a QFHO and document in the Statement of 
Eligibility that your organization has the required one or two years of 
enforcement-related experience. For FHOI, you must be a QFHO. For EOI, 
see specific Component requirements.
    (7) Tax Exempt Status. For PEI and FHOI applicants are ineligible 
for funding if they are not a 501(c)(3) tax exempt organization as 
determined by the Internal Revenue Service (IRS). Your application must 
include a copy of your Letter of Determination from the Internal 
Revenue Service, dated prior to the deadline date of this FHIP Program 
Section of the SuperNOFA, establishing your 501(c)(3) tax-exempt 
status. Failure to submit this with your application is a technical 
deficiency.
    (8) Model Codes Component applications. Applicants are ineligible 
for funding if they do not have demonstrated technical expertise in the 
design and construction requirements of the Fair Housing Amendments Act 
of 1988, the applicable implementing regulations, the Fair Housing 
Accessibility Guidelines, the ANSI A117.1 technical standards, and 
State and local building codes.
    Applicants may establish their ``demonstrated technical expertise'' 
in many ways. For example: (a) Your organization has designed or 
conducted training or seminars, (b) your organization's staff has taken 
a course/attended a seminar on the accessibility provisions of the Fair 
Housing Act for and have applied that training to your work as, for 
example, building inspectors, architects, housing providers, or 
developers in a jurisdiction with a building code that incorporates 
these provisions, or (c) your organization's work experience has made 
you thoroughly knowledgeable about design and construction requirements 
of the Fair Housing Act/Accessibility Guidelines, the ANSI A117.1 
technical standards, and State and local building codes. Agendas, 
course(s) descriptions, specific examples of work experiences, and 
years of experience, must be highlighted when establishing demonstrated 
technical expertise.
    Only joint applications filed by a minimum of two entities, at 
least one of which is a national and a State or local disability rights 
advocacy group or organization (national, State or local organization), 
will be considered, and the roles of each partner must be clearly 
delineated. Your application must identify additional sub-recipients 
and consultants/contractors who will work on this project. A letter of 
firm commitment must be included stating that the partner(s) agrees to 
the proposed Statement of Work and will participate in the project, if 
selected for award. If you fail to include this letter of firm 
commitment with your application, your application will be declared 
ineligible for funding.
    (9) Poor Performance. Applicants are ineligible for funding if they 
are a previous FHIP grantee that has received a ``Poor'' performance 
rating for its most recent performance rating from its Government 
Technical Representative. HUD will assess performance ratings for 
applicants who have received FHIP funding in 1999, 2000, or 2001. If 
the applicant has received a ``poor'' performance rating for its most 
recent performance rating from its Government Technical Representative, 
its application is ineligible for FY 2003 competition. An applicant 
that does not agree with its determination of ineligibility for the FY 
2003 competition because of ``poor'' performance must address to HUD's 
satisfaction the factors resulting in the ``poor'' performance rating 
before the FHIP application deadline. If the ``poor'' performance 
rating is not resolved to the Department's satisfaction before the 
application deadline, the application is ineligible for funding. HUD is 
interested in increasing the performance level of all grantees; 
therefore, applicants who are deemed ineligible because of a ``poor'' 
performance rating have the right and are encouraged to seek technical 
assistance from HUD to correct their performance in order to be 
eligible for future NOFA competition.
    (10) Suits Against the United States. Your application is 
ineligible for funding if as a current or past recipient of FHIP funds, 
your organization used any funds provided by HUD for the payment of 
expenses in connection with litigation against the United States (24 
CFR 125.104(f)).
    (11) Other Litigation. Your application is ineligible for funding 
if you used funds under this Program provided by HUD to settle a claim, 
satisfy a judgment, or fulfill a court order in any defensive 
litigation (24 CFR 125.104).

[[Page 21204]]

    (12) Hispanic Fair Housing Awareness Component. Applicants are 
ineligible for funding if staff persons that have been providing 
bilingual services have not been employees with the applicant for 3 of 
the 5 years used to prove eligibility under the Hispanic Fair Housing 
Awareness Component. List all bilingual employees and provide proof of 
employment of staff. Grantees may not deny services to a client who is 
not Hispanic.
    (13) FHOI. Applicants for FHOI only are ineligible if their 
organization received previous FHOI awards in FY 2001 or FY 2002.
    (C) Additional Requirements For PEI and FHOI. (1) Mandatory 
Referrals. You must refer to HUD all cases arising from FHIP-funded 
enforcement activities. In all FHIP-funded cases where you find a basis 
for filing a complaint on behalf of a complainant other than your 
organization, you must file the complaint with HUD unless the 
complainant declines to do so in writing. You must return copies of all 
complaints that the complainant declines to file to HUD. In addition to 
filing complaints with HUD, a complainant may file a civil action in 
Federal or State Court.
    (2) Broad-Based and Full-Serviced. Your organization must conduct a 
broad-based and full-service enforcement project that addresses 
discrimination against all persons protected by the Fair Housing Act on 
the basis of race, color, religion, sex, disability, familial status, 
or national origin.
    (3) Outreach Expenses. The funds awarded for enforcement grants may 
be used for outreach and education activities (hereafter, outreach 
activities) in order to promote awareness of your project's services, 
as follows: under FHOI, you may provide for up to 10 percent of the 
requested funds for the sponsored organization to be used for outreach 
activities; under PEI, you may designate up to 5 percent of the 
requested funds for outreach activities.
    (4) Tester Requirements. Testers in your FHIP-funded testing 
activities must not have prior felony convictions or convictions of 
crimes involving fraud or perjury. All testers must receive training 
acceptable to HUD or be experienced in testing procedures and 
techniques. Testers and the organizations conducting tests, and the 
employees and agents of these organizations may not:
    (a) Have an economic interest in the outcome of the test; except to 
the extent that they could recover damages as provided by law;
    (b) Be a relative related by adoption, blood, or marriage to any 
party in a case;
    (c) Have had any employment or other affiliation, within the past 
year, with the person or organization to be tested; or
    (d) Be a licensed competitor of the person or organization to be 
tested in the listing, rental, sale, or financing of real estate.
    (5) Review and Approval of Testing Methodology. If your SOW 
proposes testing, other than rental housing testing, HUD may require 
copies of the following documents to be reviewed and approved by HUD 
prior to your carrying out the testing activities:
    (a) The testing methodology to be used,
    (b) The training materials to be provided to testers, and
    (c) Other forms, protocols, cover letters, etc. used in the conduct 
of testing and reporting of results.
    The testing methodology and training materials that you submit to 
HUD for review and approval are for enforcement purposes and will 
remain confidential.
    (6) Tester Training. You must provide sufficient information in the 
application to show how testers are trained by your organization and 
how the materials will be used.
    (7) Conflict of Interest and Use of Settlement Funds.
    (a) You may not solicit funds from or seek to provide fair housing 
educational or other services or products for compensation either 
directly or indirectly to any person or organization that has been the 
subject of FHIP-funded testing by your organization during the 12 month 
period following the test. This does not preclude providing training or 
technical assistance that is court ordered or contained in a negotiated 
settlement. HUD reserves the right to impose additional provisions 
addressing potential conflicts of interest in the grant agreement.
    (b) You must reimburse the United States for FHIP-funded activities 
whenever you receive funds as the result of enforcement activities 
funded in whole or in part by the FHIP program, including testing. You 
must provide information about reimbursements and/or potential 
reimbursements in a report that you submit to HUD (see Reports below). 
Provisions regarding terms for reimbursing the United States will be 
specified in your grant or cooperative agreement. This reimbursement 
requirement does not apply to compensation received as a result of a 
judgment in Federal or State Court. Calculate your reimbursement on a 
per complaint basis. Identify the complaint, then subtract the amount 
of non-FHIP funds from the amount of FHIP funds used to resolve the 
complaint. The difference is the amount owed. For example:

Testing Expense = $500 (All FHIP funds used)
Settlement Award = $15,000
Reimburse HUD = $500

    (8) Reports. You must provide reports in a format (which may be 
computer-generated), at a frequency and with contents specified by HUD. 
At a minimum, the report must include the number and basis of 
complaints filed with HUD, with a FHAP agency, or in Federal/State 
Court as well as the number and terms of settlements or other outcomes 
achieved. If HUD does not prescribe a format or frequency, you will 
provide a narrative report within 90 days after all grant activities 
have ended or at the end of each 12 month period of the grant, 
whichever comes first. All settlements and verdicts are public except 
settlements or judgment that a court or other tribunal has ordered to 
be kept confidential. However, all settlements and verdicts are public 
involving cases processed using FHIP funds are a matter of public 
record. Your agency will not be able to claim attorney-client or other 
privileges against the release of data to the Department on any case 
where FHIP funds are used. You will also be required to provide status 
reports on case referrals you have made to HUD or a FHAP agency. These 
reports are for enforcement purposes and will remain confidential.
    (9) Enforcement Log. You are required to record information about 
the funded project in a case tracking log (or Fair Housing Enforcement 
Log) in a format prescribed by HUD. Such information must include: The 
number of complaints of possible discrimination you have received; the 
protected basis of these complaints; the issue, test type, and number 
of tests utilized in the investigation of each allegation; the 
respondent type and testing results; the time for case processing, 
including administrative or judicial proceedings; the cost of testing 
activities and case processing; the entity to which the case was 
referred; and the resolution and type of relief sought and received. 
You must agree to make this log available to HUD. This log will be 
considered confidential for enforcement purposes. This log should only 
have case information in it where FHIP funds were used.
    (10) Attachments. All PEI, FHOI, EOI applicants must submit a 
Statement of Eligibility. All applicants must submit resumes, or 
position descriptions for newly created positions of all key personnel; 
if you received HUD funding

[[Page 21205]]

in the past please submit the most recent SF 269. In addition, FHOI and 
PEI applicants must submit the Internal Revenue Service's, Letter of 
Determination declaring your Section 501(c)(3) status as a tax-exempt 
organization. Failure to submit your IRS Letter of Determination with 
your original application is a technical deficiency.
    (D) Additional Requirements For Education and Outreach Initiative. 
Complaint Referral Process. EOI activities do not end with the delivery 
of outreach and educational activities. Its purpose is to ensure that 
persons are informed of their fair housing rights and to provide 
enforcement assistance to persons who believe they have experienced 
housing discrimination by providing immediate and accurate referral 
information to persons contacting them for assistance. EOI applicants 
must develop a process for referring fair housing complaints to HUD or 
Fair Housing Assistance Program agencies . The referral process must be 
described in the application.
    (E) Additional Requirements For Fair Housing Organizations 
Initiative Sponsored and sponsoring organization's viability and fair 
housing enforcement capacity. Over the duration of the grant, the 
sponsored organization with the help of the sponsoring organization 
must demonstrate its capacity to become a viable, fair housing 
enforcement organization that conducts fair housing-related enforcement 
activities and leverages non-FHIP resources. These are the performance 
measures that, if not met, may result in termination of the grant, and 
your description of how you will achieve these measures will be 
considered when HUD evaluates your application. We will look for this 
description in your response to Rating Factor 3: Soundness of Approach. 
Specifically, the application must address:
    (1) Fair Housing-related enforcement activities. The sponsored 
organization must be able to independently conduct enforcement-related 
activities by the conclusion of year 3 of the grant including: 
complaint intake, complaint investigation, testing for fair housing 
violations, and meritorious claims. Your application must identify 
which activities the sponsored organization will conduct at the end of 
the grant year 1, 2 and 3. A pro-forma budget must be submitted for the 
sponsored organization showing how funds will be allocated and 
accounted for in each of the grant years. Your performance measures 
will be based upon this description, and failure to meet them may 
result in termination of your grant or cooperative agreement.
    (2) Organizational resources. The sponsored organization must not 
rely exclusively on FHIP funding. At the conclusion of each grant year, 
the sponsored organization must show increasing support from sources 
other than what is awarded under this program. Specifically, at the 
conclusion of year 1, no less than 5% of the funds supporting the 
sponsored organization's fair housing enforcement-related activities 
must be funded from non-FHIP funds; at the conclusion of year 2, no 
less than 10% of the funds supporting the sponsored organization's fair 
housing enforcement-related activities must be from non-FHIP funds; and 
at the conclusion of year 3, no less than 20% of the funds supporting 
the sponsored organization's fair housing enforcement-related 
activities must be from non-FHIP funds. Your application and budget 
must state how you will meet these requirements. Your performance 
measures will be based upon these requirements, and failure to meet 
them may result in termination of the grant.
    In addition, the sponsoring organization must demonstrate its 
capacity to maintain itself as a viable, fair housing enforcement 
organization that has the ability to sustain itself over the course of 
the grant.

V. Application Selection Process

    (A) Rating and Ranking. Although all rating factors are organized 
the same way for all FHIP initiatives, there are differences in 
application requirements and rating criteria, which are indicated 
throughout the Rating Factor instructions. Your application for funding 
will be evaluated competitively against all other applications 
submitted under one of the following initiatives or components:
    (1) Private Enforcement Initiative (PEI);
    (2) Education and Outreach Initiative (EOI);
    (a) Regional/Local/Community-Based Program:
    (i) General Component (EOI-GC);
    (ii) Disability Component (EOI-DC);
    (iii) Hispanic Fair Housing Awareness Component (EOI-HA);
    (iv) Fair Housing and Minority Homeownership Component (EOI-HC);
    (b) National Program:
    (i) Model Codes Component;
    (3) Fair Housing Organizations Initiative (FHOI)
    All eligible applications will be reviewed and points awarded based 
upon: (1) Your narrative responses to the Factors for Award and 
accompanying materials (e.g., resumes) and (2) bonus points, if 
entitled. Ineligible applications will not be ranked. The maximum 
number of points to be awarded for the Rating Factors is 100. See 
Section VI (C) of the General Section for discussion on Bonus Points. 
Applications with a score of seventy-five (75) points or more will be 
considered of sufficient quality for funding. The Selecting Official 
will not select for award any application with a score below seventy-
five (75) points. Generally, applications of sufficient quality for 
funding will be selected in rank order under each initiative or 
component. HUD reserves the right to select applicants out of rank 
order to achieve greater geographic distribution of awards under each 
initiative or component, as described in Section V (C) below. 
Selections under each initiative or component will continue to be made 
until either all allocated funds have been obligated or until no 
applications of sufficient quality remain.
    (B) Tie Breaking. When two or more applications have the same total 
overall score, the application with the higher score under Rating 
Factor 3: Soundness of Approach will be ranked higher. If this does not 
break the tie, the application with the higher score under Rating 
Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience will be ranked higher. If this does not break the tie, the 
application requesting the lower amount of FHIP funding will be ranked 
higher. Finally, if this does not break the tie, the application with 
the higher score under Rating Factor 2 will be rated higher.
    (C) Achieving Geographic Diversity of Awards. (1) PEI and EOI. HUD 
reserves the right to select applications out of rank order under 
geographic diversity, to ensure that, to the extent possible, 
applications from more states for each initiative or component are 
selected for funding. If the Selecting Official exercises this 
discretion, there will be two determinants used: (a) Geography and (b) 
score. Geographic diversity shall be applied to all qualified 
applications (applications of sufficient quality for funding--
applications that received a score of 75 or more points) in each 
Initiative or Component in which the Selecting Official applies 
geographic diversity. The geographic diversity provision will be 
applied as follows: when there are two or more applications of 
sufficient quality from the same state, the application(s) with the 
lower score(s) will be moved to the end of the qualified queue. The 
applications moved to the end of the qualified queue will retain their 
geographic rank order.

[[Page 21206]]

If sufficient funds remain, it is possible that applications moved to 
the end of the queue may be selected for award.
    (2) FHOI. The geographic diversity provision does not apply to 
FHOI.
    (D) Factors for Award Used to Evaluate and Rate PEI, FHOI and EOI 
Regional/Local Community-Based Applications. The factors for rating and 
ranking applications and the maximum points for each Rating Factor are 
described below. Failure to provide the required information under the 
appropriate Factor will result in a lower score for that Factor--for 
example, information in the Project Abstract, although useful for 
obtaining a concise summary of the proposed activities is not 
considered in the rating of applications.
    Please respond fully to the criteria in each Rating Factor and sub-
factor and, when directed, provide other information in support of your 
response. The Factors for Award are set out as follows:
    In general. This section applies to all applicants. Your responses 
to each Rating Factor and including the ``In Addition'' section below 
must not exceed the 10 page Rating Factor requirement.
    In addition. This section identifies issues to which you must 
respond, if required, by the particular Initiative or Component for 
which you are applying.

Rating Factor 1: Capacity of Applicant and Relevant Organizational 
Experience (25 Points)

    You must describe staff expertise and your organization's ability 
to complete the proposed activities within the grant period.
    In General. HUD recognizes that, in carrying out the proposed 
activities, you may have persons already on staff, plan to hire 
additional staff, or rely on subcontractors or consultants to perform 
specific tasks. You must describe your staffing plan and the extent to 
which you plan to add staff (employees) or contractors. If your 
application proposes using subcontractors and these subcontractor 
activities amount to more than 10 percent of your total activities, you 
must submit a separate budget for each subcontractor. Failure to 
include a separate budget will result in lower points being assessed to 
your application.

(5) Points Current FHIP Grantees

(10) Points for New Applicants

    a. Number and expertise of staff (this includes subcontractors and 
consultants). You must show that you will have sufficient, qualified 
staff who will be available to complete the proposed activities. 
Provide the following information for all staff assigned to or hired 
for this project, not just key personnel (those persons identified in 
attachments to Rating Factor 3: Soundness of Approach):
    (i) Identify, by name and/or title, all persons that will be 
assigned to the project. You must describe the knowledge and experience 
of the proposed overall project director and day-to-day program manager 
(whose duties and responsibilities include managing all program and 
administrative activities as outlined in the SOW and ensuring that all 
timelines are met), in planning and managing projects similar in scope 
and complex interdisciplinary programs. Indicate the percentage of time 
that key personnel will devote to your project. To receive maximum 
points, your day-to-day program manager must devote a minimum of 75% of 
his/her time to the project. For day-to-day managers who do not have at 
least 75% of their time devoted to the project, no points will be 
awarded under this sub-factor. You may demonstrate capacity by 
thoroughly describing your prior experience in fair housing. You should 
indicate how this prior experience will be used in carrying out your 
proposed activities. Your application must clearly identify those 
persons that are on staff at the time this application is filed, and 
those persons who will be assigned at a later date; describe each 
person's duties and responsibilities and their expertise (including 
years of experience) to perform project tasks; indicate whether the 
staff person is assigned to work full-time or part-time (if part-time, 
indicate the percentage of time each person is assigned to the 
project).
    (ii) Attach resumes for all key personnel or position descriptions 
for newly created positions. (Resumes or position descriptions do not 
count against the ten-page limit.)

(10) Points for Current FHIP Grantees

(15) Points for New Applicants

    b. Organizational experience. In responding to this subfactor, you 
must show that your organization has: (1) Conducted a past project or 
projects similar in scope and complexity to the project proposed in 
this application (whether FHIP-funded or not), or (2) engaged in 
activities that, although not similar, are readily transferable to the 
proposed project. Experience will be judged in terms of recent, 
relevant and successful experience of your staff to undertake eligible 
activities.
    In rating this factor, HUD will consider experience within the last 
3 years to be recent, experience pertaining to the specific activities 
to be relevant, and experience producing measurable accomplishments to 
be successful. The more recent the experience and the more experience 
your own staff members who work on the project have in successfully 
conducting and completing similar activities, the greater the number of 
points you will receive for this rating factor. For all applicants, 
your fully completed and signed Statement of Eligibility will also be 
considered as part of your organizational experience. The applicant 
organization must state within its application that it is based in an 
area considered by the Department as Colonias.
    In addition. If you are applying for funding under the EOI-Hispanic 
Fair Housing Awareness Component, provide the following information 
when responding to this sub-factor.
    (i) A list of all bilingual materials you have distributed
    (ii) A description of specific instances where projects similar to 
the scope and activities proposed in this application had an impact in 
a Hispanic community.
    (iii) A description of recent relevant experience. Recent 
experience is experience within the past 3 years. Grantees may not deny 
services to a client who is not Hispanic.
    In addition. If you are applying for funding under the EOI-Fair 
Housing and Minority Homeownership Component, provide the following 
information when responding to this subfactor:
    (i) A description of staff's experience in providing fair housing 
and homeownership advice with the objective of increasing awareness of 
homeownership opportunities and
    (ii) A description of staff's experience and accomplishments in 
advocating with the real estate industry, the mortgage lending 
industry, appraisers, and developers to increase awareness of 
homeownership opportunities.
    In addition. If you are applying for funding under PEI or FHOI, 
provide the following information when responding to this subfactor:
    (i) Describe the procedure you will use to ensure that testers 
comply with the requirements in Section IV(B)(3) of the FHIP Program 
Section of the SuperNOFA.
    (ii) If you propose to conduct testing (other than rental or 
accessibility testing), projects proposing testing in the specific 
areas (for example, if testing is for sales of housing), your 
application should outline your sales testing

[[Page 21207]]

experience) should document that, at a minimum, you have conducted 
successful testing in those areas. Provide a general description of 
when and where the tests occurred, the entities tested, and the overall 
results of the tests, including complaints filed and the settlements or 
remedies secured.
    FHOI. Provide a statement of organizational capacity and experience 
of the sponsored organization and a list of persons who will work on 
the project along with their experience.

(10) Points for Current FHIP Grantees

(0) Points for New Applicants

    c. Performance on past project(s). You must describe your 
organization's past performance in conducting activities relevant to 
your proposal, in the past three years (FY 1999-2001 FHIP grants), 
demonstrating good financial management and documenting timely use of 
funds, timely reporting and submissions of tasks and deliverables. HUD 
may supplement information you provide with relevant information on-
hand or available from public sources such as newspapers, Inspector 
General or General Accounting Office Reports or Findings, hotline 
complaints that have been proven to have merit, or other such sources 
of information. In evaluating past performance, the following points 
will be deducted from your score under this rating sub-factor:

10 points will be deducted if you received a ``fair performance'' 
assessment;
5 points will be deducted if you received a ``good performance'' 
assessment; and
0 points will be deducted if you received an ``excellent performance'' 
assessment.

    In addition. If you have received an FHOI or a PEI award under the 
FY 1999, 2000, or 2001 FHIP Program Section of the SuperNOFA, you must:
    (i) Discuss your compliance with the mandatory referral requirement 
of all cases arising from FHIP-funded activities requirement, as 
described in the FY 1999, 2000, and 2001 FHIP Program Section of the 
SuperNOFAs. Five (5) points will be deducted for this subfactor if you 
do not show in your application compliance with the requirement. The 
compliance discussion should provide an explanation if discrepancies 
exist. For example, your application notes receipt of 100 applications. 
It also notes that only 25 complaints were referred. There should be an 
explanation for the difference of 75 complaints.
    (ii) Discuss your compliance with the requirement to reimburse the 
Federal government for compensation received from FHIP-funded 
enforcement activities. If you have not reimbursed the Federal 
government for such compensation, explain why you have not. Also, state 
whether you reported to HUD any likely compensation that may result in 
such reimbursement. Two (2) points will be deducted for this sub-factor 
if you have not complied with the requirement.

Rating Factor 2: Need/Distress/Extent of the Problem (20 Points)

    This factor addresses the extent to which there is a need for 
funding the proposed activities to address a documented fair housing 
problem(s) in the target area(s). You will be evaluated on the 
information that you submit that describes the fair housing need in the 
geographic area you propose to serve, its urgency and how your project 
is responsive to that need. You must also describe whether you and/or 
your project are not served by a State or local FHAP agency.

(15 Points for PEI/EOI and 20 Points for FHOI)

    a. Documentation of Need. To justify the need for your project, PEI 
and EOI applicants must describe the following:
    (1) The fair housing need, including:
    (i) Geographic area to be served;
    (ii) Populations that will be served--your project must serve all 
persons protected by the Act; and
    (iii) The presence of housing discrimination, segregation and/or 
other indices of discrimination in the project area based upon race, 
color, religion, sex, national origin, familial status, or disability.
    (2) The urgency of the identified need. For example:
    (i) The potential consequences to persons if your application is 
not selected for funding;
    (ii) The extent to which the organizations provides the services 
identified in your application;
    (3) Other sources that support the need and urgency for this 
project. For example, make reference to reports, statistics, or other 
data sources that you used that are sound and reliable, including but 
not limited to, HUD or other Federal, state or local government reports 
analyses, relevant economic and/or demographic data, including those 
that show segregation, foundation reports and studies, news articles, 
and other information that relate to the identified need. Chapter V of 
the Fair Housing Planning Guide, Vol. 1 has other suggestions for 
supporting documentation. You may access the Guide from the HUD web at 
www.hud.gov.
    To receive maximum points under this subfactor, applicants must 
submit data and studies that support (1), (2), and (3) above. Those 
that address each category and submit supporting data will receive 
higher points than those that do not.
    For FHOI: To justify the need for a sponsored organization under 
FHOI, the sponsoring organization must describe the following:
    (i) Populations that will be served--HUD has targeted for funding 
under this Initiative, projects that will provide fair housing 
enforcement services to underserved areas, rural areas, the Colonias, 
and areas serving individuals who are immigrants (especially racial and 
ethnic minorities who are not English-speaking or have limited English 
proficiency).
    (ii) The presence of housing discrimination, segregation and/or 
other indices of discrimination in the project area based upon race, 
color, religion, sex, national origin, familial status, or disability 
and submit data and studies that support your claim; and
    (iii) Why the project area is underserved and why the proposed 
sponsored organization is needed. Your proposal must serve all persons 
protected by the Act.
    For example, make reference to reports, statistics, or other data 
sources that you used that are sound and reliable, including but not 
limited to, HUD or other Federal, state or local government reports 
analyses, relevant economic and/or demographic data, including those 
that show segregation, foundation reports and studies, news articles, 
and other information that relate to the identified need.
    For all applicants: If the fair housing needs you have identified 
are not covered under the Consolidated Plan and Analysis of Impediments 
to Fair Housing Choice (AI) or if your locality does not have a CP or 
AI, you should so indicate, and use other sound data sources to 
identify the level of need and the urgency in meeting the need. If your 
application addresses needs that are identified in the AI, you will 
receive more points than applicants located in an area with an AI that 
do not relate their program to the identified needs in the AI. For you 
to receive maximum points for this factor, there must be a direct 
relationship between your proposed activities, community needs, and the 
purpose of the program funding.
    To the extent possible, the data you use should be specific to the 
area where the proposed activity will be carried out. You should 
document needs as

[[Page 21208]]

they apply to the area where activities will be targeted, rather than 
the entire locality or state. If the data presented does not 
specifically represent your target area, you should discuss why the 
target areas were proposed.
    (4) The link between the need and your proposed activities:
    (i) How the proposed activities augment or improve upon on-going 
efforts by public and private agencies, organizations and institutions 
in the target area, and/or
    (ii) Why, in light of other on-going efforts, the additional 
funding you are requesting is necessary.
    In addition, with respect to Documentation of Need, the following 
apply to specific FHIP initiatives or components:
    EOI--Disability Component. Your project must focus on individuals 
who are disabled and must serve all persons protected by the Act.
    EOI--Hispanic Fair Housing Awareness Component. Your project must 
focus on serving Hispanics and must serve all persons protected by the 
Act. Therefore, provide specific demographics on Hispanic neighborhoods 
to be served and the relationship of the area served to the objectives 
of the project. The need in these neighborhoods must be clearly stated 
and supported with documentation such as beneficiary information. 
Grantees may not deny services to a client who is not Hispanic.
    EOI--Fair Housing and Minority Homeownership Component. Your 
project must document underrepresentation of homeownership by protected 
classes or a critical level of need for fair housing and homeownership 
activities in the area where activities will be carried out.

(5 Points PEI and EOI)

    b. Underserved Areas. For EOI and PEI: Up to five points will be 
awarded when the applicant's location and the project area are not 
served by a State or local FHAP agency. In instances where the 
applicant is located in an area not served by a FHAP agency but the 
project activities are conducted in various geographic areas, some of 
which are not served by a State or local FHAP agency, points will be 
awarded as follows:
    5 points will be awarded if more than 80% of the activities are 
conducted in areas not served by a State or local FHAP agency.
    4 points will be awarded if more than 60% but less than 80% of the 
activities are conducted in areas not served by a State or local FHAP 
agency.
    3 points will be awarded if more than 40% but less than 60% of the 
activities are conducted in areas not served by a State or local FHAP 
agency.
    2 points will be awarded if more than 20% but less than 40% of the 
activities are conducted in areas not served by a State or local FHAP 
agency.
    1 point will be awarded if less than 20% of the activities are 
conducted in areas not served by a State or local FHAP agency.
    You must indicate whether (a) you are located in an area that is 
served by a State or local FHAP agency (see Appendix D of this FHIP 
Program Section of the SuperNOFA for a list of FHAP agencies); (b) the 
activities you propose will be conducted in a project areas served by a 
State or local FHAP agency; and (c) explain why the project area is 
underserved and/or why the proposed organization or activity is needed.
    In addition: This subfactor is not applicable to FHOI.

Rating Factor 3: Soundness of Approach (40 Points)

    You must describe your project in detail, demonstrate how your 
project activities will support HUD goals, propose suggested 
performance measures/outcomes in support of these goals, and identify 
current baseline conditions and target levels of the performance 
measures that you plan to achieve. Also attach a Statement of Work 
(SOW) and budget. Your proposed activities must support HUD's policy 
priorities as referenced in the General Section.

(7 Points)

    a. Support of HUD Goals. Describe how your proposed project will 
further and support HUD's policy priorities. For FY 2003 FHIP 
applications, address the following:
    1. All EOI-General, EOI-Disability, EOI-Hispanic Fair Housing 
Awareness, and EOI-Fair Housing and Minority Homeownership Component:
    Applicants who relate HUD's policy priorities to:
    (i) Their project's purpose,
    (ii) Persons to be served,
    (iii) Geographic area to be served,
    (iv) Proposed activities and who will conduct these activities, 
e.g., you or a subcontractor(s) or consultant(s), and
    (v) Applicants who provide a methodology for carrying out these 
activities that includes items (i), (ii), (iii) and (iv) above will be 
assessed as follows:
    (a) Four points under this subfactor if you are a grassroots faith-
based and other community-based organizations, or propose to partner or 
sub-contract with grassroots faith-based and other community-based 
organizations,
    (b) One point under this subfactor if your application specifically 
addresses housing discrimination against new immigrants,
    (c) One point under this subfactor if your application specifically 
addresses housing discrimination in Colonias, and
    (d) One point under this subfactor if your application specifically 
addressing housing discrimination to persons who are homeless because 
of housing discrimination in violation of the Fair Housing Act.

PEI and FHOI

    Applicants should discuss their project purpose and proposed 
activities, persons to be served, geographic areas and methodology and 
their relation to HUD's policy priorities (see General Section). 
Include specific information on how you will address the need(s) 
identified under Rating Factor 2. The quality of the response you 
provide to one or more of the policy priorities will determine the 
score you receive. You may receive one point for each policy priority 
you address up to a total of seven points.
    In addition. If you apply under the:
    EOI. Describe how activities or final products can be used by other 
organizations and agencies. Also, describe the elements of the 
complaint referral process you will develop as a task under this grant. 
Explain how this referral process will result in an increased number of 
referrals to HUD. For the Hispanic Fair Housing Awareness component, 
grantees may not deny services to a client who is not Hispanic.
    FHOI. Over the course of the grant, the sponsored organization must 
conduct fair housing-related enforcement activities and leverage non-
FHIP resources. These are the performance measures that, if not met, 
may result in termination of the grant. Clearly describe how you will 
ensure that these enforcement and leveraging requirements are met.
    PEI/FHOI. Describe a procedure to ensure that referrals of all 
complaints are made as required by this NOFA. Your description should 
include safeguards to ensure that referred complaints are fully 
jurisdictional under the Act and supported by credible and legitimate 
evidence that the Act has been violated.
    You may conduct limited outreach activities (PEI and FHOI), as 
described in Section IV(C)(3). This must be reflected clearly in your 
SOW and Budget.

[[Page 21209]]

(18 Points)

    b. Proposed Statement of Work (SOW) and Information Requirements. 
The SOW and budget are attachments that will not count toward the 10-
page limit on the narrative response to this factor. However, points 
will be assigned based on the relevance of proposed activities to 
stated needs, attention to implementation steps, proposed activities 
consistent with organizational expertise and capacity and accuracy of 
the SOW and budget.
    (1) Statement of Work--Submit a proposed SOW that comprehensively 
outlines in chronological order the administrative and program 
activities and tasks to be performed during the grant period. Your 
outline should identify all activities and tasks to be performed and by 
whom (e.g., you, a subcontractor, or partner), and the products that 
will be provided to HUD and when. You should also include a schedule of 
your activities and products (with interim implementation steps), staff 
allocation over the term of the project; staff acquisition and 
training; and activities of partners and/or subcontractors (See 
Appendix C of this FHIP Program Section of the SuperNOFA for an 
optional SOW).
    (2) Information Requirements. For PEI and FHOI, your application 
must include a description of the enforcement proposals to be referred 
to HUD. Your description must explain the information (see 24 CFR 
121.2) you intend to collect and analyze, the type of complaints you 
anticipate referring to HUD for enforcement purposes, and describe the 
procedure you will implement for referring such complaints. If you 
propose a testing program, you must explain how you plan to structure 
the tests, train investigators, conduct investigations, etc. This 
description should make clear the safeguards to be used to ensure that 
complaints referred to HUD are fully jurisdictional under the Act and 
supported by credible and legitimate evidence that the Act has been 
violated. Describe the procedures you will put in place to ensure that 
referrals of all complaints are sent to HUD.
    In addition.
    For EOI:
    For the Hispanic Fair Housing Awareness Component include:
    (i) All bilingual key personnel and their capacity to communicate 
and disseminate information in projected Hispanic neighborhoods.
    (ii) A plan that reflects an understanding of the characteristics 
and needs of the neighborhoods selected and outline a plan of action 
pertaining to the scope and detail of how the work outlined will be 
accomplished. Grantees may not deny services to a client who is not 
Hispanic.

(15 Points)

    c. The Budget Form and the Budget Information--HUD will also assess 
the soundness of your approach by evaluating the quality, thoroughness, 
and reasonableness of the budget and financial controls of your 
organization, including information on your proposed program cost 
categories. As part of your response you must prepare a budget that is: 
(i) Reasonable in achieving the goals identified in your proposed SOW; 
(ii) relates tasks in the SOW to the proposed budget costs; (iii) cost-
effective; (iv) quantifiable based on the Need identified in Factor 2; 
and (v) documents and justifies all cost categories in accordance with 
the cost categories indicated in the HUD-424-CB (see General Section 
Grant Application Detailed Budget). In addition, if you already have an 
approved indirect cost rate, please provide the necessary contact 
information (i.e., name, address, and telephone number of the cognizant 
agency).
    (1) Cost Effectiveness of Program. Discuss and provide supportive 
facts concerning the extent to which your proposed program is cost 
effective in achieving the anticipated results of the proposed 
activities. Also, indicate how the proposed project is quantifiable 
based on the needs identified in Rating Factor 2.
    (2) Financial Management Capacity. Describe and provide 
documentation to support your organization's financial management 
system. In addition, provide documentation about your capabilities in 
handling financial resources and maintenance of adequate accounting and 
internal control procedures.
    In addition:
    FHOI provide a statement of transfer of programmatic and management 
responsibilities from the sponsoring to sponsored organization by the 
end of grant year 3. Also provide budgetary information on the 
viability of the sponsoring organization to maintain the sponsored 
organization for the duration of the grant.
    Your Grant Application Detailed Budget HUD-424-CB must show the 
total cost of the project and indicate other sources of funds that will 
be used for the project. While the costs are based only on estimates, 
the budget narrative work plan may include information obtained from 
various vendors, or you may rely on historical data. Applicants must 
round all budget items to the nearest dollar.
    A written budget narrative must accompany the proposed budget 
explaining each budget category listed. Failure to provide a written 
budget narrative will result in 2 points being deducted from your 
application. It must explain each cost category you list. Generally, 
estimated costs for high-cost items or subcontractors/consultants 
should be supported by bids from at least three (3) sources. Where 
there are travel costs for subcontractors/consultants, you must show 
that the combined travel costs (per diem rates) are consistent with 
Federal Travel Regulations (41 CFR 301.11) and travel costs for the 
applicant's subcontractors and/or consultants do not exceed the rates 
and fees charged by local subcontractors and consultants. The narrative 
(which counts toward the 10 page limit) and supporting documentation 
(which does not count toward the 10 page limit) must address the Grant 
Application Detailed Budget as referenced in the General Section.

Enforcement Education & Outreach

    Also, there is a 5% limit on the amount of education-related 
activities that can be funded in an enforcement grant. If you exceed 
this limit, points will be deducted from this sub-factor.

Rating Factor 4: Leveraging Resources (5 Points)

    This factor addresses your ability to secure additional resources 
to support your project. Points will be awarded on the basis of the 
percentage of non-FHIP resources you have identified and how firm the 
commitment is for those resources.
    Firm Commitment of Leveraging. HUD requires you to secure resources 
from sources other than what is requested under this FHIP Program 
Section of the SuperNOFA. Community resources may include funding or 
in-kind contributions, such as workspace or services or equipment, 
allocated to the purpose(s) of your proposal. Contributions from 
affiliates or employees of the applicant do not qualify as in-kind 
contributions. Resources may be provided by governmental entities 
(including other HUD programs if such costs are allowed by statute), 
public or private non-profit organizations, faith-based organizations, 
for-profit or civic private organizations, or other entities willing to 
work with you. In order to secure points you must establish leveraging 
of resources by providing letters of firm commitment from the 
organizations and/or individuals who will support your

[[Page 21210]]

project. Each letter of firm commitment must: (1) Identify the 
organization and/or individual committing resources to the project, (2) 
identify the sources and amounts of the leveraged resources (the total 
FHIP and non-FHIP amounts must match those in your proposed budget 
submitted under Factor 3), and (3) describe how these resources will be 
used under your SOW. The letter must be signed by the individual or 
organization official legally able to make commitments for the 
organization. If the resources are in-kind or donated goods, the 
commitment letter must indicate the fair market value of those 
resources and describe how this fair market value was determined. (Do 
not include indirect costs within your in-kind resources). In-kind and 
matching contributions and Program Income must be in accordance with 24 
CFR 84.23 and 84.24. If the applicant has no funding source other than 
the FHIP, it cannot propose in-kind or donated resources. No points 
will be awarded for general letters of support endorsing the project 
from organizations, including elected officials on the local, State, or 
national levels, and/or individuals in your community. For PEI and EOI, 
if your project will not be supported by non-FHIP resources, then you 
will not receive any points under this factor. Points will be assigned 
for PEI and EOI based on the following scale:
    1 point will be awarded if your project will be supported by non-
FHIP resources but less than 5% of the project's total costs are from 
non-FHIP resources.
    2 points will be awarded if at least 5% but less than 10% of the 
project's total costs are from non-FHIP resources.
    3 points will be awarded if at least 10% but less than 20% of the 
project's total costs are from non-FHIP resources.
    4 points will be awarded if at least 20% but less than 30% of the 
project's total costs are from non-FHIP resources.
    5 points will be awarded if at least 30% of the project's total 
costs are from non-FHIP resources.
    For FHOI, 2 points will be awarded if at least 5%, but less than 
10% of the project's total cost are from non-FHIP resources.
    3 points will be awarded if at least 10% but less than 20% of the 
project's total costs are from non-FHIP resources.
    4 points will be awarded if at least 20% but less than 30% of the 
project's total costs are from non-FHIP resources.
    5 points will be awarded if at least 30% of the project's total 
costs are from non-FHIP resources.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    In evaluating this factor, HUD will assess the extent to which you 
demonstrate how you will measure your success or results to be achieved 
and that represent the work of your organization as set out in your 
budget. Applicants must describe their specific methods and measures to 
assess progress, evaluate program effectiveness, and identify program 
changes necessary to improve performance, to ensure commitments made 
will be kept and results to be achieved can be accounted for and 
independently assessed, to ensure performance measures are met. 
Applicants who have identified inputs and outcome measurement and 
include means for assessing these measures, tracking and monitoring 
performance goals and achievements against these commitments made in 
the application, will receive higher points than those that do not. To 
meet this requirement, you should:
    (i) First, identify the outcome. You should refer to the Logic 
Model provided in the forms appended to the General Section.
    (ii) Second, identify the indicator. An indicator should be 
explained using numerical measures that can determine the extent to 
which the outcome was or is expected to be achieved and/or utilized to 
assess your performance. You should also track or monitor how your 
projected outcomes will be successfully achieved. Specify what form of 
measurement tool(s) will be utilized to quantify the overall results of 
your project's performance.
    In formulating how you attain your end results, estimate the types 
and amounts of clients you expect to be served with the amount 
allocated as it relates to your proposed budget. Estimate approximately 
how many of those served will benefit from your project's activities 
and tasks and estimate the timeframe for this to be accomplished.
    This can be done using real numbers and reasonable estimates. If 
you are proposing a new program, and numbers have never been assessed, 
indicate that actual numbers will be reported as you submit your 
required quarterly reports, should you receive funding.
    Accomplishments can be achieved using specific measurement tools to 
assess the impact of your solutions. Examples include: (1) Intake 
Assessment Instrument; (2) Pre/Post Tests; (3) Customer/Client 
Satisfaction Survey; (4) Follow-up Survey; (5) Observational Survey; 
(6) Functioning scale; or (7) Self-sufficiency scale. You should 
describe what kind of fair housing activities you propose to accomplish 
and how successful you project them to be given the need, as identified 
in Factor 2, for these activities. Finally, you should consider this 
need, what you plan to accomplish, your proposed methodology and work 
plan to assess the benefits that will be derived from your project.
    You should demonstrate the extent to which your application 
proposes solutions that result in creating linkages and using specific 
measurement tools to assess the impact of your project and a process to 
establish a clear relationship between all parties impacted. For the 
EOI-Disability Component, you should demonstrate how the activities 
would assist the Department in implementing the Olmstead Supreme Court 
decision. As your project ends, you must report meaningful data derived 
from client feedback on how they benefited from your project's 
activities.
    E. Factors for Award Used To Evaluate and Rate Applications for the 
National Education and Outreach Initiative Program. The factors for 
rating and ranking applicants and the maximum points for each factor 
are provided below. The maximum number of points awarded any 
application is 100. Bonus points are not available for National Program 
education and outreach applications.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (25 Points)

    This factor addresses the extent to which the applicant has the 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner, and the applicant's ability to 
develop and implement large information campaign projects as 
appropriate, on a national scale.

(5) Points Current FHIP Grantees

(10) Points for New Applicants

    a. General Description of Applicant Organization and Relevant 
Experience.
    In rating this factor, HUD will consider the extent to which the 
applicant demonstrates:
    (1) The qualifications of the applicant organization; the type of 
organization (e.g., public, private, non-profit, for profit); and the 
organization's general areas of activity or line of business.
    (2) If the applicant has managed large, complex, interdisciplinary 
projects, the applicant must include information on them in its 
response.
    (3) Awards and major accomplishments of the applicant

[[Page 21211]]

organization must be described. HUD will also consider any documented 
evidence, such as performance reviews, newspaper articles, or 
monitoring findings that may reflect positively or negatively upon the 
ability of the applicant and its proposed staff to perform the work.
    (4) The applicant's capability in handling financial resources with 
adequate financial control procedures and accounting procedures. In 
addition, HUD will consider findings identified in applicants' most 
recent audits; accuracy of mathematical calculations, and other 
available information on financial management capability.
    (5) The extent to which you have the organizational resources 
necessary to implement your proposed activities on time, and within 
budget and your past experience in working with State or local 
officials, housing industry representatives and organizations, and 
disability rights organizations and others in consensus building, 
achieving changes to existing laws and regulations which cover housing 
and accessibility codes and related items, operating in environments 
that are not receptive to complying with accessibility requirements, 
and interacting with officials, representatives, or advocates that have 
divergent or opposing viewpoints. Include descriptions of your 
organization and, if applicable, your affiliate chapters, or that of 
your partner's affiliates or other entities that will be used to ensure 
the National coverage required by this project.
    (6) Your experience and knowledge of the Fair Housing Act's 
accessibility requirements, the Fair Housing Accessibility Guidelines, 
and the ANSI A117.1 technical standards and skill in disseminating 
information and training to State and local government agencies, 
housing agencies and/or the public on these requirements and 
responsibilities.

(10) Points for Current FHIP Grantees

(15) Points for New Applicants

    b. Specific Description of Staff for Proposed Activities. The 
applicant must demonstrate that it has or will have sufficient 
personnel or will be able to quickly access qualified experts or 
professionals to deliver the proposed activities timely and 
effectively, including the readiness and ability of the applicant to 
immediately begin the proposed work program. Also the applicant must 
demonstrate relevant knowledge and experience of the overall proposed 
project director and staff, including the day-to-day program manager, 
consultants and contractors in planning and managing programs for which 
funding is being requested. To demonstrate that the applicant has 
sufficient qualified personnel, the applicant must submit the proposed 
number of staff hours for the sub-contractor, employees and experts to 
be allocated in the SOW and availability of proposed staff to operate 
the project, the titles and relevant professional background and 
experience of each employee and expert proposed to be assigned to the 
project, and the roles to be performed by each employee and expert. 
Highly competitive applications must demonstrate that proposed staff 
has at least 3 years of recent and relevant experience in performing 
eligible program activities or projects similar in scope or nature and 
directly relevant to the work activities proposed. Finally, applicants 
should describe their or their sub-contractor's expertise in languages 
other than English and in reaching the informational needs of 
individuals with limited English proficiency.

(10) Points for Current FHIP Grantees

(0) Points for New Applicants

    c. Consideration of Past Performance. Your past experience in terms 
of your ability to attain measurable progress in the implementation of 
your most recent and similar activities where your performance has been 
assessed. HUD will take into account your past performance in managing 
funds, including the ability to account for funds appropriately; timely 
use of funds received either from HUD or other Federal, state or local 
programs; meeting performance targets for completion of activities and 
number of persons to be served or targeted for assistance. HUD will use 
information related to these measures based on information on hand or 
available from public sources such as newspapers, Inspector General or 
Government Accounting Office Reports or Findings, hotline complaints 
that have been proven to have merit, or other such sources of 
information. In evaluating past performance, the following will apply 
to Fiscal Years 1999, 2000, and 2001 FHIP grantees:
    10 points will be deducted if you obtained any ``fair performance'' 
assessment;
    5 points will be deducted if you obtained any ``good performance'' 
assessment; and
    0 points will be deducted if you obtained any ``excellent 
performance'' assessment.

Rating Factor 2: Need/Approach to the Problem (20 Points)

    This factor addresses the extent to which the applicant documents 
and defines the national need that its proposed activities and methods 
are intended to address, and how its proposal offers the most effective 
approach for dealing with that national need. The quality of the 
response you provide to one or more of the criteria listed below will 
determine the score you receive. You may receive up to five points for 
each criterion you address up to a total of twenty points. Please 
respond to the following criteria:
    a. Identify areas that show where significant amounts of new 
multifamily housing construction will take place and identify the need 
to assist State and local governments that need to add or modify 
language to make local building codes so that they are consistent with 
the accessibility requirements of the Fair Housing Act and the Fair 
Housing Accessibility Guidelines, Regulations and the ANSI A117.1 
technical standards. In order to document the need you must use 
reports, statistics, and other data sources that are sound and 
reliable, including but not limited to, HUD or other Federal, State or 
local government reports and analyses, relevant economic and/or 
demographic data, foundation reports and studies from educational 
institutions/foundations, news articles, and other information that 
relate to the identified need.
    b. Identify State and local jurisdictions with codes that 
officials: (i) Whose codes are consistent with the requirements of the 
Fair Housing Act and those that need review, (ii) whose codes are not 
consistent with the requirements of the Fair Housing Act and will be 
targeted for assistance/services offered by this project who are in 
need of education and/or assistance on language to be included in 
building codes to ensure that such codes meet the requirements of the 
Fair Housing Act, Fair Housing Regulations, and the Fair Housing 
Accessibility Guidelines, and the ANSI A117.1 technical standards, such 
that codes can be adopted, and (iii) who have no codes and are in need 
of the assistance/services offered by this project so that they may 
adopt codes that education and/or assistance on language to be included 
in building codes to ensure that such codes meet the requirements of 
the Fair Housing Act, Fair Housing Regulations, and the Fair Housing 
Regulations, Housing Accessibility Guidelines, and the ANSI A117.1 
technical standards such that codes can be adopted.
    c. Identify how you will use your partnering organization(s)s and 
affiliates to address the needs and demands identified and how they 
will be

[[Page 21212]]

deployed in support of your work activities;
    d. Identify specific format, methodology, languages, and materials 
that are needed to conduct education and outreach to assist State and 
local jurisdictions in adopting building codes that include the 
accessibility standards of the Fair Housing Act, Fair Housing 
Regulations, the Fair Housing Accessibility Guidelines, and the ANSI 
A117.1 in their building codes. If the applicant has experienced staff 
or if the applicant proposes to use a contractor sub-grantee, the 
extent to which the applicant provides a rationale for how it will 
utilize its staff or a contractor or subgrantee to incorporate its 
proposed activities, methods, and media techniques will most 
effectively deal with the national need you describe above. To the 
extent possible, applicants should demonstrate effectiveness in terms 
of scope and cost.

Rating Factor 3: Soundness of Approach (35 Points)

    This factor addresses the quality and cost-effectiveness of the 
applicant's proposed work plan. The SOW must address the strategy, 
quality and time frames needed to carry out the project and all 
activities as proposed.

(25 Points)

    a. Statement of Work.
    Submit a proposed SOW that comprehensively outlines in 
chronological order the administrative and program activities and tasks 
to be performed during the grant period. Your outline should also 
include a schedule of proposed activities and products (with interim 
implementation steps), staff allocation over the term of the project, 
staff acquisitions and training, and activities of partners and 
subcontractors.
    For this Component--(1) Outline the extent to which your work 
program provides for national coverage, including States and local 
governments to be assisted through workshops, one-on-one technical 
assistance and distance learning opportunities, and your strategy for 
moving them from education to implementation of the accessibility 
standards in their building codes.
    (2) Describe the extent to which you will provide outreach to 
states and local governments and technical staff to make them aware of 
the availability of your assistance and use a variety of techniques and 
media, including your proposed method of distribution, formats and 
languages to be used in providing information to diverse audiences.
    (3) Clearly describe the specific activities and tasks to be 
performed, the sequence in which the tasks are to be performed, noting 
areas of work which must be performed simultaneously, estimated 
completion dates, and the work and program deliverables to be completed 
within the grant period, including specific numbers of quantifiable end 
products and program improvements the applicant aims to deliver by the 
end of the award agreement period as a result of the work performed; 
and
    (4) Describe the immediate benefits of the project and how the 
benefits will be measured. Applicants must describe the methods they 
will use to determine the effectiveness of the impact of their fair 
housing educational curricula nationally.

(10 Points)

    b. Budget Form and Budget Information. A written budget narrative 
must accompany the proposed budget for any listed item. Failure to 
submit the narrative will result in the 5 points being deducted under 
this sub-factor. The narrative (counted toward the 10 page limit) and 
supporting documentation (not counted toward the 10 page limit) must 
address the following for maximum points:
    (1) Cost estimates of salary levels, staff assignments, number of 
staff hours, and all other budget items are reasonable, allowable, and 
appropriate for the proposed activities;
    (2) How cost effective the proposed program is in achieving its 
anticipated results, as well as in achieving significant impact; and
    (3) Have you explained and attached back-up documentation for each 
cost category. Generally, estimated costs for high-cost items or 
subcontractors/consultants should be supported by bids from at least 
three (3) sources. Where there are travel costs for subcontractors/
consultants, you must show that the local combined travel costs (per 
diem rates must be consistent with Federal Travel Regulations but not 
in excess) and rates and fees do not exceed the rates and fees charged 
by local subcontractors and consultants. A breakdown of each cost 
category is listed in the General Section.
    In addition:
    (4) How proposed activities will yield long-term results and 
innovative strategies that can be readily disseminated to other 
organizations and State and local governments, and
    (5) How the proposed project will make available activities, 
training and meeting sites, and information services and materials in 
places and formats that are accessible to all persons including persons 
with disabilities.

Rating Factor 4: Leveraging Resources (5 Points)

    This factor addresses the ability of the applicant to secure other 
resources, which can be combined with HUD's program resources to 
achieve program purposes. In evaluating this factor HUD will consider:
    The amount of non-FHIP resources you have identified and how firm 
the commitment is for those resources. HUD encourages you to secure 
resources from sources other than what is requested from this program. 
Resources may include funding or in-kind contributions, such as 
workspace, donated media announcements, or equipment allocated to the 
purposes of your proposal. Contributions from affiliates or employees 
of the applicant do not qualify as in-kind contributions. Resources may 
be provided by governmental entities (including other HUD programs 
where allowed by statute) public or private non-profit organizations, 
for profit private organizations, or other entities willing to work 
with you in accordance with the proposed FHIP activities. If your 
project will not be supported by non-FHIP resources, you cannot claim 
in kind and donation of resources and you will not receive any points 
under this factor. Points will be assigned based on the following 
scale:
    1 point will be awarded if your project will be supported by non-
FHIP resources but less than 5% of the project's total costs are from 
non-FHIP resources.
    2 points will be awarded if at least 5% and less than 10% of the 
project's total costs are from non-FHIP resources.
    3 points will be awarded if at least 10% and less than 20% of the 
project's total costs are from non-FHIP resources.
    4 points will be awarded if at least 20% and less than 30% of the 
project's total costs are from non-FHIP resources.
    5 points will be awarded if more than 30% of the project's total 
costs are from non-FHIP resources. You must establish leveraging of 
resources by providing letters of firm commitment from the 
organizations and/or individuals committing resources to the project. 
Each letter of firm commitment must: (i) Identify the organizations 
and/or individuals committing resources to the project; (ii) identify 
the sources and amounts of the leveraged resources (the total FHIP and 
non-FHIP amounts must match those in your proposed budget submitted 
under Factor 3), and (iii) describe how these resources will be used as 
part of your SOW. The letter

[[Page 21213]]

must be signed by the individual or organization official legally able 
to make commitments for the organization. If the resources are in-kind 
or donated goods, the commitment letter must indicate the fair market 
value of these resources and describe how the fair market value was 
determined. No points will be awarded for general letters of support 
endorsing the project from organizations and/or individuals (including 
elected officials) in your project area(s).

Rating Factor 5: Achieving Results and Program Evaluations (15 Points)

    This factor addresses the extent to which you discuss the 
accomplishments or results to be achieved and that represent the work 
of your organization as manifested in your budget. Applicants must 
describe their specific methods and measures to assess progress, 
evaluate program effectiveness, and identify program changes necessary 
to improve performance to ensure that commitments made and results to 
be achieved can be accounted for and independently assessed to ensure 
performance measurements are met. Applicants who have identified inputs 
and outcome measurements and include means for assessing these 
measures, tracking and monitoring performance goals and achievements 
against commitments made in the application will receive higher points 
than those that do not. You must collect data showing the outcomes of 
your grant. These outcomes may vary from grantee to grantee, but should 
include indicators, where applicable, such as number of persons 
trained, number of persons counseled, number of complaints filed, 
number of housing units obtained or made accessible, and relief 
obtained. You may include other outcomes if they apply to your grant. 
Outcome data must be collected and a data collection tool must be 
identified for your program and may include: functioning scale, or 
self-sufficiency scale. In evaluating this factor, HUD will consider 
the extent to which you demonstrate:
    a. You have established a clear, concise relationship between the 
outcome of your project and its impact nationally.
    b. The extent to which your application addresses outreach 
activities to promote awareness of project activities. At a minimum, 
your application should discuss procedures you will use to promote 
awareness of the services provided by your proposal.
    You should demonstrate the extent to which your application 
develops solutions that result in creating linkages and using specific 
measurement tools to assess the impact of your solutions. Such linkages 
may include: increasing knowledge of fair housing rights and 
responsibilities, increasing awareness of the Act; increasing 
homeownership; empowering the homeless, and identifying barriers to 
housing choice.
    c. The extent to which you have developed interrelationships to 
help build nationwide efforts that coordinates the resources of 
multiple applicants and programs. HUD encourages multiple entities to 
join together and pool all available resources in a common, coordinated 
effort to obtain national geographic coverage. Describe in your 
proposal how your project activities will be coordinated with other 
organizations and linked with: (i) Other on-going HUD-funded program 
activities; (ii) Other on-going national, Federal, State, local or 
privately funded activities. Also provide a measurement tool to assess 
coordinated progress, evaluate linked program effectiveness, and 
identify coordinated program changes necessary to improve performance 
to ensure that commitments made and results to be achieved can be 
accounted for and independently assessed to ensure performance 
measurements are met.
    d. The extent to which your application addresses outreach 
activities to promote awareness of project activities and to achieve 
stated goals. This includes: (i) a discussion of how your methods or 
approaches will encourage State and local jurisdictions to adopt 
building codes that incorporate one of HUD's recognized safe harbors 
for compliance. Also include an assessment tool to measure the 
effectiveness of these methods and approaches; (ii) identification of 
State and local jurisdictions that need updates of their codes to 
address inconsistencies identified in HUD's final report on the Review 
of Model Building Codes and how you will provide technical assistance. 
Also include a methodology and approach of how you will reach these 
jurisdictions, address these inconsistencies, and measure your 
performance; and (iii) an explanation of how you will assess your 
partner's performance. Finally, you should demonstrate the extent to 
which your application develops solutions that result in collaborative 
partnerships among builders, State and local government building code 
entities, and disability advocacy or fair housing groups to encourage 
the adoption of Model building codes at the State or local level that 
are consistent with the accessibility requirements of the Act, its 
regulations, and the Fair Housing Accessibility Guidelines.
    (F) Applicant Notification and Award Procedures. (1) Notification. 
No information about the review and award process will be available to 
you during the period of HUD evaluation, which begins on the closing 
date for applications under this NOFA and lasts approximately 90 days 
thereafter, except to advise you, in writing or by telephone, if HUD 
determines that your application is ineligible or has technical 
deficiencies which may be corrected as described in Section VI of the 
General Section of the SuperNOFA and Section VII of this NOFA. HUD will 
communicate only with persons specifically identified in the 
application. HUD will not provide information about the application to 
third parties such as subcontractors.
    (2) Negotiations. If you are selected, HUD will require you to 
participate in negotiations to determine the specific terms of your 
cooperative or grant agreement. HUD will follow the negotiation 
procedures described at Section VI(D) of the General Section of the 
SuperNOFA. The selection is conditional and does not become final until 
the negotiations between the applicant and the Department are 
successfully concluded and the grant or cooperative agreement is signed 
and executed. HUD will negotiate only with the person identified in the 
application as the Director of the organization or if specifically 
identified in the application, the Project Director. HUD will not 
negotiate with any third party (i.e., a subcontractor, etc.).
    (3) Funding Instrument. HUD expects to award a cost reimbursable or 
fixed-price cooperative or grant agreement to each applicant selected 
for award. Upon completion of negotiations, HUD reserves the right to 
use the funding instrument it determines is most appropriate.
    (4) Adjustments to Funding. As provided in Section VI(F) of the 
General Section of the SuperNOFA, HUD may approve an application for an 
amount lower than the amount requested, fund only portions of your 
application, withhold funds after approval, reallocate funds among 
activities and/or require that special conditions be added to your 
grant agreement, in accordance with 24 CFR 84.14, the requirements of 
this SuperNOFA, or where:
    (a) HUD determines the amount requested for one or more eligible 
activities is unreasonable or unnecessary;
    (b) An ineligible activity is proposed in an otherwise eligible 
project;

[[Page 21214]]

    (c) Insufficient amounts remain to fund the full amount requested 
in the application, and HUD determines that partial funding is a viable 
option;
    (d) The past record of key personnel warrants special conditions; 
or,
    (e) Training funds are not reserved for FHIP training.
    (5) Performance Sanctions. A grantee or subcontractor failing to 
comply with the requirements set forth in its grant agreement will be 
liable for such sanctions as may be authorized by law, including 
repayment of improperly used funds, termination of further 
participation in the FHIP, and denial of further participation in 
programs of HUD or any Federal agency.
    (6) Applicant Debriefing. After awards are announced, applicants 
may receive a debriefing on their application as described in Section 
XI(A)(4) of the General Section of this SuperNOFA. Materials provided 
during the debriefing will be the applicant's final scores for each 
rating factor, final evaluator comments for each rating factor, and the 
final assessment indicating the basis upon which assistance was 
provided or denied. Applicants requesting a debriefing must send a 
written request to Annette Corley, Grant Officer, U.S. Department of 
Housing and Urban Development, FHIP/FHAP Support Division, 451 7th 
Street SW., Room 5224, Washington, DC 20410. HUD will not release the 
names of applicants or their scores to third parties. Selections do not 
become final until final negotiations with HUD are successfully 
concluded.

VI. Application Submission Requirements

    In addition to the forms, certifications and assurances required of 
applicants to all HUD programs, which can be found in the General 
Section of the SuperNOFA, you must submit with each FHIP application, 
the forms, certifications and assurances described below and found at 
Appendix B.
    In general.
    When applying under any Initiative or Component you should submit 
the following:
    (A) Transmittal Letter. Your transmittal letter must identify: (1) 
The dollar amount requested, and (2) the specific FHIP Initiative, or 
in the case of EOI, whether for the Regional/Local Community Based 
Program or the National Program and the specific Component (General, 
Disability, Hispanic Servicing, or Model Codes), for which you are 
applying.
    (B) Narrative Statement. Respond completely to the instructions 
under each of the five Factors for Award and include the related items, 
such as resumes, SOW, and budget. Failure to provide the required 
information in the appropriate Factor will result in a lower score for 
that Factor--for example, information in the Project Abstract, although 
useful for developing a project synopsis, will not be considered when 
evaluating applications. The narrative responses must not exceed 10 
pages per factor (required attachments are not counted); text must be 
double-spaced and pages numbered consecutively (starting with Factor 1 
through the end of Factor 5). Please use 12 point typesize for your 
narrative responses.
    (C) Code of Conduct. Awarded applicants must develop, maintain, and 
submit a written code of conduct as noted in the General Section.
    (D) 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 or failure to submit 
the requested number of copies. 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 5 calendar days of the date of receipt of the HUD notification. 
(If the due date falls on a Federal holiday, your correction must be 
received by HUD on the next day that is not a 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. (Sections 202 and 811 Programs provide for appeal of rejection 
of an application on technical deficiency. Please see the Program 
Section for these programs for additional information and 
instructions.)
    Listed below are requirements by Factor for the Regional/Local 
Community Based Programs:
    Award Factor 1: Capacity of Applicant and Relevant Organizational 
Experience--Narrative/Resumes or Position Descriptions.
    In addition:
    For PEI and FHOI Applicants:
    (1) Testing Experience. You must document your prior testing 
experience (see Factor 1: Capacity of the Applicant and Relevant 
Organizational Experience),
    (2) Letter of Determination from IRS of your 501(c)(3) tax-exempt 
status.
    For all Applicants:
    Statement of Eligibility.
    Award Factor 2: Need/Distress/Extent of the Problem--Narrative. 
Reference or submit data and studies that indicate the presence of 
housing discrimination, segregation and/or other indices of 
discrimination in the project area based upon race, color, religion, 
sex, national origin, familial status or disability, and explain why 
the project area is underserved and why the proposed organization is 
needed. Do not attach copies of reports, computer printouts, etc. If 
you have tables or exhibits include them. Make sure they are referenced 
in the text. Attachments not mentioned in the text will not be 
reviewed.
    Award Factor 3: Soundness of Approach--Narrative, Statement of 
Work, HUD Budget Form, Budget Narrative.
    Award Factor 4: Leveraging Resources--Narrative. Letter(s) of Firm 
Commitment.
    Award Factor 5: Achieving Results and Program Evaluation--
Narrative. Logic Model.
    Listed below are the requirements by Factor for the EOI--National 
Program Components.
    Award Factor 1: Capacity of Applicant and Relevant Organizational 
Experience--Narrative. Resumes or Position Description, Statement of 
Eligibility.
    Award Factor 2: Need/Distress/Extent of the Problem--Narrative. 
Reference and submit data designed to educate the public about their 
fair housing rights. Do not attach copies of reports, computer 
printouts, etc. If you have tables or exhibits include them. Make sure 
they are referenced in the text. Attachments not mentioned in the text 
will not be reviewed.
    Award Factor 3: Soundness of Approach--Narrative, SOW, HUD Budget 
Form, Budget Narrative.
    Award Factor 4: Leveraging Resources--Narrative. Letter(s) of Firm 
Commitment.

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    Award Factor 5: Achieving Results and Program Evaluation--
Narrative. Logic Model.

VII. Corrections to Deficient Applications

    Section VIII of the General Section of the SuperNOFA provides the 
procedures for corrections to deficient applications.

VIII. Environmental Requirements

    In accordance with 24 CFR 50.19(b)(3), (4), (9), (12), and (13) of 
HUD regulations, activities assisted under this program are 
categorically excluded from the requirements of the National 
Environmental Policy Act and are not subject to environmental review 
under related laws and authorities.

IX. Authority

    Section 561 of the Housing and Community Development Act of 1987, 
as amended, (42 U.S.C. 3616) established the Fair Housing Initiatives 
Program (FHIP)) and the implementing regulations are found at 24 CFR 
part 125.

Appendix A

Frequently Asked Questions

    Q. If data, tables, exhibits, reports, and studies are submitted 
with the application, will they be counted toward the 10 page limit 
requirement?
    A. The attachments do not count toward the ten-page limit. 
However, you are encouraged to summarize the points that support 
your Factor responses. Do not attach data tables, exhibits, and 
studies and expect the evaluator to read them and discern the points 
that should be considered. If you summarize information from 
studies, reports, etc, simply include a bibliography or other 
reference at the end of Factor.
    Q. In previous years, FHIP applicants were not required to 
submit the Certification of Consistency with the Consolidated Plan. 
Is the Certification required this year?
    A. Yes.
    Q. Where can I find a copy of the Application Kit?
    A. There is no Application Kit for the FY2003 FHIP SuperNOFA. 
The NOFA clearly describes the requirements for completing a 
successful application and all forms and certifications needed to 
complete the application are included in the General and FHIP 
Sections of the SuperNOFA.
    Q. What is the maximum number of narrative pages that can be 
submitted for each Rating Factor?
    A. The maximum number is 10 pages per Rating Factor. This does 
not include any attachments that may be required under each factor 
(for example, the proposed statement of work and budget required 
under Factor 3, Resumes as required by Factor 1, or any reports or 
documents you attach to support your Factor information). The 
narrative pages must be double-spaced and you are required to use 12 
type size (font). However, all pages in the application must be 
consecutively numbered starting with number one (1) through the end 
of your application. For example, Factor 1 has 10 pages of narrative 
and 10 pages of attachments. Each attachment page must be numbered. 
When you get to Factor 2, the first page of the Factor will be 
numbered 21, and so on. If you do not number each page in your 
entire application, points will be deducted from your application if 
this criterion is not met.
    Q. The FHIP SuperNOFA refers to QFHOs and FHOs. What is the 
difference between them?
    A. These terms are defined in the FHIP regulations. Both 
organizations must be private, tax-exempt, charitable organizations 
that have engaged in enforcement-related activities. The amount of 
enforcement-related experience is an eligibility requirement for 
PEI, least one year for and FHOI, at least two years. (See 24 CFR 
125.103 for QFHO and 24 CFR 125.401(b)(2) for FHO.)
    All applicants are required to complete the Statement of 
Eligibility. For PEI and FHOI, applicants must self-identify as a 
QFHO or an FHO AND provide information, including dates of 
enforcement-related activities. The information you provide should 
enable HUD to determine if your organization meets at least the one 
or two year enforcement-related experience requirement. Your 
application will be declared ineligible if you fail to submit the 
Statement of Eligibility with your application.
    Q. May an applicant subcontract out a percentage of its 
activities to subcontractors, partner, or consultants, if it is 
selected for a FHIP award?
    A. Yes. However, when the expenditures to a particular 
subcontractor, partner, or consultant exceed 10% of the grant 
amount, an itemized budget is required.
    Q. Is an organization ``engaged in testing for fair housing 
violations'' if it hires a qualified organization to carry out its 
testing program?
    A. Yes, so long as the applicant maintains decision making 
authority, analyzes the test results, and maintains oversight or 
selection of testing operations.
    Q. Does the SuperNOFA identify what makes an application 
ineligible?
    A. Yes. For FHIP, see the eligibility requirements for each 
Initiative, and the Threshold Criteria in Section V(A). For 
threshold requirement information under the SuperNOFA, see Section V 
of the General Section of the SuperNOFA.
    Q. Can an applicant propose to do an Analysis of Impediments 
(AI)?
    A. No. The applicant can identify activities to be carved out of 
the AI but not to do planning to develop AI.
    Q. Are there major differences between this year's SuperNOFA and 
last year's?
    A. Yes, those differences are explained in Section III of the 
FHIP NOFA and Section II of the General Section of the SuperNOFA. 
Please note the major differences in eligibility requirements. Some 
requirements that were technical deficiencies in previous years are 
ineligible under this NOFA.
    Q. At what point may a FHOI ``sponsored organization'' apply 
under any FHIP Initiative?
    A. A sponsored organization is eligible after three (3) years to 
apply for funds under other initiatives or components.
    Q. What are maximum awards?
    A. Maximum award is the maximum amount that will be awarded 
under the Initiative for which you are applying. If you request an 
amount over this maximum amount, your application will be declared 
ineligible.
    Q. Where do you send completed applications?
    A. All completed applications must be received by the FHIP/FHAP 
Support Division Office in Washington, DC. These applications should 
be mailed or sent by an express service to the address stated in the 
SuperNOFA under the Section Addresses and Application Submission 
Procedures. Please note that applications incorrectly addressed may 
not be forwarded to this Division at all or it may be forwarded 
late. If that happens, your application will be deemed ineligible.
    Q. What is the best method of knowing that the appropriate 
person has received my application? Should I follow up with a call?
    A. Include with your completed application a complete copy of 
the Acknowledgment of Application Receipt. Be sure to include your 
correct mailing address and the person to whom the Acknowledgment 
should be sent. The Acknowledgement will be returned to the address 
indicated. HUD will not acknowledge the receipt of applications over 
the telephone (see General Section for return receipt requirements).
    Q. What is the website address?
    A. Http//www.hud.gov/grants
    Q. What is the due date?
    A. The due date is outlined in this NOFA under Section I, 
Application Due Date.
    Q. If I have a technical question, can I call HUD?
    A. Yes, technical questions should be directed to Lauretta A. 
Dixon, Myron P. Newry, or Denise L. Brooks of the FHIP/FHAP Support 
Division at (202) 708-0800 (this is not a toll-free number). Persons 
with hearing or speech impairments may call 1-800-290-1617 (this is 
a toll-free number). Technical assistance does not include assisting 
you in determining your eligibility to apply for funds. Applicants 
must make their own determination, based upon the requirements 
identified in the FHIP component under the section labeled Eligible 
Applicants. Technical Assistance cannot be provided to help you 
write any part of your application or develop responses to the 
application requirements. Rather, technical assistance, outside of 
the training broadcasts, will only clarify general application and 
program requirements published in the NOFA.
    Q. What is meant by geographic diversity?
    A. See comments above in Section V.
    Q. As an FHOI applicant, are education and outreach expenses 
required to come out of my 15% administrative costs?
    A. No. The education and outreach expenses can be accounted for 
in the budget of the organization being established or enhanced.
BILLING CODE 4210-32-P

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21243]]



Funding Availability for the Housing Counseling Program

Program Overview

    Program Purpose. This program supports the delivery of a wide 
variety of housing counseling services to homebuyers, homeowners, low- 
to moderate-income renters, and the homeless. The primary objectives of 
the program are to expand homeownership opportunities and improve 
access to affordable housing. Counselors provide guidance and advice to 
help families and individuals improve their housing conditions and meet 
the responsibilities of tenancy and homeownership.
    Agencies funded through this program may also provide Home Equity 
Conversion Mortgage (HECM) counseling to elderly homeowners who are 
looking to convert equity in their homes into income that can be used 
to pay for home improvements, medical costs, living expenses, or other 
expenses.
    Available Funds. $35.56 million in FY03 Funds.
    Application Deadline. June 25, 2003.
    Match. No specific ratio is required. However, in order to receive 
points under Rating Factor 4, applicants are required to demonstrate 
the commitment of other private and public sources of funding to 
supplement HUD funding for the applicant's counseling program. HUD does 
not intend for its housing counseling grants to cover all costs 
incurred by an applicant.

I. Application Submission, Further Information and Technical Assistance

    Application Kits. There is no application kit. Specific application 
submission requirements are outlined in Section VI.
    Application Due Date. Completed applications must be submitted on 
or before June 25, 2003.
    Mailing. See the General Section of the SuperNOFA for mailing 
instructions and procedures.
    Application Submission Procedures. Local Housing Counseling 
Agencies (LHCAs) applying under Category 1 and State Housing Finance 
Agencies (SHFAs) applying under Category 3 must submit an original and 
two copies of a complete application to the contact person listed for 
the Homeownership Center (HOC) whose jurisdiction includes the 
geographic area in which the applicant is proposing to provide services 
(see Appendix B.) The envelope should be clearly marked ``FY 2003 
Housing Counseling Grant Application (indicate Category 1 or 3.)''
    National and regional housing counseling intermediaries applying 
under Category 2 must submit an original and two copies of a complete 
application to ``Director, Program Support Division, Room 9266, Office 
of Single Family Housing, HUD Headquarters, 451 Seventh Street, SW., 
Washington, DC 20410.'' The envelope should be clearly marked, ``FY 
2003 Housing Counseling Intermediary Application.''
    Colonias and Predatory Lending Grant Applications. All applicants 
applying under Categories 4 and 5 must submit an original and two 
copies of a complete application to the Santa Ana HOC (see Appendix B.) 
The Santa Ana HOC will be evaluating all applications submitted under 
Categories 4 and 5. Applications should be sent to the attention of the 
Program Support Division Director. For Category 4 applicants, the 
envelope should be clearly marked ``FY 2003 Housing Counseling--
Colonias Application.'' For Category 5, the envelope should be marked 
``FY 2003 Housing Counseling--Predatory Lending Application (indicate 
your organization type, e.g.: National Intermediary / Regional 
Intermediary, SHFA, LHCA.)''
    Further Information. Local housing counseling agencies (LHCAs) and 
state housing finance agencies (SHFAs) should call the HOC serving 
their area (See Appendix B for the contact information for the HOCs). 
National and regional intermediaries should contact HUD Headquarters, 
Program Support Division at (202) 708-0317 (this is not a toll-free 
number). Persons with hearing or speech impairments may access any of 
these numbers via TTY by calling the toll-free federal Information 
Relay Service at 1-800-877-8339.
    Satellite Broadcast. HUD will hold an informational broadcast via 
satellite for potential applicants to learn more about the program and 
the application. For more information about the date and time of the 
broadcast, consult the HUD web site at http://www.hud.gov/grants.

II. Amount Allocated

    Amount Allocated.--Of the $39,740,000 appropriated for housing 
counseling in FY 2003, $37.561 million is made available for eligible 
applicants under this SuperNOFA. Specifically, $35.561 million is 
available through this NOFA, and $2 million is available through a 
separate NOFA for Section 8 Homeownership Voucher Housing Counseling 
found elsewhere in this SuperNOFA. Of this $35.561 million, up to 
$250,000 is available for counseling services that specifically target 
Colonias, and $2.7 million is available for counseling services 
addressing predatory lending. An allocation of $1 million of the 
$39,740,000 appropriated is available for the Home Equity Conversion 
Mortgage (HECM) Program, as provided in section 255(k) of the National 
Housing Act (12 U.S.C. 1715z-20). With the balance of FY03 
appropriation, and additional carry-over funding, an allocation of up 
to $4 million has been set aside for housing counseling support such as 
training and tuition assistance for housing counselors, or other HUD 
counseling initiatives and activities, or both.
    Grant Categories--HUD will award grants to qualified public or 
private nonprofit organizations to provide housing counseling services 
through five grant categories: (1) Local Housing Counseling Agencies 
(LHCAs); (2) National and Regional Intermediaries; (3) State Housing 
Finance Agencies (SHFAs); (4) Agencies Serving Colonias; and (5) 
Predatory Lending.

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    HUD-approved LHCAs, HUD-approved national or regional 
intermediaries, and SHFAs are eligible for funding under Categories 4 
and/or 5. Applicants applying under Categories 4 and/or 5 may also 
apply under one of Categories 1-3, as described below. A separate 
application must be submitted for each Category under which you apply. 
See Section VI, ``Application Submission,'' below for details on where 
to submit applications, as submission requirements vary by category and 
applicant type.
    HUD-approved LHCAs--In addition to Categories 4 and 5, HUD-approved 
LHCAs may apply for and receive: (1) One grant under Category 1; or (2) 
one sub-grant from an intermediary or SHFA under Category 2 or 3; but 
not both. HUD-approved LHCAs that apply under Category 1 are prohibited 
from also applying for or receiving a sub-grant under Category 2 or 3.
    LHCAs that are not HUD-approved, but are affiliates or branches of 
SHFAs or national or regional intermediaries, may receive only one sub-
grant from an intermediary under Category 2 or 3, but not both, and/or 
a sub-grant from an intermediary under Category 4 and/or 5. They are 
not, however, eligible to apply directly to HUD under Categories 1, 4 
or 5.
    HUD-approved national and regional intermediaries--In addition to 
Categories 4 and 5, HUD-approved national and regional intermediaries 
may apply for a grant under Category 2.
    SHFAs--In addition to Categories 4 and 5, SHFAs may only apply for 
grants under Category 3.
    Category 1--Local Housing Counseling Agencies (LHCAs.) $12.45 
million is available from HUD to directly fund HUD-approved LHCAs.
    Award: No individual LHCA may be awarded more than $150,000. HUD 
anticipates that the average award will be approximately $36,000.
    Funding allocation: Funding is allocated to each HOC jurisdiction 
by a formula that incorporates first-time homebuyer and default rates.
    Allocations for Category 1 by HOC are as follows:

------------------------------------------------------------------------
                                                              Funding
                           HOC                              allocation
------------------------------------------------------------------------
Philadelphia HOC........................................       3,679,412
Atlanta HOC.............................................       3,837,703
Denver HOC..............................................       2,848,906
Santa Ana...............................................       2,083,980
                                                         ---------------
    Total...............................................  $12.45 million
------------------------------------------------------------------------

    Category 2--National and Regional Intermediaries. $18.161 million 
is available from HUD to directly fund HUD-approved national and 
regional intermediaries.
    Awards for HUD-approved national and regional intermediaries may 
not exceed $2.5 million and $750,000, respectively.
    Category 3--State Housing Finance Agencies (SHFA). $2 million is 
available to fund SHFAs that provide housing counseling services 
directly or serve as intermediaries to affiliates who offer housing 
counseling services.
    Award: There is no cap on the award amount that a SHFA, or its 
affiliates, may receive.
    Funding allocation: Funding is allocated to each HOC jurisdiction 
by a formula that incorporates first-time homebuyer and default rates.
    Allocations for Category 3 by HOC are as follows:

------------------------------------------------------------------------
                                                              Funding
                           HOC                              allocation
------------------------------------------------------------------------
Philadelphia HOC........................................         591,070
Atlanta HOC.............................................         616,498
Denver HOC..............................................         457,656
Santa Ana...............................................         334,776
                                                         ---------------
    Total...............................................      $2 million
------------------------------------------------------------------------

    Category 4--Colonias. $250,000 is available for housing counseling 
services that specifically target Colonias.
    Eligible applicants include (1) HUD-approved LHCAs; (2) HUD-
approved

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national and regional intermediaries; and (3) SHFAs.
    Award: There is no cap on the award amount.
    Category 5--Predatory Lending. $2.7 million is available for 
housing counseling services addressing predatory lending. Specifically, 
grants under this category are designed to: (a) assist victims of 
predatory lending; and (b) assist clients with identifying and avoiding 
predatory lending practices, such as loans with unfair and 
inappropriate terms and conditions, and other unscrupulous practices 
intended to defraud and/or take advantage of homebuyers / borrowers.
    Eligible applicants include (1) HUD-approved LHCAs; (2) HUD-
approved national and regional intermediaries; and (3) SHFAs.
    Award. Awards for HUD-approved national intermediaries may not 
exceed $450,000. Awards for HUD-approved regional intermediaries and 
SHFAs may not exceed $140,000. Awards for HUD-approved LHCAs may not 
exceed $40,000.
    Funding Allocation. $1.5 million is available for national 
intermediaries. $300,000 is available for regional intermediaries and 
SHFAs. The amount of funding available for LHCAs is $900,000.

III. Program Description/Eligibility

    (A) Eligible Applicants--Eligible SHFAs are entities that satisfy 
the definition in 24 CFR 266.5 of a ``Housing Finance Agency.'' SHFAs 
and eligible sub-grantees/affiliates do not need HUD approval in order 
to receive these funds.
    Eligible LHCAs and intermediaries are private nonprofit and public 
organizations, including grass-roots faith-based and other community-
based organizations, that secure HUD-approval as an LHCA, or as a 
national or regional intermediary, as of the publication date of this 
SuperNOFA, and retain such approval through the term of any grant 
awarded. For information on securing HUD-approval visit HUD's website 
at http://www.hud.gov/offices/hsg/sfh/hcc/hccprof13.cfm.
    Additionally, to be eligible to receive a grant directly from HUD 
under this Housing Counseling NOFA, all applicants (except SHFAs) must 
be (1) duly organized and existing as a nonprofit, (2) in good standing 
under the laws of the state of its organization, and (3) authorized to 
do business in the states where it proposes to provide counseling 
services. For example, applicable state licensing, corporate filing, 
and registering requirements must be satisfied.
    An LHCA, intermediary, SHFA or affiliate may use branch offices to 
provide counseling funded through this NOFA. A branch office is an 
organizational and subordinate unit of the LHCA, intermediary, or SHFA, 
not separately incorporated or organized. LHCAs and affiliates of 
intermediaries and SHFAs may maintain a main office and branch offices 
in no more than two states, which must be contiguous.
    Intermediaries and SHFAs provide sub-grants to affiliates and/or 
branches. Eligible sub-grantees are not required to be HUD-approved, 
although HUD-approved LHCAs may apply to an intermediary or SHFA as a 
sub-grantee. Intermediaries and SHFAs that award sub-grants to 
affiliates or branches that are not HUD-approved must assure that said 
organizations meet or exceed the standards, as specified in paragraph 
2-1 of HUD Handbook 7610.1, Rev-4, CHG-1, for HUD-approved LHCAs. These 
organizations will be monitored by HUD, and intermediaries that do not 
ensure their affiliates'/branches' compliance with HUD standards could 
be prohibited from participating in the program.
    To be eligible for a sub-grant under categories 2 or 3, affiliates 
or branches must not have directly applied for or received a grant 
under Category 1 of this NOFA, or another sub-grant from an 
Intermediary or SHFA under Category 2 or 3 of this NOFA. Affiliates or 
branches receiving a sub-grant under Category 2 or 3 are also eligible 
to receive sub-grants under categories 4 and/or 5, but only with the 
same intermediary or SHFA through which they receive a sub-grant under 
Categories 2 or 3. If also HUD-approved as an LHCA, affiliates or 
branches receiving a sub-grant under Categories 2 or 3 are permitted to 
apply to HUD directly as an LHCA under Categories 4 and/or 5. 
Similarly, an LHCA that applies directly to HUD under Category 1 may 
also receive sub-grants from an intermediary or SHFA under Categories 4 
and/or 5, but only with the same intermediary or SHFA.
    Additionally, to be eligible for a sub-grant, an affiliate must be 
(1) duly organized and existing as a nonprofit, (2) in good standing 
under the laws of the state of its organization, and (3) authorized to 
do business in the states where it proposes to provide housing 
counseling services. For example, applicable state licensing, corporate 
filing, and registering requirements must be satisfied.
    (B) Eligible Activities. Agencies selected as grantees or sub-
grantees will only be reimbursed for the eligible activities outlined 
in this Section.
    Grantees or sub-grantees directly providing housing counseling 
services under Categories 1 through 4 may use their HUD housing 
counseling funds for one or more of the 8 eligible activities listed 
below.
    Grantees or sub-grantees directly providing housing counseling 
services under Category 5 (Predatory Lending) may use their HUD housing 
counseling funds for group sessions and/or one-on-one counseling that 
clearly and directly assists victims of predatory lending or helps to 
prevent predatory lending.
    (1) Pre-Occupancy Counseling. This includes the following types of 
one-on-one counseling: pre-purchase; pre-rental; search assistance/
mobility; fair housing; budgeting for mortgage or rent payments; money 
management; and housing care and maintenance. This also may include 
guidance on: alternative sources of mortgage credit; how to apply for 
housing assistance; how to identify and avoid predatory lending 
practices; locating housing which provides universal design and 
visitability; referrals to community or homeless services, and 
regulatory agencies; and advocating with lenders for non-traditional 
lending standards.
    (2) Homebuyer Education Programs. These programs are housing 
related education programs in which educational materials are used in 
training sessions for multiple participants, including HUD's Homebuyer 
Education and Learning Program (HELP). For a typical homebuyer 
education program, participants complete eight to twelve course hours. 
Agencies that provide this service must also offer individual 
counseling to complement group sessions.
    (3) Post-Purchase/Mortgage Default and Rent Delinquency Counseling. 
This includes counseling on how to: restructure debt, obtain 
recertification for rent subsidy, establish reinstatement plans, seek 
loan forbearance, and manage household finances. This counseling can 
also include helping victims of predatory lending, educating clients on 
renter's and landlord's rights, explaining the eviction process, 
providing referrals to other sources, and assisting clients with 
locating alternative housing or pursuing loss mitigation strategies.
    (4) Post-Purchase/Post-Occupancy Counseling. This includes 
education programs and counseling activities on property maintenance, 
personal money management, and relations with lenders and landlords.
    (5) Home Equity Conversion Mortgage (HECM) Counseling. HECM 
counseling assists clients who are 62 years or older

[[Page 21246]]

with the opportunity to convert the equity in their homes into income 
to pay living, medical or other expenses.
    (6) Home Improvement and Rehabilitation Counseling. This counseling 
includes educating the client about: Their loan and grant options; the 
loan and/or grant application processes; what housing codes and housing 
enforcement procedures apply for the intended activity; accessibility 
codes and how to design features to provide accessibility for persons 
with disabilities; non-discriminatory lending and other funding for 
persons who modify their dwellings to accommodate disabilities; 
visitability and universal design; how to specify and bid construction 
work; how to enter into construction contracts; and how to manage 
construction contracts, including actions to address the non-
performance of contractors.
    (7) Displacement and Relocation Counseling. This counseling 
includes helping clients understand their rights when faced with 
displacement, explaining the responsibility of the entity causing 
displacement, assisting clients with understanding eviction 
proceedings, providing assistance with locating alternate housing, and 
referring clients to homeless services.
    (8) Marketing and Outreach Initiatives. This includes providing 
general information about housing opportunities, conducting 
informational campaigns, and raising awareness about critical housing 
topics, such as predatory lending or fair housing issues. (Note: 
affirmative fair housing outreach should be directed at those 
populations least likely to seek counseling services. To do so, it may 
be necessary to broaden the target areas in order to reach a greater 
variety of racial and ethnic minorities.)

    Note: For each of the eight general activities you propose, you 
must be prepared to meet the needs of all individuals requesting 
services, including persons with disabilities, regardless of the 
complexity of the services involved. Additionally, services must be 
affirmatively marketed to persons with disabilities, including 
visual and hearing disabilities, as they would be to any other 
segment of the population not likely to apply for such services.

    (C) Eligible Intermediary/SHFA Activities. Intermediaries and SHFAs 
can directly provide the housing counseling services described above in 
Sub-Section A through branches, or distribute and administer grant 
funds and provide technical assistance and other services to 
affiliates, who are eligible to undertake any or all of the eligible 
housing counseling activities outlined above.
    Intermediaries and SHFAs have wide discretion to decide how to 
allocate their HUD Housing counseling and leveraged funding among their 
branches or affiliates, with the understanding that a written record 
must be kept documenting and justifying funding decisions. This record 
must be made available to affiliates and to HUD. Intermediaries and 
SHFAs must also execute sub-grant agreements with their affiliates that 
clearly delineate the mutual responsibilities for program management, 
including appropriate time frames for reporting results to HUD.

IV. Requirements

    Agencies selected as grantees or sub-grantees must also comply with 
the following requirements:
    (A) Threshold Requirements. The requirements listed in Section V of 
the General Section of the SuperNOFA apply to this program. 
Applications will be declared ineligible for any of the following 
reasons:

--If you or any of your affiliates or branches do not meet the Civil 
Rights Threshold Requirements set forth in Section V(B) of the General 
Section of this SuperNOFA.
--If you are presently debarred, suspended, proposed for debarment, 
declared ineligible, or voluntarily excluded from covered transactions 
from any federal department or agency.
--If you are not currently approved by HUD as an LHCA or as a National 
or Regional Housing Counseling Intermediary, and if you didn't secure 
approval by the publication date of this SuperNOFA. SHFAs need only 
satisfy the definition in 24 CFR 266.5 of a ``Housing Finance Agency.''

    (B) Program Requirements. Programmatic requirements are outlined in 
detail in HUD Handbook 7610.1, REV-4, CHG-1, dated October 27, 1997, 
which can be viewed on HUD's website at http://www.hud.gov/offices/hsg/
sfh/hcc/hccprof7.cfm.
    Additionally, the following also apply:
    (1) List of Agencies. Pursuant to section 106(C)(5) of the Housing 
and Urban Development Act of 1968, HUD maintains a list of all HUD-
approved and HUD-funded counseling agencies, including contact 
information, which interested persons can access. All grantees under 
Categories 1, 4, and 5 and sub-grantees under Categories 2, 3, 4 and 5 
will be placed on this list and must accept subsequent referrals, or 
when they do not provide the services sought, refer the person to 
another agency in the area that does provide the services.
    (2) Accessibility--All grant recipients and sub-recipients must 
make counseling offices and services reasonably accessible to persons 
with a wide range of disabilities and help persons locate suitable 
housing in locations throughout the applicant's community, target area, 
or metropolitan area, as defined by the applicant.
    (C) Religious Discrimination. Grant recipients and sub-recipients 
are prohibited from discriminating on behalf of or against any segment 
of the population in the provision of services or in outreach, 
including those of other religious affiliations.
    Additionally, organizations funded under this program may not 
engage in inherently religious activities, such as worship, religious 
instruction, or proselytization, as part of the programs or services 
funded under this program. If an organization conducts such activities, 
these activities must be offered separately, in time or location, from 
the programs or services funded under this part, and participation must 
be voluntary for the HUD-funded programs or services.
    (D) Code of Conduct. Entities that are subject to 24 CFR parts 84 
and 85 (most nonprofit organizations and state, local and tribal 
governments or government agencies or instrumentalities who receive 
federal awards of financial assistance) are required to develop and 
maintain a written code of conduct (See Sec. Sec.  84.42 and 
85.36(b)(3)). Consistent with regulations governing housing counseling 
programs, your code of conduct must prohibit real and apparent 
conflicts of interest that may arise among employees, officers or 
agents; prohibit the solicitation and acceptance of gifts or gratuities 
by your officers, employees and agents for their personal benefit in 
excess of minimal value; and outline administrative and disciplinary 
actions available to remedy violations of such standards. Self-recusal 
shall not eliminate a potential or apparent conflict of interest. If 
awarded assistance under this SuperNOFA, prior to entering into a grant 
agreement with HUD you will be required to submit a copy of your code 
of conduct and describe the methods you will use to ensure that all 
officers, employees and agents of your organization are aware of your 
code of conduct.
    (E) Performance Measurement. Grant recipients are required to 
complete and submit a form HUD-9902, Fiscal Year Activity Report 
(Appendix A). The information compiled from this report provides HUD 
with its primary means of measuring your program performance.

[[Page 21247]]

    (F) Environmental Requirements. In accordance with 24 CFR 
50.19(b)(9) and (12) of the HUD regulations, activities assisted under 
this program are categorically excluded from the requirements of the 
National Environmental Policy Act and are not subject to environmental 
review under the related laws and authorities.
    (G) Financial Management Systems. Applicants selected for funding 
must provide documentation demonstrating that the applicant's financial 
management systems satisfy the requirements in the applicable 
regulations at 24 CFR 84.21(b) and 85.20. Consistent with the 
requirements of the Single Audit Act Amendments of 1996 (31 U.S.C. 
7501-07), if the applicant expended $300,000 or more in federal awards 
in its most recent fiscal year, such documentation must include a 
certification from, or most recent audit by, the applicant's 
Independent Public Accountant that the applicant maintains internal 
controls over federal awards; complies with applicable laws, 
regulations, and contract or grant provisions; and prepares appropriate 
financial statements. The applicant will have at least thirty (30) 
calendar days to respond to this requirement. If an applicant does not 
respond within the prescribed time or responds with insufficient 
documentation, then HUD may determine that the applicant has not met 
this requirement and may withdraw the grant offer.
    (H) Indirect Cost Rate. You must also submit documentation 
establishing your organization's indirect cost rate. Such documentation 
may consist of a certification from, most recent audit, or indirect 
cost rate agreement by, the cognizant federal agency or an Independent 
Public Accountant. If your organization does not have an established 
indirect cost rate, you will be required to develop and submit an 
indirect cost proposal to HUD or the cognizant federal agency as 
applicable, for determination of an indirect cost rate that will govern 
your award. Applicants that do not have a previously established 
indirect cost rate with a federal agency shall submit an initial 
indirect cost rate proposal immediately after the applicant is advised 
that it will be offered a grant and, in no event, later than three 
months after the effective date of the grant. OMB Circular A-122 
established the requirements to determine allowable direct and indirect 
costs and the preparation of indirect cost proposals, and can be found 
at www.whitehouse.omb.gov.

V. Application Selection Process

    (A) General. Applications will be evaluated competitively, and 
ranked against all other applicants that applied in the same funding 
category. For Category 2, applications by national and regional 
intermediaries will be scored and ranked in HUD Headquarters. For 
Category 1, LHCAs, and Category 3, SHFAs, applications will be scored 
and ranked by the relevant HOC. The Santa Ana HOC will score all 
applications under Category 4, Colonias, and Category 5, Predatory 
Lending Grants.
    (B) Factors For Award Used to Rate and Rank Applications. 
Information on the application scoring process appears in section VI(B) 
of the General Section of this SuperNOFA. The Factors for Award, and 
maximum points for each factor, are outlined below.
    These factors will be used to evaluate applications under 
Categories 1-5, and the maximum number of points for each applicant is 
102 points for LHCAs and 100 for all other applicants. LHCAs are 
eligible for 2 bonus points if they can demonstrate that at least 51% 
of their proposed services: (1) Will be provided to residents of 
federally designated Empowerment Zones (EZs), Enterprise Communities 
(ECs), Urban Enhanced Enterprise Communities (EECs), Strategic Planning 
Communities, or Renewal Communities (RCs); and (2) are certified to be 
consistent with the area's strategic plan. Section VI(C)(1) of the 
General Section of this SuperNOFA, entitled ``RC/EZ/EC,'' contains 
additional information regarding these bonus points.
    HUD may rely on information from performance reports, financial 
status information, monitoring reports, audit reports and other 
information available to HUD in making score determinations under any 
Rating Factor.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (35 Points)

    HUD uses responses to this Rating Factor to evaluate the readiness 
and ability of an applicant to immediately begin the proposed work 
program, as well as the potential for an applicant to cost-effectively 
and successfully implement the proposed activities indicated under 
Rating Factor 3.
    (A) (6 points) Knowledge and Experience. In rating this Section, 
HUD will consider the degree to which the applicant, and, if 
applicable, affiliates, has sufficient personnel with the relevant 
knowledge and experience to implement the proposed activities in a 
timely and effective fashion.
    Specifically, for LHCAs, scoring will be based on the number of 
years of recent housing counseling experience of counselors. For 
intermediaries and SHFAs, scoring will be based on: The number of years 
of recent housing counseling experience of counselors in affiliates and 
branches; and the number of years, for key intermediary/SHFA personnel, 
of recent experience running a housing counseling program consisting of 
a network of multiple counseling agencies. Related experience, such as 
experience in mortgage lending, will also be considered, but will not 
be weighted as heavily as direct housing counseling or housing 
counseling program management experience.

--Submit the names and titles of employees, including subcontractors 
and consultants, performing the activities proposed in Rating Factor 3. 
Clerical staff should not be listed. Describe each employee's, 
subcontractor's, or consultant's relevant professional background and 
experience. Experience is relevant if it corresponds directly to 
projects of a similar scale and purpose. Provide the number of years of 
experience for each position listed, and indicate when each position 
was held. Individual descriptions should be limited to one page. List 
recent and relevant training received.
    Applicants for Category 5 should specifically highlight the 
predatory lending-related experience, both one-on-one and group 
sessions, of staff to demonstrate that your organization has the 
knowledge and capacity to effectively utilize a predatory lending 
grant. Also indicate whether or not relevant staff has received loss 
mitigation training.
    (B) Past Grantee Performance. Sections B1 and B2 pertain to the 
applicant's performance with their FY01 HUD award for the grant period 
October 1, 2001-September 30, 2002, the most recent complete grant 
year. If you received no HUD grant for that grant period, the seven 
points available in Section B1, and the fourteen points available in 
Section B2, will be allocated to Section B3 (Impact of Leveraged 
Resources,) for a total of 24 points.
    (B1) (7 points) Quality and Complexity of Services. In scoring this 
Section, HUD will evaluate the level of effort and time required to 
provide the housing counseling services captured in the form HUD-9902 
for the time period October 1, 2001 to September 30, 2002. Scoring will 
be based on the degree to which the applicant demonstrates that, for 
each type of counseling service delivered, and compared to other

[[Page 21248]]

applicants, sufficient time and resources were devoted to ensure that 
clients received quality counseling. Additionally, scorers will 
evaluate the extent to which, as compared to other applicants, an 
agency encouraged and provided one-on one counseling, which HUD 
considers the most effective form of housing counseling, instead of 
over-relying on homebuyer education workshops and other forms of group 
sessions.
    Applicants should carefully document the types and complexity of 
the services provided with FY01 HUD grant funds, and the outcomes for 
clients as a result of the counseling. Describe the level of effort and 
time required to provide the housing counseling services and to meet 
the needs of your clients. Indicate the average counseling time per 
client for all types of counseling performed. Also describe follow-up 
activities, if applicable.
    Indicate the number of clients that participated only in Homebuyer 
Education workshops or other types of classes offered as group 
sessions. Indicate the number of individuals who participated in group-
sessions and also received one-on-one counseling.
    (B2) (14 points) Impact/Outcomes--HUD Grant. In scoring this 
Section, HUD will evaluate the applicant's, and if applicable, 
affiliates' and branches', clients served numbers and performance-
related outcomes for the grant period October 1, 2001 to September 30, 
2002. Clients served numbers will be scored based on the quantity of 
clients the applicant was able to serve compared to similar applicants 
providing similar services. Clients served numbers will be analyzed in 
the context of budget, costs, spending decisions, the types of services 
provided, level of effort expended, etc. Outcomes will be scored based 
on how well the applicant met performance goals.
    Indicate the number of clients that you proposed to serve with your 
HUD grant in Factor 3 of your FY01 Housing Counseling NOFA application 
(submitted May 3, 2001), and compare it with the number attributed to 
the HUD grant appearing on the 9902 form submitted with this 
application, covering October 1, 2001-September 30, 2002, which 
corresponds to the FY01 application and resulting award. Explain any 
differences between goals and results, including differences in 
proposed and actual grant amounts.
    If you received no FY01 HUD grant covering October 1, 2001-
September 30, 2002, characterize your performance at meeting your goals 
regarding activities for that time period, under other sources of 
funding, such as other federal, state or local grant awards. Explain 
any differences between goals and results.
    While HUD values cost-effectiveness, we are not simply trying to 
identify and fund the lowest-cost service providers. We realize that 
costs vary depending on location and types of services provided, and we 
appreciate that strategic investments, such as investments in training, 
technology, or more qualified staff, may potentially be an efficient 
use of resources, but impact counseling volume in the short-term.
    So HUD can evaluate your program results, provide a context for, or 
qualify, the number of clients you indicated, on the form HUD-9902 
submitted with this application, that were served with your HUD-grant. 
Describe the types of counseling conducted. Indicate how location, 
counseling and client type, and expenses may have impacted client 
volume, and, if applicable, how they will impact client volume in the 
future.
    Identify specific uses of HUD grant funds, such as staff salaries, 
other staff costs, training, and travel expenses. Itemize the total 
costs for each use. Provide the average hourly labor rate for 
counselors. Justify your expenses and explain why they were reasonable, 
strategic, and appropriate for the counseling activities identified 
above.
    Intermediaries and SHFAs that received an FY01 HUD award for the 
grant period October 1, 2001 to September 30, 2002 must also indicate 
what percentage of their award was passed through directly to 
affiliates or branches, and explain how funds not passed through were 
spent.
    Provide the following performance outcomes for counseling 
activities covered by your FY01 HUD grant, for the grant period October 
1, 2001 to September 30, 2002:

    [sbull] The number of individuals receiving pre-purchase counseling 
that purchased a home;
    [sbull] The number of individuals receiving pre-purchase counseling 
that are working toward becoming mortgage ready;
    [sbull] The number of individuals receiving pre-purchase counseling 
that, after evaluating their unique financial situation and the costs 
of homeownership, elected not to purchase a home;
    [sbull] The number of individuals receiving default counseling that 
successfully avoided foreclosure;
    [sbull] For applicants applying under Category 5, the number of 
victims of predatory lending counseled that were able to have their 
mortgage modified, refinanced, or otherwise assisted to avoid 
foreclosure.
    So HUD can evaluate these outcome/results, indicate the outcome 
goals that you had set for yourself prior to the grant period, October 
1, 2001 to September 30, 2002, and characterize your performance at 
meeting those goals. Compare these outcome goals with your actual 
performance outcomes. Describe relevant market conditions and other 
circumstances that you believe affected reported outcome numbers.


    [Note: The outcomes listed above correspond to the new form HUD-
9902 (appendix A), from which these outcome results will be derived 
in future NOFAs. In future NOFAs, outcomes will be evaluated based 
on the degree to which the applicant was able to meet the outcome 
estimates it provided in Factor 5 of the relevant previous 
application. In other words, applicants will be held accountable for 
fulfilling performance-related promises made in NOFA applications.]

    If you received no FY01 HUD grant, provide these performance 
outcomes for counseling activities covering October 1, 2001--September 
30, 2002, under other sources of funding, such as other federal, state 
or local grant awards. Indicate how each compares with the outcome 
goals that you had set for yourself for the activity period, and 
characterize your performance at meeting outcome goals.
    Applicants applying under Category 5 must also describe your 
organization's direct experience for the grant period October 1, 2001 
to September 30, 2002, in assisting individuals, through outreach, in 
identifying and avoiding predatory lending, and in recognizing 
victimization. For example, describe outreach and educational efforts, 
including group workshops, community meetings, mass media, material 
distribution (provide copies of relevant letters, brochures, etc.), and 
indicate the number of one-on-one counseling interactions that have 
resulted from your outreach efforts. Also describe your outreach 
strategy, including the various types of individuals targeted (e.g. 
sub-prime borrowers, elderly homeowners with substantial equity in 
their homes, attorneys, etc.), explain your rationale for targeting 
specific areas, types of community forums that are effective, methods 
through which your ideas and materials are disseminated, and all other 
relevant information.
    Also, describe efforts through one-on-one counseling, for the grant 
period October 1, 2001 to September 30, 2002, to assist individuals in 
identifying and avoiding predatory lending. Indicate the number of 
clients that have received

[[Page 21249]]

front-end individual counseling related to predatory lending from you, 
or from your affiliates and/or branches.
    Similarly, describe efforts through one-on-one counseling, for the 
grant period October 1, 2001 to September 30, 2002, to assist victims 
of predatory lending and indicate the number of clients that received 
one-on-one predatory lending counseling from you or your affiliates and 
branches. Also quantify and describe the results of one-on-one 
counseling pertaining to predatory lending, including the number of 
victims for whom loans have been successfully restructured, credit 
fixed and the success of other loss mitigation strategies.
    (B3) (3 points) Impact--Leveraged Resources--In scoring this 
Section, HUD will evaluate the applicant's non-HUD funded counseling 
activities and budget during the grant period October 1, 2001 to 
September 30, 2002. Scoring will be based on the quantity of clients 
the applicant was able to serve, compared to similar applicants 
providing similar services. Clients served numbers will be analyzed in 
the context of budget, costs, spending decisions, the types of services 
provided, level of effort expended, etc.
    Provide all the information requested in Sections B1 and B2 above, 
except outcomes, relevant to the non-HUD funded activities recorded on 
the form HUD-9902 submitted with this application.
    Applicants applying under Category 5 should highlight leveraged 
awards your organization received specifically for work related to 
predatory lending during the grant period October 1, 2001 to September 
30, 2002.
    (C) (5 points) Performance/Grant Requirements--In scoring this 
Section, HUD will evaluate how well the applicant satisfied the 
requirements, including reporting, of their FY01 HUD Housing Counseling 
grant, for the grant period October 1, 2001 to September 30, 2002. If 
you did not receive a FY01 HUD grant, base your response on activities 
and requirements under other sources of funding, such as other federal, 
state or local grant awards.
    [sbull] Characterize your performance with regards to the 
timeliness and completeness with which you satisfied reporting 
requirements (such as Form HUD 9902.)
    [sbull] Also indicate whether or not you fully expended grant 
awards during the grant period October 1, 2001 to September 30, 2002. 
If not fully expended, provide an explanation as to the reason why the 
funds were not fully expended and the steps you have taken to ensure 
that future funding will be expended in a timely manner.
    [sbull] Significant findings on biennial reviews conducted by HUD 
staff will be taken into consideration when scoring this Section. 
Explain how you have taken steps to address and correct any significant 
findings, if applicable.

Rating Factor 2: Need/Extent of the Problem (10 Points)

    This factor addresses the extent to which there is a need for 
funding your proposed activities described in your response to Rating 
Factor 3.
    (A) (6 points) Needs Data. In scoring this Section, HUD will 
evaluate the degree to which the applicant is able to provide current 
or recent economic and demographic data, and any other evidence, that 
demonstrates housing counseling need relevant to the target area. 
Applicants that fail to identify current or recent objective data will 
receive no points for this factor. Sources for all data provided must 
be clearly cited. To the extent that the community you serve has 
documented need in its Consolidated Plan, Analysis of Impediments to 
Fair Housing Choice (AI), or other planning documents, reference these 
in your response. Economic and demographic data must include persons 
with disabilities located in the target area. The U.S. Census Bureau, 
for example, maintains disability data by state, county and 
metropolitan statistical area (MSA) at the following website address: 
http:www.census.gov/hhes/www/disability.html.
    In scoring this Section, HUD will also evaluate the degree to which 
the applicant is able to provide current or recent economic and 
demographic data, and any other evidence, that demonstrates need 
relative to the activities proposed in Rating Factor 3.
    Demonstrate that there is a clear relationship between the 
community needs outlined above, and your proposed activities. All 
proposed activities must have corresponding need-related data.
    Applicants under category 5 must provide current or recent economic 
and demographic data, and any other evidence, that demonstrates the 
prevalence and impact of predatory lending within the target area.
    (B) (4 points) Departmental Policy Priorities. The Departmental 
policy priorities are listed in section II of the General Section of 
the SuperNOFA. Of those listed, the following 4 apply to the Housing 
Counseling Program for the purpose of this NOFA:
    (1) Providing Increased Homeownership and Rental Opportunities for 
Low- and Moderate-Income Persons, Persons with Disabilities, the 
Elderly, Minorities, and Families with Limited English Proficiency.
    (2) Providing Full and Equal Access to Grass-Roots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation.
    (3) Colonias.
    (4) Participation of Minority Serving Institutions in HUD Programs.
    You will receive one point (up to 4 total) for each of the 
Departmental policy priorities that your work plan substantively 
addresses.

Rating Factor 3: Soundness of Approach/Scope of Housing Counseling 
Services (40 Points)

    This factor addresses the quality and effectiveness of your 
proposed housing counseling activities.
    (A) (2 points) Work Plan. In scoring this Section, HUD will 
consider the quality and completeness of the response.
    Describe the proposed housing counseling services and if 
applicable, intermediary activities, including training, you propose to 
undertake, and identify the geographic area your services will cover.
    National and Regional Intermediaries and State Housing Finance 
Agencies must also provide the following additional information:
    (a) Identify which affiliates or branches will receive funding 
through this grant award. Applicants unable to identify which 
affiliates will receive sub-grants must explain why this is the case 
and what process will be used to select grantees. Pursuant to the 
applicable regulations at 24 CFR 84.82(d)(3)(iii) and 85.30(d)(4), 
grantees must receive HUD's prior written approval for sub-grants.
    (b) Describe the activities of those affiliates, explicitly stating 
the types of services to be offered.
    (c) Describe your legal relationship with your affiliates or 
branches (i.e., membership organization, field or branch office, 
subsidiary organization, etc.)
    (d) Explain the process that will be used to determine affiliate or 
branch funding levels, distribute funds, and monitor affiliate 
performance, including compliance with the civil rights requirements 
outlined in the General Section of the SuperNOFA.
    (B) (6 points) Employee Allocation/Staff hours. In scoring this 
Section, HUD will evaluate whether allocated staff and staff hours are 
appropriate and sufficient to perform all proposed tasks.

[[Page 21250]]

    Indicate the names and titles of employees, including 
subcontractors and consultants, allocated to each proposed activity, as 
well as the corresponding staff hours for each task. Demonstrate that 
each employee's experience is related to the tasks they are to perform.
    (C) (6 points) Coordination. In scoring this Section, HUD will 
consider the extent to which the applicant can demonstrate they will 
coordinate proposed activities with other organizations, and with other 
services and products offered by the applicant's organization, in a 
manner that benefits their clients.
    Describe partnerships and efforts to coordinate proposed activities 
with other organizations, including, but not limited to, emergency 
services providers, lending organizations and nonprofit housing 
providers. Any written agreements or memoranda of understanding in 
place should be described and copies provided.
    National and regional intermediaries should also highlight internal 
lending operations and loan products available to clients, as well as 
internal affordable housing programs that can be a resource for 
clients.
    Describe plans to avoid conflicts of interest, such as methods for 
disclosing to participants that they are free to choose lenders, 
lending products, and homes, regardless of the recommendations made by 
counselors, and provide copies of relevant disclosure forms and 
materials.
    Applicants under Category 5 should also describe relevant 
partnerships and relationships with other organizations, including 
state and local government regulatory agencies, Legal Aid groups, and 
other organizations with whom you collaborate on predatory lending 
cases and issues, or to whom you refer victims.
    (D) (13 points) Quality and Complexity of Services. In scoring this 
Section, HUD will evaluate the quality of the proposed housing 
counseling services, and level of effort and time associated with 
providing the proposed counseling services to the number of clients you 
estimate you will serve in Section E. Scoring will be based on the 
degree to which the applicant demonstrates that, for each type of 
counseling service delivered, and compared to other applicants, 
sufficient time and resources will be devoted to ensure that clients 
receive quality counseling. Additionally, scorers will evaluate the 
extent to which, as compared to other applicants, an agency will 
encourage and provide one-on-one counseling, which HUD considers the 
most effective form of housing counseling, instead of over-relying on 
homebuyer education workshops and other forms of group sessions.
    Applicants should carefully document the types and complexity of 
the services to be provided. Describe the level of effort and time you 
anticipate is required to provide the proposed counseling services to, 
and meet the needs of, the number of clients you indicate in Section E 
that you will serve with the proposed grant. Estimate the average 
counseling time you, and if applicable your affiliates and branches, 
anticipate per client for all types of counseling offered. Also 
describe planned follow-up activities, if applicable.
    Indicate how many of the clients that you propose to serve with the 
HUD grant in Section E will participate only in Homebuyer Education 
workshops or other group sessions. Also estimate the number of clients 
that will participate in Homebuyer Education workshops or other group 
session and also received one-on-one counseling. Explain and justify 
significant changes in the quantity of group sessions and one-on-one 
counseling sessions you propose to provide, relative to past 
performance and grant/budget size described in Rating Factor 1.
    (E) (13 points) Efficient Use of Resources--Proposed HUD Grant 
Activities. In scoring this Section, HUD will evaluate the number of 
clients that the applicant, and if applicable, affiliates and branches, 
estimate will be served under the proposed HUD grant, for the grant 
period October 1, 2003 to September 30, 2004. Scoring will be based on 
the quantity of clients the applicant proposes to serve, compared to 
similar applicants providing similar services. Proposed clients served 
numbers will also be analyzed in the context of budget, costs, spending 
decisions, the types of services provided, level of effort expended, 
etc.
    Indicate the number of clients you project will be served by your 
organization, or, if applicable, affiliates and branch offices, under 
the proposed HUD grant. Do not provide ranges or percentages, but a 
specific number of clients.
    For applicants applying under Category 5, project the number of 
clients you propose to serve (no ranges or percentages) through both 
outreach and other types of group sessions, and individual counseling.
    Explain and justify significant changes, relative to past 
performance and grant/budget size described in Rating Factor 1, in the 
number of clients you propose to serve. For example, demonstrate that 
you have the financial and human resources necessary to adequately 
serve the additional clients, or describe changes in the types of 
counseling being delivered, costs, etc.
    Provide a context for, or qualify the number of clients you project 
to serve with the proposed HUD grant. Indicate how location, counseling 
and client types, and expenses may affect client volume, and whether 
the impact will be short-term or long-term.
    Itemize the costs associated with each specific proposed use of 
counseling funds, such as staff salaries, other staff costs, and 
training and travel expenses. Provide the average hourly-labor rate for 
counselors. Justify your proposed expenses and explain why they are 
reasonable, strategic, and appropriate for the counseling activities 
identified above.
    Intermediaries and SHFAs must indicate what percentage of their 
proposed HUD grant will be passed through directly to affiliates or 
branches, and explain how funds not passed through will be spent.

Rating Factor 4: Leveraging Resources (10 Points)

    HUD housing counseling funding is not intended to fully fund an 
organization's housing counseling program, or that of its local 
affiliates and branch offices. All organizations that use housing 
counseling grant funds are expected to seek other private and public 
sources of funding for housing counseling to supplement HUD funding. 
Any agency that does not have other resources available will receive no 
points for this factor.
    Applicants will be evaluated based on their ability to provide 
evidence that they have obtained additional resources for their housing 
counseling activities, including: direct financial assistance; in-kind 
contributions, such as services, equipment, office space, labor; etc. 
In responding to this Rating Factor, applicants under Categories 4 and 
5 should submit evidence of all housing counseling-related leveraged 
resources, not just the leveraged funds they intend to devote to 
Colonias or predatory lending, respectively. Resources may be provided 
by governmental entities, public or private nonprofit organizations, 
for-profit private organizations, or other entities committed to 
providing you assistance.
    In order to obtain points under this factor, the applicant must 
demonstrate leveraging by providing letters from entities and/or 
individuals committing resources to the project that include:


[[Page 21251]]


--The identity of the entity or individual committing resources to the 
project.
--Dollar value of the resources to be committed.
--Types of resources to be committed.
--An indication that the resources will be available during the grant 
period pertaining to this NOFA, October 1, 2003-September 30, 2004.
--An indication that the award, or a specific portion of it, is 
intended for housing counseling.
--The signature of an official of the entity legally able to make 
commitments on behalf of the entity.
--No conditions that would nullify the commitment. (It is, however, 
acceptable for the commitment to be conditional on HUD funding.)

    Additionally, resources provided by the applicant itself, recorded 
as `applicant match' and `program income' on the form HUD-424, will 
count as leveraged resources.
    Points for this factor will be awarded based on the satisfactory 
provision of evidence of leveraging and financial sustainability, as 
described above, and the ratio of requested HUD housing counseling 
funds to total housing counseling budget. Depending on organization 
type, the following scales will be used to determine scores for this 
factor:

------------------------------------------------------------------------
                         Percentage                             Points
------------------------------------------------------------------------
                             LHCAs and SHFAs
------------------------------------------------------------------------
1-20.......................................................           10
21-35......................................................            9
36-42......................................................            8
43-50......................................................            7
51-58......................................................            6
59-65......................................................            5
66-73......................................................            4
74-80......................................................            3
81-90......................................................            2
91-99......................................................            1
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                  National and Regional Intermediaries
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1-10.......................................................           10
11-15......................................................            9
16-20......................................................            8
21-25......................................................            7
26-30......................................................            6
31-35......................................................            5
36-40......................................................            4
41-45......................................................            3
46-50......................................................            2
51-99......................................................            1
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Rating Factor 5: Achieving Results and Program Evaluation (5 Points )

    This factor emphasizes HUD's determination to ensure that 
applicants meet commitments made in their applications and grant 
agreements and assess their performance to realize performance goals, 
and reflects HUD's goal to embrace high standards of ethics, management 
and accountability.
    The purpose of this factor is for the applicant to identify program 
outputs and outcomes that will allow you and HUD to measure actual 
achievements against anticipated achievements. Outputs and outcomes 
must be objectively quantifiable.
    Submission Requirements for Factor 5. Applicants must submit an 
effective, quantifiable, outcome-oriented evaluation plan for measuring 
performance and determining that output and outcome goals have been 
met. You must submit a program evaluation plan that demonstrates how 
you will measure your own program performance. Your Evaluation Plan 
should identify what you are going to measure, how you are going to 
measure it, and the steps you have in place to make adjustments to your 
work plan if performance targets are not met within established 
timeframes. Specifically, your plan must identify:

--Outputs. Outputs are the direct products of your program's activities 
that lead to the ultimate achievement of outcomes. Examples of outputs 
are the number of individual counseling sessions, and the number of 
group sessions to be provided. Identify interim and full grant term 
outputs, and timeframes for accomplishing these goals. Your plan must 
show how you will measure actual accomplishments against anticipated 
achievements.

--Work Plan Adjustments. Describe steps in place to make adjustments to 
your work plan if outputs are not met within established timeframes or 
if you begin to fall short of established outputs and timeframes. 
Intermediaries and SHFAs should indicate if and how the performance of 
affiliates and branch offices affects current and future sub-grant 
allocations.
--Outcomes. Outcomes are benefits accruing to the families as a result 
of participation in the program. Outcomes are performance indicators 
you expect to achieve or goals you hope to meet over the term of your 
proposed grant. In scoring this Section, HUD will consider the 
appropriateness of the proposed outcomes given the proposed HUD award, 
and past performance, and evaluate proposed outcomes in comparison to 
similar applicants. For the period October 1, 2003-September 30, 2004, 
provide the following anticipated outcomes for clients as a result of 
the proposed grant:

    [sbull] The number of individuals receiving pre-purchase counseling 
that will purchase a home
    [sbull] The number of individuals receiving pre-purchase counseling 
that are working toward becoming mortgage ready
    [sbull] The number of individuals receiving pre-purchase counseling 
that, after evaluating their unique financial situation and the costs 
of homeownership, will elect not to purchase a home
    [sbull] The number of individuals receiving default counseling that 
will successfully avoid foreclosure

Applicants applying under Category 5 should indicate the number of 
victims of predatory lending counseled that will have their mortgage 
modified, refinanced, or otherwise assisted to avoid foreclosure. 
[These specific outcomes correspond to the new form HUD-9902. The 
proposed outcomes you provide will be compared with the results 
captured in the HUD-9902 you submit in the FY05 NOFA to evaluate the 
impact you were able to achieve with this award, and the degree to 
which you were able to meet or exceed your proposed outcomes.]

--Information Collection. Describe your strategy for following-up with 
clients and collecting outcome information.
    (C) Funding Methodology for Categories 1-4. The following funding 
formula will be used to calculate award amounts for Categories 1-4. 
Only applicants who receive a score of 75 points or above will be 
considered eligible for funding. All eligible applicants will then be 
funded in proportion to the score they receive.
    The formula will work as follows for each category: Every applicant 
that scores 75 points or above will receive a base award of $15,000, 
plus additional funds for every point above the 75 point cutoff. The 
total number of applicants receiving the base award will be multiplied 
by $15,000 and that amount will be subtracted from the total amount 
available under the category, or in the cases of Categories 1 and 3, 
available to the HOC. Then, the remaining balance will be divided by 
the total number of points each applicant scores that are above the 75-
point cutoff. The division will result in a dollar value for each 
point. The number of points that each applicant scores above the 75 
point base will be multiplied by that dollar value. The result of that 
multiplication will be added to the $15,000 base for the total award 
amount. For example, an applicant with a score of 85 would receive 
$15,000 plus the dollar value for each point times 10 (10 being the

[[Page 21252]]

number of points above the 75 point cutoff.)
    All grantees will receive the lower of either the award amount 
determined with the formula, or the amount actually requested by the 
applicant.
    (D) Funding Methodology for Category 5--Predatory Lending Grants. 
Only applicants scoring 75 points or above are eligible for funding 
under Category 5. However, because of the limited amount of funds 
available under Category 5, in relation to the potential number of 
applicants, all applicants scoring 75 points or above are not 
guaranteed funding.
    For national intermediaries, up to the top 4 scoring applicants 
(scoring 75 points or above) will receive a base award of $300,000, 
plus additional funds for every point above the 75 point cutoff. The 
total number of applicants receiving the base award will be multiplied 
by $300,000 and that amount will be subtracted from the total amount 
available under the category. The remaining balance ($300,000 if 4 
agencies score 75 points or above) available to national intermediaries 
will be divided by the total number of points each applicant scores 
that are above the 75 point cutoff. The division will result in a 
dollar value for each point. The number of points that each applicant 
scores above the 75 point threshold will be multiplied by that dollar 
value. The result of that multiplication will be added to the $300,000 
base for the total award amount. Awards for HUD-approved national 
intermediaries may not exceed $450,000.
    For regional intermediaries and SHFAs, up to the top 3 scoring 
applicants (scoring 75 points or above) will receive a base award of 
$50,000, plus additional funds for every point above the 75 point 
cutoff. The total number of applicants receiving the base award will be 
multiplied by $50,000 and that amount will be subtracted from the total 
amount available under the category. The remaining balance ($150,000 if 
3 agencies score 75 points or above) available to regional 
intermediaries and SHFAs will be divided by the total number of points 
each applicant scores that are above the 75 point cutoff. The division 
will result in a dollar value for each point. The number of points that 
each applicant scores above the 75 point threshold will be multiplied 
by that dollar value. The result of that multiplication will be added 
to the $50,000 base for the total award amount. Awards for HUD-approved 
regional intermediaries and SHFAs may not exceed $140,000.
    All LHCAs will be ranked against each other nationally. Up to the 
top 30 scoring applicants nationwide scoring 75 points or above will 
receive a base award of $20,000. The total number of applicants 
receiving the base award will be multiplied by $20,000 and that amount 
will be subtracted from the total available under the category. Then, 
the remaining balance ($300,000 if 30 agencies score 75 points or 
above) will be divided by the total number of points each of those 30 
applicants (potentially) scores that are above the 75-point cutoff. The 
division will result in a dollar value for each point. The number of 
points that each applicant scores above the 75 point threshold will be 
multiplied by that dollar value. The result of that multiplication will 
be added to the $20,000 base for the total award amount. Awards for 
HUD-approved LHCAs may not exceed $40,000.
    All grantees will receive the lower of either the award amount 
determined with the formula, or the amount actually requested by the 
applicant.
    (E) Reallocation of Unspent Funds. If funds designated for a 
specific grant Category or sub-category remain unspent after the 
formula has been run and award recommendations determined, HUD may, at 
its discretion, reallocate those funds to any other funding category or 
sub-category in this NOFA, or may reallocate those funds to any 
category under the Section 8 Homeownership / Housing Counseling NOFA 
also issued with this SuperNOFA. Additionally, HUD may reallocate 
unspent funds for housing counseling support activities.
    (F) Applicant Debriefing. Applicants interested in a debriefing 
should consult the instructions in section XI(A)(4) of the General 
Section of the SuperNOFA. Requests should be submitted to the person or 
organization to which you were instructed, in Section VI of this NOFA, 
to submit your application.
    (G) Grant Period. Funds awarded shall be available for a period of 
twelve (12) calendar months. Applicants selected for award must receive 
prior HUD approval to incur costs prior to the date of the grant 
agreement. Grantees may incur pre-award costs ninety (90) calendar days 
prior to the effective date of the grant agreement. All pre-award costs 
are incurred at the applicant's risk and HUD has no obligation to 
reimburse such costs if the award is inadequate to cover such costs or 
the award offer is withdrawn because of the applicant's failure to 
satisfy the requirements of this NOFA.
    (H) Award Instrument. HUD expects to use a grant agreement, but it 
reserves the right to use the award instrument it determines to be most 
appropriate. All Housing Counseling Program awards shall be made on a 
cost reimbursement basis in accordance with the requirements in OMB 
Circular A-87, Cost Principles for state and local governments and 
Indian tribal governments; or OMB Circular A-122, Cost Principles for 
Non-Profit Organizations, as applicable to your organization; and the 
administrative requirements established in OMB Circular A-102, which 
was implemented by 24 CFR part 85 (Administrative Requirements for 
Grants and Cooperative Agreements to state, local and federally 
recognized Indian tribal governments); OMB Circular A-110, which was 
implemented by 24 CFR part 84 (Grants and Agreements with Institutions 
of Higher Education, Hospitals and Other Non-Profit Organizations); and 
OMB Circular A-133 which was implemented by 24 CFR parts 84 and 85. If 
you receive an award you are also required to ensure that any sub-
recipients also comply with the above requirements. OMB circulars can 
be found at http://www.whitehouse.gov/omb/.

VI. Application Submission Requirements

    In addition to reviewing the instructions below, all applicants 
should consult the General Section of this SuperNOFA and review the 
procedures that affect application submission.
    Application. Because applications will be handled by various staff 
members, they must be bound or secured in a binder, and tabbed. Use the 
checklist below to organize your application. Unless indicated below, 
all applicants must submit the following:
    (1) The standard forms, certifications, and assurances listed in 
section V(H) of the General Section of the SuperNOFA (collectively, 
referred to as the ``standard forms.'')
    (2) HUD-approval/Statutory Authority. Each applicant is required to 
submit a copy of their most recent approval letter or certificate of 
approval as a housing counseling agency from HUD, unless the applicant 
is a SHFA that satisfies the definition of a ``Housing Finance Agency'' 
in 24 CFR 266.5. SHFAs must submit evidence of their statutory 
authority to operate as a SHFA, and apply for, and use, any funds 
awarded.
    (3) Form HUD-9902, Housing Counseling Agency Fiscal Year Activity 
Report, for fiscal year October 1, 2001 through September 30, 2002. In 
the space provided on the form, indicate the amount of the FY01 HUD 
grant you received that corresponds with this data. If you did not 
participate in HUD's

[[Page 21253]]

Housing Counseling Program during the period October 1, 2001 through 
September 30, 2002, this report should be completed to reflect your 
counseling workload and budget during that period. A copy of this form 
is included in Appendix A of this NOFA.
    (4) National and Regional Intermediaries must provide a list of, 
and certify to, the states in which they maintain offices, including 
the national office and all affiliates or branch offices. Provide this 
information for all affiliates and branch offices, not just the ones 
you propose to fund through this grant.
    (5) Narrative statements addressing the Rating Factors in section 
V(B) above. Responses to the rating factors should provide HUD with 
detailed quantitative and qualitative information and relevant examples 
regarding the housing counseling work of your organization.
    For applicants applying under Category 4, narrative statements must 
address how you will meet the needs of clients residing in the Colonias 
you target. Similarly, applicants applying under Category 5 must 
describe predatory lending-related needs and corresponding activities. 
The Rating Factors below contain requests for additional information 
from applicants applying under Categories 4 and 5 (italicized).
    Applicants applying for funding under Category 5 should also 
address predatory lending needs, issues and activities, if applicable, 
in their responses to Rating Factors 1--5 while applying under 
categories 1-4 of this NOFA, to ensure that these activities are fairly 
considered for grants under Categories 1--4, in the event that an 
applicant does not receive funding under Category 5.
    Please be as specific and direct as possible. For LHCAs, responses 
to each factor must be limited to 10 double-spaced, size 12 font, 
single-sided pages. Additional submissions by LHCAs will not be read. 
These guidelines are also recommended for National and Regional 
Intermediaries and SHFAs; however, if you feel you need to include more 
information to make your case, you should feel free to do so.

VII. Corrections to Deficient Applications

    Section VIII of the General Section of the SuperNOFA provides the 
procedures for corrections to deficient applications.

VIII. Authority

    HUD's Housing Counseling Program is authorized by Section 106 of 
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x), and is 
generally governed by HUD Handbook 7610.1, REV-4, CHG-1, dated October 
27, 1997.

Appendix A

    Form HUD-9902, Fiscal Year Activity Report
BILLING CODE 4210-32-P

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
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[[Page 21263]]



Funding Availability for the Section 8 Homeownership Voucher--Housing 
Counseling Grant Program

Program Overview

    Program Purpose. This grant program supports the delivery of 
housing counseling services to potential homebuyers and homeowners 
utilizing Section 8 Homeownership Vouchers (hereafter referred to as 
Homeownership Vouchers) under HUD's Homeownership Voucher Program. The 
primary objectives of the program are to: help Homeownership Voucher 
Program participants make the transition from renting to homeownership; 
to assist them in evaluating their readiness and in making informed 
decisions; to help them meet the responsibilities of homeownership; and 
to encourage increased participation by Public Housing Agencies (PHAs) 
in HUD's Homeownership Voucher Program.
    Available Funds. $2 million in Fiscal Year 2003 Funds.
    Application Deadline. June 25, 2003.
    Match. No match is required. However, in order to receive points 
under Rating Factor 4, applicants are required to demonstrate the 
commitment of other private and public sources of funding to supplement 
HUD funding for the applicant's proposed counseling program relevant to 
the Homeownership Voucher Program.

I. Application Submission, Further Information and Technical Assistance

    Application Kits. There is no application kit. Specific application 
submission requirements are outlined in Section VI of this NOFA.
    Application Due Date. Completed applications must be submitted on 
or before June 25, 2003.
    Mailing. See the General Section of the SuperNOFA for mailing 
instructions and procedures.
    Application Submission Procedures. All applicants must submit an 
original and two copies of a complete application to `Director, Program 
Support Division, Room 9266, Office of Single Family Housing, HUD 
Headquarters, 451 Seventh Street, SW., Washington, DC 20410.' The 
envelope should be clearly marked, ``FY 2003 Homeownership Voucher--
Housing Counseling Grant Application (Category 1/2/3/4.)'' Please 
indicate the grant category for which you are applying.
    Further Information. Local housing counseling agencies (LHCAs) and 
state housing finance agencies (SHFAs) should call the Homeownership 
Center (HOC) serving their area (See Appendix B for the contact 
information for the HOCs). National and Regional Intermediaries should 
contact HUD Headquarters, Program Support Division at (202) 708-0317 
(this is not a toll-free number). Persons with hearing or speech 
impairments may access any of these numbers via TTY by calling the 
toll-free Federal Information Relay Service at 1-800-877-8339.
    Satellite Broadcast. HUD will hold an informational broadcast via 
satellite for potential applicants to learn more about the program and 
the application. For more information about the date and time of the 
broadcast, consult the HUD Web site at http://www.hud.gov/grants.

II. Amount Allocated

    Under this SuperNOFA, $37.561 million of the $39.74 million 
appropriated for Housing Counseling in FY 2003 is made available for 
eligible applicants. Specifically, $2 million is available through this 
NOFA for counseling activities occurring in conjunction with HUD's 
Homeownership Voucher Program, and $35.561 million is available for 
general counseling services through a separate NOFA found elsewhere in 
this SuperNOFA. Through that separate NOFA, up to $250,000 is available 
for counseling services that specifically target Colonias, and $2.7 
million is available for counseling services addressing predatory 
lending. An allocation of $1 million of the $39.74 million appropriated 
is available for counseling in conjunction with the Home Equity 
Conversion Mortgage (HECM) Program, as provided in section 255(k) of 
the National Housing Act (12 U.S.C. 1715z-20).
    With the balance of FY03 appropriation, and additional carry-over 
funding, an allocation of up to $4 million has been set aside for 
housing counseling support such as training and tuition assistance for 
housing counselors, or other HUD counseling initiatives and activities, 
or both.
    Grant Categories. HUD will award grants to qualified public or 
private nonprofit organizations to provide housing counseling services 
in conjunction with the Homeownership Voucher Program through four 
grant categories: (1) Local Housing Counseling Agencies (LHCA); (2) 
National Intermediaries; (3) Regional Intermediaries; and (4) State 
Housing Finance Agencies (SHFAs).
    Category 1--Local Housing Counseling Agencies (LHCAs). $750,000 is 
available from HUD to directly fund HUD-approved LHCAs.
    Award: No individual LHCA may be awarded more than $60,000.
    Category 2--National Intermediaries. $950,000 is available from HUD 
to directly fund HUD-approved national intermediaries.
    Awards for HUD-approved national intermediaries may not exceed 
$400,000. Category 3--Regional Intermediaries. $150,000 is available 
from HUD to directly fund HUD-approved regional intermediaries.
    Awards for HUD-approved regional intermediaries may not exceed 
$150,000. Category 4--State Housing Finance Agencies (SHFA). $150,000 
is available to fund SHFAs that provide housing counseling services 
directly or serve as intermediaries to affiliates who offer housing 
counseling services.
    Award: There is no cap on awards for SHFAs.

III. Program Description/Eligibility

    (A) Eligible Service Recipients. Housing counseling services funded 
under this NOFA can only be provided to Homeownership Voucher 
recipients whom a PHA has indicated are eligible to participate in the 
Homeownership Voucher Program, having met programmatic requirements and 
additional PHA eligibility requirements, if applicable, and who will 
receive the benefit of homeownership voucher assistance should they 
purchase a home.
    (B) Eligible Activities. Agencies selected as grantees and, if 
applicable, their sub-grantees, will only be reimbursed for activities 
that are eligible according to the criteria outlined in this Section.
    According to the Final Rule on the Homeownership Voucher Program 
(FR-4427-F-02), suggested topics for the PHA-required pre-assistance 
counseling program include: how to negotiate the purchase price of a 
home; how to obtain homeownership financing and loan pre-approvals, 
including a description of types of financing that may be available, 
and the pros and cons of different types of financing; alternative 
sources of mortgage credit; how to find a home, including information 
about homeownership opportunities, schools, and transportation in the 
PHA jurisdiction; advantages of purchasing a home in an area that does 
not have a high concentration of low-income families and how to locate 
homes in such areas; how to design features to provide accessibility 
for persons with disabilities; funding for modifications that will make 
housing accessible and available to clients and their family members 
with disabilities; advocating with lenders for non-traditional lending 
standards; information on fair housing, including fair housing lending 
and local fair housing enforcement agencies; information about the Real 
Estate Settlement Procedures Act (12 U.S.C.

[[Page 21264]]

2601 et seq.) (RESPA), state and federal truth-in-lending laws, and how 
to identify and avoid predatory loans with oppressive terms and 
conditions; home maintenance; budgeting and money management; and 
credit counseling.
    Counseling services can be adapted to reflect local circumstances, 
fit the pre- and ongoing post-purchase needs of the individual 
families, and fulfill specific requirements established by the PHA. The 
PHA has the discretion to require ongoing counseling for all or select 
participants in the homeownership option.
    For example, agencies may provide on-going counseling on issues 
such as home improvement and rehabilitation. This could include 
educating the client about: Their loan and grant options; the loan and/
or grant application processes; what housing codes and housing 
enforcement procedures apply for the intended activity; accessibility 
codes; visitability and universal design; non-discriminatory lending 
for persons who modify their dwellings to accommodate disabilities; how 
to identify and hire a construction contractor; how to specify and bid 
construction work; how to enter into construction contracts; and how to 
manage construction contracts, including actions to address the non-
performance of contractors.
    Additional ongoing counseling needs may include default counseling 
and loss mitigation strategies such as debt restructuring, establishing 
reinstatement plans, seeking loan forbearance, and managing household 
finances. Counselors can also help program participants that are 
victims of predatory lending, provide referrals to emergency and social 
service providers, and assist clients with locating alternative 
housing.
    All counseling must occur one-on-one. These grant funds may not be 
used for any type of group sessions or workshops. Applications 
including group sessions as proposed activities will be evaluated only 
on proposed one-on-one counseling.

    Note: For each activity you propose, you must be prepared to 
meet the needs of all individuals requesting services, including 
persons with disabilities, regardless of the complexity of the 
services involved. Additionally, services must be affirmatively 
marketed to persons with disabilities, including visual and hearing 
disabilities, as they would be to any other segment of the 
population not likely to apply for such services.

    Intermediaries and SHFAs can directly provide the housing 
counseling services described above, or distribute and administer grant 
funds and provide technical assistance and other services to 
affiliates, who are eligible to undertake any or all of the eligible 
housing counseling activities outlined above.
    Intermediaries and SHFAs have wide discretion to decide how to 
allocate their HUD Housing counseling and leveraged funding among their 
affiliates, with the understanding that a written record must be kept 
documenting and justifying funding decisions. This record must be made 
available to affiliates and to HUD. Intermediaries and SHFAs must also 
execute sub-grant agreements with their affiliates that clearly 
delineate the mutual responsibilities for program management, including 
appropriate time frames for reporting results to HUD.
    (C) Eligible Applicants. Eligible applicants are: (1) HUD-approved 
local housing counseling agencies (LHCAs); (2) HUD-approved national 
intermediaries; (3) HUD-approved regional intermediaries; and (4) state 
housing finance agencies (SHFAs.)
    HUD-approved LHCAs--Under this NOFA, HUD-approved LHCAs may apply 
for and receive a grant under Category 1 or one sub-grant from an 
Intermediary or SHFA under Categories 2, 3 and 4, but not both. HUD-
approved LHCAs that apply directly under Category 1 are prohibited from 
also applying for or receiving a sub-grant under Categories 2, 3 and 4 
of this NOFA. HUD-approved LHCAs that receive a sub-grant through an 
intermediary or SHFA under the other Housing Counseling NOFA in this 
SuperNOFA may receive a sub-grant under this NOFA with the same 
intermediary or SHFA, or they may apply directly as an LHCA.
    HUD-approved national and regional intermediaries--HUD-approved 
National and Regional Intermediaries may apply for a grant under 
Categories 2 and 3, respectively.
    SHFAs--SHFAs may only apply for grants under Category 4. Eligible 
SHFAs are entities that satisfy the definition in 24 CFR 266.5 of a 
``Housing Finance Agency.'' SHFAs and eligible sub-grantees/affiliates 
do not need HUD-approval in order to receive these funds.
    Eligible applicants under Categories 1-3 are private nonprofit and 
public organizations, including grass roots faith-based and other 
community-based organizations, that secure HUD-approval as an LHCA, or 
as a national or regional intermediary, as of the publication date of 
this SuperNOFA, and retain such approval through the term of any grant 
awarded. For information on securing HUD-approval visit HUD's Web site 
at http://www.hud.gov/offices/hsg/sfh/hcc/hccprof13.cfm.
    Additionally, to be eligible to receive a grant directly from HUD 
under this Housing Counseling NOFA, all applicants (except SHFAs) must 
be (1) duly organized and existing as a nonprofit, (2) in good standing 
under the laws of the state of its organization, and (3) authorized to 
do business in the states where it proposes to provide counseling 
services. For example, applicable state licensing, corporate filing, 
and registering requirements must be satisfied.
    An LHCA, national or regional intermediary, or SHFA may use branch 
offices to provide counseling funded through this NOFA. A branch office 
is an organizational and subordinate unit of the LHCA, intermediary, or 
SHFA, not separately incorporated or organized. LHCAs may maintain a 
main office and branch offices in no more that two states, which must 
be contiguous.
    More typically, National and Regional Intermediaries and SHFAs 
provide sub-grants to separately incorporated or organized affiliates. 
Eligible sub-grantees are not required to be HUD-approved, although 
HUD-approved LHCAs may apply to an intermediary or SHFA as a sub-
grantee. Intermediaries and SHFAs that award sub-grants to affiliates 
that are not HUD-approved must assure that said affiliates meet or 
exceed the standards, as specified in paragraph 2-1 of HUD Handbook 
7610.1, Rev-4, CHG-1, for HUD-approved LHCAs. These organizations will 
be monitored by HUD, and intermediaries that do not ensure their 
affiliates'/branches' compliance with HUD standards could be prohibited 
from participating in the program.
    To be eligible for a sub-grant under categories 2, 3 or 4, 
affiliates must not have directly applied for or received a grant under 
Category 1 of this NOFA, or another sub-grant from an Intermediary or 
SHFA under Categories 2, 3 or 4 of this NOFA.
    Additionally, to be eligible for a sub-grant, an affiliate must be 
(1) duly organized and existing as a nonprofit, (2) in good standing 
under the laws of the state of its organization, and (3) authorized to 
do business in the states where it proposes to provide counseling 
services. For example, applicable state licensing, corporate filing, 
and registering requirements must be met.
    Written Commitment to Partner. To be eligible, applicants must also 
provide a written commitment to partner from one or more PHAs with 
which it has come to an agreement to provide housing counseling to 
participants of the PHA's Homeownership Voucher Program. Intermediaries 
and SHFAs proposing to make sub-grants to affiliates or branch

[[Page 21265]]

offices must provide a separate written commitment to partner from a 
PHA for each affiliate or branch office covered by the proposal. There 
is no requirement that the PHA commit to partner with the applicant for 
the provision of all housing counseling services related to its 
Homeownership Voucher Program, although this would be acceptable.
    Written commitments to partner from PHAs do not have to be ratified 
by the PHA Board, although a formal document, such as a Memorandum of 
Understanding (MOU) between the PHA and the applicant, is acceptable. 
The written commitment to partner must, however, be on PHA letter-head, 
must specifically mention the housing counseling agency/applicant, and 
must be signed by an authorized PHA official. Moreover, the written 
commitment to partner must indicate that the PHA is exercising its 
option to implement the Homeownership Voucher Program and agrees to 
refer Homeownership Voucher participants to the applicant to fulfill 
the housing counseling requirement specified in the Homeownership 
Voucher Program regulations. The written commitment to partner must 
clearly outline: the broad roles and responsibilities of the PHA and 
the housing counseling agency applying for funding under this NOFA; the 
estimated number of Homeownership Voucher Program participants, both 
pre-purchase and ongoing, to be referred by the PHA to the counseling 
agency during the grant period October 1, 2003 to September 30, 2004; 
specific PHA requirements for ongoing counseling; and outcome goals.
    While no written commitment to partner is required from PHAs 
approved by HUD as housing counseling agencies, the PHA must estimate 
the number of voucher participants to be counseled in connection with 
the Homeownership Voucher Program, and describe the outcome goals to be 
achieved.

IV. Requirements

    Agencies selected as grantees or sub-grantees must comply with the 
following requirements:
    (A) Threshold Requirements. The requirements listed in Section V of 
the General Section of the SuperNOFA apply to this program. 
Applications will be declared ineligible for any of the following 
reasons:

--If you or any of your affiliates or branches do not meet the Civil 
Rights Threshold Requirements set forth in Section V(B) of the General 
Section of this SuperNOFA.
--If you are presently debarred, suspended, proposed for debarment, 
declared ineligible, or voluntarily excluded from covered transactions 
from any federal department or agency.
--If you are not currently approved by HUD as an LHCA or as a National 
or Regional Housing Counseling Intermediary, and if you didn't secure 
approval by the publication date of this SuperNOFA. SHFAs need only 
satisfy the definition in 24 CFR 266.5 of a ``Housing Finance Agency.''

    (B) Program Requirements. Program requirements are outlined in 
detail in HUD Handbook 7610.1, REV-4, CHG-1, dated October 27, 1997, 
which can be viewed on HUD's Web site at http://www.hud.gov/offices/
hsg/sfh/hcc/hccprof7.cfm.
    Additionally, the following also apply:
    (1) List of Agencies. Pursuant to section 106 (C)(5) of the Housing 
and Urban Development Act of 1968, HUD maintains a list of all HUD-
approved and HUD-funded counseling agencies, including contact 
information, which interested persons can access. All grantees under 
Category 1, and sub-grantees under Categories 2, 3, and 4 will be 
placed on this list and must accept subsequent referrals, or when they 
do not provide the services sought, refer the person to another agency 
in the area that does provide the services.
    (2) Accessibility--All grant recipients and sub-recipients must 
make counseling offices and services reasonably accessible to persons 
with a wide range of disabilities and help persons locate suitable 
housing in locations throughout the applicant's community, target area, 
or metropolitan area, as defined by the applicant.
    (3) All counseling services provided in conjunction with the 
Homeownership Voucher Program must be provided free of charge.
    (C) Religious Discrimination. Grant recipients and sub-recipients 
are prohibited from discriminating on behalf of or against any segment 
of the population in the provision of services or in outreach, 
including those of other religious affiliations.
    Additionally, organizations funded under this program may not 
engage in inherently religious activities, such as worship, religious 
instruction, or proselytization, as part of the programs or services 
funded under this program. If an organization conducts such activities, 
these activities must be offered separately, in time or location, from 
the programs or services funded under this part, and participation must 
be voluntary for the HUD-funded programs or services.
    (D) Code of Conduct. Entities that are subject to 24 CFR parts 84 
and 85 (most nonprofit organizations and state, local and tribal 
governments or government agencies or instrumentalities who receive 
federal awards of financial assistance) are required to develop and 
maintain a written code of conduct (See Sec. Sec.  84.42 and 
85.36(b)(3)). Consistent with regulations governing housing counseling 
programs, your code of conduct must prohibit real and apparent 
conflicts of interest that may arise among employees, officers or 
agents; prohibit the solicitation and acceptance of gifts or gratuities 
by your officers, employees and agents for their personal benefit in 
excess of minimal value; and outline administrative and disciplinary 
actions available to remedy violations of such standards. Self-recusal 
shall not eliminate a potential or apparent conflict of interest. If 
awarded assistance under this SuperNOFA, prior to entering into a grant 
agreement with HUD you will be required to submit a copy of your code 
of conduct and describe the methods you will use to ensure that all 
officers, employees and agents of your organization are aware of your 
code of conduct.
    (E) Performance Measurement. Grant recipients are required to 
complete and submit a form HUD-9902, Fiscal Year Activity Report 
(Appendix A). The information compiled from this report provides HUD 
with its primary means of measuring your program performance.
    (F) Environmental Requirements. In accordance with 24 CFR 
50.19(b)(9) and (12) of the HUD regulations, activities assisted under 
this program are categorically excluded from the requirements of the 
National Environmental Policy Act and are not subject to environmental 
review under the related laws and authorities.
    (G) Financial Management Systems. Applicants selected for funding 
must provide documentation demonstrating that the applicant's financial 
management systems satisfy the requirements in the applicable 
regulations at 24 CFR 84.21(b) and 85.20. Consistent with the 
requirements of the Single Audit Act Amendments of 1996 (31 U.S.C. 
7501-07), if the applicant expended $300,000 or more in federal awards 
in its most recent fiscal year, such documentation must include a 
certification from, or most recent audit by, the applicant's 
Independent Public Accountant that the applicant maintains internal 
controls over federal awards; complies with applicable laws, 
regulations, and contract or grant provisions; and prepares appropriate 
financial statements. The applicant will have at least thirty (30) 
calendar days to respond to this requirement. If an applicant does not 
respond within the

[[Page 21266]]

prescribed time or responds with insufficient documentation, then HUD 
may determine that the applicant has not met this requirement and may 
withdraw the grant offer.
    (H) Indirect Cost Rate. You must also submit documentation 
establishing your organization's indirect cost rate. Such documentation 
may consist of a certification from, most recent audit, or indirect 
cost rate agreement by, the cognizant federal agency or an Independent 
Public Accountant. If your organization does not have an established 
indirect cost rate, you will be required to develop and submit an 
indirect cost proposal to HUD or the cognizant federal Agency as 
applicable, for determination of an indirect cost rate that will govern 
your award. Applicants that do not have a previously established 
indirect cost rate with a federal agency shall submit an initial 
indirect cost rate proposal immediately after the applicant is advised 
that it will be offered a grant and, in no event, later than three 
months after the effective date of the grant. OMB Circular A-122 
established the requirements to determine allowable direct and indirect 
costs and the preparation of indirect cost proposals, and can be found 
at www.whitehouse.omb.gov

V. Application Selection Process

    (A) General. Applications will be evaluated competitively, and 
ranked against all other applicants that applied in the same funding 
category. All applicants will be rated and ranked in HUD Headquarters. 
The funding formula described below will be used to calculate award 
amounts.
    (B) Factors For Award Used to Rate and Rank Applications. Section 
VI(B) of the General Section of the SuperNOFA contains information on 
the rating panels used to review and score applications. The Factors 
for Award, and maximum points for each factor, are outlined below.
    These factors will be used to evaluate applications and the maximum 
number of points for each applicant is 102 points for LHCAs and 100 for 
all other applicants. LHCAs are eligible for 2 bonus points if they can 
demonstrate that at least 51% of their proposed services: (1) Will be 
provided to residents of federally designated Empowerment Zones (EZs), 
Enterprise Communities (ECs), Urban Enhanced Enterprise Communities 
(EECs), Strategic Planning Communities, or Renewal Communities (RCs); 
and (2) are certified to be consistent with the area's strategic plan. 
Section VI.C(1) of the General Section of this SuperNOFA, entitled 
``RC/EZ/EC,'' contains additional information regarding these bonus 
points.
    HUD may rely on information from performance reports, financial 
status information, monitoring reports, audit reports and other 
information available to HUD in making score determinations under any 
Rating Factor.

Rating Factor 1: Capacity--Readiness and Effectiveness (35 Points)

    HUD uses responses to this Rating Factor to evaluate the readiness 
and ability of an applicant to immediately begin the proposed work 
program, as well as the potential for an applicant to cost-effectively 
and successfully implement the proposed activities indicated in 
response to Rating Factor 3.
    (A) (6 points) Knowledge and Experience. In rating this sub-factor, 
HUD will consider the degree to which the applicant, and, if 
applicable, affiliates, has sufficient personnel with the relevant 
knowledge and experience to implement the proposed activities in a 
timely and effective fashion.
    Specifically, for LHCAs, scoring will be based on the number of 
years of recent housing counseling experience of counselors. For 
intermediaries and SHFAs, scoring will be based on: the number of years 
of recent housing counseling experience of counselors in affiliates and 
branches; and the number of years, for key intermediary / SHFA 
personnel, of recent experience running a housing counseling program 
consisting of a network of multiple counseling agencies. Related 
experience, such as experience in mortgage lending, will also be 
considered, but will not be weighted as heavily as direct housing 
counseling or housing counseling program management experience.
    Submit the names and titles of employees, including subcontractors 
and consultants, performing the activities proposed in Rating Factor 3. 
Clerical staff should not be listed. Describe each employee's, 
subcontractor's, or consultant's relevant professional background and 
experience. Experience is relevant if it corresponds directly to 
projects of a similar scale and purpose. Provide the number of years of 
experience for each position listed, and indicate when each position 
was held. Individual descriptions should be limited to one page. List 
recent and relevant trainings received.
    (B) (4 points) Section 8 Homeownership Experience. In scoring this 
section, HUD will evaluate the degree to which, as compared to other 
applicants, the applicant and partnering PHA(s) have experience working 
with HUD's Homeownership Voucher Program.
    Highlight counselors and key staff with experience related to 
counseling Homeownership Voucher families in the context of the 
homeownership option. Describe counseling activities and results 
performed in conjunction with the Homeownership Voucher Program, if 
applicable, including the number of families counseled by your agency 
that participated in Homeownership Voucher Program last year. Identify 
the sources and amount of funding used to support counseling in 
conjunction with the Homeownership Voucher Program.
    Additionally, if applicable, provide detailed information regarding 
the Homeownership Voucher Program-related experience of each PHA with 
whom you, or your affiliates or branch offices, have a written 
commitment to partner, including the number of families that 
participated in the PHA's Homeownership Voucher Program in the past 
year, and the number of current homeowners receiving voucher assistance 
to date, and other notable outcomes and information demonstrating the 
effectiveness of the existing program. If different from the applicant, 
explain what counseling agency or other organization provided the 
housing counseling related to the Program.
    (Sections C and D pertain to the applicant's performance with their 
FY01 HUD grant, the most recent complete grant year. If you received no 
FY01 HUD grant, the five points available in Section C, and the twelve 
points available in Section D will be allocated to Section E (Impact-
Leveraged Resources) for a total of 20 points.)
    (C) (5 points) Quality and Complexity of Services. In scoring this 
Section, HUD will evaluate the quality of services provided, and level 
of effort and time required to provide the housing counseling services 
(in general, not just Homeownership Voucher-related), captured in the 
form HUD-9902 for the time period October 1, 2001 to September 30, 
2002. Scoring will be based on the degree to which the applicant 
demonstrates that, for each type of counseling service delivered, and 
compared to other applicants, sufficient time and resources were 
devoted to ensure that clients received quality counseling. 
Additionally, scorers will evaluate the extent to which, as compared to 
other applicants, an agency encouraged and provided one-on-one 
counseling, which HUD views as the most effective form of housing 
counseling, instead of over-relying on homebuyer education

[[Page 21267]]

workshops and other forms of group sessions.
    Applicants should carefully document the types and complexity of 
the services provided with FY01 HUD grant funds, and the outcomes for 
clients as a result of the counseling. Describe the level of effort and 
time required to provide the housing counseling services and to meet 
the needs of your clients. Indicate the average counseling time per 
client for all types of counseling performed. Also describe follow-up 
activities, if applicable.
    Indicate the number of clients that participated only in Homebuyer 
Education workshops or other group sessions. Indicate the number of 
clients that participated in Homebuyer Education workshops or other 
group session and also received one-on-one counseling.
    (D) (12 points) Impact/Outcomes--HUD Grant. In scoring this 
Section, HUD will evaluate the applicant's, and if applicable, 
affiliates' and branches', clients served numbers and performance-
related outcomes (in general, not just Homeownership Voucher-related) 
for the grant period October 1, 2001 to September 30, 2002. Clients 
served numbers will be scored based on the quantity of clients the 
applicant was able to serve compared to similar applicants providing 
similar services. Clients served numbers will be analyzed in the 
context of budget, costs, spending decisions, the types of services 
provided, level of effort expended, etc. Outcomes will be scored based 
on how well the applicant met performance goals.
    Indicate the number of clients (in general) that you proposed to 
serve with your HUD grant in Factor 3 of your FY01 Housing Counseling 
NOFA application (submitted May 3, 2001), and compare it with the 
number attributed to the HUD grant appearing on the 9902 form submitted 
with this application, covering October 1, 2001-September 30, 2002, 
which corresponds to the FY01 application and resulting award. Explain 
any differences between goals and results, including differences in 
proposed and actual grant amounts.
    If you received no FY01 HUD grant covering October 1, 2001-
September 30, 2002, characterize your performance at meeting your goals 
regarding activities for that time period, under other sources of 
funding, such as other federal, state or local grant awards. Explain 
any differences between goals and results.
    While HUD values cost-effectiveness, we are not simply trying to 
identify and fund the lowest-cost service providers. We realize that 
costs vary depending on location and types of services provided, and 
can appreciate that strategic investments, such as investments in 
training, technology, or more qualified staff, may potentially be an 
efficient use of resources, but affect counseling volume in the short-
term.
    So HUD can evaluate your program results, provide a context for, or 
qualify, the number of clients, indicated on the form HUD-9902 
submitted with this application, that were served with your HUD-grant. 
Describe the types of counseling conducted. Indicate how location, 
counseling and client type, spending decisions, and expenses may have 
affected client volume, and, if applicable, how they will impact client 
volume in the future.
    Identify all specific uses of HUD grant funds, such as staff 
salaries, other staff costs, training, and travel expenses. Itemize the 
total costs for each use. Provide the average hourly labor rate for 
counselors. Justify your expenses and explain why they were reasonable, 
strategic, and appropriate for the counseling activities identified 
above.
    Intermediaries and SHFAs that received an FY01 HUD award for the 
grant period October 1, 2001 to September 30, 2002 must also indicate 
what percentage of their award was passed through directly to 
affiliates and branches, and explain how funds not passed through were 
spent.
    Provide the following performance outcomes for counseling 
activities covered by your FY01 HUD grant, for the grant period October 
1, 2001 to September 30, 2002:
    [sbull] The number of individuals receiving pre-purchase counseling 
that purchased a home;
    [sbull] The number of individuals receiving pre-purchase counseling 
that are working toward becoming mortgage ready;
    [sbull] The number of individuals receiving pre-purchase counseling 
that, after evaluating their unique financial situation and the costs 
of homeownership, elected not to purchase a home;
    [sbull] The number of individuals receiving default counseling that 
successfully avoided foreclosure.
    So HUD can evaluate these outcomes/results, indicate the outcome 
goals that you had set for yourself prior to the grant period, October 
1, 2001 to September 30, 2002, and characterize your performance at 
meeting those goals. Compares these outcome goals with your actual 
performance outcomes. Describe relevant market conditions and other 
circumstances that you believe affected reported outcome numbers.

    Note: The outcomes listed above correspond to the new form HUD-
9902 (appendix A), from which these outcome results will be derived 
in future NOFAs. In future NOFAs, outcomes will be evaluated based 
on the degree to which the applicant was able to meet the outcome 
estimates it provided in Factor 5 of the relevant previous 
application. In other words, applicants will be held accountable for 
fulfilling performance-related promises made in NOFA applications.

    If you received no FY01 HUD grant, provide these performance 
outcomes for counseling activities covering October 1, 2001-September 
30, 2002, under other sources of funding, such as other federal, state 
or local grant awards. Indicate how each compares with the outcome 
goals that you had set for yourself for the activity period, and 
characterize your performance at meeting outcome goals.
    (E) (3 points) Impact--Leveraged Resources. In scoring this 
Section, HUD will evaluate the applicant's non-HUD funded counseling 
activities and budget during the grant period October 1, 2001 to 
September 30, 2002. Scoring will be based on the quantity of clients 
the applicant was able to serve, compared to similar applicants 
providing similar services. Clients served numbers will be analyzed in 
the context of budget, costs, spending decisions, the types of services 
provided, level of effort expended, etc.
    Provide all the information requested in Sections C and D above, 
except outcomes, relevant to the non-HUD funded activities recorded on 
the form HUD-9902 submitted with this application.
    (F) (5 points) Performance/Grant Requirements. In scoring this 
Section, HUD will evaluate how well the applicant satisfied the 
requirements, including reporting, of their FY01 HUD housing counseling 
grant, for the grant period October 1, 2001 to September 30, 2002. If 
you did not receive a FY01 HUD grant, base your response on activities 
and requirements under other sources of funding, such as other federal, 
state or local grant awards.
    [sbull] Characterize your performance with regards to the 
timeliness and completeness with which you satisfied reporting 
requirements (such as Form HUD 9902.)
    [sbull] Also indicate whether or not you fully expended HUD and 
other grant awards during the grant period October 1, 2001 to September 
30, 2002. If not fully expended, provide an explanation as to why the 
funds were not fully expended and the steps you have taken to ensure 
that future funding will be expended in a timely manner.
    [sbull] Significant findings on biennial reviews conducted by HUD 
staff will be

[[Page 21268]]

taken into consideration when scoring this Section. Explain how you 
have taken steps to address and correct any significant findings, if 
applicable.

Rating Factor 2: Need/Extent of Problem (10 Points)

    This factor addresses the extent to which there is a demonstrated 
need for the proposed activities described in your response to Rating 
Factor 3, and the degree to which proposed activities correspond to 
Departmental policy priorities.
    (A) (3 points) Demand for Homeownership Vouchers. Provide an 
estimate by the PHA as to the volume of Homeownership Voucher Program 
participants it anticipates in general for the grant period October 1, 
2003 through September 30, 2004. Explain in detail how the estimate was 
calculated. Estimates and explanations must be provided on PHA 
letterhead and signed by an authorized PHA official.
    (B) (3 points) Local Market. Demonstrate that the local market will 
support affordable homeownership. For example, describe the income and 
wealth characteristics of Homeownership Voucher Program participants, 
such as average income as a percent of area median income, and average 
savings available for down payment, and then demonstrate the 
availability in the local market of homes affordable to these 
participants. Intermediaries and SHFAs must provide this information 
for each affiliate or branch included in their application.
    (C) (4 points) Departmental Policy Priorities. The Departmental 
policy priorities are listed in Section II of the General Section of 
the SuperNOFA. Of those listed, the following 4 apply to the Housing 
Counseling Program for the purpose of this NOFA:
    (1) Providing Increased Homeownership and Rental Opportunities for 
Low- and Moderate-Income Persons, Persons with Disabilities, the 
Elderly, Minorities, and Families with Limited English Proficiency.
    (2) Providing Full and Equal Access to Grass-Roots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation.
    (3) Colonias.
    (4) Participation of Minority Serving Institutions in HUD Programs.
    You will receive one point (up to 4 total) for each of the 
Departmental policy priorities that your work plan substantively 
addresses.

Rating Factor 3: Scope of Housing Counseling Services / Soundness of 
Approach (40 Points)

    This factor addresses the quality and effectiveness of your 
proposed housing counseling activities.
    (A) (2 points) Work Plan. In scoring this Section, HUD will 
consider whether the applicant provided all of the information 
requested.
    Describe the proposed housing counseling services and if 
applicable, intermediary activities, including training, you propose to 
undertake, and identify the geographic area your services will cover.

National and Regional Intermediaries and State Housing Finance Agencies 
must also provide the following additional information:

    (a) Identify which affiliates will receive funding through this 
grant award. Applicants unable to identify which affiliates will 
receive sub-grants must explain why this is the case and what process 
will be used to select grantees. Pursuant to the applicable regulations 
at 24 CFR 84.82(d)(3)(iii) and 85.30(d)(4), grantees must receive HUD's 
prior written approval for sub-grants.
    (b) Describe the activities of those affiliates, explicitly stating 
the types of services to be offered.
    (c) Describe your relationship with your affiliates (i.e. 
membership organization, field or branch office, subsidiary 
organization, etc.).
    (d) Explain the process that will be used to determine affiliate 
funding levels, distribute funds, and monitor affiliate performance, 
including compliance with the civil rights requirements outlined in the 
General Section of the SuperNOFA.
    (B) (5 points) Employee Allocation/Staff hours. In scoring this 
Section, HUD will evaluate whether allocated staff and staff hours are 
appropriate and sufficient to perform all proposed tasks.
    Indicate the names and titles of employees, including 
subcontractors and consultants, allocated to each proposed activity, as 
well as the corresponding staff hours for each task. Demonstrate that 
each employee's experience is related to the tasks they are to perform.
    (C) (9 points) Coordination. In scoring this Section, HUD will 
consider the extent to which the applicant can demonstrate they will 
coordinate proposed activities with other organizations, and with other 
services and products offered by the applicant's organization, in a 
manner that benefits their clients.
    Describe partnerships and efforts to coordinate proposed activities 
with other organizations, particularly lending organizations and 
nonprofit housing providers. Any written agreements or memoranda of 
understanding in place should be described and copies provided.
    National and regional intermediaries should also highlight internal 
lending operations and loan products available to clients, as well as 
internal affordable housing programs that can be a resource for 
clients.
    Describe plans to avoid conflicts of interest, such as methods for 
disclosing to participants that they are free to choose lenders, 
lending products, and homes, regardless of the recommendations made by 
counselors, and provide copies of relevant disclosure forms and 
materials.
    (D) (12 points) Quality and Complexity of Services. In scoring this 
Section, HUD will evaluate the quality of the proposed housing 
counseling services, and the level of effort and time associated with 
providing the proposed counseling services to the number of clients you 
estimate you will serve in Section E. Scoring will be based on the 
degree to which the applicant demonstrates that, for each type of 
counseling service delivered, and compared to other applicants, 
sufficient time and resources will be devoted to ensure that clients 
receive quality counseling.
    Applicants should carefully document the types and complexity of 
the services to be provided. Describe the level of effort and time you 
estimate is required to provide the proposed counseling services to, 
and meet the needs of, the number of clients you indicate in Section E 
that you will serve with the proposed grant. Estimate the average 
counseling time you, and if applicable your affiliates and branches, 
anticipate per client for all types of counseling offered. Also 
describe planned follow-up activities, if applicable.
    (E) (12 points) Efficient Use of Resources--Proposed HUD Grant 
Activities. In scoring this Section, HUD will evaluate the number of 
clients that the applicant, and if applicable, affiliates and branches, 
estimate will be served under the proposed HUD grant, for the grant 
period October 1, 2003 to September 30, 2004. Scoring will be based on 
the quantity of clients the applicant proposes to serve, compared to 
similar applicants providing similar services. Proposed clients served 
numbers will also be analyzed in the context of budget, costs, spending

[[Page 21269]]

decisions, the types of services provided, level of effort expended, 
etc.
    Indicate the number of clients you project will be served by your 
organization, or, if applicable, affiliates and branch offices, under 
the proposed HUD grant. Do not provide ranges or percentages, but a 
specific number of clients. Estimates must be consistent with the 
number of clients, indicated in the required written commitment to 
partner, that the PHA indicates will be referred to the counseling 
agency/applicant during the grant period October 1, 2003 to September 
30, 2004, or differences should be explained clearly.
    Provide a context for, or qualify the number of clients you project 
to serve with the proposed HUD grant. Indicate how location, counseling 
and client types, and expenses may affect client volume, and whether 
the impact will be short-term or long-term.
    Itemize the costs associated with each specific proposed use of 
counseling funds, such as staff salaries, other staff costs, training 
and travel expenses. Provide the average hourly-labor rate for 
counselors. Justify your proposed expenses and explain why they are 
reasonable, strategic, and appropriate for the counseling activities 
identified above.
    National and Regional Intermediaries and SHFAs must indicate what 
percentage of their proposed HUD grant will be passed through directly 
to affiliates or branches, and explain how funds not passed through 
will be spent.

Rating Factor 4: Leveraging Resources (10 Points)

    Applicants will be evaluated based on their ability to provide 
evidence that they have obtained additional resources for their housing 
counseling activities (in general, not just Homeownership Voucher 
Program-related counseling), including: Direct financial assistance; 
in-kind contributions, such as services, equipment, office space; 
labor; etc. Resources may be provided by governmental entities, public 
or private nonprofit organizations, for-profit private organizations, 
or other entities committed to providing you assistance.
    In order to obtain points under this factor, the applicant must 
demonstrate leveraging by providing letters from entities and/or 
individuals committing resources to the project that include:

--The identity of the entity or individual committing resources to the 
project.
--Dollar value of the resources to be committed.
--Types of resources to be committed.
--An indication that the resources will be available during the grant 
period pertaining to this NOFA, October 1, 2003-September 30, 2004.
--An indication that the award, or a specific portion of it, is 
intended for housing counseling.
--The signature of an official of the entity legally able to make 
commitments on behalf of the entity.
--No conditions that would nullify the commitment. (It is, however, 
acceptable for the commitment to be conditional on HUD funding.)
    Additionally, resources provided by the applicant itself, recorded 
as `applicant match' and `program income' on the form HUD-424, will 
count as leveraged resources.
    Points for this factor will be awarded based on the satisfactory 
provision of evidence of leveraging and financial sustainability, as 
described above, and the ratio of requested HUD housing counseling 
funds to total housing counseling budget. Depending on organization 
type, the following scales will be used to determine scores for this 
factor:

------------------------------------------------------------------------
                         Percentage                             Points
------------------------------------------------------------------------
                             LHCAs and SHFAs
------------------------------------------------------------------------
1-20.......................................................           10
21-35......................................................            9
36-42......................................................            8
43-50......................................................            7
51-58......................................................            6
59-65......................................................            5
66-73......................................................            4
74-80......................................................            3
81-90......................................................            2
91-99......................................................            1
------------------------------------------------------------
                  National and Regional Intermediaries
------------------------------------------------------------------------
1-10.......................................................           10
11-15......................................................            9
16-20......................................................            8
21-25......................................................            7
26-30......................................................            6
31-35......................................................            5
36-40......................................................            4
41-45......................................................            3
46-50......................................................            2
51-99......................................................            1
------------------------------------------------------------------------

Rating Factor 5: Achieving Results and Program Evaluation (5 Points)

    This factor emphasizes HUD's determination to ensure that 
applicants meet commitments made in their applications and grant 
agreements and assess their performance to realize performance goals, 
and reflects HUD's goal to embrace high standards of ethics, management 
and accountability.
    The purpose of this factor is for the applicant to identify program 
outputs and outcomes that will allow you and HUD to measure actual 
achievements against anticipated achievements. Outputs and outcomes 
must be objectively quantifiable.
    Submission Requirements for Factor 5. Applicants must submit an 
effective, quantifiable, outcome-oriented evaluation plan for measuring 
performance and determining that output and outcome goals have been 
met. You must submit a program evaluation plan that demonstrates how 
you will measure your own program performance. Your Evaluation Plan 
should identify what you are going to measure, how you are going to 
measure it, and the steps you have in place to make adjustments to your 
work plan if performance targets are not met within established 
timeframes. Specifically, your plan must identify:

--Outputs. Outputs are the direct products of your program's activities 
that lead to the ultimate achievement of outcomes. Examples of outputs 
are the number of individual counseling sessions, and the number of 
group sessions to be provided. Identify interim and full grant term 
outputs, and timeframes for accomplishing these goals. Your plan must 
show how you will measure actual accomplishments against anticipated 
achievements.
--Work Plan Adjustments. Describe steps in place to make adjustments to 
your work plan if outputs are not met within established timeframes or 
if you begin to fall short of established outputs and timeframes. 
Intermediaries and SHFAs should indicate if and how the performance of 
affiliates and branch offices affects current and future sub-grant 
allocations.
--Outcomes. Outcomes are benefits accruing to the families as a result 
of participation in the program. Outcomes are performance indicators 
you expect to achieve or goals you hope to meet over the term of your 
proposed grant. In scoring this Section, HUD will consider the 
appropriateness of the proposed outcomes given the proposed HUD award 
and past performance, and evaluate proposed outcomes in comparison to 
similar applicants. For the period October 1, 2003-September 30, 2004, 
provide the following anticipated outcomes for clients as a result of 
the proposed grant:

    [sbull] The number of individuals receiving pre-purchase counseling 
that will purchase a home
    [sbull] The number of individuals receiving pre-purchase counseling 
that

[[Page 21270]]

are working toward becoming mortgage ready
    [sbull] The number of individuals receiving pre-purchase counseling 
that, after evaluating their unique financial situation and the costs 
of homeownership, will elect not to purchase a home
    [sbull] The number of individuals receiving default counseling that 
will successfully avoid foreclosure
    (These specific outcomes correspond to the new form HUD-9902. The 
proposed outcomes you provide will be compared with the results 
captured in the HUD-9902 you submit in the FY05 NOFA, should you apply, 
to evaluate the impact you were able to achieve with this award, and 
the degree to which you were able to meet or exceed your proposed 
outcomes.)
--Information Collection. Describe your strategy for following-up with 
clients and collecting outcome information.

    (C) Funding Methodology. Only applicants scoring 75 points or above 
are eligible for funding under Categories 1, 2, 3, and 4. However, 
because of the limited amount of funds available in relation to the 
potential number of applicants, all applicants scoring 75 points or 
above are not guaranteed funding, as described below.
    All LHCAs will be ranked against each other nationally. Up to the 
top 30 scoring applicants nationwide with scores of 75 points or above 
will receive a base award of $15,000. The total number of applicants 
receiving the base award will be multiplied by $15,000 and that amount 
will be subtracted from the total amount available under the category. 
Then, the remaining balance ($300,000 if 30 applicants score 75 points 
or above) will be divided by the total number of points each of those 
30 applicants scores that are above the 75 point cutoff. The division 
will result in a dollar value for each point. The number of points that 
each applicant scores above the 75 point threshold will be multiplied 
by that dollar value. The result of that multiplication will be added 
to the $15,000 base for the total award amount.
    All National Intermediaries will be ranked against each other. Up 
to the top 4 scoring applicants with scores of 75 points or above will 
receive a base award of $150,000. The total number of applicants 
receiving the base award will be multiplied by $150,000 and that amount 
will be subtracted from the total amount available under the category. 
The remaining balance ($350,000 if 4 national intermediaries score 75 
points or above) will be divided by the total number of points each of 
those 4 agencies scores that are above the 75-point cutoff. The 
division will result in a dollar value for each point. The number of 
points that each applicant scores above the 75 point threshold will be 
multiplied by that dollar value. The result of that multiplication will 
be added to the $150,000 base for the total award amount.
    All Regional Intermediaries will be ranked against each other. Up 
to the top 2 scoring applicants with scores of 75 points or above will 
receive a base award of $60,000. The total number of applicants 
receiving a base award will be multiplied by $60,000 and that amount 
will be subtracted from the total amount available under the category. 
Then, the remaining balance ($30,000 if 2 regional intermediaries score 
75 points or above) will be divided by the total number of points each 
of those 2 agencies scores that are above the 75-point cutoff. The 
division will result in a dollar value for each point. The number of 
points that each applicant scores above the 75 point threshold will be 
multiplied by that dollar value. The result of that multiplication will 
be added to the $60,000 base for the total award amount.
    All SHFAs will be ranked against each other nationally. Up to the 
top 5 scoring applicants with scores of 75 points or above will receive 
a base award of $20,000. The total number of applicants receiving a 
base award will be multiplied by $20,000 and that amount will be 
subtracted from the total amount available under the category. The 
remaining balance ($50,000 if 5 SHFAs score 75 points or above) will be 
divided by the total number of points each of those applicants scores 
that are above the 75 point cutoff. The division will result in a 
dollar value for each point. The number of points that each applicant 
scores above the 75 point threshold will be multiplied by that dollar 
value. The result of that multiplication will be added to the $20,000 
base for the total award amount.
    All grantees will receive the lower of either the award amount 
determined with the formula, or the amount actually requested by the 
applicant.
    (D) Reallocation of Unspent Funds. If funds designated for a 
specific grant Category remain unspent after the formula has been run 
and award recommendations determined, HUD may reallocate those funds to 
any other funding category in this NOFA, at its discretion, or may 
reallocate those funds to any category under the general Housing 
Counseling NOFA also issued with this SuperNOFA. Additionally, HUD may 
reallocate unspent funds for housing counseling support activities.
    (E) Applicant Debriefing. Applicants interested in a debriefing 
should consult the instructions in section XI(A)(4) of the General 
Section of the SuperNOFA. Requests should be submitted to the person or 
organization to which you were instructed, in section VI of this NOFA, 
to submit your application.
    (F) Grant Period. Funds awarded shall be available for a period of 
twelve (12) calendar months. Applicants selected for award must receive 
prior HUD approval to incur costs prior to the date of the grant 
agreement. Grantees may incur pre-award costs ninety (90) calendar days 
prior to the effective date of the grant agreement. All pre-award costs 
are incurred at the applicant's risk and HUD has no obligation to 
reimburse such costs if the award is inadequate to cover such costs or 
the award offer is withdrawn because of the applicant's failure to 
satisfy the requirements of this NOFA.
    (G) Award Instrument. HUD expects to use a grant agreement, but it 
reserves the right to use the award instrument it determines to be most 
appropriate. All Housing Counseling Program awards shall be made on a 
cost reimbursement basis in accordance with the requirements in OMB 
Circular A-87, Cost Principles for State and Local Governments and 
Indian Tribal Governments; or OMB Circular A-122, Cost Principles for 
Non-Profit Organizations, as applicable to your organization; and the 
administrative requirements established in OMB Circular A-102, which 
was implemented by 24 CFR part 85 (Administrative Requirements for 
Grants and Cooperative Agreements to State, Local and federally 
recognized Indian tribal governments); OMB Circular A-110, which was 
implemented by 24 CFR part 84 (Grants and Agreements with Institutions 
of Higher Education, Hospitals and Other Non-Profit Organizations); and 
OMB Circular A-133 which was implemented by 24 CFR parts 84 and 85. If 
you receive an award you are also required to ensure that any sub-
recipients also comply with the above requirements. OMB circulars can 
be found at: http://www.whitehouse.gov/omb/.

VI. Application Submission

    In addition to reviewing the instructions below, all applicants 
should consult the General Section of this SuperNOFA and review the 
procedures that affect application submission.
    Application. Because applications will be handled by various staff 
members, they must be bound or secured in a binder, and tabbed. Use the

[[Page 21271]]

checklist below to organize your application. Unless indicated below, 
all applicants must submit the following:
    (1) The standard forms, certifications, and assurances listed in 
Section V(H) of the General Section of the SuperNOFA (collectively, 
referred to as the ``standard forms'').
    (2) HUD-approval / Statutory Authority. Each applicant is required 
to submit a copy of their most recent approval letter or certificate of 
approval as a housing counseling agency from HUD, unless the applicant 
is a SHFA that satisfies the definition of a `Housing Finance Agency' 
in 24 CFR 266.5. SHFAs must submit evidence of their statutory 
authority to operate as a SHFA, and apply for, and use, any funds 
awarded.
    (3) Written Commitment to Partner. Provide a copy of a written 
commitment to partner from each PHA with which you or your affiliates 
and branches have entered into an agreement, as described in Section 
III of this NOFA.
    (4) Form HUD-9902, Housing Counseling Agency Fiscal Year Activity 
Report, for fiscal year October 1, 2001 through September 30, 2002. In 
the space provided on the form, indicate the amount of the FY01 HUD 
grant you received that corresponds with this data. If you did not 
participate in HUD's Housing Counseling Program during the period 
October 1, 2001 through September 30, 2002, this report should be 
completed to reflect your counseling workload and budget during that 
period. A copy of this form is included in Appendix A of this NOFA.
    (5) National and Regional Intermediaries must provide a list of, 
and certify to, the states in which they maintain offices, including 
the national office and all affiliates or branch offices.
    (6) Narrative statements addressing the Rating Factors in section 
V(B) above. Responses to the rating factors should provide HUD with 
detailed quantitative and qualitative information and relevant examples 
regarding the housing counseling work of your organization.
    Please be as specific and direct as possible. For LHCAs, responses 
to each factor must be limited to 10 double-spaced, size 12 font, 
single-sided pages. Additional submissions by LHCAs will not be read. 
These guidelines are also recommended for National and Regional 
Intermediaries and SHFAs, however, if you feel you need to include more 
information to make your case, you should feel free to do so.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications. Applications will be declared 
ineligible for any of the following reasons:

--If you do not meet the Civil Rights Threshold Requirements set forth 
in section V(B) of the General Section of this SuperNOFA.
--If you are presently debarred, suspended, proposed for debarment, 
declared ineligible, or voluntarily excluded from covered transactions 
from any federal department or agency.

VIII. Authority

    HUD's Housing Counseling Program is authorized by Section 106 of 
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x), and is 
generally governed by HUD Handbook 7610.1, REV-4, CHG-1, dated October 
27, 1997.
    The Homeownership Voucher Program and the Section 8 Homeownership 
Program refer to the homeownership option in the Housing Choice Voucher 
Program. The homeownership option is authorized by section 8(y) of the 
United States Housing Act of 1937, as amended by section 555 of the 
Quality Housing and Work Responsibility Act of 1998. The implementing 
regulations are found at 24 CFR 982.625 through 24 CFR 982.642.

Appendix A--Form HUD-9902, Fiscal Year Activity Report

BILLING CODE 4210-32-P

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21281]]



Funding Availability for the Lead-Based Paint Hazard Control Grant 
Program

PROGRAM OVERVIEW

    Purpose of the Program. The purpose of the Lead-Based Paint Hazard 
Control Grant Program is to assist States, Native American Tribes and 
local governments in undertaking comprehensive programs to identify and 
control lead-based paint hazards in eligible privately owned housing 
for rental or owner-occupants in partnership with nonprofit 
organizations including grassroots faith-based and other community-
based organizations.
    Available Funds. Approximately $96 million in Fiscal Year 2003 and 
approximately $7 million in previous year recaptured funds.
    Eligible Applicants. States, Native American Tribes or local 
governments. If you are a State or Tribal applicant, you must have a 
Lead-Based Paint Contractor Certification and Accreditation Program 
authorized by the Environmental Protection Agency (EPA).
    Application Deadline. You, the applicant, must submit a completed 
application to HUD on or before the respective program's application 
due date. The application deadline is June 10, 2003
    Match. A statutory minimum of 10% match in local funds.

ADDITIONAL INFORMATION

Application and Submission Procedures

    (1) Application Submission. See the General Section of this 
SuperNOFA for specific procedures concerning the form of application 
submission (e.g., mailed applications, express mail or overnight 
delivery). Be advised that there is no Application Kit for this year's 
Lead-Based Paint Hazard Control Grant Program. All the information 
required to submit an application is contained in this Notice of 
Funding Availability (NOFA).
    (2) Addresses. You, the applicant, must submit a complete 
application to: Department of Housing and Urban Development, Office of 
Healthy Homes and Lead Hazard Control, Attn: Lead Hazard Control Grant 
Program, 451 Seventh Street, SW, Room P3206, Washington, DC 20410.
    For Further Information and Technical Assistance: You may contact 
Matthew E. Ammon, Director, Lead Hazard Control Grants Division, Office 
of Healthy Homes and Lead Hazard Control, at the address above; 
telephone (202) 755-1785, extension 158 (this is not a toll-free 
number). If you are a hearing-or speech-impaired person, you may reach 
the above telephone numbers via TTY by calling the toll-free Federal 
Information Relay Service at 1-800-877-8339.

I. Authority, Funding Amounts, and Amount of Funds Allocated

    (A) Authority. The Lead-Based Paint Hazard Control Program is 
authorized by Section 1011 of the Residential Lead-Based Paint Hazard 
Reduction Act of 1992 (Title X of the Housing and Community Development 
Act of 1992). HUD's authority for making funding available under this 
NOFA is the Consolidated Appropriations Resolution of 2003, Public Law 
108-7, approved February 20, 2003.
    (B) Funding Available and Eligibility. Approximately $96 million in 
Fiscal Year 2003 and approximately $7 million in previous year 
recaptured funds will be available for the Lead-Based Paint Hazard 
Control Grant Program. The maximum award amount shall be $3 million per 
grant. Approximately 30 to 40 grants will be awarded. New applicants or 
those previously funded lead-based paint hazard control grantee 
applicants whose period of performance ended prior to the application 
deadline date will be evaluated and scored as a separate group and will 
not be in direct competition with applications from current grantee 
applicants that are eligible for a Performance-Based Renewal to their 
existing grant. A maximum of 35 percent of the funds will be made 
available to applicants eligible for a Performance-Based Renewal. The 
project duration shall be 42 months for new grant recipients and 36 
months for Performance-Based Renewal grantees. HUD reserves the right 
to approve no-cost time extensions for a period not to exceed 24 
months. For new applicants, a minimum score of 75 is required for award 
consideration. Current grantees with active grants at the application 
deadline date must meet specific performance criteria in their current 
grant to be eligible for a Performance-Based Renewal. Current grantees 
eligible for a Performance-Based Renewal must meet or exceed the 
specific work plan performance benchmark goals and objectives outlined 
below for the period ending March 31, 2003 to be eligible to receive up 
to $3 million to continue grant program activities for an additional 36 
months after their current period of performance ends. Current grantees 
that do not meet the performance criteria below are not eligible to 
submit an application under this NOFA. Current grantees with active 
grants at the application deadline date funded under the Fiscal Year 
1998 Lead-Based Paint Hazard Control Grant Program NOFA published in 
the Federal Register (FR) March 31, 1998 and grantees funded under the 
Fiscal Year 2002 Lead-Based Paint Hazard Control Grant Program NOFA 
published in the Federal Register (FR) March 26, 2002 are not eligible 
to apply.

             Performance-Based Renewal Eligibility Criteria
                   [For period ending March 31, 2003]
------------------------------------------------------------------------
                                                              Percentage
                                                              of federal
                                                                funds
                                                 Percentage   reimbursed
                                                  of units   through the
                  FY                     Round    completed    line of
                                                     and        credit
                                                   cleared     control
                                                                system
                                                               (LOCCS)
------------------------------------------------------------------------
1999..................................        7          80           55
2000..................................        8          65           45
2001..................................        9          50           35
------------------------------------------------------------------------

    By achieving the above-referenced level of performance, current 
grantees have demonstrated a clear competitive basis for eligibility in 
receiving additional funds without the need to submit a full 
application in response to the NOFA. The Performance-Based Renewal 
category reflects the intention of the Lead Hazard Control Grant 
Program to move towards more competitive performance-based awards. 
Applicants eligible to submit a Performance-Based Renewal will be 
required to submit a Total Budget (Federal Share and Matching), a work 
plan strategy with specific, measurable, and realistic benchmark 
performance objectives and any supporting materials prescribed in the 
NOFA for the entire Performance-Based Renewal period of performance. In 
addition, grantees awarded grant funds under this category will be 
required to meet the terms and conditions of their current grant 
agreement and any additional applicable requirements under this NOFA 
and subsequent grant agreement modification. HUD may terminate awards 
to grantees that fail to meet established milestones or benchmark 
performance standards established by this NOFA or the Award Agreement.

II. Eligible Applicants and Activities

    (A) Program Description. The Lead-Based Paint Hazard Control Grant 
Program assists States, Native American Tribes and local governments in 
undertaking programs for the identification and control of lead-based 
paint hazards in eligible privately-owned rental and owner-occupied

[[Page 21282]]

housing units. Appendix B (Eligibility of HUD Assisted Housing) lists 
the HUD-associated housing programs that meet the definition of 
eligible housing under this program.
    (1) Because lead-based paint is a national problem, these funds 
will be awarded to programs which:
    (a) Maximize the combination of children protected from lead 
poisoning and housing units where lead-hazards are controlled;
    (b) Target lead hazard control efforts at housing in which children 
are at greatest risk of lead poisoning;
    (c) Stimulate cost-effective approaches that can be replicated;
    (d) Emphasize lower cost methods of hazard control;
    (e) Build local capacity to safely and effectively address lead 
hazards during lead hazard control, renovation, remodeling, and 
maintenance activities; and
    (f) Affirmatively further fair housing and environmental justice.
    (2) The objectives of this program include:
    (a) Implementation of a national strategy, as defined in Title X of 
the Housing and
    Community Development Act of 1992 (42 U.S.C. 4851 et seq.) (Title 
X), to build the community's capacity necessary to eliminate lead-based 
paint hazards in housing, as widely and quickly as possible by 
establishing a workable framework for lead-based paint hazard 
identification and control;
    (b) Mobilization of public and private resources, involving 
cooperation among all levels of government, the private sector, and 
grassroots faith-based and other community-based organizations to 
develop cost-effective methods for identifying and controlling lead-
based paint hazards;
    (c) Development of comprehensive community approaches which result 
in integration of all community resources (governmental, grassroots 
faith-based and other community-based, and private businesses) to 
address lead hazards in housing;
    (d) Integration of lead-safe work practices into housing 
maintenance, repair, weatherization, rehabilitation, and other programs 
that will continue after the grant period ends;
    (e) Establishment of a public registry (listing) of lead-safe 
housing or inclusion of the lead-safe status of properties in another 
publicly accessible address-based property information system and 
affirmatively marketed to families with young children; and
    (f) To the greatest extent feasible, promotion of job training, 
employment, and other economic opportunities for low-income and 
minority residents and businesses that are owned by and/or employ low-
income and minority residents as defined in 24 CFR 135.5 (see 59 FR 
33881, June 30, 1994).
    (B) Eligible Applicants.
    (1) To be eligible to apply for funding under this program, the 
applicant must be a State, Indian Tribe, or unit of local government. 
Multiple units of a local government (or multiple local governments) 
may apply as part of a consortium; however, you must identify a lead 
applicant that will be responsible for ensuring compliance with all 
requirements specified in this NOFA. You may submit only one 
application. In the event that multiple applications are submitted, 
this will be considered a curable (minor) defect and the application 
review process delayed until you notify HUD in writing which 
application should be reviewed. Your other applications will be 
returned unevaluated (see Section VIII of the General Section of this 
SuperNOFA).
    (2) Threshold Requirements. As an applicant, you must meet all of 
the threshold requirements of the General Section of this SuperNOFA 
(Section V (B)) as well as any specific threshold requirements for 
applicants under the Lead Hazard Control Grant Program. Applications 
will not be rated or ranked if they do not meet the threshold 
requirements.
    (3) Consolidated Plans. (This requirement does not apply to Native 
American Tribes.)
    (a) If your jurisdiction has a current HUD-approved Consolidated 
Plan, you must submit, as an appendix, a copy of the lead-based paint 
element included in the approved Consolidated Plan.
    (b) If your jurisdiction does not have a currently approved 
Consolidated Plan, but it is otherwise eligible for this grant program, 
you must include your jurisdiction's abbreviated Consolidated Plan, 
which includes a lead-based paint hazard control strategy developed in 
accordance with 24 CFR 91.235.
    (4) Contracts or other formal arrangements with nonprofit 
grassroots faith-based and other community-based organizations. If 
selected for funding, local and State applicants must enter into 
contractual relationships or other formal arrangements with grassroots 
faith-based and other community-based organizations. Such relationships 
must be established prior to actual execution of the grant agreement. 
This requirement does not apply to Native American Tribes.
    (5) EPA Authorization. If you are a State government or Indian 
(Native American) Tribal government, you must have an EPA-authorized 
Lead-Based Paint Training and Certification Program in effect on the 
application deadline date to be eligible to apply for Lead Hazard 
Control Grant funds. The approval date in the Federal Register notice 
published by the EPA will be used in determining the Training and 
Certification status of the applicant State or Indian (Native American) 
Tribal government.
    (6) Current grantees with active grants at the application deadline 
date must meet specific performance criteria in their most recent grant 
to be eligible for a Performance-Based Renewal Grant. Current grantees 
that do not meet the performance criteria in Section II (B) for the 
period ending March 31, 2003 are not eligible for a Performance-Based 
Renewal grant. Current grantees funded under the Fiscal Year 1998 Lead-
Based Paint Hazard Control Grant Program published in the Federal 
Register (FR) March 31, 1998 or funded under the Fiscal Year 2002 Lead-
Based Paint Hazard Control Grant Program NOFA published in the Federal 
Register (FR) March 26, 2002 are not eligible to apply.
    (7) The eligibility factors discussed in paragraphs (1) through (6) 
above are threshold requirements. If you do not satisfy the appropriate 
eligibility requirements stated in these paragraphs, HUD will not 
review your application.
    (C) Eligible Activities. HUD is interested in promoting lead hazard 
control approaches that result in the reduction of this health threat 
for the maximum number of low-income families with children under six 
years of age, for the longest period of time, and that demonstrate 
techniques which are cost-effective, efficient, and replicable 
elsewhere. Activities must be conducted in compliance with HUD's Lead-
Safe Housing Regulation, 24 CFR part 35, and with any applicable 
requirements of a Training and Certification Program that has been 
authorized by the EPA under the requirements of 40 CFR 745.320. Copies 
of HUD's Lead-Safe Housing Regulation, and the companion publication 
``Interpretive Guidance: The HUD Regulation on Controlling Lead-Based 
Paint Hazards in Housing Receiving Federal Assistance and Federally 
Owned Housing Being Sold,'' are available from the National Lead 
Information Clearinghouse at 1-800-424-LEAD (this is a toll-free 
number). If you are a hearing- or speech-impaired person, you may reach 
the telephone number via TTY by calling the toll-free Federal 
Information Relay Service at 1-800-877-8339. Copies are also available 
from the Office of Healthy Homes and Lead Hazard Control website at: 
www.hud.gov/offices/lead.

[[Page 21283]]

    (1) Direct Project Elements that you may undertake directly or 
through sub-recipients, include:
    (a) Performing dust testing, inspections, and risk assessments of 
eligible housing units constructed prior to 1978 to determine the 
presence of lead-based paint and/or lead hazards from paint, dust, or 
soil through the use of acceptable testing procedures. All test results 
must be provided to the owner of the unit, together with a notice 
describing the owner's legal duty to disclose the results to tenants 
and buyers.
    (b) Conducting required pre-hazard control blood lead testing of 
children under the age of six years of age residing in units undergoing 
lead paint inspection/ risk assessment, or hazard control, unless 
reimbursable from Medicaid or another source.
    (c) Conducting lead hazard control activities that may include any 
combination of the following:
    (i) Interim control of lead-based paint hazards in housing (that 
must include specialized cleaning techniques to address lead dust);
    (ii) Abatement. The complete abatement of all lead-based paint 
hazards or lead-contaminated soil in a unit or structure is acceptable. 
Abatement of lead-contaminated soil should be limited to areas with 
bare soil in the immediate vicinity of the structure, i.e. dripline or 
foundation of the unit being treated, and children's play areas. 
Abatement of all lead based paint is only acceptable in limited 
circumstances with prior HUD approval.
    All lead hazards identified in a housing unit enrolled in the lead 
hazard control grant program must be controlled or eliminated by any 
combination of these strategies.
    (d) Carrying out relocation of families and individuals during the 
period in which hazard control is conducted and until the time the 
affected unit receives clearance for reoccupancy.
    (e) Performing blood lead testing and air sampling to protect the 
health of the hazard control workers, supervisors, and contractors.
    (f) Undertaking minimal housing rehabilitation activities that are 
specifically required to carry out effective hazard control, and 
without which the hazard control could not be completed and maintained. 
These grant funds may be used for lead hazard control work done in 
conjunction with other housing rehabilitation programs. HUD strongly 
encourages integration of this grant program with housing 
rehabilitation, maintenance, weatherization, and other energy 
conservation activities.
    (g) Conducting clearance dust-wipe testing and laboratory analysis 
(laboratory must be recognized by the National Lead Laboratory 
Accreditation Program (NLLAP) as being capable of performing lead 
analyses of samples of paint, dust-wipes, and/or soil).
    (h) Engineering and architectural activities that are required for, 
and in direct support of, lead hazard control.
    (i) Providing resources to build capacity for lead-safe housing and 
lead hazard control, including free delivery of HUD-approved lead-safe 
work practices training courses for housing rehabilitation contractors, 
rehabilitation workers, homeowners, renters, painters, remodelers, 
maintenance staff, and others conducting renovation, rehabilitation, 
maintenance or other work in private housing; free delivery of lead 
sampling technician training, lead-based paint worker or contractor 
certification training; and subsidies for licensing or certification 
fees to low-income persons seeking credentials as lead-based paint 
workers or contractors or lead sampling technicians.
    (j) Providing instruction, training, and material supplies for dust 
control activities to grassroots faith-based and other community-based 
organizations, parent organizations, homeowners, and renters in low-
income private housing.
    (k) Conducting planning, coordination, and training activities to 
comply with HUD's Lead-Safe Housing Regulation (24 CFR Part 35) that 
became effective on September 15, 2000. These activities should support 
the expansion of a workforce properly trained in lead-safe work 
practices which is available to conduct interim controls on HUD 
assisted housing covered by these regulations. The regulation and 
interpretive guidance about the rule are available from the National 
Lead Information Center at 1-800-424-LEAD (this is a toll-free number). 
If you are a hearing-or speech-impaired person, you may reach the 
telephone number via TTY by calling the toll-free Federal Information 
Relay Service at 1-800-877-8339. Copies are also available from the HUD 
website at: www.hud.gov
    (l) Conducting general or targeted community awareness, education 
or outreach programs on lead hazard control and lead poisoning 
prevention designed to increase the ability of the program to deliver 
lead hazard control services including educating owners of rental 
properties, tenants, and others on the Residential Lead-Based Paint 
Hazard Reduction Act, Lead-Safe Housing Regulation, and applicable 
provisions of the Fair Housing Act, and offering educational materials 
in languages other than English, when needed, and providing training on 
lead-safe maintenance and renovation practices and management. Upon 
request, this also would include making all materials available in 
alternative formats to persons with disabilities (e.g., Braille, audio, 
large type).
    (m) Procuring liability insurance for lead-hazard control 
activities.
    (n) Supporting data collection, analysis, and evaluation of grant 
program activities. This includes compiling and delivering such 
information and data as may be required by HUD. This activity is 
separate from administrative costs.
    (o) Participating in applied research, studies, or developing 
information systems to enhance the delivery, analysis, or conduct of 
lead hazard control activities, or to facilitate targeting and 
consolidating resources to further childhood lead poisoning prevention 
efforts.
    (p) Purchasing or leasing equipment having a per unit cost under 
$5,000.
    (q) Purchasing or leasing no more than two (2) X-ray fluorescence 
analyzers for use by the Lead-Based Paint Hazard Control Grant Program, 
if not already available.
    (r) Preparing a final report at the conclusion of grant activities.
    (2) Support Elements.
    (a) Administrative costs. There is a 10% maximum for administrative 
costs. Specific information on administrative costs is included in 
Appendix B.
    (b) Program planning and management costs of sub-grantees and other 
sub-recipients.
    (D) Ineligible Activities. You may not use grant funds for:
    (1) Purchase of real property.
    (2) Purchase or lease of equipment having a per unit cost in excess 
of $5,000, except for the purchase of X-ray fluorescence analyzers.
    (3) Chelation or other medical treatment costs related to children 
with elevated blood lead levels. Non-federal funds used to cover these 
costs may be counted as part of the required matching contribution.
    (4) Lead hazard control activities in publicly owned housing, or 
project-based Section 8 housing (This housing stock is not eligible 
under Section 1011 of the Lead-Based Paint Hazard Reduction Act, but 
other funds are available).

III. Requirements

    (A) Threshold Requirements. In addition to the requirements listed 
in Section V. of the General Section of this SuperNOFA, the applicant 
must comply with the following:
    (1) Matching Contribution. You must provide a matching contribution 
of at

[[Page 21284]]

least 10% of the requested grant sum. This may be in the form of cash, 
including private sector funding, or in-kind (non-cash) contributions 
or a combination of these sources. With the exception of Community 
Development Block Grant (CDBG) funds, Federal Revenue Sharing programs, 
or other programs which by statute allow their funds to be considered 
local funds and therefore eligible to be used as matching funds, 
Federal funds may not be used to satisfy the statutorily required 10% 
matching requirement. Federal funds may be used, however, for 
contributions above the statutory requirement. If an applicant does not 
include the minimum ten percent match in the application, it will be 
considered a curable (correctable) technical deficiency (see Section 
VIII, Corrections to Deficient Applications in the General Section of 
this SuperNOFA for the specific details on how to correct this 
technical deficiency).
    (B) Program Requirements. In addition to the threshold 
requirements, the applicant must also comply with the following:
    (1) Work Activities. Conformance of proposed plans to Federal and 
State policies for Lead-Based Paint Hazard Control. All lead hazard 
control activities must be conducted in compliance with the applicable 
requirements of HUD's Lead-Safe Housing Regulation, 24 CFR Part 35, and 
as clarified in HUD's Interpretive Guidance about the rule. Activities 
must also comply with any additional requirements in effect under a 
State or Tribal Lead-Based Paint Training and Certification Program 
that has been authorized by the EPA pursuant to 40 CFR 745.320.
    (2) Direct Lead Hazard Identification and Control Activities. The 
budget proposed must show a minimum of 60 percent of the total Federal 
amount requested identified for direct lead hazard control activities. 
Direct lead hazard control activities consist of dust testing, lead 
paint inspections, risk assessments, lead hazard control services, and 
clearance examinations. Direct hazard control activities do not include 
relocation, blood lead testing of residents or workers, housing 
rehabilitation, training, community education, applied research, 
purchase of supplies or equipment, or administrative costs.
    (3) Lead-Safe Work Practice Training Activities. For most 
applicants, at least two percent of the total Federal amount in the 
budget proposal will be necessary to promote the expansion of a 
workforce properly trained in lead-safe work practices and which is 
available to conduct interim controls and/or lead hazard abatement as 
well as follow lead-safe work practices while performing work on HUD 
assisted housing units per the provisions of the HUD Lead-Safe Housing 
Regulation 24 CFR part 35(1330(a)(4)(iii)(v), and to safely repair, 
rehabilitate, and maintain other privately-owned residential property. 
Any applicant that proposes to use less than two percent of the total 
Federal amount for this purpose shall present evidence that there is 
currently in place a workforce that is sufficient in size and is 
properly trained to carry out the work under the Lead Hazard Control 
grant and the HUD Lead-Safe Housing Regulation.
    (C) Administrative Costs. There is a 10% maximum for administrative 
costs as specified in Section 1011 (j) of the Residential Lead-Based 
Paint Hazard Reduction Act of 1992 (Title X of the Housing and 
Community Development Act of 1992, Public Law 102-550). Additional 
information about allowable administrative costs is provided in 
Appendix B of this NOFA.
    (D) Period of Performance. The period of performance is 42 months 
for new or prior grantee applicants. The period of performance for 
current grantee applicants eligible for a Performance-Based Renewal is 
36 months. HUD reserves the right to approve no cost time extensions 
for a period not to exceed 24 months.
    (E) Certified and Trained Performers. Funded activities must be 
conducted by persons qualified for the activities according to 24 CFR 
part 35 (possessing certification as abatement contractors, risk 
assessors, inspectors, abatement workers, or sampling technicians, or 
others having been trained in a HUD-approved course in lead-safe work 
practices).
    (F) Coastal Barrier Resources Act. Pursuant to the Coastal Barrier 
Resources Act (16 U.S.C. 3501), you may not use these grant funds for 
properties located in the Coastal Barrier Resources System.
    (G) Flood Disaster Protection Act. Under the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128), you may not use these 
grant funds for lead-based paint hazard control of a building or 
manufactured home that is located in an area identified by the Federal 
Emergency Management Agency (FEMA) as having special flood hazards 
unless:
    (1) The community in which the area is situated is participating in 
the National Flood Insurance Program in accordance with the applicable 
regulations (44 CFR parts 59-79), or less than a year has passed since 
FEMA notification regarding these hazards; and
    (2) Where the community is participating in the National Flood 
Insurance Program, flood insurance on the property is obtained in 
accordance with section 102(a) of the Flood Disaster Protection Act (42 
U.S.C. 4012a(a)). You are responsible for assuring that flood insurance 
is obtained and maintained for the appropriate amount and term.
    (H) National Historic Preservation Act. The National Historic 
Preservation Act of 1966 (16 U.S.C. 470) and the regulations at 36 CFR 
part 800 apply to the lead-based paint hazard control activities that 
are undertaken pursuant to this program. HUD and the Advisory Council 
for Historic Preservation have developed an optional Model Agreement 
for use by grantees and State Historic Preservation Officers in 
carrying out activities under this program. The Model Agreement may be 
obtained from the HUD Web site at: www.hud.gov/utilities/
intercept.cfm?/offices/lead/grantfrm/pgi/95--06.pdf.
    (I) Waste Disposal. You must handle waste disposal according to the 
requirements of the appropriate local, State and Federal regulatory 
agencies. You must handle disposal of wastes from hazard control 
activities that contain lead-based paint, but are not classified as 
hazardous in accordance with state or local law or the HUD Guidelines 
for the Evaluation and Control of Lead-Based Hazards in Housing (HUD 
Guidelines). The Guidelines are available from the HUD Web site at: 
www.hud.gov/offices/lead/guidelines/hudguidelines/index.cfm.
    (J) Worker Protection Procedures. You must observe the procedures 
for worker protection established in the HUD Guidelines, as well as the 
requirements of the Occupational Health and Safety Administration 
(OSHA) (29 CFR 1926.62, Lead Exposure in Construction), or the State or 
local occupational safety and health regulations, whichever are most 
protective. If other applicable requirements contain more stringent 
requirements than the HUD Guidelines, the more rigorous standards shall 
be followed.
    (K) Prohibited Practices. You must not engage in the following 
prohibited practices:
    (1) Open flame burning or torching;
    (2) Machine sanding or grinding without a high-efficiency 
particulate air (HEPA) exhaust control;
    (3) Uncontained hydro blasting or high-pressure wash;
    (4) Abrasive blasting or sandblasting without HEPA exhaust control;

[[Page 21285]]

    (5) Heat guns operating above 1,100 degrees Fahrenheit;
    (6) Chemical paint strippers containing methylene chloride or other 
volatile hazardous chemicals in a poorly ventilated space; and
    (7) Dry scraping or dry sanding, except scraping in conjunction 
with heat guns or around electrical outlets or when treating no more 
than two square feet in any one interior room or space, or totaling no 
more than 20 square feet on exterior surfaces.
    (L) Written Policies and Procedures. You must have clearly 
established, written policies and procedures for eligibility, program 
marketing, unit selection, expediting work on homes occupied by 
children with elevated blood lead levels, and all phases of lead hazard 
control, including risk assessment, inspection, development of 
specifications, pre-hazard control blood lead testing, financing, 
relocation and clearance testing. Grantees, subcontractors, sub-
grantees, sub-recipients, and their contractors must adhere to these 
policies and procedures.
    (M) Continued Availability of Lead-Safe Housing to Low-Income 
Families. Units in which lead hazards have been controlled under this 
program shall be occupied by and/or continue to be available to low-
income residents as required by Title X (Section 1011). You must 
maintain a publicly available registry (listing) of units in which lead 
hazards have been controlled and ensure that these units are 
affirmatively marketed to agencies and families as suitable housing for 
families with children under six years of age. The grantee must also 
notify the owner of the information that is collected so that the owner 
will comply with disclosure requirements under 24 CFR part 35, subpart 
A.
    (N) Testing. In developing your application budget, include costs 
for lead paint inspection, risk assessment, and clearance testing for 
each dwelling that will receive lead hazard control, as follows:
    (1) General. All testing and sampling shall conform to the current 
HUD Guidelines and Federal, state or tribal regulations developed as 
part of the appropriate contractor certification program whichever is 
more stringent. It is particularly important to provide this full cycle 
of testing for lead hazard control, including interim controls. Testing 
must be conducted according to the HUD Guidelines and the EPA lead 
hazard standards rule at 40 CFR part 745. All test results must be 
provided to the owner in a timely fashion, together with a notice 
describing the owner's legal duty to disclose the results to tenants 
and buyers under 24 CFR part 35, subpart A.
    (a) Lead-Based Paint and Lead-Based Paint Hazard Identification. A 
combined inspection and risk assessment is required. You should ensure 
that lead paint inspection and risk assessment reports are conducted in 
accordance with established protocols and sufficient to support hazard 
control decisions.
    (b) Clearance Testing. Clearance testing shall be completed in 
accordance with Chapter 15 of the HUD Guidelines and the EPA lead 
hazards standards rule at 40 CFR part 745 for abatement projects and 
the Lead-Safe Housing Regulation (24 CFR part 35) for lead hazard 
control activities or other abatement. The clearance standards shall be 
the more restrictive of those set by the local jurisdiction or by EPA 
or HUD.
    (c) Blood lead testing. Before lead hazard control work begins, 
each occupant who is under six years of age must be tested for lead 
poisoning within the six months preceding the housing intervention. Any 
child with an elevated blood lead level must be referred for 
appropriate medical follow-up. The standards for such testing are 
described in the Centers for Disease Control and Prevention (CDC) 
publications Preventing Lead Poisoning in Young Children (1991), and 
Screening Young Children for Lead Poisoning: Guidance for State and 
Local Public Health Officials (1997).
    (O) Cooperation With Related Research and Evaluation. You shall 
cooperate fully with any research or evaluation sponsored by HUD, CDC, 
EPA or other government agency and associated with this grant program, 
including preservation of project data and records and compiling 
requested information in formats provided by the researchers, 
evaluators or HUD. This also may include the compiling of certain 
relevant local demographic, dwelling unit, and participant data not 
contemplated in your original proposal. Participant data shall be 
subject to Privacy Act protection.
    (P) Data collection. You will be required to collect and maintain 
the data necessary to document the various lead hazard control methods 
used and the cost of these methods.
    (Q) Section 3 Employment Opportunities. Please see Section V (E) of 
the General Section of this SuperNOFA. The requirements of Section 3 of 
the Housing and Urban Development Act of 1968 are applicable to the 
Lead-Based Paint Hazard Control Program.
    (R) Replacing Existing Resources. Funds received under this grant 
program shall not be used to replace existing community resources 
dedicated to any ongoing project.
    (S) Certifications and Assurances. You must include the 
certifications and assurances listed in the General Section of this 
SuperNOFA with your application.
    (T) Davis-Bacon Act. The Davis-Bacon Act does not apply to this 
program. However, if you use grant funds in conjunction with other 
Federal programs in which Davis-Bacon prevailing wage rates apply, then 
Davis-Bacon provisions would apply to the extent required under the 
other Federal programs.
    (U) Conducting Business in Accordance with HUD Core Values and 
Ethical Standards. If awarded assistance under this NOFA, you will be 
required, prior to entering into a new or modified grant agreement with 
HUD, to submit a copy of your code of conduct and describe the methods 
you will use to ensure that all officers, employees and agents of your 
organization are aware of your code of conduct (see Section V (B)(3) of 
the General Section of this SuperNOFA for information about conducting 
business in accordance with HUD's core values and ethical standards).
    (V) Ensuring the participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses. HUD is committed 
to ensuring that small businesses, small disadvantaged businesses and 
women-owned businesses participate fully in HUD's direct contracting 
and in contracting opportunities generated by HUD grant funds. Too 
often, these businesses still experience difficulty accessing 
information and successfully bidding on Federal contracts. HUD 
regulations at 24 CFR 85.36(e) require recipients of assistance 
(grantees and sub grantees) to take all necessary affirmative steps in 
contracting for purchase of goods or services to assure that minority 
firms, women's business enterprises, and labor surplus area firms are 
used when possible. Affirmative steps shall include:
    (1) Placing qualified small and minority businesses and women's 
business enterprises on solicitation lists;
    (2) Assuring that small and minority businesses, and women's 
business enterprises are solicited whenever they are potential sources;
    (3) Dividing total requirements, when economically feasible, into 
smaller tasks or quantities to permit maximum participation by small 
and minority

[[Page 21286]]

businesses, and women's business enterprises;
    (4) Establishing delivery schedules, where the requirement permits, 
which encourage participation by small and minority businesses, and 
women's business enterprises;
    (5) Using the services and assistance of the Small Business 
Administration (SBA), and the Minority Business Development Agency of 
the Department of Commerce; and
    (6) Requiring the prime contractor, if subcontracts are to be let, 
to take the affirmative steps listed in paragraphs (e)(2)(i) through 
(v) above.

IV. Application Selection Process

    (A) Rating and Ranking. Please see Section VI (B) of the General 
Section of this SuperNOFA. Only those applications that meet the 
threshold review requirements will be rated and ranked. For new 
applicants, HUD intends to fund the highest ranked applications 
receiving a minimum score of 75 within the limits of funding.
    A current grantee eligible to receive a Performance-Based Renewal 
Grant will be rated and ranked based on its demonstrated performance in 
terms of the number of housing units completed and cleared (as a 
percentage of units in current grant agreement), the cumulative Line of 
Credit Control System (LOCCS) drawdowns to date, and other work plan 
benchmarks or milestones achieved. Performance will be evaluated based 
upon the quarterly progress data submitted to HUD for the period ending 
March 31, 2003 and other data available to HUD.
    In addition, the work plan and budget submitted in response to this 
NOFA will be evaluated as part of the rating and ranking process.
    Current grantees that are eligible to submit a Performance-Based 
Renewal application and are successful applicants, will have their 
current grant agreement modified to allow for an additional 36-months 
grant. Eligible current grantee applicants are not to respond to the 
Factors for Award in this NOFA, but must submit the required budget 
forms included in this NOFA and develop a work plan strategy with 
benchmark standards for conducting lead hazard control program 
activities. A work plan and budget should be developed for the 36-month 
period. The submission requirements for the Performance-Based Renewal 
grant can be found in Appendix C of this Program Section of the NOFA.
    HUD intends to fund the highest ranked applicants within the limits 
of funding.
    (1) Remaining Funds. See Section VI (E) (3) of the General Section 
of this SuperNOFA for HUD's procedures if funds remain after all 
selections have been made within a category of the Lead Hazard Control 
Grant Program.
    (B) Factors for Award Used to Evaluate and Rate Applications. The 
factors for rating and ranking applicants, and maximum points for each 
factor, are stated below.
    (1) Performance-Based Renewal applications will be evaluated based 
on the criteria below:
    The maximum number of points to be awarded will be 40.
    (a) Production (10 points). The number of units completed and 
cleared. Grantees whose percentage of units completed and cleared in 
their current agreement meets or exceeds the performance criteria below 
will be awarded points based on the chart below.

------------------------------------------------------------------------
Percentage of units completed and  Round 7  FY  Round 8  FY  Round 9  FY
             cleared                   1999         2000         2001
------------------------------------------------------------------------
50-55.................  ...........  ...........            3
55-60.................  ...........  ...........            4
60-65.................  ...........  ...........            5
65-70.................  ...........            6            6
70-80.................  ...........            7            7
80-85.................            8            8            8
85-90.................            9            9            9
90-100................           10           10           10
------------------------------------------------------------------------

    (b) Cumulative LOCCS Drawdowns (10 Points). The cumulative 
drawdowns from LOCCS as a percentage of the Federal funds awarded in 
their current agreement. Grantees whose percentage of cumulative LOCCS 
drawdowns in their current agreement meet or exceed the performance 
criteria below will be awarded points based on the chart below.

------------------------------------------------------------------------
  Percentage of cumulative LOCCS   Round 7  FY  Round 8  FY  Round 9  FY
        drawdowns to date              1999         2000         2001
------------------------------------------------------------------------
35-40.................  ...........  ...........            3
40-45.................  ...........  ...........            4
45-50.................  ...........            5            5
50-55.................  ...........            6            6
55-60.................            7            7            7
60-70.................            8            8            8
70-75.................            9            9            9
75-100................           10           10           10
------------------------------------------------------------------------

    (c) Other Work Plan Achievements. (5 Points). A grantee will be 
awarded points for meeting or exceeding their community education, 
outreach, and training objectives that were outlined in their most 
recent approved work plan and reported to HUD.
    (d) Work Plan and Budget. (15 Points) The work plan and budget 
submitted by a grantee will be evaluated to ensure that there are 
specific and measurable performance objectives with benchmark 
milestones developed for the 36-month additional period of performance.
    (2) HUD is encouraging applicants to undertake specific activities 
that will assist the Department in implementing its policy priorities. 
HUD's Strategic Goals and Policy Priorities are outlined in Section II 
of the General Section of this SuperNOFA. For Lead Hazard

[[Page 21287]]

Control Grant Program applicants, activities that promote economic 
opportunities for low-income persons support HUD's policy priority for 
Improving the Quality of Life in Our Nation's Communities. A new 
applicant will be awarded one point under Rating Factor 3(A)(3): 
Economic Opportunities for activities undertaken that specifically 
address this policy priority. Activities that promote the participation 
of grassroots faith-based and community organizations support HUD's 
policy priority for: Providing Full and Equal Access to Grassroots 
Faith-Based and Other Community-Based Organizations. An applicant will 
be awarded one point under Rating Factor 3(A)(4): Lead Hazard Control 
Outreach and Community Private Sector Involvement for activities 
undertaken that specifically addresses this policy priority.
The maximum number of points to be awarded is 102. This maximum 
includes two bonus points as described in Section VI(C) of the General 
Section of this SuperNOFA. For new applicants, a minimum score of 75 is 
required for fundable applications.


------------------------------------------------------------------------
                                                               Maximum
                       Rating factor                            points
------------------------------------------------------------------------
1. Capacity of the Applicant and Relevant Organizational              20
 Experience................................................
2. Needs/Extent of the Problem.............................           20
3. Soundness of Approach...................................           40
4. Leveraging Resources....................................           10
5. Achieving Results and Program Evaluation................           10
Empowerment Zone and Enterprise Community Bonus Points.....            2
============================================================
------------------------------------------------------------------------

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 points)

    This factor addresses your organizational capacity necessary to 
successfully implement the proposed activities in a timely manner. The 
rating of the ``applicant'' or the ``applicant's staff'' for technical 
merit or threshold compliance, unless otherwise specified, includes any 
grassroots faith-based and other community-based organizations, sub-
contractors, consultants, sub-recipients, and members of consortia that 
are firmly committed to your project. In rating this factor, HUD will 
consider:
    (1) The applicant's recent, relevant and successful demonstrated 
experience (including governmental, parent groups, and grassroots 
faith-based and other community-based partners) to undertake eligible 
program activities. The applicant must describe the knowledge and 
experience of the current or proposed overall project director and day-
to-day program manager in planning and managing large and complex 
interdisciplinary programs, especially involving housing 
rehabilitation, public health, or environmental programs. The applicant 
must demonstrate that it has sufficient personnel or will be able to 
retain qualified experts or professionals, and be prepared to perform 
lead hazard evaluation, lead hazard control intervention work, and 
other proposed activities within 120 days of the effective date of the 
grant award. HUD reserves the right to terminate the grant if 
sufficient personnel or qualified experts are not retained within these 
120 days. In the narrative response for this factor, you should include 
information on your program staff, their experience, their commitment 
to the program, salary information, and position titles. Resumes (for 
up to three key personnel) or position descriptions for those key 
personnel to be hired, and a clearly identified organizational chart 
for the lead hazard control grant program effort (and for the overall 
organization) must be included in an appendix. Indicate the percentage 
of time that key personnel will devote to your project (see Appendix A 
of this NOFA for Sample Worksheet 1-Key Personnel). The applicant's 
day-to-day program manager must be experienced in the management of 
housing rehabilitation or lead hazard control, childhood lead poisoning 
prevention, or similar work involving project management, and must be 
dedicated to the proposed program for a minimum of 75% of the time. 
Ideally, the program manager should be available at the inception of 
the program in order to implement this comprehensive program within the 
120-day period after the effective date of the grant award. The 
applicant should provide a description of any previous experience in 
enrolling units and in completing lead hazard control work, housing 
rehabilitation or other work in a timely and effective manner. Describe 
how any other principal components of your agency, other public 
entities, or other organizations will participate in implementing or 
otherwise supporting or participating in the grant program. You may 
demonstrate capacity by thoroughly describing your prior experience in 
initiating and implementing lead hazard control efforts and/or related 
environmental, health, or housing projects. You should indicate how 
this prior experience will be used in carrying out your proposed 
comprehensive Lead-Based Paint Hazard Control Grant Program.
    (2) If the applicant received previous HUD Lead-Based Paint Hazard 
Control Grant funding, this past experience will be evaluated in terms 
of cumulative progress and achievements under the previous grant(s). If 
the applicant has received multiple HUD Lead Hazard Control Grants, 
performance under the most recent grant award will be primarily 
evaluated. The applicant must provide a description of its progress and 
performance implementing the most recent grant award including the 
total number of housing units enrolled, assessed, and completed and 
cleared as a result of program efforts. The applicant must also 
describe outcomes, capacity building efforts and impediments 
experienced during a previous Lead Hazard Control Grant program. Other 
work plan activities and tasks associated with implementing HUD's Lead-
Safe Housing Regulation, integrating lead-safe work practices into the 
private market, and promoting effective education, outreach, and other 
training activities should be described. The applicant should also 
describe specific instances where the program has contributed positive 
impacts in the community, and indicate what activities were undertaken 
to develop, enhance or expand the local infrastructure through 
collaboration.
    HUD's evaluation process will consider an applicant's past 
performance record as reported to HUD in effectively organizing and 
managing their grant operations, in meeting performance and work plan 
benchmarks and goals, and in managing funds, including their ability to 
account for funds appropriately, the timely use of funds received 
either from HUD or other Federal, State or local programs, and meeting 
performance milestones. HUD may also use other information relating to 
these items from sources at hand, including public sources such as 
newspapers, Inspector General or Government Accounting Office Reports 
or Findings, hotline complaints, or other sources of information that 
have been proven to have merit.

Rating Factor 2: Needs/Extent of the Problem (20 points)

    This factor addresses the extent to which there is a need for the 
proposed program to address a documented problem related to lead-based 
paint and lead-based paint hazards in your identified target area(s). 
An applicant will receive a higher score in this rating factor based on 
their documented need

[[Page 21288]]

as evidenced by thorough, credible, and appropriate data and 
information. The evaluation will be based on the applicant's 
documentation of the number of children with elevated blood lead 
levels, and/or number and proportion of pre-1978 housing units with 
deteriorating paint (i.e., condition of housing stock) and the number 
of very low- and low-income families in the proposed target area(s).
    (1) Document a critical level of need for your proposed activities 
in the geographical area where activities will be performed. Since an 
objective of the program is to prevent at-risk children from being 
poisoned, specific attention must be paid to documenting such need as 
it applies to the targeted area(s), rather than the entire locality or 
state.
    (2) Document the following for the target area(s):
    (a) Numbers and percentages of children less than six years of age 
(see Appendix A for Sample Worksheet 2--Blood Lead Level (BLL) 
Information).
    (i) The number and percentage of children with elevated blood lead 
levels for the following categories:
    (1) less than 10[mu]g/dL;
    (2) greater than or equal to 10[mu]g/dL and less than15[mu]g/dL;
    (3) greater than or equal to 15[mu]g/dL and less than20[mu]g/dL; 
and
    (4) greater than or equal to 20[mu]g/dL.
    (ii) The total number and percentage of children tested for blood 
lead levels,
    (b1) Housing market data relevant to the specified target area(s) 
(see Appendix A of this NOFA for Sample Worksheet 3-Housing Age and 
Condition).
    (i) Housing Age for the following sub-categories: Pre-1940, 1940-
1949, 1950-1959, 1960-1969, 1970-1977 and 1978 or newer;
    (ii) Housing Condition for the following sub-categories: Pre-1940, 
1940-1949, 1950-1959, 1960-1969, 1970-1977 and 1978 or newer.
    (a) The number and percentage of very-low (income less than 50% of 
the area median) and low-(income less than 80% of the area median) 
income families, as determined by HUD (www.huduser.org), with 
adjustments for smaller and larger families (see Appendix A of this 
NOFA for Sample Worksheet 4--Very-Low and Low-Income Population);
    (d) Poverty data relevant to the specified target area(s);
    (e) Housing market data relevant to lead hazard conditions in 
housing available from HUD, or other data sources, including the 
Consolidated Plan/Analysis of Impediments, Public Housing Authority's 
Five-Year Comprehensive Plan, State or local Welfare Department's 
Welfare Reform Plan; and
    (f) Other socio-economic, environmental, or demographic data 
relevant to the target area(s) or jurisdiction that demonstrate a need 
for lead-safe housing may be included. These data may include: the 
number of units that have been occupied by lead-poisoned children where 
the identified lead-based paint hazards have not been eliminated or 
controlled; the number of lead-based paint health and/or housing code 
violations; the number of pre 60 and pre-1978 housing units anticipated 
to undergo rehabilitation in the next 12 months; the proportion or 
number of units with lead dust hazards; information about the principal 
sources of exposure in your community, their prevalence, and the 
segments and/or characteristics of the housing most affected by these 
exposure sources; and/or other information about housing conditions 
(including the condition of housing units noted during previous lead 
hazard control work). Relevant data for other socio-economic, 
environmental, or demographic information may be obtained from census 
data, special studies, the jurisdiction's Consolidated Plan/Analysis of 
Impediments, the Public Housing Authority's Five-Year Comprehensive 
Plan, or the State or local Welfare Department's Welfare Reform Plan or 
local health, housing, or community development agencies.
    (3) You also must provide documentation of the priority that the 
community's Consolidated Plan and Analysis of Impediments to Fair 
Housing Choice has placed on addressing the needs you described. (This 
section does not apply to Native American Tribes. However, a Native 
American Tribe applicant may use the Indian Housing Plan to document 
how the Indian Housing Plan addresses the need for lead hazard control 
grant activities.) If your application addresses needs that are in the 
Consolidated Plan, Analysis of Impediments to Fair Housing Choice, or 
the result of court orders or consent decrees, settlements, 
conciliation agreements, voluntary compliance agreements, Childhood 
Lead Poisoning Prevention Programs or other relevant local initiatives 
you will receive a higher score in this rating factor than applicants 
that do not relate their program to identified needs.
    (4) For you to receive maximum points for this rating factor there 
must be a direct relationship between your proposed lead hazard control 
activities in the target area(s) and the documented community needs.

Rating Factor 3: Soundness of Approach (40 points)

    This factor addresses the quality and cost-effectiveness of your 
proposed work plan. Applicants should develop a work plan that includes 
specific, measurable and time-phased objectives for each major program 
activity. The applicant's work plan should reflect benchmark standards 
for production, expenditures and other activities that have been 
developed by the Office of Healthy Homes and Lead Hazard Control. These 
benchmark standards, as well as policy guidance on developing work 
plans have been included in Appendix A of this NOFA and are available 
at the HUD Web site at: www.hud.gov/offices/lead/lhc/pgi/index.cfm. 
This policy guidance provides a sample format and outline for 
developing the Lead Hazard Control Grant Program Work Plan.
    Applicants should describe the proposed activities and provide HUD 
with measurable outcome results to be achieved with the requested 
funds. Measurable outcome results should be stated in terms relevant to 
the purpose of the program funds as a direct result of the work 
performed within the performance period of the grant (e.g., estimated 
number of units to be made lead-safe, estimated number of children 
living in units made lead-safe, estimated number of persons to be 
trained to perform lead hazard control activities, estimated number of 
educational programs to be presented and/or the number of persons to be 
served by such programs, and the basis for these estimates). Each 
proposed activity must be eligible as described in the NOFA and meet 
statutory requirements for assistance to low- and very low-income 
persons.
    You should present information on your proposed lead-based paint 
hazard control program and describe how it will satisfy the need 
identified in Factor 2; Need and Extent of the Problem and protect 
young children and families from lead poisoning in the target area(s). 
To the extent possible, describe a comprehensive strategy to address 
the need to protect targeted neighborhoods rather than individual units 
or homes. Your response to this factor must include the elements 
described below:
    (A) Lead Hazard Control Work Plan Strategy (32 points) Describe 
your work plan goals and specific time-phased strategy to complete work 
under the grant within the 42-month period of performance for your lead 
hazard control grant program. You should provide information on:

[[Page 21289]]

    (1) Implementing a Lead Hazard Control Program (13 of 32 points). 
Describe how you will implement the strategy for your proposed lead 
hazard control program. The description must include information on:
    (a) How the project will be organized, managed and staffed. You 
must also identify the specific steps that will be taken to train and 
ensure the availability of enough lead-based paint contractors and 
workers to conduct lead hazard control interventions, and to perform 
other program activities. In addition, a detailed description of the 
selection process for sub-grantees, subcontractors or sub-recipients, 
and how assistance and funding will flow from the grantee to those who 
will actually perform the work under the grant.
    (b) The overall number of eligible privately-owned housing units 
scheduled for lead hazard control intervention work and the strategy 
for their identification, selection, prioritization, and enrollment in 
the selected target area(s). Discuss the eligibility criteria for unit 
selection and how the program will identify units that meet these 
criteria. Explain how referrals of eligible units will be obtained from 
childhood lead poisoning prevention programs, other health care or 
housing agencies or health providers that serve children. Also discuss 
how referrals from the Section 8/Housing Choice Voucher programs and 
other agencies that provide housing assistance to low-income households 
with children including CDBG, HOME Investment Partnerships Program-
funded housing programs or other sources. (Include as attachments any 
referral agreements, commitment letters or other documents from other 
entities that describe their participation recruiting eligible units in 
the lead hazard control grant program; see Rating Factor 4 Leveraging 
Resources for additional information regarding referral agreements). 
Provide estimates of the total number of owner-occupied and/or rental 
units that will receive lead hazard control (see Sample Worksheet 5--
Housing Occupancy Projections). You should describe how the program 
will respond to the needs of children with elevated blood lead levels 
(EBLs) located outside the target area(s).
    (c) The degree to which the work plan focuses on eligible 
privately-owned housing units occupied by low-income families with 
children under six years of age. Describe your planned approaches to 
control lead hazards in vacant and/or occupied units before children 
are poisoned and your plans to ensure that the program will continue to 
affirmatively market and match these units made lead-safe with low-
income families with children under six years of age in the future. 
Discuss strategies to control lead hazards in units where children have 
already been identified with an elevated blood lead level (EBL), 
including your process for referring and tracking children with EBLs 
for medical case management, and your capacity to rapidly complete lead 
hazard control work in their units. Provide estimates of the number of 
low-income children you will assist through this program.
    (d) Discuss the lead hazard control financing strategy, including 
eligibility requirements, terms, conditions, dollar limits, and amounts 
available for lead hazard control work. Applicants must also describe 
how grant funds will be recaptured by the program in the event that a 
recipient of grant funds fails to comply with any terms and conditions 
of the financing arrangement (e.g. affordability, sale of property, 
etc.) You must discuss the way assistance from the grant funds will be 
administered to or on behalf of property owners (e.g. use of grants, 
deferred loans and/or forgivable loans and the basis and schedule for 
forgiveness), and the role of other resources, such as private sector 
financing). You should identify the entity that will administer the 
financing process and describe how coordination and payment between the 
program and contractors performing the work will be accomplished. 
Describe matching requirements, if any, proposed for assistance to 
rental property owners.
    (e) You should describe how your proposed program will satisfy the 
stated needs in the Consolidated Plan or Indian Housing Plan, and 
eliminate impediments identified in the Analysis of Impediments (AI). 
Also describe how your proposed program will further and support the 
policy priorities of the Department: including promoting healthy homes 
and the quality of housing. In addition, describe how your strategy 
will provide long-term benefits to families with children under six 
years of age, and whether any of the proposed activities will occur in 
an Enterprise Zones/Enterprise Community/Renewal Communities (EZ/EC/RC) 
and how they will benefit the residents of those zones or communities. 
A list of EZ/EC/RC communities is available at www.hud.gov.
    (2) Technical Approach/Performance (15 of 32 points). New and prior 
grantee applicants are to respond to the items below (see Appendix A of 
this NOFA for Sample Worksheet 6).
    (a) Describe your process for the conduct of lead hazard evaluation 
(risk assessments and/or inspections) in units of eligible privately 
owned housing to confirm that there are lead-based paint hazards in the 
housing units where lead hazard control is undertaken.
    (b) Describe your testing methods, schedule, and costs for 
performing blood lead testing, risk assessments, paint inspections and 
clearance examinations to be used. If you propose to use a more 
restrictive standard than the HUD/EPA thresholds (e.g., less than 0.5% 
or 1.0 mg/ square centimeter for lead in paint, or less than 40, 250, 
400 [mu]g/square foot for lead in dust on floors, sills and troughs, 
respectively); or 400 ppm in bare soil in children's play areas and 
1200 ppm for bare soil in the rest of the yard), identify the 
standard(s) that will be used. All testing shall be performed in 
accordance with applicable regulations.
    (c) Describe the lead hazard control methods and strategies you 
will undertake and the number of units you will treat for each method 
selected (interim controls or hazard abatement). Complete abatement of 
all lead painted surfaces in all units is generally not acceptable as a 
strategy. In cases where only a few surfaces have lead hazards in a 
specific unit and abatement is cost-effective, the applicant must 
provide a detailed rationale for selecting complete abatement as a 
strategy. Provide an estimate of the per unit costs (and a basis for 
those estimates) for each lead hazard control method proposed and a 
schedule for initiating and completing lead hazard control work in the 
selected units. Discuss efforts to incorporate cost-effective lead 
hazard control methods. Explain your cost estimates, providing detail 
on how the estimates were developed, with particular references to cost 
effectiveness.
    (d) Schedule. Provide a realistic schedule for completing key 
activities, by quarter, so that all activities can be completed within 
the period of performance of the grant. Key production activities 
include enrollment of units, paint inspections/risk assessments, and 
completion/clearance of units. When developing the application, the 
applicant shall take into consideration previous experience and 
performance in administering similar kinds of lead hazard control or 
rehabilitation programs.
    (e) Timeframes. Describe the estimated elapsed timeframe for 
treating a typical unit that will receive lead hazard control, 
including referral/intake, enrollment (qualification of the unit as 
eligible), combined paint inspection/risk assessments, preparation of 
specifications or work write-up, selection of the contractor, lead 
hazard control intervention work activities, quality control and 
monitoring of work

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activities, and clearance. The timeframe should include an estimate of 
the staff and contractor time required to treat a typical unit that 
will receive lead hazard control. Describe the schedule for emergency 
referrals (e.g., unit occupied by a child under six years of age with 
an elevated blood lead level). List the type of unit (e.g., owner-
occupied, rental, or vacant) and the number of units projected in each 
of the following categories: lead-based paint inspections/risk 
assessments; interim controls; hazard abatement and clearance 
inspections.
    (f) Workflow and Production Control. Provide guidelines and/or 
flowcharts showing agency/partner responsibilities for each step in the 
process (from intake to clearance) and describe/show how coordination 
and hand-offs will be handled. Discuss how the actual production status 
of units, from intake to final clearance, will be monitored, and how 
and when production bottlenecks will be identified, remedied and 
monitored.
    (g) Describe how you will integrate proposed lead hazard control 
activities with rehabilitation activities, including providing the 
training needed to create a workforce properly trained in lead-safe 
work practices for units assisted or rehabilitated under other HUD 
programs, and any collaboration with local housing or health 
departments, rehabilitation programs or community development 
corporations to stage lead hazard control and rehabilitation in the 
same units.
    (h) Describe your contracting process, including development of 
specifications or adoption of existing specifications for selected lead 
hazard control methods. Describe the management processes you will use 
to ensure the cost-effectiveness of your lead hazard control methods. 
Your application must include a discussion of the contracting process 
for the conduct of lead hazard control activities in the selected 
units, and requirements for coordination among lead hazard control, 
rehabilitation, weatherization, and other contractors.
    (i) Describe your plan for occupant protection or the relocation of 
the occupants of units selected for lead hazard control work. Describe 
any plan to avoid overnight relocation in small scale projects 
consistent with 24 CFR 35.1345(a)(2) and HUD's Interpretive Guidance of 
24 CFR part 35, including J24, R18, and R19 (see Appendix B of this 
NOFA). Your work plan should address the use of safe houses and other 
temporary housing arrangements, storage of household goods, stipends, 
incentives, etc.
    (3) Economic Opportunity (4 points).
    (a) Describe the ways you will train individuals and contractors in 
housing related trades, such as painters, remodelers, renovators, 
maintenance personnel, rehabilitation specialists, and others in lead-
safe work practices.
    (b) Describe how you will help to integrate lead-safety into other 
housing activities, such as meeting the requirements of the HUD Lead-
Safe Housing Regulation in housing units rehabilitated or assisted with 
Federal funds.
    (c) Describe the methods to be used to provide economic 
opportunities for residents and businesses throughout the community 
within the target area. This discussion should include information on 
how you will promote training, employment, business development, and 
contract opportunities as part of your lead hazard control program. 
Grantees must comply with Section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) and HUD's implementing rules 
at 24 CFR part 135. Describe how you will accomplish the requirement by 
(1) providing training and employment opportunities for low and very 
low-income persons living within the grantee's jurisdiction, and by (2) 
providing business opportunities to businesses owned by low and very 
low-income persons living within the grantee's jurisdiction. Applicants 
that provide training, employment or business opportunities for low and 
very low income persons will receive one point in this sub factor.
    (4) Lead Hazard Control Outreach and Community Private Sector 
Involvement (6 points). Applicants are encouraged to solicit 
participation of grassroots faith-based and other community-based and 
private sector organizations to accomplish outreach and community 
involvement activities and to build long-term capacity to sustain 
accomplishments in the target area. Applicants that partner, fund, or 
subcontract with grassroots faith-based and other community-based 
organizations will receive one point in this sub-factor. Your 
application must describe:
    (a) Proposed methods of community education. These may include 
community awareness, education, training, and outreach programs in 
support of the work plan and objectives. This description should 
include general and/or targeted efforts undertaken to assist your 
program in reducing lead exposure. Programs should be culturally 
sensitive, targeted, and linguistically appropriate. Upon request, this 
would include making materials available in alternative formats to 
persons with disabilities (e.g., Braille, audio, large type), and in 
other languages common to the community to the extent possible.
    (b) Strategy for involving neighborhood or grassroots faith-based 
and other community based organizations in your proposed activities. 
Your activities may include training (including training residents to 
screen houses through visual assessment and sampling), outreach, 
community education, marketing, inspection (including dust lead 
testing), and the conduct of lead hazard control activities. HUD will 
evaluate the proposed level of substantive involvement of such 
organizations during the review process.
    (c) Strategies and methodologies that affirmatively further fair 
housing and increase access to lead-safe housing for all segments of 
the population: homeowners, owners of rental properties, and tenants. 
This outreach should address ways to avoid housing discrimination 
against families with young children, and ways to ensure that all 
families will have adequate, lead-safe housing choices in the future. 
These strategies could include your plans to develop and implement a 
registry (listing) of lead-safe housing that is available to the 
public, or to incorporate the inclusion of the lead-safe status of 
properties in another publicly accessible address-based property 
information system. The strategy could also include affirmatively 
marketing your services to those populations least likely to apply and 
who may not be served by any of the partner organizations working with 
you.
    (5) Data Collection and other Program Support Activities (2 
points).
    (a) Identify and discuss the specific methods you will use (in 
addition to HUD reporting requirements) to document activities, 
progress, program effectiveness, and how changes necessary to improve 
performance will be implemented. Describe how you will obtain, document 
and report on information collected.
    (b) Provide a detailed description of any proposed participation in 
research activities, studies, or development of information systems 
designed to enhance the delivery, analysis, or conduct of lead hazard 
control activities, or that will facilitate the targeting and pooling 
of resources to further childhood lead poisoning prevention efforts.
    If you are proposing to participate in research activities, 
describe the objectives, methodology and impact at the local level of 
the proposed research activities.

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Rating Factor 4: Leveraging Resources (10 points)

    This factor addresses your ability to obtain other community and 
private sector resources that can be combined with HUD's program 
resources to achieve program objectives. In evaluating this factor, HUD 
will consider the extent to which you have established working 
partnerships with other entities to get additional resources or 
commitments to increase the effectiveness of the proposed program 
activities (see Appendix A of this NOFA for Sample Worksheet 7 (Match 
Funding) and Worksheet 8 (Grant Partners)). Resources may include cash 
or in-kind contributions of services, equipment, or supplies allocated 
to the proposed program. Resources may be provided by governmental 
entities, public or private organizations, and other entities 
partnering with you. Leveraging arrangements with rental property 
owners may have the benefits of increasing the efficiency of public 
lead hazard identification and control expenditures and creating a 
financial stake for rental property owners in the quality of lead 
hazard control work. Contractual or other formal relationships with 
grassroots faith-based and other community-based organizations are a 
requirement for State and local government applicants. Documentation of 
relationships with grassroots faith-based and community-based 
organizations must be provided in this application either in the form 
of signed agreements or commitment letters. This requirement does not 
apply to Native American Tribe applicants. You also may partner with 
other program funding recipients to coordinate the use of resources in 
your target area(s).
    (1) You should detail any activities to increase the understanding 
of lead poisoning prevention in your community. This could include 
partnerships with childhood lead screening programs, collaboration with 
ongoing health, housing or environmental research efforts which could 
result in a greater availability of resources, and efforts to build 
capacity for lead-safe housing.
    (2) Matching funds must be shown to be specifically dedicated to 
and integrated into supporting the lead-based paint hazard control 
program (see Appendix A of this NOFA for Sample Worksheet 7--Match 
Funding). You may not include funding from any Federally funded program 
(except the CDBG program) as part of your required 10% match. Other 
resources from the private sector or other sources committed to the 
program that exceed the required 10% match will provide points for this 
rating factor. Contributions above the first 10% may include funds from 
other Federally funded programs, and/or State, local, charity, non-
profit or for-profit entities. You must support each source of 
contributions, cash or in-kind, both for the required minimum and 
additional amounts, by a letter of commitment from the contributing 
entity, whether a public or private source. The letter must describe 
the contributed resources that you will use in the program and their 
designated purpose. The signature of the authorized official on the HUD 
Form-424 commits matching or other contributed resources of the 
applicant organization. A separate letter from the applicant 
organization is not required. Staff in-kind contributions should be 
given a monetary value based on the local market value of the staff 
skills. If you do not provide letters from contributors specifying 
details and the amount of the actual contributions, those contributions 
will not be counted. Contributions required of rental property owners 
may be included as part of your match. You should document and estimate 
the amount of the match from each resource.
    Applicants will not receive full points under this rating factor if 
they do not submit evidence of a firm commitment and the appropriate 
use of leveraged resources under the grant program. Such evidence must 
be provided in the form of letters of firm commitment, memoranda of 
understanding, or other signed agreements to participate from those 
entities identified as partners in your application. Each letter of 
commitment, memorandum of understanding, or agreement to participate 
should include the organization's name, the proposed level of 
commitment and the responsibilities as they relate to your proposed 
program. The commitment must be signed by an official of the 
organization legally able to make commitments on behalf of the 
organization. Describe the role of grassroots faith-based and other 
community-based organizations in specific program activities, such as: 
hazard evaluation and control; monitoring; and awareness, education, 
and outreach within the community. Describe how you will ensure that 
commitments to sub-grantees specified in your proposal will be honored 
and executed, contingent upon an award from HUD.

Rating Factor 5: Achieving Results and Program Evaluation. (10 Points)

    This factor emphasizes HUD's commitment to ensuring that applicants 
achieve the goals outlined in their work plan and other benchmark 
standards and assess their performance to ensure performance goals are 
met. Achieving results means you, the applicant, have clearly 
identified the benefits, or outcomes of your program. Outcomes are 
ultimate goals. Benchmarks or outputs are interim activities or 
products that lead to the ultimate achievement of your goals.
    Program evaluation requires that you, the applicant, identify 
program outcomes, interim products or benchmarks, and performance 
indicators that will allow you to measure your performance. Performance 
indicators should be objectively quantifiable and measure actual 
achievements against anticipated achievements. Your Evaluation Plan 
should identify what you are going to measure, how you are going 
measure it and the steps you have in place to make adjustments to your 
work plan if performance targets are not met within established 
timeframes.
    This new rating factor reflects HUD's goal to embrace high 
standards of ethics, management and accountability. Applicants are 
required to complete the HUD Logic Form included in Appendix B of the 
General Section of this SuperNOFA.
    (1) An applicant is to identify and describe specific methods, 
measures, and tools that you will use (in addition to HUD reporting 
requirements) to measure progress, evaluate program effectiveness, and 
identify program changes necessary to improve performance. Describe how 
you will obtain, document and report the information. In evaluating 
this factor, HUD will consider how you have described outcome measures 
and benefits of your program including:
    (a) The degree to which lead hazard control work will be done in 
conjunction with other housing-related activities (i.e., 
rehabilitation, weatherization, correction of code violations, and 
other similar work), or your plan for the integration and coordination 
of lead hazard control activities into those activities in the future.
    (b) Plans to develop public/private lending partnerships to finance 
lead hazard control as part of acquisition and rehabilitation financing 
such as the use of Community Reinvestment Act ``credits'' by lending 
institutions or other financing strategies.

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    (c) Results of any specific plans and objectives established to 
implement and/or maintain a registry (listing) of lead-safe housing 
that is available to the public, or to incorporate the inclusion of the 
lead-safe status of properties in another publicly accessible address-
based property information system. Results could include how the 
information would be managed and affirmatively marketed to the public 
so that families (particularly low-income families with children under 
six years of age) can make informed decisions regarding their housing 
options. Prior grantee applicants must address any registry (listing) 
of lead-safe housing developed during the prior grant period by 
specifically discussing the availability, amount of information 
contained, and its maintenance.
    (d) The extent to which affirmatively furthering fair housing for 
all segments of the population is advanced by the proposed activities. 
(This section does not apply to Native American Tribes.) Detail how 
your proposed work plan will support the community's efforts to 
affirmatively further affordable housing and discuss the impact of 
prior activities that have contributed to enhanced lead-safe housing 
opportunities.
    (e) The resulting impact of plans to adopt or amend statutes, 
regulations, or policies that will more fully integrate lead hazard 
control into community policies and priorities.
    (f) Results of activities to coordinate and cooperate with other 
organizations that will lead to a reduction in lead risks to community 
residents. This could include documenting such activities as: free 
training to create a workforce properly trained in lead safe work 
practices; lead-safe repainting and remodeling; promotion of essential 
maintenance practices; and provision of lead dust testing to low-
income, privately-owned homes which may not receive lead hazard control 
assistance under this grant program.
    (g) How your program will be held accountable for meeting program 
goals, objectives, and the actions undertaken in implementing the grant 
program. Applicants should provide a description of the mechanism to 
assess progress and track performance in meeting the goals and 
objectives outlined in the work plan. Applicants should provide 
assurances that work plans and performance measures developed for the 
program will assist intended beneficiaries, and that work will be 
conducted in a timely and cost-effective manner.
    Note on Program Performance: Grantees shall take all reasonable 
steps to accomplish all lead hazard control activities outlined in an 
approved work plan within the approved period of performance. HUD will 
closely monitor grantee performance with particular attention placed on 
the completion of the number of units in the grant agreement, the 
expenditure of HUD grant funds as evidenced by drawdowns from the Line 
of Credit Control System (LOCCS), and other established community 
education, outreach and training objectives. HUD reserves the right to 
terminate the grant prior to the expiration of the period of 
performance if a grantee fails to meet established work plan benchmark 
milestones in implementing the approved program of activities.

Bonus Points (2 Points).

    Applicants may also meet the requirements listed in Section VI (C) 
of the General Section of this SuperNOFA for a possible award of two 
bonus points.

V. Application Submission Requirements for New and Prior Grantee 
Applicants

    (Grantee applicants eligible for a Performance-Based Renewal are to 
follow the submission requirements included in Appendix C of this Lead 
Hazard Control Grant Program NOFA)

(A) Applicant Information

    (1) Application Format. The application narrative response from new 
and eligible prior grantees to the Rating Factors is limited to a 
maximum of 25 pages (excluding appendices and worksheets). Your 
response must be typewritten on one side only on 8\1/2\'' x 11'' paper 
using a 12-point (minimum) font with not less than \3/4\'' margins on 
all sides. Appendices should be referenced and discussed in the 
narrative response. Materials provided in the appendices should 
directly apply to the rating factor narrative.
    (2) Application Checklist. Your application must contain all of the 
required information noted in this Program Section and the General 
Section of this SuperNOFA. These items include the standard forms, 
certifications, and assurances listed in the General Section of this 
SuperNOFA that are applicable to this funding (collectively referred to 
as the ``standard forms''). The standard forms can be found in Appendix 
B of the General Section of this SuperNOFA. In addition, the following 
items are to be included in an application:
    (a) Transmittal Letter. The applicant (or applicants) submitting 
the application, the dollar amount requested, the number of units to 
receive lead hazard control work, what the program funds are requested 
for, the nature of involvement with grassroots faith-based and other 
community-based organizations, and the name, mailing address, telephone 
number, and principal contact person of ``the applicant.''
    (b) Checklist and Submission Table of Contents (see Appendix A of 
this NOFA).
    (c) Abstract Summary. An abstract summary describing the goals and 
objectives of your proposed program (two page maximum). The abstract 
should briefly highlight the major goals and objectives established for 
the program.
    (d) Section V Forms. All forms as required by Section V (H) of the 
General Section of this SuperNOFA.
    (e) Budget. A detailed budget (total budget is the Federal share 
and matching contribution) with supporting cost justifications for all 
budget categories of your grant request. You must provide a separate 
estimate for the overall grant management element (Administrative 
Costs), which is more fully defined in Appendix B of this NOFA. The 
budget shall include not more than 10% for administrative costs and not 
less than 90% for direct project elements. A minimum of 60% of the 
total Federal amount requested must be dedicated to direct lead hazard 
control activities. A sufficient amount (two percent for most 
applicants) of the total Federal amount must be dedicated to activities 
to create a workforce properly trained in lead-safe work practices. If 
an applicant chooses not to include costs related to lead-safe work 
practices training in their work plan and budget, it must demonstrate 
that there is a workforce currently in place that is sufficient in size 
and is properly trained to carry out the work under the Lead Hazard 
Control Grant Program and the HUD Lead-Safe Housing Regulation. In the 
event of a discrepancy between grant amounts requested in various 
sections of the application, the amount you indicate on the HUD Form-
424 will govern as the correct value.
    (f) Matching Contribution. An itemized breakout (using the HUD 424) 
of your required matching contribution, including:
    (i) Values placed on donated in-kind services;
    (ii) Letters or other evidence of commitment from donors; and
    (iii) The amounts and sources of contributed resources.
    (g) Application Forms. Standard Forms SF-LLL and HUD Forms 2880, 
2990, 2991, 2993, and 2994.

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    (h) Grant Partners. Contracts, Memoranda of Understanding or 
Agreement, letters of commitment or other documentation describing the 
proposed roles of agencies, local broad-based task forces, 
participating grassroots faith-based and other community or 
neighborhood-based groups or organizations, local businesses, and 
others working with the program.
    (i) Consolidated Plan Element. A copy of the lead hazard control 
element included in your current program year's Consolidated Plan. 
(This does not apply to Native American Tribes) You should include the 
discussion of any lead-based paint issues in your jurisdiction's 
Analysis of Impediments, particularly as it addresses your target 
areas.
    (j) Rating Factor Response. Narrative responses to the five rating 
factors.
    (B) Proposed Activities. Unless otherwise noted in this NOFA, all 
applicants must, at a minimum, describe the proposed activities in the 
narrative responses to the rating factors. Your narrative statement 
must be numbered in accordance with each factor for award (Rating 
Factors 1 through 5). Please see Section V of the General Section of 
this SuperNOFA for additional requirements and submittal procedures.
    (C) Applicant Debriefing. See Section XI(A)(d) of the General 
Section of this SuperNOFA for information about applicant debriefing.

V. Corrections to Deficient Applications

    See Section VIII of the General Section of this SuperNOFA for 
information about corrections to deficient applications.

VI. Environmental Requirements

    (A) Environmental Impact. See Section IX of the General Section of 
this SuperNOFA for information about the Finding of No Significant 
Impact.
    (B) Environmental Requirements. Recipients of lead-based paint 
hazard control grants must comply with 24 CFR Part 58--``Environmental 
Review Procedures for Entities Assuming HUD Environmental 
Responsibilities.'' Recipients are prohibited from committing or 
expending HUD and non-HUD funds on the project until HUD approves the 
recipient's Request for the Release of Funds (form HUD 7015.15) or the 
recipient has determined that the activity is either Categorically 
Excluded, not subject to the related Federal laws and authorities 
pursuant to 24 CFR 58.35(b) or Exempt pursuant to 24 CFR 58.34. For 
Part 58 procedures, see http://www.hud.gov/offices/cpd/energyenviron/
environment/index.cfm. For assistance, contact Karen Choi, the Office 
of Healthy Homes and Lead Hazard Control Environmental Officer at (213) 
894-8000 x3015 (this is not a toll-free number) or the HUD 
Environmental Review Officer in the HUD Field Office serving your area. 
If you are a hearing-or speech-impaired person, you may reach the 
telephone number via TTY by calling the toll-free Federal Information 
Relay Service at 1-800-877-8339. Recipients of a grant under this 
funded program will be given additional guidance in these 
responsibilities.

VII. HUD Reform Act of 1989

    The provisions of the HUD Reform Act of 1989 that apply to this 
NOFA are explained in the General Section of this SuperNOFA at Section 
XI (A) Public Access, Documentation and Disclosure

Appendix A

    Appendix A of this NOFA contains sample worksheets to assist you 
in your response to specific information requested in this NOFA. The 
submission of these worksheets are not mandatory, but have been 
developed to reduce the applicant's burden on providing this 
information.

Appendix B

    The description of Administrative Costs, Eligibility of HUD 
Assisted Housing, and Work Plan Guidance are included in this 
section of the NOFA.

Appendix C

    The eligibility criteria and submission requirements for current 
grantees eligible to submit a Performance-Based Renewal are included 
in this section of the NOFA.

BILLING CODE 4210-32-P

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BILLING CODE: 4210-32-C

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Appendix B

    This appendix to this NOFA contains the list of the standard 
forms, certifications and assurances used by the programs that are 
part of this NOFA. Listed forms are located in Appendix B of the 
General Section of the SuperNOFA.
    The following forms are to be used for the Programs listed in 
this NOFA
    (1) Form HUD-424
    (2) Form HUD-424 B
    (3) Form HUD-424 C
    (4) Form HUD-424 CBW
    (5) Form HUD Logic Model Form
    (6) Application Checklist and Submission Table of Contents
    (7) Ethnicity and Race Data
    HUD has consolidated many of its application forms into a single 
HUD-424 form. The new HUD-424 consolidates budget-reporting forms 
for both construction and non-construction projects into a single 
form and eliminates having to have the following separate 
certifications: Certification for a Drug-Free Workplace (HUD-50070), 
the Certification of Payments to Influence Federal Transactions 
(HUD-50071), and the Certification Regarding Debarment and 
Suspension (HUD-2992).
    New form HUD-424 replaces SF-424 and HUD-424 M
    HUD-424 B replaces SF-424 B and D and HUD-50070, 50071 and 2992.
    HUD-424 C and CB replaces SF-424 A and C
    The HUD-424 CBW is added as a common detailed Budget Worksheet 
and replaces various budget worksheets used throughout the 
Department.
    (A) Administrative Costs. Administrative costs that may be 
applicable to the programs included in this NOFA are discussed 
below:

I. Purpose

    The intent of this HUD grant program is to allow the Grantee to 
be reimbursed for the reasonable direct and indirect costs, subject 
to a top limit, for overall management of the grant. In most 
instances the grantee, whether a State or a local government, 
principally serves as a conduit to pass funding to sub-grantees, 
which are to be responsible for the conducting lead-hazard reduction 
work. Congress set a top limit of ten percent of the total grant sum 
for the grantee to perform the function of overall management of the 
grant program, including passing on funding to sub-grantees. The 
cost of that function, for the purpose of this grant, is defined as 
the ``administrative cost'' of the grant, and is limited to ten 
percent of the total grant amount. The balance of ninety percent or 
more of the total grant sum is reserved sub-grantees or other 
direct-performers of lead-hazard identification and reduction work. 
Lead hazard identification and reduction includes, but is not 
necessarily limited to outreach, training, enrollment, lead paint 
inspection/risk assessments, interim controls, hazard abatement, 
clearance documentation, blood lead testing, and public education.

II. Administrative Costs: What They Are Not

    For the purposes of this HUD grant program for States and local 
governments to provide support for the evaluation and reduction of 
lead-hazards in low- and moderate-income, private target housing, 
the term ``administrative costs'' should not be confused with the 
terms ``general and administrative cost,'' ``indirect costs,'' 
``overhead,'' and ``burden rate.'' These are accounting terms 
usually represented by a government-accepted standard percentage 
rate. The percentage rate allocates a fair share of an 
organization's costs that cannot be attributed to a particular 
project or department (such as the chief executive's salary or the 
costs of the organization's headquarters building) to all projects 
and operating departments (such as the Fire Department, the Police 
Department, the Community Development Department, the Health 
Department or this program). Such allocated costs are added to those 
projects' or departments' direct costs to determine their total 
costs to the organization.

III. Administrative Costs: What They Are

    For the purposes of this HUD grant program, ``Administrative 
Costs'' are the grantee's allowable direct costs for the overall 
management of the grant program plus the allocable indirect costs. 
The allowable limit of such costs that can be reimbursed under this 
program is ten (10) percent of the total grant sum. Should the 
grantee's actual costs for overall management of the grant program 
exceed ten percent of the total grant sum, those excess costs shall 
be paid for by the grantee. However, excess costs paid for by the 
grantee may be shown as part of the requirement for cost-sharing 
funds to support the grant.

IV. Administrative Costs: Definition

A. General

    Administrative costs are the allowable, reasonable, and 
allocable direct and indirect costs related to the overall 
management of the HUD grant for lead-hazard reduction activities. 
Those costs shall be segregated in a separate cost center within the 
grantee's accounting system, and they are eligible costs for 
reimbursement as part of the grant, subject to the ten percent 
limit. Such administrative costs do not include any of the staff and 
overhead costs directly arising from specific sub-grantee program 
activities eligible under Section II (C) of this NOFA, because those 
costs are eligible for reimbursement under a separate cost center as 
a direct part of project activities.
    The grantee may elect to serve solely as a conduit to sub-
grantees, who will in turn perform the direct program activities 
eligible under NOFA Section II (C), or the grantee may elect to 
perform all or a part of the direct program activities in other 
parts of its own organization, which shall have their own 
segregated, cost centers for those direct program activities. In 
either case, not more than 10 percent of the total HUD grant sum may 
be devoted to administrative costs, and not less than 90% of the 
total grant sum shall be devoted to direct program activities. The 
grantee shall take care not to mix or attribute administrative costs 
to the direct project cost centers.

B. Specific

    Reasonable costs for the grantee's overall grant management, 
coordination, monitoring, and evaluation are eligible administrative 
costs. Subject to the ten percent limit, such costs include, but are 
not limited to, necessary expenditures for the following goods, 
activities and services:
    (1) Salaries, wages, and related costs of the grantee's staff, 
the staff of affiliated public agencies, or other staff engaged in 
grantee's overall grant management activities. In charging costs to 
this category the recipient may either include the entire salary, 
wages, and related costs allocable to the program for each person 
whose primary responsibilities (more than 65% of their time) with 
regard to the grant program involve direct overall grant management 
assignments, or the pro rata share of the salary, wages, and related 
costs of each person whose job includes any overall grant management 
assignments. The grantee may use only one of these two methods 
during this program. Overall grant management includes the following 
types of activities:
    (a) Preparing grantee program budgets and schedules, and 
amendments thereto;
    (b) Developing systems for the selection and award of funding to 
sub-grantees and other sub-recipients;
    (c) Developing suitable agreements for use with sub-grantees and 
other sub-recipients to carry out grant activities;
    (d) Developing systems for assuring compliance with program 
requirements;
    (e) Monitoring sub-grantee and sub-recipient activities for 
progress and compliance with program requirements;
    (f) Preparing presentations, reports, and other documents 
related to the program for submission to HUD;
    (g) Evaluating program results against stated objectives;
    (h) Providing local officials and citizens with information 
about the overall grant program; however, a more general education 
program, helping the public understand the nature of lead hazards, 
lead hazard reduction, blood-lead screening, and the health 
consequences of lead poisoning is a direct project support 
activity);
    (i) Coordinating the resolution of overall grant audit and 
monitoring findings; and
    (j) Managing or supervising persons whose responsibilities with 
regard to the program include such assignments as those described in 
paragraphs (a) through (i).
    (2) Travel costs incurred for official business in carrying out 
the overall grant management;
    (3) Administrative services performed under third party 
contracts or agreements, for services directly allocable to grant 
management such as: legal services, accounting services, and audit 
services;
    (4) Other costs for goods and services required for and directly 
related to the overall management of the grant program; and 
including such goods and services as telephone, postage, rental of 
equipment, renter's insurance for the program management space, 
utilities, office supplies, and rental and maintenance (but not 
purchase) of office space for the program.
    (5) The fair and allocable share of grantee's general costs that 
are not directly attributable to specific projects or operating 
departments such as salaries, office expenses and other

[[Page 21309]]

related costs for local officials (e.g., mayor and city council 
members, etc.), and expenses for a city's legal or accounting 
department which are not charged back to particular projects or 
other operating departments. If a grantee has an established burden 
rate, it should be used; if not, the grantee shall be assigned a 
negotiated provisional burden rate, subject to final audit.

(B) Eligibility of HUD-Assisted Housing

    Eligibility of HUD-associated ``eligible'' housing units to 
participate under HUD's lead-based paint hazard control grant 
program.
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    (C) Section 1011 of Title X Section 217 of Public Law 104-134 
(the Omnibus Consolidated Rescissions and Appropriations Act of 
1996, 110 Stat. 1321, approved April 26, 1996) amended Section 
1011(a) of the Residential Lead-Based Paint Hazard Reduction Act of 
1992 (Title X) to read as follows:

Sec. 1011 Grants for Lead-Based Paint Hazard Reduction in Target 
Housing

    (a) General Authority. The Secretary is authorized to provide 
grants to eligible applicants to evaluate and reduce lead-based 
paint hazards in housing that is not federally assisted housing, 
federally owned housing, or public housing, in accordance with the 
provisions of this section. Grants shall only be made under this 
section to provide assistance for housing which meets the following 
criteria--
    (1) For grants made to assist rental housing, at least 50 
percent of the units must be occupied by or made available to 
families with incomes at or below 50 percent of the area median 
income level and the remaining units shall be occupied or made 
available to families with incomes at or below 80 percent of the 
area median income level, and in all cases the landlord shall give 
priority in renting units assisted under this section, for not less 
than 3 years following the completion of lead abatement activities, 
to families with a child under the age of six years, except that 
buildings with five or more units may have 20 percent of the units 
occupied by families with incomes above 80 percent of area median 
income level:
    (2) For grants made to assist housing owned by owner-occupants, 
all units assisted with grants under this section shall be the 
principal residence of families with income at or below 80 percent 
of the area median income level, and not less than 90 percent of the 
units assisted with grants under this section shall be occupied by a 
child under the age of six years or shall be units where a child 
under the age of six years spends a significant amount of time 
visiting; and
    (3) Notwithstanding paragraphs (1) and (2), Round II grantees 
who receive assistance under this section may use such assistance 
for priority housing.

(D) Elements of a State Certification Program

    To be eligible to receive a Lead-Based Paint Hazard Control 
grant, an applicant must be a State, tribal or local (city or 
county) government. State government and Native American tribal 
applicants must have an EPA approved State program for certification 
of lead-based paint contractors, inspectors, and risk assessors in 
accordance with 40 CFR 745.

Background

    In October 1992, Congress passed the Residential Lead-Based 
Paint Hazard Reduction Act (Title X of the Housing and Community 
Development Act of 1992). Congress assigned Federal responsibility 
to the Environmental Protection Agency (EPA) for the definition, 
implementation, and oversight of State and Tribal Certification 
Programs for workers, contractors, and inspectors engaged in the 
detection and reduction of lead-based paint hazards. This 
legislation required EPA to develop regulations on accreditation of 
training programs, the certification of contractors and the training 
of workers engaged in lead-based paint activities. In addition, EPA 
was directed to issue work practice standards. Under the statute, 
lead-based paint activities are defined as:
    [sbull] In the case of target housing: Risk assessment, 
inspection, and abatement; and
    [sbull] In the case of any public building constructed before 
1978, commercial building, bridge, or other structure or 
superstructure: identification of lead-based paint and materials 
containing lead-based paint, deleading, removal of lead from 
bridges, and demolition.
    On August 29, 1996, EPA promulgated a final regulation that 
established requirements for lead-based paint activities in Target 
Housing and Child Occupied Facilities.
    [sbull] 40 CFR part 745 Subpart L addressed the requirements for 
the certification of individuals and the accreditation of training 
programs as well as work practice standards.
    [sbull] 40 CFR part 745 Subpart Q addresses the procedures and 
requirements for the approval of State programs that would be 
administered and enforced in lieu of the Federal Program in that 
State.
    [sbull] 40 CFR 745.325 and 745.327 establishes the minimum 
programmatic and enforcement elements that a program must have in 
order to be authorized. States had until August 30, 1998 to receive 
authorization from the Agency. After that date, EPA will administer 
the Federal program in that State.
    Any State or Tribe applying for a HUD Lead-Based Paint Hazard 
Control Grant must have implemented legislation and programs that 
fulfills the requirements of 40 CFR 745.325 and 327and received EPA 
authorization for such a program. States and Tribes should be aware 
that HUD will not award grants for lead-based paint hazard 
evaluation or reduction to States without an EPA authorized program 
under section 404 of the Toxic Substances Control Act. An EPA 
administered, training and certification program established in the 
place of an approved state program does not satisfy the requirement 
for a State applicant to have a Federally-authorized State program. 
State or Tribal applicants must have received EPA authorization for 
their program as of the date the Lead-Based Paint Hazard Control 
Grant program applications are due at HUD. State and Tribal 
applicants should coordinate with the appropriate EPA Region to 
ensure their application for an authorized program is approved by 
the due date for the grant applications. All local government 
applicants will be required to use performers certified by their 
state or the EPA to perform lead hazard control work in their state.
    Questions regarding the EPA authorization process should be 
directed to your EPA Regional Lead Coordinator.

(C) Work Plan Guidance

    The work plan shall be submitted to the Government Technical 
Representative (GTR) and shall consist of the goals and specific 
time-phased objectives established for each of the major activities 
and tasks required to implement the program. These major activities 
and tasks are outlined in the Quarterly Progress Reporting System 
(Form-HUD-96006) and include: (1) Program Management and Capacity 
Building including data collection and program evaluation; (2) 
Community Education, Outreach and Training; and (3) Lead Hazard 
Activities including testing, interventions conducted, and 
relocation.

    Note: Approval of the work plan by the GTR and HUD approval of 
the Release of Funds Request (HUD Form 7015.15) are required prior 
to conducting lead hazard control intervention work in homes.

    The work plan narrative shall include:
[ballot] The management plan that describes how the project will be 
managed, and the timeline for staffing the program, establishing a 
lead-based paint contractor pool, and obtaining HUD approval for the 
Release of Funds Request (HUD Form 7015.15);
[ballot] A detailed description of how assistance and funding will 
flow from the grantee to the actual performers of the hazard 
reduction work;
[ballot] The selection process for sub-grantees, sub-contractors 
and/or sub-recipients;
[ballot] The identification, selection, and prioritization process 
for the particular properties where lead hazard control 
interventions are to be conducted;
[ballot] * A description of the financing mechanism used to support 
lead hazard control work in units (name of administering agency, 
eligibility requirements, type of financing (grant, forgivable or 
deferred loans, private sector financing, etc), any owner 
contribution requirement, and the terms, conditions and amounts of 
assistance available (include affordability terms and forgiveness 
and recapture of funds provisions);
[ballot] The inspection/risk assessment testing procedures using EPA 
standards to identify lead hazards and to conduct clearance testing. 
(Dust wipe samples, soil samples and any paint samples to be 
analyzed by a laboratory must be analyzed by a laboratory recognized 
by the EPA National Lead Laboratory Accreditation Program (NLAPP));
[ballot] * The process for developing work specifications and bids 
on properties selected for lead hazard control;
[ballot] The levels of intervention and clearance procedures to be 
conducted for units enrolled;
[ballot] The number of rental-occupied, vacant, and owner-occupied 
units proposed for each intervention level;
[ballot] The relocation plan that will be carried out for residents 
required to be out of their homes during hazard control activities;
[ballot] The education, outreach, and training activities to be 
undertaken by the program;
[ballot] The blood lead testing and other health measures to be 
undertaken to protect children and other occupants of units 
undergoing lead hazard control work; and
[ballot] The evaluation process used to measure program performance.


[[Page 21312]]


    * To be added as amendment to Work Plan Policy Guidance Issuance 
2001-03

Objectives and Milestones

Specific and measurable performance objectives and milestones to be 
developed in support of the work plan narrative include:

[ballot] The overall objectives for lead hazard control activities 
including the total number of lead hazard evaluations, units 
projected to be completed and cleared, and the expenditure of 
Federal grant funds (HUD Agreement HUD-1044). Quarterly performance 
milestones are to be developed to achieve the overall objectives for 
these activities;
[ballot] The overall objectives for community education, outreach, 
and training activities. Quarterly performance milestones are to be 
developed to achieve the overall objectives for these activities;
[ballot] Performance benchmarks for 36-, and 42-month grants have 
been developed. These benchmarks are included in Appendix A of this 
NOFA and can also be found on the HUD website at: http://
www.hud.gov/offices/lead/grantfrm/hudgrantee.cfm.
    Development of your work plan should include and reflect these 
benchmark standards.

Appendix C

(1) General Instructions and Guidelines for Performance-Based Renewal 
Applicants

    Current lead hazard control grantees that meet the eligibility 
requirements described below are eligible to submit an application 
for a Performance-Based Renewal to their current grant. If a current 
lead hazard control grantee does not meet these threshold 
requirements, they are not eligible to submit a Performance-Based 
Renewal application.

(2) Preparing Your Application

Transmittal Letter

    Prepare a brief letter applying for the Performance-Based 
Renewal and signed by the Chief Executive or other authorized 
official. The transmittal letter should indicate the applicant 
agency, the amount of the grant requested for a Performance-Based 
Renewal, the amount of cash or in-kind matching contributions and 
the number of housing units in which lead hazard control will be 
conducted. Also include the name, telephone number, facsimile 
number, and e-mail address of the individual to contact for further 
information pertaining to the application.

Abstract Summary

    Prepare a brief (two page maximum) abstract summary describing 
your jurisdiction, and the proposed lead-based paint hazard control 
project. Include the following items (be specific and concise):
    [sbull] The total amount of the Federal request and the amount 
of the matching contribution for the entire period of performance 
(including your current grant period and up to 36-months additional 
period);
    [sbull] The number of units in which lead hazard control 
activities will be conducted (include your current grant agreement 
and those to be treated during the 36-month modification period);
    [sbull] The organization(s) that will participate in the 
program, either conducting lead hazard control activities or in 
other roles;
    [sbull] Demographic, socio-economic and housing characteristics 
of neighborhood(s) selected for hazard control activities;
    [sbull] Your prior activities, experience and achievements in 
residential lead-based paint hazard control work or related work, 
including testing and treatment methods, and collaboration with 
other agencies;
    [sbull] The scope and magnitude of the proposed lead hazard 
control project that details the area selected, number of housing 
units, intended beneficiaries, and the projected impact on the 
neighborhood/jurisdiction; how the work will be accomplished;
    [sbull] Any changes proposed in your work plan strategy for the 
36-month proposed extension period.

Required Forms

    Prepare and submit the following forms (found in this NOFA) as 
part of your application:
    Current lead hazard control grantees applying for Performance-
Based Renewal Grant are required to prepare and submit the following 
forms as part of their application package.
    HUD Form--424
    HUD Form--424B
    HUD Form--424C
    HUD Form--424CBW
    HUD Form--2993
    * These forms are found in the General Section of this SuperNOFA 
and are available as fillable Adobe Reader (PDF) or Word (DOC) 
formats from the HUD website at: www.hudclips.org.
    Performance-Based Renewal applicants are encouraged to use the 
electronic version of the HUD Form 424CBW.

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21345]]


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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21347]]



Funding Availability for Healthy Homes and Lead Technical Studies

Program Overview

    Purpose of the Program. To fund technical studies to improve 
methods for detecting and controlling lead-based paint and other 
residential health and safety hazards. The purpose of the Healthy Homes 
Technical Studies program is to improve our knowledge of housing-
related health hazards, and to improve or develop new hazard assessment 
and control methods. The purpose of the Lead Technical Studies program 
is to improve methods for detecting and controlling residential lead-
based paint hazards.
    Available Funds. Approximately $2 million for healthy homes 
technical studies in FY 2003 funds; and approximately $3 million for 
lead technical studies, of which approximately $1.25 million is FY 2003 
funds, and approximately $1.75 million is previous-year recaptured 
funds.
    Eligible Applicants. Academic, not-for-profit and for-profit 
institutions located in the U.S., State and local governments, and 
federally recognized Native American tribes are eligible to apply. 
Historically Black Colleges and Universities (HBCUs) are also eligible 
to apply under a set-aside for technical studies on increasing the 
efficacy of lead hazard control (LHC) programs in low-income urban 
minority communities. For-profit institutions are not allowed to earn a 
fee.
    Application Deadline. June 10, 2003.
    Match. None required.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this Notice of Funding 
Availability and the following additional information.

I. Addresses And Application Submission Procedures

(A) Application Submission

    See the General Section of this SuperNOFA for specific procedures 
concerning the form of application submission (e.g., mailed 
applications, express mail or overnight delivery). There is no 
Application Kit. All the information required to submit an application 
is contained in this NOFA.

(B) Address for Submitting Applications

    You, the applicant, must submit a complete application to: 
Department of Housing and Urban Development, Office of Healthy Homes 
and Lead Hazard Control, ATTN: Lead and Healthy Homes Technical Studies 
Program, 451 Seventh Street, SW., Room P3206, Washington, DC 20410.

(C) For Further Information and Technical Assistance

    You may contact Dr. Peter Ashley, Office of Healthy Homes and Lead 
Hazard Control, at the address above; telephone (202) 755-1785, 
extension 115 (this is not a toll-free number) or via email at Peter--
[email protected]. If you are a hearing-or speech-impaired person, you 
may reach the above telephone numbers via TTY by calling the toll-free 
Federal Information Relay Service at 1-800-877-8339.

II. Authority, Funding Amounts, And Eligibility

(A) Authority

    These grants are authorized under sections 1011(g)(1), 1011(o), 
1051-1053 of the Residential Lead Based Paint Hazard Reduction Act of 
1992, which is Title X of the Housing and Community Development Act of 
1992; sections 501 and 502 of the Housing and Urban Development Act of 
1970; and the Consolidated Appropriations Resolution of 2003, Public 
Law 108-7, signed February 20, 2003.

(B) Funding Available

    (1) Healthy Homes Technical Studies. Approximately $2 million from 
HUD's Fiscal Year (FY) 2003 Healthy Homes Initiative appropriation set-
aside will be available to fund technical studies proposals. Grants or 
cooperative agreements will be awarded on a competitive basis according 
to the Rating Factors described in Section V(B). For technical studies 
under the Healthy Homes Initiative, HUD anticipates awarding three to 
six grants ranging from approximately $200,000 to approximately $1 
million. The project duration may be up to 24 months, except for 
projects involving human subjects that require Institutional Review 
Board (IRB) approval and periodic monitoring, which cannot exceed 30 
months. HUD reserves the right to approve no cost time extensions for a 
period not to exceed 12 months. The amounts included in this program 
are subject to change based on funds availability.
    (2) Lead Technical Studies. Approximately $3 million for lead 
technical studies, of which approximately $1.25 million is from the FY 
2003 lead technical assistance set-aside under the lead hazard 
reduction appropriation, and approximately $1.75 million is previous-
year recaptured funds, will be available to fund lead technical studies 
proposals in FY 2003. Of this amount, $2.25 million is set-aside for 
HBCUs. The remaining funds are available to fund technical studies 
applications from all eligible applicants. Grants or cooperative 
agreements will be awarded on a competitive basis according to the 
Rating Factors described in Section V(B) of this program section of 
this NOFA. For lead technical studies, HUD anticipates awarding between 
three and 30 grants ranging from approximately $100,000 to 
approximately $1 million. The project duration may be up to 24 months, 
except for projects involving human subjects that require Institutional 
Review Board (IRB) approval and periodic monitoring, which cannot 
exceed 30 months. HUD reserves the right to approve no cost time 
extensions for a period not to exceed 12 months. The amounts included 
in this program are subject to change based on funds availability.

(C) Eligible Applicants

    Academic and not-for-profit institutions located in the U.S., State 
and local governments, and federally recognized Native American tribes 
are eligible under all existing authorizations. For-profit firms also 
are eligible; however, they are not allowed to earn a fee (i.e., no 
profit can be made from the project). HBCUs, that is, educational 
institutions which satisfy the requirements of 34 CFR 608.2, are 
eligible to apply under the set-aside for the Lead Technical Studies 
Program, as described in sections III.A.3 and III.C.2(a), as well as 
under the general provisions of this NOFA for both the Healthy Homes 
Technical Studies Program and Lead Technical Studies Program. HBCUs 
should identify whether each application is being submitted under the 
set-aside or the general provisions. Federal agencies and federal 
employees are not eligible to submit applications. The General Section 
of this SuperNOFA provides additional eligibility requirements.

III. Program Description And Eligible Activities

(A) Program Description

    (1) General Goals and Objectives. The overall goal of the Healthy 
Homes and Lead Technical Studies grant program is to gain knowledge to 
improve the efficacy and cost-effectiveness of methods for evaluation 
and control of lead and other health and safety hazards in the home.
    Through the Healthy Homes Technical Studies Program, HUD is funding 
studies to improve our knowledge of housing-related health

[[Page 21348]]

hazards, and to improve or develop new hazard assessment and control 
methods, with a focus on the key hazards described in Appendix A of 
this program section of the NOFA.
    Through the Lead Technical Studies Program, HUD is helping 
``develop the capacity of eligible applicants * * * to carry out 
activities under'' lead hazard control grant programs, by advancing the 
technology and increasing the effectiveness of workers on LHC projects, 
in fulfillment of the requirements of Section 1011(g)(1) of Title X, 
and is ``conduct[ing] research to develop improved methods for 
evaluating (and) reducing lead-based paint hazards in housing,'' and 
related topics, in fulfillment of the requirements of sections 1051 and 
1052 of Title X.
    HUD encourages applicants to consider using the ``community based 
participatory research'' approach, where applicable, in the design and 
implementation of both healthy homes and lead technical studies (see 
e.g., http://www.niehs.nih.gov/translat/cbpr/cbpr.htm).
    A table of examples of current Healthy Homes and Lead Technical 
Studies projects being funded by HUD can be found in Appendix C.
    (2) Healthy Homes Initiative. The Healthy Homes Initiative (HHI), 
which includes the Healthy Homes Technical Studies Program, departs 
from the more traditional approach of attempting to correct one hazard 
at a time. In April 1999, HUD submitted to Congress a preliminary plan 
containing a full description of the HHI. The preliminary plan (Summary 
and Full Report) and a description of the HHI are available on the HUD 
Web site at www.hud.gov/offices/lead/hhi/index.cfm.
    In addition to deficiencies in basic housing facilities that may 
impact health, changes in the U.S. housing stock and more sophisticated 
epidemiological methods and biomedical research have led to the 
identification of new and often more subtle health hazards in the 
residential environment (e.g., asthma and mold-induced illness). While 
such hazards will tend to be found disproportionately in housing that 
is substandard (e.g., structural problems, lack of adequate heat, 
etc.), such housing-related environmental hazards may also exist in 
housing that is otherwise of good quality. Appendix A of this program 
section of the NOFA briefly describes the housing-associated health and 
injury hazards HUD considers key targets for intervention. Appendix B 
of this program section of the NOFA lists the references that serve as 
the basis for the information provided in this program section.
    HUD is interested in promoting approaches that are cost-effective 
and efficient and that result in the reduction of health threats for 
the maximum number of residents for the long run, and, in particular, 
low-income children. The overall goals and objectives of the HHI are 
to:
    (a) Mobilize public and private resources, involving cooperation 
among all levels of government, the private sector, grassroots 
organizations, particularly including faith-based, and other community-
based, non-profit organizations to develop the most promising, cost-
effective methods for identifying and controlling housing-based 
hazards; and
    (b) Build local capacity to operate sustainable programs that will 
continue to prevent and, where they occur, minimize and control 
housing-based hazards in low- and very low-income residences when HUD 
funding is exhausted.
    With this NOFA, HUD hopes to advance the recognition and control of 
residential health and safety hazards and more closely examine the link 
between housing and health.
    The overall objectives of Healthy Homes technical studies projects 
to be funded through this NOFA include, but are not limited to:
    (i) Investigation of the epidemiology of housing-related hazards 
and illness and injury;
    (ii) Development and assessment of low-cost test methods and 
protocols for identification and assessment of housing-related hazards;
    (iii) Development and assessment of cost-effective methods for 
reducing or eliminating housing-related hazards;
    (iv) Evaluation of the effectiveness of housing interventions and 
public education campaigns, and barriers and incentives affecting 
future use of the most cost-effective strategies; and
    (v) Investigation of the health effects on children living in 
deteriorated housing and the impact on their development and 
productivity.

HUD has also developed resource papers on a number of topic areas of 
importance under the Healthy Homes Initiative, including mold, 
environmental aspects of asthma, carbon monoxide, and unintentional 
injuries. These papers can be downloaded from the HUD Web site at 
www.hud.gov/offices/lead/hhi.
    (3) Lead Technical Studies.
    (a) General. HUD has been actively engaged in a number of 
activities relating to lead-based paint as a result of the Lead-Based 
Paint Poisoning Prevention Act of 1971, as amended, 42 U.S.C. 4801-
4856. Sections 1051 and 1052 of the Lead-Based Paint Hazard Reduction 
Act of 1992 (Title X) (42 U.S.C. 4854 and 4854a) state that the 
Secretary of HUD, in cooperation with other federal agencies, shall 
conduct technical studies on specific topics related to the evaluation 
and subsequent mitigation of residential lead hazards. Section 1053 of 
Title X authorized HUD to spend funds to conduct these studies, under 
the Lead Hazard Control Grant Program's funding authorization in 
Section 1011(o). The HUD-sponsored technical studies program also 
responds to recommendations by the Task Force on Lead-Based Paint 
Hazard Reduction and Financing, which was established pursuant to 
section 1015 of Title X. The Task Force presented its final report to 
HUD and the Environmental Protection Agency (EPA) in July 1995. The 
Task Force Report, entitled ``Putting the Pieces Together: Controlling 
Lead Hazards in the Nation's Housing'' (see Appendix B of this program 
section of this NOFA), recommended that research be conducted on a 
number of key topics to address significant gaps in our knowledge of 
lead exposure and hazard control.
    The findings of technical studies will be used in part to update 
HUD's Guidelines for the Evaluation and Control of Lead-Based Paint 
Hazards in Housing (Guidelines), which were published in June 1995 and 
partly amended in September 1997. The Guidelines include state-of-the-
art procedures for all aspects of lead-based paint hazard evaluation 
and control. The Guidelines reflect the Title X framework for LHC, 
which distinguishes two types of control measures: interim controls and 
abatement of lead-based paint hazards. Interim controls are designed to 
address hazards quickly, inexpensively, and temporarily, while 
abatement is intended to produce a permanent solution. While the 
Guidelines recommend procedures that are effective in identifying and 
controlling lead hazards while protecting the health of abatement 
workers and occupants, HUD recognizes that targeted technical studies 
and field experience will result in future changes to the Guidelines. 
For availability of the Guidelines, see Appendix B.
    HUD is especially interested in the following lead technical 
studies topics:
    (i) Evaluation of interior and exterior LHC methodologies, 
especially novel approaches;
    (ii) The effectiveness of ongoing maintenance activities in 
controlling lead-based paint hazards; and

[[Page 21349]]

    (iii) Other areas of focus that are consistent with the overall 
goals of HUD's lead technical studies program.
    (b) HBCU set-aside. As noted in the Program Overview, above, HBCUs 
are defined as those listed in 34 CFR 608.2 (see, for example, 
www.ed.gov/offices/ope/hep/idues/hbculist.html). The lead technical 
studies program includes a set-aside of $2.25 million for HBCUs. This 
set-aside is established for HBCUs to expand their role and 
effectiveness in addressing community development needs, specifically 
for conducting technical studies focused on increasing the efficacy of 
LHC programs in low-income, minority communities, consistent with the 
purposes of title I of the Housing and Community Development Act of 
1974 in addressing critical social, economic, and environmental 
problems facing Nation's urban communities (see 42 U.S.C. 5301). Low-
income, minority children in these communities are at highest risk of 
suffering of exposure to lead-based paint hazards and subsequently 
developing lead poisoning (Morbidity and Mortality Weekly Report, 1997; 
Jacobs et al., 2002). The Department is aware that HBCUs are often 
involved in projects that address problems such as lead poisoning, that 
disproportionately affect low-income, minority populations. The goal of 
this set aside is to encourage HBCUs to apply their unique perspective 
on community issues and the community relationships that they have 
established, to design and implement technical studies to increase the 
efficacy of LHC programs in their communities and in additional 
communities, in accordance with section 1011(g)(1) of Title X, which 
requires HUD to ``develop the capacity of eligible applicants * * * to 
carry out activities under'' LHC grant programs.
    HBCU applications should understand that the ultimate goal of these 
LHC grant programs is to reduce the incidence of childhood lead 
poisoning by identifying and eliminating lead hazards in target, 
privately owned, housing (see FY 2003 NOFA for LHC grants). Important 
aspects of the HUD LHC grants include:
    (i) Working cooperatively with other governmental and community-
based organizations;
    (ii) Identifying target housing and recruiting owners into the 
program;
    (iii) Identifying lead-based paint hazards and developing work 
specifications for contractors;
    (iv) Awarding contracts and ensuring that work is completed;
    (v) Conducting outreach and education to residents and the 
community; and
    (vi) Promotion of job training, employment, and other economic 
opportunities for low-income and minority residents and businesses.
    LHC grantees are encouraged to employ hazard control interventions 
that are effective in eliminating lead hazards while minimizing (e.g., 
using interim controls instead of complete abatement) cost so that the 
largest number of housing units can be treated. HUD conducted an 
evaluation of the effectiveness of lead hazard interventions conducted 
by the initial recipients of the Department's lead-hazard control 
grants and these were found to be effective in reducing dust-lead 
levels (preliminary results were reported by Galke et al. 2001).

(B) Eligible Activities

    (1) Healthy Homes Technical Studies.
    (a) Evaluation of residential health and safety hazard assessment 
and control methodologies and approaches (including both existing 
methods and the evaluation of improved or novel approaches). Areas of 
particular interest to HUD include:
    (i) Improving indoor air quality, such as through cost-effective 
approaches to upgrading residential ventilation or improving control/
management of combustion appliances. Applicants should discuss how 
proposed approaches might affect residential energy costs (e.g., 
increasing air exchange rates resulting in an increase in heating 
costs);
    (ii) Improving or assessing the efficacy of current methods for 
residential Integrated Pest Management (IPM). IPM approaches focus on 
the use of economical means for managing pests, which incorporate 
information on the life cycles of pests and their interaction with the 
environment, while minimizing hazards to people, property, and the 
environment. HUD is particularly interested in IPM methods for reducing 
cockroach and/or rodent populations in multifamily housing;
    (iii) Controlling excess moisture and dust control measures (e.g., 
preventing track-in of exterior dust and soil, improved methods for 
interior dust cleaning) have been identified as key areas in the HHI 
Preliminary Plan;
    (iv) Evaluate the effectiveness of education and outreach methods 
designed to provide at-risk families with the knowledge to adopt self-
protective behaviors with respect to housing-related health hazards; 
and
    (v) Additional ideas will be considered with an open mind toward 
novel techniques and applications.
    (b) Analysis of existing data or generation of new data to improve 
knowledge regarding the prevalence and severity of specific hazards in 
various classes of housing, with a focus on low-income housing. 
Specific examples include:
    (i) The prevalence of carbon monoxide and other indoor air quality 
hazards;
    (ii) The prevalence and patterns of moisture problems and 
biological contaminants associated with excess moisture (e.g., fungi, 
bacteria, dust mites);
    (iii) The prevalence of specific childhood injury hazards in 
housing; and
    (iv) Improved understanding of the relationship between a 
residential exposure and childhood illness or injury.
    (c) Low-cost analytical techniques for the rapid, on- and off-site 
determination of environmental contaminants of concern (e.g., 
bioaerosols, pesticides, allergens).
    (i) Establish and validate any necessary procedures (e.g., such as 
extraction and/or digestion) that would work well with the field 
device/procedure;
    (ii) Improve old technology (e.g., colorimetric tests, titrimetric 
procedures) as well as examine and improve newer techniques; and
    (iii) Consider the safety, environmental impacts, and cost of the 
procedure, particularly as used in the field.
    (d) In proposing technical studies within the broad topic areas 
discussed in III.C.1(a) and III.C.1(b), applicants should consider:
    (i) The ``fit'' of the proposed hazard assessment and/or control 
methods within the overall goal of addressing ``priority'' health and 
safety hazards in a cost-effective manner;
    (ii) The efficacy of the proposed methods for hazard control and 
risk reduction (e.g., how long is effective hazard reduction 
maintained?);
    (iii) Consider where and how these methods would be applied and 
tested, and/or perform demonstration activities; and
    (iv) The degree to which your study will help develop practical, 
widely applicable methods and protocols or improve our understanding of 
a residential health hazard.
    Although HUD is soliciting proposals for technical studies on these 
broad topics, HUD will also consider funding applications for technical 
studies on topics that are relevant under the overall goals and 
objectives of this program, as described above. In such instances, the 
applicant should describe how the

[[Page 21350]]

proposed project activity addresses these overall goals and objectives.
    Applicants should consider the efficiencies that might be gained by 
working cooperatively with some of the recipients of HUD's Healthy 
Homes and Lead Hazard Control grants, which are widely distributed 
throughout the U.S. Information on current grantees is available at 
www.hud.gov/offices/lead.
    You may address one or more of the technical studies topic areas 
within your proposal, or submit separate applications for different 
topic areas.
    (2) Lead Technical Studies.
    (a) Set-Aside for Historically Black Colleges and Universities for 
Technical Studies on Increasing the Efficacy of Lead Hazard Control 
Programs in Low-Income, Urban Communities.
    Conduct studies focused on evaluating and improving the efficacy of 
LHC programs as conducted in low-income, urban communities. You are 
encouraged to focus on one or more important components of a LHC 
program, as discussed in section III.A.3, above, with the goal being to 
increase the effectiveness of that component (e.g., selection and 
recruitment of units, design of interventions, contracting, promotion 
of job training, outreach and education). You are encouraged to work 
with the organizations that are currently administering LHC programs as 
well as with the community in the design and implementation of your 
study. As noted in section III.A.1(i), above, you are encouraged to use 
the ``community-based participatory research'' approach, where 
applicable, in the design and implementation of your studies.
    In order that your studies can be relied upon for use in other 
communities and programs, it is important that your findings be 
statistically and programmatically verifiable. You are encouraged to 
use a study design that incorporates objective, quantitative measures 
of performance, and that assesses hypotheses that can be evaluated 
statistically based on the data obtained by your studies.
    Some examples of design options are:
    (i) Evaluate one or more components of an existing HUD LHC grant, 
propose a revised approach that reflects the findings of the 
evaluation, and evaluate the application of the revised approach;
    (ii) Compare the effectiveness of a component across two or more 
existing HUD LHC grants, propose a revised approach that reflects the 
findings of the evaluation, and evaluate the application of the revised 
approach; or
    (iii) Compare the effectiveness of one or more components among two 
or more jurisdictions, some of which have HUD LHC grants and some which 
do not, propose how jurisdictions without control grants could better 
achieve some of the goals of control grants, and evaluate the 
application of the proposed method in jurisdictions without LHC control 
grants.
    (b) Evaluation of Interior and Exterior Lead Hazard Control 
Methodologies, Especially Novel Approaches. Identify and evaluate new 
methods and/or techniques for lead-based paint hazard control. Identify 
materials and/or procedures that may be used for abatement or for 
interim controls. Show the potential utility of these methods for LHC 
and risk reduction. Evaluate critical elements and potential weaknesses 
of the methods or techniques, and address how to minimize the effect of 
each critical element and/or eliminate or mitigate each weakness. 
Demonstrate where and how these methods have been applied and tested, 
and/or perform demonstration activities. Illustrate the results 
obtained, and the costs involved. Recommend cost-effective changes to 
the program for inclusion in future HUD LHC grants, and for possible 
inclusion in future revisions to the Guidelines.
    (c) The Effectiveness of Ongoing Maintenance Program Activities in 
Controlling Lead-Based Paint Hazards. While a variety of lead abatement 
and interim control techniques have been evaluated for their 
effectiveness in controlling lead-based paint hazards at and after 
their implementation, there are few studies directly assessing the 
effectiveness of ongoing lead-based paint maintenance programs. 
Evaluate the effectiveness and feasibility of developing and 
implementing ongoing lead-based paint maintenance programs, identify 
program components for which particular implementation difficulties 
exist, and evaluate proposed measures for overcoming those 
difficulties. Such quantitative evaluation of program components could 
address whether and how technically-acceptable and cost-effective work 
practices are selected and implemented, how effective supervisors are 
in monitoring work activities to ensure that lead-based paint hazards 
are controlled and that dust and debris are contained and cleaned up 
during work, and how well clearance procedures (including necessary re-
cleaning) are integrated into the maintenance program, among other 
factors.
    (d) Other Focus Areas that are Consistent with the Overall Goals of 
HUD's Lead Technical Studies Program. Additional ideas will be 
considered with an open mind toward novel techniques and applications. 
Although HUD is soliciting proposals for technical studies on some 
specific topics, HUD will also consider funding applications for 
technical studies on topics which are relevant under the overall goals 
and objectives of the LHC technical studies program, as described 
above. In such instances, the applicant should describe how the 
proposed activity addresses these overall goals and objectives.

(C) Ineligible Activities

    (1) Purchase or lease of equipment having a per unit cost in excess 
of $5,000, unless prior written approval is obtained from HUD.
    (2) Medical treatment costs.

IV. Program Requirements

    In addition to the requirements listed in Section V of the General 
Section of this SuperNOFA, the applicant must comply with requirements 
of this Section IV.

(A) Administrative Costs

    There is a 10% maximum for administrative costs for successful 
applicants. Additional information about allowable administrative costs 
is provided in Appendix E of this program section of the NOFA.

(B) Period of Performance

    The period of performance cannot exceed 24 months from the time of 
award, except for projects involving human subjects that require 
Institutional Review Board (IRB) approval and periodic monitoring, 
which cannot exceed 30 months. The additional time is allowed for 
obtaining approval for such studies, under HUD regulation (24 CFR part 
60), which incorporates the Department of Health and Human Services' 
regulation of studies involving human subjects. In addition, HUD 
reserves the right to approve no cost time extensions for a total 
period not to exceed 12 months.

(C) Program Performance

    Grantees shall take all reasonable steps to accomplish all grant-
funded activities within the approved period of performance. HUD 
reserves the right to terminate the grant prior to the expiration of 
the period of performance if the grantee fails to make reasonable 
progress in implementing the approved program of activities.

(D) Certifications and Assurances

    In addition to the certifications mentioned in the Section V(H) of 
the General Section of this NOFA, you must comply with:
    (1) All relevant State and Federal regulations regarding exposure 
to and proper disposal of hazardous materials;
    (2) Any blood lead testing, blood lead level test results, and 
medical referral

[[Page 21351]]

and follow-up for children under six years of age will be conducted 
according to the recommendations of the Centers for Disease Control and 
Prevention (CDC), Preventing Lead Poisoning in Young Children (see 
Appendix B of this program section of the NOFA);
    (3) HUD technical studies grant funds will not replace existing 
resources dedicated to any ongoing project;
    (4) Laboratory analysis covered by the National Lead Laboratory 
Accreditation Program (NLLAP) will be conducted by a laboratory 
recognized under the program;
    (5) Human research subjects will be protected from research risks 
in conformance with Federal Policy for the Protection of Human 
Subjects, codified by HUD at 24 CFR part 60; and
    (6) The requirements of OSHA (e.g., 29 CFR part 1910 and/or 1926, 
as applicable) or the State or local occupational safety and health 
regulations, whichever are most stringent, will be met;
    (7) If an individual researcher or a research team submits the 
application, the institution administering the grant will meet the 
civil rights threshold in Section V of the General Section of this 
NOFA.

(E) Conducting Business in Accordance with HUD Core Values and Ethical 
Standards

    If awarded assistance under this NOFA, prior to entering into a 
grant agreement with HUD, you will be required to submit a copy of your 
code of conduct and describe the methods you will use to ensure that 
all officers, employees, and agents of your organization are aware of 
your code of conduct. See Section V of the General Section of the 
SuperNOFA for information about conducting business in accordance with 
HUD's core values and ethical standards.

(F) Participation in HUD-Sponsored Program Evaluation

    As a condition of the receipt of financial assistance under this 
NOFA, you will be required to cooperate with all HUD staff or 
contractors performing HUD-funded research and evaluation studies 
pertaining to the subject of the grant.

(G) HUD Reform Act of 1989

    The provisions of the HUD Reform Act of 1989 that apply to this 
NOFA are explained in the General Section of the NOFA at section XI.

V. Application Selection Process

(A) Threshold Requirements

    Applications that meet all of the threshold requirements will be 
eligible to be scored and ranked, based on the total number of points 
allocated for each of the rating factors described below in Section V 
(B) of this NOFA. Your application must receive a total score of at 
least 75 points to remain in consideration for funding.

(B) Rating and Ranking

    Awards will be made separately in rank order for Healthy Homes 
Technical Studies applications and for each category of Lead Technical 
Studies applications, within the limits of funding availability for 
each program.
    (1) Award Factors. Applications will be reviewed by a Source 
Evaluation Board which will assign each application a numerical score 
based on the rating factors presented below (see also section V(B) of 
the NOFA). Each factor is weighted as indicated by the number of points 
that are attainable for it. The maximum score that can be assigned to 
an application is 102 points. Applicants should be certain that these 
factors are adequately addressed in the project description (see 
Section 2) and accompanying materials. The five rating factors are 
listed below.
    Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Experience (30 points)
    Rating Factor 2: Need/Extent of the Problem (10 points)
    Rating Factor 3: Soundness of Approach (45 points)
    Rating Factor 4: Leveraging Resources (5 points)
    Rating Factor 5: Achieving Results and Program Evaluation (10 
points)
    RC/EZ/EC Bonus Points (2 points)
    TOTAL: 102 points
    Applicants are eligible to receive two bonus points for projects 
located within federally designated Renewable Communities (RC)/
Employment Zones (EZ)/Enterprise Communities (EC) (RC/EZ/ECs) and which 
will serve the residents of these communities (see Section VI of the 
General Section of this NOFA.
    You will receive one point under Rating Factor 3(1) for each of the 
applicable FY 2003 policy priorities that are adequately addressed in 
your application, up to a maximum of three points (see Section II of 
the General Section of this NOFA). Policy priorities that are 
applicable to the Lead and Healthy Homes Technical Studies NOFA are: 
(1) Improving our Nation's Communities (focus on distressed 
communities); (2) Providing Full and Equal Access to Grass-Roots Faith-
based and other Community-based Organizations in HUD Program 
Implementation; and (3) Colonias.
    Within each of the two technical studies program areas, you may 
address more than one of the technical study topic areas within your 
proposal (e.g., a healthy homes technical studies applicant can address 
multiple topics consistent with the HHI program objectives) or submit 
separate applications for different topic areas. You are encouraged to 
plan projects that can be completed over a short time period (e.g., 12 
to 24 months from the date of award (plus up to six months to 
accommodate approval by an IRB for human subjects research)), so useful 
information generated from the technical studies can be available for 
policy or program decisions and disseminated to the public as quickly 
as possible.
    Regarding the amount to be awarded to the selected applicants, 
please refer to the Negotiation section VI(D) in the General Section of 
this NOFA.
    (2) Partial Funding. In the selection process, HUD reserves the 
right to offer partial funding to any or all applicants. If you are 
offered a reduced grant amount, you will have a maximum of 14 calendar 
days to accept such a reduced award. If you fail to respond within the 
14-day limit, you shall be considered to have declined the award.
    (3) Remaining Funds. See section VI of the General Section of this 
NOFA for HUD's procedures if funds remain after all selections have 
been made within a category of the Lead Technical Studies Program.

(C) Rating Factors

    The factors for rating and ranking applicants, and maximum points 
for each factor, are provided below. The factors or their assigned 
points differ somewhat from those used for most program areas included 
in this NOFA because they have been amended for rating the unique 
aspects of technical study applications. The maximum number of points 
to be awarded is 102.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (30 Points)

    This factor addresses the extent to which you have the ability and 
organizational resources necessary to successfully implement your 
proposed activities in a timely manner. The rating of you, the 
``applicant,'' will include any sub-grantees, consultants, sub-
recipients, and members of consortia that are firmly committed to the 
project (generally, ``subordinate

[[Page 21352]]

organizations''). In rating this factor, HUD will consider the extent 
to which your application demonstrates:
    (1) The capability and qualifications of the principal investigator 
and key personnel (20 points). Qualifications to carry out the proposed 
study as evidenced by academic background, relevant publications, and 
recent (within the past 10 years) relevant research experience. 
Publications and research experience are considered relevant if they 
required the acquisition and use of knowledge and skills that can be 
applied in the planning and execution of the technical study that is 
proposed under this program section of this NOFA; and
    (2) Past performance of the study team in managing similar projects 
(10 points). Demonstrated ability to successfully manage various 
aspects of a complex technical study in such areas as logistics, study 
personnel management, data management, quality control, community study 
involvement (if applicable), and report writing, as well as overall 
success in project completion (i.e., projects completed on time and 
within budget). You should also demonstrate that your project would 
have adequate administrative support, including clerical and 
specialized support in areas such as accounting and equipment 
maintenance.

Rating Factor 2: Need/Extent of the Problem (10 Points)

    This factor addresses the extent to which there is a need for your 
proposed technical study. In responding to this factor, you should 
document in detail how your project would make a significant 
contribution towards achieving some or all of HUD's stated goals and 
objectives for one or more of the topic areas described in Sections III 
(A) and (C)(1)-(2). You should demonstrate how your proposed study 
addresses a need associated with an important housing-related health 
hazard, with an emphasis on children's health. Specific topics to be 
addressed for this factor include:
    (1) Provide a concise review of the health hazard that is addressed 
in your study and why you consider it a ``high priority'' hazard. If 
appropriate, include documented rates of illness or injury associated 
with the hazard, including local, regional, and national data;
    (2) Discuss how your proposed project would significantly advance 
the current state of knowledge for your focus area, especially with 
respect to the development of practical solutions; and
    (3) Discuss how you anticipate your study findings will be used to 
improve current methods for assessing or mitigating the hazard that 
your study addresses. Indicate why the method/protocol that would be 
improved through your study would be widely adopted (e.g., low cost, 
easily replicated, lack of other options).

Rating Factor 3: Soundness of Approach (45 Points)

    This factor addresses the quality of your proposed technical study 
plan. Specific components include:
    (1) Soundness of the study design (25 points). The project 
description/study design must be thorough and feasible, and reflect 
your knowledge of the relevant scientific literature. You should 
clearly describe how your study builds upon the current state of 
knowledge for your focus area. If possible, your study should be 
designed to address testable hypotheses, which are clearly stated. Your 
study design should be statistically based, with adequate power to test 
your stated hypotheses. The study design should be presented as a 
logical sequence of steps or phases, with individual tasks described 
for each phase. You should identify any important ``decision points'' 
in your study plan and you should discuss plans for data management, 
analysis and archiving.
    Indicate if you will address any of the Department's FY 2003 policy 
priorities that are applicable to this program (see Section II of the 
General Section of this NOFA for a description of these policy 
priorities). You will receive one point for each of the applicable 
policy priorities that are addressed in your application. Policy 
priorities that are applicable to the Healthy Homes and Lead Technical 
Studies programs are: (1) Improving the Quality of Life in Our Nation's 
Communities (focus on distressed communities); (2) Providing Full and 
Equal Access to Faith-Based and Other Community-Based Organizations in 
HUD Program Implementation; and (3) Colonias (improving housing 
conditions for families living in Colonias).
    (2) Quality assurance mechanisms (10 points). You must describe the 
quality assurance mechanisms that will be integrated into your project 
design to ensure the validity and quality of the results.
    (a) Areas to be addressed include acceptance criteria for data 
quality, procedures for selection of samples/sample sites, sample 
handling, measurement and analysis, and any standard/nonstandard 
quality assurance/control procedures to be followed. Documents (e.g., 
government reports, peer-reviewed academic literature) that provide the 
basis for your quality assurance mechanisms should be cited.
    (b) If your project involves human subjects in a manner which 
requires Institutional Review Board (IRB) approval and periodic 
monitoring, address how you will obtain such approval and your 
monitoring plan (before you can receive funds from HUD for activities 
that require IRB approval, you must provide an assurance that your 
study has been reviewed and approved by an IRB and evidence of your 
organization's ``institutional assurance;'' see Section VI(A)(6)). 
Describe how you will provide informed consent (e.g., from the 
subjects, their parents or their guardians, as applicable) to help 
ensure their understanding of, and consent to, the elements of informed 
consent, such as the purposes, benefits and risks of the research. 
Describe how this information will be provided and how the consent will 
be collected. For example, describe your use of ``plain language'' 
forms, flyers and verbal scripts, and how you plan to work with 
families with limited English proficiency or primary languages other 
than English, and with families including persons with disabilities.
    (3) Project management plan (8 points). The proposal should include 
a management plan that provides a schedule for the completion of major 
activities, tasks and deliverables, with an indication that there will 
be adequate resources (e.g., personnel, financial) to successfully meet 
the proposed schedule. You are encouraged to plan a project with a 
duration of 24 months or less (or 30 months or less for projects 
requiring IRB approval). You should include preparation of one or more 
articles for peer-reviewed academic journals and submission of the 
draft(s) to the journal(s) after HUD acceptance during the period of 
performance of your grant.
    (4) Budget Proposal (2 points).
    (a) Your budget proposal should thoroughly estimate all applicable 
direct and indirect costs, and be presented in a clear and coherent 
format in accordance with the requirements listed in the General 
Section of this NOFA. HUD is not required to approve or fund all 
proposed activities. Your budget should be submitted in the format 
provided in Appendix D (an electronic spreadsheet is available on HUD's 
Web site, www.hud.gov/offices/lead). You must thoroughly document and 
justify all budget categories and costs (Part B of Standard Form 424A) 
and all major tasks, for yourself, sub-recipients, partners, major 
subcontractors, joint

[[Page 21353]]

venture participants, or others contributing resources to the project 
(especially those proposed to receive more than 10% of the federal 
budget request). Your budget proposal should be activity- and task-
related.
    (b) Your narrative justification associated with these budgeted 
costs should be included as an attachment to the Total Budget (Federal 
Share and Matching), but does not count in the 25-page limit for this 
submission.
    (c) The application will not be rated on the proposed cost; 
however, cost will be considered in addition to the rated factors to 
determine the proposal most advantageous to the Federal government. 
Cost will be the deciding factor when proposals ranked under the listed 
factors are considered acceptable and are substantially equal.

Rating Factor 4: Leveraging Resources (5 Points)

    Your proposal should demonstrate that the effectiveness of HUD's 
Healthy Homes and Lead Technical Studies grant funds is being increased 
by securing other public and/or private resources or by structuring the 
project in a cost-effective manner, such as integrating the project 
into an existing study. Resources may include funding or in-kind 
contributions (such as services, facilities or equipment) allocated to 
the purpose(s) of your project. Staff and in-kind contributions should 
be given a monetary value.
    You should provide evidence of leveraging/partnerships by attaching 
to your application the following: letters of firm commitment; 
memoranda of understanding; or agreements to participate from those 
entities identified as partners in the project efforts. Each letter of 
commitment, memorandum of understanding, or agreement to participate 
must include the organization's name, proposed level of commitment 
(with monetary value) and responsibilities as they relate to specific 
activities or tasks of your proposed program. The commitment must also 
be signed by an official of the organization legally able to make 
commitments on behalf of the organization.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    This factor emphasizes HUD's commitment to ensuring that applicants 
keep promises made in their applications and assess their performance 
to ensure performance goals are met. Achieving results means you, the 
applicant, have clearly identified the benefits or outcomes of your 
program. Outcomes are ultimate goals. Benchmarks or outputs are interim 
activities or products that lead to the ultimate achievement of your 
goals.
    Program evaluation requires that you, the applicant, identify 
program outcomes, interim products or benchmarks, and performance 
indicators that will allow you to measure your performance. Performance 
indicators should be objectively quantifiable and measure actual 
achievements against anticipated achievements. Your evaluation plan 
should identify what you are going to measure, how you are going to 
measure it, and the steps you have in place to make adjustments to your 
work plan if performance targets are not met within established 
timeframes.
    This new rating factor reflects HUD's goal to embrace high 
standards of ethics, management and accountability. In evaluating this 
factor, HUD will consider how you have described outcome measures and 
benefits of your program.
    In your response to this Rating Factor you are to discuss the 
performance goals for your project and identify specific outcome 
measures. You are also to describe how the outcome information will be 
obtained, documented, and reported. You must complete and return the 
Logic Model Form included in Appendix B of the General Section of the 
SuperNOFA showing your proposed project long-term, mid-term, short-term 
and final results, and how they support HUD's departmental goals and 
objectives. Information about developing a Logic Model is available at 
www.hud.gov.
    Also, in responding to this factor, you should:
    (a) Identify benchmarks that you will use to track the progress of 
your study;
    (b) Identify important study milestones (e.g., the end of specific 
phases in a multiphased study), which should also be clearly indicated 
in your study timeline;
    (c) Identify milestones that are critical for achieving study 
objectives (e.g., recruitment of study participants, developing a new 
analytical protocol), potential obstacles in meeting these objectives, 
and how you would respond to these obstacles;
    (d) Identify how your program will be held accountable for meeting 
program goals, objectives, and the actions undertaken in implementing 
the grant program.
    This new rating factor reflects HUD's goal to embrace high 
standards of ethics, management and accountability.

VI. Application Submission Requirements

(A) Applicant Data

    Your application must contain the items listed in this Section 
(VI(A)). These items include the standard forms, certifications, and 
assurances listed in the General Section of this NOFA that are 
applicable to this funding (collectively referred to as the ``standard 
forms''). The standard forms can be found in Appendix B to the General 
Section of the SuperNOFA. The remaining application item required with 
your application is a non-standard form (i.e., excluding such items as 
narratives) that can be found as Appendix D to this is NOFA. The items 
are:
    (1) A transmittal letter, signed by the chief executive or other 
authorized official, that identifies what the technical study program 
funds are requested for (you should clearly specify that you are 
applying for funds under either the HHI technical studies program or 
the LHC technical studies program), the dollar amount requested, and 
the applicant(s) submitting the application. The name, mailing address, 
telephone number, and principal contact person of the prime applicant. 
If you have consortium associates, sub-grantees, partners, major 
subcontractors, joint venture participants, or others contributing 
resources to your project, similar information must be provided for 
each of these entities. If two or more organizations are working 
together on the project, a primary applicant must be designated.
    (2) Application Abstract Summary. An abstract describing the 
project title, the names and affiliations of all investigators, and a 
summary of the objectives, expected results, and study design (two-page 
maximum) must be included in the proposal.
    (3) Checklist and Submission Table of Contents (see Appendix D).
    (4) All forms as required by Section V(H) of the General Section of 
this SuperNOFA. A Certification of Consistency with the Consolidated 
Plan is not required for this application.
    (5) A project description/narrative statement addressing the rating 
factors for award of funding under this program section of the NOFA. 
The narrative statement must be numbered in accordance with each factor 
for award (Rating Factors 1 through 5). The project description can 
either be included in the responses to the rating factors or provided 
separately. The response to the rating factors should not exceed a 
total of 25 pages (10- to 12-point font with at least \3/4\ inch 
margins on 8\1/2\'' by 11''

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pages) for each technical study topic area. Any pages in excess of this 
limit will not be read.
    (6) In conformance with the Common Rule (Federal Policy for the 
Protection of Human Subjects, codified by HUD at 24 CFR Part 60), if 
your research involves human subjects, your organization must provide 
an assurance (e.g., a letter signed by an appropriate official) that 
the research has been reviewed and approved by an IRB before you can 
receive funds from HUD for activities that require IRB approval. Before 
receiving such funds, you must also provide the number for your 
organization's assurance (i.e., an ``institutional assurance'') that 
has been approved by the Department of Health and Human Service's 
Office of Human Research Protections (OHRP). For additional information 
on what constitutes human subject research or how to obtain an 
institutional assurance see the OHRP Web site at http://
ohrp.osophs.dhhs.gov/.
    (7) Within Appendix 1, the resumes of the principal investigator 
and other key personnel. Resumes shall not exceed three pages each, and 
are limited to information that is relevant in assessing the 
qualifications of key personnel to conduct and/or manage the proposed 
technical studies. This information will not be counted towards the 
page limit.
    (8) Within Appendix 3, a detailed total budget with supporting cost 
justification for all budget categories of the federal grant request. 
Use the budget format discussed in Section V(B) Rating Factor 3(5), 
above. In completing the budget forms and justification, you should 
address the following elements:
    (a) Direct Labor costs should include all full- and part-time staff 
required for the planning and implementation phases of the project. 
These costs should be based on FTE (full time equivalent) or hours per 
year (hours/year) (i.e., one FTE equals 2,080 hours/year);
    (b) You should budget for two trips to HUD Headquarters in 
Washington, DC, planning each trip for two people, assuming a stay of 
one or two days, depending on your location;
    (c) A separate budget proposal should be provided for any 
subrecipients receiving more than 10% of the total federal budget 
request;
    (d) You should be prepared to provide supporting documentation for 
salaries and prices of materials and equipment upon request;
    (e) Organizations that have a federally-negotiated indirect rate 
should use that rate and the appropriate base. Other organizations 
should use their current overhead rate; and
    (f) You should submit the negotiated rate agreements for fringe 
benefits and indirect costs, if applicable, as an attachment to the 
budget sheets.
    (9) Any important attachments, appendices, references, or other 
relevant information may accompany the project description, but must 
not exceed 20 pages for the entire application, although mandatory 
materials (budget detail and justification, organizational chart, 
resumes, job descriptions, letters of commitment and memoranda of 
agreement from participating organizations) are not included in this 
page limit. Any pages in excess of this limit will not be read.

(B) Quality Assurance Plan (QAP)

    Successful applicants will be required to submit a Quality 
Assurance Plan to HUD prior to initiating work under the grant. This is 
a streamlined version of the format used by some other federal 
agencies, and is intended to help ensure the accuracy and validity of 
the data that you will collect under the grant. You should plan for 
this and include it in your study work plan. (See the HUD Office of 
Healthy Homes and Lead Hazard Control's Internet site, www.hud.gov/
offices/lead.)

(C) Applicant Debriefing

    See Section the General Section of this NOFA for information about 
applicant debriefing.

VII. Corrections to Deficient Applications

    The General Section of this SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    In accordance with 24 CFR 50.19(b)(1) and (b)(5) of the HUD 
regulations, activities assisted under this program are categorically 
excluded from the requirements of the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321) and are not subject to environmental review 
under the related laws and authorities.

Appendix A

    The following briefly describes the residential health and 
injury hazards HUD considers key targets for intervention:
    Allergens and asthma: Experts estimate that 14 million Americans 
have asthma, with an associated annual cost of $14 billion. Asthma 
is now recognized as the leading cause of school and work absences, 
emergency room visits and hospitalizations. For sensitized children, 
exposure to antigens from dust mites, certain pets, and cockroaches 
has been associated with more severe asthma. There is a 
preponderance of evidence showing a dose-response relationship 
between exposure and prevalence of asthma and allergies; some 
evidence also indicates that exposure to antigens early in life may 
predispose or hasten the onset of allergies and asthma. Dust mites 
have been identified as the largest trigger for asthma and 
allergies. Cockroach allergens appear to be excessive in 30-50 
percent of inner-city housing and affect 5-15 percent of the 
population, whereas dust mites appear to be the dominant allergen in 
other environments.
    Interventions known to have beneficial effects include the 
installation of impervious mattress and pillow covers, which can 
reduce allergen exposure by 90 percent. Other dust mite control 
measures include dehumidification, laundering bedding, and removal 
of carpets and other materials that accumulate dust and are 
difficult to clean (e.g., dust sinks). Cleaning carpets with tannic 
acid solution has also been demonstrated to greatly reduce dust 
mites. Asthma prevention program costs have been estimated at about 
$500 per unit, which includes about $150 for educational 
interventions.
    Asbestos: Asbestos is a mineral fiber that has been used 
commonly in a variety of building construction materials and 
household products for insulation and as a fire-retardant. The 
Environmental Protection Agency (EPA) and the Consumer Product 
Safety Commission (CPSC) have banned most asbestos products. 
Manufacturers have also voluntarily limited uses of asbestos. Today, 
asbestos is most commonly found in older homes in pipe and furnace 
insulation materials, asbestos shingles, millboard, textured paints 
and other coating materials, and floor tiles. Elevated 
concentrations of airborne asbestos can occur when asbestos-
containing materials (ACMs) are disturbed by cutting, sanding or 
other remodeling activities. Improper attempts to remove these 
materials can release asbestos fibers into the air in homes, 
increasing asbestos levels and endangering the people living in 
those homes. The most dangerous asbestos fibers are too small to be 
visible. After they are inhaled, they can remain and accumulate in 
the lungs. Asbestos can cause lung cancer, mesothelioma (a cancer of 
the chest and abdominal linings), and asbestosis (irreversible lung 
scarring that can be fatal). Most people with asbestos-related 
diseases were exposed to elevated concentrations on the job; some 
developed disease from exposure to clothing and equipment brought 
home from job sites. As with radon, dose-response extrapolations 
suggest that lower level exposures, as may occur when asbestos-
containing building materials deteriorate or are disturbed, may also 
cause cancer.
    Intact asbestos-containing materials are not a hazard; they 
should be monitored for damage or deterioration and isolated if 
possible. Repair of damaged or deteriorating ACMs usually involves 
either sealing (encapsulation) or covering (enclosure) it. Repair is 
usually cheaper than removal, but it may make later removal of 
asbestos more difficult and costly. Repairs should be done only by a 
professional trained and certified to handle asbestos safely and can 
cost from a few hundred to a few thousand dollars; removal can be 
more expensive.

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    Combustion products of heating and cooking appliances: Burning 
of oil, natural gas, kerosene, and wood for heating or cooking 
purposes can release a variety of combustion products of health 
concern. Depending upon the fuel, these may include carbon monoxide 
(a chemical asphyxiant), oxides of nitrogen (respiratory irritants), 
polycyclic aromatic hydrocarbons (e.g., the carcinogen 
benzo[a]pyrene), and airborne particulate matter (respiratory 
irritants). Carbon monoxide, an odorless gas, can be fatal. Nitrogen 
dioxide can damage the respiratory tract, and sulfur dioxide can 
irritate the eyes, nose and respiratory tract. Smoke and other 
particulates irritate the eyes, nose and throat, and can cause lung 
cancer.
    Improper venting and poor maintenance of heating systems and 
cooking appliances can dramatically increase exposure to combustion 
products. Experts recommend having combustion heating systems 
inspected by a trained professional every year to identify blocked 
openings to flues and chimneys, cracked or disconnected flue pipes, 
dirty filters, rust or cracks in the heat exchanger, soot or 
creosote build-up, and exhaust or gas odors. Installing a carbon 
monoxide detector is also recommended; however, such a detector will 
not detect other combustion by-products.
    Insect and Rodent pests: The observed association between 
exposure to cockroach antigen and asthma severity has already been 
noted above. In addition, cockroaches may act as vehicles to 
contaminate environmental surfaces with certain pathogenic 
organisms. Rodents can transmit a number of communicable diseases to 
humans, either through bites, arthropod vectors, or exposure to 
aerosolized excreta. In addition, humans can become sensitized to 
proteins in rodent urine, dander and saliva. Such sensitization may 
contribute to asthma severity among children. Insect and rodent 
infestation is frequently associated with substandard housing that 
makes it difficult to eliminate. Treatment of rodent and insect 
infestations often includes the use of toxic pesticides that may 
present hazards to occupants (see below). Integrated pest management 
(IPM) for rodents and cockroaches, which reduces the use of 
pesticides, is estimated to cost approximately $150 per unit. IPM 
control measures include sealing holes and cracks, removing food 
sources and use of traps.
    Lead: Exposure to lead, especially from deteriorating lead-based 
paint, remains one of the most important and best-studied of the 
household environmental hazards to children. Although blood lead 
levels have fallen nationally, a large reservoir of lead remains in 
housing. The most recent national survey, conducted from 1991-94, 
showed that nearly one million U.S. preschoolers still have elevated 
blood lead levels. Overall, the prevalence rate among all children 
under six years of age is 4.4 percent. Among low-income children 
living in older housing where lead-based paint is most prevalent, 
the rate climbs to 16 percent; and for African-American children 
living in such housing, it reaches 21 percent.
    HUD estimates that 38 million dwellings have some lead-based 
paint, and that 26 million have significant lead-based paint 
hazards. Of those, about 5.7 million have young children and of 
those, about 1.6 million have household incomes under $30,000 per 
year. LHC costs can range anywhere from $500 to $15,000 per unit. 
Corrective measures include paint stabilization, enclosure and 
removal of certain building components coated with lead paint, and 
cleanup and ``clearance testing,'' which ensures the unit is safe 
for young children.
    Mold and moisture: An analysis of several pulmonary disease 
studies estimates that 25 percent of airways disease, and 60 percent 
of interstitial lung disease may be associated with moisture in the 
home or work environment. Moisture is a precursor to the growth of 
mold and other biological agents, which is also associated with 
respiratory symptoms. An investigation of a cluster of pulmonary 
hemosiderosis (PH) cases in infants showed PH was associated with a 
history of recent water damage to homes and with levels of the mold 
Stachybotrys atra (SA) in air and cultured surface samples. 
Associations between exposure to SA and ``sick building'' symptoms 
in adults have also been observed. Other related toxigenic fungi 
have been found in association with SA-associated illness and could 
play a role. For sensitive individuals, exposure to a wide variety 
of common molds may also aggravate asthma. Addressing mold problems 
in housing requires coordination among the medical, public health, 
microbiological, housing, and building science communities.
    The cost of mold/moisture-related intervention work (e.g., IPM, 
clean and tune furnace, remove debris, vent clothes dryer, cover 
dirt floor with impermeable vapor barrier) is a few hundred dollars, 
unless major modification of the ventilation system is needed. For 
example, in Cleveland, mold interventions, including repairs to 
ventilation systems and basement flooring, in the most heavily 
contaminated homes range from $500-$5,000, with some costs also 
being dedicated to LHC simultaneously through its lead and asthma 
program.
    Pesticide residues: According to the EPA, 75 percent of U.S. 
households used at least one pesticide product indoors during the 
past year. Products used most often are insecticides and 
disinfectants. Another study suggests that 80 percent of most 
people's exposure to pesticides occurs indoors and that measurable 
levels of up to a dozen pesticides have been found in the air inside 
homes. The amount of pesticides found in homes appears to be greater 
than can be explained by recent pesticide use in those households; 
other possible sources include contaminated soil or dust that 
migrates in from outside, stored pesticide containers, and household 
surfaces that collect and then release the pesticides. Pesticides 
used in and around the home include products to control insects 
(insecticides), termites (termiticides), rodents (rodenticides), 
molds and fungi (fungicides), and microbes (disinfectants). In 1990, 
the American Association of Poison Control Centers reported that 
some 79,000 children were involved in common household pesticide 
poisonings or exposures. In households with children under five 
years of age, almost half stored at least one pesticide product 
within the reach of children. Exposure to chlorpyriphos (CP), a 
commonly used organophosphate insecticide, in the prenatal and early 
postnatal period may impair neurological development. While CP is a 
biodegradable pesticide, substantial persistence of CP in house dust 
has been demonstrated. Exposure to high levels of cyclodiene 
pesticides, commonly associated with misapplication, has produced 
various symptoms, including headaches, dizziness, muscle twitching, 
weakness, tingling sensations, and nausea. In addition, the EPA is 
concerned that cyclodienes might cause long-term damage to the liver 
and the central nervous system, as well as an increased risk of 
cancer.
    There are available data on hazard evaluation methods and 
remediation effectiveness regarding pesticide residues in the home 
environment.
    Radon progeny: The National Academy of Sciences estimates that 
approximately 15,000 cases of lung cancer per year are related to 
radon exposure. Epidemiologic studies of miners exposed to high 
levels of radon in inhaled air have defined the dose response 
relation for radon-induced lung cancer at high exposure levels. 
Extrapolation of these data has been used to estimate the excess 
risk of lung cancer attributable to exposure to radon gas at the 
lower levels found in homes. These estimates indicate that radon gas 
is an important cause of lung cancer deaths in the U.S. Excessive 
exposures are typically related to home ventilation, structural 
integrity and location.
    Radon measurement and remediation methods are well developed, 
and the Environmental Protection Agency (EPA) recommends that every 
home be measured for radon. EPA estimates that materials and labor 
costs for radon reduction in an existing home are $800-$2,500. 
Including radon resistant techniques in new home construction costs 
$350-$500, and can save up to $65 annually in energy costs, 
according to the EPA.
    Take-home hazards from work/hobbies and work at home: When the 
clothing, hair, skin, or shoes of workers become contaminated with 
hazardous materials in the workplace, such contaminants may 
inadvertently be carried to the home environment and/or an 
automobile. Such ``take-home'' exposures have been demonstrated, for 
example, in homes of lead-exposed workers. In addition, certain 
hobbies or workplaces located in the home may provide an especially 
great risk of household contamination.
    Control methods include storing and laundering work clothes 
separately, and showering and changing clothes before leaving work 
or immediately after arriving home. Once a home becomes 
contaminated, cleaning floors and contact surfaces and replacing 
furnishings may be necessary to reduce exposures.
    Unintentional injuries/fire: Unintentional injury is now the 
leading cause of death and disability among children younger than 15 
years of age. In 1997, nearly 7 million persons in the U.S. were 
disabled for at least one full day by unintentional injuries

[[Page 21356]]

received at home. During the same year, 28,400 deaths were 
attributable to unintentional home injuries, of which 1800 occurred 
among children 0-4 years of age. Among young children, three types 
of events accounted for more than 75 percent of deaths: fires/ 
burns; drowning; and mechanical suffocation. Falls and poisoning are 
the next most common causes of death.
    Home visitation protocols have been shown to be effective in 
reducing exposure to such hazards. The ``add-on'' cost of injury 
prevention measures, when combined with other housing interventions 
are estimated at about $100 per unit. This includes the cost of some 
injury prevention devices (e.g., smoke alarms, electrical socket 
covers, etc.).

Appendix B--Relevant Publications and Guidelines

    To secure any of the documents listed, call the telephone number 
provided. If you are a hearing-or speech-impaired person, you may 
reach the telephone numbers via TTY by calling the toll-free Federal 
Information Relay Service at 1-800-877-8339. A number of these 
references are provided on HUD's CD, ``Residential Lead Desktop 
Reference, 3rd Edition.'' This CD can be obtained at no charge by 
calling the National Lead Information Clearinghouse's (NLIC's) toll 
free number, 1-800-424-LEAD. Several of these references can be 
downloaded from the Internet without charge from the HUD Office of 
Healthy Homes and Lead Hazard Control's Internet site, www.hud.gov/
offices/lead.

Regulations

    1. Worker Protection: The two Occupational and Safety 
Administration (OSHA) publications listed below can be purchased by 
calling either OSHA Regulations at 202-693-1888 (OSHA Regulations) 
(this is not a toll free number) or the Government Printing Office 
(GPO) at 202-512-1800 (this is not a toll-free number). If you are a 
hearing-or speech-impaired person, you may reach these telephone 
numbers via TTY by calling the toll-free Federal Information Relay 
Service at 1-800-877-8339.
    (a) General Industry Lead Standard, 29 CFR 1910.1025 (Document 
Number 869022001124). This document can be downloaded without charge 
from the OSHA Web site at: www.osha-slc.gov/OshStd--data/1910--
1025.html;
    (b) Lead Exposure in Construction, 29 CFR 1926.62, and 
appendices A, B, C, and D (Document Number 869022001141). This 
document can be downloaded without charge from the OSHA Web site at: 
www.osha-slc.gov/OshStd--data/1926--0062.html.
    2. Waste Disposal. A copy of the EPA regulations at 40 CFR parts 
260-268 can be purchased by calling 1-800-424-9346, or, from the 
Washington, DC, metropolitan area, 1-703-412-9810 (not a toll-free 
number). If you are a hearing- or speech-impaired person, you may 
reach this telephone number via TTY by calling the toll-free Federal 
Information Relay Service at 1-800-877-8339. The regulations can 
also be downloaded without charge from the EPA Web site at 
www.epa.gov/docs/epacfr40/chapt-I.info/subch-I/htm.
    3. Lead.
    (a) Requirements for Lead-Based Paint Activities in Target 
Housing and Child-Occupied Facilities; Final Rule: 40 CFR part 745 
(EPA) (Lead Hazard Standards, Work Practice Standards, EPA and State 
Certification and Accreditation Programs for those engaged in lead-
based paint activities) can be purchased by calling the Toxic 
Substances Control Act (TSCA) Hotline at 202-554-1404 (this is not a 
toll-free number). If you are a hearing- or speech-impaired person, 
you may reach this telephone number via TTY by calling the toll-free 
Federal Information Relay Service at 1-800-877-8339. The rule and 
guidance can be downloaded from the Internet without charge at 
www.epa.gov/lead/.
    (b) Requirements for Notification, Evaluation and Reduction of 
Lead-Based Paint Hazards in Federally Owned Residential Property and 
Housing Receiving Federal Assistance; Final Rule: 24 CFR part 35, 
subparts B through R, published September 15, 1999, at Federal 
Register pages 50201 through 50231(HUD) can be purchased by calling 
NLIC's toll-free number (800-424-LEAD) or downloaded without charge 
from the HUD Web site at www.hud.gov/offices/lead.
    (c) Requirements for Disclosure of Information Concerning Lead-
Based Paint in Housing, 24 CFR Part 35, Subpart A (HUD, Lead-Based 
Paint Disclosure Rule) by calling the NLIC's toll free number (800-
424-LEAD). If you are a hearing- or speech-impaired person, you may 
reach this telephone number via TTY by calling the toll-free Federal 
Information Relay Service at 1-800-877-8339. The rule, guidance, 
pamphlet and disclosure formats can be downloaded from the HUD Web 
site at www.hud.gov/offices/lead.
    (d) U.S. Environmental Protection Agency. Lead; Identification 
of Dangerous Levels of Lead; Final Rule at 66 FR 1205-1240, January 
5, 2001. This rule and guidance can be obtained without charge by 
calling the NLIC's toll free number (800-424-LEAD) or by calling the 
TSCA at: 202-554-1404 (not a toll-free number). The rule and 
guidance can be downloaded from the EPA Web site at www.epa.gov/
lead/leadhaz.htm.

Guidelines

    1. Guidelines for the Evaluation and Control of Lead-Based Paint 
Hazards in Housing; HUD, June 1995, and amended September 1997. 
These guidelines can be purchased by calling 800-245-2691 toll-free. 
If you are a hearing- or speech-impaired person, you may reach this 
telephone number via TTY by calling the toll-free Federal 
Information Relay Service at 1-800-877-8339. The Guidelines can be 
downloaded from the HUD Web site without charge at www.hud.gov/
offices/lead.
    2. Preventing Lead Poisoning in Young Children; Centers for 
Disease Control, October 1991. These guidelines can be obtained 
without charge by calling the CDC toll free number at 888-232-6789. 
If you are a hearing- or speech-impaired person, you may reach this 
telephone number via TTY by calling the toll-free Federal 
Information Relay Service at 1-800-877-8339. The guidelines can also 
be downloaded from the HUD Web site without charge at www.hud.gov/
offices/lead.
    3. Screening Young Children for Lead Poisoning: Guidance for 
State and Local Public Health Officials, November 1997; Centers for 
Disease Control and Prevention (CDC). These guidelines can be 
obtained without charge by calling the CDC toll free number at 888-
232-6789 or they can be downloaded from the HUD Web site at 
www.hud.gov/offices/lead.

Reports and Articles

    1. Putting the Pieces Together: Controlling Lead Hazards in the 
Nation's Housing, (Summary and Full Report); HUD, July 1995. A copy 
of this summary and report can be purchased by calling 800-245-2691 
toll free or downloaded from the HUD Web site without charge at 
www.hud.gov/offices/lead.
    2. The Healthy Homes Initiative: A Preliminary Plan (Summary and 
Full Report); HUD, July 1995. A copy of this summary and report can 
be downloaded from the HUD Web site without charge at www.hud.gov/
offices/lead.
    3. Institute of Medicine. Indoor Allergens. Assessing and 
Controlling Adverse Health Effects. National Academy Press. 
Washington, DC 1993.
    4. Mott L., Our Children at Risk. Natural Resources Defense 
Council. Washington, DC 1997. Can be ordered from the Internet from 
www.nrdc.org.
    5. Rom W.N., Ed. Environmental and Occupational Medicine. 
Little, Brown and Co., Boston. 1992.
    6. President's Task Force on Environmental Health Risks and 
Safety Risks to Children. Asthma and The Environment: An Action Plan 
to Protect Children. Washington, DC 1999. Eliminating Childhood Lead 
Poisoning: A Federal Strategy Targeting Lead Paint Hazards. 
Washington, DC 2000. Can be downloaded from the Internet without 
charge from www.epa.gov/children.
    7. Morbidity and Mortality Weekly Report (MMWR). Update: Blood 
Lead Level--United States, 1991-1994. U.S. Department of Health and 
Human Services, Centers for Disease Control and Prevention. February 
21, 1997. Vol. 46, No 7.
    8. Jacobs, D.E., R.P. Clickner, J.Y. Zhou, et al., 2002. 
Prevalence of Lead-Based Paint in U.S. Housing. Env. Health Persp. 
110(10): A599-A606.
    9. Galke, W., S. Clark, J. Wilson, et al., 2001. Evaluation of 
the HUD lead hazard control grant program: Early overall findings. 
Env. Res. 86, 149-156.
BILLING CODE 4210-32-P

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Notices  

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Appendix E

    This appendix to this NOFA lists the standard forms, 
certifications and assurances used by the programs that are part of 
this NOFA. Listed forms are located in Appendix B of the General 
Section of the SuperNOFA.
    The following forms are to be used for the Programs listed in 
this NOFA
    (1) Form HUD-424
    (2) Form HUD-424 B
    (3) Form HUD-424 C
    (4) Form HUD-424 CBW
    (5) Form HUD Logic Model Form
    (6) Application Checklist and Submission Table of Contents
    (7) Ethnicity and Race Data
    HUD has consolidated many of its application forms into a single 
HUD-424 form. The new HUD-424 consolidates budget-reporting forms 
for both construction and non-construction projects into a single 
form and eliminates having to have the following separate 
certifications: Certification for a Drug-Free Workplace (HUD-50070), 
the Certification of Payments to Influence Federal Transactions 
(HUD-50071), and the Certification Regarding Debarment and 
Suspension (HUD-2992).
    New form HUD-424 replaces SF-424 and HUD-424 M
    HUD-424 B replaces SF-424 B and D, and HUD-50070, 50071 and 
2992.
    HUD-424 C and CB replaces SF-424 A and C
    The HUD-424 CBW is added as a common detailed Budget Worksheet 
and replaces various budget worksheets used throughout the 
Department.
    Administrative costs that may be applicable to the programs 
included in this NOFA are discussed below:

Administrative Costs

I. Purpose

    The intent of this HUD grant program is to allow the Grantee to 
be reimbursed for the reasonable direct and indirect costs, subject 
to a top limit, for overall management of the grant. In most 
instances the grantee, whether a State or a local government, 
principally serves as a conduit to pass funding to sub-grantees, 
which are to be responsible for the conducting lead-hazard reduction 
work. Congress set a top limit of ten percent of the total grant sum 
for the grantee to perform the function of overall management of the 
grant program, including passing on funding to sub-grantees. The 
cost of that function, for the purpose of this grant, is defined as 
the ``administrative cost'' of the grant, and is limited to ten 
percent of the total grant amount. The balance of ninety percent or 
more of the total grant sum is reserved sub-grantees or other 
direct-performers of lead-hazard identification and reduction work. 
Lead hazard identification and reduction includes, but is not 
necessarily limited to outreach, training, enrollment, lead paint 
inspection/risk assessments, interim controls, hazard abatement, 
clearance documentation, blood lead testing, and public education.

II. Administrative Costs: What They Are Not

    For the purposes of this HUD grant program for States and local 
governments to provide support for the evaluation and reduction of 
lead-hazards in low- and moderate-income, private target housing, 
the term ``administrative costs'' should not be confused with the 
terms ``general and administrative cost,'' ``indirect costs,'' 
``overhead,'' and ``burden rate.'' These are accounting terms 
usually represented by a government-accepted standard percentage 
rate. The percentage rate allocates a fair share of an 
organization's costs that cannot be attributed to a particular 
project or department (such as the chief executive's salary or the 
costs of the organization's headquarters building) to all projects 
and operating departments (such as the Fire Department, the Police 
Department, the Community Development Department, the Health 
Department or this program). Such allocated costs are added to those 
projects' or departments' direct costs to determine their total 
costs to the organization.

III. Administrative Costs: What They Are

    For the purposes of this HUD grant program, ``Administrative 
Costs'' are the grantee's allowable direct costs for the overall 
management of the grant program plus the allocable indirect costs. 
The allowable limit of such costs that can be reimbursed under this 
program is ten (10) percent of the total grant sum. Should the 
grantee's actual costs for overall management of the grant program 
exceed ten percent of the total grant sum, those excess costs shall 
be paid for by the grantee. However, excess costs paid for by the 
grantee may be shown as part of the requirement for cost-sharing 
funds to support the grant.

IV. Administrative Costs: Definition

A. General

    Administrative costs are the allowable, reasonable, and 
allocable direct and indirect costs related to the overall 
management of the HUD grant for lead-hazard reduction activities. 
Those costs shall be segregated in a separate cost center within the 
grantee's accounting system, and they are eligible costs for 
reimbursement as part of the grant, subject to the ten percent 
limit. Such administrative costs do not include any of the staff and 
overhead costs directly arising from specific sub-grantee program 
activities eligible under Section III(B) of this program section of 
this SuperNOFA, because those costs are eligible for reimbursement 
under a separate cost center as a direct part of project activities.
    The grantee may elect to serve solely as a conduit to sub-
grantees, who will in turn perform the direct program activities 
eligible under Section III(B) of this program section of this NOFA, 
or the grantee may elect to perform all or a part of the direct 
program activities in other parts of its own organization, which 
shall have their own segregated, cost centers for those direct 
program activities. In either case, not more than 10 percent of the 
total HUD grant sum may be devoted to administrative costs, and not 
less than 90% of the total grant sum shall be devoted to direct 
program activities. The grantee shall take care not to mix or 
attribute administrative costs to the direct project cost centers.

B. Specific

    Reasonable costs for the grantee's overall grant management, 
coordination, monitoring, and evaluation are eligible administrative 
costs. Subject to the ten percent limit, such costs include, but are 
not limited to, necessary expenditures for the following goods, 
activities and services:
    (1) Salaries, wages, and related costs of the grantee's staff, 
the staff of affiliated public agencies, or other staff engaged in 
grantee's overall grant management activities. In charging costs to 
this category the recipient may either include the entire salary, 
wages, and related costs allocable to the program for each person 
whose primary responsibilities (more than 65% of their time) with 
regard to the grant program involve direct overall grant management 
assignments, or the pro rata share of the salary, wages, and related 
costs of each person whose job includes any overall grant management 
assignments. The grantee may use only one of these two methods 
during this program. Overall grant management includes the following 
types of activities:
    (a) Preparing grantee program budgets and schedules, and 
amendments thereto;
    (b) Developing systems for the selection and award of funding to 
sub-grantees and other sub-recipients;
    (c) Developing suitable agreements for use with sub-grantees and 
other sub-recipients to carry out grant activities;
    (d) Developing systems for assuring compliance with program 
requirements;
    (e) Monitoring sub-grantee and sub-recipient activities for 
progress and compliance with program requirements;
    (f) Preparing presentations, reports, and other documents 
related to the program for submission to HUD;
    (g) Evaluating program results against stated objectives;
    (h) Providing local officials and citizens with information 
about the overall grant program; however, a more general education 
program, helping the public understand the nature of lead hazards, 
lead hazard reduction, blood-lead screening, and the health 
consequences of lead poisoning is a direct project support 
activity);
    (i) Coordinating the resolution of overall grant audit and 
monitoring findings; and
    (j) Managing or supervising persons whose responsibilities with 
regard to the program include such assignments as those described in 
paragraphs (a) through (i).
    (2) Travel costs incurred for official business in carrying out 
the overall grant management;
    (3) Administrative services performed under third party 
contracts or agreements, for services directly allocable to grant 
management such as: legal services, accounting services, and audit 
services;
    (4) Other costs for goods and services required for and directly 
related to the overall management of the grant program; and 
including such goods and services as telephone, postage, rental of 
equipment, renter's insurance for the program management space, 
utilities, office supplies, and rental and maintenance (but not 
purchase) of office space for the program.
    (5) The fair and allocable share of grantee's general costs that 
are not directly attributable

[[Page 21362]]

to specific projects or operating departments such as salaries, 
office expenses and other related costs for local officials (e.g., 
mayor and city council members, etc.), and expenses for a city's 
legal or accounting department which are not charged back to 
particular projects or other operating departments. If a grantee has 
an established burden rate, it should be used; if not, the grantee 
shall be assigned a negotiated provisional burden rate, subject to 
final audit.

BILLING CODE 4210-32-P

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Notices  

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[GRAPHIC] [TIFF OMITTED] TN25AP03.203


  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21365]]



Funding Availability for the Healthy Homes Demonstration Program

PROGRAM OVERVIEW

    Purpose of the Program. The purpose of the Healthy Homes 
Demonstration Program is to develop, demonstrate and promote cost-
effective, preventive measures to correct multiple safety and health 
hazards in the home environment that produce serious diseases and 
injuries in children of low-income families. HUD is interested in 
reducing health threats to the maximum number of residents, especially 
children, in a cost efficient manner.
    Available Funds. Approximately $5 million in Fiscal Year 2003 
funds.
    Eligible Applicants. Not-for-profit institutions, and for-profit 
firms located in the U.S., Native American Tribes, State and local 
governments, and federally recognized Indian Tribes are eligible to 
apply. For-profit firms are not allowed to include a fee in the cost 
proposal (i.e., no profit can be made from the project). Federal 
agencies and federal employees are not eligible to apply for this 
program.
    Application Due Date: June 10, 2003.
    Match. None required.

Additional Information

I. Application Due Date and Technical Assistance

    If you are interested in applying for funding under this program, 
please carefully review the General Section of this SuperNOFA and the 
following additional information.
    Application Due Date. You must submit a completed application to 
HUD on or before the respective program's application due date. The 
application due date for all programs contained in this NOFA is July 9, 
2003.
    Application Submission Procedures. See the General Section of this 
SuperNOFA for specific procedures concerning the form of application 
submission (e.g., mailed applications, express mail or overnight 
delivery). Be advised that there is no Application Kit. All of the 
information required for submitting an application is contained in this 
NOFA.
    Addresses. You must submit a complete application to, Department of 
Housing and Urban Development, Office of Healthy Homes and Lead Hazard 
Control, ATTN: Healthy Homes Demonstration Program, 451 Seventh Street, 
SW, Room P3206, Washington, DC 20410.
    For Further Information and Technical Assistance. You may contact 
Ellen R. Taylor, Director, Healthy Homes Division, Office of Healthy 
Homes and Lead Hazard Control, at the address above; telephone (202) 
755-1785, extension 116 (this is not a toll-free number). If you are 
hearing-or speech-impaired, you may reach the above telephone number 
via TTY by calling the toll-free Federal Information Relay Service at 
1-800-877-8339.

II. Authority, Funding Amounts, And Amount Of Funds Allocated

    (A) Authority. The authority for this program is Sections 501 and 
502 of the Housing and Urban Development Act of 1970 and the 
Consolidated Appropriations Resolution of 2003, Public Law 108-7, 
approved February 20, 2003.
    (B) Funding Available and Eligibility. Approximately $5 million in 
Fiscal Year 2003 will be available for the Healthy Homes Demonstration 
Program Grants will be awarded on a competitive basis following 
evaluation of all proposals according to the rating factors described 
in the General Section of this SuperNOFA. HUD anticipates that 
approximately six to eight grants will be awarded, ranging from 
approximately $250,000 to approximately $1,000,000 each. A minimum 
score of 75 is required for award consideration.

III. Eligible Applicants and Activities

(A) Program Description

    (1) Background. The Healthy Homes Demonstration Program is a part 
of HUD's Healthy Homes Initiative (HHI). The HHI departs from the more 
traditional approach of attempting to correct one hazard at a time 
(e.g., asbestos, radon). In April 1999, HUD submitted to Congress a 
preliminary plan containing a full description of the HHI. This 
description (Summary and Full Report) is available on the HUD website 
at www.hud.gov.
    The HHI builds upon HUD's existing housing-related health and 
safety issues, including lead hazard control, building structural 
safety, electrical safety, and fire protection to address multiple 
childhood diseases and injuries, such as asthma, mold-induced illness, 
carbon monoxide poisoning, and other conditions, related to housing in 
a more coordinated fashion. A coordinated effort is feasible because a 
limited number of building deficiencies contribute to many hazards. 
Substantial savings are possible using this approach, because separate 
visits to a home by an inspector, public health nurse, or outreach 
worker can add significant costs to efforts to eliminate hazards. A 
description of the HHI program, and a link to its website, are 
available at www.hud.gov.
    In addition to deficiencies in basic housing facilities that may 
impact health, changes in the U.S. housing stock and more sophisticated 
epidemiological methods and biomedical research have led to the 
identification of new and often more subtle health hazards in the 
residential environment. While such hazards will tend to be found 
disproportionately in housing that is substandard (e.g., structural 
problems, lack of adequate heat, etc.), such housing-related 
environmental hazards may also exist in housing that is otherwise of 
good quality. Appendix A of this NOFA briefly describes the housing-
associated health and injury hazards HUD considers key targets for 
intervention. Appendix D lists references that serve as the basis for 
the information provided in the Healthy Homes Demonstration Program.
    HUD is interested in promoting approaches that are cost-effective 
and efficient and that result in the reduction of health threats for 
the maximum number of residents for the long run, and, in particular, 
for children in low-income families. Section II of the General Section 
of the SuperNOFA presents Policy Priorities. The overall goals and 
objectives of the HHI are to:
    (a) Mobilize public and private resources, involving cooperation 
among all levels of government, the private sector, and faith-based and 
other community-based organizations to develop the most promising, 
cost-effective methods for identifying and controlling housing-based 
hazards;
    (b) Build local capacity to operate sustainable programs that will 
prevent and control housing-based hazards in low- and very low-income 
residences when HUD funding is exhausted; and
    (c) Affirmatively further fair housing and environmental justice.
    (2) Healthy Homes Demonstration Activities. Through the Healthy 
Homes Demonstration program, HUD will initiate competitive projects to 
promote implementation of available risk reduction techniques for the 
control of key hazards described in Appendix A. HUD will award 
demonstration projects that implement housing assessment, maintenance, 
renovation and construction techniques to identify and correct housing-
related illness and injury risk factors, and disseminate healthy homes 
information and replicate successful interventions.
    HUD will evaluate proposals based on the elements described below. 
Applicants are required to be specific as to the locations where they 
are targeting their intervention activities to occur, the residents, 
individuals, or groups

[[Page 21366]]

targeted to receive interventions, and the organizations targeted to 
continue to operate effective intervention strategies over the life of 
the award and thereafter.
    The objectives of the Healthy Homes Demonstration program include:
    (a) Identification of target areas and homes where assessment and 
interventions will occur;
    (b) Identification and evaluation of effective methods of hazard 
abatement and risk reduction;
    (c) Development of appropriately-scaled, flexible, cost-effective 
and efficient intervention strategies that take into account the range 
of conditions likely to be encountered in housing and that maximize the 
number of housing units that receive an intervention;
    (d) Development of methodologies for evaluating intervention 
effectiveness;
    (e) Development of local capacity in target areas and training 
programs for target groups to operate sustainable programs to prevent 
and control housing-based hazards, especially in low- and very low-
income residences;
    (f) Development of a cost-effective protocol for identifying homes 
that are candidates for interventions, identifying hazards in these 
homes, and screening out homes where structural or other condition 
factors (e.g., cost) make interventions infeasible or impractical;
    (g) Development and delivery of public outreach programs that 
provide information about effective methods for preventing housing-
related childhood diseases and injuries and for promoting the use of 
these interventions;
    (h) Targeting, through education and outreach, specific high-risk 
communities and other identified audiences such as homeowners, 
landlords, health care deliverers, pregnant women, children, 
residential construction contractors, maintenance personnel, housing 
inspectors, real estate professionals, home buyers, and low-income 
minority families;
    (i) Implementation of media strategies to use print, radio and 
television to increase public awareness of housing-related hazards that 
threaten children, including the use of minority media, nonprofit 
organizations that work with persons with disabilities, and advocates 
for racial and ethnic minorities, and faith-based organizations;
    (j) Dissemination of existing tools and, as needed, new tools to 
inform parents and caregivers about housing-related hazards and enable 
them to take prompt corrective action; and
    (k) Development of training programs for Healthy Homes activities 
to emphasize assessment and intervention methods applicable to public 
and private housing in the target area.

(B) Eligible Applicants

    Not-for-profit institutions, including faith-based and community-
based organizations, and for-profit firms located in the U.S., state 
and local governments, and federally recognized Indian Tribes are 
eligible to apply. For-profit firms are not allowed to include a fee in 
the cost proposal (i.e., no profit can be made from the project). 
Federal agencies and federal employees are not eligible to apply for 
this program.

(C) Eligible Activities

    The following direct activities and support activities are eligible 
under this grant program.
    (1) Direct Project Elements. These include activities that you may 
undertake directly, or through sub-recipients, such as:
    (a) Performing evaluations of eligible housing to determine the 
presence of housing-based hazards (e.g., mold growth, allergens, 
unvented appliances, exposed steam pipes or radiators, deteriorated 
lead-based paint) through the use of generally accepted testing 
procedures.
    (b) Conducting housing interventions to remediate existing housing-
based hazards and address conditions that could result in their 
recurrence. Any lead hazard evaluation and control work shall be 
conducted by persons qualified for the activities according to 24 CFR 
part 35, especially sections 35.1325 for abatement and 35.1330 for 
interim controls. Qualified persons must possess certification as 
abatement contractors, risk assessors, inspectors, abatement workers, 
or sampling technicians, or otherwise having been trained in a HUD-
approved course in lead-safe work practices. You may refer to the HUD 
Guidelines for the Evaluation and Control of Lead-Based Paint Hazards 
in Housing (Guidelines) for additional information. The Guidelines and/
or applicable regulations may be downloaded from the Office of Healthy 
Homes and Lead Hazard Control's homepage, linked to HUD's website at 
www.hud.gov. All pest control activities shall incorporate the 
principles and methods of integrated pest management (IPM). In 
technical terms, IPM is the coordinated use of pest and environmental 
information with available pest control methods to prevent unacceptable 
levels of pest damage by the most economical means and with the least 
possible hazard to people, property, and the environment. (One 
information source is the University of Minnesota's electronic textbook 
of Integrated Pest Management, available at http://ipmworld.umn.edu/
textbook.htm.)
    (c) Undertaking housing rehabilitation activities that are 
specifically required to carry out effective control of housing-based 
hazards, and without which the intervention could not be completed and 
maintained. Funds under this program may also be used to control lead-
based paint hazards; however, such controls may not be a principal 
focus of the grant. Lead hazard control activities are carried out 
under HUD's Lead-Based Paint Hazard Control Grant Program.
    (d) Carrying out relocation of families and individuals, when 
necessary, during the period in which intervention is conducted and 
until the time the affected unit receives clearance for re-occupancy. 
Residents relocated must be guaranteed the choice of returning to the 
unit after the intervention.
    (e) If medical examinations of young children for conditions caused 
or exacerbated by exposure to hazards are demonstrated to be critical 
to the outcome of your project, and there are no alternative sources to 
cover these costs, conducting such examinations.
    (f) Environmental sampling and medical testing recommended by a 
physician or applicable occupational or public health agency to protect 
the health of the intervention workers, supervisors, and contractors, 
unless reimbursable from another source.
    (g) Conducting testing and analysis for lead, mold, carbon monoxide 
and/or other toxins as appropriate, with respect to generally accepted 
standards or criteria, or where not available, other appropriate levels 
justified in conjunction with the project. Clearance dust samples 
related to lead-based paint must be analyzed by a laboratory recognized 
by the Environmental Protection Agency's (EPA's) National Lead 
Laboratory Accreditation Program (NLLAP). All tests results related to 
lead-based paint must be provided to the owner of the unit, together 
with a notice describing the owner's legal duty to disclose the results 
to tenants and buyers.
    (h) Carrying out architectural, engineering and work specification 
development and other construction management services to control 
housing-based hazards and remediate existing hazards.
    (i) Providing training on Healthy Homes practices to homeowners, 
renters, painters, remodelers, and housing maintenance staff working in 
low-or very low-income housing.
    (j) Providing cleaning supplies for hazard intervention and hazard 
control to faith-based and other community-based organizations for use 
by

[[Page 21367]]

homeowners and tenants in low-income housing, or to such homeowners and 
tenants directly. (See Section II of the General Section of the 
SuperNOFA for more information about faith-based and other community-
based organizations.)
    (k) Conducting general or targeted community education programs on 
environmental health and safety hazards. This activity would include 
training on Healthy Homes maintenance and renovation practices, among 
other topics. It would also include making materials available, upon 
request, in alternative formats for persons with disabilities (e.g., 
Braille, audio, large type), and in languages other than English that 
are common in the community, whenever possible.
    (l) Securing liability insurance for hazard evaluation and control 
activities to be performed. This activity is not an administrative 
activity.
    (m) Supporting data collection, analysis, and evaluation of project 
activities. As a condition of the receipt of financial assistance under 
this NOFA all successful applicants will be required to cooperate with 
all HUD staff and contractors performing HUD funded research and 
evaluation studies. Maintaining a registry of housing units in which 
housing-based hazards were not found during evaluation, and those in 
which such problems have been controlled.
    (n) Preparing quarterly progress reports and an overall final grant 
report detailing activities (e.g., number of units tested, hazards 
found, types of interventions provided, evaluation of the most cost-
efficient methodologies by type of unit), findings, and recommended 
future actions for cost-effective interventions at the conclusion of 
grant activities.
(2) Support Elements
    (a) Your administrative costs. There is a 10 percent maximum 
allowance for administrative costs. Specific information about 
administrative costs is included in Appendix F of this NOFA.
    (b) Program planning and management costs of sub-grantees and other 
sub-recipients.

(D) Ineligible Activities

(1) Purchase of Real Property
    (2) Purchase or lease of equipment having a per unit cost in excess 
of $5,000, unless prior written approval is obtained from HUD.
    (3) Medical treatment costs, except as specified in Section III 
(C)(1)(e) above.

IV. Requirements

    In addition to requirements listed in the General Section of the 
SuperNOFA, you, the applicant, must comply with the requirements listed 
below:

(A) Threshold Requirements

    As an applicant, you must meet all of the threshold requirements 
Section V (B) of the General Section of the SuperNOFA. Threshold 
requirements include Ineligible Applicants, Compliance with Fair 
Housing and Civil Rights Laws, Conducting Business in Accordance with 
Core Values and Ethical Standards, Delinquent Federal Debts and Pre-
Award Accounting System Surveys. Information about threshold 
requirements is provided in Section (V)(B) of the General Section of 
the SuperNOFA. These requirements include the requirement to 
affirmatively further fair housing (AFFH) in accordance with paragraph 
V(D) of the General Section of the SuperNOFA. Applications that meet 
all of the threshold requirements will be eligible to be scored and 
ranked based on the total number of points allocated for each of the 
rating factors described below. Your application must receive a total 
score of at least 75 points to be considered for funding. Applications 
will not be rated or ranked if they do not meet the threshold 
requirements of the General Section of the SuperNOFA.

(B) Program Requirements

    (1) Work Activities. All lead hazard control activities must be 
conducted in compliance with the applicable requirements of HUD's Lead-
Safe Housing Rule, 24 CFR part 35, and as clarified in HUD's 
Interpretive Guidance about this rule. Activities must also comply with 
any additional requirements in effect under a State or Native American 
Tribal Lead-Based Paint Training and Certification Program that has 
been authorized by the EPA pursuant to 40 CFR 745.320.
    (2) Budgeting.
    (a) Matching Requirement. You are not required to provide a 
matching contribution in the Healthy Homes Demonstration Program.
    (b) Administrative Costs. There is a 10 percent maximum allowance 
for administrative costs as specified in Section 1011(j) of the 
Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X of 
the Housing and Community Development Act of 1992, Public Law 102-550). 
Additional information about allowable administrative costs is provided 
in Appendix F of this NOFA.
    (3) Period of Performance. The period of performance cannot exceed 
36 months from the time of the award.
    (4) Program Performance. Grantees shall take all reasonable steps 
to accomplish all healthy homes activities within the approved period 
of performance. HUD will closely monitor the grantee's performance with 
particular attention to completion of specified activities, 
deliverables and milestones, and number of units proposed to be 
assessed or receive interventions within the approved period of 
performance. HUD reserves the right to terminate the grant prior to the 
expiration of the period of performance if the grantee fails to meet 25 
percent of the milestones, including all deliverables, as scheduled in 
their work plan.
    (5) Certified and Trained Providers. Lead hazard control activities 
must be conducted by persons qualified for the activities according to 
24 CFR part 35 (possessing certification as abatement contractors, risk 
assessors, inspectors, abatement workers, or sampling technicians, or 
others having been trained in a HUD-approved course in lead-safe work 
practices).
    (6) Coastal Barrier Resources Act. Pursuant to the Coastal Barrier 
Resources Act (16 U.S.C. 3501), funds may not be used for properties 
located in the Coastal Barrier Resources System.
    (7) Flood Disaster Protection Act. Under the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128), funds may not be used for 
construction, reconstruction, repair or improvement of a building or 
mobile home which is located in an area identified by the Federal 
Emergency Management Agency (FEMA) as having special flood hazards 
unless:
    (a) The community in which the area is situated is participating in 
the National Flood Insurance Program in accordance with the applicable 
regulations (44 CFR parts 59-79), or less than a year has passed since 
FEMA notification regarding these hazards; and
    (b) Where the community is participating in the National Flood 
Insurance Program, flood insurance on the property is obtained in 
accordance with section 102(a) of the Flood Disaster Protection Act (42 
U.S.C. 4012a(a)). You are responsible for assuring that flood insurance 
is obtained and maintained for the appropriate amount and term.
    (8) National Historic Preservation Act. The National Historic 
Preservation Act of 1966 (16 U.S.C. 470) (NHPA) and the regulations at 
36 CFR part 800 apply to the mold intervention and related hazard 
control activities that are

[[Page 21368]]

undertaken pursuant to this program. HUD and the Advisory Council for 
Historic Preservation have developed an optional Model Agreement for 
use by grantees and State Historic Preservation Officers in carrying 
out any lead hazard control activities under this program. A Model 
Agreement (Prototype Programmatic Agreement) is available at the Office 
of Healthy Homes and Lead Hazard Control's Web site, linked to http://www.hud.gov.
    (9) Waste Disposal. Waste disposal will be handled according to the 
requirements of the Occupational Health and Safety Administration 
(OSHA) (e.g., 29 CFR part 1910 and/or 1926, as applicable), the EPA 
(e.g., 40 CFR parts 61, 260-282, 300-374, and/or 700-799, as 
applicable), the Department of Transportation (e.g., 49 CFR parts 171-
177), and/or appropriate State or local regulatory agencies and 
applicable EPA, HUD, State and local regulatory agency guidance. You 
must handle disposal of wastes from hazard control activities that 
contain lead-based paint, but are not classified as hazardous in 
accordance with State or local law or the HUD Guidelines for the 
Evaluation and Control of Lead-Based Hazards in Housing (HUD 
Guidelines). The HUD Guidelines may be downloaded from the HUD Web site 
at http://www.hud.gov.
    (10) Worker Protection Procedures. You must comply with the 
procedures for worker protection established in the HUD Guidelines as 
well as the requirements of the OHSA, e.g., 29 CFR part 1910 and/or 
1926, as applicable, or the state or local occupational safety and 
health regulations, whichever are more stringent.
    (11) Written Policies and Procedures. You must have written 
policies and procedures for all phases of intervention, including 
evaluation, development of specifications, financing, occupant 
relocation, independent project inspection, and clearance testing 
(e.g., for mold, lead, carbon monoxide or other hazards, as 
applicable). You and all your subcontractors, sub-recipients, and their 
contractors must comply with these policies and procedures.
    (12) Clearance Testing for Lead Hazard Control Activities. 
Clearance dust testing must be conducted according to the EPA lead 
hazards standards rule (40 CFR part 745) for abatement projects and the 
Lead-Safe Housing rule (24 CFR part 35) for lead hazard control 
activities other than abatement. These are available at http://
www.epa.gov/lead and http://www.hud.gov, respectively.
    (13) Continued Availability of Safe Housing to Low-Income Families. 
Units in which housing-based hazards have been controlled under this 
program shall be occupied by and/or continue to be available to low-
income residents for not less than three years following the completion 
of intervention activities.
    (14) Environmental Review. See Section VIII (Environmental 
Requirements) of this program section.
    (15) Relocation. Any person (including individuals, partnerships, 
corporations or associations) who moves from real property or moves 
personal property from real property directly (1) because of a written 
notice to acquire real property, in whole or in part, or (2) because of 
the acquisition of the real property, in whole or in part, for a HUD-
assisted activity, is covered by Federal relocation statutes and 
regulations. Specifically, this type of move is covered by the 
acquisition policies and procedures and the relocation requirements of 
the Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970 URA, as amended, and the implementing government-
wide regulation at 49 CFR part 24. The relocation requirements of the 
URA and the government-wide regulations cover any person who moves 
permanently from real property or moves personal property from real 
property directly because of acquisition, rehabilitation or demolition 
for an activity undertaken with HUD assistance. See Section V(G) of the 
General Section of the SuperNOFA for additional information about 
relocation.
    (16) Data Collection and Provision. You must collect, maintain and 
provide to HUD the data necessary to document the various approaches 
used to evaluate and control housing-based hazards, including 
evaluation and control methods, building conditions, medical and 
familial information (with confidentiality of individually-identifiable 
information ensured) in order to determine the effectiveness and 
relative cost of these methods.
    (17) Section 3 Employment Opportunities. Recipients of assistance 
in the Healthy Homes Demonstration Program must comply with Section 3 
of the Housing and Urban Development Act of 1968, 12 U.S.C. 1701u 
(Economic Opportunities for Low- and Very Low-Income Persons in 
Connection with Assisted Projects) and the HUD regulations at 24 CFR 
part 135, including the reporting requirements of subpart E. Please see 
section V(E) of the General Section of the SuperNOFA for additional 
information about section 3 requirements.
    (18) Certifications and Assurances. You must include the 
certifications and assurances listed in section V (H) of the General 
Section of this SuperNOFA with your application. A Certification of 
Consistency with the Consolidated Plan is not required for the Healthy 
Homes Demonstration NOFA.
    (19) Davis-Bacon Act. The Davis-Bacon Act does not apply to this 
program. However, if program funds are used in conjunction with other 
Federal programs in which Davis-Bacon prevailing wage rates apply, then 
Davis-Bacon provisions would apply to the extent required under the 
other Federal programs.
    (20) Conducting Business in Accordance with HUD Core Values and 
Ethical Standards. If awarded assistance under the Healthy Homes 
Demonstration NOFA, you will be required, prior to entering into a 
grant agreement with HUD, to submit a copy of your code of conduct and 
describe the methods you will use to ensure that all officers, 
employees, and agents of your organization are aware of your code of 
conduct. See section V(B)(3) of the General Section of the SuperNOFA 
for information about conducting business in accordance with HUD's core 
values and ethical standards.
    (21) Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses. HUD is committed 
to ensuring that small businesses, small disadvantaged businesses and 
women-owned businesses participate fully in HUD's direct contracting 
and in contracting opportunities generated by HUD grant funds. Too 
often, these businesses still experience difficulty accessing 
information and successfully bidding on Federal contracts. HUD 
regulations at 24 CFR 85.36(e) require recipients of assistance 
(grantees and sub-grantees) to take all necessary affirmative steps in 
contracting for purchase of goods or services to assure that minority 
firms, women's business enterprises, and labor surplus area firms are 
used when possible. Affirmative steps shall include:
    (a) Placing qualified small and minority businesses and women's 
business enterprises on solicitation lists;
    (b) Assuring that small and minority business and women's business 
enterprises are solicited whenever they are potential sources;
    (c) Dividing total requirements, when economically feasible, into 
smaller tasks or quantities to permit maximum participation by small 
and minority business and women's business enterprises;

[[Page 21369]]

    (d) Establishing delivery schedules, where the requirement permits, 
which encourage participation by small and minority business and 
women's business enterprises;
    (e) Using the services and assistance of the Small Business 
Administration and the Minority Business Development Agency of the 
Department of Commerce; and
    (f) Requiring the prime contractor, if subcontracts are to be let, 
to take the affirmative steps listed in paragraphs (V) (a) through (e) 
above.
    Refer to section V(F) the General Section of the SuperNOFA for 
additional information.
    (22) Human Subjects Research. In conformance with the Common Rule 
(Federal Policy for the Protection of Human Subjects, codified by HUD 
at 21 CFR part 60), if your research involves human subjects, your 
organization must provide an assurance (e.g., a letter signed by an 
appropriate official) that the research has been reviewed and approved 
by an Institutional Review Board (IRB) before you can receive funds 
from HUD for activities that require IRB approval. Before proceeding 
with activities that require IRB approval, you must provide the number 
for your organization's assurance (i.e., an ``institutional 
assurance'') that has been approved by the Department of Health and 
Human Service's Office of Human Research Protections (OHRP). For 
additional information on what constitutes human subject research or 
how to obtain an institutional assurance see the OHRP Web site at 
http://www.ohrp.osophs.dhhs.gov.

V. Application Selection Process

    (A) Rating and Ranking. Please see section VI of the General 
Section of the SuperNOFA. Only those applications that meet the 
threshold requirements will be rated and ranked. HUD intends to award 
the highest ranked applications receiving a minimum score of 75 within 
the limits of funding.
    In evaluating applications for funding, HUD will take into account 
an applicant's past performance in managing funds, including the 
ability to account for funds appropriately; timely use of funds 
received either from HUD or other Federal, State or local programs; 
meeting performance targets for completion of activities and number of 
persons to be served or targeted for assistance. HUD may use 
information relating to these items based on information at hand or 
available from public sources such as newspapers, Inspector General or 
Government Accounting Office Reports or Findings, hotline complaints 
that have been proven to have merit, or other such sources of 
information. In evaluating past performance, HUD may elect to deduct 
points from the rating score as specified under the Factors for Award 
or set threshold levels for performance as specified in the funding 
announcement.
    (B) Factors for Award Used to Evaluate and Rate Applications. The 
factors for rating and ranking applicants, and maximum points for each 
factor, are stated below. The maximum number of points to be awarded is 
102, including the potential for two bonus points for RC/EZ/EC, as 
described in the section VI (C) (1) of the General Section of the 
SuperNOFA.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points)

    This factor addresses your organizational capacity necessary to 
successfully implement your proposed activities in a timely manner. The 
rating of you or your staff includes any faith-based and other 
community-based organizations, sub-contractors, consultants, sub-
recipients, and members of consortia that are firmly committed to your 
project. Applicants that are, or propose to either partner, fund, or 
sub-contract with grassroots organizations, including faith-based and 
other community-based non-profits, in conducting their work programs 
will receive higher rating points as specified in section II of the 
General Section of the SuperNOFA. In rating this factor, HUD will 
consider the four items listed below.
    (1) Your recent, relevant and successful demonstrated experience in 
undertaking eligible program activities. You must describe the 
knowledge and experience of the proposed overall project director and 
day-to-day project manager in planning and managing large and complex 
interdisciplinary programs, especially those involving housing, public 
health, or environmental programs. In your narrative response for this 
factor, you should include information on your project staff, their 
experience, percentage commitment to the project, and position titles. 
Resumes of up to three pages each and position descriptions for up to 
three key personnel in addition to the project director and project 
manager, and a clearly delineated organizational chart for the Healthy 
Homes project you propose, must be included in Appendix 1 of your 
application. Position descriptions and copies of job announcements 
(including salary range) should be included for any key positions that 
are currently vacant or contingent upon an award. Indicate the name of 
the position of key personnel, the percentage of time that proposed 
staff will devote to your project and any salary costs to be paid by 
funds from this program. Include descriptions of the experience and 
qualifications of subcontractors and consultants. You may find it 
useful to include a table indicating the name, position and percentage 
contribution of staff members, specifying organizational affiliation. 
HUD reserves the right to terminate grant awards made to applicants 
that fail to timely hire (within 120 days of award) staff to fill key 
positions identified in the applicant's proposal as vacant.
    (2) Your qualifications to carry out the proposed activities as 
evidenced by experience, academic background, training, and/or relevant 
publications of project staff. Whether you have sufficient personnel, 
or will be able to quickly retain qualified experts or professionals to 
begin your proposed project immediately, and to perform your proposed 
activities in a timely and effective fashion. Describe how principal 
components of your organization will participate in, or support, your 
project. You should thoroughly describe capacity, as demonstrated by 
experience in initiating and implementing related environmental, 
health, or housing projects.
    (3) The past performance of the organization (applicant or 
partners) in another Healthy Homes or Lead Hazard Control grant, 
another grant related to environmental health and safety issues, or 
other experience in a similar program. Provide details about the nature 
of the project, the funding agency, and your performance, relative to 
performance measures or the achievement of desired health outcomes.
    (4) If your organization is an existing Healthy Homes grantee, 
provide a description of the progress and outcomes achieved in that 
grant. If you received previous Healthy Homes Demonstration funding, 
this experience will be evaluated in terms of cumulative progress and 
achievements under the previous grant.
    Appendix B provides a sample worksheet to facilitate your response 
to this Rating Factor.

Rating Factor 2: Need/Extent of the Problem (15 Points)

    This factor addresses the extent to which there is a need for your 
proposed project activities to address documented problems related to 
healthy homes

[[Page 21370]]

issues and housing-related hazards in your target area(s) and target 
group(s).
    (1) Document a critical level of need for your proposed activities 
in the area where activities will be performed. You should pay specific 
attention to documenting the need as it applies to your target area(s), 
rather than the larger geographic area.
    (2) Your documentation should summarize available data linking 
housing-based hazards to disease or injuries to children in your target 
area(s). Examples of data that might be used to demonstrate need 
include:
    (a) Economic and demographic data relevant to your target area(s), 
including poverty and unemployment rates;
    (b) Rates of childhood illnesses (e.g., asthma, allergies, 
hypertension, elevated blood lead levels) or injuries (e.g., falls, 
burns) among children residing in your target areas that could be 
caused or exacerbated by exposure to conditions in the home 
environment; and
    (c) Unavailability of other Federal, State or local funding or 
private sector resources that could be, or are being, used to address 
the problem. Document what funding sources were investigated and why 
there were inadequate.
    (3) For the areas targeted for your project activities, provide 
data available in your jurisdiction's currently approved Consolidated 
Plan and the Analysis of Impediments to Fair Housing Choice (AI) or 
Indian Housing Plan or derived from current census data or from other 
sources. Provide and reference data that address the following:
    (a) The age and condition of housing;
    (b) The number and percentage of low- and very low-income families 
with incomes less than 50 percent and 80 percent of the median income, 
respectively, as determined by HUD, for the area, with adjustments for 
smaller and larger families. Statistics that describe low- and very-low 
income families are available at http://www.huduser.org/datasets/il/
fmr00/sect82.html. Additional census statistics are available at: 
http://www.census.gov/hhes/www/income00.html, http://www.census.gov/
hhes/income/income00/statemhi.html, and http://www.huduser.org/
datasets/il/fmr00/index.html;
    (c) To the extent that statistics and other data contained in your 
community's Consolidated Plan or AI support the extent of the problem, 
you should include references to the Consolidated Plan or AI in your 
response; and
    (d) Data documenting targeted groups that are traditionally 
underserved or have special needs. For a maximum score in this rating 
factor, data provided should specifically represent the target area. If 
the data presented in your response does not specifically represent 
your target area, you should discuss why the target areas are being 
proposed. If your application addresses needs that are in the 
Consolidated Plan or AI, you will receive more points than applicants 
that do not relate their project to a previously identified need.
    Sample worksheets are provided at Appendix B to facilitate your 
response to Rating Factor 2.

Rating Factor 3: Soundness of Approach (40 Points)

    This factor addresses the quality and cost-effectiveness of your 
proposed work plan. You should present information on the proposed 
approach for addressing housing-based hazards and describe how proposed 
activities would help HUD achieve its goals for this program area. For 
you to receive maximum points for this factor, there must be a direct 
relationship between the proposed activities, documented and 
demonstrated community needs, and the purpose of the project. Your 
application will be evaluated according to the comprehensiveness of 
addressing activities that are applicable to your project. The response 
to this factor should include details about your technical approach and 
project activities. HUD is looking for a clear statement of activities, 
timeline form completing the work and expected deliverables, including 
any quantitative deliverables.
    (1) Approach for Implementing the Project (25 points).
    (a) Technical Approach. Describe your overall technical approach 
for strategizing and implementing your proposed project. Your narrative 
response to this sub-factor will be used to assess how well your 
proposed project will be executed. The discussion must include a work 
plan of essential elements, such as who, what, when, where and how the 
project will be performed and provide information about the execution 
of the project. In this factor, describe the methods, schedule, and 
quality assurance activities that will be carried out to identify and 
control housing-based hazards and to achieve the desired project 
outcomes.
    (b) Project Activities. Your project description must include a 
discussion of specific planned project activities that address one or 
more of the following activities.
    (i) Describe in detail how you will identify, select, prioritize, 
and enroll units of eligible housing in which you will undertake 
housing-based hazard interventions, how you will integrate safe work 
practices into housing maintenance, repair, and improvements, and then 
target such units to low-income families with young children. Describe 
impediments that you anticipate for recruitment, measures you will 
perform to sustain recruitment, and the staff responsible for both 
monitoring recruitment status and implementing the measures identified 
to sustain recruitment. You should use all reasonably available sources 
of information on controlling housing-based hazards in buildings and 
protecting workers and occupants during and after the intervention 
process.
    (ii) Describe any assessment tools you would employ to establish 
baseline data. These tools include questionnaires, visual assessment 
protocols and environmental sampling and analysis. Include a 
description of the Informed Consent/Disclosure process you intend to 
follow and relevant Institutional Review Board (IRB) procedures. In 
particular, describe how you will provide informed consent (e.g., from 
the subjects, and their parents and guardians, as applicable) to help 
ensure their understanding of, and consent to, the elements of informed 
consent, such as the purposes, benefits and risks of the research 
activities. Describe how this information will be provided and how the 
consent will be collected. For example, describe the use of ``plain 
language'' forms, flyers, and verbal scripts, and your plans to work 
with families with Limited English Proficiency or primary languages 
other than English, and with families including persons with 
disabilities.
    (iii) Describe your process for evaluating units of eligible 
housing in which you will undertake housing-based hazard interventions. 
Provide the estimated total number of owner-occupied and/or rental 
units in which you will perform assessments and conduct interventions.
    (iv) Describe any specialized testing, if any, or visual inspection 
that you will conduct during unit inspection with reference to 
source(s) of the protocol(s). Provide a description of protocols or 
include protocols in an appendix of your application.
    (v) Discuss efforts to incorporate cost-effective methods to 
address multiple environmental health and safety hazards, and describe 
the specific interventions you will utilize to control housing-based 
hazards before children are affected; and/or to control these hazards 
in units where children have already been treated for illnesses or

[[Page 21371]]

injuries associated with housing-based hazards (e.g., burns, lead 
poisoning, asthma). Provide an estimate of the cost of each 
intervention and an estimate of costs projected per unit. (You may want 
to provide these cost estimates in a tabular format.)
    (vi) Describe the process for your referral of children for medical 
case management if this is not ongoing and the organizations that will 
be involved in this process.
    (vii) Describe your process for the development of work 
specifications for the selected interventions.
    (viii) Describe your management processes to be used to ensure the 
cost-effectiveness of the housing interventions.
    (ix) Discuss your process to select and obtain contractors for 
conducting interventions in selected units and provide details about 
the competitive bidding process, if applicable.
    (x) Describe your plan for the relocation of occupants of units 
selected for intervention, if relocation is necessary. Describe 
criteria that will determine the need for relocation and identify staff 
who will make relocation decisions. Address the use of safe houses and 
other housing arrangements, storage of household goods, stipends, 
incentives, etc., and the source of funding for relocation.
    (xi) Describe your plan for ensuring right of return and/or first 
referral for occupants of units selected for intervention who have had 
to move for intervention to occur.
    (xii) Describe how you will affirmatively further fair housing, 
which would include, but not be limited to: Affirmative marketing of 
the program to those least likely to apply based on race, religion, 
disability, and large families, especially when persons in these 
demographic groups are generally not served by the nonprofit or faith-
based applicant or partner organizations; using a variety of materials 
for outreach to persons with disabilities and with Limited English 
Proficiency (LEP); assuring long-term residency by families currently 
living in the community; assuring that priority for treated units go to 
those who need the features (treatment) of the unit, and issues of 
environmental justice.
    (xiii) Describe the financing strategy, including eligibility 
requirements, terms, conditions, and amounts available, to be employed 
in conducting housing-based hazards activities. You must discuss the 
way funds will be administered (e.g., use of grants, deferred loans, 
forgivable loans, other resources, private sector financing, etc.) as 
well as the agency that will administer the process.
    (xiv) Describe your proposed methods for community and/or targeted 
education and training. These should include community awareness, 
education, training, and outreach programs that support your work plan 
and are culturally sensitive, targeted, and linguistically appropriate. 
Provide information about specific educational/outreach activities with 
quantitative data (number of individuals to be reached, etc.) and a 
description of the intended audience. Describe proposed activities to 
deliver culturally appropriate educational materials and methods to the 
target population and communities. Describe efforts to understand and 
incorporate culturally sensitive approaches to assessment and 
interventions.
    (xv) Provide detailed information about training staff to provide 
the knowledge and skills required to address Healthy Homes issues that 
are essential for successfully implementing your project (e.g., 
assessments and interventions). Include an outline of training 
curricula and a description of qualifications of trainers. Describe how 
Healthy Homes training programs will be expanded to include public 
housing agencies or tribally Designated Housing Entities and other 
potential collaborators, such as faith-based and community 
organizations.
    (xvi) Describe your proposed involvement of neighborhood, or faith-
based and other community-based organizations in the proposed 
activities. These activities may include outreach, community education, 
marketing, inspection, and housing evaluations and interventions.
    (xvii) Describe your proposed methods to reach high-risk groups and 
communities, vulnerable populations and persons traditionally 
underserved.
    (xviii) Indicate if, and describe how, you will address any of 
HUD's Departmental policy priorities (see the section II of the General 
Section of the SuperNOFA for a fuller explanation of HUD's policy 
priorities). Applicants that include work activities that specifically 
address one or more applicable policy priorities will receive higher 
rating scores than applicants that do not address these HUD priorities, 
up to a maximum of 3 points. Policy priorities that are potentially 
applicable to the Healthy Homes Demonstration NOFA are: Improving the 
Quality of Life in our Nation's Communities; Providing Full and Equal 
Access to Faith-Based and Other Community-Based Organizations in HUD 
Program Implementation; Colonias; and Participation in Energy Star.
    (2) Approach for Managing the Project. (12 points). Describe your 
project goals and objectives and the strategy you will use in managing 
and executing the project. You should provide information on the 
general approach and overall plan employed.
    (a) Baseline Plan for Project Management (10 points). Include a 
management plan that:
    (i) Lists the project objectives, major tasks and activities. All 
specific activities necessary to complete the proposed project must be 
included in the task listing;
    (ii) Incorporates appropriate performance goals and benchmarks;
    (iii) Identifies major milestones and provides a schedule for the 
assignment, tracking and completion of major tasks and activities, and 
a timeframe for delivery;
    (iv) Ensures that quality assurance activities and corrective 
actions are managed;
    (v) Designates resources and identifies responsible entities;
    (vi) Describes the strategy and methods for coordination and 
communication between partners; and
    (vii) Describes the management processes to manage costs and ensure 
that cost-effective housing interventions will be implemented.
    (b) Budget Justification (2 points). Your proposed budget will be 
evaluated for the extent to which it is reasonable, clearly justified, 
and consistent with the project management plan and intended use of 
program funds. HUD is not required to approve or fund all proposed 
activities. Your budget should be submitted in the format recommended 
in Appendix E (Forms) of this NOFA. An electronic spreadsheet and other 
budgetary forms are available at HUD's Web site, http://www.hud.gov. 
You must thoroughly document and justify all budget categories and 
costs (HUD Form 424-C) and all major tasks for yourself, sub-
recipients, partners, major subcontractors, joint venture participants, 
or others contributing resources to the project. Describe clearly and 
in detail your budgeted costs for each required program element (major 
task) included in your overall plan.
    (3) Economic Opportunity (3 points). To the greatest extent 
feasible, your project should promote job training, employment, and 
other economic opportunities for low-income and minority residents and 
businesses which are owned by, and/or employ, low-income and minority 
residents as defined in 24 CFR 135.5. You should:

[[Page 21372]]

    (a) Describe how you or your partners will comply with section 3 of 
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and 
HUD's implementing rules at 24 CFR part 135. Describe how you will 
accomplish this requirement by (1) providing training and employment 
opportunities for low- and very low-income persons living within the 
grantee's jurisdiction, and by (2) providing business opportunities to 
businesses owned by low- and very low-income persons living within the 
targeted jurisdiction;
    (b) Describe how your project will give preference to hiring low- 
and very low-income persons or contracting with businesses owned by or 
employing low- and very-low income persons. Information about section 3 
requirements is available by searching HUD's Web site, http://www.hud.gov;
    (c) Describe how your proposed project will further and support the 
policy priorities of the Department (section II of the General Section 
of the SuperNOFA and Rating Factor 3 (1)(b)(xviii) of this NOFA), 
including providing opportunities for self-sufficiency, particularly 
for persons enrolled in welfare-to-work programs, or providing 
educational and job training opportunities; and
    (d) Describe the extent to which your proposed activities will 
occur in an Empowerment Zone or Enterprise Community (EZ/EC), Urban 
Enhanced Enterprise Community (EEC), or Strategic Planning Community or 
Renewal Community (RC) as defined in section VI (C)(1) of the General 
Section of the SuperNOFA.

Rating Factor 4: Leveraging Resources (10 Points)

    This factor addresses your ability to secure other community 
resources (e.g., financing, supplies or services) that can be combined 
with HUD's resources to achieve project purposes. These community 
resources may be contributions from organizations such as the 
applicant, partners, or other organizations not directly involved in 
the project.
    (1) In evaluating this factor, HUD will consider the extent to 
which you have developed partnerships to secure additional resources to 
increase the effectiveness of your proposed project. Describe how other 
organizations will participate in or support your project. Resources 
may include funding or in-kind contributions (e.g., labor, fringe 
benefits, services, supplies, or equipment) budgeted for your proposed 
project. Resources may be provided by State and local governmental 
entities, public or private organizations, or other partners.
    (2) Each source of contributions (financial or in-kind) must be 
supported by a letter of commitment from the contributing entity, 
whether the applicant, a partner organization, or a public or private 
source. The letter must describe the contributed resource(s) that will 
be used in your project and the dollar value of each contribution. 
Staff in-kind contributions should be given a market-based monetary 
value. If you fail to provide letters of commitment with specific 
details, including the amount of the actual contributions, you will not 
get rating points for this factor. Each letter of commitment, 
memorandum of understanding, or agreement to participate shall include 
the organization's name and the proposed level of commitment and 
responsibilities as they relate to the proposed project. The commitment 
must be signed by an official legally able to make commitments on 
behalf of the organization. Letters of support (letters that indicate 
support, but do not specify a monetary commitment to the project) will 
not be considered in the scoring of Rating Factor 4. Include 
information to address the following elements.
    (a) The extent to which you have coordinated your activities with 
other known organizations that are not directly participating in your 
proposed work activities, but with which you share common goals and 
objectives.
    (i) Describe your plan for integrating and coordinating housing-
based hazard interventions with other housing-related activities (e.g., 
rehabilitation, weatherization, correction of code violations, and 
other similar work).
    (ii) Describe your plans to generate and use public subsidies or 
other resources, such as revolving loan funds, to finance future 
interventions to prevent and control housing-based hazards, 
particularly in low- and very low-income housing.
    (b) The extent to which your project exhibits the potential to be 
financially self-sustaining by decreasing dependence on Federal funding 
and relying more on State, local and private funding to continue 
healthy homes activities after the grant period is completed.

Rating Factor 5: Achieving Results and Program Evaluation (15 points)

    This factor emphasizes HUD's commitment to ensuring that applicants 
keep promises made in their applications and assess their performance 
to ensure that performance goals are met. Achieving results means you, 
the applicant, have clearly identified the benefits or outcomes of your 
program. Outcomes are ultimate goals. Benchmarks or outputs are interim 
activities or products that lead to the ultimate achievement of your 
goals.
    Program evaluation requires that you, the applicant, identify 
program outcomes, interim products or benchmarks, and performance 
indicators that will allow you to measure your performance. Performance 
indicators should be objectively quantifiable and measure actual 
achievements against anticipated achievements. Your Evaluation Plan 
should identify what you are going to measure, how you are going to 
measure it, and the steps you have in place to make adjustments to your 
work plan if performance targets are not met within established 
timeframes.
    This new rating factor reflects HUD's goal to embrace high 
standards of ethics, management and accountability. In evaluating this 
factor, HUD will consider how you have described outcome measures and 
benefits of your program.
    In your response to this rating factor, you are to discuss the 
performance goals for your project, and identify specific outcome 
measures. You are also to describe how the outcome information will be 
obtained, documented, and reported. You must complete and return the 
Logic Model Form included in Appendix B of the General Section of the 
SuperNOFA showing your proposed project long-term, mid-term, short-term 
and final results, and how they support HUD's departmental goals and 
objectives. Information about developing a Logic Model is available at 
http://www.hud.gov.
    In responding to this factor, you should:
    (1) Identify and discuss the specific methods you will use to 
measure progress towards your goals, track and report results of 
interventions, and evaluate the effectiveness of interventions;
    (2) Identify benchmarks that you will use to track the progress of 
your project;
    (3) Identify important project milestones (e.g., the end of 
specific phases in a multi-phased project) and deliverables specific to 
your project timeline;
    (4) Identify milestones that are critical to achieving project 
objectives (e.g., recruitment and sustainability of participants, the 
Institutional Review Board process, if applicable, or the process of 
Informed Consent);
    (5) Identify how your project will be held accountable for meeting 
project goals, objectives, and the actions

[[Page 21373]]

undertaken in implementing the grant program. You should provide 
assurances that work plans and performance measures developed for your 
project will be achieved in a timely and cost-effective manner;
    (6) Provide data on those served by race, ethnicity, disability, 
size of family and ages of children, and single-parent households; and
    (7) Provide a Logic Model that describes activities, assessments, 
interventions and outcomes for your project. Information and templates 
for the Logic Model are available at http://www.hud.gov.
    (C) Applicant Debriefing. See Section XI (A)(4) of the General 
Section of the SuperNOFA for information about applicant debriefing.

VI. Application Submission Requirements

    (A) Applicant Information. You should submit your application in 
accordance with the format and instructions contained in this NOFA and 
in the section VII of the General Section of the SuperNOFA. The 
following is a list of required application contents. Your application 
must contain the items in the list below and in the General Section of 
the SuperNOFA. These requirements are presented as a ``Checklist and 
Submission Table of Contents,'' provided in Appendix E of this NOFA.
    (1) Transmittal letter (one-page only) that summarizes your 
proposed project, provides the dollar amount requested, and identifies 
you and your partners in the application.
    (2) The name, mailing address, and telephone number of the 
principal contact person. If you are a consortium of associates, sub-
recipients, partners, major subcontractors, joint venture participants, 
or others contributing resources to the project, similar information 
shall also be provided for each of these entities. You must specify the 
primary entity.
    (3) An abstract describing the goals and objectives of your 
proposed program (2-page limit, single-spaced, 12-point font, one-inch 
margins) must be included in the proposal.
    (4) Checklist and Submission Table of Contents. (Appendix E)
    (5) Required Forms:

HUD Form 424, Standard Form for Application for Federal Assistance;
HUD Form 424 B, Applicant Assurances and Certifications;
HUD Form 424 C, Budget Summary for Competitive Grant Programs;
HUD Form 424 CBW;
HUD Form Logic Model Form;
HUD 2880, Applicant/Recipient Disclosure/Update Report;
HUD 2990, Certification of Consistency with EZ/EC Strategic Plan, if 
applicable;
Form SF-LLL, Disclosure of Lobbying Activities, where applicable;
HUD 2993, Acknowledgment of Application Receipt; and
HUD 2994, Client Comments and Suggestions (optional).

A Certification of Consistency with the Consolidated Plan is not 
required for this application.
    (6) A narrative statement addressing the rating factors for award. 
The narrative statement must be numbered in accordance with each factor 
for award (Rating Factors 1 through 5). The response to the rating 
factors must not exceed a total of 25 pages (single-spaced, 12 point 
font, one-inch margins). Any pages in excess of this limit will not be 
read. Key points to consider in preparing your application are provided 
in Appendix C of this NOFA.
    (7) Any attachments, appendices, references, or other relevant 
information that directly support the narrative may accompany it, but 
must not exceed twenty (20) pages (12-point font with one-inch margins) 
for your entire application. Any pages in excess of this limit will not 
be read. Specific criteria for the content of the appendices for the 
Healthy Homes Demonstration Program grant application are listed in the 
Checklist and Submission Table of Contents (see Appendix E of this 
NOFA.)
    (8) A detailed budget with supporting cost justification for all 
budget categories of your funding request, in accordance with Rating 
Factor 3, element (2)(b). This information will not be counted towards 
the page limits. A detailed budget must also be provided for any 
subcontractors, subgrantees, or subrecipients receiving more than 10 
percent of the Federal budget request.
    (9) The resumes and position descriptions of your project director 
and project manager and up to three additional key personnel (in 
accordance with Rating Factor 1), not to exceed three pages each 
(single-spaced, 12-point font with one-inch margins). This information 
is to be included in Appendix 1 of your application and will not be 
counted towards the page limit.

VII. Corrections to Deficient Applications

    Section VIII of the General Section of the SuperNOFA provides the 
procedures for corrections to deficient applications.

VIII. Environmental Requirements

    Activities assisted under this program are subject to HUD 
environmental review to the extent required under 24 CFR part 50. An 
award under the Healthy Homes Initiative does not constitute approval 
of specific sites where activities may be carried out. Following award 
execution, HUD will perform environmental reviews for activities to be 
carried out on properties proposed by your organization. You must 
comply with HUD's regulations in 24 CFR 50.3(h) in carrying out 
responsibilities regarding environmental review. You may not 
rehabilitate, convert, repair or construct a property, or commit or 
expend program funds or non-HUD funds for these program activities for 
any eligible property, until you receive written notification from the 
appropriate HUD official that HUD has completed its environmental 
review and the property has been approved. The results of environmental 
reviews may require that proposed activities be modified or proposed 
sites rejected. Recipients of a grant under this NOFA will be given 
guidance in these responsibilities.

IX. HUD Reform Act of 1989

    The provisions of the HUD Reform Act of 1989 that apply to this 
NOFA are explained in the section XI (A) of the General Section of the 
SuperNOFA.

X. Authority

    The authority for this program is sections 501 and 502 of the 
Housing and Urban Development Act of 1970 and the Consolidated 
Appropriations Resolution of 2003, Public Law 108-7, approved February 
20, 2003.

Appendix A: Housing-Related Health and Injury Hazards

    The following briefly describes the housing-associated health 
and injury hazards HUD considers key targets for intervention. More 
information about housing-associated health and injury hazards is 
available at the Healthy Homes Initiative Web site, at http://www.hud.gov.
    Allergens and asthma: Experts estimate that 14 million Americans 
have asthma, with an associated annual cost of $6.2 billion. Asthma 
is now recognized as the leading cause of school and work absences, 
emergency room visits and hospitalizations. For sensitized children, 
exposure to antigens from dust mites, certain pets, and cockroaches 
has been associated with more severe asthma. There is a 
preponderance of evidence showing a dose-response relationship 
between exposure and prevalence of asthma and allergies; some 
evidence also indicates that exposure to antigens early in life may 
predispose or hasten the onset of allergies and asthma. Dust mites 
have been identified as the largest

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trigger for asthma and allergies. Cockroach allergens appear to be 
excessive in 30-50 percent of inner-city housing and affect 5-15 
percent of the population, whereas dust mites appear to be the 
dominant allergen in other environments.
    Interventions known to have beneficial effects include the 
installation of impervious mattress and pillow covers, which can 
reduce allergen exposure by 90 percent. Other dust mite control 
measures include dehumidification, laundering bedding, and removal 
of carpets and other dust sinks. Cleaning carpets with tannic acid 
solution has also been demonstrated to greatly reduce dust mites. 
Asthma prevention program costs have been estimated at about $500 
per unit, which includes about $150 for educational interventions. 
Additional information is available in HUD's research topic paper, 
``Healthy Homes Issues: Asthma'' available at the Resources, 
Technical Resources link of HUD's Healthy Homes Initiative Web site, 
linked to HUD's Web site, http://www.hud.gov.
    Asbestos: Asbestos is a mineral fiber that has been used 
commonly in a variety of building construction materials and 
household products for insulation and as a fire-retardant. The 
Environmental Protection Agency (EPA) and the Consumer Product 
Safety Commission (CPSC) have banned most asbestos products. 
Manufacturers have also voluntarily limited uses of asbestos. Today, 
asbestos is most commonly found in older homes, in pipe and furnace 
insulation materials, asbestos shingles, millboard, textured paints 
and other coating materials, and floor tiles. Elevated 
concentrations of airborne asbestos can occur when asbestos-
containing materials (ACMs) are disturbed by cutting, sanding or 
other remodeling activities. Improper attempts to remove these 
materials can release asbestos fibers into the air in homes, 
increasing asbestos levels and endangering the people living in 
those homes. The most dangerous asbestos fibers are too small to be 
visible. After they are inhaled, they can remain and accumulate in 
the lungs. Asbestos can cause lung cancer, mesothelioma (a cancer of 
the chest and abdominal linings), and asbestosis (irreversible lung 
scarring that can be fatal). Most people with an asbestos-related 
disease were exposed to elevated concentrations on the job; some 
developed disease from exposure to clothing and equipment brought 
home from job sites. As with radon, dose-response extrapolations 
suggest that lower level exposures, as may occur when asbestos-
containing building materials deteriorate or are disturbed, may also 
cause cancer.
    Intact asbestos-containing materials are not a hazard; they 
should be monitored for damage or deterioration and isolated if 
possible. Repair of damaged or deteriorating ACMs usually involves 
either sealing (encapsulation) or covering (enclosure) it. Repair is 
usually cheaper than removal, but it may make later removal of 
asbestos more difficult and costly. Repairs should be done only by a 
professional who is trained and certified to handle asbestos safely. 
Repairs can cost from a few hundred to a few thousand dollars and 
removal can be more expensive.
    Combustion products of heating and cooking appliances: Burning 
of oil, natural gas, kerosene, and wood for heating or cooking 
purposes can release a variety of combustion products of health 
concern. Depending upon the fuel, these may include carbon monoxide 
(a chemical asphyxiant), oxides of nitrogen (respiratory irritants), 
polycyclic aromatic hydrocarbons (e.g., the carcinogen 
benzo[a]pyrene), and airborne particulate matter (respiratory 
irritants). Carbon monoxide, an odorless gas, can be fatal. Nitrogen 
dioxide can damage the respiratory tract, and sulfur dioxide can 
irritate the eyes, nose and respiratory tract. Smoke and other 
particulates irritate the eyes, nose and throat, and can cause lung 
cancer.
    Improper venting and poor maintenance of heating systems and 
cooking appliances can dramatically increase exposure to combustion 
products. Experts recommend having combustion heating systems 
inspected by a trained professional every year to identify blocked 
openings to flues and chimneys, cracked or disconnected flue pipes, 
dirty filters, rust or cracks in heat exchangers, soot or creosote 
build-up, and exhaust or gas odors. Installing a carbon monoxide 
detector is also recommended; however, such a detector will not 
detect other combustion by-products.
    Insect and rodent pests: The observed association between 
exposure to cockroach antigen and asthma severity has already been 
noted above. In addition, cockroaches may act as vehicles to 
contaminate environmental surfaces with certain pathogenic 
organisms. Rodents can transmit a number of communicable diseases to 
humans, either through bites, arthropod vectors, or exposure to 
aerosolized excreta. In addition, humans can become sensitized to 
proteins in rodent urine, dander and saliva. Such sensitization may 
contribute to asthma severity among children. Insect and rodent 
infestation is frequently associated with substandard housing that 
makes it difficult to eliminate. Treatment of rodent and insect 
infestations often includes the use of toxic pesticides that may 
present hazards to occupants (see below). Integrated pest management 
(IPM) for rodents and cockroaches, which reduces the use of 
pesticides, is estimated to cost approximately $150 per unit. IPM 
control measures include sealing holes and cracks, removing food 
sources and the use of traps. In technical terms, IPM is the 
coordinated use of pest and environmental information with available 
pest control methods to prevent unacceptable levels of pest damage 
by the most economical means and with the least possible hazard to 
people, property, and the environment. (One information source is 
the University of Minnesota's electronic textbook of Integrated Pest 
Management, available at http://ipmworld.umn.edu/textbook.htm.)
    Lead: Exposure to lead, especially from deteriorating lead-based 
paint, remains one of the most important and best-studied of the 
household environmental hazards to children. Although blood lead 
levels have fallen nationally, a large reservoir of lead remains in 
housing. The National Health and Nutrition Examination Survey (1991-
1994) showed that nearly one million U.S. preschoolers still have 
elevated blood lead levels. Overall, the prevalence rate among all 
children under six years of age is 4.4 percent. Among low-income 
children living in older housing where lead-based paint is most 
prevalent, the rate climbs to 16 percent; and for African-American 
children living in such housing, it reaches 21 percent.
    The National Survey of Lead and Allergens in Housing (2000) 
estimates that 38 million dwellings have some lead-based paint, and 
that 24 million have significant lead-based paint hazards. Of those, 
about 4.8 million have young children and of those, about 1.2 
million have household incomes under $30,000 per year. Costs for 
Lead Hazard Control can range anywhere from $500 to $15,000 per 
unit. Corrective measures include paint stabilization, enclosure and 
removal of certain building components coated with lead paint, and 
cleanup and ``clearance testing,'' which ensures the unit is safe 
for young children.
    Mold and moisture: An analysis of several pulmonary disease 
studies estimates that 25 percent of airways disease, and 60 percent 
of interstitial lung disease may be associated with moisture in the 
home or work environment. Moisture is a precursor to the growth of 
mold and other biological agents, which is also associated with 
respiratory symptoms. An investigation of a cluster of pulmonary 
hemosiderosis (PH) cases in infants showed PH was associated with a 
history of recent water damage to homes and with levels of the mold 
Stachybotrys atra (SA) in air and in cultured surface samples. 
Associations between exposure to SA and ``sick building'' symptoms 
in adults have also been observed. Other related toxigenic fungi 
have been found in association with SA-associated illness and could 
play a role. For sensitive individuals, exposure to a wide variety 
of common molds may also aggravate asthma. Addressing mold problems 
in housing requires coordination among the medical, public health, 
microbiological, housing, and building science communities. 
Additional information is available in HUD's research topic paper, 
``Healthy Homes Issues: Mold'' available at the Resources, Technical 
Resources link of HUD's Healthy Homes Initiative website, linked to 
HUD's Web site, http://www.hud.gov.
    The cost of mold/moisture-related intervention work (e.g., IPM, 
clean and tune furnace, remove debris, vent clothes dryer, cover 
dirt floor with impermeable vapor barrier) is a few hundred dollars, 
unless major modification of the ventilation system is needed. For 
example, in Cleveland, mold interventions, including repairs to 
ventilation systems and basement flooring, in the most heavily 
contaminated homes range from $500-$5,000, with some costs also 
being dedicated to lead hazard control simultaneously through its 
Lead+Asthma program.
    Pesticide residues: According to the EPA, 75 percent of U.S. 
households used at least one pesticide product indoors during the 
past year. Products used most often are insecticides and 
disinfectants. Another study suggests that 80 percent of most 
people's exposure to pesticides occurs indoors and

[[Page 21375]]

that measurable levels of up to a dozen pesticides have been found 
in the air inside homes. The amount of pesticides found in homes 
appears to be greater than can be explained by recent pesticide use 
in those households; other possible sources include contaminated 
soil or dust that migrates in from outside, stored pesticide 
containers, and household surfaces that collect and then release the 
pesticides. Pesticides used in and around the home include products 
to control insects (insecticides), termites (termiticides), rodents 
(rodenticides), molds and fungi (fungicides), and microbes 
(disinfectants). In 1990, the American Association of Poison Control 
Centers reported that some 79,000 children were involved in common 
household pesticide poisonings or exposures. In households with 
children under five years of age, almost half stored at least one 
pesticide product within the reach of children. Exposure to 
chlorpyriphos (CP), a commonly used organophosphate insecticide, in 
the prenatal and early postnatal period may impair neurological 
development. While CP is a biodegradable pesticide, substantial 
persistence of CP in house dust has been demonstrated. Exposure to 
high levels of cyclodiene pesticides, commonly associated with 
misapplication, has produced various symptoms, including headaches, 
dizziness, muscle twitching, weakness, tingling sensations, and 
nausea. In addition, the EPA is concerned that cyclodienes might 
cause long-term damage to the liver and the central nervous system, 
as well as an increased risk of cancer.
    There are available data on hazard evaluation methods and 
remediation effectiveness regarding pesticide residues in the home 
environment.
    Radon progeny: The National Academy of Sciences estimates that 
approximately 15,000 cases of lung cancer per year are related to 
radon exposure. Epidemiologic studies of miners exposed to high 
levels of radon in inhaled air have defined the dose response 
relation for radon-induced lung cancer at high exposure levels. 
Extrapolation of this data has been used to estimate the excess risk 
of lung cancer attributable to exposure to radon gas at the lower 
levels found in homes. These estimates indicate that radon gas is an 
important cause of lung cancer deaths in the U.S. Excessive 
exposures are typically related to home ventilation, structural 
integrity and location.
    Radon measurement and remediation methods are well developed, 
and the EPA recommends that every home be measured for radon. The 
EPA estimates that materials and labor costs for radon reduction in 
an existing home are $800-$2,500. Including radon resistant 
techniques in new home construction costs $350-$500, and can save up 
to $65 annually in energy costs, according to the EPA.
    Take-home hazards from work/hobbies and work at home: When the 
clothing, hair, skin, or shoes of workers become contaminated with 
hazardous materials in the workplace, such contaminants may 
inadvertently be carried to the home environment and/or an 
automobile. Such ``take-home'' exposures have been demonstrated, for 
example, in homes of lead-exposed workers. In addition, certain 
hobbies or workplaces located in the home may provide an especially 
great risk of household contamination.
    Control methods include storing and laundering work clothes 
separately, and showering and changing clothes before leaving work 
or immediately after arriving at home. Once a home becomes 
contaminated, cleaning floors and contact surfaces and replacing 
furnishings may be necessary to reduce exposures.
    Unintentional injuries/fire: Unintentional injury is now the 
leading cause of death and disability among children younger than 15 
years of age. In 1997, nearly 7 million persons in the U.S. were 
disabled for at least one full day by unintentional injuries 
received at home. During the same year, 28,400 deaths were 
attributable to unintentional home injuries, of which 1,800 occurred 
among children four years of age and younger. Among young children, 
three types of events accounted for more than 75 percent of deaths: 
fires/ burns; drownings; and mechanical suffocation. Falls and 
poisoning are the next most common causes of death.
    Home visitation protocols have been shown to be effective in 
reducing exposure to such hazards. The ``add-on'' cost of injury 
prevention measures, when combined with other housing interventions 
are estimated at about $100 per unit. This includes the cost of some 
injury prevention devices (e.g., smoke alarms, electrical socket 
covers, etc.).
BILLING CODE 4210-32-P

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Appendix C: Preparing Your Application

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience

    In this rating factor, you should provide details about the 
following:
    1. The skills and experience of the staff and the applicant 
organization;
    2. A description of the participating organization, its roles 
and experience;
    3. The past performance of the organization (applicant or 
partners) in another Healthy Homes or Lead Hazard Control grant, 
another grant related to environmental health and safety issues, or 
other experience in a similar program; include the name of the 
project, funding organization, amount funded and desired outcomes 
and results achieved in these projects;
    4. The percentage of time each staff person or subcontractor 
will devote to the project. A staffing table or roster may be 
helpful to address this element. You may want to use the template 
provided as Worksheet 1 of Appendix B;
    5. Level of involvement of the applicant organization in general 
oversight of the project and oversight of the partnering 
organizations;

Rating Factor 2: Need/Extent of the Problem

    In this rating factor, you should provide details about the 
following:
    1. The location of the target area(s) and the rationale for 
selecting these area(s); include backup documentation;
    2. The number of children at risk of environmental illnesses or 
injuries, and the sources of this information;
    3. The age and condition of the housing to receive 
interventions, and the sources of this information;
    4. The number of low- and very low-income families and the 
demographic composition of families served by race, ethnicity, 
disability, size of family and ages of children, number of single-
parent households in the target area(s);
    5. Other socio-economic or environmental factors relating to 
need in the target area(s);
    6. The relationship of the Consolidated Plan, Indian Housing 
Plan or the Analysis of Impediments to Fair Housing Choice (AI) to 
the request for assistance.

Rating Factor 3: Soundness of Approach

    In this rating factor, you should provide details about the 
following:
    1. A project work plan that identifies tasks, deliverables, and 
quality assurance activities and describes how the applicant will 
organize and perform Healthy Homes activities;
    2. A schedule of deliverables and project milestones;
    3. The target population for the project and the selection 
criteria involved, and the relationship of the activities to ``Need/
Extent of the Problem'' as established in Rating Factor 2;
    4. The number of families or individuals to be enrolled and/or 
units to receive assessment and interventions;
    5. The rationale for selecting hazards of concern and 
intervention methods;
    6. The mechanism for funding assessments and interventions;
    7. The costs/unit for intervention;
    8. The medical case management process, if applicable;
    9. The process used to develop work specifications;
    10. The temporary relocation plan, if appropriate, that includes 
who will decide on the need for relocation and the source of funding 
for relocation. Indicate how you will distinguish between temporary 
and permanent relocation and the benefits to be provided;
    11. Awareness, outreach and education activities;
    12. A discussion of project evaluation, data collection, and 
outcome analysis;
    13. The proposed budget, with justification of costs by task;
    14. Actions to affirmatively further fair housing;
    15. Provisions for employment and economic development 
opportunities for low- and very low-income individuals;
    16. Mechanisms for communication between the applicant 
organization and partners; and
    17. The coordination of activities in this project with other 
similar projects being performed by the applicant or partnering 
organizations;

Rating Factor 4: Leveraging Resources

    In this rating factor, you should provide details about the 
following:
    1. Identify participating faith-based and community-based 
organizations and other private sector organizations that will 
contribute time and resources to the project;
    2. Include (in Appendix 1 of your application) letters of 
commitment or memoranda of understanding from organizations. These 
letters must provide details about resources to be contributed and a 
dollar amount for the contributed (in-kind or matching) resources. 
(Letters of support that do not provide a dollar amount of 
contributed funding should be included in Appendix 2 of your 
application.);
    3. Applicants should provide a discussion of their plans to 
enhance or expand partnership efforts under this application;
    4. Describe how the effectiveness of grant funds will be 
increased as a result of leveraged efforts; and
    5. Describe any existing or potential Community Reinvestment Act 
funding mechanisms.

Rating Factor 5: Achieving Results and Program Evaluation

    In this rating factor, you should provide details about the 
following:
    1. Desired outcomes for your project;
    2. Mechanisms for collecting and archiving data to develop the 
outcome analysis; and
    3. Include a Logic Model in this Rating Factor. (Information 
about developing a Logic Model is available at http://www.hud.gov.), 
and in the General Section of this SuperNOFA.
    A tabular summary of the Rating Factors and Bonus Points is 
provided below.

------------------------------------------------------------------------
                        Rating factor                            Points
------------------------------------------------------------------------
1. Capacity of the Applicant and Relevant Organizational              20
 Experience..................................................
2. Need/Extent of the Problem................................         15
3. Soundness of Approach.....................................         40
4. Leveraging Resources......................................         10
5. Achieving Results and Program Evaluation..................         15
Empowerment Zone and Enterprise Community Bonus Points.......          2
--------------------------------------------------------------
    Total....................................................        102
------------------------------------------------------------------------

Appendix D: References

    To secure any of the documents listed, call the telephone number 
provided. A number of these references are provided on HUD's CD, 
``Residential Lead Desktop Reference, 3rd Edition.'' This CD can be 
obtained at no charge by calling the National Lead Information 
Clearinghouse, 1-800-424-LEAD.

Regulations

    1. Worker Protection: The two Occupational Safety and Health 
Administration (OSHA) publications listed below can be purchased by 
calling either OSHA Regulations at 202-693-1888 or the Government 
Printing Office (GPO) at 202-512-1800 (these are not toll-free 
numbers).
    (a) General Industry Lead Standard, 29 CFR 1910.1025 (Document 
Number 869022001124). This document can be downloaded without charge 
from the OSHA Web site at http://www.osha-slc.gov/OshStd--data/
1910--1025.html;
    (b) Lead Exposure in Construction, 29 CFR 1926.62, and 
appendices A, B, C, and D (Document Number 869022001141). This 
document can be downloaded without charge from the OSHA Web site at 
http://www.osha-slc.gov/OshStd--data/1926--0062.html.
    2. Waste Disposal. A copy of the EPA regulations at 40 CFR parts 
260-268 can be purchased by calling 1-800-424-9346 (this is a toll-
free number) or downloaded without charge from the EPA Web site at 
http://www.epa.gov/docs/epacfr40/chapt-I.info/subch-I.htm.
    3. Lead.
    (a) Requirements for Lead-Based Paint Activities in Target 
Housing and Child-Occupied Facilities; Final Rule: 40 CFR Part 745, 
(EPA) (Lead Hazard Standards, Work Practice Standards, EDP and State 
Certification and Accreditation programs for those engaged in lead-
based paint activities). Can be purchased by calling the Toxic 
Substances Control Act Hotline at 202-554-1404 (this is not a toll-
free number) or downloaded without charge from the EPA Web site at 
http://www.epa.gov/lead.

Guidelines

    1. Guidelines for the Evaluation and Control of Lead-Based Paint 
Hazards in Housing; HUD, June 1995, and amended September 1997. 
These guidelines can be purchased by calling 1-800-245-2691 toll 
free or downloaded without charge from the HUD Web site at http://
www.hud.gov/offices/lead.

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    2. Preventing Lead Poisoning in Young Children; Centers for 
Disease Control, October 1991. These guidelines can be obtained 
without charge by calling the CDC's toll-free number, 1-888-232-6789 
or they can be downloaded from the HUD Web site at http://
www.hud.gov/offices/lead.
    3. Screening Young Children for Lead Poisoning: Guidance for 
State and Local Public Health Officials, November 1997; Centers for 
Disease Control and Prevention (CDC). These guidelines can be 
obtained without charge by calling the CDC's toll-free number, 1-
888-232-6789 or they can be downloaded from the HUD Web site at 
http://www.hud.gov/offices/lead.

Reports

    1. Putting the Pieces Together: Controlling Lead Hazards in the 
Nation's Housing, (Summary and Full Report); HUD, July 1995. A copy 
of this summary and report may be purchased by calling 1-800-245-
2691 toll-free or through the HUD Web site at http://www.hud.gov/
offices/lead.
    2. The Healthy Homes Initiative: A Preliminary Plan (Summary and 
Full Report); HUD, April, 1999. A copy of this summary report may be 
obtained by calling NLIC's toll-free number, 1-800-424-LEAD, or 
downloaded from the HUD Web site at http://www.hud.gov/offices/lead.
    3. Institute of Medicine. Indoor Allergens. Assessing and 
Controlling Adverse Health Effects. National Academy Press. 
Washington, DC 1993.
    4. Mott L., Our Children at Risk. Natural Resources Defense 
Council. Washington, DC 1997. Can be ordered from the Internet from 
http://www.nrdc.org.
    5. Rom W.N., Ed. Environmental and Occupational Medicine. 
Little, Brown and Co., Boston. 1992.
    6. President's Task Force on Environmental Health Risks and 
Safety Risks to Children. Asthma and The Environment: An Action Plan 
to Protect Children. Washington, DC 1999. Eliminating Childhood Lead 
Poisoning: A Federal Strategy Targeting Lead Paint Hazards. 
Washington, DC 2000. Can be downloaded from the Internet without 
charge from http://www.epa.gov/children.

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Appendix F: Forms and Administrative Costs

    This appendix lists the standard forms, certifications and 
assurances used by the programs that are part of this NOFA. Listed 
forms are located in Appendix B of the General Section of the 
SuperNOFA.
    The following forms are to be used for the Programs listed in 
this NOFA:
    (1) Form HUD-424
    (2) Form HUD-424 B
    (3) Form HUD-424 C
    (4) Form HUD-424 CBW
    (5) Form HUD Logic Model Form
    (6) Application Checklist and Submission Table of Contents
    (7) Ethnicity and Race Data
    HUD has consolidated many of its application forms into a single 
HUD-424 form. The new HUD-424 consolidates budget-reporting forms 
for both construction and non-construction projects into a single 
form and eliminates having to have the following separate 
certifications: Certification for a Drug-Free Workplace (HUD-50070), 
the Certification of Payments to Influence Federal Transactions 
(HUD-50071), and the Certification Regarding Debarment and 
Suspension (HUD-2992).

New form HUD-424 replaces SF-424 and HUD-424 M
HUD-424 B replaces SF-424 B and D and HUD-50070, 50071 and 2992.
HUD-424 C and CB replaces SF-424 A and C
    The HUD-424 CBW is added as a common detailed Budget Worksheet 
and replaces various budget worksheets used throughout the 
Department.

Administrative Costs

    Administrative costs that may be applicable to the programs 
included in this NOFA are discussed below:

I. Purpose

    The intent of this HUD grant program is to allow the Grantee to 
be reimbursed for the reasonable direct and indirect costs, subject 
to a top limit, for overall management of the grant. In most 
instances the grantee, whether a State or a local government, 
principally serves as a conduit to pass funding to sub-grantees, 
which are to be responsible for the conducting lead-hazard reduction 
work. Congress set a top limit of ten percent of the total grant sum 
for the grantee to perform the function of overall management of the 
grant program, including passing on funding to sub-grantees. The 
cost of that function, for the purpose of this grant, is defined as 
the ``administrative cost'' of the grant, and is limited to ten 
percent of the total grant amount. The balance of ninety percent or 
more of the total grant sum is reserved sub-grantees or other 
direct-performers of lead-hazard identification and reduction work. 
Lead hazard identification and reduction includes, but is not 
necessarily limited to outreach, training, enrollment, lead paint 
inspection/risk assessments, interim controls, hazard abatement, 
clearance documentation, blood lead testing, and public education.

II. Administrative Costs: What They Are Not

    For the purposes of this HUD grant program for States and local 
governments to provide support for the evaluation and reduction of 
lead-hazards in low- and moderate-income, private target housing, 
the term ``administrative costs'' should not be confused with the 
terms ``general and administrative cost,'' ``indirect costs,'' 
``overhead,'' and ``burden rate.'' These are accounting terms 
usually represented by a government-accepted standard percentage 
rate. The percentage rate allocates a fair share of an 
organization's costs that cannot be attributed to a particular 
project or department (such as the chief executive's salary or the 
costs of the organization's headquarters building) to all projects 
and operating departments (such as the Fire Department, the Police 
Department, the Community Development Department, the Health 
Department or this program). Such allocated costs are added to those 
projects' or departments' direct costs to determine their total 
costs to the organization.

III. Administrative Costs: What They Are

    For the purposes of this HUD grant program, ``Administrative 
Costs'' are the grantee's allowable direct costs for the overall 
management of the grant program plus the allocable indirect costs. 
The allowable limit of such costs that can be reimbursed under this 
program is ten (10) percent of the total grant sum. Should the 
grantee's actual costs for overall management of the grant program 
exceed ten percent of the total grant sum, those excess costs shall 
be paid for by the grantee. However, excess costs paid for by the 
grantee may be shown as part of the requirement for cost-sharing 
funds to support the grant.

IV. Administrative Costs: Definition

A. General

    Administrative costs are the allowable, reasonable, and 
allocable direct and indirect costs related to the overall 
management of the HUD grant for lead-hazard reduction activities. 
Those costs shall be segregated in a separate cost center within the 
grantee's accounting system, and they are eligible costs for 
reimbursement as part of the grant, subject to the ten percent 
limit. Such administrative costs do not include any of the staff and 
overhead costs directly arising from specific sub-grantee program 
activities eligible under Section III of this NOFA because those 
costs are eligible for reimbursement under a separate cost center as 
a direct part of project activities.
    The grantee may elect to serve solely as a conduit to sub-
grantees, who will in turn perform the direct program activities 
eligible under Section III (C) (1) of this NOFA, or the grantee may 
elect to perform all or a part of the direct program activities in 
other parts of its own organization, which shall have their own 
segregated, cost centers for those direct program activities. In 
either case, not more than 10 percent of the total HUD grant sum may 
be devoted to administrative costs, and not less than 90% of the 
total grant sum shall be devoted to direct program activities. The 
grantee shall take care not to mix or attribute administrative costs 
to the direct project cost centers.

B. Specific

    Reasonable costs for the grantee's overall grant management, 
coordination, monitoring, and evaluation are eligible administrative 
costs. Subject to the ten percent limit, such costs include, but are 
not limited to, necessary expenditures for the following goods, 
activities and services:
    (1) Salaries, wages, and related costs of the grantee's staff, 
the staff of affiliated public agencies, or other staff engaged in 
grantee's overall grant management activities. In charging costs to 
this category the recipient may either include the entire salary, 
wages, and related costs allocable to the program for each person 
whose primary responsibilities (more than 65% of their time) with 
regard to the grant program involve direct overall grant management 
assignments, or the pro rata share of the salary, wages, and related 
costs of each person whose job includes any overall grant management 
assignments. The grantee may use only one of these two methods 
during this program. Overall grant management includes the following 
types of activities:
    (a) Preparing grantee program budgets and schedules, and 
amendments thereto;
    (b) Developing systems for the selection and award of funding to 
sub-grantees and other sub-recipients;
    (c) Developing suitable agreements for use with sub-grantees and 
other sub-recipients to carry out grant activities;
    (d) Developing systems for assuring compliance with program 
requirements;
    (e) Monitoring sub-grantee and sub-recipient activities for 
progress and compliance with program requirements;
    (f) Preparing presentations, reports, and other documents 
related to the program for submission to HUD;
    (g) Evaluating program results against stated objectives;
    (h) Providing local officials and citizens with information 
about the overall grant program; however, a more general education 
program, helping the public understand the nature of lead hazards, 
lead hazard reduction, blood-lead screening, and the health 
consequences of lead poisoning is a direct project support 
activity);
    (i) Coordinating the resolution of overall grant audit and 
monitoring findings; and
    (j) Managing or supervising persons whose responsibilities with 
regard to the program include such assignments as those described in 
paragraphs (a) through (i).
    (2) Travel costs incurred for official business in carrying out 
the overall grant management;
    (3) Administrative services performed under third party 
contracts or agreements, for services directly allocable to grant 
management such as: legal services, accounting services, and audit 
services;
    (4) Other costs for goods and services required for and directly 
related to the overall management of the grant program; and 
including such goods and services as telephone, postage, rental of 
equipment, renter's insurance for the program management space, 
utilities, office supplies, and rental and maintenance (but not 
purchase) of office space for the program.
    (5) The fair and allocable share of grantee's general costs that 
are not directly attributable

[[Page 21385]]

to specific projects or operating departments such as salaries, 
office expenses and other related costs for local officials (e.g., 
mayor and city council members, etc.), and expenses for a city's 
legal or accounting department which are not charged back to 
particular projects or other operating departments. If a grantee has 
an established burden rate, it should be used; if not, the grantee 
shall be assigned a negotiated provisional burden rate, subject to 
final audit.
BILLING CODE 4210-32-P

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21401]]



Funding Availability for the Lead Outreach Grant Program

Program Overview

    Purpose of the Program. The purpose of this lead outreach grant 
program is to:
    (A) Increase enrollment of low-income housing units for treatment 
via the HUD lead hazard control grant program or another lead hazard 
treatment program;
    (B) Develop and distribute outreach and educational materials in 
order to raise public awareness of childhood lead poisoning, its 
prevention and proper lead hazard identification and control methods 
among at-risk communities and at-risk populations of children and 
workers in the housing maintenance or rehabilitation fields; and
    (C) Encourage occupants to identify potential lead-based paint 
hazards and report them to property owners and managers, and public 
health and/or housing officials as appropriate.
    Available Funds. Approximately $2,200,000, including approximately 
$480,000 in FY 2003 funds, and approximately $1,720,000 in previous-
year recaptured funds.
    Eligible Applicants. States, Tribes and units of general local 
government are eligible. Partnerships are encouraged, although the 
application must be made by a single entity.
    Application Deadline. June 10, 2003.
    Match. None required

Additional Information

    If you are interested in applying for funding under this program, 
please carefully read the General Section of this SuperNOFA and the 
following additional information.

I. Application Due Date and Technical Assistance

    (A) Application Due Date. Completed applications (one original and 
four copies) must be submitted and received by HUD on or before 12 
midnight on June 10, 2003, at the address shown below.
    (B) Application Submission Procedures. HUD has implemented security 
procedures that impact application submission. Please review the 
requirements for mailing and receipt of applications in the General 
Section of this SuperNOFA to ensure that your application is timely 
filed. No hand deliveries will be accepted.
    (C) Application Submission. See the General Section of this Super 
Notice of Funding Availability (SuperNOFA) for specific procedures 
concerning the form of application submission and requirements for 
receipt (e.g., mailed applications, express mail or overnight 
delivery). Please note that the requirements for submission have been 
revised this year. Be advised that there is no Application Kit for this 
year's Lead Outreach Grant Program. This program NOFA clearly describes 
the requirements for completing a successful application and all forms 
and certifications needed to complete a successful application are 
included in the General Section and Lead Outreach Grant Program 
sections of this SuperNOFA.
    (D) Addresses. You, the applicant, must submit one original and 
four copies of your complete application to the Department of Housing 
and Urban Development, Office of Homes and Lead Hazard Control, ATTN: 
Lead Outreach Grant Program, 451 Seventh Street, SW., Room P3206, 
Washington, DC 20410 on or before the application due date.
    (E) For Further Information and Technical Assistance: You may 
contact Rachel M. Riley, Training Manager, Office of Healthy Homes and 
Lead Hazard Control, at the address above; telephone (202) 755-1785, 
extension 107 (this is not a toll-free number). If you are a hearing- 
or speech-impaired person, you may reach the above telephone numbers 
via TTY by calling the toll-free Federal Information Relay Service at 
1-800-877-8339.
    (F) Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
the preparation of the application. For more information about the date 
and time of the broadcast, you should consult the HUD Web site at 
http://www.hud.gov/.

II. Authority, Funding Amounts and Amount of Funds Allocated

    (A) Authority. The authority for this program is Section 1011(e)(8) 
& (g)(1) of the Residential Lead-Based Paint Hazard Reduction Act of 
1992 (Title X of the Housing and Community Development Act of 1992), 
and Division K of the Consolidated Appropriations Resolution of 2003, 
Pub. L. 108-7, signed February 20, 2003.
    (B) Funding Available and Eligibility. Approximately $2,200,000, 
including approximately $480,000 in Fiscal Year 2003 funds from the 
lead technical assistance set aside under the lead hazard reduction 
appropriation, and approximately $1,720,000 in previous-year recaptured 
funds, will be available for the Lead Outreach Program. Grants will be 
awarded on a competitive basis following evaluation of all proposals 
according to the Rating Factors described in Section V of this program 
section. Between five and 11 States, Tribes or units of general local 
government could receive grant awards ranging between approximately 
$200,000 and approximately $500,000. A minimum score of 75 is required 
for award consideration. The amounts included in this program are 
subject to change based on funds availability.

III. Eligible Applicants and Activities

(A) Background

    Lead toxicity in children has been well established, yet childhood 
lead poisoning is the primary childhood environmental health problem in 
the United States today. The February 2000, report of the President's 
Task Force on Environmental Health Risks and Safety Risks to Children, 
titled ``Eliminating Childhood Lead Poisoning: A Federal Strategy 
Targeting Lead Paint Hazards,'' sets forth what action needs to be 
taken to prevent such poisoning. In addition to eliminating lead 
hazards in housing occupied by low-income families with children, the 
Federal government's public education and outreach activities must 
measurably increase the public's awareness of lead hazards and how to 
address them.
    In keeping with the mandate of section 1011(g)(1) of Title X for 
HUD ``develop the capacity of eligible applicants * * * to carry out 
activities under'' lead hazard control grant programs, the Department 
has conducted outreach and public education initiatives through the 
Lead Hazard Control Grant program, the National Lead Information 
Center, and other education and outreach initiatives.
    Lead Hazard Control Grants are awarded competitively to eligible 
States, tribes, or units of local government to perform lead hazard 
reduction in low-income privately owned pre-1978 housing. Lead outreach 
activities contribute to building the capacity of jurisdictions to 
submit successful applications for lead hazard control grants, because 
they have the effect of inducing local businesses to enter into the 
lead hazard control field before jurisdictions apply for the grants 
and, thus, increase jurisdictions' ability to demonstrate their 
capacity to meet the grant's requirements. These inducements can be 
expressed by the market directly, and/or through the efforts of the 
jurisdictions.
    HUD's lead awareness supplement to the Current Population Survey 
has determined that only a fraction of citizens are well-educated about 
how lead-based paint hazards threaten young children and are more 
common in older housing. One consequence of this low level of awareness 
is that few housing

[[Page 21402]]

construction and maintenance business owners are aware of the extent of 
lead-based paint hazards. One result is that few areas have an adequate 
supply of businesses that work in the lead hazard control field, or an 
adequate supply of workers trained to perform interim controls or lead 
hazard abatement for more than their HUD-assisted pre-1978 housing, as 
required by the Lead Safe Housing Rule.
    Lead outreach activities have the effect of encouraging residents 
of older low-income housing to prompt their state, tribal or local 
governments to control lead-based paint hazards. In turn, these 
governments are induced to consider obtaining funding under the HUD 
Lead Hazard Control Grant Program, or perform lead hazard reduction in 
conjunction with other housing, health or environmental activities. In 
practice, this can be done only if housing owners and occupants are 
aware of and apply for enrollment in lead hazard treatment programs. 
Potential applicant agencies are, thereby, induced to promote lead 
hazard control activities locally, by working with private-sector 
stakeholders (e.g., grassroots organizations, including faith-based and 
community-based non-profit organizations, community colleges, etc.). As 
described above, HUD's outreach efforts contribute to the timely 
performance of successful lead hazard control work and associated 
capacity building.
    Outcomes of this outreach program include:
    (1) Identifying and maximizing opportunities to raise visibility of 
and publicize the lead issue among the general public, and invigorating 
the efforts in both the public and private sectors to take action to 
eradicate childhood lead poisoning, especially by increasing the number 
of low-income housing units that are enrolled in lead hazard treatment 
programs.
    (2) Increasing lead awareness in communities identified as being at 
greatest risk of lead poisoning (e.g., those with many low-income and 
minority families), with special interest in target audiences within 
those communities, such as parents, pregnant women, health care 
providers, multi-family and single family housing owners, corporations, 
educational institutions such as community colleges, schools, non-
profit organizations, and historic preservation, renovation, 
remodeling, weatherization and maintenance firms and personnel, major 
banks, lenders and insurance companies, housing inspectors, real estate 
professionals and appraisers, homebuyers and low-income minority 
families.
    (3) Increasing the base of support for this important outreach 
activity through the creation of partnerships between public and 
private entities, especially grassroots organizations, including faith-
based and community-based non-profit organizations and community 
colleges.
    (4) Implementing strategies to directly contact and speak to the 
general public, especially high-risk populations, or media strategies 
for using print, radio and/or television, as applicable, to increase 
public awareness of childhood lead poisoning and ways to prevent it.
    (5) Disseminating existing tools and, as needed, new tools to 
inform parents and caregivers about lead-related hazards and enabling 
them to take prompt corrective action, especially enrolling their 
housing in lead hazard treatment programs.

(B) Eligible Applicants

    (1) States, Tribes, and units of general local government are 
eligible. Partnerships are encouraged, although the application must be 
made by a single entity. Non-profit organizations, such as groups of 
parents of lead poisoned children, and grassroots organizations, 
including faith-based and community-based non-profit organizations, and 
colleges and universities, can be sub-grantees or sub-contractors.
    (2) As an applicant, you must meet all of the threshold 
requirements of the General Section of this SuperNOFA (Section V(B)) as 
well as any specific threshold requirements for applicants under the 
Lead Outreach Grant Program. Applications will not be rated or ranked 
if they do not meet the threshold requirements of the General Section 
of this SuperNOFA.
    (3) All awardees are expected to commence activity immediately upon 
completion of budget and work plan negotiations, and execution of the 
grant agreement.

(C) Eligible Activities

    Eligible activities to be funded under this program include, but 
are not limited to, developing and conducting education and outreach 
campaigns in high-risk communities to:

--Increase lead awareness.
--Encourage owners and low-income occupants to enroll their housing 
units in programs conducting lead hazard treatment activities.
--Encourage owners and low-income occupants to identify potential lead-
based paint hazards and report them to property owners and managers, 
and public health and/or housing officials as appropriate.

    HUD is interested in promoting approaches that are cost-effective 
and efficient and that result in the reduction of lead poisoning for 
the maximum number of children, and, in particular, low-income 
children. Section II of the General Section of this SuperNOFA presents 
HUD's FY 2003 Policy Priorities.
    Outreach can take various forms, depending on the intended 
audience(s). Activities may include publicizing and/or conducting 
events, developing and distributing publications in, for example, 
stores, schools, churches, community centers, or other neighborhood 
locations, making presentations, or forging partnerships to cost-
effectively disseminate information to populations identified as being 
at-risk. Regardless of the form of outreach you choose to implement, 
all eligible activities must identify at-risk populations (or areas), 
propose an outreach program to meet those populations' information 
needs, and evaluate the program's effectiveness.
    (1) Eligible activities may include:
    (a) Establishing partnerships with non-profit organizations and 
associations, such as grassroots organizations, including faith-based, 
parent, and community-based non-profit organizations, or corporations, 
retailers, construction organizations, and unions or for the purpose of 
coordinating or conducting joint activities;
    (b) Preparing publications, graphics, public service announcements, 
posters and entries for newspapers and magazines with local and/or 
regional distribution. These activities could include training local 
residents and businesses on identifying potential lead-based paint 
hazards, and lead-safe maintenance and renovation practices, etc.;
    (c) Making materials available in alternative formats for persons 
with disabilities (e.g., Braille, audio, large type), and in languages 
other than English that are common in the community, whenever possible. 
Applicants are encouraged to utilize minority media in an effort to 
achieve diversity in outreach and educational efforts. Applications 
that include development and distribution of media products in 
languages other than English must include a discussion of the 
applicant's (or subcontractor's) expertise in those languages and in 
meeting the informational needs of non-English-speaking, underserved 
populations.
    (d) Preparing quarterly progress reports and an overall final grant 
report,

[[Page 21403]]

detailing activities (e.g., the number of low-income housing units 
enrolled in lead hazard treatment programs as a result of activities 
performed under this grant, number and type of materials produced, 
activities conducted, evaluation of the various outreach and 
educational methods used, findings, and recommended future actions at 
the conclusion of grant activities).
    (2) Support Elements.
    (a) Your administrative costs. There is a 10 percent maximum for 
administrative costs. Specific information about administrative costs 
is included in Appendix D of this program section of this NOFA.
    (b) Program planning and management costs of sub-grantees and other 
sub-recipients.

(D) Ineligible Activities

    (1) Purchase of real property.
    (2) Purchase or lease of equipment having a per-unit cost in excess 
of $5,000, unless prior written approval is obtained from HUD.
    (3) Hazard abatement, hazard reduction, rehabilitation, remodeling, 
repair, or other construction work.

IV. Requirements and Procedures Applicable to the Lead Outreach Grant 
Program

    In addition to program requirements listed in the General Section 
of this SuperNOFA, you, the applicant, must comply with the following 
requirements:

(A) Budgeting

    (1) Matching Contribution. You are not required to provide a 
matching contribution in the Lead Outreach Program.
    (2) Administrative Costs. There is a 10 percent maximum for 
administrative costs. Additional information about allowable 
administrative costs is provided in Appendix D of this program section 
of this NOFA.
    (B) Period of Performance. The period of performance cannot exceed 
24 months from the date of the award, except that HUD reserves the 
right to approve no cost time extensions for a total period not to 
exceed 12 months.
    (C) Environmental Review. In accordance with 24 CFR 50.19(b)(2) and 
(b)(3) of the HUD regulations, activities assisted under this program 
are categorically excluded from the requirements of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321) and are not subject 
to environmental review under the related laws and authorities.
    (D) Certifications and Assurances. You must include the 
certifications and assurances listed in the General Section of this 
SuperNOFA with your application. A Certification of Consistency with 
the Consolidated Plan is not required for this program Section of this 
SuperNOFA.
    (E) Conducting Business in Accordance with HUD Core Values and 
Ethical Standards. If awarded assistance under the Lead Outreach NOFA, 
you will be required, prior to entering into a grant agreement with 
HUD, to submit a copy of your code of conduct and describe the methods 
you will use to ensure that all officers, employees, and agents of your 
organization are aware of your code of conduct. (See Section V(B)(3) of 
the General Section of this SuperNOFA for information about conducting 
business in accordance with HUD's core values and ethical standards.)
    (F) Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses. The Department of 
Housing and Urban Development (HUD) is committed to ensuring that small 
businesses, small disadvantaged businesses and women-owned businesses 
participate fully in HUD's direct contracting and in contracting 
opportunities generated by HUD grant funds. Too often, these businesses 
still experience difficulty accessing information and successfully 
bidding on Federal contracts. HUD Regulations at 24 CFR 85.36(e) 
require recipients of assistance (grantees and sub-grantees) to take 
all necessary affirmative steps in contracting for purchase of goods or 
services to assure that minority firms, women's business enterprises, 
and labor surplus area firms are used when possible. Affirmative steps 
shall include:
    (1) Placing qualified small and minority businesses and women's 
business enterprises on solicitation lists.
    (2) Assuring that small and minority business, and women's business 
enterprises are solicited whenever they are potential sources.
    (3) Dividing total requirements, when economically feasible, into 
smaller tasks or quantities to permit maximum participation by small 
and minority business, and women's business enterprises.
    (4) Establishing delivery schedules, where the requirement permits, 
which encourage participation by small and minority business, and 
women's business enterprises.
    (5) Using the services and assistance of the Small Business 
Administration, and the Minority Business Development Agency of the 
Department of Commerce.
    (G) Participation in HUD-Sponsored Program Evaluation. As a 
condition of the receipt of financial assistance under this NOFA, you 
will be required to cooperate with all HUD staff or contractors 
performing HUD-funded research and evaluation studies pertaining to the 
subject of the grant.
    (H) HUD Reform Act of 1989. See the General Section of this 
SuperNOFA for information regarding the applicability of the HUD Reform 
Act.

V. Application Selection Process

    (A) Rating and Ranking. Please see Section VI(B) of the General 
Section of this SuperNOFA. Only those applications that meet the 
threshold requirements will be rated and ranked. HUD intends to award 
the highest ranked applications receiving a minimum score of 75 within 
the limits of funding.
    (B) Factors for Award Used to Evaluate and Rate Applications. The 
factors for rating and ranking applicants, and maximum points for each 
factor, are stated below. The maximum number of points to be awarded is 
102, including the potential for two bonus points, as described in the 
General Section of this SuperNOFA.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points)

    This factor addresses your organizational capacity necessary to 
successfully implement your proposed activities in a timely manner. The 
rating of you or your staff includes any grassroots organizations, 
including faith-based and other community-based non-profit 
organizations, sub-contractors, consultants, sub-recipients, and 
members of consortia that are firmly committed to your project. For all 
of the descriptions of personnel and organizational qualifications and 
experience in this factor, more points will be given for more recent 
relevant experience of high quality with this kind of work, as 
documented below. Applicants who are funding or sub-contracting with 
grassroots organizations, including faith-based, and other community-
based non-profit organizations, in conducting their work programs 
should include the qualifications and experience of these organizations 
in responding to this rating factor. In rating this factor HUD will 
consider:
    (a) Your recent, relevant and successful demonstrated experience in 
undertaking eligible program activities. You must describe the 
knowledge and experience of the proposed overall project director and 
day-to-day project

[[Page 21404]]

manager in planning and managing large and complex interdisciplinary 
outreach programs, especially those involving housing, public health, 
or environmental programs. In your narrative response for this factor, 
you should include information on your project staff, their experience, 
percentage commitment to the project, and position titles. You must 
provide resumes (or position descriptions and copies of job 
announcements including salary range, for vacant positions) of up to 
three pages each for the project director, project manager, and up to 
three key personnel, and a clearly delineated organizational chart for 
the Lead Outreach project in Appendix 1 of your application. Indicate 
the name of the position of key personnel, the percentage of time that 
proposed staff will devote to your project and any salary costs to be 
paid by funds from this program. Include descriptions of the experience 
and qualifications of subcontractors and consultants. You may find it 
useful to include a table indicating the name, position and percentage 
contribution of staff members, specifying organizational affiliation. 
HUD reserves the right to terminate grant awards made to applicants 
that fail to timely hire (within 90 days of award) staff to fill key 
positions identified in the applicant's proposal as vacant.
    (b) Your qualifications to carry out the proposed activities as 
evidenced by experience, training, and/or relevant publications of 
project staff, and whether you have sufficient personnel, or will be 
able to quickly retain qualified experts or professionals to begin your 
proposed project immediately, and to perform your proposed activities 
in a timely and effective fashion. Describe how principal components of 
your organization will participate in, or support, your project. You 
should thoroughly describe capacity, as demonstrated by experience in 
initiating and implementing and evaluating related health education, 
outreach and recruitment projects.
    (c) Your past performance in previous projects with an emphasis on 
health education, outreach and recruitment. Provide details about the 
nature of the project, the funding agency, and your performance, 
relative to performance measures or the achievement of desired health 
outcomes. If a subgrantee or subcontractor is an existing lead outreach 
grantee, provide a description of the progress and outcomes achieved in 
that grant.
    HUD's evaluation process will consider an applicant's past 
performance in effectively organizing and managing their grant 
operations, in meeting performance and work plan benchmarks and goals, 
and in managing funds, including their ability to account for funds 
appropriately, timely use of funds received either from HUD or other 
Federal, State, Tribal or local programs, and meeting performance 
milestones. HUD may use other information relating to these items from 
sources at hand, public sources such as newspapers, Inspector General 
or Government Accounting Office Reports or Findings, hotline 
complaints, or other sources of information that have been proven to 
have merit.

Rating Factor 2: Need/Extent of the Problem (15 Points)

    This factor addresses the extent to which there is a need for your 
proposed project activities to address documented problems, target 
area(s) and target populations. Applications that demonstrate a greater 
need for lead outreach beyond existing levels as a mechanism for 
increasing enrollment in lead hazard treatment programs, or more 
thoroughly document this need will earn higher numbers of points.
    (a) Your application should document a critical level of need for 
your proposed outreach activities in the area(s) where activities will 
be carried out. You should pay specific attention to documenting the 
need for outreach to increase enrollment of low-income housing units in 
lead hazard treatment programs as it applies to your target area(s) and 
target populations, rather than a larger geographic area or general 
population. Examples of information that might be used to demonstrate 
need, include:
    (1) Economic or sociological information relevant to your target 
area(s). If this information is applied locally, the neighborhoods or 
type of neighborhoods to be targeted should be characterized with 
regard to age of housing and populations that the outreach activities 
are attempting to reach.
    (2) Data documenting targeted populations that are traditionally 
underserved or have special needs. For a maximum score in this Rating 
Factor, data provided should specifically represent the target area. If 
the data presented in your response does not specifically represent 
your target area, you should discuss why the target areas are being 
proposed. If your application addresses needs that are in the 
Consolidated Plan or Analysis of Impediments (AI) to Fair Housing 
Choice (see paragraph V.C of the General Section of this SuperNOFA), 
court orders or consent decrees, settlements, conciliation agreements, 
or voluntary compliance agreements, you will receive more points than 
applicants that do not relate their project to an identified need.
    (3) Information from the local (or State or Tribe, if applicable) 
health department, if available, on rates of elevated blood lead levels 
among children residing in your target area(s).
    (4) Readily available information on the presence of existing 
outreach and educational resources in your target area(s).

Rating Factor 3: Soundness of Approach (40 Points)

    This factor addresses the quality and cost-effectiveness of your 
proposed work plan. You should present information on your proposed 
approach for increasing the public's awareness and knowledge about lead 
poisoning and lead-based paint hazards, and for encouraging owners and 
low-income family occupants to identify potential lead-based paint 
hazards and enroll their housing units in lead hazard treatment 
programs Applications containing approaches with clear activities and 
sub-activities that will result in increasing the enrollment in lead 
hazard treatment programs; that include a range of approaches that 
address the needs of populations with limited English proficiency, 
persons with disabilities, persons with low literacy, etc.; that 
demonstrate a logical progression of implementation steps; that include 
more appropriate mechanisms for reaching audiences, and that provide 
better documentation of the methodology of the proposed approach, will 
receive higher numbers of points. Applicants will receive higher rating 
points for approaches that include higher percentages of funding or 
sub-contracting for substantive work by grassroots organizations, 
including faith-based, and other community-based non-profit 
organizations.
    You should describe how proposed activities would help HUD achieve 
its goals for this program area. You should demonstrate your knowledge 
of the outreach methodology relevant to your approach. You should 
develop a work plan that includes specific, measurable and time-phased 
objectives for each major program activity, accompanied by a 
complementary schedule indicating proposed date(s) of completion.
    There must be a direct relationship between the proposed 
activities, community needs, the purpose of the project, and the number 
of low-income housing units enrolled in lead hazard treatment programs. 
Your response to

[[Page 21405]]

this factor should include the following elements:
    (a) Approach for Developing the Project. (30 points) Describe your 
overall approach for your proposed project. The description must 
include a discussion of specific planned project activities:
    (1) Provide the estimated total number of low-income housing units 
that you expect to be enrolled in lead hazard treatment programs. 
Describe in detail how you will identify and track participants 
receiving outreach under your project, especially participants in high-
risk groups and communities, vulnerable populations and persons 
traditionally underserved. (6 points)
    (2) Describe your process for developing outreach materials, or 
using existing materials. (3 points)
    (3) Describe your management processes to be used to ensure the 
cost-effectiveness of expenditures of funds. (2 points)
    (4) Describe any measurement tools you would employ to evaluate the 
effectiveness of your outreach and educational activities for occupants 
of housing units enrolled in lead hazard treatment programs before and 
after treatment. (3 points)
    (5) Describe the methods of community education you would use 
including community awareness, education, training, and outreach 
programs in support of your work plan and objectives that are 
culturally sensitive, targeted, and linguistically appropriate. (3 
points)
    (6) Proposed involvement of grassroots organizations, including 
faith-based and other community-based non-profit organizations in the 
proposed activities. HUD strongly encourages you to substantively use 
grassroots organizations, including faith-based, and other community-
based non-profit organizations. (10 points)
    (7) Indicate if, and describe how, you will address any of HUD's 
Departmental policy priorities. (See Section II of the General Section 
of this NOFA for a fuller explanation of HUD's policy priorities.) 
Policy priorities that are potentially applicable to this NOFA include: 
(1) Improving the Quality of Public and Assisted Housing and Providing 
More Choices for its Residents; (2) Increasing the Participation of 
Faith-based and other Community-based Organizations in HUD Program 
Implementation; and (3) Colonias. You will receive one point for each 
of the applicable policy priorities that are adequately addressed in 
your application, up to a maximum of three points. If your application 
addresses all three policy priorities, you would get at least three 
points. (3 points)
    (b) Approach for Implementing the Project. (10 points) Describe 
your project goals and objectives and the strategy you will use in 
executing the project. You should provide information on the general 
approach and overall plan employed.
    (1) Baseline Plan for Project Management. (5 points) Include a 
management plan that:
    (i) Lists the outreach project objectives, major tasks and 
activities. All specific activities necessary to complete the proposed 
project must be included in the task listing.
    (ii) Incorporates appropriate performance goals with projected 
outputs and outcomes of the outreach program's activities.
    (iii) Identifies major milestones and provides a schedule for the 
assignment, tracking and completion of major tasks and activities, and 
a timeframe for delivery, including reports and other proposed 
deliverables of the outreach activity.
    (iv) Designates resources and identifies responsible entities for 
performing work.
    (2) Budget Justification. (5 points) Your proposed budget will be 
evaluated for the extent to which it is reasonable, clearly justified, 
and consistent with the outreach project management plan and intended 
use of program funds. HUD is not required to approve or fund all 
proposed activities. Your budget should be submitted in the format 
recommended in Appendix B of the General Section of this NOFA. An 
electronic spreadsheet and other budgetary forms are available on HUD's 
website at www.hud.gov. You must thoroughly document and justify all 
budget categories and costs (HUD Form 424-C) and all major tasks, for 
yourself, sub-recipients (especially grassroots organizations, 
including faith-based, and other community-based non-profit 
organizations), partners, major subcontractors, joint venture 
participants, or others contributing resources to the project, 
especially those proposed to receive greater than 10 percent of the 
Federal budget request. Describe clearly and in detail your budgeted 
costs for each required program element (major task) included in your 
overall plan.

Rating Factor 4: Leveraging Resources (10 Points)

    This factor addresses your ability to secure other community and/or 
private-sector resources (such as financing, supplies or services) that 
can be combined with HUD's resources to achieve project purposes. These 
community resources may be contributions from organizations such as the 
applicant, subrecipients, partners, or other organizations not directly 
involved in the project.
    (a) In evaluating this factor, HUD will consider the extent to 
which you have developed partnerships to secure additional resources to 
increase the effectiveness of your proposed project. Describe how other 
organizations will participate in or support your project. Resources 
may include funding or in-kind contributions (such as labor, fringe 
benefits, services, supplies, or equipment) budgeted for your proposed 
project. Resources may be provided by State, Tribal and local 
governmental entities, public or private organizations, or other 
partners.
    (b) Each source of contributions (financial or in-kind) must be 
supported by a letter of commitment from the contributing entity, 
whether the applicant, a partner organization, or a public or private 
source. The letter must describe the contributed resources that will be 
used in your project and the dollar value of that contribution. Staff 
in-kind contributions should be given a market-based monetary value. If 
you fail to provide letters of commitment with specific details 
including the amount of the actual contributions, you will not get 
points for this factor. Each letter of commitment, memorandum of 
understanding, or agreement to participate shall include the 
organization's name and the proposed level of commitment and 
responsibilities as they relate to the proposed project. The commitment 
must be signed by an official legally able to make commitments on 
behalf of the organization. Letters of support (letters that indicate 
support but do not specify a monetary commitment to the project) will 
not be considered in the scoring of this Rating Factor. Include 
information to address the following elements:
    (1) The extent to which you have coordinated your activities with 
other known organizations that are not directly participating in your 
proposed work activities, but with which you share common goals and 
objectives.
    (2) The extent to which your project exhibits the potential to be 
financially self-sustaining by decreasing dependence on Federal funding 
and relying more on State, Tribal, local and private funding to 
continue educational and outreach activities after the grant period is 
completed.

[[Page 21406]]

Rating Factor 5: Achieving Results and Program Evaluation (15 points)

    This factor emphasizes HUD's commitment to ensuring that applicants 
keep promises made in their application and assessing their performance 
to ensure performance goals are met. Achieving results means you, the 
applicant, have clearly identified the benefits, or outcomes of your 
program. Outcomes are ultimate goals; for this lead outreach grant 
program, the major outcome is increasing the number of low-income 
housing units enrolled in lead hazard treatment programs as a result of 
the grant activity. Benchmarks or outputs are interim activities or 
products that lead to the ultimate achievement of your goals.
    Program evaluation requires that you, the applicant, identify 
program outcomes, interim products or benchmarks, and performance 
indicators that will allow you to measure your performance. Performance 
indicators should be objectively quantifiable and measure actual 
achievements against anticipated achievements. Your Evaluation Plan 
should identify what you are going to measure, how you are going to 
measure it, and the steps you have in place to make adjustments to your 
work plan if performance targets are not met within established 
timeframes.
    This new rating factor reflects HUD's goal to embrace high 
standards of ethics, management and accountability. In evaluating this 
factor, HUD will consider how you have described outcome measures and 
benefits of your program.
    In your response to this Rating Factor you are to discuss the 
performance goals for your project and identify specific outcome 
measures. You are also to describe how the outcome information will be 
obtained, documented, and reported. You must complete and return the 
Logic Model Form included in Appendix A of the General Section of this 
NOFA showing your proposed project long-term, mid-term, short-term and 
final results, and how they support HUD's departmental goals and 
objectives. Information about developing a Logic Model is available at 
www.hud.gov.
    In evaluating this factor, HUD will consider how you have:
    (1) Described the degree to which you have identified and 
characterized the information needs of your intended audience or 
targeted populations.
    (2) Refined your outreach message.
    (3) Specified how you will deliver your message to the audience.
    (4) Described anticipated results of specific plans and objectives 
and listed projected products or outputs. Outputs are actions, 
attendance numbers, materials, publications, inquiries or other 
products of the process.
    (5) Demonstrated ability to measure outcomes. The major outcome is 
the increasing the number of low-income housing units enrolled in lead 
hazard treatment programs that result from the grant activity.
    (6) Developed a proposed organization with the capacity to begin 
work immediately and incorporating adequate management planning and 
financial controls.
    (7) Demonstrated how you have identified potential obstacles in 
meeting your objectives, and how you will respond to these obstacles.
    (8) Described efforts to coordinate and cooperate with other 
organizations that will result in a reduction in lead risks to 
community residents.
    (9) Described how your program will be held accountable for meeting 
program goals, objectives, and the actions undertaken in implementing 
the grant program. You should provide a description of the mechanism to 
assess progress and track performance in meeting the goals and 
objectives outlined in the work plan.

Bonus Points for Federally Designated Zones and Communities. (2 points)

    This Section of the NOFA provides for the award of two bonus points 
for eligible activities/projects that the applicant proposes to be 
located in federally designated Empowerment Zones (EZs), Enterprise 
Communities (ECs), Urban Enhanced Enterprise Communities (EECs), 
Strategic Planning Communities, or Renewal Communities (RCs), serve the 
residents of these areas, and are certified to be consistent with the 
area's strategic plan. For ease of reference in this NOFA, all these 
federally designated areas are collectively referred to as ``RC/EZ/
ECs'' and residents of any of these federally designated areas as ``RC/
EZ/EC residents.'' This NOFA contains a certification that must be 
completed for the applicant to be considered for RC/EZ/EC bonus points. 
A list of RCs, EZs, ECs, EECs, and Strategic Planning Communities is 
available from HUD's Web site at http://www.hud.gov. See also Section 
VI(C) of the General Section of this SuperNOFA.
    (C) Applicant Debriefing. See Section XI(A)(4) of the General 
Section of this SuperNOFA for information about applicant debriefing, 
and Section I(I) of this Section for contact information.

VI. Application Submission Requirements

(A) Applicant Information

    (1) Application Format. The application narrative response is 
limited to a maximum of 25 pages (excluding appendices and worksheets). 
Your response must be typewritten on one side only on 8\1/2\'' x 11'' 
paper using a 12-point (minimum) font with not less than \3/4\'' 
margins on all sides. Appendices should be referenced and discussed in 
the narrative response. Materials provided in the appendices should 
directly apply to the rating factor narrative.
    (2) Application Checklist. Your application must contain all of the 
required information as noted in this Section of this NOFA and the 
General Section of this SuperNOFA. These items include the standard 
forms, certifications, and assurances listed in the General Section of 
this SuperNOFA that are applicable to this funding (collectively, 
referred to as the ``standard forms''). The standard forms can be found 
in Appendix B of the General Section of this SuperNOFA. The application 
items are as follows:
    (a) Transmittal letter (one-page only) that summarizes your 
proposed project, provides the dollar amount requested, and identifies 
you and your partners in the application. Provide the name, mailing 
address, and telephone number of the principal contact person. If you 
are a consortium of associates, sub-recipients, partners, major 
subcontractors, joint venture participants, or others contributing 
resources to the project, similar information shall also be provided 
for each of these entities and you must specify the primary entity.
    (b) Application Abstract Summary. An abstract describing the goals 
and objectives of your proposed program (two-page maximum) must be 
included in the proposal.
    (c) Checklist and Submission Table of Contents.
    (d) All application forms found in the General Section of this 
SuperNOFA.
    (e) A narrative statement addressing the rating factors for award. 
The narrative statement must be numbered in accordance with each factor 
for award (Rating Factors 1 through 5). The response to the rating 
factors must not exceed a total of 25 pages. Any pages in excess of 
this limit will not be read. (The 25-page limit does not apply to the 
two-page abstract.) Key points to consider in preparing your 
application are provided in the General Section of this NOFA.

[[Page 21407]]

    (f) Any attachments, appendices, references, or other relevant 
information that directly support the narrative may accompany it, but 
must not exceed 20 pages for your entire application. Any pages in 
excess of this limit will not be read. Specific criteria for the 
content of the appendices for the Lead Outreach Grant Program 
application are listed in the Checklist and Submission Table of 
Contents.
    (g) Within Appendix 1, the resumes and position descriptions of 
your project director, project manager and up to three additional key 
personnel (in accordance with Rating Factor 1). These should not exceed 
three pages each. This information will not be counted towards the page 
limit.
    (h) Within Appendix 3, a detailed budget with supporting cost 
justification for all budget categories of your funding request, in 
accordance with Rating Factor 3. This information will not be counted 
towards the page limits. A detailed budget must also be provided for 
any subcontractors, subgrantees, or subrecipients receiving greater 
than 10 percent of the Federal budget request.
    (i) Any information or materials that are not listed above will not 
be reviewed.

VII. Corrections to Deficient Applications

    See Section VIII of the General Section of this SuperNOFA for 
information about corrections to deficient applications.

Appendix A

    Lead: Exposure to lead, especially from deteriorating lead-based 
paint, remains one of the most important and best studied of the 
household environmental hazards to children. Although blood lead levels 
have fallen nationally, a large reservoir of lead remains in housing. 
The national survey published by the Centers for Disease Control and 
Prevention, conducted from 1991-94, showed that nearly one million U.S. 
preschoolers still have elevated blood lead levels. Overall, the 
prevalence rate among all children under six years of age was 4.4 
percent. Among low-income children living in older housing where lead-
based paint is most prevalent, the rate climbed to 16 percent; and for 
African-American children living in such housing, it reached 21 
percent.
    HUD estimates that 38 million dwellings have some lead-based paint, 
and that 26 million have significant lead-based paint hazards. Of 
those, about 5.7 million have young children and of those, about 1.6 
million have household incomes under $30,000 per year. Costs for lead 
hazard control can range anywhere from $500 to $15,000 per unit, 
depending on the extent of the hazard and the type of hazard control 
measures. Corrective measures include paint stabilization, enclosure 
and removal of certain building components coated with lead paint, and 
cleanup and clearance testing, which ensures the unit is safe for young 
children.
    Educating the public and individuals living in ``at-risk 
communities'' about lead poisoning, symptoms, treatment and lead hazard 
prevention and control, and encouraging occupants to identify potential 
lead-based paint hazards, report them to property owners and managers, 
and public health and/or housing officials as appropriate, and enroll 
their housing units in lead hazard treatment programs, are key 
components in an overall plan to reduce the prevalence rate of lead 
poisoned children.

Appendix B

References

    To secure any of the documents listed below, call the telephone 
number provided. Several of these references are provided on HUD's 
CD, ``Residential Lead Desktop Reference, 3rd Edition.'' This CD can 
be obtained at no charge by calling the National Lead Information 
Clearinghouse's toll-free number, 1-800-424-LEAD. If you are a 
hearing- or speech-impaired person, you may reach the telephone 
numbers via TTY by calling the toll-free Federal Information Relay 
Service at 1-800-877-8339. Several of these references can be 
downloaded from the Internet without charge from the HUD Office of 
Healthy Homes and Lead Hazard Control's Internet site, http://
www.hud.gov/offices/lead.

Regulations

    1. Requirements for Notification, Evaluation and Reduction of 
Lead-Based Paint Hazards in Federally Owned Residential Property and 
Housing Receiving Federal Assistance, 24 CFR Part 35 (HUD, Lead Safe 
Housing Rule). A free copy of this rule and guidance can be obtained 
by calling 1-800-424-LEAD (this is a toll-free number). If you are a 
hearing- or speech-impaired person, you may reach this telephone 
number via TTY by calling the toll-free Federal Information Relay 
Service at 1-800-877-8339.) or through the HUD Web site at http://
www.hud.gov/offices/lead.
    2. Lead; Requirements for Disclosure of Information Concerning 
Lead-Based Paint in Housing, 24 CFR Part 35, Subpart A (HUD, Lead-
Based Paint Disclosure Rule). A free copy of the rule, guidance, 
pamphlet and disclosure formats can be obtained by calling 1-800-
424-LEAD (this is a toll-free number) or through the HUD Web site at 
http://www.hud.gov/offices/lead.
    3. Lead; Requirements for Lead-Based Paint Activities in Target 
Housing and Child-Occupied Facilities; Final Rule: 40 CFR Part 745, 
(EPA Lead Hazard Standards, Work Practice Standards, EPA and State 
Certification and Accreditation programs for those engaged in lead-
based paint activities). A free copy of the rule and guidance can be 
obtained by calling the Toxic Substances Control Act Hotline at 1-
202-554-1404 (this is not a toll-free number) or through the EPA Web 
site at http://www.epa.gov/lead. If you are a hearing- or speech-
impaired person, you may reach this telephone number via TTY by 
calling the toll-free Federal Information Relay Service at 1-800-
877-8339.
    4. Lead; Requirements for Hazard Education Before Renovation of 
Target Housing, 40 CFR Part 745 (EPA, Pre-Renovation Education 
Rule). A free copy of the rule, guidance and pamphlet can be 
obtained by calling 1-800-424-LEAD (this is a toll-free number) or 
through the EPA Web site at http://www.epa.gov/lead.

Guidelines

    1. Guidelines for the Evaluation and Control of Lead-Based Paint 
Hazards in Housing; HUD, June 1995, and amended September, 1997. A 
copy of the guidelines can be purchased by calling 1-800-245-2691 
(this is a toll-free number) or downloaded without charge from the 
HUD Web site at http://www.hud.gov/offices/lead. If you are a 
hearing- or speech-impaired person, you may reach this telephone 
number via TTY by calling the toll-free Federal Information Relay 
Service at 1-800-877-8339.
    2. Preventing Lead Poisoning in Young Children; Centers for 
Disease Control, October 1991. A free copy of this document can be 
obtained by calling 1-888-232-6789 (this is a toll-free number) or 
through the HUD Web site at http://www.hud.gov/offices/lead. If you 
are a hearing- or speech-impaired person, you may reach this 
telephone number via TTY by calling the toll-free Federal 
Information Relay Service at 1-800-877-8339.
    3. Screening Young Children for Lead Poisoning: Guidance for 
State and Local Public Health Officials, November 1997. Centers for 
Disease Control and Prevention (CDC). A free copy of this document 
can be obtained by calling 1-888-232-6789 (this is a toll-free 
number) or through the HUD Web site at http://www.hud.gov/offices/
lead.

Reports

    1. Putting the Pieces Together: Controlling Lead Hazards in the 
Nation's Housing, (Summary and Full Report); HUD, July 1995. A copy 
of this summary and report can be purchased by calling 1-800-245-
2691 (this is a toll-free number) or downloaded without charge from 
the HUD Web site at http://www.hud.gov/offices/lead.
    2. President's Task Force on Environmental Health Risks and 
Safety Risks to Children. Eliminating Childhood Lead Poisoning: A 
Federal Strategy Targeting Lead Paint Hazards. Washington, DC, 2000. 
These documents can be downloaded without charge from the HUD Web 
site at http://www.hud.gov/offices/lead.

Appendix C

Existing Outreach Materials

    To secure any of the documents listed below, call the telephone 
number provided.

[[Page 21408]]

All of these documents are provided on HUD's Web site and the CD, 
``Residential Lead Desktop Reference, 3rd Edition.'' This CD can be 
obtained by calling the National Lead Information Clearinghouse's 
toll-free number, 1-800-424-LEAD.
    1. HUD/EPA Informational Pamphlet: ``Protect Your Family from 
Lead in Your Home'' (available in English and Spanish versions). A 
free copy of this document can be obtained by calling 1-800-424-LEAD 
(this is a toll-free number) or through the HUD Web site at http://
www.hud.gov/offices/lead/outreach/communityoutreach.cfm.
    2. ``Reducing Lead Hazards When Remodeling Your Home'' 
(available in English and Spanish versions). A free copy of this 
document can be obtained by calling 1-800-424-LEAD (this is a toll-
free number) or through the HUD Web site at http://www.hud.gov/
offices/lead/outreach/communityoutreach.cfm.
    3. ``Lead Paint Safety Field Guide'' (available in English and 
Spanish versions). A free copy of this guide can be obtained by 
calling 1-800-424-LEAD (this is a toll-free number) or through the 
HUD Web site at http://www.hud.gov/offices/lead/outreach/
communityoutreach.cfm.
    4. ``A Parent's Reference Guide'' EPA Document Number 747-B-98-
002. A free copy of this guide can be obtained by calling 1-800-424-
LEAD (this is a toll-free number) or through the HUD Web site at 
http://www.hud.gov/offices/lead/outreach/communityoutreach.cfm.

Appendix D

    This appendix to this NOFA contains lists the standard forms, 
certifications and assurances used by the programs that are part of 
this NOFA. Listed forms are located in Appendix B of the General 
Section of the SuperNOFA.
    The following forms are to be used for the Programs listed in 
this NOFA

Form HUD-424
Form HUD-424 B
Form HUD-424 C
Form HUD-424 CBW
Form HUD Logic Model Form
Application Checklist and Submission Table of Contents
Ethnicity and Race Data
Form SF-LLL (Disclosure of Lobbying Activities)

    HUD has consolidated many of its application forms into a single 
HUD-424 form. The new HUD-424 consolidates budget-reporting forms 
for both construction and non-construction projects into a single 
form and eliminates having to have the following separate 
certifications: Certification for a Drug-Free Workplace (HUD-50070), 
the Certification of Payments to Influence Federal Transactions 
(HUD-50071), and the Certification Regarding Debarment and 
Suspension (HUD-2992).

New form HUD-424 replaces SF-424 and HUD-424 M
HUD-424 B replaces SF-424 B and D and HUD-50070, 50071 and 2992.
HUD-424 C and CB replaces SF-424 A and C

    The HUD-424 CBW is added as a common detailed Budget Worksheet 
and replaces various budget worksheets used throughout the 
Department.
    Administrative costs that may be applicable to the programs 
included in this NOFA are discussed below:

Administrative Costs

I. Purpose

    The intent of this HUD grant program is to allow the Grantee to 
be reimbursed for the reasonable direct and indirect costs, subject 
to a top limit, for overall management of the grant. In most 
instances the grantee, whether a State, Tribal or a local 
government, principally serves as a conduit to pass funding to sub-
grantees, which are to be responsible for the conducting lead-hazard 
reduction work. Congress set a top limit of ten percent of the total 
grant sum for the grantee to perform the function of overall 
management of the grant program, including passing on funding to 
sub-grantees. The cost of that function, for the purpose of this 
grant, is defined as the ``administrative cost'' of the grant, and 
is limited to ten percent of the total grant amount. The balance of 
ninety percent or more of the total grant sum is reserved sub-
grantees or other direct-performers of lead-hazard identification 
and reduction work. Lead hazard identification and reduction 
includes, but is not necessarily limited to outreach, training, 
enrollment, lead paint inspection/risk assessments, interim 
controls, hazard abatement, clearance documentation, blood lead 
testing, and public education.

II. Administrative Costs: What They Are Not

    For the purposes of this HUD grant program for States, Tribes 
and local governments to provide support for outreach to increase 
the enrollment of low-income, private target housing in lead hazard 
treatment programs, the term ``administrative costs'' should not be 
confused with the terms ``general and administrative cost,'' 
``indirect costs,'' ``overhead,'' and ``burden rate.'' These are 
accounting terms usually represented by a government-accepted 
standard percentage rate. The percentage rate allocates a fair share 
of an organization's costs that cannot be attributed to a particular 
project or department (such as the chief executive's salary or the 
costs of the organization's headquarters building) to all projects 
and operating departments (such as the Fire Department, the Police 
Department, the Community Development Department, the Health 
Department or this program). Such allocated costs are added to those 
projects' or departments' direct costs to determine their total 
costs to the organization.

III. Administrative Costs: What They Are

    For the purposes of this HUD grant program, ``Administrative 
Costs'' are the grantee's allowable direct costs for the overall 
management of the grant program plus the allocable indirect costs. 
The allowable limit of such costs that can be reimbursed under this 
program is ten (10) percent of the total grant sum. Should the 
grantee's actual costs for overall management of the grant program 
exceed ten percent of the total grant sum, those excess costs shall 
be paid for by the grantee. However, excess costs paid for by the 
grantee may be shown as part of the requirement for cost-sharing 
funds to support the grant.

IV. Administrative Costs: Definition

A. General

    Administrative costs are the allowable, reasonable, and 
allocable direct and indirect costs related to the overall 
management of the HUD grant for lead outreach activities. Those 
costs shall be segregated in a separate cost center within the 
grantee's accounting system, and they are eligible costs for 
reimbursement as part of the grant, subject to the ten percent 
limit. Such administrative costs do not include any of the staff and 
overhead costs directly arising from specific sub-grantee program 
activities eligible under Section III (C) of this NOFA, because 
those costs are eligible for reimbursement under a separate cost 
center as a direct part of project activities.
    The grantee may elect to serve solely as a conduit to sub-
grantees, who will in turn perform the direct program activities 
eligible under Section III (C) of this NOFA, or the grantee may 
elect to perform all or a part of the direct program activities in 
other parts of its own organization, which shall have their own 
segregated, cost centers for those direct program activities. In 
either case, not more than 10 percent of the total HUD grant sum may 
be devoted to administrative costs, and not less than 90% of the 
total grant sum shall be devoted to direct program activities. The 
grantee shall take care not to mix or attribute administrative costs 
to the direct project cost centers.

B. Specific

    Reasonable costs for the grantee's overall grant management, 
coordination, monitoring, and evaluation are eligible administrative 
costs. Subject to the ten percent limit, such costs include, but are 
not limited to, necessary expenditures for the following goods, 
activities and services:
    (1) Salaries, wages, and related costs of the grantee's staff, 
the staff of affiliated public agencies, or other staff engaged in 
grantee's overall grant management activities. In charging costs to 
this category the recipient may either include the entire salary, 
wages, and related costs allocable to the program for each person 
whose primary responsibilities (more than 65% of their time) with 
regard to the grant program involve direct overall grant management 
assignments, or the pro rata share of the salary, wages, and related 
costs of each person whose job includes any overall grant management 
assignments. The grantee may use only one of these two methods 
during this program. Overall grant management includes the following 
types of activities:
    (a) Preparing grantee program budgets and schedules, and 
amendments thereto;
    (b) Developing systems for the selection and award of funding to 
sub-grantees and other sub-recipients;
    (c) Developing suitable agreements for use with sub-grantees and 
other sub-recipients to carry out grant activities;
    (d) Developing systems for assuring compliance with program 
requirements;

[[Page 21409]]

    (e) Monitoring sub-grantee and sub-recipient activities for 
progress and compliance with program requirements;
    (f) Preparing presentations, reports, and other documents 
related to the program for submission to HUD;
    (g) Evaluating program results against stated objectives;
    (h) Providing local officials and citizens with information 
about the overall grant program; however, a more general education 
program, helping the public understand the nature of lead hazards, 
lead hazard reduction, blood-lead screening, and the health 
consequences of lead poisoning is a direct project support 
activity);
    (i) Coordinating the resolution of overall grant audit and 
monitoring findings; and
    (j) Managing or supervising persons whose responsibilities with 
regard to the program include such assignments as those described in 
paragraphs (a) through (i).
    (2) Travel costs incurred for official business in carrying out 
the overall grant management;
    (3) Administrative services performed under third-party 
contracts or agreements, for services directly allocable to grant 
management such as: legal services, accounting services, and audit 
services;
    (4) Other costs for goods and services required for and directly 
related to the overall management of the grant program; and 
including such goods and services as telephone, postage, rental of 
equipment, renter's insurance for the program management space, 
utilities, office supplies, and rental and maintenance (but not 
purchase) of office space for the program.
    (5) The fair and allocable share of grantee's general costs that 
are not directly attributable to specific projects or operating 
departments such as salaries, office expenses and other related 
costs for local officials (e.g., mayor and city council members, 
etc.), and expenses for a city's legal or accounting department 
which are not charged back to particular projects or other operating 
departments. If a grantee has an established burden rate, it should 
be used; if not, the grantee shall be assigned a negotiated 
provisional burden rate, subject to final audit.


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Funding Availability for the Operation Lead Elimination Action Program

Program Overview

    Purpose of the Program. The purpose of the Operation Lead 
Elimination Action Program (LEAP) is to leverage private sector 
resources to eliminate lead poisoning as a major public health threat 
to young children.
    Available Funds. Approximately $9.935 million in Fiscal Year (FY) 
2003 funds.
    Eligible Applicants. To be eligible to apply for funding under this 
program, the applicant must be a tax-exempt non-profit or for-profit 
entity or firm. States and units of general local government and their 
departments are not eligible. Colleges and universities are eligible as 
a non-profit entity.
    Application Due Date. You, the applicant, must submit a completed 
application to HUD on or before the respective program's application 
due date. The application deadline is June 10, 2003.

Additional Information

I. Application and Application Submission Procedures.

    Match. None required.
    (1) Application Submission. See the General Section of this 
SuperNOFA for specific procedures concerning the form of application 
submission (e.g., mailed applications, express mail or overnight 
delivery). Be advised that there is no Application Kit for this year's 
Operation Lead Elimination Action Program (LEAP). All the information 
required to submit an application is contained in this NOFA.
    (2) Addresses. You, the applicant, must submit a completed 
application to: Robert C. Weaver HUD Headquarters Building, Office of 
Healthy Homes and Lead Hazard Control, ATTN: Operation Lead Elimination 
Action Program, 451 Seventh Street, SW., Room P3206, Washington, DC 
20410.
    For Further Information and Technical Assistance. You may contact 
John Baker, Lead Hazard Control Grants Division, Office of Healthy 
Homes and Lead Hazard Control, at the address above; telephone (804) 
771-2100, extension 3765 (this is not a toll-free number). If you are a 
hearing- or speech-impaired person, you may reach the above telephone 
numbers via TTY by calling the toll-free Federal Information Relay 
Service at 1-800-877-8339.

II. Authority, Funding Amounts, and Amount Of Funds Allocated

    (A) Authority. HUD's authority for making funding available under 
this NOFA is Division K of the Consolidated Appropriations Resolution 
of 2003, Pub. L. 108-7, approved February 20, 2003.
    (B) Funding Available. Approximately $10 million will be available 
for the FY 2003 Operation Lead Elimination Action Program (LEAP). 
Grants of 24 months duration will be awarded on a competitive basis 
following evaluation of all proposals according to the rating factors 
described in this NOFA. HUD anticipates that approximately 6-10 grants 
will be awarded.
    (C) Allocation of Funds/Grant Awards. Through Operation LEAP, 
grantees will aggressively pursue additional private sector resources 
with the goal of securing the resources needed to eliminate lead-based 
paint hazards in housing. Resources generated by awardees must be used 
and/or distributed to assist national, state, and local entities 
actively committed to lead hazard control in residential structures and 
that possess the requisite skills, certifications, and capacity to 
utilize these resources to conduct lead hazard control/abatement 
activities in low-income, privately-owned rental or owner-occupied 
housing containing lead-based paint hazards. The allocation and 
distribution of generated resources by the grantee requires prior 
approval of the HUD Office of Healthy Homes and Lead Hazard Control.

III. Eligible Applicants and Activities

    (A) Program Description. Operation LEAP grant funds will be used to 
support non-profit and for-profit entities with substantial fundraising 
and/or leveraging skills to use those skills to mobilize substantial 
private sector resources for addressing lead hazards in housing. HUD is 
particularly looking for innovative or creative local, regional or 
nationwide fund raising and/or leveraging and mobilization strategies 
that can yield large amounts of contributions in a two-year time frame 
and also increase awareness of lead hazards and abatement measures in 
the home. Grants will be awarded to those entities that are able to 
demonstrate the ability to generate substantial private sector 
resources that can be used toward lead abatement programs and efforts, 
based upon the responses provided in the Factors for Award described 
below. (Private sector resources do not include any funding or in-kind 
resources from the public sector.)
    LEAP funds may also be used to eliminate lead-based paint hazards 
in low-income privately owned housing, which supplements the National 
strategy as defined by Title X of the Housing and Community Development 
Act of 1992 (42 U.S.C. 4851 et. seq.).
    (B) Eligible Applicants. To be eligible to apply for funding under 
this program, the applicant must be a tax-exempt (501(c)), other non-
profit or for-profit entity or firm. States and units of general local 
government and their departments are not eligible. Colleges and 
Universities are eligible as non-profit entities.
    (C) Eligible Activities. Activities that you may conduct for the 
purposes of developing a national or regional (multi-state) strategy 
designed to leverage or mobilize resources from the private sector may 
include, but are not necessarily limited to:
    (1) Recruiting and placing appropriate staff skilled in leveraging 
private sector resources;
    (2) Identifying innovative approaches for mobilizing resources and 
coordinating activities among a number of diverse organizations in both 
the public and private sectors;
    (3) Providing all necessary administrative and indirect support, 
including rent, equipment, materials, travel expenses and logistics, 
and subcontractors/consultants necessary to carry out grant activities;
    (4) Conducting fund raising, outreach activities and other 
activities that will result in increased lead hazard control activities 
in low-income privately owned or owner occupied housing with lead-based 
paint hazards;
    (5) Other activities that may be carried out include:
    (a) Performing dust, paint or soil testing, hazard screens, 
inspections, and risk assessments of eligible housing constructed 
before 1978 to determine the presence of lead-based paint and/or lead 
hazards from paint, dust, or soil;
    (b) Conducting lead hazard control, which may include: interim 
control of lead-based paint hazards in housing (which may include 
specialized cleaning techniques to address lead dust); and abatement of 
lead-based paint hazards, including soil and dust, by means of removal, 
enclosure, encapsulation, or replacement methods. Unless there are only 
a few surfaces coated with lead paint, complete abatement of all lead-
based paint or lead-contaminated soil is not usually acceptable as a 
cost-effective strategy unless justification is provided and 
subsequently approved by HUD. Abatement of lead-contaminated soil 
should be limited to areas with bare soil in the immediate vicinity of 
the structure, i.e., drip line or foundation of the structure being 
treated, and children's play areas. All hazard control activities must 
comply with 24 CFR part 35, subpart R, the HUD Guidelines for the 
Evaluation and Control of Lead-

[[Page 21416]]

Based Paint Hazards in Housing and all applicable Federal, State and 
local regulations; in the case of a conflict between any of the above, 
the more stringent shall apply;
    (c) Carrying out temporary relocation of families and individuals 
during the period in which lead hazard control is conducted and until 
the time the affected unit receives clearance for re-occupancy;
    (d) Performing blood lead testing and air sampling to protect the 
health of the hazard control workers, supervisors, and contractors; and
    (e) Undertaking minimal housing rehabilitation activities that are 
specifically required to carry out effective hazard control, and 
without which the hazard control could not be completed and maintained. 
Operation LEAP grant funds may be used for lead hazard control work 
done in conjunction with other housing rehabilitation programs. HUD 
strongly encourages integration of this grant program with housing 
rehabilitation, weatherization, and other energy conservation 
activities.
    (f) Conducting clearance dust-wipe testing and associated 
laboratory analysis.
    (D) Strategies/Approaches. The applicant is encouraged to employ 
creativity and initiative in achieving the objectives of the program: 
leveraging private sector resources to increase local and regional lead 
hazard control measures through a variety of means. Some examples of 
possible strategies/approaches include the following:
    (1) Enlisting the support and resource commitment of financial 
institutions, foundations, private industry and others to make 
residential housing lead-safe and eliminate lead poisoning as a public 
health threat to children;
    (2) Soliciting the support of national building materials 
providers, building component manufacturers, and housing-related 
national retail outlets to donate money or materials to lead hazard 
control programs in housing and health departments, landlords and 
owner-occupants to eliminate lead-based paint hazards in privately 
owned low-income dwellings: For example, a window, wallboard, or paint 
manufacturer/retailer could donate or coordinate the donation and 
distribution of windows or paint to lead-based paint and/or 
rehabilitation projects throughout the country. This strategy could 
also include the distribution of discount coupons for purchases of 
paint or other materials from national supplies;
    (3) Forming partnerships with banks or other mortgage or financial 
institutions willing to provide no or low-interest home improvement 
loans to finance lead hazard control activities and abatement measures 
among low-income recipients who would not otherwise be served. By 
participating, banks could fulfill a major element of their 
responsibilities under the Community Reinvestment Act;
    (4) Creating a national clearinghouse for facilitating the 
coordination and distribution of donated building materials, such as 
windows, trim molding, or paint, etc. to local projects involved in 
lead hazard control programs;
    (5) Identifying and facilitating the availability and use of 
relocation facilities for families who need to move out of their 
dwellings while lead hazard control work is being undertaken. For 
example, hotel chains, colleges, and other lead-safe sites could be 
contacted to make housing available for the relocation of families 
during lead hazard control;
    (6) Working with landlords, tenant groups and others to form 
consortia or otherwise engage landlords and owner-occupants to enroll 
their eligible housing units in local lead hazard control or 
rehabilitation programs. The applicant should obtain commitments from 
landlords to provide matching resources for work to be done on their 
units. For example, the lead hazard control program could offer 
landlords grant funds for replacement windows if the landlords 
contribute the cost of additional repairs (such as basic system 
upgrades, or other rehabilitation work including painting and 
maintenance) that is associated with lead hazard control;
    (7) Creating a nationwide ``lead-safe unit'' identification seal of 
approval program that would be used by landlords and others to market 
lead-safe units. Housing units that have lead-based paint hazards 
safely eliminated or controlled and have passed a lead clearance test, 
would receive a lead-safe unit seal;
    (8) Promoting homebuilder, remodeler, or contractor associations to 
coordinate efforts to reduce lead hazards by contributing technical 
assistance, training, presentations and materials and/or labor to lead 
hazard control efforts;
    (9) Encourage landscaping firms, nurseries, and landscape 
architects to contribute lead-safe soil, mulch, and other forms of 
vegetation cover and shrubbery designed to mitigate lead contamination 
of soil around the exterior/perimeter and play areas of affected 
housing units;
    (10) Working with grassroots faith-based and other community-based 
organizations that are committed to improving the quality of life 
within the community;
    (11) Providing training for significant numbers of trades people to 
implement lead-safe work practices, such as window replacement and 
weatherization work; and
    (12) Expand dust testing and clearance testing, especially in high-
risk communities.

(E) Support Elements

    (1) Administrative costs. Up to 10 percent of the HUD grant funds 
may be used for administration. Such costs would include the costs 
associated with completing HUD reports, accounting and bookkeeping 
expenses, costs associated with obtaining audits, and other direct 
grant management expenses (see Appendix A of this NOFA for the 
definition of Administrative Costs applicable to this program).
    (2) Outreach, Education, and Training Costs. Up to twenty percent 
of the leveraged funds may be used for training, lead hazard awareness 
and other public education, outreach and education initiatives.
    (F) Ineligible Activities. You may not use grant funds for any of 
the following:
    (1) Purchase of real property;
    (2) Chelation or other medical treatment costs related to children 
with elevated blood lead levels;
    (3) Lead hazard abatement activities in publicly owned housing, or 
project-based Section 8 housing; and
    (4) Capital expenditures in excess of $5,000 per unit cost.

IV. Program Requirements

    In addition to the requirements listed in this NOFA, the applicant 
must comply with the requirements described below:
    (A) Period of Performance. The period of performance is 24 months. 
HUD reserves the right to approve no-cost time extensions for a period 
not to exceed 24 months.
    (B) Statutory Requirements. To be eligible for funding under this 
NOFA, the applicant must meet all federal statutory and regulatory 
requirements applicable to this program. The specific requirements will 
be identified in the grant agreement for successful applicants. In 
addition, you will be required to comply with all state and local 
statutes, regulations or other applicable requirements.
    (C) Threshold Requirements. As an applicant, you must meet all of 
the threshold requirements of the General Section of this SuperNOFA 
(Section V(B)) as well as any specific threshold requirements for 
applicants under

[[Page 21417]]

Operation LEAP. Applications will not be rated or ranked if they do not 
meet the threshold requirements of the General Section of this 
SuperNOFA. Your application must receive at least 75 points to be 
eligible for funding.

V. Application Selection Process

    (A) Partial Funding. In the selection process, once available funds 
have been allocated to meet the requested or negotiated amounts of the 
top eligible applicants, HUD reserves the right to offer any residual 
amount as partial funding to the next eligible applicant, provided HUD 
is satisfied that the residual amount is sufficient to support a 
viable, though reduced effort, by this applicant. If an applicant is 
offered a reduced grant amount, the applicant will have a maximum of 14 
calendar days to accept such a reduced award and a maximum of 30 
calendar days after acceptance to submit a revised strategy and budget. 
If the applicant fails to respond within the seven-day limit, the 
applicant shall be considered to have declined the award and the award 
will be offered to the next highest ranked applicant. HUD intends to 
fund the highest ranked applications within the limits of funding.
    (B) Budget. HUD will evaluate an applicant's proposal to determine 
if it is reasonable, clearly justified, and consistent with the 
intended use of grant funds. HUD is not required to approve or fund all 
proposed activities. You must thoroughly document and justify all 
budget categories and costs. Leveraged funds should be listed in the 
column labeled ``Applicant Match'' on Form 424C.
    (C) Factors for Award Used to Evaluate and Rate Applications. The 
factors for rating and ranking applicants, and maximum points for each 
factor, are stated below. The maximum number of points to be awarded is 
100. The application must receive a total score of at least 75 points 
to be eligible for funding.

Rating Factor 1: Organizational Capacity (30 points)

    This factor addresses the applicant's organizational capacity to 
successfully implement the proposed activities in a timely manner.

(A) Staff Experience (20 points)

    Describe the knowledge and experience of the staff responsible for 
the following functions: Executive Direction; Finance Marketing; and 
Program Coordination. The applicant must have sufficient qualified 
personnel or be able to quickly retain qualified experts or 
professionals in financial/grant management, marketing, and/or lead-
based paint programs that will allow you to immediately begin your 
proposed work program and to perform your proposed activities within 
the two-year period of performance.
    The applicant's narrative should include information about your 
organizational and staff capacity in fund raising and/or leveraging, 
and private sector recruitment successfully conducted recently (e.g., 
within the past five years). Include a discussion of staff knowledge 
and expertise in fund raising, organizational skills, lead hazard 
control and lead-safe housing information.
    The discussion on capacity should include the depth, (depth relates 
to the number of persons with available knowledge and expertise: range 
relates to the extent of that knowledge and expertise), experience, the 
commitment of time to the program, salary information, length of time 
with organization and position titles of the program staff. Resumes or 
detailed job announcements for the above key positions must be included 
as an appendix to your application. Indicate the percentage of time key 
personnel will devote to the proposed project. The Program Coordinator 
must be dedicated to this effort for a minimum of 75 percent of the 
time. An applicant may demonstrate capacity by thoroughly describing 
prior experience in this type of activity and/or how the applicant will 
develop the necessary capacity to carryout proposed activities.

(B) Grants Management (5 points)

    Describe the agency's or organization's ability to manage grants 
and leveraged program funds and activities.

(C) Partner Expertise (5 points)

    Describe project participants/partners knowledge and experience 
regarding lead poisoning as a public health threat to children, and/or 
lead-based paint issues and hazard control. Use of staff with more 
recent, relevant, and demonstrated successful experience will result in 
a higher rating.

Rating Factor 2: Approach (30 points)

    This factor addresses the work plan strategy that the applicant 
intends to follow in meeting the goals and objectives of the program. 
This work plan strategy should address the following:

(A) Selection Process for Partner Organization (20 points)

    Describe the selection process for those organizations that are to 
conduct or coordinate work activities for lead hazard control, 
outreach, evaluation, etc. How do you intend to involve faith-based and 
other community-based organizations in your proposed activities?

(B) Leveraging Strategy (10 points)

    Describe the proposed strategy for leveraging private sector 
resources including:
    (1) Target audiences/constituencies;
    (2) Use of contractors/subgrantees/partners and their method of 
selection;
    (3) Methods of outreach/promotion;
    (4) Types of leveraging to be employed;
    (5) Proposed use and distribution of funds/resources leveraged;
    (6) Overall project management and coordination; and
    (7) Proposed schedule of activities within the 24-month period of 
performance.
    Although creativity and innovation are strongly encouraged, these 
activities must be realistic and capable of accomplishment. An 
applicant's award would be contingent upon budget negotiation and 
approval of a revised work plan. This work plan would have to describe 
the deliverables as goals with specific measures of achievement. For 
example: if an applicant proposed to use as leverage the resources from 
property owners who are eliminating and/or controlling lead hazards for 
their properties, the applicant would have to provide the number of 
units and an average investment amount. This information would be shown 
in the applicant's work plan and become part of the applicant's 
performance expectations.

Rating Factor 3: Leveraging Resources (35 points)

    This factor addresses the applicant's ability to obtain and use 
private sector resources or leverage private sector activities that can 
be combined with HUD and other program resources to achieve program 
objectives. Private funds/resources do not include any public sector 
funds, e.g., funds provided by states and units of general local 
government including Community Development Block Grant (CDBG)/Home 
Investment Partnership (HOME) funds. Applicants may use such funds as 
part of this program but will not receive any points for use of public 
funds under this rating factor. Points will be awarded based on the 
satisfactory provision of evidence of leveraging and financial 
sustainability, as described above, and the ratio of requested HUD LEAP 
funds to the total Federal budget meets the following:

[[Page 21418]]

(1) Leveraged Funds (25 Points)

    Points for this sub-factor will be awarded based on the 
satisfactory provision of evidence of leveraging and financial 
sustainability, as described above, and the ratio of leveraged funds as 
a percentage of the HUD funds requested.

------------------------------------------------------------------------
                Percentage of leveraged funds                    Points
------------------------------------------------------------------------
1-9..........................................................          5
10-20........................................................         10
21-40........................................................         15
41-75........................................................         20
75................................................         25
------------------------------------------------------------------------

(2) Prior Ability to Leverage Funds (5 Points)

    Describe what the organization has done in the recent past (e.g., 
within the past five years) that gives evidence of its ability and 
experience to leverage substantial private sector resources. Describe 
specific activities, the amount of funds or goods leveraged, and what 
the leveraged funds were used to support. If an applicant has 
experience in generating funds or goods for purposes similar to 
addressing lead paint abatement or control measures, the applicant 
should describe those activities and the results achieved.

(3) Current Commitments (5 points)

    Describe the types of public or private sector commitments, if any, 
currently available to devote to Operation LEAP grant program 
activities, and the anticipated future amounts to be generated. Based 
upon the estimated amount of funding anticipated for leveraging over 
the life of the award, identify the general geographic locations of the 
units that will be treated by this increased funding or leveraged 
goods. Also provide an estimate of the number of units that can be 
expected to be treated. The description of the location of treatment 
areas should be sufficient to determine that the units serve low-income 
persons. Generated resources may include cash or in-kind contributions 
of services, equipment, or supplies. In evaluating this factor, HUD 
will consider the extent to which the applicant has established working 
partnerships, memoranda of understanding and/or firm agreements with 
other identified entities for the commitment of additional resources. 
Resources may be provided by any private source, including 
contributions of investor-owners. However, leveraged claims for 
donations of goods and services should be based on market values and 
documented where possible. Applicants that do not have such 
partnerships at the time of application will be required to establish 
partnerships immediately following notification of grant award. Only 
contributions that have a stated monetary value with supporting 
documentation from the contributing organization/entity authorized to 
make such commitment will be counted. Firmly established commitments 
will be rated more highly than applications with commitments that have 
not yet been established. Applicants that have targeted specific high-
risk neighborhoods or geographic locations for leveraging/fundraising 
and abatement/control activities will receive a higher number of rating 
points.

Rating Factor 4: Achieving Results and Program Evaluation. (5 Points)

    This factor emphasizes HUD's commitment to ensuring that applicants 
achieve the goals outlined in their work plan and other benchmark 
standards and assess their performance to ensure performance goals are 
met. Achieving results means you, the applicant, have clearly 
identified the benefits, or outcomes of your program. Outcomes are 
ultimate goals. Benchmarks or outputs are interim activities or 
products that lead to the ultimate achievement of your goals.
    Program evaluation requires that you, the applicant, identify 
program outcomes, interim products or benchmarks, and performance 
indicators that will allow you to measure your performance. Performance 
indicators should be objectively quantifiable and measure actual 
achievements against anticipated achievements. Your Evaluation Plan 
should identify what you are going to measure, how you are going 
measure it and the steps you have in place to make adjustments to your 
work plan if performance targets are not met within established 
timeframes.
    This new rating factor reflects HUD's goal to embrace high 
standards of ethics, management and accountability. Applicants are 
required to complete the HUD Logic Form included in Appendix A of this 
NOFA.
    (1) An applicant is to identify and describe specific methods, 
measures, and tools that you will use (in addition to HUD reporting 
requirements) to measure progress, evaluate program effectiveness, and 
identify program changes necessary to improve performance. Describe how 
you will obtain, document and report the information. In evaluating 
this factor, HUD will consider how you have described outcome measures 
and benefits of your program including:
    (a) The purpose of the Operation LEAP is to leverage private sector 
resources to eliminate lead poisoning as a major public health threat 
to young children. The key terms here are ``leverage of private sector 
resources.'' HUD is looking for those applicants that demonstrate the 
most realistic and positive fund raising and/or leveraging skills to 
mobilize substantial private sector resources for addressing lead 
hazards in housing.
    (b) Demonstration of a national and/or regional (multi-state) 
strategy for leveraging resources from the private sector is essential. 
Those resources should be realistic and achievable and made part of the 
workplan and benchmark activities of this proposal. The proposed budget 
should demonstrate how these leveraged funds would be used to address 
lead hazards in housing and make residential housing lead-safe and 
eliminate lead poisoning as a public health threat to children.
    (c) Results of any specific plans and objectives established to 
implement and/or maintain a registry (listing) of lead-safe housing 
that is available to the public, or to incorporate the inclusion of the 
lead-safe status of properties in another publicly accessible address-
based property information system. Results could include how the 
information would be managed and affirmatively marketed to the public 
so that families (particularly low-income families with children under 
six years of age) can make informed decisions regarding their housing 
options. Applicants that demonstrate partnerships with national or 
regionally recognized material suppliers, e.g., sheet rock/drywall 
manufacturers or retailers, paint manufacturers or distributors, window 
manufacturers or distributors, etc., will receive stronger 
consideration.
    (d) The extent to which affirmatively furthering fair housing for 
all segments of the population is advanced by the proposed activities. 
Detail how the proposed work plan will support the community's efforts 
to affirmatively further affordable housing and discuss the impact of 
prior activities that have contributed to enhanced lead-safe housing 
opportunities.
    (e) How your program will be held accountable for meeting program 
goals, objectives, and the actions undertaken in implementing the grant 
program. Applicants should provide a description of the mechanism to 
assess progress and track performance in meeting the goals and 
objectives outlined in the work plan. Applicants should provide 
assurances that work plans and performance measures developed for the

[[Page 21419]]

program will assist intended beneficiaries, and that work will be 
conducted in a timely and cost-effective manner.
    Note on Program Performance: Grantees shall take all reasonable 
steps to accomplish all LEAP activities outlined in an approved work 
plan within the approved period of performance. HUD will closely 
monitor grantee performance with particular attention placed on the 
leveraging of private sector resources specified in the application and 
grant agreement, the expenditure of HUD grant funds as evidenced by 
draw downs from the Line of Credit Control System (LOCCS), and other 
approved grant activities. HUD reserves the right to terminate the 
grant prior to the expiration of the period of performance if a grantee 
fails to meet established work plan benchmark milestones in 
implementing the approved program of activities.
    (D) Applicant Debriefing. See Section XI (A)(d) of the General 
Section of this SuperNOFA for information about applicant debriefing. 
Written requests for debriefings after the selection of successful 
applicants should be sent to Matthew Ammon, Director, Lead Hazard 
Control Grants Division, 451 7th Street SW., Washington, DC, 20410.
    (E) Rating Panels. See Section VI (B) of the General Section of 
this SuperNOFA for information about rating panels.
    (F) Adjustments to Funding. See Section VI (F) of the General 
Section of the SuperNOFA for information about adjustments to funding.
    (G) Participation in HUD-Sponsored Program Evaluation. As a 
condition of the receipt of financial assistance under this NOFA, you 
will be required to cooperate with all HUD staff or contractors 
performing HUD-funded research and evaluation studies pertaining to the 
subject of the grant.

VI. Application Submission Requirements

(A) Applicant Information

    (1) Application Format. The application narrative response to the 
Rating Factors are limited to a maximum of 15 pages. Your response must 
be typewritten on one (1) side only on 8\1/2\'' x 11'' paper using a 
12-point (minimum) font with not less than \3/4\'' margins on all 
sides. Appendices should be referenced and discussed in the narrative 
response. Materials provided in the appendices should directly apply to 
the rating factor narrative.
    (2) Application Checklist. Your application must contain the items 
listed in the Checklist and Submission Table of Contents included in 
Appendix A of this NOFA. These items include the standard forms, 
certifications, and assurances listed that are applicable to this 
funding (collectively, referred to as the ``standard forms''). The 
standard forms can be found in the General Section of the SuperNOFA. 
The application items required for submission are:
    (a) Transmittal Letter. A transmittal letter that identifies the 
applicant(s) or submitting the application, the dollar amount 
requested, what the program funds are requested for, and the nature of 
involvement with community-based organizations. Also include the name, 
mailing address, telephone number, and principal contact person of the 
applicant. If you have consortium associates, sub-grantees, partners, 
major subcontractors, joint venture participants, or others 
contributing resources to your project, you must provide similar 
information for each of these partners;
    (b) Abstract Summary. Provide an abstract summary describing the 
goals and objectives of the proposed program (two-page maximum);
    (c) Standard Forms. All forms as required by the General Section of 
the SuperNOFA
    (d) Budget. A total budget summary (total budget is the federal 
share and leveraged contribution) with supporting cost justifications 
for all budget categories of your grant request. A maximum of ten 
percent of the federal share can be for administrative costs (see 
Appendix A--Administrative Costs of this NOFA for a description of 
administrative costs applicable to this grant program);
    An itemized breakout (using the HUD Form-424) of your required 
matching contribution, including:
    i. Values placed on donated in-kind services;
    ii. Letters or other evidence of commitment from donors; and
    iii. The amounts and sources of contributed resources; and
    (e) Partners. Contracts, Memoranda of Understanding or Agreement, 
letters of commitment or other documentation must describe the proposed 
roles of agencies, local broad-based task forces, participating faith-
based and other community-or neighborhood-based groups or 
organizations, local businesses, and others working with the program. 
For-profit entities and/or firms must clearly demonstrate and document 
how the lead-based paint hazard identification and control measures 
will be coordinated with local organizations, state(s) or units of 
general local government to carry out lead hazard control.
    (B) Proposed Activities. All applications must, at a minimum, 
describe the proposed activities in the narrative responses to the 
rating factors. Your narrative statement must be numbered in accordance 
with each factor for award (Rating Factors 1 through 4).

VII. Findings and Certifications

    See Section IX of the General Section of this SuperNOFA for 
specific requirements.

VIII. Corrections to Deficient Applications

    See Section VIII of the General Section of this SuperNOFA for 
information about corrections to deficient applications.

IX. Environmental Requirements

    Environmental Requirements. Certain activities assisted under this 
program may be subject to HUD environmental review to the extent 
required under 24 CFR part 50. An award under the Lead Elimination 
Action Program (LEAP) does not constitute approval of specific sites 
where activities that are subject to environmental review may be 
carried out. Following grant award execution, HUD will be responsible 
for ensuring that any necessary environmental reviews are completed. 
You may not rehabilitate, convert or repair property, or commit or 
expend grant funds or HUD-leveraged funds for any eligible property, 
until you receive written notification from the appropriate HUD 
official that HUD has completed its environmental review and the 
property has been approved. The results of the environmental reviews 
may require that proposed activities be modified or proposed sites 
rejected.

X. HUD Reform Act of 1989

    The provisions of the HUD Reform Act of 1989 that apply to this 
NOFA are explained in the General Section of the SuperNOFA at Section 
XI.
    Appendix A.
    This appendix to this NOFA contains lists the standard forms, 
certifications and assurances used by the programs that are part of 
this NOFA. Listed forms are located in Appendix B of the General 
Section of the SuperNOFA.
    The following forms are to be used for the Programs listed in this 
NOFA
    (1) Form HUD-424
    (2) Form HUD-424 B
    (3) Form HUD-424 C
    (4) Form HUD-424 CBW
    (5) Form HUD Logic Model Form
    (6) Application Checklist and Submission Table of Contents

[[Page 21420]]

    (7) Ethnicity and Race Data
    HUD has consolidated many of its application forms into a single 
HUD-424 form. The new HUD-424 consolidates budget-reporting forms for 
both construction and non-construction projects into a single form and 
eliminates having to have the following separate certifications: 
Certification for a Drug-Free Workplace (HUD-50070), the Certification 
of Payments to Influence Federal Transactions (HUD-50071), and the 
Certification Regarding Debarment and Suspension (HUD-2992).

New form HUD-424 replaces SF-424 and HUD-424 M
HUD-424 B replaces SF-424 B and D and HUD-50070, 50071 and 2992.
HUD-424 C and CB replaces SF-424 A and C

    The HUD-424 CBW is added as a common detailed Budget Worksheet and 
replaces various budget worksheets used throughout the Department.

Administrative Costs

    Administrative costs that may be applicable to the programs 
included in this NOFA are discussed below:

I. Purpose

    The intent of this HUD grant program is to allow the Grantee to be 
reimbursed for the reasonable direct and indirect costs, subject to a 
top limit, for overall management of the grant. In most instances the 
grantee, whether a State or a local government, principally serves as a 
conduit to pass funding to sub-grantees, which are to be responsible 
for the conducting lead-hazard reduction work. Congress set a top limit 
of ten percent of the total grant sum for the grantee to perform the 
function of overall management of the grant program, including passing 
on funding to sub-grantees. The cost of that function, for the purpose 
of this grant, is defined as the ``administrative cost'' of the grant, 
and is limited to ten percent of the total grant amount. The balance of 
ninety percent or more of the total grant sum is reserved sub-grantees 
or other direct-performers of lead-hazard identification and reduction 
work. Lead hazard identification and reduction includes, but is not 
necessarily limited to outreach, training, enrollment, lead paint 
inspection/risk assessments, interim controls, hazard abatement, 
clearance documentation, blood lead testing, and public education.

II. Administrative Costs: What They Are Not

    For the purposes of this HUD grant program for States and local 
governments to provide support for the evaluation and reduction of 
lead-hazards in low- and moderate-income, private target housing, the 
term ``administrative costs'' should not be confused with the terms 
``general and administrative cost,'' ``indirect costs,'' ``overhead,'' 
and ``burden rate.'' These are accounting terms usually represented by 
a government-accepted standard percentage rate. The percentage rate 
allocates a fair share of an organization's costs that cannot be 
attributed to a particular project or department (such as the chief 
executive's salary or the costs of the organization's headquarters 
building) to all projects and operating departments (such as the Fire 
Department, the Police Department, the Community Development 
Department, the Health Department or this program). Such allocated 
costs are added to those projects' or departments' direct costs to 
determine their total costs to the organization.

III. Administrative Costs: What They Are

    For the purposes of this HUD grant program, ``Administrative 
Costs'' are the grantee's allowable direct costs for the overall 
management of the grant program plus the allocable indirect costs. The 
allowable limit of such costs that can be reimbursed under this program 
is ten (10) percent of the total grant sum. Should the grantee's actual 
costs for overall management of the grant program exceed ten percent of 
the total grant sum, those excess costs shall be paid for by the 
grantee. However, excess costs paid for by the grantee may be shown as 
part of the requirement for cost-sharing funds to support the grant.

IV. Administrative Costs: Definition

A. General

    Administrative costs are the allowable, reasonable, and allocable 
direct and indirect costs related to the overall management of the HUD 
grant for lead-hazard reduction activities. Those costs shall be 
segregated in a separate cost center within the grantee's accounting 
system, and they are eligible costs for reimbursement as part of the 
grant, subject to the ten percent limit. Such administrative costs do 
not include any of the staff and overhead costs directly arising from 
specific sub-grantee program activities eligible under Section II (C) 
of this NOFA, because those costs are eligible for reimbursement under 
a separate cost center as a direct part of project activities.
    The grantee may elect to serve solely as a conduit to sub-grantees, 
who will in turn perform the direct program activities eligible under 
NOFA Section II (C), or the grantee may elect to perform all or a part 
of the direct program activities in other parts of its own 
organization, which shall have their own segregated, cost centers for 
those direct program activities. In either case, not more than 10 
percent of the total HUD grant sum may be devoted to administrative 
costs, and not less than 90% of the total grant sum shall be devoted to 
direct program activities. The grantee shall take care not to mix or 
attribute administrative costs to the direct project cost centers.

B. Specific

    Reasonable costs for the grantee's overall grant management, 
coordination, monitoring, and evaluation are eligible administrative 
costs. Subject to the ten percent limit, such costs include, but are 
not limited to, necessary expenditures for the following goods, 
activities and services:
    (1) Salaries, wages, and related costs of the grantee's staff, the 
staff of affiliated public agencies, or other staff engaged in 
grantee's overall grant management activities. In charging costs to 
this category the recipient may either include the entire salary, 
wages, and related costs allocable to the program for each person whose 
primary responsibilities (more than 65% of their time) with regard to 
the grant program involve direct overall grant management assignments, 
or the pro rata share of the salary, wages, and related costs of each 
person whose job includes any overall grant management assignments. The 
grantee may use only one of these two methods during this program. 
Overall grant management includes the following types of activities:
    (a) Preparing grantee program budgets and schedules, and amendments 
thereto;
    (b) Developing systems for the selection and award of funding to 
sub-grantees and other sub-recipients;
    (c) Developing suitable agreements for use with sub-grantees and 
other sub-recipients to carry out grant activities;
    (d) Developing systems for assuring compliance with program 
requirements;
    (e) Monitoring sub-grantee and sub-recipient activities for 
progress and compliance with program requirements;
    (f) Preparing presentations, reports, and other documents related 
to the program for submission to HUD;
    (g) Evaluating program results against stated objectives;
    (h) Providing local officials and citizens with information about 
the overall grant program; however, a more general education program, 
helping the

[[Page 21421]]

public understand the nature of lead hazards, lead hazard reduction, 
blood-lead screening, and the health consequences of lead poisoning is 
a direct project support activity);
    (i) Coordinating the resolution of overall grant audit and 
monitoring findings; and
    (j) Managing or supervising persons whose responsibilities with 
regard to the program include such assignments as those described in 
paragraphs (a) through (i).
    (2) Travel costs incurred for official business in carrying out the 
overall grant management;
    (3) Administrative services performed under third party contracts 
or agreements, for services directly allocable to grant management such 
as: legal services, accounting services, and audit services;
    (4) Other costs for goods and services required for and directly 
related to the overall management of the grant program; and including 
such goods and services as telephone, postage, rental of equipment, 
renter's insurance for the program management space, utilities, office 
supplies, and rental and maintenance (but not purchase) of office space 
for the program.
    (5) The fair and allocable share of grantee's general costs that 
are not directly attributable to specific projects or operating 
departments such as salaries, office expenses and other related costs 
for local officials (e.g., mayor and city council members, etc.), and 
expenses for a city's legal or accounting department which are not 
charged back to particular projects or other operating departments. If 
a grantee has an established burden rate, it should be used; if not, 
the grantee shall be assigned a negotiated provisional burden rate, 
subject to final audit.
BILLING CODE 4210-32-P

[[Page 21422]]

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[[Page 21423]]


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[[Page 21425]]



Funding Availability for the Brownfields Economic Development 
Initiative (BEDI)

Program Overview

    Purpose of the Program. BEDI funds are used to enhance the security 
of a loan guaranteed by HUD under Section 108 of the Housing and 
Community Development Act of 1974, as amended, for the same brownfields 
economic development project, or to improve the viability of a 
brownfields economic development project financed with the Section 108-
guaranteed loan, in order to stimulate economic development by local 
governments and private sector parties at brownfields sites.
    HUD provides BEDI funds (as defined in Section III (A)(1) below) to 
be used in conjunction with Section 108 loan guarantee funds, to 
finance projects and activities at brownfields sites that will provide 
near-term and measurable economic benefits, such as job creation and 
increases in the local tax base, through the return of brownfields 
sites to productive economic uses. HUD encourages brownfields economic 
development projects that propose the redevelopment of a brownfields 
site through new investments by identified private sector parties and 
that will result in new business or job creation, increases in the 
local tax base or other near-term, measurable economic benefits. In FY 
2003, HUD seeks to increase economic development opportunity throughout 
the nation and promote the creation and retention of jobs. All BEDI 
grants must be used in conjunction with a new Section 108 guaranteed 
loan commitment.
    Available Funds. Approximately $29.5 million, including $24.8 
million in appropriations from the Consolidated Appropriations 
Resolution, 2003, Public Law 108-7, approved February 20, 2003 (FY 2003 
Consolidated Appropriations) under the ``Brownfields Redevelopment'' 
heading; approximately $2,629,155 of unobligated funds from the Fiscal 
Year 2002 HUD Appropriations Act under the ``Brownfields 
Redevelopment'' heading; and $2,065,000 of unobligated funds from the 
Fiscal Year 2001 HUD Appropriations Act under the ``Brownfields 
Redevelopment'' heading. The amount of total available funds is further 
described in Section II below. The maximum amount of any BEDI grant 
award this year will be $2 million per project.
    Eligible Applicants. Only units of general local government 
eligible for assistance under the Entitlement, States' Program, or the 
Small Cities segments of the Community Development Block Grant (CDBG) 
program may apply for a BEDI grant and a Section 108 Guaranteed Loan. 
CDBG-eligible urban counties may also apply for funding, but units of 
general local government that participate in the Urban County Program 
may not submit an application independent of the Urban County. (See 
Section III (B) below for additional information regarding eligible 
applicants.)
    Application Deadline. July 16, 2003.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

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

    Application Due Date. Please submit your completed applications 
(one original and three copies) on or before July 16, 2003, to the 
addresses shown below.
    Application Submission Procedures. See the General Section of the 
SuperNOFA for specific procedures governing the submission and receipt 
of applications.
    Addresses for Submitting Applications to HUD Headquarters. Submit 
your completed application (an original and two copies) by mail or 
permitted delivery service to: Processing and Control Unit, Room 7251, 
Office of Community Planning and Development, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Washington, DC 20410, 
Attention: BEDI.
    When submitting the application, please specify BEDI on any label 
or mailing container, and include the applicant's name, mailing address 
(including zip code), street address (if different from mailing 
address) and zip code, and voice and facsimile telephone numbers 
(including area code), along with the contact person's name and voice 
and facsimile telephone numbers (including area code).
    Applications to HUD Field Offices. At the same time the application 
and copies are submitted to HUD Headquarters, an additional copy should 
be submitted to the Community Planning and Development Division of the 
appropriate HUD Field Office for the applicant's jurisdiction. HUD 
strongly suggests that applications submitted to HUD Field Offices be 
mailed via the United States Postal Service, as access by other 
delivery services cannot be guaranteed.
    For Applications. There is no application kit this year. All 
information and forms necessary to complete and submit a valid 
application are contained in the General Section and this program 
section of the SuperNOFA, and the appendices to the General Section and 
this program section. Copies of the NOFA and forms are also available 
on the Internet through the HUD Web site at http://www.hud.gov.
    For Further Information and Technical Assistance. Contact Lisa 
Peoples, Economic Development Specialist, Office of Economic 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Room 7140, Washington, DC 20410, telephone (202) 708-0614 
ext. 4456 (this is not a toll-free number). Persons with speech or 
hearing impairments may access this number via TTY by calling the toll-
free Federal Information Relay Service at 1-800-877-8339. Before the 
application due date, HUD staff will be available to provide general 
guidance and technical assistance about this BEDI NOFA. However, HUD 
staff is not permitted to assist in preparing a BEDI application. 
Following selection of applicants, but before awards are made, HUD 
staff are available to assist in clarifying or confirming information 
that is a prerequisite to the offer of an award by HUD. In addition, 
the Section 108 Loan Guarantee program is not a competitive program and 
therefore is not subject to those provisions of the HUD Reform Act 
pertaining to competitions that do not permit HUD staff to assist in 
the preparation of applications. HUD staff is available to provide 
advice and assistance to develop your Section 108 loan application.
    Applicant Debriefing. Section XI (A)(4) of the General Section of 
the SuperNOFA provides information on applicant requests for a 
debriefing. Applicants requesting to be debriefed must send a written 
request to the contact person for the BEDI program, Ms. Lisa Peoples, 
at the address listed in the preceding paragraph.
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of BEDI application(s). For more information about the date 
and time of the broadcast, you should consult the HUD Web site at 
http://www.hud.gov.

II. Amount Allocated

    HUD has available a maximum of $29,531,655 for grant awards under 
this program section as of its publication date. This amount consists 
of $24,837,500 in appropriations under the ``Brownfields 
Redevelopment'' heading in the FY 2003 Consolidated

[[Page 21426]]

Appropriations. Funds also include $2,629,155 of unobligated 
appropriated funds from the Fiscal Year 2002 HUD Appropriations Act 
under the ``Brownfields Redevelopment'' heading, as well as $2,065,000 
of unobligated appropriated funds from the Fiscal Year 2001 HUD 
Appropriations Act under the ``Brownfields Redevelopment'' heading. All 
such funds are authorized by Section 108(q) of the Act (as defined 
below). The maximum amount of a BEDI award under this competition is $2 
million per project. If any additional funds become available for the 
BEDI program during Fiscal Year 2003, including through the 
deobligation and recapture of previous BEDI awards, HUD may either fund 
additional applicants in accordance with this program section of the 
SuperNOFA, or may add these funds to funds available for future 
competitions pursuant to Section 108(q) of the Act.

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. BEDI is designed to help local governments 
redevelop brownfields, defined in this program section as abandoned, 
idled, or underutilized real property, including industrial and 
commercial facilities, where expansion or redevelopment is complicated 
by the presence or potential presence of environmental contamination. 
BEDI provides funding to local governments to be used in conjunction 
with Section 108 loan guarantees, to finance redevelopment of 
brownfields sites. A BEDI grant award will be conditioned upon, and 
must be used in conjunction with, a new (i.e., not previously approved) 
Section 108-guaranteed loan commitment. Both Section 108 loan guarantee 
proceeds and BEDI grant funds are initially made available by HUD to 
units of general local government eligible for assistance under HUD's 
Entitlement, States' Program or Small Cities segments of the Community 
Development Block Grant program. Such public entities may re-loan the 
Section 108 loan proceeds and provide BEDI funds to a business or other 
entity eligible to carry out a specific approved brownfields economic 
development project, or the public entity may carry out the eligible 
project itself, as provided in the approved application. In either 
case, BEDI grant funds and the 108 proceeds must be used to support the 
same eligible BEDI project.
    (1) Definitions. Unless otherwise defined herein, terms defined in 
24 CFR part 570 and used in this program section of this SuperNOFA 
shall have the respective meanings given thereto in that part.
    Act means Title I, Housing and Community Development Act of 1974, 
as amended (42 U.S.C. 5301 et seq.).
    Application means a single set of documents submitted by an 
eligible applicant for BEDI grant funds, in accordance with the 
provisions of this program section of the SuperNOFA to finance a 
brownfields economic development project. A BEDI application must be 
accompanied by a Section 108 loan guarantee request, which may consist 
of either a brief summary of the proposed use of 108 funds, or a full 
application, which may either be submitted at the same time as the BEDI 
application or be provided within 60 days of BEDI grant award, as more 
fully explained in Section IV(D) of this program section. Note that the 
Section 108 application must be submitted to the appropriate HUD field 
office concurrently with its submission to Headquarters.
    Brownfields means abandoned, idled, or under-used real property 
(including industrial and commercial facilities) where expansion or 
redevelopment is complicated by the presence or potential presence of 
contamination.
    Brownfields Economic Development Initiative (BEDI) funds means the 
appropriated funds made available for the competition under this 
program section from any available appropriation.
    Brownfields Economic Development Initiative (BEDI) project or 
brownfields economic development project means an activity or 
activities (including mixed use projects with housing components) that 
are eligible under Section 108(q) of the Act and under 24 CFR 570.703, 
and that will increase economic opportunity for persons of low- and 
moderate-income, stimulate or retain businesses or jobs, or otherwise 
lead to near-term, measurable economic benefits in connection with 
brownfields.
    CDBG funds means those funds collectively so defined at 24 CFR 
570.3, including grant funds received pursuant to Section 108(q) and 
this program section of this SuperNOFA.
    Economic Development Initiative (EDI) grant means the provision of 
economic development grant assistance under Section 108(q) of the Act, 
as authorized by Section 232 of the Multifamily Housing Property 
Disposition Reform Act of 1994 (Pub. L. 103-233, approved April 11, 
1994).
    EPA means the U.S. Environmental Protection Agency.
    Firm Commitment means either a written agreement or letter of 
understanding by which an applicant and/or a third party:
    (1) Agrees to perform an activity or provide resources as specified 
in the application, and demonstrates their relationship to the proposed 
BEDI/Section 108 project;
    (2) Specifies the dollar value of the commitment, and demonstrates 
that it has the financial and organizational capacity to deliver the 
resources necessary to successfully complete the activity; if the 
activity is to be self-financed, the third party must evidence its 
financial capacity through a corporate or personal financial statement 
or other appropriate means; and
    (3) Irrevocably commits the resources to the activity either 
through cash or in-kind services or contributions; if any portion is to 
be financed through a grant or loan from another public or private 
organization, that institution's grant or loan commitment must be 
firmly committed as well.
    Any such agreement or letter of understanding shall be understood 
as being contingent upon receipt of the BEDI grant. In order for a 
commitment to be included in the applicant's score under Rating Factor 
4 (Leveraging Resources), each commitment---including the donation or 
purchase of real property or the provision of in-kind services---must 
be assigned a monetary value by the party making the commitment, 
accompanied by an indication of the basis for that assigned value.
    Each agreement or letter of commitment must include the name of the 
organization making the commitment, the proposed total level of 
commitment (including how the value was determined) and the 
responsibilities of the organization as they relate to the proposed 
BEDI project. The commitment must be signed by an official of the 
organization legally authorized to make commitments on behalf of the 
organization, with a statement confirming that authority, and remain in 
effect for a period stated in the commitment.
    Applicants Committing CDBG Funds: In order for an applicant's 
commitment of CDBG funds to be accepted by HUD as additional financing 
for a BEDI project, a resolution from the local governing body (e.g., 
city/borough council) authorizing the amount and permitted uses of the 
funds must be provided.
    Showcase Community means an applicant chosen by the federal 
government's Brownfields National Partnership for inclusion in the 
federal government's Brownfields Showcase

[[Page 21427]]

Communities program. A list of the federally designated Brownfield 
Showcase Communities is provided in Appendix B of this program section 
of the SuperNOFA and is also available from the SuperNOFA Information 
Center or through the HUD web site, http://www.hud.gov.
    Strategic Plan means a strategy or course of action developed and 
agreed to by the nominating local government(s) and state(s) and 
submitted in partial fulfillment of the application requirements for an 
Empowerment Zone, Enterprise Community, or a Renewal Community, 
designated pursuant to 24 CFR part 597, part 598, or part 599.
    (2) Background. HUD has multiple programs that are intended to 
stimulate economic and community development and promote economic 
revitalization of distressed areas, and which can be effectively 
employed to address and remedy brownfields conditions. Primary among 
HUD's resources are the Community Development Block Grant (CDBG) 
program and the Section 108 loan guarantee program.
    (a) The CDBG program provides grant funds by formula to local 
governments (either directly or through states) to carry out community 
and economic development activities ($4.340 billion appropriated in FY 
2003). The Section 108 loan guarantee program provides CDBG-recipient 
communities with a source of financing for economic development, public 
facilities, and other eligible large-scale physical development 
projects. HUD is authorized pursuant to Section 108 to guarantee notes 
issued by CDBG entitlement communities and non-entitlement units of 
general local government eligible to receive funds under the CDBG 
States' program, as well as non-entitlement units of general local 
government in the State of Hawaii. The Section 108 program is subject 
to the regulations applicable to the CDBG program at 24 CFR part 570 as 
described in 24 CFR part 570, subpart M. BEDI grants must support 
Section 108 loan guarantees as generally described in this program 
section of this SuperNOFA.
    (b) For FY 2003, the loan guarantee authority for the Section 108 
program is estimated at $573,000,000 including $298,000,000 in loan 
guarantee authority that will continue be to available under the Fiscal 
Year 2002 appropriation and $275,000,000 in loan guarantee authority 
for Fiscal Year 2003. The full faith and credit of the United States is 
pledged to the payment of all guarantees made under Section 108. Under 
this program, communities (and states, as applicable) pledge their 
continuing CDBG allocations as security for loans guaranteed by HUD. 
The Section 108 program, however, does not require CDBG funds to be 
escrowed for loan repayment (unless such an arrangement is specifically 
negotiated as loan security and included in the applicable ``Contract 
for Loan Guarantee Assistance.'') This means that a community can 
ordinarily continue to spend its existing allocation for other CDBG 
purposes, unless needed for loan repayment.
    (3) EDI Program. The EDI authorization, Section 108(q) of the Act, 
was enacted in 1994 and is intended to complement and enhance the 
Section 108 Loan Guarantee program.
    (4) BEDI Program. A purpose of BEDI (and EDI) grant funds is to 
reduce grantees' potential loss of future CDBG allocations:
    (a) By strengthening the economic feasibility of a project financed 
with Section 108 funds (and thereby increasing the probability that the 
project will generate enough cash to repay the guaranteed loan);
    (b) By directly enhancing the security of the Section 108-
guaranteed loan; or
    (c) Through a combination of these or other risk mitigation 
techniques.
    HUD intends all the funds available pursuant to this program 
section of the SuperNOFA to be used for purposes of the redevelopment 
of brownfields sites. Accordingly, BEDI funds shall be used as the 
stimulus for local governments and private sector parties to commence 
redevelopment or continue phased redevelopment efforts on brownfields 
sites where contamination is present or potentially present and a 
redevelopment plan exists. HUD desires to see BEDI and Section 108 
funds used to finance projects and activities that involve investment 
in the brownfields site by an identified private sector party and that 
will provide near-term results and measurable economic benefits, such 
as job creation and increases in the local tax base, through the return 
of brownfields sites to productive economic use.
    (5) Integration of Other Government Brownfields Programs. HUD 
expects and encourages local governments which are designated through 
(a) the federal government's Brownfields Showcase Community program, 
(b) other federal brownfields programs (e.g., EPA's Assessment, Tax 
Incentive, Revolving Loan Fund or Cleanup Grant programs), (c) a state-
supported brownfields program, or (d) a state or local related economic 
development program, to integrate efforts arising from those programs 
in developing projects for assistance under HUD's BEDI and Section 108 
programs. Applicants should elaborate upon these ties in their response 
to the rating factors, where appropriate (e.g., ``Capacity of the 
Applicant,'' ``Soundness of Approach,'' or ``Leveraging Resources''--
Rating Factors 1, 3, and 4 respectively.)
    (6) Additional Security for Section 108 Loan Guarantee. Public 
entities should consider the need to provide additional security for 
the Section 108 loan guarantee pursuant to 24 CFR 570.705(b)(3). 
Although a public entity is required by the Act to pledge its current 
and future CDBG allocations as security for the Section 108 loan 
guarantee, the public entity will usually be required to furnish 
additional collateral. In most cases, the additional collateral 
consists (in whole or in part) of the asset financed with the Section 
108 loan funds (e.g., a loan made to a business as part of an economic 
development project and the related mortgage from the business). 
Applications proposing uses for BEDI funding that directly enhance the 
value of the assets securing the Section 108 loan will help ensure that 
the project-based asset(s) will satisfy the additional collateral 
requirements.
    (7) Uses of BEDI Funds. Generally, proposals must be consistent 
with other CDBG requirements, including meeting National Objectives and 
activity eligibility requirements under Sec.  570.703 of the Section 
108 Loan Guarantee regulations, as described in Section III (C) of this 
program section. The following examples are offered only to illustrate 
some of the ways in which BEDI funds may be used to support 108-
guaranteed loans:
    (a) Land Writedowns. Local governments may use a combination of 
Section 108 and BEDI funds to acquire a brownfields site for purposes 
of reconveying the site to a private developer at a discount from its 
purchase price. This approach would provide the developer with an asset 
of enhanced value that could be used as collateral for other sources of 
funding and those other sources of financing could then be used to 
finance environmental remediation or other development costs. In such a 
circumstance, the level of BEDI assistance could approximate the 
difference between the original cost of the site and its remediation in 
comparison to the market value of the remediated property.
    (b) Site Remediation Costs. Local governments may use BEDI funds in 
any of several ways to address site remediation costs. If the local 
government proposes to use Section 108 funds to acquire real property, 
BEDI

[[Page 21428]]

funds could be used to address assessment and site remediation costs as 
part of eligible demolition, clearance, or site preparation activities. 
If the local government uses Section 108 funds to make a loan to a 
developer, BEDI funds could be granted or loaned to the developer for 
the purpose of addressing remediation costs as part of an economic 
development activity.
    (c) Funding Reserves. The cash flow generated by an economic 
development project may be expected to be relatively ``thin'' in the 
early stages of the project, i.e., potentially insufficient to meet 
operating expenses and debt service obligations. The BEDI grant could 
be used by the grantee to either establish a debt service reserve to 
cover interest on the Section 108 loan, or as a grant to a business for 
working capital. In either case, the BEDI funds enhance the economic 
feasibility of the project.
    (d) Direct Enhancement of the Security of the Section 108 Loan. The 
BEDI grant can be used to pay for the cost of providing credit 
enhancements for the Section 108 loan. For example, if eligible as part 
of the cost of an appropriate eligible activity, the BEDI grant can be 
used to pay for the cost of a standby letter of credit, issued in favor 
of HUD. This letter of credit will be available to fund amounts due on 
the Section 108 loan if other sources fail to materialize, and thus 
will serve to protect the public entity's future CDBG funds.
    (e) Provision of Financing to For-Profit Businesses at a Below 
Market Interest Rate.
    While the rates on loans guaranteed under Section 108 are only 
slightly above the rates on comparable U.S. Treasury obligations, they 
may nonetheless be higher than can be afforded by businesses, non-
profit groups or public entities in severely economically distressed 
neighborhoods. The BEDI grant can be used to make Section 108 financing 
affordable by serving to ``buy down'' the interest rate up front, or 
make full or partial interest payments on the Section 108 loan. This 
might increase the financial viability of the businesses or other 
entities in the early start-up period, which might not otherwise be 
possible with Section 108 alone. This strategy would be particularly 
useful where a community was undertaking a large commercial or retail 
project in a brownfields area in order to act as a catalyst for other 
development in the area.
    (f) Combination of Techniques. A combination of the above could be 
employed to implement a BEDI project successfully.
    (B) Eligible Applicants. Any public entity eligible to apply for 
Section 108 loan guarantee assistance in accordance with 24 CFR 570.702 
may apply for BEDI grant assistance under Section 108(q). Eligible 
applicants are CDBG entitlement units of general local government and 
non-entitlement units of general local government eligible to receive 
loan guarantees under 24 CFR part 570, subpart M. Urban Counties, as 
defined at 24 CFR 570.3 and 570.307, are eligible applicants for BEDI 
funds; units of general local government that participate in an Urban 
County program are not independently eligible applicants. For non-
entitlement applicants other than those subject to 24 CFR 570, subpart 
F (which applies only to the State of Hawaii), applicants will be 
required to provide evidence in the application from an authorized 
official of the state agency responsible for administering the State 
CDBG program stating that it will support the related Section 108 loan 
with a pledge of its CDBG allocations pursuant to the requirements of 
24 CFR 570.705(b)(2). Such evidence shall take the form of the HUD 
Certification titled ``SECTION 108 LOAN GUARANTEES: State 
Certifications Related to Nonentitlement Public Entities'' included in 
this program section to the SuperNOFA, or which may be obtained by 
downloading from the Internet at http://www.hud.gov. Note that 
effective January 25, 1995, non-entitlement public entities in the 
State of Hawaii are authorized to apply to HUD for Section 108 loans ( 
see 59 FR 47510, December 27, 1994). Thus non-entitlement public 
entities in all 50 states and Puerto Rico are eligible to participate 
in the Section 108 and BEDI programs, with assistance of the state's or 
commonwealth's pledge of CDBG allocations.
    (C) Eligible Activities and National Objectives. (1) BEDI grant 
funds and Section 108 loan guarantee funds may be used for activities 
listed at 24 CFR 570.703, provided such activities are carried out as 
part of a BEDI project as described in this program section of the 
SuperNOFA and meet the CDBG requirements at 24 CFR 570.200. Applicants 
are required to submit applications that seek funding for BEDI projects 
that will contribute to the redevelopment and revitalization of 
brownfields. Applications that fail to meet the threshold requirements 
found in Section V (B) of the General Section of the SuperNOFA and the 
program requirements of this section will not be rated, ranked, or 
otherwise considered by HUD.
    (2) Each activity assisted with Section 108 loan guarantee or BEDI 
funds must meet a national objective of the CDBG program as described 
in 24 CFR 570.208. Applicants must clearly identify in their narrative 
statement (as described in Section V (B) of this program section below) 
the CDBG national objective to be achieved by the proposed project and 
provide the appropriate CDBG national objective regulatory citation 
found at 24 CFR 570.208. Applicants must also address, when applicable, 
how the proposed activities will comply with the public benefit 
standards of the CDBG program as reflected in the regulation at 24 CFR 
570.209.
    (3) A grantee's aggregate use of its CDBG funds, including any 
Section 108 loan guarantee proceeds and Section 108(q) (BEDI) funds 
provided pursuant to this program section of the SuperNOFA, must comply 
with the CDBG primary objective requirements as described in Section 
101(c) of the Act and 24 CFR 570.200(a) (3) for entitlement grantees, 
or 570.484 in the case of a recipient under a state's program.
    (4) Applicants are reminded of the Department's Policy Priorities 
for FY 2003 found in Section II of the General Section of the 
SuperNOFA, several of which apply to this program section, as described 
below, under Rating Factor 3 in Section V of this program section.

IV. Program Requirements

    (A) General Requirements. Applicants for BEDI grant funds must 
comply with the statutory, regulatory, threshold and public policy 
requirements listed in Section V of the General Section of the 
SuperNOFA.
    (B) CDBG Program Regulations. In addition to 24 CFR 570.701 
(Definitions), Sec.  570.702 (Eligible applicants), and Sec.  570.703 
(Eligible activities), as explained in Section III (C) of this program 
section of the SuperNOFA, the CDBG regulatory requirements cited in 24 
CFR 570.707, including subparts J (Grant Administration), K (Other 
Program Requirements), and O (Performance Reviews) govern the use of 
BEDI funds, as applicable.
    (C) Compliance with Applicable Environmental and Other Laws. 
Applicants are advised that an award of BEDI funding does not in any 
way relieve the applicant or third party users of BEDI funds from 
compliance with all applicable federal, state and local laws, 
particularly those addressing the environment. Applicants are further 
advised that HUD may require evidence that any project involving 
remediation has been or will be carried out in

[[Page 21429]]

accordance with applicable law, including voluntary clean up programs.
    (D) Related Section 108 Loan Guarantee Request. (1) Each BEDI 
application must be accompanied by a request for new Section 108 loan 
guarantee assistance. The request may take any of the four forms 
defined in paragraphs (a), (b), (c), or (d) below in this Section IV 
(D). Notwithstanding the form of your request for new Section 108 loan 
guarantee assistance, the applicant must include citations to the 
specific regulatory subsection supporting activity eligibility and 
National Objectives compliance for the Section 108 funds described in 
the application. (See Section III (C) of this program section of the 
SuperNOFA.) Both the BEDI and Section 108 funds must be used in 
conjunction with the same BEDI project. The request for new Section 108 
guarantee assistance may be presented through:
    (a) A full application for new Section 108 loan guarantee(s), 
including the documents listed at 24 CFR 570.704(b).
    (b) A brief description (not to exceed three pages) of the project 
to be applied for in a subsequent new Section 108 loan guarantee 
application(s). Such a 108 application(s) shall be submitted within 60 
days of written notice of BEDI selection, with HUD reserving the right 
to extend such period on a case-by-case basis where HUD determines 
there is evidence of good cause. BEDI awards will be conditioned on 
approval of actual Section 108 loan commitments and loan guarantee 
proceeds in a specific ratio of BEDI funds to Section 108 funds as 
approved by HUD in the BEDI award. The application description must be 
sufficient to support the basic eligibility of the proposed project and 
activities for Section 108 assistance. (See Section III (C) of this 
program section of the SuperNOFA.)
    (c) A copy of a pending, unapproved Section 108 loan guarantee 
application, and any proposed amendments to the Section 108 application 
which are related to the BEDI application. The applicant's submission 
of such a BEDI/Section 108 application shall be deemed by HUD to 
constitute a request to suspend separate processing of the Section 108 
application. The Section 108 application will not be approved until on 
or after the date of the related BEDI award.
    (d) A request for Section 108 loan guarantee assistance (analogous 
to Section IV (D)(1)(a) or (b) of this BEDI section of the SuperNOFA) 
that proposes to increase the amount of a previously approved 
application. However, any amount of Section 108 loan guarantee 
authority approved before HUD's announcement of a BEDI grant for the 
same project is not eligible to be used in conjunction with a BEDI 
grant under this program section.
    (2) Further, a Section 108 loan guarantee amount that is required 
to be used in conjunction with a previously approved BEDI or EDI grant 
award, whether or not the Section 108 loan guarantee has been approved 
as of the date of this SuperNOFA, is not eligible for a BEDI award 
under this SuperNOFA. For example, if a public entity has a previously 
approved Section 108 loan guarantee commitment of $12 million, even if 
none of the funds have been utilized, or if the public entity had 
previously been awarded a BEDI grant of $1 million and had agreed to 
submit a Section 108 loan application for $10 million in support of 
that BEDI grant, the public entity's application under this program 
section of this SuperNOFA must propose to increase the amount of its 
total Section 108 loan guarantee commitments beyond those amounts to 
which it has previously agreed. (i.e., the $12 million or $10 million 
Section 108 loan guarantee commitments in this example).
    (E) Prohibitions on Use of BEDI and Section 108 Funds. Certain 
restrictions shall apply to the use of BEDI and Section 108 funds:
    (1) BEDI grant funds must not be used as a resource to immediately 
repay the principal of a loan guaranteed under Section 108. Repayment 
of principal is only permissible with BEDI grant funds as a matter of 
security if other sources projected for repayment of principal prove to 
be unavailable.
    (2) Section 108 loan obligations may not be subordinated, directly 
or indirectly, to federally tax exempt obligations. Pursuant to Office 
of Management and Budget (OMB) Circular A-129 (Rev.) Appendix A, 
Sections II.2.c. and d., (Policies for Federal Credit Programs and Non-
Tax Receivables), Section 108 guaranteed loan funds may not directly or 
indirectly support federally tax-exempt obligations.
    (3) BEDI grant funds shall not be used in any manner by grantees to 
provide public or private sector entities with funding to remediate 
conditions caused by their own actions, where the public entity (or 
other known prospective beneficiary of the proposed BEDI grant) has 
been determined responsible for causation and remediation by order of a 
court or a federal, state, or local regulatory agency, or is 
responsible for the remediation as part of a settlement approved by 
such a court or agency. Applicants will be required in the BEDI 
Narrative Statement described in Section (V)(B) of this program section 
of the SuperNOFA to indicate that the proposed BEDI project will not be 
used to provide assistance as prohibited herein.
    (4) Applicants may not propose projects on sites which are: (i) 
Listed or proposed to be listed on EPA's National Priority List (NPL); 
(ii) subject to unilateral administrative orders, court orders, 
administrative consent orders or judicial consent decrees issued or 
entered into by parties under the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980, as amended (CERCLA); or (iii) 
subject to the jurisdiction, custody or control of the United States 
government. Applicants will be required in the BEDI Narrative Statement 
described in Section (V)(B) of this program section of the SuperNOFA to 
indicate that the proposed BEDI project will not be undertaken at an 
ineligible site as provided herein.
    (5) BEDI grant assistance cannot be used to leverage a Section 108 
loan guarantee approved prior to the date of HUD's announcement of a 
BEDI grant pursuant to this SuperNOFA. However, the BEDI grant may be 
awarded before HUD approval of the Section 108 commitment if HUD 
determines that such award will further the purposes of the Act.
    (6) A BEDI award will not be made if the Section 108 request 
contained in the application (See Section IV(D) of this program 
section) calls for the use of the Section 108-guaranteed obligation 
solely as security for other financing on the project.
    (F) Time-frames. As a condition of any award under this program 
section, if the related Section 108 application has not been submitted 
and approved within ten (10) months of written HUD notification of 
selection for potential funding under this NOFA, HUD may deobligate the 
BEDI funds. BEDI grant awards will contain conditions requiring 
grantees to adhere to time-frames mutually agreed on by the applicant/
grantee and HUD for implementing proposed projects and drawing Section 
108 and BEDI funds. If BEDI grant funds and Section 108 loan proceeds 
are not disbursed to the applicant within the timeframes specified in 
the BEDI grant agreement, HUD reserves the right to cancel the award 
and recapture the BEDI funds.
    (G) Limitations on Grant Amounts. (1) HUD expects to approve BEDI 
grant amounts for approvable applications with a range of ratios of 
BEDI grant funds awarded to new Section 108 loan guarantee commitments 
but the

[[Page 21430]]

minimum ratio will be $1.00 of Section 108 loan guarantee commitments 
for every $1.00 of BEDI grant funds. However, if an applicant proposes 
a leverage ratio of exactly 1:1, that application, while still meeting 
the threshold requirement, will not receive any points under the Rating 
Factor 4, paragraph (1): ``Leverage of Section 108 Funds.''
    To receive points under this Factor, applications will have to 
exceed the 1:1 minimum ratio, and the higher the ratio the more points 
will be awarded, to the extent consistent with the points available for 
Rating Factor 4, paragraph (1). Because the proposed ratio of BEDI 
funds to Section 108 funds represents an applicant's financial 
commitment, HUD will condition the BEDI grant award on the grantee's 
achievement of that specific ratio. Its failure to meet that condition 
by obtaining timely HUD approval of a commitment for, and issuance of, 
the required Section 108 guaranteed obligations ratio may result in the 
cancellation and recapture of all or a proportionate share of the BEDI 
grant award.
    (2) HUD will cap BEDI awards at a maximum of $2 million per 
project. An application in excess of $2 million will be reduced to the 
extent HUD determines that such a reduction is appropriate.
    (3) After selection, but prior to grant award, if HUD determines 
that an application can be funded at a lesser BEDI grant amount than 
requested and still be feasible and consistent with the proposed plan 
and the purposes of the Act, it reserves the right to reduce the amount 
of the BEDI award and/or increase the required Section 108 loan 
guarantee commitment.
    (4) In the event a BEDI grant is awarded and has been reduced below 
the original request (e.g., the application contained some activities 
that were ineligible, exceeded the $2 million cap, or there were 
insufficient funds to fund the last competitive application at the full 
amount requested), the applicant will be required to modify the project 
plans and application to conform to the terms of HUD approval before 
HUD will execute a grant agreement.
    (5) HUD also may proportionately reduce or deobligate the BEDI 
award if a grantee does not submit an approvable Section 108 loan 
guarantee application, issue Section 108-guaranteed obligations and 
receive loan guarantee proceeds on a timely basis (including any 
extension authorized by HUD) in the amount required by the BEDI/108 
leveraging ratio, which will be approved by HUD as a special condition 
of the BEDI grant award (see Section IV (F) above of this program 
section of the SuperNOFA).
    (6) Any modifications or amendments to an application approved 
pursuant to this SuperNOFA, whether requested by the applicant or by 
HUD, must be within the scope of the approved original BEDI application 
in all respects material to rating the application, unless HUD 
determines that the revised application remains within the competitive 
range and is otherwise approvable under this SuperNOFA competition.
    (7) In the case of a requested increase in guarantee assistance for 
a project with a previously approved Section 108 loan guarantee 
commitment (as further discussed in Section IV (D)(1)(d), above), the 
BEDI assistance approved will be based on the increased amount of 
Section 108 loan guarantee assistance.
    (H) Timing of Grant Awards and Disbursements. (1) To the extent a 
full and complete Section 108 application is submitted with the BEDI 
grant application, HUD will evaluate the Section 108 application 
immediately following the competition for BEDI grant funds. Note that 
the 108 application must be submitted to the appropriate HUD field 
office concurrently with submission to Headquarters.
    (2) Notwithstanding any earlier obligation or award of BEDI funds 
to a grantee, or execution of a grant agreement, HUD will not permit 
the grantee to draw down BEDI funds before the issuance of the 
obligations evidencing the related Section 108 guaranteed loan.
    (3) Pursuant to the FY 2003 HUD Appropriations Act (under the 
``Brownfields Redevelopment'' heading) and 31 U.S.C. 1552(a), FY 2003 
BEDI funds must be obligated (i.e., awarded) by HUD by September 30, 
2004, and must be disbursed by HUD to the grantee by September 30, 
2009. FY 2002 BEDI funds must be obligated by September 30, 2003 and 
must be disbursed by HUD to the grantee by September 30, 2008. FY 2001 
BEDI funds are not subject to statutory obligation or disbursement 
deadlines. In all cases, however, HUD reserves the right to require 
earlier disbursement under a BEDI grant agreement.
    (I) Obligation to affirmatively further fair housing. All BEDI 
grantees are obliged to affirmatively further fair housing, even when 
the proposed activities do not appear to be directly related to 
housing. Therefore, applicants that propose to use BEDI funds must 
include in their applications an explanation of how they propose to 
further fair housing opportunities for persons on the basis of race, 
color, national origin, sex, religion, familial status, or disability. 
Applicants should respond to this requirement under Rating Factor 2, 
subfactor (2)(c). Affirmative activities include, but are not limited 
to: initial and periodic assessments of the extent to which affordable 
and accessible housing opportunities are provided or denied to persons 
by race, color, national origin, sex, religion, familial status, or 
disability; outreach to persons in underserved population groups or 
advocacy organizations representing such persons; affirmative fair 
marketing of job or housing opportunities; housing choice; addressing 
environmental justice concerns; or ensuring that employment, housing 
and other benefits of the BEDI grant are made available to those 
individuals and families living at or near the brownfields site prior 
to its redevelopment.

V. The Application Selection Process

(A) Rating and Ranking

    (1) Each rating factor and the maximum number of points are 
provided below. The maximum number of points to be awarded is 104. To 
be eligible for funding, a BEDI application must obtain a total score 
of at least 75 points. All applications meeting BEDI program and 
threshold requirements will be rated under the selection criteria 
below. Applications must include citations to the specific regulatory 
subsections supporting eligibility of activities and compliance with 
National Objectives. (See Section III (C) of this program section of 
this SuperNOFA). The applicant must also provide narrative statements 
in response to each of the rating factors below.
    (2) All applications meeting BEDI program and threshold 
requirements will be rated under the selection criteria below. 
Applications must include citations to the specific regulatory 
subsections supporting eligibility of activities and compliance with 
National Objectives. (See Section III (C) of this program section of 
the SuperNOFA). The applicant must also provide narrative statements in 
response to each of the rating factors below.
    Applications will be selected for funding as follows:
    (3) All BEDI grant applications that meet threshold requirements 
will be ranked separately in order of points assigned with the 
applications receiving more points ranked above those receiving fewer 
points.
    (4) In the event two or more applications are given the same score,

[[Page 21431]]

but there are insufficient funds to fund all of the tied applications, 
the application(s) with the highest score(s) on Rating Factor 3 
(Soundness of Approach) shall be selected. If there is still a tie, the 
following Factors will be considered sequentially, with the application 
having the high score on that Factor taking precedence until the tie is 
broken: Rating Factor 1 (Capacity and Experience), Rating Factor 2 
(Distress/Extent of the Problem), Rating Factor 4 (Leveraging 
Resources), and Rating Factor 5 (Achieving Results and Program 
Evaluation).
    (5) Fundable BEDI grant applications must meet the threshold 
requirements stipulated in Section V of the General Section of this 
SuperNOFA and be complete as required by the submission requirements of 
this program section of the SuperNOFA or they will not be ranked. 
Brownfields economic development projects will be funded in rank order 
until the total aggregate amount of the applications funded is equal to 
the maximum amount available in the competition (subject to the 
limitations described in Section IV(G) above).

(B) BEDI Narrative Statement

    (1) Applications must contain narrative statements printed in 12 
point type, with sequentially numbered pages for the entire 
application, including forms and exhibits. The BEDI narrative statement 
must not exceed three (3) 8.5'' by 11'' pages, doubled-spaced. The BEDI 
narrative statement should:
    (a) Describe the activities that will be carried out with the BEDI 
grant funds, and explain the nature and extent of the brownfields 
problem(s) affecting the site and/or structure(s) already on the site;
    (b) Describe how the proposed uses of BEDI funds will qualify as 
eligible activities under 24 CFR 570.703 and meet the National 
Objectives under 24 CFR 570.208 of the CDBG program. In describing how 
the proposed uses will meet the National Objectives of the CDBG program 
and the activity eligibility requirements of the Section 108 program, 
applications must also include citations to the specific regulatory 
subsections supporting eligibility of activities and compliance with 
National Objectives. (See Section III(C) of this program section of 
this SuperNOFA) and;
    (c) Indicate that: (i) the proposed assistance will not be used to 
provide funding to parties to remediate conditions caused by their own 
actions for which they have been determined to be legally responsible, 
as specified in Section IV(E)(3) of this program section; and (ii) that 
the proposed brownfields site is not ineligible as provided in Section 
IV(E)(4) of this program section.
    (2) The applicant must also provide in narrative form responses to 
each of the rating factors below.
    (C) Factors for Award Used to Evaluate and Rate Applications. HUD 
will evaluate all applications for funding assistance based on the 
following factors, the responses to which demonstrate the quality of 
the proposed project or activities, and the applicant's capacity and 
commitment to use the BEDI funds in accordance with the purposes of the 
Act.
    (D) Responses to Rating Factors 1-5. Responses to Rating Factors 1-
5 below shall not exceed fifteen (15) double-spaced pages combined.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points Maximum)

    This factor addresses the extent to which the applicant has the 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner. The rating of the ``applicant'' 
or the ``applicant's organization and staff'' will include any 
subcontractors, consultants, and sub-recipients that are firmly 
committed (see definition in Section III(A)(1) above) to participate in 
the activities described in the application. In responding to 
subfactors (1) and (2) of this Factor, applications that merely 
summarize the amount of funds received, spent or managed will receive 
fewer points than those providing specific measurable information on 
program activities undertaken, outcomes of these activities and their 
accomplishments. In rating this factor, HUD will consider the 
following:
    (1) Applicant Capacity (Up to 10 points). The applicant should 
demonstrate that it has the organization, the staff and the financial 
resources in place to implement the specific steps required to 
successfully carry out its proposed BEDI/Section 108 project. The 
applicant should offer evidence of this capacity through a description 
that includes:
    (a) Performance in the administration of its CDBG, HOME or other 
HUD programs, including a description of successfully completed 
projects and other outcomes or accomplishments under these programs;
    (b) Performance, if any, in carrying out economic development 
projects similar to that proposed, including brownfields economic 
development or redevelopment projects, if any, and if applicable, the 
ability to conduct prudent underwriting;
    (c) Ability to carry out projects and programs in a timely manner. 
An applicant must address its performance in spending previously 
awarded HUD and other funds, if any, in a timely manner, including, for 
CDBG entitlement recipients, the extent to which the CDBG entitlement 
recipient has met the HUD standard that the total amount of its 
undisbursed, entitlement grant funds may not be more than 1.5 times the 
entitlement grant amount for the current program year (see 24 CFR 
570.902(a)(1)(i));
    (d) If applicable because the applicant has such designation, the 
capacity to achieve state and local commitments, including maximizing 
the federal tax benefits made available as a result of a federal 
Renewal Community/Empowerment Zone/Enterprise Community designation 
(including Enhanced Enterprise Community (EEC) designation). Applicants 
that have been designated as a Renewal Community (RC), Empowerment Zone 
(EZ) or Enterprise Community (EC/EEC) must respond to this subfactor 
even if the proposed brownfields economic development project is not to 
be located within the boundaries of the designated RC/EZ/EC; and
    (e) An applicant that has previously received a BEDI or an EDI 
grant award or, within the past five years, a Section 108-guaranteed 
loan commitment, must describe the status of the implementation of 
those project(s) assisted with any BEDI or EDI funds or with any 
Section 108-guaranteed loan funds so approved within the last five 
years. An applicant must address any delays that have been encountered 
and the actions it is taking to overcome any such delays in carrying 
out the project(s) in a timely manner. For any such previously funded 
BEDI or EDI grant projects, or for those Section 108 guaranteed-loan 
projects committed within the past five years, HUD will award more 
rating points for applications providing evidence of achievement of 
specific measurable outcomes in carrying out approved activities funded 
with such guaranteed loan and/or grant funds.
    If any of the rating criteria listed under (a) through (e) above do 
not apply to an application, the rating for this subfactor (1) shall be 
based solely upon the other applicable criteria.
    (2) Partner Capacity (Up to 10 points). In response to this 
subfactor (2), the applicant should describe the experience and 
performance of subrecipients, private developers and other businesses, 
nonprofit organizations (including grassroots faith-based and other 
community-based

[[Page 21432]]

organizations), and other entities, if any, that have a role in 
implementing the proposed BEDI/108 program. Applicants are encouraged 
to identify specific economic development or other projects undertaken 
by each entity, which reflect the capacity of each entity to fulfill 
its responsibilities under the proposed brownfields economic 
development project, including the location, scale, and timeframe for 
completion of other relevant projects. If there are no third parties 
participating with the applicant in the proposed project, points under 
this subfactor (2) will be allocated under subfactor (1) and added to 
the maximum points possible under subfactor (1).
    Experience will be judged in terms of recent (i.e., within the past 
5 years) and successful performance of activities relevant to those 
proposed in the BEDI application. The more recent and extensive the 
experience is, the greater the number of points that will be awarded 
for this Factor.
    In addition to the application, HUD also may rely on information at 
hand or available from public sources such as newspapers, from 
performance and/or monitoring reports, Inspector General or Government 
Accounting Office reports or findings, hotline complaints that have 
been proven to have merit, audit reports and other reliable public 
information in rating this Factor.

Rating Factor 2: Distress/Extent of the Problem (20 Points Maximum)

    This Factor addresses the extent to which there is need for funding 
the proposed activities based on levels of distress in both the 
jurisdiction of the public entity that is the applicant and the 
geographic or target area that will benefit from the project. In 
responding to this Factor, applications will be evaluated on the extent 
to which the level of distress for the target area is documented and 
compared with national data and data for the jurisdiction.
    (1) In applying this Factor, HUD will consider current levels of 
distress defined in standard geographic terms in the target area, as 
defined by the applicant. This may be Census Tract(s) or Block Groups 
immediately surrounding the project site up to a radius of one-half 
mile; or it may be the target area proposed to be served by the 
project. HUD will also consider the current levels of distress in the 
applicant public entity's jurisdiction. The applicant should describe 
the nature of the distress that the project is designed to address and 
the rationale for its definition of the area to be benefited. Examples 
of project beneficiaries may include: (a) those receiving or using 
products or services produced by the project, and (b) those employed by 
the project.
    To the extent that the applicant's Consolidated Plan, its Analysis 
of Impediments to Fair Housing choice (AI), and/or its Anti-Poverty 
Strategy found therein identify the level of distress in the 
jurisdiction and the neighborhood in which the project is to be carried 
out, references to such documents should be included in preparing the 
response to this Factor. Applications that fail to reference these 
sources will receive fewer points under this Factor.
    Notwithstanding the above, an applicant proposing a project to be 
located outside the area for which benefit is claimed could still 
receive points under this Factor if a clear rationale is provided 
linking the proposed project location and the benefits to be derived by 
persons living in the target area.
    (2) Applicants should provide data that address the following 
specific indicators of distress:
    (a) Poverty Rate (Up to 5 points). Data should be provided in both 
absolute and percentage form (i.e., whole numbers and percents) for 
both the target area and the applicant's jurisdiction as a whole; an 
application that compares the local poverty rate in the following 
manner to the national average at the time of submission will receive 
points under this section as follows:
    (i) Less than the national average, but with a poverty rate in the 
target area that is greater than the applicant's jurisdiction: 2 
points;
    (ii) Equal to or greater than, but less than twice, the national 
average: 3 points;
    (iii) Equal to or greater than twice the national average: 5 
points.
    (b) Unemployment Rate (Up to 5 points). An application that 
compares the local unemployment rate for the applicant's jurisdiction 
and the target area in the following manner to the national average at 
the time of submission will receive points under this Section as 
follows:
    (i) Less that the national average, but with an unemployment rate 
in the target area that is greater than the applicant's jurisdiction: 2 
points;
    (ii) Equal to or greater than, but less than twice, the national 
average: 3 points;
    (iii) Equal to or greater than twice the national average: 5 
points.
    (c) Consolidated Plan and Analysis of Impediments to Fair Housing 
Choice (Up to 5 points). Describe any unmet needs as identified in the 
jurisdiction's Consolidated Plan and, pursuant to Section IV(I) of this 
program section of the SuperNOFA, any impediments to fair housing 
identified in the jurisdiction's Analysis of Impediments to Fair 
Housing Choice that will be directly addressed by the proposed project.
    (d) Other Indicators of Social and/or Economic Decline (Up to 5 
points). Applicants should provide other indicators of social or 
economic decline that best capture the applicant's local situation. 
Examples that could be provided under this section include information 
demonstrating the target area and the jurisdiction's stagnant or 
falling tax base, including recent (within the last three years) 
commercial or industrial closings, downturns or layoffs; housing 
conditions, such as the number and percentage of substandard and/or 
overcrowded units; rent burden (defined as average housing cost divided 
by average income) for both the target area and jurisdiction; local 
crime statistics. The response to this subfactor (d) should paint a 
portrait of the extent of need and distress in the target area and 
jurisdiction.
    HUD requires use of sound and reliable data (e.g., U.S. Census 
data, state statistical reports, university studies/reports that are 
verifiable) to support distress levels cited in each application. A 
source for all information along with the publication or origination 
date must also be provided. Updated Census data are available as 
follows for the listed indicators:
    Unemployment rate--estimated monthly for counties, with a two-month 
lag;
    Poverty rate--estimated every two years, with a three-year lag, 
with 2000 being the most recent available.
    In rating applications under this Factor, HUD reserves the right to 
consider sources of available objective data other than, or in addition 
to, those provided by applicants, in order to compare such data to 
those provided by applicants.

Rating Factor 3: Soundness of Approach (35 Points Maximum)

    This factor addresses the quality and cost-effectiveness of the 
proposed plan for the brownfields economic development project. 
Brownfields economic development projects that do not involve new 
investments by an identified private sector party and that do not 
result in near-term, measurable economic benefits, such as projects 
that involve only the preparation of a site for potential redevelopment 
by an unidentified party, or the capitalization of a loan pool for 
loans to unidentified borrowers, will receive fewer points

[[Page 21433]]

under this Factor. The relationship between the proposed eligible 
activities, community needs and purposes of the program funding must be 
clearly described, as set forth below, in order to receive points for 
this Factor. In rating this Factor, HUD will consider the following:
    (1) Consistency/Appropriateness of Proposed Activities with 
Identified Needs (Up to 8 points). The applicant should address the 
extent to which the proposed plan for use of BEDI grant/Section 108-
guaranteed loan funds will address the needs described in Rating Factor 
2 above, regarding the distress and extent of the problem in the target 
area or area to be benefited and the long-term benefit for current 
residents of the target area. The applicant should provide a clear and 
quantified explanation of this relationship. As part of the response to 
this Factor, an applicant should also fully describe:
    (a) How the project will achieve one of the National Objectives 
under the Community Development Block Grant program (see 24 CFR 
570.208) and the eligible activities that will be carried out under 24 
CFR 570.703, including citations to the specific regulatory subsections 
supporting eligibility of activities and compliance with National 
Objectives; and
    (b) How the project will address the following policy priorities:
    (i) For all BEDI projects, the extent to which the proposed project 
will improve the quality of life in the nation's communities, by 
bringing private capital to distressed communities; and
    (ii) For BEDI projects that include the construction or 
rehabilitation of housing:
    (A) The extent to which the project will increase affordable 
housing and homeownership opportunities for low- and moderate income 
persons, the disabled, the elderly, minorities and families where 
English may be the second language, whether through the provision of 
housing or employment which will enable residents to access affordable 
housing and have a choice of such housing in environmentally healthy 
and revitalized neighborhoods; and
    (B) The extent to which the project will encourage accessible 
design features for persons with disabilities.
    (2) Feasibility and Demonstrable Benefits (Up to 15 points). In 
responding to this subfactor (2), the applicant should demonstrate the 
extent to which the redevelopment plan for the brownfields site is 
logical, feasible and likely to achieve its stated purpose. Applicants 
are reminded that HUD's intention is to fund brownfields economic 
development projects and activities that will quickly produce 
measurable economic benefits and advance the purposes of the BEDI 
program. The applicant's response should demonstrate the extent to 
which the project is ``ready to go,'' meaning that the project is 
likely to be completed within three to five years from the date of the 
BEDI award and will produce near-term, measurable economic benefits. 
Points for this subfactor will be awarded in two parts, for the 
following:
    (a) Implementation Steps (Up to 8 points). The applicant's response 
should discuss the extent to which the redevelopment plan demonstrates 
a clear understanding of each of the steps required to implement the 
brownfields economic development project, including the actions that 
all parties responsible for implementing the project must complete. The 
applicant's response to this subfactor should address:
    (i) Environmental Investigation. This subfactor (i) will consider 
the extent to which the redevelopment plan takes into account 
environmental issues typical of many brownfields remediation efforts. 
Proposed projects on sites where the nature and degree of environmental 
contamination is not well-quantified, where no environmental 
investigation has commenced, or that are the subject of on-going 
litigation or environmental enforcement actions will receive fewer 
points under this subfactor (i). Similarly, fewer points will be 
awarded to proposed projects at sites with exceptionally expensive 
contamination problems that may be beyond the scope of the BEDI and 
Section 108 programs' financial resources or other resources firmly 
committed to the project as described in the application, and sites 
subject to pending and current litigation that may not be available for 
remediation and development or redevelopment in a time-frame that will 
produce near-term and measurable economic benefits through the use of 
BEDI and Section 108 funds.
    (ii) Site Control. This subfactor (ii) will consider the extent to 
which control of the proposed project site has been secured or is being 
sought.
    (iii) Regulatory and Other Approvals. This subfactor (iii) will 
consider the extent to which any required zoning classifications, 
environmental regulatory approvals, waivers, general and special use 
permits, assessment district designations, public easements or rights-
of-way have been secured or are being sought.
    (iv) User Agreements. This subfactor (iv) will consider the extent 
to which any development agreements, leases, memoranda of understanding 
or other agreements integral to the success of the project have been 
secured or are being sought.
    (b) Timing and Delivery of Project Benefits (Up to 7 points). The 
applicant's response should set forth the strategy and schedule for the 
delivery of the project's measurable economic benefits.
    (i) Project Benefits. The response to this subfactor (i) should 
include a full description of the problem (e.g., the extent of 
environmental contamination, the need for jobs, the shortage of 
affordable housing, etc.) and the measurable economic benefits that 
will accrue from the project (e.g. the number of permanent jobs, the 
amount of commercial or industrial space to be created, the number of 
housing units to be provided, etc.). The response to this subfactor (i) 
must also include the time frame in which the measurable economic 
benefits are to be delivered. For multi-phase projects, the response to 
this Factor must clearly delineate the different phases of the project 
and indicate whether or not they are to be funded by BEDI/Section 108 
funds. Brownfields economic development projects that provide near-
term, measurable economic benefits directly through the creation or 
retention of jobs will receive a greater number of points under this 
subfactor (i). BEDI projects that utilize innovative construction 
techniques, technologies or other strategies in order to achieve 
increased energy efficiency will also receive a greater number of 
points under this subfactor (i).
    (ii) Project Schedule. The applicant should provide a specific time 
schedule (with both beginning and end dates) for carrying out the 
project and identify interim measurable benchmarks (acquisition, site 
improvements, construction, etc.) to be accomplished. The applicant 
should also include a proposed schedule for drawing down all funds 
necessary to complete the project, including BEDI and Section 108 
funds.
    A timeline form is provided in Appendix A to this program section 
of the NOFA for the purpose of illustrating the project schedule, but 
HUD will consider the timeline form only as an illustration of the 
narrative response to this subfactor (ii).
    (3) Section 108 Application (Up to 2 points). BEDI applications 
accompanied by a full and complete Section 108 application will receive 
up to two (2) points for this subfactor (3). BEDI applications 
accompanied by a copy of

[[Page 21434]]

a currently pending but unapproved Section 108 loan guarantee 
application for the same project described in the BEDI application will 
also receive up to two (2) points under this subfactor (3).
    (4) Financial Feasibility/Need (Up to 10 points). The applicant 
should demonstrate the extent to which the project is financially 
feasible based on its proposed use of BEDI and Section 108 funds. In 
responding to this subfactor (4), applicants are encouraged to 
accompany their narrative response, as appropriate, with a development 
and operating pro forma or similar analysis of the proposed project 
financing. Such pro forma or other financial analysis will not be 
counted in the fifteen page limitation on the narrative response to the 
Rating Factors as provided in Section V (D) of this program section. In 
the narrative response, applicants must clearly address the question of 
why the BEDI funds are critical to the success of this project by 
providing the following items, as applicable:
    (a) Project Costs and Financial Requirements. A funding sources and 
uses statement should be provided that specifies the source of funds 
for each identified use or activity, along with the derivation of 
project costs;
    (b) Use of BEDI and Section 108 Funds. The applicant should discuss 
the critical gaps that exist in the financing of the proposed project, 
why those gaps exist and how the BEDI and Section 108 funds will be 
used to fill those gaps; and
    (c) Funding Criteria. The applicant should describe the criteria 
used for determining funding need and feasibility.

Rating Factor 4: Leveraging Resources (15 Points Maximum)

    In evaluating this factor, HUD will consider the extent to which 
the response demonstrates the likelihood that the project will leverage 
both Section 108 loan and other public or private funds as part of the 
total project resources. This factor has two subfactors, each with its 
own maximum point total:
    (1) Leverage of Section 108 funds (Up to 8 points).
    The minimum ratio of Section 108 funds to BEDI funds in any project 
may not be less than 1:1. Points will be awarded based upon the extent 
to which the proposed project leverages an amount of Section 108 funds 
greater than a 1:1 ratio. If the application has a ratio of 1:1, it 
will not receive any points under this subfactor. The higher the ratio 
of additional new Section 108 funds to BEDI funds proposed in an 
application, the more points it will receive under this subfactor, 
within the points available hereunder. (See Section IV (G)(1) and (5) 
of this program section of the SuperNOFA regarding the conditioning of 
BEDI awards on achievement of a specific BEDI/Section 108 leveraging 
ratio.)
    (2) Leverage of Other Financial Resources (Up to 7 points).
    HUD will evaluate the extent to which other funds (public or 
private) are leveraged by BEDI grant funds, and the extent to which 
such other funds are firmly committed to the project. This could 
include the use of CDBG funds, other federal or state grants or loans, 
local general funds, project equity or commercial financing provided by 
private sources or funds from non-profits or other sources. Funds will 
be considered committed to the project if they meet the definition of 
``Firm Commitment'' found in Section III(A)(1) above, and may be 
subject to completion of any environmental review required under 24 CFR 
part 58 for the project. In order for an applicant's commitment of CDBG 
funds to be accepted by HUD as additional financing for a project, a 
resolution from the local governing body (e.g., city/borough council) 
authorizing the amount and permitted use(s) of the funds must be 
provided. Additionally, with respect to all commitments, in order for a 
commitment to receive points under this Factor--such as a commitment to 
donate or purchase real property or to provide in-kind services--the 
party making the commitment must assign a monetary value to the 
commitment and provide the basis for that value.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points 
Maximum)

    This factor emphasizes HUD's commitment to ensuring that applicants 
maintain commitments made in their application and assess their 
performance to ensure that performance goals are met. The applicant's 
response to this Factor should identify: (1) Project outcomes for the 
proposed BEDI project; (2) interim benchmarks of the project; and (3) 
performance indicators that will allow the applicant to measure its 
performance in achieving the identified interim benchmarks and the 
project outcomes. Achieving results means that the applicant has 
clearly identified the outcomes of the brownfields economic development 
project, i.e., the measurable economic benefits to be achieved. The 
applicant must also identify the interim benchmarks that will lead to 
the achievement of the project outcomes. The performance indicators 
selected by the applicant to measure performance should be objectively 
quantifiable and measure actual achievements against anticipated 
achievements. The response to this Factor should identify what will be 
measured, how it will be measured, and the procedures that are in place 
to make adjustments if performance targets for the interim benchmarks 
or the project outcomes are not met within established timeframes. BEDI 
grant agreements will provide for a periodic report by the grantee on 
the progress of the grantee in achieving the interim benchmarks and 
project outcomes of the BEDI project, until such time as the project 
outcomes are achieved.
    In response to this Factor, applicants are encouraged to address 
any of the following applicable outcomes or ultimate goals identified 
by HUD for BEDI projects: The number of jobs to be created or retained; 
the amount of increased wages resulting from the creation or retention 
of jobs; the number of housing units to be constructed or 
rehabilitated; the total square feet of commercial and industrial space 
to be created; the total number of low- and moderate-income persons to 
benefit from the project; the total number of businesses assisted by 
the project; the number of acres of brownfields returned to productive 
economic use; and any increased land value as a result of the BEDI 
project. Applicants may also propose alternative or additional outcomes 
or goals related to other benefits expected for the neighborhood or for 
persons assisted, as part of the evaluation plan. A logic model is 
provided in the General Section of the SuperNOFA for the purpose of 
illustrating the evaluation plan, but HUD will consider the logic model 
only as an illustration of the narrative response to this Factor.

Bonus Points

    An application may receive up to four (4) bonus points, until the 
maximum of four points are achieved. Two bonus points may be awarded 
for each of the following:
    (a) Projects that are located either in federally-designated 
Empowerment Zones, Enterprise or Renewal Communities, or Strategic 
Planning Communities (See Section VI (C)(2) of the General Section of 
the SuperNOFA) for advice on locating a list of designated 
communities);
    (b) Projects that are located in Brownfields Showcase Communities 
designated by EPA. A list of the federally designated Brownfield 
Showcase Communities is listed in Appendix B of this program section of 
the SuperNOFA and is also available from the SuperNOFA Information

[[Page 21435]]

Center or through the HUD Web site, http://www.hud.gov.

VI. Application Submission Requirements

    (A) BEDI Funding. An application for a BEDI grant under this 
program section of the SuperNOFA must have the following items listed 
in this Section VI to be complete. The standard forms, certifications 
and assurances that are required for the BEDI application (and listed 
in paragraph (I) below) can be found in Appendix B to the General 
Section. The remaining application items that are forms (i.e., 
excluding such items as narratives or letters, etc.), referred to as 
the ``non-standard forms'', can be found in Appendix A to this program 
section of the SuperNOFA.
    (B) Transmittal Letter signed by the authorized representative of 
the eligible applicant indicating that it is submitting the application 
for funding under the Brownfields Economic Development Initiative 
Program and is requesting funding consideration for a BEDI project.
    (C) Checklist and Submission Table of Contents indicating the page 
numbers where the submission items can be found in the application 
(form HUD-40076-A EDI/BEDI).
    (D) BEDI Narrative Statement (not to exceed 3 pages) describing 
BEDI-funded eligible activities within the proposed project and 
indicating that funding will not be used for a prohibited purpose and 
that the proposed site for the project is not ineligible under the BEDI 
program. (See Section V (B) of this program section.)
    (E) EDI/BEDI/Section 108 Funding Eligibility Statement. A completed 
EDI/BEDI Section 108 Funding Eligibility Statement (form HUD-40076-E 
EDI/BEDI).
    (F) Request for Loan Guarantee Assistance. A request for loan 
guarantee assistance under Section 108, as further described in Section 
IV (D) of this program section of the SuperNOFA. Full application 
guidelines for the Section 108 program are found at 24 CFR 570.704.
    (G) Narrative Responses to Factors for Award (not to exceed 15 
pages overall):
    (1) Rating Factor 1: Capacity and Relevant Organizational 
Experience. Provide a narrative indicating the capacity of the 
applicant's organization and staff and any third parties to perform the 
work for which it is requesting funding.
    (2) Rating Factor 2: Need Statement Identifying the level of 
Distress/Extent of the Problem. Provide a narrative statement including 
any documentation supporting the statement of need, accompanied by a 
completed form HUD-40076-B EDI/BEDI.
    (3) Rating Factor 3: Soundness of Approach. Include the activities, 
budget and time frame for conducting activities and providing project 
benefits in the narrative response, accompanied by form HUD 40076-C 
EDI/BEDI.
    (4) Rating Factor 4: Leveraging Resources. The response must 
include a completed copy of form HUD-40076-D EDI/BEDI, ``Rating Factor 
4: Leveraging Resources--Sources and Uses Statement,'' accompanied by 
any letters of firm commitment as defined in Section III (A)(1) of this 
program section.
    (5) Rating Factor 5: Achieving Results and Program Evaluation: 
Provide a narrative response to this factor, accompanied by the logic 
model provided in the General Section of the SuperNOFA.
    (H) Request for Funds. A single application must contain a request 
for funds for a single BEDI/108 project. An applicant may submit an 
additional application for each additional unrelated BEDI/108 project, 
but in no event will HUD rate and rank more than one BEDI project per 
application.
    (I) Additional Application Forms and Certifications. In addition to 
any forms that have been submitted in response to Section VI (A) 
through (H) above (which may be found at Appendix A), the following 
forms and certifications must also be submitted in accordance with 
Section V (H) of the General Section of this SuperNOFA:
    (1) Application for Federal Assistance (HUD-424);
    (2) Federal Assistance Funding Matrix (HUD 424-M);
    (3) Standard Form for Assurances--Non-Construction Programs (HUD 
424-B) and/or Standard Form for Assurances--Construction Programs (SF 
424-D): not required for BEDI applications since the ``Leveraging 
Resources--Sources and Uses Statement'' serves the same purpose as a 
budget form, but must be submitted with the Section 108 application. 
Since these forms contain assurances of compliance with civil rights 
and other regulatory requirements, BEDI applicants may elect to provide 
the signed assurances either with the BEDI or the Section 108 
application, if the latter is submitted with the BEDI application.
    (4) Applicant/Recipient Disclosure/Update Report, HUD-2880;
    (5) Certification of Consistency With EZ/EC Strategic Plan, HUD-
2990.
    These forms are found in the Appendix B to the General Section of 
this SuperNOFA.
    The non-standard forms for the BEDI applications are in Appendix A 
to this program section.
    If an applicant wishes to receive an acknowledgment of HUD's 
receipt of its application, it should submit a completed Acknowledgment 
of Receipt of Application form.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    (A) Environmental Reviews. After the completion of this competition 
and after HUD's award of BEDI grant funds, pursuant to 24 CFR 570.604, 
each project or activity assisted under this program is subject to the 
provisions of 24 CFR part 58, including limitations on the BEDI grantee 
and Section 108 public entity's commitment of HUD and non-HUD funds 
prior to the completion of environmental review, notification and 
release of funds. No such assistance will be released by HUD until a 
request for release of funds is submitted and the requirements of 24 
CFR part 58 have been met. All public entities, including non-
entitlement public entities, shall submit the request for release of 
funds and related certification, required pursuant to 24 CFR part 58, 
to the appropriate HUD field office for each project to be assisted.
    (B) Environmental Justice. (1) Executive Order 12898 (Federal 
Actions to Address Environmental Justice in Minority Populations and 
Low-Income Populations) directs federal agencies to develop strategies 
to address environmental justice. Environmental justice seeks to 
rectify the disproportionately high burden of environmental pollution 
that is often borne by low-income, minority, and other disadvantaged 
communities, and to ensure community involvement in policies and 
programs addressing this issue.
    (2) Brownfields are often located in distressed neighborhoods, 
contribute to neighborhood blight, and lower the quality of social, 
economic, and environmental health of communities. The BEDI program is 
intended to promote the clean up and redevelopment of brownfields sites 
and HUD expects that projects presented for BEDI funding will integrate 
environmental justice concerns and provide measurable economic benefits 
for affected communities and their current residents for the long term.

[[Page 21436]]

IX. Authority

    Section 108(q), Title I, Housing and Community Development Act of 
1974, as amended, (42 U.S.C. 5301); 24 CFR part 570.
    Appendices. Appendix A, the non-standard forms for the BEDI 
application, and Appendix B, a listing of federally designated 
Brownfields Showcase Communities, follow.

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Appendix B

Federally Designated Brownfields Showcase Communities

The following lists Federally Designated Brownfield Showcase 
Communities:

(1) Baltimore, Maryland
(2) Cape Charles/Northhampton County, Virginia
(3) Chicago, Illinois
(4) Dallas, Texas
(5) Denver, Colorado
(6) Des Moines, Iowa
(7) East Palo Alto, California
(8) Eastward Ho (Consortium), Florida
(8) Gila River Indian Community, Arizona
(9) Glen Cove, New York
(10) Houston, Texas
(11) Jackson, Mississippi
(12) Kansas City, Kansas/Missouri
(13) Los Angeles, California
(14) Lowell, Massachusetts
(15) Metlakatla Indian Community, Alaska
(16) Milwaukee, Wisconsin
(17) Mystic Valley Development Commission, Massachusetts (Cities of 
Everett, Malden and Medford)
(18) New Bedford, Massachusetts
(19) Niagara Region, New York (Cities of Buffalo, Niagara Falls, 
Counties of Niagara and Erie)
(20) Portland, Oregon
(21) State of Rhode Island
(22) St. Louis, Missouri/East St. Louis, Illinois
(23) St. Paul, Minnesota
(24) Salt Lake City, Utah
(25) Seattle/King County, Washington
(26) Stamford, Connecticut
(27) Trenton, New Jersey

BILLING CODE 4210-32-P

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[[Page 21447]]



Funding Availability for Self-Help Homeownership Opportunity Program 
(Shop)

Program Overview

    Purpose of the Program. To facilitate and encourage innovative 
homeownership opportunities through self-help housing where the 
homebuyer contributes a significant amount of sweat-equity toward the 
construction of the new dwelling.
    Available Funds. $25,085,875 in Fiscal Year 2003 funds.
    Eligible Applicants. You must be a national or regional nonprofit 
organization or consortium.
    Application Deadline. July 3, 2003.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information:

I. Application Due Date, Standard Forms, Further Information, and 
Technical Assistance

    Application Due Date. Applications for SHOP grants are due on or 
before July 3, 2003.
    Application Submission Procedures. Applicants must follow the 
specific Mailing and Receipt Procedures and Proof of Timely Submission 
located in the General Section of this SuperNOFA.
    Address for Submitting Applications. Submit one original and two 
copies of the application to Department of Housing and Urban 
Development, Office of Community Planning and Development, Processing 
and Control Unit, 451 Seventh Street, SW, Room 7251, Washington, DC 
20410, ATTN: Self-Help Homeownership Opportunity Program (SHOP).
    For Application Forms. Only national and regional nonprofit 
organizations and consortia are eligible to apply for SHOP funding 
under this NOFA. This notice contains all the information necessary for 
submission of your application. Consequently, there is no separate 
application kit. Copies of the standard forms are located in the 
General Section of this SuperNOFA or you may request copies by calling 
HUD's SuperNOFA Information Center at: 1-800-HUD-8929. If you have a 
hearing or speech impairment, please call the Center's TTY number at 1-
800-HUD-2209. When requesting standard forms, you should refer to SHOP 
and provide your name and address (including zip code) and telephone 
number (including area code). See Section VI for application submission 
requirements. You may also access the application requirements on the 
Internet through HUD's Web site at http://www.hud.gov/grants.
    Further Information and Technical Assistance. You may contact Ms. 
Lou Thompson, Office of Affordable Housing Programs, Department of 
Housing and Urban Development, Room 7164, 451 Seventh Street, SW., 
Washington, DC 20410; telephone (202) 708-2684, ext. 4594 (this is not 
a toll-free number). This number can be accessed via TTY by calling the 
Federal Information Relay Service Operator at 1-800-877-8339.
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of the application. For more information about the date and 
time of the broadcast, you should consult the HUD Web site at http://www.hud.gov/grants.

II. Amount Allocated

    The amount available for this program is $25,085,875.00 in Fiscal 
Year 2003 Funds. Any unobligated funds from previous competitions or 
additional funds that may become available, as a result of deobligation 
or recaptures from previous awards or budget transfers, may be used in 
addition to the Fiscal Year 2003 appropriation to fund applications 
submitted in response to this NOFA.

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. SHOP funding is intended to facilitate and 
encourage innovative homeownership opportunities on a national 
geographically-diverse basis through self-help housing where the 
homebuyer contributes a significant amount of sweat-equity toward the 
construction or rehabilitation of the dwelling.
    Decent, safe, and sanitary non-luxury dwellings developed under 
SHOP must be made available to eligible homebuyers at prices below the 
prevailing market prices. Eligible homebuyers are low-income 
individuals and families (i.e., those whose annual incomes do not 
exceed 80 percent of the median income for the area, as established by 
HUD) who are unable to purchase a dwelling. Housing assisted under this 
Notice must involve community participation in the form of labor 
contributed by homebuyers and, if the program permits them, volunteers 
in the construction of dwellings and by other activities that involve 
the community in the project.
    (B) Eligible Applicants. You must be a national or regional 
nonprofit public or private organization or consortium that has the 
capacity and experience to provide or facilitate self-help housing 
homeownership opportunities. Your organization or consortium must 
undertake eligible SHOP activities directly and/or provide assistance 
to your local affiliates. Your organization or consortium must 
undertake eligible SHOP activities directly and/or provide assistance 
to your local affiliates.
    ``Regional'' is defined for the purpose of this program to be an 
area such as the Southwest or Northeast that must include at least two 
states. The states in the region need not be contiguous and the 
operational boundaries of the organization need not precisely conform 
to state boundaries.
    ``Consortium'' for the purposes of SHOP is defined as two or more 
nonprofit organizations that individually have the capacity and 
experience to provide or facilitate self-help housing and come together 
to submit a single application for SHOP funding on a national or 
regional basis. If you are a consortium, an agreement must be executed 
by all consortium members forming the consortium for the purpose of 
applying for and using FY 2003 SHOP funds before the application is 
submitted to HUD. The consortium agreement must be submitted as part of 
your application. All consortium members must be identified in your 
application. Your application must be submitted as one integrated 
document that demonstrates the consortium's comprehensive approach to 
self-help housing. However, the application must describe the program 
design of each consortium member if they are different from one 
another. One organization must be chosen as the lead entity. The lead 
entity must submit the application and, if selected for funding, will 
execute the grant agreement with HUD and assume responsibility for 
carrying out grant activities in compliance with all program 
requirements. If funded, the lead entity must enter into a separate 
agreement with each consortium member that incorporates the 
requirements of the Grant Agreement between HUD and the consortium and 
outlines the individual consortium member's responsibilities for 
compliance with SHOP.
    ``Affiliate'' is defined for the purpose of this program to be:
    (i) A local self-help housing organization which is a subordinate 
organization (i.e., chapter, local, post, or unit) of a central 
organization and which is covered by the group exemption letter issued 
to the central organization under section 501(c)(3) of the Internal 
Revenue Code;

[[Page 21448]]

    (ii) A local self-help housing organization with which the 
applicant has an existing relationship, e.g., the applicant has 
provided technical assistance or funding to the local self-help housing 
organization; or
    (iii) A local self-help housing organization with which the 
applicant does not have an existing relationship, but to which the 
applicant will provide necessary technical assistance and mentoring as 
part of funding under the application.
    Your application may not propose to fund any affiliate or 
consortium member that is also included in another SHOP application. 
You must ensure that any affiliate or consortium member under your FY 
2003 application is not also seeking funding from another SHOP 
applicant for FY 2003 funds. If they apply under more than one national 
or regional organization or consortium, they may be disqualified for 
any funding.
    (C) Eligible Activities. The only eligible activities are:
    (1) Land acquisition (including financing and closing costs), which 
may include reimbursing an organization, consortium, or affiliate, upon 
approval of any required environmental review, for non-grant amounts of 
the organization, consortium, or affiliate advanced to acquire land 
before completion of the review;
    (2) Infrastructure improvements (installing, extending, 
constructing, rehabilitating, or otherwise improving utilities and 
other infrastructure, including removal of environmental hazards); and
    (3) Administration, planning and management development shall not 
exceed 20 percent of any SHOP grant. Administrative costs are the costs 
of general management, oversight and coordination of the SHOP grant; 
staff and overhead costs of the SHOP grant; costs of providing 
information to the public about the SHOP grant; cost of affirmatively 
furthering fair housing; and indirect costs (such as rent and 
utilities) of the grantee or affiliate in carrying out the SHOP 
activities. Indirect costs may only be charged to the SHOP grant under 
a cost allocation plan prepared in accordance with OMB Circular A-122. 
Funds may be used for both single-family and multifamily dwellings.
    (D) Ineligible Costs: Costs associated with the rehabilitation, 
improvement, or construction of dwellings are not eligible uses of 
program funds.

IV. Program Requirements

    In addition to the statutory, regulatory, threshold and public 
policy requirements listed in Section V of the General Section of this 
SuperNOFA, each applicant must meet and comply with the following SHOP 
statutory, threshold, and other program requirements:

(A) Threshold Requirements

    (1) You, the applicant, must be eligible to apply under SHOP (see 
Section III(B) of this program section of the SuperNOFA).
    (2) The amount of funding you request must support no less than 30 
self-help units and may not exceed an average investment of $10,000 per 
unit in SHOP funding.
    (3) The population you plan to serve must be eligible under SHOP. 
Eligible homebuyers are low-income individuals and families (i.e., 
those whose incomes do not exceed 80 percent of the median income for 
the area, as established by HUD).
    (4) You must demonstrate that you have successfully completed at 
least 30 self-help homeownership units within a national or regional 
area in which the homebuyers contributed a significant amount of sweat-
equity, and, if your program permitted it, volunteer labor was used 
toward the construction of the dwellings within the 24-month period 
immediately preceding the publication of this SuperNOFA.
    (5) Your program must require homebuyers to contribute a minimum of 
200 hours of sweat equity on the construction of their own homes. This 
excludes the contribution of volunteer labor, except for assistance for 
homebuyers with disabilities.
Submission Threshold Requirements
    (1) Evidence of your public or private non-profit status, such as a 
copy of a current Internal Revenue Service ruling that your 
organization is exempt from taxation under section 501(c)(3) or 
501(c)(4) of the Internal Revenue Code of 1986. Where an IRS ruling is 
unavailable, you may submit a certified copy of your approved charter, 
articles of incorporation or bylaws demonstrating that you are 
established as a nonprofit organization under state law. If you are a 
consortium, each participant in your consortium must be a nonprofit 
organization. Each consortium member must submit evidence of its 
nonprofit status to the lead entity for inclusion in the consortium's 
application package.
    Threshold requirements (2) through (5) require no separate 
submissions. In order for the application to be rated and ranked, these 
requirements must be addressed under the submission requirements for 
the rating factors listed in Section V(D) of this program section of 
this SHOP NOFA below.
    (B) Statutory and Program Requirements. This program does not have 
regulations. You must comply with all statutory requirements applicable 
to the SHOP program as cited in Section X, Authority, of this SHOP 
program section and program requirements cited in this program section 
of the SuperNOFA. Pursuant to these requirements, you must:
    (1) Develop, through significant amounts of sweat-equity by each 
homebuyer and any additional volunteer labor, at least 30 dwelling 
units at an average cost of no more than $10,000 per unit in SHOP funds 
for land acquisition and infrastructure improvements;
    (2) Use your grant to leverage other sources of funding, including 
private or other public funds, to complete construction of the housing 
units;
    (3) Develop quality dwellings that comply with local building and 
safety codes and standards, that will be made available to homebuyers 
at prices below the prevailing market price;
    (4) Schedule activities to expend all grant funds awarded and 
substantially fulfill your obligations under your grant agreement, 
including timely development of the appropriate number of dwelling 
units. Grant funds must be expended within 24 months of the date that 
grant funds are first made available for drawdown under a line of 
credit established by HUD for the Grantee, except that grant funds 
provided to affiliates that develop five or more units must be expended 
within 36 months; and
    (5) Not require a homebuyer to make an up-front financial 
contribution to a unit other than cash contributed for down payment or 
closing costs at the time of acquisition.

V. Application Selection Process

    (A) Rating. HUD will review all applications in accordance with the 
Application Selection Process in Section VI of the General Section of 
this SuperNOFA and in this SHOP program section of the SuperNOFA. HUD 
will review all applications based on the threshold factors listed in 
Section IV of this program section. Applications that meet all 
threshold requirements will be rated according to the selection factors 
in this program section of the SuperNOFA. Applications that do not meet 
all threshold factors will be rejected and not rated.
    (B) Ranking and Selection Procedures. Applications that receive a 
total rating of 75 points or more (without the addition of Empowerment 
Zones/

[[Page 21449]]

Enterprise Communities/Urban Enhanced Enterprise Communities/Strategic 
Planning Communities, or Renewal Communities [RC/EZ/ECs] bonus points) 
will be eligible for selection, and HUD will place them in rank order. 
After adding any bonus points for RC/EZ/ECs, HUD will consider rank 
order, funds availability, and past performance in the selection and 
funding of applications. HUD reserves the right to:
    (1) Fund less than the amount requested by any applicant based on 
the application's rank, the applicant's past performance, and the 
amount of funds requested relative to the total amount of available 
funds; and
    (2) Fund less than the full amount requested by any applicant to 
ensure a fair distribution of the funds and the development of housing 
on a national, geographically-diverse basis as required by the statute; 
and/or
    (3) Not award funds to an applicant with significant performance 
problems.
    HUD will not fund any portion of an application that is ineligible 
for funding under program statutory requirements, or which does not 
meet the requirements of the General Section of this SuperNOFA or the 
requirements in this SHOP section of the SuperNOFA. The minimum grant 
award shall be the amount necessary to complete at least 30 units at an 
average investment of not more than $10,000 per unit or a lesser amount 
if lower costs are reflected in the application. If any funds remain 
after all selections have been made, these funds may be available for 
other competitions.
    (C) Applicant Debriefing. In accordance with the requirements of 
Section XI(A)(4) of the General Section of this SuperNOFA, applicants 
requesting to be debriefed must send a written request to Ms. Lou 
Thompson, Office of Affordable Housing Programs, Department of Housing 
and Urban Development, Room 7164, 451 Seventh Street, SW, Washington, 
DC 20410.
    (D) Factors for Award Used to Evaluate Applications. HUD will rate 
all SHOP applications that successfully complete technical processing 
using the Rating Factors and the Application Submission Requirements 
described below. The maximum number of points for this program is 102. 
This includes two RC/EZ/EC bonus points, as described in Section 
III(C)(1) of the General Section of the SuperNOFA. In evaluating 
applications for funding, HUD will take into account an applicant's 
past performance in managing funds, including accounting for funds 
appropriately, the timely use of funds received from HUD, meeting 
performance targets for completion of activities, and the number of 
persons served.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (20 Points)

    This factor examines the extent to which you, as a single applicant 
or as a consortium (including individual consortium members), have the 
experience and organizational resources necessary to carry out the 
proposed activities in a timely manner.
    In evaluating this factor, HUD will consider your recent and 
relevant experience in carrying out the activities you propose, and 
your administrative and fiscal management capability to administer the 
grant, including the ability to account for funds appropriately. All 
applicants, including individual consortium members, must have capacity 
and experience in administering or facilitating self-help housing. If 
you are sponsoring affiliate organizations that do not have a history 
of developing self-help housing, HUD will assess your organization's 
experience in providing technical assistance and the ability to mentor 
new affiliates. HUD will assess your organization's past performance 
based upon performance reports submitted for completion of eligible 
activities and the number of households/families provided housing, 
financial status information focusing on expediency of draws and use of 
funds, monitoring reports, audit reports and other information 
available to HUD in making its determination under this factor. If you 
are not a current recipient of HUD funds, you should submit any 
existing internal or external performance reports or other information 
that will assist HUD in making this determination.

Submission Requirements for Rating Factor 1

    (1) (7 points) You must describe your past experience in carrying 
out self-help housing activities (specify the time frame when these 
activities occurred) that are the same as, or similar to, the 
activities you propose for funding, and demonstrate reasonable success 
in carrying out and completing those activities. You must include the 
average number of sweat equity hours provided per family, and volunteer 
labor, if your program permitted it. You may demonstrate reasonable 
success by showing that your previous activities were carried out as 
proposed consistent with the time frame you proposed for completion of 
all work. You must show that established benchmarks for acquiring 
properties and completing housing construction were met and performance 
reports were submitted, as required. You must also describe any 
obstacles and/or delays that were encountered, and the actions taken to 
overcome them to successfully complete your program.
    (2) (7 points) You must provide a description of your 
organization's or consortium's management structure. You must also 
describe the key staff and their roles and responsibilities for day-to-
day management of your proposed SHOP program and activities within the 
organization or consortium if funds are awarded. If you elect to work 
with affiliates that do not have capacity and experience, you must 
state how you will provide technical assistance and mentor these 
organizations to develop capacity either directly or indirectly.
    (3) (4 points) You must demonstrate your organization's ability to 
handle financial resources with adequate financial control and 
accounting procedures. You must describe your financial control 
procedures for SHOP and how they meet 24 CFR 84.21, ``Standards for 
Financial Management Systems.'' You are requested to submit a copy of 
your most recent audit if one is required to be performed for your 
organization. Only an audit of the lead entity would need to be 
provided with an application for a consortium.
    (4) (2 points) You must demonstrate your experience and ability in 
constructing and altering homes by describing the kinds of features 
that you have used to design homes in accordance with universal design 
or otherwise make homes accessible to the elderly or persons with 
disabilities. You must provide data on the number of units and the 
timeframe in which units were constructed and/or altered.

Rating Factor 2: Need/Extent of the Problem (15 Points)

    This factor examines the extent to which you identify the housing 
need, or problems in the areas that your proposed activities will 
target, and the urgency of meeting that need.
    The purpose of this factor is to make sure that funding is provided 
where a need for funding exists. Under this factor, you must identify 
the need or needs in the community that your proposed SHOP activities 
are designed to address or, if you plan to select specific affiliates 
only after you receive SHOP funding, you must demonstrate how you plan 
to identify need prior to your selection of affiliates.

[[Page 21450]]

Submission Requirements for Rating Factor 2

Extent of Need
    (1) (7 points) Identify the extent of need for SHOP funds in all 
communities or areas in which your proposed activities will be carried 
out or describe the specific criteria you will use to select 
communities or projects based on need after you have received an award 
under SHOP. National and regional organizations and consortia that 
select affiliates after grant award must submit a listing of affiliates 
surveyed on which they are projecting their need for SHOP funding.
Quality of Documentation
    (2) The kind of information you submit to demonstrate the need or 
needs in the target areas may include, but is not limited to, the 
following:
    (a) (6 points) Quality of data demonstrating:
    (i) Housing market data such as information included in the local 
Five-Year Consolidated Plan or other data sources, such as local tax 
assessor databases or relevant realtor information.
    (ii) Data dealing with such factors as housing density, housing 
affordability, housing age or deterioration, homeownership rate 
(especially minority) and lack of adequate infrastructure or utilities.
    (b) (2 points) Quality of data demonstrating:
    (i) Need for accessible homes in the area.
    (ii) Evidence of housing discrimination.
    (iii) Evidence from the local Analysis of Impediments to Fair 
Housing Choice that shows the need for this program.
    Applicants will receive higher scores both for the level of need 
documented and for the quality of documentation.

Rating Factor 3: Soundness of Approach (40 points)

    This factor examines the quality of your plan of proposed 
activities. In evaluating this factor HUD will consider:
    (1) Your specific use of SHOP funds, the number of units and the 
type(s) of housing to be constructed, the use of sweat equity/volunteer 
labor; your established timeline for performance; your schedule for 
expending funds and completing construction; the proposed budget and 
cost effectiveness of your program; and your plans to reach all 
potentially-eligible homebuyers, including those with disabilities or 
least likely to apply.
    (2) How your planned activities further the Department's FY 2003 
policy priorities noted in Section II of the General Section. You will 
receive one rating point for each priority your program will address 
and associated with performance measures. For FY 2003, HUD's policy 
priorities that apply to the SHOP program are:
    (a) Providing increased homeownership and rental opportunities for 
low- and moderate-income persons, persons with disabilities, the 
elderly, minorities, and families with limited English proficiency.
    (b) Improving our Nation's communities.
    (c) Encouraging accessible design features: visitability in new 
construction and substantial rehabilitation and universal design.
    (d) Providing full and equal access to grass-roots faith-based and 
other community-based organizations in HUD program implementation.
    (e) Improving housing conditions for families living in the 
Colonias and migrant farm workers.
    (f) Participation of minority serving institutions in HUD programs.
    (g) Participation in Energy Star.

Submission Requirements for Factor 3

    (1) (3 points) Identify all activities that you propose to fund 
with SHOP. You should identify the specific use of SHOP funds and the 
proposed number of units to be assisted with SHOP funding, the housing 
type(s) (single family or multifamily, or both) and the form of 
ownership (fee simple, condominium, cooperative, etc.) you propose to 
use.
    (2) (4 points) Submit a construction and completion schedule that 
expends SHOP funds and substantially fulfills your obligations, 
including the completion of the appropriate number of dwelling units, 
within 24 months, or in the case of affiliates that develop five or 
more units, within 36 months, and demonstrates that remaining housing 
construction will be completed within a reasonable period of time. Your 
schedule must show the number or percentage of dwelling units that will 
be completed and conveyed to homebuyers at the end of the 24- and 36-
month periods and the timeframe for completing any unfinished units.
    (3) (4 points) Submit a timetable listing milestones against which 
HUD is to measure your performance progress in final selection of local 
affiliates if they are not specifically identified in the application, 
expending funds, and completing acquisition, infrastructure and housing 
construction activities within the schedule in Item 2 above. These 
milestones should be at reasonable intervals (e.g., monthly, 
quarterly).
    (4) (2 points) Describe how your proposed activities address the 
need or needs you identified under Rating Factor 2 above.
    (5) (5 points) Provide a detailed budget with a break out for each 
proposed task and each budget category (acquisition, infrastructure 
improvements, and administration) funded by SHOP in the HUD-424C and 
424CB. If SHOP funds will be used for administration of your grant, you 
must include the cost of monitoring consortium members and affiliates 
at least once during the grant period. Your budget must also include 
leveraged funding to cover all costs of completing construction of the 
proposed number of units.
    (6) (2 points) Demonstrate that projected costs for the proposed 
activities do not deviate substantially from the norm in the locale in 
which your activities will take place, will not exceed an average cost 
of $10,000 per unit in SHOP funds, and that your proposed activities 
are cost effective.
    (7) (7 points) Describe how each of the Department's policy 
priorities are furthered by your proposed activities. You will receive 
one point for each policy priority addressed. To receive a point for a 
policy priority, you must describe how your proposed work activities 
address the specific policy and list proposed performance measurements 
related to it.
    (8) (2 points) Describe how you will reach potential homebuyers 
through the use of services and materials that are accessible or 
visitable to all persons, including persons with disabilities (e.g., 
languages, formats, locations, distribution, and use of minority media 
to attract those least likely to apply).
    (9) (4 points) Describe your criteria, including the income range 
of targeted homebuyers, and procedures for selecting homebuyers. If the 
selection criteria used by individual consortium members or affiliates 
are different from your criteria, you must describe the differences.
    (10) (2 points) Describe how your program will provide reasonable 
accommodations for persons with disabilities by providing ``sweat 
equity'' assignments that can be performed by the client regardless of 
disability. Describe the types of tasks that persons with disabilities 
will be required to perform.
    (11) (5 points) Describe your proposed plan for overseeing the 
performance of consortium members and affiliates, including a plan for 
monitoring each consortium member and affiliate for

[[Page 21451]]

program compliance at least once during the term of the grant. Your 
plan should address when and how you will shift funds among consortium 
members and affiliates to ensure effective use of SHOP funds within 
your schedule identified in Item 3 above.

Rating Factor 4: Leveraging Resources (15 Points)

    This factor addresses your ability to secure other resources that 
can be combined with HUD's program resources to achieve the purposes of 
SHOP. HUD will consider only those leveraging contributions for which 
current firm commitments have been provided. Leveraged resources can be 
counted only if you have secured a firm financial commitment described 
in this Factor. A firm commitment means the agreement by which the 
contributing partner or entity agrees to perform or provide resources 
for an activity specified in your application that demonstrates your 
financial capacity to deliver the resources necessary to carry out the 
self-help housing activity. Firm commitments of resources may be in the 
form of cash funding, in-kind contributions, or personnel from federal, 
state, local, and private sources, which are jointly referred to as 
your leverage partners. Together with the SHOP grant funds, these 
commitments must be sufficient to develop the proposed number of units 
in your application, which must be 30 units or more. Firm commitments 
must be substantiated by documentation required in item 1 below. Along 
with leveraged resources, HUD will also consider the extent that the 
applicant's proposed sweat-equity requirements will serve to reduce 
costs to the homebuyers.

Submission Requirements for Factor 4

    (1) (10 points) Provide firm written commitments (letters, 
agreements, etc.) from the source of the commitment that will be used 
to complete the number of self-help housing units stated in your 
application. Written commitments must include your organization's name, 
the contributing organization's name (including designation as a 
federal, state, local or private source), and the proposed type and 
level of commitment and responsibilities as they relate to your 
proposed program. This leveraging commitment must be signed by an 
official of the organization legally able to make the commitment on 
behalf of the organization and must be specifically targeted to support 
your FY 2003 SHOP application. If your organization depends upon fund 
raising and donations from unknown sources/providers and you signed the 
HUD 424, in order to receive credit you must still submit a separate 
letter committing a specific amount of dollars in fund raising to your 
proposed FY 2003 SHOP program. Written commitments may be contingent 
upon your receiving a grant award. Written commitments must be included 
as an appendix and do not count against the page limitation. Letters 
expressing support do not count as leveraging. To receive full credit 
for leveraging, an applicant's firm commitments must be clearly 
identified for this FY 2003 SHOP grant and must equal the amount needed 
to complete all properties, exclusive of the proposed SHOP grant 
amount.
    (2) (5 points) Provide a description of the individual sweat-equity 
requirements (types of tasks and number of hours required of 
homebuyers) of your program. Include the dollar value of the sweat 
equity contribution and how this contribution of labor will reduce the 
costs of the home to the homebuyer. Reasonable accommodation must be 
allowed for persons with disabilities to participate in your program. 
Applicants showing a higher reduction in cost as a result of the sweat 
equity contribution by the homebuyer will receive a higher score.

Rating Factor 5. Achieving Results and Program Evaluation (10 points)

    This factor emphasizes HUD's determination to ensure that 
applicants meet commitments made in their applications and grant 
agreements and assess their performance to realize performance goals. 
HUD requires SHOP applicants to develop an effective, quantifiable, 
outcome oriented evaluation plan for measuring performance and 
determining that goals have been met using the Logic Model form 
provided in the General Section. ``Out-comes'' are benefits accruing to 
the families and/or communities during or after participation in the 
SHOP program. Outcomes are not the actual development of the self-help 
housing units. Applicants must clearly identify the outcomes to be 
achieved and measured. Examples of outcomes are increasing the 
homeownership rate in a neighborhood or among low-income families by a 
certain percentage, increasing financial stability (e.g. increasing 
assets of the low-income homebuyer households through additional 
savings, home equity) or increasing housing stability (e.g., whether 
persons and families assisted remain in the home one, two, or five or 
more years after completion).
    In addition, applicants must establish interim benchmarks and 
outputs for their proposed programs that lead to the ultimate 
achievement of outcomes. ``Outputs'' are the direct products of the 
applicant's program activities. Examples of outputs are the number of 
the houses constructed, number of sweat equity hours, or number of 
homes rehabilitated. Outputs should produce outcomes for your program.
    Program evaluation requires that you, the applicant, identify 
program outcomes, outputs, benchmarks, and performance indicators that 
will allow you to measure your performance. Performance indicators 
should be objectively quantifiable and measure actual achievements 
against anticipated achievements. Your evaluation plan should identify 
what you are going to measure, how you are going to measure it, and the 
steps you have in place to make adjustments to your work plan if 
performance targets are not met within established timeframes.
    This factor reflects HUD's goal to embrace high standards of 
ethics, management and accountability.

Submission Requirements for Factor 5

    You must submit a program evaluation plan that demonstrates how you 
will measure your own program performance. Your plan must identify the 
outcomes you expect to achieve or goals you hope to meet over the term 
of your proposed grant and benchmarks and timeframes for accomplishing 
these goals. Your plan must show how you will measure actual 
accomplishments against anticipated achievements. You must indicate how 
your plan will measure the performance of individual consortium members 
and affiliates, including the standards and measurement methods, and 
the steps you have in place or how you plan to make adjustments if you 
begin to fall short of established benchmarks and timeframes.

VI. Application Requirements, Assembly Format, and Checklist for 
Application Submission

    Your application consists of the items listed in this Section VI. 
The standard forms, certifications, and assurances that are applicable 
to this funding (collectively, referred to as the ``standard forms'') 
can be found in Appendix B to the General Section of the SuperNOFA.
    Assembly Format. You should assemble your application as outlined 
below, with tabs designating forms, rating factors, and appendices. 
Your FY 2003 application has page limitations on your responses to the 
five rating factors. If you are a national or regional organization, 
you are limited to 60 pages of narrative responding to the five rating

[[Page 21452]]

factors. This limitation does not include other required information, 
such as your audit and commitment letters, which must be included in 
the appendix. If you are a consortium, you are permitted up to 10 
additional pages total to address the capacity and soundness of 
approach of your individual consortium members if they are different. 
Make certain that you number all pages sequentially and insert tabs 
marking each factor. Except for the narrative statements addressing the 
five rating factors, forms, certifications, assurances, and requested 
appendices, any other information that is submitted will not be 
considered. For example, commitments letters will be considered, but 
not counted against the page limitations; however, general expressions 
of support will not be considered. Any information beyond the above-
noted 60-70 page limitations for the five rating factors will not be 
reviewed in the rating and ranking process.
    In order to receive full consideration for funding, you should 
assemble your application according to the following checklist to 
ensure that all of the required items have been submitted.
    ------ HUD-424, Application for Federal Assistance (signed by the 
authorized representative of the organization eligible to receive 
funds)
    ------ HUD-424B, Applicant Assurances and Certifications
    ------ Table of Contents
    ------ Evidence of Non-Profit status
    ------ Consortium Agreement, if applicable.

Narrative Statement Addressing: (See page limitations above.)

    ------ Factor 1--Capacity of the Applicant and Relevant 
Organizational Staff
    ------ Factor 2--Need/Extent of the Problem
    ------ Factor 3--Soundness of Approach
    ------ Factor 4--Leveraging Resources
    ------ Factor 5--Achieving Results and Program Evaluation
Evaluation Plan--Logic Model form

Forms, Certifications and Assurances

    ------ HUD 424C, Budget Summary for Competitive Grant Programs
    ------ HUD 424CB, Grant Application Detailed Budget
    ------ SF-LLL, Disclosure of Lobbying Activity, as applicable
    ------ HUD-2880, Applicant/Recipient Disclosure/Update Report
    ------ HUD-2990, Certification of Consistency with the RC/EZ/EC 
Strategic Plan
    ------ HUD-2993, Acknowledgment of Application Receipt

Appendices

    ------ Recent audit, if available.
    ------ A copy of your code of conduct and a narrative description 
of the methods you will use to ensure that all officers, employees and 
agents of your organization become aware of your code of conduct.
    ------ Leveraging documentation--written commitment letters.
    ------ Survey of potential affiliates, if applicable.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    The provisions contained in section 305(c) of the Multifamily 
Housing Property Disposition Reform Act of 1994, Environmental Review, 
implemented in the Environmental Review regulations at 24 CFR part 58, 
are applicable to properties assisted with SHOP funds. All SHOP 
assistance is subject to the National Environmental Policy Act of 1969 
and related federal environmental authorities. SHOP grant applicants 
are cautioned that no federal or non-federal funds or assistance which 
limits reasonable choices or could produce a significant adverse 
environmental impact may be committed to a project until all required 
environmental reviews and notifications have been completed by a unit 
of general local government, tribe or state and until HUD approves a 
recipient's request for release of funds under the environmental 
provisions contained in 24 CFR part 58. Notwithstanding the preceding 
sentence, in accordance with section 11(d)(2)(A) of the Housing 
Opportunity Extension Act of 1996 and HUD Notice CPD-01-09, an 
organization, consortium or affiliate receiving SHOP assistance may 
advance non-grant funds to acquire land prior to completion of an 
environmental review and HUD's approval of a request for release of 
funds and environmental certification. Any advances to acquire land 
prior to such approval are made at the risk of the organization, 
consortium or affiliate and reimbursement from SHOP funds for such 
advances will depend on the result of the environmental review.

IX. HUD Reform Act of 1989

    The provisions of the HUD Reform Act of 1989 that apply to this 
NOFA are explained in the General Section of the SuperNOFA at Section 
XI.

X. Authority

    The funding made available under this program section of the 
SuperNOFA is authorized by section 11 of the Housing Opportunity 
Program Extension Act of 1996 (42 U.S.C. 12805 note) (the ``Extension 
Act'').
BILLING CODE 4210-32-P

[[Page 21453]]

[GRAPHIC] [TIFF OMITTED] TN25AP03.237


[[Page 21455]]



Funding Availability for the Youthbuild Program

Program Overview

    Purpose of the Program. The purpose of the Youthbuild program is to 
assist disadvantaged young adults in distressed communities in 
completing their high school education, to provide on-site construction 
training experiences which also results in the rehabilitation or 
construction of housing for homeless persons and low- and very low-
income families, to foster leadership skills, to further opportunities 
for placement in apprenticeship programs, and to promote economic self-
sufficiency.
    Available Funds. Approximately $54,642,500 is available for Fiscal 
Year (FY) 2003.
    Adjustments to Funding. HUD reserves the right to utilize this 
year's funding to fund previous years errors prior to rating and 
ranking this years' applications. HUD reserves the right to reallocate 
funds between categories to achieve the maximum allocation of funds. 
Any available funds that remain after all applications within funding 
range have been selected or obligated will be reallocated between 
categories one (1) and two (2) by rank order between applications at 
the discretion of the selecting official or designee.
    Eligible Applicants. Eligible applicants are public or private 
nonprofit agencies, including grassroots faith-based and other 
community-based organizations, State or local housing agencies or 
authorities, State or units of local government, or any entity eligible 
to provide education and employment training under other Federal 
employment training programs, as further defined in HUD's regulation at 
24 CFR 585.4.
    Application Deadline. June 6, 2003.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please carefully review the General Section of this SuperNOFA and the 
following additional information. Mailed Applications. Your application 
will be considered timely filed if your application is received in HUD 
Headquarters on or before 5:15 p.m. eastern standard time on the 
application due date.

I. Application Due Date and Technical Assistance

    Application Due Date. Completed applications (one original and two 
copies) must be submitted and received by HUD on or before 5:15 p.m., 
June 6, 2003 at the address shown below.
    Application Submission Procedures. New Security Procedures. HUD has 
implemented new security procedures that impact application submission 
procedures. Please read the following instructions carefully and 
completely. No hand deliveries will be accepted.
    Address for Submitting Applications. Completed applications (one 
original signed application and two copies) must be submitted to the 
Processing and Control Unit, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Room 7255, Washington, DC 20410, Attention: Youthbuild 
Program. When submitting your application, please include your name and 
mailing address (including zip code) and telephone number and fax 
number (including area code).
    There is no Application Kit for the FY2003 Youthbuild NOFA. This 
SuperNOFA clearly describes the requirements for completing a 
successful application and all forms and certifications needed to 
complete the application are included in the General and YouthBuild 
Sections of the SuperNOFA.
    For information concerning the HUD Youthbuild program, contact Ms. 
Phyllis Williams, Community Planning and Development Specialist, Office 
of Rural Housing and Economic Development, Office of Community Planning 
and Development, Department of Housing and Urban Development, 451 
Seventh Street, SW., Room 7137, Washington, DC 20410; telephone (202) 
708-2290 (this is not a toll-free number). Persons with speech or 
hearing impairments may access this number via TTY by calling the toll-
free Federal Information Relay Service at 1-800-877-8339.
    For Technical Assistance. Prior to the application deadline, HUD's 
staff will be available to provide general guidance on the application 
submission process and location of information, but not guidance in 
preparing your application.
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of an application. For more information about the date and 
time of this broadcast, you should consult the HUD Web site at http://www.hud.gov.

II. Amount Allocated

    (A) Available Funds. Approximately $54,642,500 in Fiscal Year (FY) 
2003 funding will be made available through this program section of 
this SuperNOFA for the Youthbuild program. The breakdown of funding is 
discussed below.
    (B) The FY 2003 HUD Appropriations Act. The Department of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2003 (the ``FY 2003 HUD Appropriations Act'') made 
$60,000,000 available of which $54,642,500 is allocated for grants.
    (C) Funding Categories. HUD will award up to $54,642,500 on a 
competitive basis. Funds will be divided between three categories of 
grants as described below. In each fiscal year, the Secretary shall 
reserve five percent (5%) of the amounts available for activities under 
this subtitle pursuant to section 402 to carry out subsections (b) and 
(c), (Subtitle D--Hope for Youth: Section 458 (42 U.S.C. 12899g).
    Category 1 Grants. New Applicants. HUD will award up to $10,000,000 
for new applicants that have not previously received implementation 
grants since the inception of the program for a period not to exceed 30 
months. The maximum amount awarded to a successful applicant in this 
category is $400,000.
    Category 2 Grants. Grants up to $700,000. HUD will award up to 
$34,642,500 for grants up to $700,000 for a period not to exceed 30 
months. The maximum amount awarded to a successful applicant in this 
category is $700,000. Any eligible applicant can apply in Category 2.
    Category 3 Grants. Underserved and Rural Areas. HUD will award up 
to $10,000,000 for grants to organizations serving clients in 
underserved and rural areas as defined in this NOFA for a period not to 
exceed 30 months. The maximum amount awarded to a successful applicant 
in this category is $400,000.
    Applicants must indicate on their transmittal/cover letter which 
funding categories they are applying for.

III. Program Description and Eligible Activities

    (A) Program Description. The purposes of the Youthbuild Program are 
to:
    (1) Provide economically disadvantaged young adults with 
opportunities to obtain an educational experience that will enhance 
their employment skills, as a means to achieving self-sufficiency;
    (2) Foster the development of leadership skills and commitment to 
community;
    (3) Expand the supply of permanent affordable housing for homeless 
and low- and very low-income persons by

[[Page 21456]]

providing implementation grants for carrying out a Youthbuild program;
    (4) Provide disadvantaged young adults with meaningful on-site 
training experiences in housing construction and rehabilitation that 
will enable them to render a service to their communities by helping to 
meet the housing needs of homeless persons and low-income families; and
    (5) Give to the greatest extent possible, job training, employment, 
contracting and other economic opportunities to low-income young 
adults.
    HUD also focuses on the Youthbuild Program as a way to foster the 
development of nonprofit organizations, including grassroots faith-
based and other community-based organizations which over time can 
provide the services mentioned above to disadvantaged youth and which 
at the same time rely less on HUD's financial support to carryout these 
activities.

(B) Eligible Activities

    (1) Work and activities associated with the acquisition, 
architectural and engineering work, rehabilitation or construction of 
the housing, as defined in HUD's regulations at 24 CFR 585.309, 
585.310, and 585.311.
    (2) Relocation payments and other assistance required to comply 
with HUD's regulation at 24 CFR 585.308;
    (3) Costs of ongoing training and technical assistance needs 
related to carrying out a Youthbuild program;
    (4) Education, job training, counseling, employment, leadership 
development services and optional activities that meet the needs of the 
participants including entrepreneurial training, drivers' education, 
apprenticeship opportunities, financial literacy, credit counseling, 
assistance programs for those with learning disabilities, and in-house 
staff training;
    (5) Outreach to potential participants;
    (6) Wages, benefits, and need-based stipends for participants and;
    (7) Administrative costs, which must not exceed 10 percent of the 
grant award. HUD encourages you to use grant funds for outreach, 
recruitment, training and other services for the participants that 
facilitate program implementation. Please refer to HUD's regulation at 
24 CFR 585.305 for further details on eligible activities.

IV. Program Requirements

    In addition to the requirements listed in the General Section of 
this SuperNOFA, as an applicant you must comply with the following 
Youthbuild program requirements.

(A) Threshold Requirements

    (1) Eligible Applicants. Eligible applicants are public or private 
nonprofit agencies, including grassroots faith-based and other 
community-based organizations, State or local housing agencies or 
authorities, State or units of local government, or any entity eligible 
to provide education and employment training under other Federal 
employment training programs.
    (2) Eligible Participants. Participants in a Youthbuild program 
must be very low-income high school dropouts between the ages of 16 and 
24, inclusive, at the time of enrollment. Up to 25 percent of 
participants may be above very low-income, or may be high school 
graduates (or equivalent), but must have educational needs (such as 
lack of reading, writing and communication skills) that justify their 
participation in the program.
    (3) Locational Limitations. You may submit more than one 
application in the current competition if your program's participant 
recruitment and housing areas are in different jurisdictions. Each 
application you submit may only propose activities to carry out one 
Youthbuild program, i.e., to start a new Youthbuild program or to fund 
new classes of Youthbuild participants for an existing program.
    (4) Response to NOFA--Page Limitation. The total narrative response 
to all factors identified in Section VI of this program NOFA must not 
exceed 15 pages, and must be submitted on 8.5'' by 11'' paper, using a 
12 point font, with lines double spaced and printed only on one side. 
Please note that submitting pages in excess of the page limit will not 
disqualify your application. However, HUD will not review or consider 
the information on any excess pages, which may result in a lower score 
or failure to meet a threshold.
    (5) Youthbuild Program Components. Applications that receive 
assistance under this Youthbuild Program section of the SuperNOFA must 
contain the three components described as follows:
    (a) Educational and job training services;
    (b) Leadership training, counseling, and other support activities; 
and
    (c) On-site training through actual housing rehabilitation and/or 
new construction work, new construction may be subject to the 
accessible design and construction requirements of the Fair Housing Act 
[see Section II(C) of the General Section of the SuperNOFA], including 
the provision of alternative training experiences that are necessary as 
a reasonable accommodation for students with disabilities.
    (6) Identification of and Access to Property. Your application must 
identify the location of the site(s) or property(ies) (e.g. addresses, 
parcel numbers, etc.) that will be used for on-site construction. Your 
application MUST contain a letter from the property owner or property 
management company(ies) allowing access to the housing site(s) for on-
site construction training. HUD may deem as ineligible any application 
that fails to specifically identify the location of the on-site 
construction.
    Site Selection--In determining the site or the location of a 
federally assisted facility, the applicant may not select sites that 
will exclude qualified persons with disabilities, or otherwise subject 
them to discrimination under the Youthbuild Program.
    New Construction--Substantial Alterations--Other Alterations. If 
the Applicant undertakes to participate in New Construction, 
Substantial Alterations or Other Alterations, it must conform to the 
accessibility standards outline in the Regulations Implementing the 
Rehabilitation Act of 1973 at 24 CFR, Part 8, Sec. Sec.  8.22, 8.23(a) 
and 8.23(b).
    (7) Training Requirement. Each program must be structured so that 
50 percent of each participant's time is spent in on-site training and 
the other 50 percent in educational training.
    (8) Economic Opportunities for Low and Very Low-Income Persons 
(Section 3). Section 3 of the Housing and Urban Development Act of 
1968, (12 U.S.C. 1701u) is applicable to the Youthbuild program. Please 
see Section II of the General Section of the SuperNOFA.
    (9) Participation in Local Workforce Investment Act One-Stop 
Center. Youthbuild grantees are mandatory partners in one-stop centers 
authorized by the Workforce Investment Act of 1998 (Pub. L. 105-220).
    (10) First time applicants. If you are a first time applicant 
applying for funding under Category 1, you must have a graduating class 
of not more than 20 participants.
    (11) Grant Period. You must expend funds awarded within 30 months 
of the effective date of the grant agreement.
    (12) Maximum Awards. Under the competition established by this 
Youthbuild Program section of the SuperNOFA, the maximum award for a 
Youthbuild grant is $700,000.
    (13) Potential Environmental Disqualification. HUD reserves the 
right to disqualify an application where one or more environmental 
thresholds are exceeded if HUD determines that it cannot conduct the 
environmental review and satisfactorily complete the review within the 
HUD application

[[Page 21457]]

review period. (See 24 CFR 585.307.) Environmental thresholds are 
explained in Appendix A of this program section of this SuperNOFA.

(B) Desirable Elements of a Youthbuild Program

    You should document the extent to which HUD's initiatives are 
furthered by the proposed activities. Such initiatives include:
    (1) Promoting healthy, safe, and energy efficient homes;
    (2) Affirmatively furthering fair housing by promoting greater 
opportunities for housing choice for minorities and persons with 
disabilities;
    (3) Providing opportunities for self-sufficiency, particularly for 
persons enrolled in welfare to work programs;
    (4) Providing educational, apprenticeship and job training 
opportunities;
    (5) Promoting welfare reform;
    (6) Encouraging visitability in new construction and substantial 
rehabilitation activities; and
    (7) Encouraging universal design.

VI. Application Selection Process

    Applicants must meet all of the applicable threshold requirements 
of Section V (B) of the General Section of the SuperNOFA and Sections 
IV(A), (B) and C of this program section of the SuperNOFA. HUD will 
review each application and assign points in accordance with the 
selection factors described in this section. The maximum number of 
points is 102. This maximum includes two Renewal Community/Empowerment 
Zone/Enterprise Community (RC/EZ/EC) bonus points as described in 
Section VI(C) of the General Section of the SuperNOFA. An application 
must receive a minimum of 75 points to be eligible for funding.
    (A) Rating and Ranking.
    (1) General. To review and rate applications, HUD may establish 
panels including officials from other Federal agencies and outside 
experts or consultants to obtain certain expertise and other outside 
points of view. In evaluating applications for funding, HUD will take 
into account an applicant's past performance in managing funds, 
including the ability to account for funds appropriately, timely use of 
funds received either from HUD or from other Federal, State or local 
programs and meeting performance targets for completion of activities 
and number of persons served or targeted for assistance. HUD may use 
information relating to these items based on information at hand or 
available from public sources such as newspapers, Inspector General or 
Government Accounting Office Reports or Findings, hotline complaints 
that have been proven to have merit, or other such sources of 
information.
    (2) Rating. All applications for funding will be evaluated against 
the rating factors described in Section (VI) of this NOFA.
    (3) Ranking. Applications will be ranked separately within each of 
the three funding categories. Applications will be selected for funding 
in accordance with their rank order in each category.
    (4) To be eligible for funding, an application must have an overall 
minimum score of 75 points. If two or more applications are rated 
fundable and have the same score, but there are insufficient funds to 
fund all of them, HUD will select the application(s) with the highest 
score for Rating Factor 3 (Soundness of Approach). If two or more 
applications still have the same score, the highest score in the 
following factors will be selected sequentially until one highest score 
can be determined: Rating Factor 1 (Capacity of the Applicant and 
Relevant Organization); Rating Factor 4 (Leveraging of Resources) and 
Rating Factor 2 (Need/Extent of the Problem).
    (B) Categories of Grants. HUD will make grants in three categories:
    (1) Category 1 Grants. Grants for new applicants that have not 
previously received funding under the Youthbuild program since the 
inception of the Program and that have elected not to apply under 
Category 2 or 3. HUD will make available approximately $10,000,000 to 
new applicants proposing grant(s) of $400,000 or less for activities 
not to exceed 30 months.
    (2) Category 2 Grants. HUD will make available approximately 
$34,642,500 to applicants proposing grant(s) of $700,000 or less for 
activities not to exceed 30 months.
    (3) Category 3 Grants. HUD will make available $10,000,000 for 
applicants proposing grant(s) of $400,000 or less to establish programs 
in underserved and rural areas not to exceed 30 months. Rural and 
Underserved areas are defined as follows:
    (a) Rural Area. A Rural area is defined in one of five ways:
    (i) A place having fewer than 2,500 inhabitants (within or outside 
of metropolitan areas).
    (ii) A county with an urban population of 20,000 inhabitants or 
less.
    (iii) Rural portions of extended cities, as identified by the U.S. 
Census Bureau.
    (iv) Open country, which is not part of or associated with an urban 
area. The United States Department of Agriculture (USDA) describes 
``open country'' as a site separated by open space from any adjacent 
densely populated urban area. Open space includes undeveloped land, 
agricultural land or sparsely settled areas but does not include 
physical barriers, (such as rivers and canals), public parks, 
commercial and industrial developments, small areas reserved for 
recreational purposes, and open space set aside for future development.
    (v) Any place with a population not in excess of 20,000 and not 
located in a Metropolitan Statistical Area.
    (b) Underserved Area. An underserved area is defined as an area 
comprised of census tracts with the following distress criteria:
    (i) A census tract where the unemployment remains high (50 percent 
or more above the nation's unemployment rate) and
    (ii) A census tract where high rates of poverty (50 percent or more 
above the national average) persists.
    (C) Potential Environmental Disqualification. HUD reserves the 
right to disqualify an application where one or more environmental 
thresholds are exceeded if HUD determines that it cannot conduct the 
environmental review and satisfactorily complete the review within the 
HUD application review period. (See 24 CFR 585.307.) Environmental 
thresholds are explained in Appendix A of this program section of this 
SuperNOFA. Complete form 2Cl3a, 2C13b, or 2C13c and form 2C15 only if 
you are proposing to use Youthbuild funds for new housing construction 
or rehabilitation.
    (D) Notification of Approval or Disapproval. HUD will notify you 
whether or not you have been selected for an award. If you are 
selected, HUD's notice to you of the amount of the grant award based on 
the approved application will constitute HUD's CONDITIONAL approval, 
subject to negotiation and execution of the grant agreement by HUD.
    (E) Rating Factors for Award Used to Evaluate and Rate 
Applications. The factors for rating and ranking applicants, and 
maximum points for each factor, are provided below. The maximum number 
of points for the program is 102. This includes two RC/EZ/EC bonus 
points, as described in the General Section of the SuperNOFA.
    (F) Application Debriefing. Applicants requesting to be debriefed 
must send a written request (see General Section IX(G)(3)) to Ms. 
Jackie Williams-Mitchell, Director, Office of Rural Housing and 
Economic Development (ORHED), Office of Community Planning and 
Development, 451 Seventh Street, SW., Room 7137, Washington, DC 20410. 
Debriefing

[[Page 21458]]

information can be found in Section VII(E)(2) of the General Section of 
the SuperNOFA.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (15 points)

    This factor addresses the qualifications and experience of the 
applicant and participating parties to implement a successful young 
adult education, training program in accordance with your work plan as 
further described in Factor 3. HUD will review and evaluate information 
provided documenting recent capability. Experience within the last 5 
years will be considered recent. In reviewing this rating factor, HUD 
will evaluate the following sub-factors:
    (1) Team Member Composition and Experience (5 points). Your 
experience and the experience of your project director, core staff 
competencies including your day-to-day program manager, consultants and 
contractors. You must demonstrate that your program manager has the 
background, experience and capacity to implement all of the program 
components of the proposed work plan, as evidenced by recent work 
experience (within the last 5 years) in managing projects of the same 
or similar size, dollar amount, types of activities and beneficiaries 
as those proposed in your work plan. If any gaps exist in your 
experience or organizational structure to carry out the program, 
describe how you will fill those gaps including the hiring of 
consultants or other outside parties.
    (2) Organizational Structure (5 points). The structure of your 
organization, management structure, including reporting relationships 
of key staff, a system for coordinating with outside contractors or 
third party service providers, a mechanism for an internal and external 
auditing relationships, and an accounting system which meets Federal 
accounting system requirements. You should provide a clear description 
of how your organizational structure will operate to carry out your 
work plan.
    (3) Relevant Experience (5 points). The objectives and 
accomplishments of your past experience in conducting similar 
activities. You must describe your past project objectives and 
accomplishments which are similar to those of your proposed work plan 
to show your effectiveness and timeliness in managing similar projects. 
If you have received similar grants including previous Youthbuild 
grants, you must describe your effectiveness of your administration 
including timeliness and performance in meeting reporting requirements 
and your ability to have resolved problems that presented themselves 
during the grant period. In addressing timeliness of reports, you must 
compare when your reports were due with when they were actually 
submitted. You must describe your achievements, including those of 
previous Youthbuild grants, of specific measurable outcome objectives. 
Specific outcome objectives include: number of youths recruited, 
trained and received GEDs; number of youths obtaining jobs (i.e., those 
that are a part of a career path or apprenticeship program), number of 
youths participating in apprenticeships and number of housing units 
rehabilitated or constructed and made available for low and very low 
income persons.
    Also, you must describe the extent to which you or participating 
partners have been successful in past education, training and 
employment programs and activities, including Federally-funded 
Youthbuild programs. If you have received a Youthbuild grant, you must 
submit copies of your last two progress reports or, if applicable, a 
closeout report. In applying the rating criteria, HUD will take into 
consideration your performance (including meeting target dates and 
schedules) as reported.
    The more recent, relevant, and successful the experience of the 
proposed team members, organization and other participating entities in 
relation to the work plan, the greater the number of points that you 
will receive. For previous and existing Youthbuild grantees, applicants 
that can demonstrate a closer and greater linkage between the expected 
outcomes and the previously generated outcomes will receive a higher 
amount of points for this Factor.

Rating Factor 2: Need/Extent of the Problem (25 Points)

    This Factor addresses the extent to which there is need for funding 
the proposed activities based on levels of distress and an indication 
of the urgency of meeting the need/distress in the applicant's target 
area. In responding to this Factor, applications will be evaluated on 
the extent to which the level of need for the proposed activity and the 
urgency in meeting the need are documented and compared to the target 
area and national data.
    (1) In applying this Factor, HUD will consider current levels of 
distress for the area (i.e., Census Tract(s) or Block Groups) 
immediately surrounding the project site or the target area to be 
served by the proposed project, and in the nation. This means that an 
application that provides data that show levels of distress in the 
target area expressed as a percent greater than the national average 
will be rated higher under this Factor.
    Notwithstanding the above, an applicant proposing a project to be 
located outside the target area could still receive points under the 
Distress Factor if a clear rationale and linkage is provided linking 
the proposed project location and the benefits to be derived by persons 
living in more distressed area(s) of the applicant's target area.
    (2) Applicants should provide data that address indicators of 
distress, as follows:

    (a) Poverty (5 points)--data should be provided in both absolute 
and percentage form (i.e., whole numbers and percents) for the target 
area(s); an application that compares the local poverty rate in the 
following manner to the national average at the time of submission will 
receive points under this section as follows:

(i) Less than the national average--0 points
(ii) Equal to but less than twice the national average--1 point
(iii) Twice but less than three times the national average--3 points
(iv) Three or more times the national average--5 points
(b) Unemployment (5 points)--for the project area;
(i) Less than the national average--0 points
(ii) Equal to but less than twice the national average--1 point
(iii) Twice but less than three times the national average--2 points
(iv) Three but less than four times the national average--3 points
(v) Four but less than five times the national average--4 points
(vi) Five or more times the national average--5 points
(c) High School Dropouts (10 points)--for the project area;
(i) Less than the national average--0 points
(ii) Equal to but less than twice the national average--2 points
(iii) Twice but less than three times the national average--4 points
(iv) Three but less than four times the national average--6 points
(v) Four but less than five times the national average--8 points
(vi) Five or more times the national average--10 points

    (d) Concrete examples of social and/or economic decline that best 
capture the applicant's local situation (5 points). Examples that could 
be provided under this section are information on the community's 
stagnant or falling tax base, including recent commercial or

[[Page 21459]]

industrial closings, housing conditions, such as the number and 
percentage of substandard and/or overcrowded units, rent burden 
(defined as average housing cost divided by average income) for the 
target area and urgency in addressing problems facing youth, local 
crime statistics, etc.
    (3) In rating applications under this Factor, HUD reserves the 
right to consider sources of available objective data, such as the U.S. 
Census, other than, or in addition to, those provided by applicants, 
and to compare such data to those provided by applicants and local 
crime statistics for the project site.
    HUD requires use of sound and reliable data (e.g., U.S. Census 
data, State statistical reports, university studies/reports that are 
verifiable) to support distress levels cited in each application. A 
source for all information along with the publication or origination 
date must also be provided.
    Updated Census data are available as follows for the listed 
indicators:

(a) Unemployment rate--estimated monthly, with a two-month lag;
(b) Population--estimated for incorporated places through 2000;
(c) Poverty rate--2000 data being the most recent available.

Rating Factor 3: Soundness of Approach (40 points)

    This factor addresses the extent to which your proposed program is 
coordinated with other ongoing and related activities in the area you 
propose to serve, how well your program outcomes result in increased 
independence and empowerment to your beneficiaries at the conclusion of 
the grant period. HUD will evaluate the extent to which your 
application meets the following three elements:
    (1) Coordination of activities (2 points). The extent to which you 
have coordinated your activities with other known organizations that 
are not directly in your proposed work activities, but with which you 
share common goals and objectives and are working toward meeting these 
objectives in a holistic and comprehensive manner. The goal of 
coordination is to ensure that programs do not operate in isolation. 
The more your activities are coordinated with other agencies in your 
service area, the more points you will receive. An example of 
coordination activities would be the applicant's partnership with an 
existing child day care facility (which is not funded by program) that 
provides day care services to the Youthbuild participants during the 
hours they are being trained or receiving education.
    (2) Self-Sufficiency (1 point). The extent to which your 
application implements practical solutions within the grant term that 
result in assisting beneficiaries of grant program funds in achieving 
independent living, economic empowerment, educational opportunities, 
housing choice or improved environments which are free from 
environmental hazards such as lead hazards, brownfields, overcrowded 
housing, etc. Applicants that clearly describe the extent to which 
proposed activities result in increased independence and empowerment 
for their beneficiaries will receive higher points in this sub-factor.
    (3) Sustainability (2 points). The extent to which your program 
exhibits the potential to be financially self-sustaining by decreasing 
dependence on Youthbuild funding and relying more on state, local and 
private funding so your activities can be continued after your grant 
award is complete. Applicants that demonstrate a reduced dependence on 
Youthbuild funds over the life of their award will receive a greater 
number of points for this sub-factor.
    Youthbuild Program Work Plan. There must be a clear relationship 
between your proposed activities, community needs and the purpose of 
the Youthbuild program. HUD will consider the overall quality and 
feasibility of your proposed work plan and budget which must be 
consistent with the Youthbuild program as measured by your specific 
activities and outcomes.
    Specifically, HUD will consider the following categories when 
assessing your proposed work plan:
    (1) Program Components. (15 points).
    (a) Outreach strategy, recruitment strategy and selection 
activities. HUD will determine the extent to which you demonstrate a 
clear linkage with the following work plan activities and proposed 
outcomes and results. Points will be awarded based upon overall quality 
and feasibility of the outreach, recruitment and selection activities, 
the number and types of outreach activities, number of youths to be 
recruited including eligible participants who are harder to reach and 
comprehensiveness of the local selection process.
    Letters describing specific resources or services to be contributed 
by non-applicant organizations must be included in your application. In 
evaluating this category, HUD will consider:
    (i) Specific steps you will take to attract potential eligible 
participants who are unlikely to be aware of this program (because of 
race, color, national origin, religion, ethnicity, sex or disability) 
and selection strategies;
    (ii) Special outreach efforts you will make to recruit eligible 
young women, young women with dependent children, and persons receiving 
public assistance; and
    (iii) Recruitment arrangements you have made with public agencies, 
courts, homeless shelters, local school systems, local workforce 
development systems, one-stop centers and, community-based 
organizations, etc. You will receive a greater number of points if your 
outreach and recruitment arrangements are consistent with the purpose 
of the Youthbuild program and your project goals and the resources 
provided.
    (b) Educational and job training services and activities. HUD will 
evaluate the extent to which you demonstrate a clear linkage with the 
following work plan activities and proposed outcomes and results.
    Letters describing specific resources or services to be contributed 
by non-applicant organizations must be included in your application. 
Points will be awarded based upon the quality and feasibility of your 
proposed curriculum, qualifications of instructors and proposed wages 
and stipends for youth participants. In evaluating this category, HUD 
will consider:
    (i) The types of in-class academic and vocational instruction you 
will provide;
    (ii) The number and qualifications of program instructors and ratio 
of instructors to participants;
    (iii) Scheduling plan for classroom and on-the-job training needed 
to meet program requirements and ensure timely completion of your 
program; and
    (iv) Reasonable payments of participants' wages, stipends, and 
incentives. You will receive a greater number of points if your 
educational and job training services are consistent with the purpose 
of the Youthbuild program and your project goals and the resources 
provided.
    (c) Leadership development. HUD will determine the extent to which 
you demonstrate a clear linkage with work plan activities and proposed 
outcomes and results. Letters describing specific resources or services 
to be contributed by non-applicant organizations must be submitted in 
your application. Points will be awarded based upon the quality and 
feasibility of your proposed leadership curriculum, qualifications of 
instructors and the impact of the proposed leadership activities on the 
target area. You must describe the leadership development training you 
will offer to participants and strategies for providing the training to 
build group cohesion and peer support. You will

[[Page 21460]]

receive a greater number of points if your leadership development 
activities are consistent with the purpose of the Youthbuild program 
and your project goals and the resources provided.
    (d) Support services. HUD will determine the extent to which you 
demonstrate a clear linkage with work plan activities and proposed 
outcomes and results.
    Letters describing specific resources or services to be contributed 
by non-applicant organizations must be included in your application. 
Points will be awarded based upon the quality and feasibility of your 
proposed support services strategy and stipends for the participants.
    You must assess the need for counseling and referral services 
during each stage of program implementation: outreach strategy, 
recruitment strategy, youths interviewed and not selected for the 
program, program participants, youths who drop out of the program and 
graduates of the program. Describe how the participant needs will be 
addressed, document counseling and referral services to be offered to 
participants, the type of counseling, social services, and/or need-
based stipends you will provide.
    Applicants will receive a greater number of points if your support 
service activities are consistent with the purpose of the Youthbuild 
program and your project goals and the resources provided.
    (e) Follow-up assistance and support activities to program 
graduates. HUD will evaluate the extent to which you provide assistance 
to Youthbuild program participants after graduation. Letters describing 
specific resources or services to be contributed by non-applicant 
organizations must be included in your application. Points will be 
awarded based upon the quality and feasibility of your proposed 
strategy. You must describe the type of proposed assistance and support 
which should be based upon an assessment of the needs of the program 
graduates and should include continued linkage to the local Youthbuild 
program, counseling and social service referral services. You will 
receive a greater number of points if your follow-up assistance and 
support service activities to program graduates are consistent with the 
purpose of the Youthbuild program and your project goals and the 
resources provided.
    (f) On-site training. HUD will evaluate the extent to which the 
work plan provides for quality and comprehensive on-site construction 
training by addressing the categories below. Letters describing 
specific resources or services to be contributed by any non-applicant 
organizations must be included in your application. Points will be 
awarded based upon the quality and feasibility of your proposed 
curriculum, experience of proposed instructors, number of youth to be 
trained and wages or stipends for participants. HUD will consider:
    (i) The housing construction or rehabilitation activities 
participants will undertake at the site(s) to be used for the on-site 
training component of the program as provided in the training 
curriculum and methodology for carrying out on-site training;
    (ii) The qualification and number of on-site supervisors;
    (iii) The ratio of trainers to participants;
    (iv) The number of participants per site; and
    (v) The amounts, wages, and/or stipends you will pay to 
participants during on-site work. All applicants will receive a greater 
number of points if your on-site training plan is consistent with the 
purpose of the Youthbuild program and your project goals and the 
resources provided.
    (2) Strategy for Job Placement. (2 points). HUD will evaluate the 
quality and feasibility of your proposed strategy to place youth 
participants in permanent jobs.
    Letters describing specific resources or services to be contributed 
by non-applicant organizations must be included in your application. 
You will be rated on the following factors: (a) Proposed number of 
youth to obtain jobs that promote economic self-sufficiency (i.e. those 
that are a part of career paths or apprenticeship programs); (b) 
proposed number of youths who will continue post-secondary or secondary 
education; (c) proposed number of youths to receive entrepreneurship 
training. Two points of this factor will be awarded based upon the 
comprehensiveness and feasibility of your strategies and procedures to 
place youth participants in related apprenticeships and commitments 
from construction trade unions. You will receive a greater number of 
points if your strategy for job placement is consistent with the 
purpose of the Youthbuild program, your proposed project and the 
resources provided.
    (3) Expected Outcomes. (3 points). Program outcomes for the 
Youthbuild Program must include: (a) Number of participants; (b) 
attainment of a GED or certificate by participants; (c) number of 
housing units constructed; (d) number of housing units rehabilitated; 
(e) placement of participants in employment or education; and (f) 
literacy and numeracy. As part of this evaluation, HUD will assess the 
cost effectiveness of your stated outcomes as compared to the funds 
that you are requesting in the Youthbuild Grant Budget. You will 
receive a greater number of points if your proposed outcomes are 
consistent with the purpose of the Youthbuild program, your proposed 
project and the resources provided.
    (4) Housing Program Priority. (10 points). HUD will assign Housing 
Program Priority points to all applications that contain evidence that 
housing resources for other Federal, State, local or private sources 
that are available and firmly committed to cover all costs, in full, 
for the following housing activities for the proposed Youthbuild 
program: acquisition, architect and engineering fees, construction, and 
rehabilitation. Applications that do not include proper documentation 
of firm financial commitments of non-Youthbuild resources or propose to 
use Youthbuild grant funds, in whole or in part, or do not evidence 
site control, for any one of the housing activities listed above will 
not be entitled to housing program priority points. Forms 2C, Housing 
Site Description, and 2C10, Youthbuild Grant Individual Housing Project 
Site Estimate, must be completed to receive the Housing Program 
Priority points.
    (5) Policy Priorities. (5 points). Policy Priorities are further 
defined in Section II of the General Section of the SuperNOFA. 
Applicant should document to the extent HUD's policy priorities are 
enhanced by the proposed activities. Applicants who include activities 
that can result in the achievement of these Departmental policies 
priorities as described below and in Section II of the General Section 
of this SuperNOFA, will receive higher rating points in evaluating 
their application for funding. Five Departmental policy priorities are 
listed below. Applicant will receive 1 rating point for each policy 
priority addressed in the program of activities section under this 
rating factor as described in Section VI(b) of this program NOFA. 
Policy Priorities include:
    (a) Improving our Nation's Communities
    (b) Providing Full and Equal Access to Grass-Roots Faith-Based and 
Other Community--Based Organizations in HUD Program Implementation.
    (c) Participating in Energy Star.
    (d) Encouraging Accessible Design Features.
    (e) Ending Chronic Homelessness within Ten Years.

[[Page 21461]]

Rating Factor 4: Leveraging Resources (10 Points)

    (Exhibit 4B Non-Housing Program Resources Must Be Complete and You 
Must Provide Letters of Firm Commitment From the Donor With the Amount 
of Cash or In-Kind Contribution) This factor addresses the ability of 
the applicant to secure non-HUD resources. This factor measures the 
extent to which you have established partnerships with other entities 
to secure resources for your proposed program. Each commitment 
described in the narrative for this Factor must have a firm commitment 
letter. Grantees who leverage significant resources will receive a 
greater number of points.
    HUD will evaluate the extent to which firm commitments of resources 
are obtained from Federal, State, local, and private and nonprofit 
sources. HUD will award a greater number of points based upon a 
comparison of the extent of leveraged funds and the requested 
Youthbuild grant. The greater the amount of resources leveraged, the 
higher the points that will be awarded. In assigning points for this 
criterion, HUD will consider the level of non-applicant resources 
obtained for cash or in-kind contributions to cover the following kinds 
of areas:
    (1) Social services (i.e., counseling and training);
    (2) Use of existing vocational, adult, and bilingual educational 
courses;
    (3) Donation of labor, resource personnel, supplies, teaching 
materials, classroom, and/or meeting space; and
    (4) Other commitments. In rating this element, HUD will consider 
only those contributions for which current firm commitments have been 
provided. HUD will evaluate the level of resources from other 
organizations and agencies proposed based on their importance to the 
total program. Leveraging will only be counted if you have secured a 
firm financial commitment. A firm commitment letter means an agreement 
by which an applicant's partner or contributing entity agrees to 
perform an activity specified in the application and demonstrates the 
financial capacity to deliver the resources necessary to carry out the 
activity, and commits the resources to the activity either in cash, 
through in-kind services or contributions and is irrevocable, subject 
only to approval and receipt of a FY 2003 Youthbuild grant.
    For all applicants, each letter of commitment must include the 
organization's name, the applicant's name, the proposed program, the 
proposed total level of commitment and responsibilities as they relate 
to the proposed program. The commitment letter must also be signed by 
an official of the organization legally able to make commitments on 
behalf of the organization and not earlier than the date that this NOFA 
is published. In documenting a firm commitment, the applicant's partner 
or contributing entity must:
    (i) Specify the authority by which the commitment is made, the 
amount of the commitment and the use of funds. If the committed 
activity is to be self-financed, the applicant's partner or 
contributing entity must evidence its financial capability through a 
corporate or personal financial statement or other appropriate means. 
If any portion of it is to be financed through a lending institution, 
the participant must evidence the institution's commitment to fund the 
commitment.
    (ii) State the amount and use of the commitment, and the 
relationship of the commitment to the proposed investment; and
    (iii) Affirm that its investment is contingent only upon receipt of 
FY 2003 Youthbuild funds and state a willingness on the part of the 
signatory to sign a legally binding commitment (conditioned on HUD 
environmental review and approval of a property, where applicable) upon 
award of the grant.
    Resources from other Federal, State, Local governments or Private 
Entities. HUD encourages use of existing housing and homeless 
assistance programs administered by HUD or other Federal, State, local 
governments, or private and nonprofit housing programs as part of your 
Youthbuild program. In addition, HUD encourages use of other non-
Youthbuild funds available for vocational, adult, and bilingual 
education programs or for job training under the Workforce Investment 
Act and the Personal Responsibility and Work Opportunity Reconciliation 
Act of 1996.
    Grantees who leverage significant resources will receive more 
points.
    (1) Public sector sources--Federal, State, or local government 
sources to provide resources to carry out Youthbuild activities. (5 
points)
    (2) Private or nonprofit sector sources to provide resources to 
carry out Youthbuild activities. (5 points)

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    This factor emphasizes HUD's commitment to ensuring that applicants 
keep promises made in their application and assesses their performance 
to ensure performance goals are met. Achieving results means you, the 
applicant, have clearly identified the benefits, or outcomes of your 
program. Outcomes are ultimate goals. Benchmarks or outputs are interim 
activities or products that lead to the ultimate achievement of your 
goals. Program evaluation requires that you, the applicant, identify 
program outcomes, interim products or benchmarks, and performance 
indicators that will allow you to measure your performance. Performance 
indicators should be objectively quantifiable and measure actual 
achievements against anticipated achievements. Your Evaluation Plan 
should identify what you are going to measure, how you are going to 
measure it, and the steps you have in place to make adjustments to your 
work plan if performance targets are not met within established 
timeframes.
    Applicant should agree to cooperate with any HUD-approved 
evaluation by making staff available for interview, providing lists of 
participants and their contact information, and making available files 
under appropriate assurance of confidentiality of records.
    Program outcomes for the Youthbuild Program must include:
    (1) Number of participants;
    (2) Number of housing units constructed;
    (3) Number of housing units rehabilitated.
    (4) Number of GED's or certificates attained by participants 
(numerator: of those who are enrolled in education, the number of 
participants who attain a diploma, GED or certificate; denominator: 
those who are enrolled in education).
    (5) Number of participants placed in employment or education 
(numerator: of those who are not in education or employed at 
registration, the number of participants who have entered employment, 
the military or enrolled in post secondary education and/or advanced 
training/occupational skills training by the end of the first quarter 
after exit; denominator: of those who are not in education or employed 
at registration, the number of participants who exit during the 
quarter); and
    (6) Literacy and numeracy gains (measures the increase in literacy 
and numeracy skills of participants through a common assessment tool 
administered at program registration and regular intervals thereafter).
    Applicants are required to complete the Logic Model form (see 
appendix to the General Section). This rating factor reflects HUD's 
goal to embrace high standards of ethics, management and 
accountability.

[[Page 21462]]

VII. Application Submission Requirements

    (A) Site Access Submission Requirements. You must submit 
identification of specific housing sites, and firm evidence of site 
access.
    (1) Guidance on evidence of site access:
    a. If the applicant or joint applicant has a contract or option to 
purchase the property, you should provide a statement to that effect 
and include a copy of the contract or option;
    b. If a third party owns the property or has a contract or option 
to purchase, that third party must provide a letter to you stating the 
nature of the ownership and specifically providing you with access to 
the property for the purposes of the program and the time frame in 
which the property will be available. In the case of a contract or 
option, include a copy of the document; and
    c. You must provide the required certification that the proposed 
activities are consistent with the HUD-approved Consolidated Plan in 
accordance with 24 CFR part 91 and referenced in the General Section of 
the SuperNOFA.
    (B) Category 3 applicants only. You must state that the proposed 
project to be established will be located in an underserved and rural 
area as defined in Section (VI)(B)(3) of this notice.
    (C) Application Items. Your application must contain the items 
listed in this section. These items include the standard forms, 
certifications, and assurances listed in the General Section of the 
SuperNOFA that are applicable to this funding (collectively, referred 
to as the ``standard forms''). The standard forms can be found in 
Appendix B to the General Section of the SuperNOFA. The remaining 
application items that are forms (i.e., excluding such items as 
narratives, letters), referred to as the ``non-standard forms'' can be 
found as Appendix B to this program section of the SuperNOFA. The items 
are as follows:
    (1) HUD-424, Application for Federal Assistance.
    (2) HUD-424B, Applicant Assurances and Certifications.
    (3) HUD-424C, Budget Information for Construction Program.
    (4) HUD-2880, Applicant/Recipient Disclosure/Update Form.
    (5) SF-LLL, Disclosure of Lobbying Activities (if applicable);
    (6) Letters from property owners allowing access to the housing 
site for construction training.
    (7) Submission of 501(c)(3) status and/or letter certifying non-
profit status if the applicant is a public non-profit organization.
    (8) Narrative Response to Factors for Award.

Factor 1--Capacity of the Applicant and Relevant Organizational 
Experience
Factor 2--Need/Extent of the Problem
Factor 3--Soundness of Approach, including the following non-narrative 
items:

    (a) letters from non-applicant resource providers describing 
contributions or support, (b) documentation necessary to complete 
environmental review (Exhibit 2C15), and description of relocation, if 
applicable.

Factor 4--Leveraging Resources, including your letters(s) evidencing 
the leveraged commitment(s), which will not be counted in the 15 page 
limitation.
Factor 5--Achieving Results and Program Evaluation.

    (9) HUD-2990, Certification of Consistency with the EZ/EC Strategic 
Plan;
    (D) The total narrative response to all factors identified in 
Section VI(C)(13) of this program NOFA must not exceed 15 pages, and 
must be submitted on 8.5'' by 11'' paper, using a 12 point font, with 
lines double-spaced and printed only on one side. Please note that 
submitting pages in excess of the page limit will not disqualify your 
application. However, HUD will neither review nor consider the 
information on any excess pages, which may result in a lower score or 
failure to meet a threshold.

VIII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

IX. Environmental Requirements

    (A) Environmental Reviews. Environmental procedures apply to HUD 
approval of grants when you propose to use Youthbuild funds to cover 
any costs for the lease, acquisition, rehabilitation, or new 
construction of real property proposed for housing project development. 
Environmental procedures do not apply to HUD approval of your 
application when you propose to use your Youthbuild funds solely to 
cover costs for classroom and/or on-the-job construction training and 
support services.
    If you propose to use your Youthbuild funds to cover any costs of 
the lease, acquisition, rehabilitation, or new construction of real 
property, you must submit all relevant environmental information in 
your application to support HUD decision-making in accordance with the 
environmental procedures and standards set forth in HUD Regulation 24 
CFR 585.307.

X. Authority

    This program is authorized under subtitle D of title IV of the 
Cranston-Gonzalez National Affordable Housing Act, as added by section 
164 of the Housing and Community Development Act of 1992 (Pub. L. 102-
550, 106 Stat. 3723, 42 U.S.C. 12899). The Youthbuild Program 
regulations are found in 24 CFR part 585.

Appendix A--Instructions for Completion of Youthbuild Environmental 
Requirements (Exhibit 2C(15))

A. Instructions to Applicants

    1. If you propose to use Youthbuild funds to cover any costs of 
the lease, acquisition, rehabilitation, or new construction or real 
property, you shall submit all relevant environmental information in 
your application to support HUD decision making in accordance with 
the environmental procedures and standards set forth in 24 CFR 
585.307. For each proposed Youthbuild property for which HUD 
environmental procedures apply, you are to prepare a separate 
Exhibit 2C(15) in which you supply HUD with environmental threshold 
information and letters from qualified data sources (see definition 
below) which support the information. HUD will review your 
submission and determine how, if necessary, HUD will comply with any 
Federal laws and authorities that may be applicable to your property 
proposed for Youthbuild funding. If environmental procedures apply 
and Exhibit 2C(15) with supporting documentation is not included 
then the application will be deemed ineligible.
    You are to follow these instructions for preparing Exhibit 
2C(15). The instructions advise you on how to obtain and document 
certain information to be supplied to HUD in this exhibit. Before 
selecting a property for Youthbuild funding, you should read these 
instructions and be advised that HUD encourages you to select, to 
the extent practicable, properties and locations that are free of 
environmental hazards and problems discussed in these instructions. 
The responses to the environmental criteria in Exhibit 2C(15) will 
be used to determine environmental approval or disapproval by HUD of 
proposals for physical development of properties.
    2. After selecting a property for proposed Youthbuild funding, 
you are to determine the activities to be undertaken with your 
Youthbuild funds. You are to indicate in Section E whether the 
Youthbuild funds will be used for:
    (a) Lease or purchase of a property;
    (b) Minor rehabilitation or
    (c) Major rehabilitation; or
    (d) New construction of housing.
    The activities proposed for Youthbuild funding will determine 
the kind of data that you will need to obtain from a qualified data 
source in order to complete Exhibit 2C(15).
    3. Once you have selected a property and determined the 
activities for Youthbuild funding, you are advised to check with 
your city or county agency that administers HUD's

[[Page 21463]]

Community Development Block Grant program and performs environmental 
reviews, or the local planning agency. This course of action is 
recommended in view of the fact that most, if not all of the data 
needed for preparing Exhibit 2C(15) is readily available from the 
local community development agency and the local planning agency. 
You are advised to ask the environmental staff of those agencies the 
following questions:
    (a) Has the agency ever prepared an environmental review of the 
proposed Youthbuild property or the neighborhood in which the 
property is located, and if so, would it provide a copy to the 
applicant for use by HUD;
    (b) Would the agency assist you in completing section G; or if 
the agency is not able to help complete any item in section G, would 
the agency advise you which local or State agency is the appropriate 
qualified data source for obtaining the information.
    Also, you should check with the local planning agency before 
proceeding elsewhere for the information.
    You are advised that the cost of preparing information and 
analyses needed for Exhibit 2C(15) is an eligible cost under the 
Youthbuild program and is reimbursable if you are approved for a 
grant.
    4. Key terms used in these instructions are defined in the 
following section. Most of the other terms are technical and their 
definition would be known to qualified data sources.
    (a) Qualified data source means any Federal, State or local 
agency with expertise or experience in environmental protection 
(e.g., the local community development agency; the land planning 
agency; the State environmental protection agency; the State 
Historic Preservation Officer) or any other source qualified to 
provide reliable information on the particular subject. Please 
attach a letter supporting the information from each qualified data 
source to Exhibit 2C(15).
    (b) Minor rehabilitation refers to proposed repairs and 
renovations to an existing building:
    (i) Where the estimated cost of the work is less than 75 percent 
of the property value after completion;
    (ii) That does not involve changes in land use from residential 
to nonresidential, or from nonresidential to residential;
    (iii) That does not involve the demolition of one or more 
buildings, or parts of a building, containing the primary use served 
by the project; and
    (iv) That does not increase unit density by more than 20 
percent.
    For minor rehabilitation of a building located in a floodplain, 
the criteria for substantial improvement modify this definition. 
(See Item B 3 below)
    (c) Major rehabilitation refers to proposed repairs and 
renovations to an existing building:
    (i) Where the estimated cost of the work is 75 percent or more 
of the property value after completion; or
    (ii) That involves changes in land use from residential to 
nonresidential, or from nonresidential to residential; or
    (iii) That involves the demolition of one or more buildings, or 
parts of a building, containing the primary use served by the 
project; or
    (iv) That increases unit density by more than 20 percent.
    (d) Multifamily housing means any residential building that 
contains five or more apartments or rooming units.
    (e) Single-family housing means any residential building that 
contains one-to-four dwelling units.
    Because each Federal environmental law or authority has 
compliance requirements that differ according to the type of 
proposed activity to be funded, you are required to supply 
information in Exhibit 2C(15) only for the type of activity for 
which the Youthbuild grant will be used.
    (f) If you propose new construction or major rehabilitation of 
multifamily housing, you must supply complete and reliable 
environmental threshold information for items 1 through 13 in 
section G.
    (g) If you propose new construction of single family housing, 
you must supply complete and reliable environmental threshold 
information for items 1 through 12 in section G.
    (h) If you propose minor rehabilitation of multifamily or 
single-family housing, or the purchase or lease of a property, you 
must supply complete and reliable environmental threshold 
information for items 1 through 7 in section G.
    5. Applicants subject to HUD's environmental procedures are to 
submit Exhibit 2C(15) and accompanying documentation to HUD with the 
applications for grant assistance. Such applicants are prohibited 
from committing or expending State, local or other funds in order to 
undertake property rehabilitation, construction (including 
demolition), or acquisition (including lease), until HUD and the 
grantee execute a grant agreement for the proposed Youthbuild 
project.
    6. HUD reserves the right to disqualify any application where 
one or more environmental thresholds are exceeded if HUD determines 
that the compliance review cannot be conducted and satisfactorily 
completed within the HUD review period for Youthbuild applications.

B. Environmental Threshold and Documentation Requirements

    The threshold and documentation requirements for each of the 
Federal environmental laws and authorities are described below, 
following the same order as they appear in section G.
    1. Site within designated coastal barrier resources:
    Threshold: Youthbuild applicants are prohibited by Federal law 
from using Federal financial assistance for properties, if the 
properties are located within designated coastal barriers of the 
Atlantic Ocean, Gulf of Mexico, and the Great Lakes (Coastal Barrier 
Resources Act, as amended, 16 U.S.C. 3501).
    * Documentation: You are to select either A or B for the 
condition that best describes the property and report the option 
selected in item 1 of section G.
    A. Your program operates in a community that does not contain 
any shores along the Atlantic Ocean, the Gulf of Mexico, or the 
Great Lakes.
    B. Your program operates in a community that does contain shores 
along the Atlantic Ocean, the Gulf of Mexico, or the Great Lakes, 
you must provide HUD with a finding made by a qualified data source 
stating that the proposed property is not located within a 
designated coastal barrier resource by citing the map panel number 
of the official maps issued by the Department of the Interior (DOI) 
on the basis of which the finding was made.
    2. Site contaminated with toxic chemicals and radioactive 
materials:
    Threshold: Under HUD policy, as described in 24 CFR 50.3(i), HUD 
will not approve the provision of financial assistance to 
residential properties on sites where contamination could affect the 
health and safety of occupants or conflict with the intended 
utilization of the property. Sites known or suspected to be 
contaminated by toxic chemicals or radioactive materials include but 
are not limited to sites: (i) Listed on either an EPA Superfund 
National Priorities List (NPL) or CERCLA (Comprehensive 
Environmental Response, Compensation, and Liability Act) List, or 
equivalent State list; (ii) located within 3,000 feet of a toxic or 
solid waste landfill site; or (iii) with an underground storage tank 
(which is not a residential fuel tank).
    * Documentation: You are to select either A or B for the 
condition that best describes property and report the option 
selected in item 2 of section G.
    A. You are providing HUD with a finding made by a qualified data 
source stating that the proposed Youthbuild property and any 
neighboring properties do not contain any sites known or suspected 
to be contaminated with toxic chemicals and radioactive materials.
    B. You are providing any site contamination data by a qualified 
data source in your letter for HUD's evaluation of contamination 
and/or suspicion of any contamination of a proposed property or any 
neighboring properties.
    3. Site affecting a floodplain:
    Threshold: A property located within a floodplain and proposed 
for funding is subject to Executive Order 11988, Floodplain 
Management. The Executive Order directs HUD to avoid, where 
practicable, proposed financial support for any floodplain property, 
whenever HUD has options to approve properties in flood-free 
locations. The Order does not apply to existing single-family 
properties proposed for purchase or lease except for: (a) Property 
that is located within a floodway or coastal high hazard area; and 
(b) substantial improvement. Substantial improvement for flood 
hazard purposes means any property rehabilitation which: (i) 
Increases the unit density of the property; or (ii) equals or 
exceeds 50 percent of the market value of the property before 
rehabilitation, but excluding the costs for correcting health, 
sanitary, and safety code violations. Note: Proposed funding for 
substantial improvement and new construction are subject to the 
Executive Order decision-making process. This may result in a 
disqualification of your application (refer above to number 7 under 
``Instructions to Applicants'').

[[Page 21464]]

    * Documentation: You are to select A or B for the condition that 
best describes your property and report the option selected in item 
3 of section G.
    A. You are providing HUD with a finding made by a qualified data 
source stating that the property is not located within the Special 
Flood Hazard Area (SFHA).
    B. You are providing HUD with a finding made by a qualified data 
source that the property is located within the Special Flood Hazard 
Area (SFHA) and indicating if the property is located within a 
floodway or coastal high hazard area.
    The information for A and B must provide HUD with the flood map 
panel number obtained either from the official maps issued for the 
National Flood Insurance Program or from the property appraisal 
report used to make the finding.
    For all proposed rehabilitation of properties that are located 
within a SFHA, you must provide HUD with estimates of: (1) The 
property value before rehabilitation, and (2) the cost of the 
proposed rehabilitation. Provide the estimates in section F.
    If the property is found to be located within a SFHA, proceed to 
item 4 on flood insurance protection. Otherwise proceed to item 5.
    4. Building requiring flood insurance protection:
    Threshold: HUD will estimate the amount and period of flood 
insurance coverage that is to be made a condition of approval of any 
HUD financial assistance for a building located within a Special 
Flood Hazard Area (SFHA). The Flood Disaster Protection Act of 1973 
requires owners of HUD-assisted buildings to purchase and maintain 
flood insurance protection as a condition of approval of any HUD 
financial assistance for the proposed purchase, rehabilitation, or 
new construction of any SFHA building. The law prescribes the 
coverage period and dollar amount of flood insurance protection.
    Proof of Purchase of Flood Insurance Protection: You must 
provide HUD with proof of purchase of flood insurance protection for 
any proposed Youthbuild building located within the SFHA, whenever 
HUD funding is being used for property purchase, rehabilitation, or 
new construction. The standard documentation for compliance is the 
Policy Declarations form issued by the National Flood Insurance 
Program (NFIP) or issued by any property insurance company offering 
coverage under the NFIP. Whenever the requirement applies to 
coverage which extends to future years, the grant agreement will 
require that the insured has its insurer automatically forward to 
HUD, in the same manner as to the insured, an information copy of 
the Policy Declarations form, which is used to verify compliance. 
The Youthbuild applicant's responsibility ceases in cases where a 
mortgage loan is approved requiring flood insurance as condition of 
loan approval by a lender (other than the Youthbuild applicant), 
whose responsibility is to assure flood insurance coverage for the 
loan.
    * Documentation: You are to select either A or B for the 
condition that best describes your property and report the option 
selected in item 4 of section G.
    A. You already own the property and attach a copy of the Policy 
Declarations form confirming that a current flood insurance policy 
is in effect and the policy provides adequate coverage for the 
building proposed for the Youthbuild project located within the 
Special Flood Hazard Area.
    B. After you have purchased (or constructed, in the case of 
proposed new construction) the Youthbuild property, you must obtain 
and maintain flood insurance protection. For the term and amount of 
coverage prescribed by law, you must provide HUD with a copy of the 
Policy Declarations form confirming that the flood insurance policy 
is in effect and the policy provides adequate coverage for the 
Youthbuild building located within the Special Flood Hazard Area.
    5. Site within clear zones or accident potential zones of 
airports and airfields:
    Threshold: HUD policy as described in 24 CFR part 51, subpart D 
applies to HUD approval of financial assistance to: (a) Properties 
located within clear zones; and (b) in the case of new construction 
or major rehabilitation, properties located within accident 
potential zones.
    (a) Clear zones: New construction and major rehabilitation of a 
property that is located on a clear zone site is prohibited. HUD 
financial assistance in a clear zone is allowed only for the 
proposed lease, purchase, or minor rehabilitation of properties (24 
CFR 51.302(a)). For HUD funding approval for any property in a clear 
zone: (a) HUD will give advance written notice to the prospective 
property buyer in accord with 24 CFR 51.303(a)(3); and (b) a copy of 
the HUD notice signed by the prospective property buyer will be 
placed in the property file. The written notice informs the 
prospective property buyer of: (i) The potential hazards from 
airplane accidents, which studies have shown more likely to occur 
within clear zones than in other areas around the airport/airfield; 
and (ii) the potential acquisition by airport or airfield operators, 
who may wish to buy the property at some future date as part of a 
clear zone acquisition program.
    (b) Accident potential zones: For properties located within the 
accident potential zone (APZ), HUD shall determine whether the use 
of the property is generally consistent with Department of Defense 
``Land Use Compatibility Guidelines for Accident Potential Zones.''
    * Documentation: You are to select either A or B for the 
condition that best describes your property and report the option 
selected in item 5 of section G.
    A. The property is not located within 3,000 feet of a civil 
airport or military airfield.
    B. If your property is located within 3,000 feet of a civil 
airport or military airfield, you must provide HUD with a finding 
from the airport operator stating whether or not the property is 
located within a runway clear zone at a civil airport, or a clear 
zone or accident potential zone at a military airfield.
    For properties that are located within a runway clear zone or a 
clear zone or accident potential zone, if you propose to 
rehabilitate such a property you must provide HUD with estimates of: 
(i) The cost of the proposed rehabilitation, and (ii) the property 
value after completion of the rehabilitation. The estimates are to 
be provided in section F.
    6. Site is or affects an historic property:
    Threshold: Only if a property is proposed for rehabilitation or 
new construction must HUD in consultation with the State Historic 
Preservation Officer (SHPO), and following the Department of the 
Interior's Standards and Guidelines for Evaluation, make a 
determination whether the property is:
    (a) Listed on or formally determined to be eligible for listing 
on the National Register of Historic Places;
    (b) Located within or directly adjacent to an historic district; 
or
    (c) A property whose area of potential effects includes an 
historic district or property.
    Historic properties and districts are subject by law to special 
protection and historic preservation processing, which HUD must 
perform to comply with the regulations of the Advisory Council on 
Historic Preservation (ACHP: 36 CFR part 800). Note: If you are 
using information from the SHPO as a qualified data source you need 
to allow sufficient time to obtain the information from the SHPO. 
You may wish to make special arrangements with the SHPO for rapid 
review of the proposed property where this is practicable. In 
addition, for properties determined to be historic properties, HUD 
will require 30 to 90 days in most cases for HUD to perform historic 
preservation compliance with the ACHP regulations. This may result 
in a disqualification of the application (refer above to number 7 
under ``Instructions to Applicants'').
    * Documentation: You are to select one of the following options 
that best describe the condition of your property and report the 
option selected in item 6 of section G.
    A. You propose financial assistance for rehabilitation or new 
construction, and are providing HUD with a SHPO's finding that the 
proposed Youthbuild activity:
    1. Is located within an area where there are no historic 
properties; or
    2. Will have no effect on historic properties; or
    3. Will have an effect on historic properties not considered 
adverse.
    B. You propose financial assistance for rehabilitation or new 
construction, and are providing HUD with a SHPO's finding that the 
proposed Youthbuild activity will have an adverse effect on historic 
properties.
    C. You are providing HUD with a copy of a letter from the SHPO 
stating any reasons for not being able to provide you with the 
requested information and finding.
    7. Site near hazardous industrial operations:
    Threshold: Properties that are located near hazardous industrial 
operations handling fuels or chemicals of an explosive or flammable 
nature are subject to HUD safety standards (24 CFR 51, Subpart C). 
However, under the Youthbuild program, these standards would apply 
only if you propose: (a) construction of a building; (b) conversion 
of a non-residential land use to a residential land use including 
making habitable a building condemned for habitation; or (c) 
rehabilitation that increases the density of a residential structure 
by increasing the number of dwelling or rooming units. In the case 
of tanks containing common liquid

[[Page 21465]]

fuels, the requirement for an acceptable separation distance (ASD) 
calculation only applies to storage tanks that have a capacity of 
more than 100 gallons. *Documentation: You are to select one of the 
following options that best describes the condition of the property, 
and report the option selected in item 7 of section G.
    A. The proposed project does not include: (1) Construction of a 
building; (2) conversion of a non-residential land use to a 
residential land use including making habitable a building condemned 
for habitation; or (3) rehabilitation that increases the density of 
a residential structure by increasing the number of dwelling or 
rooming units.
    B. The proposed project includes: (1) Construction of a 
building; (2) conversion of a non-residential land use to a 
residential land use including making habitable a building condemned 
for habitation; or (3) rehabilitation that increases the density of 
a residential structure by increasing the number of dwelling or 
rooming units; and you are providing HUD with a finding by a 
qualified data source that the proposed property is not located 
within the immediate vicinity of hazardous industrial operations 
handling fuel or chemicals of an explosive or flammable nature by 
citing data used and the maps used.
    C. The applicant proposes: (1) Construction of a building; (2) 
conversion of a non-residential land use to a residential land use 
including making habitable a building condemned for habitation; or 
(3) rehabilitation that increases the density of a residential 
structure by increasing the number of dwelling or rooming units. The 
grantee provides HUD a finding made by a qualified data source 
stating: (1) That the proposed property is located within the 
immediate vicinity of hazardous industrial operations handling fuel 
or chemicals of an explosive or flammable nature; (2) the type and 
scale of such hazardous industrial operations; (3) the distance of 
such operations from the proposed property; (4) a preliminary 
calculation of the acceptable separation distance (ASD) between such 
operations and the proposed property; and (5) a recommendation as to 
whether it is safe to use the property in accord with 24 CFR Part 
51, subpart C.
    8. Site near high noise source:
    Threshold: For new construction which is to occur in high noise 
areas (i.e. exceeding 65 decibels), applicants shall incorporate 
noise attenuation features to the extent required by HUD 
environmental criteria and standards contained in Subpart B (Noise 
Abatement and Control) of 24 CFR part 51. Approvals in a Normally 
unacceptable noise zone require a minimum of 5 decibels additional 
sound attenuation for buildings having noise-sensitive uses if the 
day-night average sound level is greater than 65 decibels but does 
not exceed 70 decibels, or a minimum of 10 decibels of additional 
sound attenuation if the day-night average sound level is greater 
than 70 decibels but does not exceed 75 decibels.
    Proposed housing sites with above 75 decibels are unacceptable 
and the noise attenuation measures require the approval of the 
Assistant Secretary for Community Planning and Development. In 
Unacceptable noise zones, HUD strongly encourages conversion of 
noise-exposed sites to non-housing land uses compatible with the 
high noise levels.
    For major rehabilitation projects involving five or more 
dwelling units located in the ``Normally Unacceptable'' and 
``Unacceptable'' noise zones, HUD actively seeks to have project 
sponsors incorporate noise attenuation features, given the extent 
and nature of the rehabilitation being undertaken and the level of 
exterior noise exposure.
    *Documentation: You are to select A or B for the condition that 
best describes their project and report the option selected in item 
8 of section G.
    A. You are providing HUD with a finding made by a qualified data 
source stating that the property proposed by the applicant for a 
major rehabilitation or new construction project involving five or 
more dwelling units is not located within: (1) 1,000 feet of a major 
noise source, road, or highway; (2) 3,000 feet of a railroad; or (3) 
1 mile of a civil or 5 miles of a military airfield.
    B. The applicant provides HUD with a finding made by a qualified 
data source: (1) Stating that the plans for the property proposed by 
the applicant for a major rehabilitation or new construction project 
involving five or more dwelling units will incorporate noise 
attenuation features in accord with HUD environmental criteria and 
standards contained in Subpart B (Noise Abatement and Control) of 24 
CFR part 51; (2) stating whether the property is located within a 
``Normally Unacceptable'' or ``Unacceptable'' noise zone; and (3) 
providing HUD plans and a statement of the anticipated interior 
noise levels.
    9. Site affecting coastal zone management:
    Threshold: Only for proposed activities involving new 
construction or major rehabilitation of multifamily housing does the 
Coastal Zone Management (CZM) authority apply. Projects that can 
affect the coastal zone must be carried out in a manner consistent 
with the approved State coastal zone management program under Sec. 
307 of the Coastal Zone Management Act of 1972, as amended.
    *Documentation: You are to select either A or B for the 
condition that best describes the project and report the option 
selected in item 9 of section G.
    A. You state that your project is not located within a coastal 
zone, as defined by the States Coastal Zone Management Plan.
    B. If your project is located within a coastal zone, you are 
providing HUD with a finding made by the State CZM agency that the 
project proposed by the applicant is consistent with the approved 
State coastal zone management program.
    10. Site affecting a sole source aquifer:
    Threshold: The sole source aquifer authority applies primarily 
to activities involving proposed new construction or conversion to 
housing of non-residential property. Projects which can affect 
aquifers designated by the Environmental Protection Agency (EPA) 
must be reviewed for impact on such designated aquifer sources. The 
Safe Drinking Water Act of 1974 requires protection of drinking 
water systems which are the sole or principal drinking water source 
for an area and which, if contaminated, would create a significant 
hazard to public health.
    *Documentation: You are to select either A or B for the 
condition that best describes their project and report the option 
selected in item 10 of section G.
    A. You are providing HUD with a finding made by a qualified data 
source stating that the proposed property is not located on nor does 
it affect a sole source aquifer designated by EPA.
    B. If your project proposes new construction or conversion 
activities that are located on or may affect any sole source aquifer 
designated by the EPA, you are identifying the aquifer and providing 
HUD with an explanation of the effect on the aquifer from a 
qualified data source, and/or a copy of any comments on the proposed 
project that have been received from the EPA Regional Office as well 
as from any State or local agency with jurisdiction for protecting 
the drinking water system.
    11. Site affecting endangered species:
    Threshold: The Endangered Species Protection (ESP) authority 
applies primarily to activities involving proposed new construction 
or conversion to housing of a non-residential property. Projects 
which can affect listed or proposed endangered or threatened species 
or critical habitats require consultation with the Department of the 
Interior or the Department of Commerce in compliance with the 
procedure of Section 7 of the Endangered Species Act of 1973, as 
amended.
    *Documentation: You are to select either A or B for the 
condition that best describes the property and report the option 
selected in item 11 of section G.
    A. If your project proposes new construction or conversion 
activities, you are providing HUD with a finding made by a qualified 
data source that the project is not likely to affect any listed or 
proposed endangered or threatened species or critical habitat. The 
finding shall indicate whether the project is located within a 
critical habitat, and if so, explain why the project is not likely 
to affect the species or habitat.
    B. If your project proposes new construction or conversion 
activities that are likely to affect listed or proposed endangered 
or threatened species or critical habitat, you are providing HUD 
with a statement from a qualified data source explaining the likely 
affect, and/or a finding made by the Fish and Wildlife Service of 
the Department of the Interior or the National Marine Fisheries 
Service of the Department of Commerce stating as acceptable the 
proposed mitigation that you will provide to protect any affected 
endangered or threatened species or critical habitat.
    12. Site affecting a designated wetland:
    Threshold: New construction or conversion to housing of a non-
residential property located within a designated wetland is subject 
to Executive Order 11990, Protection of Wetlands. This Executive 
Order directs HUD to avoid, where practicable, financial support for 
new construction on wetland property. Note: Proposed funding for new

[[Page 21466]]

construction or conversion is subject to the Executive Order 
decision making process. This may result in a disqualification of 
the application (refer above to number 7 under ``Instructions to 
Applicants'').
    *Documentation: You are to select A or B for the condition that 
best describes the property and report the option selected in item 
12 of section G.
    A. You are providing HUD with a finding made by a qualified data 
source stating that the property is not located within a designated 
wetland where new construction or conversion is proposed.
    B. You are providing HUD with a finding made by a qualified data 
source that the property is located within a designated wetland, 
which applies only to property where new construction or conversion 
is proposed.
    The information for A and B must provide HUD with the wetland 
panel number obtained from official maps issued by the Department of 
the Interior on the basis of which the finding was made, or where 
DOI has not mapped the area, a letter or other documentation from 
the Army Corps of Engineers or other Federal agency.
    13. Significant impact to the human environment:
    Threshold: HUD must perform an environmental assessment of any 
property proposed for major rehabilitation or new construction 
except for an individual single-family property having one-to-four 
dwelling units or a scattered site project of five or more units 
where the sites are more than 2,000 feet apart and there are not 
more than four units on any one site. It is the policy of the 
Department to reject proposals which have significant adverse 
environmental impacts and to encourage the modification of projects 
in order to enhance environmental quality and minimize environmental 
harm. This policy is authorized by the National Environmental Policy 
Act (NEPA) and the implementing regulations of the Council on 
Environmental Quality and HUD's Environmental Rule at 24 CFR part 
50.
    *Documentation: You are to provide HUD with any information on 
any adverse environmental impacts that affect the property or that 
the project would create. You are to report this data on a separate 
sheet and attach it to Exhibit 2C(15). Examples of adverse impacts 
are: soil instability and erodibility; natural or person-made 
hazards and nuisances; air pollution; inadequate infrastructure 
(e.g., water supply, waste water treatment, storm water management, 
solid waste collection), inadequate public services (i.e., fire, 
police, health care, social services, schools, parks) and 
transportation; and encroachment on prime farmlands and wild and 
scenic river areas. You are to identify any significant impacts to 
the human environment.

Appendix B

    The non-standard forms, which follow, are required for your 
Youthbuild application.
BILLING CODE 4210-32-P

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[[Page 21479]]



Funding Availability for the Rural Housing and Economic Development 
Program

Program Overview

    Purpose of Program: The purpose of the Rural Housing and Economic 
Development (RHED) program is to build capacity at the State and local 
level for rural housing and economic development and to support 
innovative housing and economic development activities in rural areas. 
The funds made available under this program will be awarded 
competitively, through a selection process conducted by HUD in 
accordance with HUD Reform Act.
    Available Funds: Approximately $24,837,500 million will be awarded 
in Fiscal Year (FY) 2003 plus any additional funds that would be 
available through recapture.
    Eligible Applicants: Local rural non-profit organizations, 
community development corporations, federally recognized Indian tribes, 
State housing finance agencies and State economic development and/or 
community development agencies.
    Application Deadline: May 27, 2003.
    Match: None.

Additional Information

    If you are interested in applying for funding under this program, 
please carefully review the General Section of this SuperNOFA and the 
following information:

I. Application Due Date, Further Information and Technical Assistance

    Application Due Date: Applications for RHED grants must be received 
by the deadline date. Applications received after the deadline date 
will not be considered.
    See the General Section of this SuperNOFA for specific procedures 
governing the form of application submission).
    Applications. Your application will be considered timely filed if 
your application is received in HUD headquarters on or before 5:15 pm 
eastern standard time on the application due date.
    Address for Submitting Applications: Completed applications (one 
original and two complete copies) must be submitted to: Processing and 
Control Unit, Room 7251, Office of Community Planning and Development, 
U.S. Department of Housing and Urban Development, 451 Seventh Street, 
SW., Washington, DC 20410; ATTN: Office of Rural Housing and Economic 
Development. When submitting your application, please include your 
name, mailing address (including zip code), telephone number, and fax 
number (including area code).
    Application Kits. An application kit for the RHED program is not 
necessary for submitting an application in response to this 
announcement. This announcement contains all the information necessary 
for the submission of your application for the Rural Housing and 
Economic Development Program.
    Further Information and Technical Assistance. All information and 
materials required to submit an application for funding under the HUD 
Rural Housing and Economic Development program are included in the 
Appendix to this NOFA.
    For information concerning the HUD Rural Housing and Economic 
Development program, contact Ms. Holly A. Kelly, Economic Development 
Program Specialist, Office of Rural Housing and Economic Development, 
Office of Community Planning and Development (CPD), U.S. Department of 
Housing and Urban Development, 451 7th Street, SW., Room 7137, 
Washington, DC 20410; telephone 202-708-2290 (this is not a toll-free 
number). Persons with speech or hearing impairments may access this 
number via TTY by calling the toll-free Federal Information Relay 
Service at 1-800-877-8339.
    Prior to the application deadline, HUD staff at the number above 
will be available to provide general guidance and clarification of the 
NOFA, but not guidance in actually preparing your application. 
Following selection, but prior to award, HUD staff will be available to 
assist in clarifying or confirming information that is a prerequisite 
to the offer of an award by HUD.
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of an application. For more information about the date and 
time of this broadcast, consult the HUD Web site at www.hud.gov.

II. Amount Allocated

    (A) Available Funds. Approximately $24,837,500 million in Fiscal 
Year (FY) 2003 funding (plus any additional funds that would be 
available through recapture) is being made available through this NOFA. 
The breakdown for this funding is below.
    (B) Funding Categories and Maximum Award Amounts. HUD will award up 
to approximately $25 million on a competitive basis in the following 
funding categories. Applicants must apply for funds in only one of the 
two categories: Category (1) Capacity Building or Category (2) Support 
for Innovative Housing and Economic Development Activities. Only one 
application will be accepted from any given organization. If more than 
one application is received from any one organization, the application 
that was received in the Processing and Control Unit at HUD 
Headquarters first will be considered for funding. All subsequent 
applications will be deemed ineligible.
    Category 1 Capacity Building. HUD will award up to approximately 
$10 million to applicants for capacity building activities. This amount 
will go directly to local rural non-profits, community development 
corporations (CDCs) and federally recognized Indian tribes to increase 
an organization's capacity to support innovative housing and economic 
development activities. The maximum amount awarded to a successful 
applicant in this category will be $150,000. If you received two or 
more RHED grants for capacity building since 1999, you are not eligible 
to apply under this category.
    Category 2 Support for Innovative Housing and Economic Development 
Activities. HUD will award up to approximately $14,837,500 million to 
federally recognized Indian tribes, State Housing Finance Agencies 
(HFA)s, State community and/or economic development agencies, local 
rural non-profits and Community Development Corporations (CDCs) to 
support innovative housing and economic development activities in rural 
areas nationwide. The maximum amount awarded to a successful applicant 
in this category will be $400,000.

    Special Note: Applicants are encouraged to ensure that the 
amount of RHED funds requested are consistent throughout their 
application including on the HUD 424 ``Application for Federal 
Assistance'', the Transmittal Letter, the application narrative 
sections (Rating Factors) and the HUD 424A ``Budget Information''. 
Inconsistencies may result in discrepancies between funding amounts 
requested and amounts awarded.

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    (1) Background. There has been a growing national recognition of 
the need to enhance the capacity of local rural non-profit 
organizations, community development corporations, federally recognized 
Indian tribes, State housing finance agencies (HFAs) and State economic 
development and/or community development agencies to expand the supply 
of affordable housing and to engage in economic development

[[Page 21480]]

activities in rural areas. A number of resources are available from the 
Federal government to address these problems, including programs of the 
United States Department of Agriculture (USDA), the Economic 
Development Administration (EDA), the Appalachian Regional Commission 
(ARC), the Department of the Interior (for Indian Tribes) and HUD. The 
Rural Housing and Economic Development program has been developed to 
supplement these resources and to focus specifically on capacity 
building and promoting innovative approaches to housing and economic 
development in rural areas. In administering these funds, HUD 
encourages you to coordinate your activities supported by any of the 
above mentioned agencies.
    (2) Definitions
    Appalachia's Distressed Counties means those counties in Appalachia 
that ARC has determined to have unemployment and poverty rates that are 
150 percent of the respective U.S. rates and has a per capita income 
that is less than 67 percent of the U.S. per capita income, and has 
counties with 200 percent of the U.S. poverty rate and one other 
indicator such as percent of overcrowded housing, etc. Appendix B to 
this notice identifies ARC's list of distressed counties.
    Colonia means any identifiable, rural community that:
    (i) Is located in the state of Arizona, California, New Mexico, or 
Texas;
    (ii) Is within 150 miles of the border between the U.S. and Mexico; 
and
    (iii) Is determined to be a Colonia on the basis of objective need 
criteria, including the lack of potable water supply, lack of adequate 
sewage systems, and lack of decent, safe, sanitary, and accessible 
housing.
    Farmworker means a farm employee of an owner, tenant, labor 
contractor, or other operator raising or harvesting agricultural or 
aquacultural commodities; or a worker in the employment of a farm 
operator, handling, planting, drying, packing, grading, storing, 
delivering to storage or market, or carrying to market agricultural or 
aquacultural commodities produced by the operator. Seasonal farm 
workers are those farm employees who typically do not have a constant 
year round salary.
    A Firm commitment means the agreement by which an applicant's 
partner agrees to perform an activity specified in the application and 
demonstrates the financial capacity to deliver the resources necessary 
to carry out the activity, and commits the resources to the activity 
either in cash or through in-kind contributions and is irrevocable, 
subject only to approval and receipt of a FY 2003 RHED grant. Each 
letter of commitment should include the organization's name, the 
applicant's name, the proposed program, the proposed total level of 
commitment and responsibilities as they relate to the proposed program. 
The commitment must be written on letterhead from the participating 
organization, must be signed by an official of the organization legally 
able to make commitments on behalf of the organization and dated not 
earlier than the date of publication of this NOFA. In documenting a 
firm commitment, the applicant's partner must:
    (i) Specify the authority by which the commitment is made, the 
amount of the commitment, the use of funds and the relationship of the 
commitment to the proposed investment. If the committed activity is to 
be self-financed, the applicant's partner must evidence its financial 
capability through a corporate or personal financial statement or other 
appropriate means. If any portion of it is to be financed through a 
lending institution, the participant must provide evidence of the 
institution's commitment to fund the loan;
    (ii) Affirm that the commitment is contingent only upon the receipt 
of FY 2003 RHED funds and state a willingness on the part of the 
signatory to sign a legally binding commitment (conditioned on HUD 
environmental review and approval of a property, where applicable) upon 
award of the grant.
    Federally Recognized Indian tribe means any tribal entity eligible 
to apply for funding and services from the Bureau of Indian Affairs by 
virtue of their status as Indian Tribes. The list of federally 
recognized Indian tribes can be found in the notice published by the 
Department of the Interior on July 12, 2002, at 67 FR 46328, and is 
also available from HUD.
    Innovative housing activities means projects, techniques, methods, 
combinations of assistance, construction materials, and energy 
efficiency improvements or financing institutions or sources new to the 
eligible area, or its population. The innovative activities can also 
build upon and enhance a model that already exists.
    Local rural non-profit or Community Development Corporation means 
either:
    (i) Any private entity with tax-exempt status recognized by the 
Internal Revenue Service (IRS) which serves the eligible rural area 
involved in the application (including local affiliates of national 
organizations that provide technical and capacity building assistance 
in rural areas); or
    (ii) Any public non-profit such as a Council of Governments that 
will serve specific local non-profit organizations in the eligible 
area.
    Lower Mississippi Delta Region means the eight state, 235 county/
parish region defined by Congress in the Lower Mississippi Delta 
Development Act, Pub. L. 100-460. Appendix C to this notice identifies 
the counties referenced in the Act.
    Rural area may be defined in one of five ways:
    (i) A place having fewer than 2,500 inhabitants (within or outside 
of metropolitan areas).
    (ii) A county with an urban population of 20,000 inhabitants or 
less.
    (iii) Territory, persons, and housing units in the rural portions 
of ``extended cities.'' The U.S. Census Bureau identifies the rural 
portions of extended cities.
    (iv) Open country that is not part of or associated with an urban 
area. The USDA describes ``open country'' as a site separated by open 
space from any adjacent densely populated urban area. Open space 
includes undeveloped land, agricultural land, or sparsely settled 
areas, but does not include physical barriers (such as rivers and 
canals), public parks, commercial and industrial developments, small 
areas reserved for recreational purposes, and open space set aside for 
future development.
    (v) Any place with a population not in excess of 20,000 and not 
located in a Metropolitan Statistical Area.
    State economic development and/or community development agency 
means any state agency that has promotion of statewide or local 
community/economic development as its primary purpose.
    State housing finance agency means any state agency created to 
assist local communities and housing providers with financing 
assistance for development of housing in rural areas, particularly for 
low- and moderate-income people.
    (B) Eligible applicants. Eligible applicants for each of the 
funding categories are as follows:
    (1) For capacity building funding. If you are a local rural non-
profit, including grassroots, faith-based and other community-based 
grassroots organization, CDC, or federally recognized Indian tribe, you 
are eligible for capacity building funding to carry out innovative 
housing and economic development activities which should lead to an 
applicant becoming self-sustaining in the future.
    (2) For support for innovative housing and economic development 
activities funding. If you are a local rural non-profit organizations, 
including

[[Page 21481]]

grassroots, faith-based and other community-based grassroots 
organization, CDC, federally recognized Indian tribe, State HFA, or 
State economic development and/or community development agency, you may 
apply for funding to support innovative housing and economic 
development activities in rural areas.
    (C) Eligible activities. The following are examples of eligible 
activities under the Rural Housing and Economic Development program. 
These examples are illustrative and are not meant to limit the 
activities that you may propose in your application:
    (1) For capacity building funding. Capacity building for innovative 
rural housing and economic development involves the enhancement of 
existing organizations to carry out new functions and/or to more 
effectively perform existing functions. Activities may include, but are 
not limited to the following:
    (a) Enhancement of existing functions or creation of new functions 
to provide affordable housing and economic development in rural areas;
    (b) Acquisition of additional space and support facilities;
    (c) Salaries for additional staff needed to conduct the work, 
including financial management specialists, and economic development 
specialists;
    (d) Training of staff in the areas of financial management, 
economic development financing, housing accessibility and visitability 
standards, fair housing issues and complaint filing;
    (e) Development of business plans in order for the organization to 
be self-sustaining;
    (f) Development of Management Information Systems (MIS) and 
software to enable better and more accurate reporting of information to 
HUD and to other entities;
    (g) Development of feasibility studies and market studies;
    (h) Training on energy efficiency in construction for housing and 
commercial projects;
    (i) Housing counseling services including fair housing counseling, 
the provision of information on budgeting, access to credit and other 
federal program assistance available;
    (j) Conducting conferences or meetings with other Federal and State 
agencies to inform residents of programs, rights and responsibilities 
associated with homebuying opportunities; and;
    (k) Arranging for technical assistance to conduct needs 
assessments, conduct asset inventories and to develop strategic plans.

    Note: Administrative costs for assistance under this funding 
category may not exceed fifteen percent (15%) of the total HUD RHED 
grant award.

    (2) For support of innovative housing and economic development 
activities. This category is intended to support, but not be limited 
to, other costs for innovative housing and economic development 
activities. Activities may include, but are not limited to the 
following:
    (a) Cost for using new or innovative construction, energy 
efficiency or other techniques that will result in the design and/or 
construction of innovative housing and economic development projects;
    (b) Preparation of plans, architectural or engineering drawings;
    (c) Preparation of legal documents, government paperwork and 
applications to allow construction of housing and economic development 
activities to occur in the jurisdiction;
    (d) Financial assistance for the acquisition of land and buildings;
    (e) Demolition of property to permit construction or rehabilitation 
activities to occur;
    (f) Development of infrastructure to support the housing or 
economic development activities;
    (g) Purchase of construction materials;
    (h) Job training to support the activities of the organization;
    (i) Homeownership counseling including fair housing counseling, 
credit counseling, budgeting, access to credit, and other federal 
assistance available;
    (j) Conducting conferences or meetings with other Federal and State 
agencies to inform residents of programs, rights and responsibilities 
associated with homebuying opportunities;
    (k) Development of feasibility studies and market studies;
    (l) Development of Management Information Systems (MIS) and 
software to enable better and more accurate reporting of information to 
HUD and to other entities;
    (m) Establishing Community Development Financial Institutions 
(CDFIs), lines of credit, revolving loan funds, microenterprises, and 
small business incubators; and
    (n) Provision of direct financial assistance to homeowners/
businesses/developers, etc. This can be in the form of establishing 
default reserves, pooling/securitization mechanisms, loans, grants, 
funding existing Individual Development Accounts or similar activities.
    Applicants are reminded that they must affirmatively further fair 
housing in all their activities. Applicants should reference Section 
V(D) of the SuperNOFA General Section for clarification of AFFA 
requirements.
    Applicants should demonstrate that their activities will continue 
to serve the populations that are in need and that beneficiaries will 
have a choice of innovative housing and economic development 
opportunities as a result of these activities.

    Note: Administrative costs for assistance under this funding 
category may not exceed fifteen percent (15%) of the total HUD RHED 
grant award.

    (D) Ineligible activities. Examples of ineligible activities for 
both funding categories include:
    (a) the use of RHED grant funds for income payments to subsidize 
individuals or families;
    (b) political activities;
    (c) general governmental expenses other than expenses related to 
the administrative cost of the grant; or
    (d) projects and activities intended for personal gain or private 
use.

IV. Program Requirements

    (A) General. To be eligible for funding under this program section 
of this SuperNOFA, you must meet the threshold and statutory or 
regulatory requirements applicable to all programs set forth in Section 
V of the General Section of the SuperNOFA. In addition to the above, 
you must meet the following program specific requirements.
    (B) Accounting System Requirements. RHED requires that successful 
applicants have in place an accounting system that meets the policies, 
guidance, and requirements as described in the following applicable OMB 
Circulars and Code of Federal Regulations:
    (1) OMB Circular No. A-87 (Cost Principles Applicable to Grants, 
Contracts and Other Agreements with State and Local Governments);
    (2) OMB Circular No. A-122 (Cost Principles for Nonprofit 
Organizations),
    (3) OMB Circular No. A-133 (Audits of States, Local Governments, 
and Non-Profit Organizations);
    (4) 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Non-Profit Organizations); and
    (5) 24 CFR part 85 (Administrative Requirements for Grants and 
Cooperative Agreements to State, Local, and Federally recognized Indian 
tribal governments).
    These documents apply to the award, acceptance and use of 
assistance under the Rural Housing and Economic

[[Page 21482]]

Development program NOFA, and to the remedies for noncompliance, except 
when inconsistent with the provisions of the FY 2003 HUD Appropriations 
Act, other Federal statutes or the provisions of this NOFA.
    (C) Ethical Standards. HUD requires that all grantees adhere to 
core values and ethical business practices, as described in the General 
Section of the SuperNOFA as a condition of the award.
    (D) Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses. HUD requires 
grantees to use small businesses, small disadvantaged businesses and 
women-owned businesses in conducting your work activities, if possible. 
Please refer to Section V(F) of the General Section of the SuperNOFA 
for specific requirements.
    (E) Forms, Certifications and Assurances. Applicants are required 
to submit signed copies of the standard forms, certifications and 
assurances included in the Appendix of this NOFA signed by the managing 
officer of your organization.
    (F) Environmental Review. Selection for award does not constitute 
approval of any proposed sites. Following selection for award, HUD will 
perform an environmental review of activities proposed for assistance 
under this part, in accordance with 24 CFR part 50. The results of the 
environmental review may require that proposed activities be modified 
or that proposed sites be rejected. Applicants are particularly 
cautioned not to undertake or commit HUD funds for acquisition or 
development of proposed properties (including establishing lines of 
credit that permit financing of such activities or making commitments 
for loans that would finance such activities from a revolving loan fund 
capitalized by funds under this NOFA) prior to HUD approval of specific 
properties or areas. Each application must contain an assurance that 
you, the applicant, will assist HUD to comply with part 50; will supply 
HUD with all available relevant information to perform an environmental 
review for each proposed property; will carry out mitigating measures 
required by HUD or select alternate property; and will not acquire, 
rehabilitate, convert, demolish, lease, repair or construct property, 
nor commit or expend HUD or local funds for these program activities 
with respect to any eligible property, until HUD approval of the 
property is received. In supplying HUD with environmental information, 
grantees are to use the same guidance as provided in the Notice CPD-99-
01, entitled ``Field Environmental Processing for HUD Colonias 
Initiative (HCI) grants'' issued January 27, 1999.
    (G) Conflicts of Interest. Consultants and experts assisting HUD in 
rating and ranking applicants for funding under this NOFA are subject 
to 18 U.S.C. 208. Refer to Section V(M) of the General Section of the 
SuperNOFA.
    (H) Grant Amounts. In the event, you, the applicant, are awarded a 
grant that has been reduced (e.g. the application contained some 
activities that were ineligible or budget information did not support 
the request), you will be required to modify your project plans and 
application to conform to the terms of HUD's approval before execution 
of the grant agreement. HUD reserves the right to reduce or de-obligate 
the award if suitable modifications to the proposed project are not 
submitted by the awardee within 90 days of the request. Any 
modifications must be within the scope of the original application. HUD 
reserves the right not to make awards under this NOFA.
    (I) Grant Period. Recipients will have 36 months from the date of 
the executed grant agreement to complete all project activities.
    (J) Lead-Based Paint Hazard Control. All property assisted under 
the Rural Housing and Economic Development program is covered by the 
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846) and 
HUD's implementing regulations at 24 CFR part 35.
    (K) Adjustments to Funding. In addition to the items identified 
under Section VI(F) of the General Section of the SuperNOFA, HUD:
    (1) reserves the right to utilize this year's funding to fund 
previous year's errors prior to the rating and ranking this year's 
applications. Additionally, HUD reserves the right to reallocate funds 
between categories to achieve the maximum allocation of funds in both 
categories.
    (2) If after all eligible applicants have been selected for funding 
in Category 1 and funds remain, the remaining funds will be allocated 
to Category 2 to fund additional eligible applications in that 
category. If after all eligible applicants have been selected for 
funding in Category 2 and funds remain, the remaining funds will be 
allocated to Category 1 to fund additional eligible applications in 
that category. If a balance of funds remains, HUD reserves the right to 
utilize those funds toward the following year's competition.
    (L) Economic Opportunities for Low and Very Low Income Persons 
(Section 3). Section 3 of the Housing and Urban Development Act of 1968 
(12 U.S.C. 1702u) is applicable to the RHED program. Please see Section 
V of the General Section of the SuperNOFA.

V. Application Selection Process

    (A) Rating and Ranking. (1) General. To review and rate 
applications, HUD may establish panels which may include outside 
experts or consultants to obtain certain expertise and outside points 
of view, including views from other Federal agencies.
    (2) Rating. All applicants for funding will be evaluated against 
the criteria below. In evaluating applications for funding, HUD will 
take into account an applicant's past performance in managing funds, 
including the ability to account for funds appropriately; timely use of 
funds received either from HUD or other Federal, State or local 
programs; meeting performance targets for completion of activities; and 
number of persons to be served or targeted for assistance. HUD may use 
information relating to these items based on information at hand or 
available from public sources such as newspapers, Inspector General or 
Government Accounting Office reports or findings, hotline complaints 
that have been found to have merit, or other such sources of 
information. In evaluating past performance, HUD will deduct points 
from rating scores as specified under Rating Factor 1, Capacity of the 
Applicant and Relevant Organizational Experience, described in this 
section below.
    (3) Ranking. Applicants will be ranked separately within each of 
the two funding categories. Applicants will be selected for funding in 
accordance with their rank order in each category. An application must 
receive a minimum score of 75 points to be eligible for funding. If two 
or more applications are rated fundable and have the same score, but 
there are insufficient funds to fund all of them, the application(s) 
with the highest score for Rating Factor 2 (Need and Extent of the 
Problem) shall be selected. If applications still have the same score, 
the highest score in the following factors will be selected 
sequentially until one highest score can be determined, Rating Factor 3 
(Soundness of Approach), Rating Factor 1 (Capacity and Experience), 
Rating Factor 5 (Achieving Results and Program Evaluation) and Rating 
Factor 4 (Leveraging Resources).
    (B) Initial screening. During the period immediately following the 
application deadline, HUD will screen each application to determine 
eligibility. Applications will be rejected if they:
    (1) Are submitted by ineligible applicants (including applicants 
that do

[[Page 21483]]

not meet the threshold requirements described in the General Section of 
the SuperNOFA);
    (2) Do not serve an eligible rural area;
    (3) Do not meet the objectives of the RHED program;
    (4) Propose a program for which the majority of the activities are 
ineligible.
    (C) Rating Factors for Award Used to Evaluate and Rate 
Applications. The factors for rating and ranking applicants, and 
maximum points for each factor, are provided below. The maximum number 
of points for this program is 102. This includes 100 points for all 
five rating factors and two RC/EZ/EC bonus points, as described in the 
General Section of the SuperNOFA.
    (D) Notification of Approval and Disapproval. HUD will notify you 
whether or not you have been selected for an award. If you are 
selected, HUD's notice to you of the amount of the grant award based on 
the approved application will constitute HUD's conditional approval, 
subject to negotiation and execution of the grant agreement by HUD.
    (E) Applicant Debriefing. Any applicant can obtain a debriefing of 
their application. Please refer to Section IX(A)(4) of the General 
Section of the SuperNOFA for details on the conditions and time frames 
for requesting a debriefing. In addition, applicants requesting a 
debriefing must send a written request to Ms. Jackie Williams-Mitchell, 
Director, Office of Rural Housing and Economic Development (ORHED), at 
the address listed in Section I of this NOFA under ``For Further 
Information and Technical Assistance.''
    (F) Rating Factors. The following Rating Factors will be used to 
review, evaluate and rate your application.

Rating Factor 1--Capacity of the Applicant and Relevant Organizational 
Experience (15 Points).

    This rating factor addresses the extent to which you have the 
organizational resources necessary to successfully implement your 
proposed work plan as further described in Rating Factor 3 in a timely 
manner, specifically within the 36 month award period.
    Rating standards applicable to individual funding categories. The 
two funding categories have different objectives. Accordingly, in 
addition to the generally applicable rating standard discussed above, 
different standards as discussed below will be used to judge the 
experience and qualifications of the applicants for each of the two 
funding categories. HUD fully supports emerging organizations that 
desire to develop internal capacity. Therefore, the following 
categories will be evaluated:
    (1) For Capacity Building applications (15 points). Team members, 
composition, experience, organizational structure and management 
capacity. Your response to this subfactor should clearly state the need 
which your organization is to address through the request for 
assistance. In addition, you should describe how the enhanced capacity 
realized through the assistance will fulfill that need. HUD will 
evaluate the experience of your project director, core staff, any 
outside consultants, contractors, subrecipients, and project partners 
to implement all of the work activities in your workplan as they relate 
to innovative housing and economic development activities. In 
evaluating your capacity to do the work, HUD will assess the recentness 
and relevancy of the prior work experience of each of the parties 
listed above to execute the prescribed activities; the services that 
consultants or other parties will provide to fill gaps in your staffing 
structure to enable you to carry out the proposed workplan; the 
experience of your project director in managing projects of similar 
size, scope, and dollar amount; the lines of authority and procedures 
that you have in place for ensuring that workplan goals and objectives 
are being met, consultants and other project partners are performing as 
planned, and that beneficiaries are being adequately served. In 
responding to this sub-factor, please indicate how the capacity 
building assistance will strengthen or otherwise impact your 
organization's current housing or economic development program 
portfolio, or if you are a new grantee, how the capacity assistance 
will ensure that you can carry out your proposed activities. In judging 
your response to this factor, HUD will only consider work experience 
gained within the last three years. When responding, please be sure to 
provide the dates, job titles and relevancy of the past experience to 
work undertaken by the employee or contractor under your proposed RHED 
application. The more recent, relevant, and successful the experience 
of your team members is in relationship to the workplan activities, the 
greater the number of points you will receive.
    (2) For Support for Innovative Rural Housing and Economic 
Development Activities applications
    (a) (5 points). Team members, composition, and experience. HUD will 
evaluate the experience of your project director, core staff, any 
outside consultants, contractors, subrecipients, and project partners 
to implement all of the work activities in your workplan. In evaluating 
your capacity to do the work, HUD will assess the recentness and 
relevance of the prior work experience of each of the parties listed 
above to execute the prescribed activities; the services that 
consultants or other parties will provide to fill gaps in your staffing 
structure to enable you to carry out the proposed workplan; the 
experience of your project director in managing projects of similar 
size, scope, and dollar amount; the lines of authority and procedures 
that you have in place for ensuring that workplan goals and objectives 
are being met, that consultants and other project partners are 
performing as planned, and that beneficiaries are being adequately 
served. In judging your response to this factor, HUD will only consider 
work experience gained within the last seven years. When responding, 
please be sure to provide the dates, job titles and relevancy of the 
past experience to work undertaken by the employee or contractor under 
your proposed RHED application. The more recent, relevant, and 
successful the experience of your team members are in relationship to 
the workplan activities, the greater the number of points that you will 
receive.
    (b) (5 points). Organizational structure and management capacity. 
HUD will evaluate the extent to which you can demonstrate your 
organization's ability to manage a workforce composed of full-time and/
or part-time staff as well as any consultant staff and your ability to 
work with community-based groups or organizations in resolving issues 
related to affordable housing and economic development. In evaluating 
this sub-factor, HUD will take into account your experience in working 
with community-based organizations to design and implement programs 
which address the identified housing and economic development issues. 
The more recent, relevant, and successful the experience of your 
organization and any participating entities, the greater the number of 
points you will receive.
    (c) (5 points). Experience with performance based funding 
requirements. HUD will evaluate your experience in producing timely 
products and reports in any previous grant programs undertaken with HUD 
funds or other Federal, State, local or non-profit or for-profit 
organization funds. In assessing points for this sub-factor, HUD 
reserves the right to take into account your past performance in 
meeting performance and reporting goals on any previous HUD awards. HUD 
will deduct one point for each of the following activities related to 
previous HUD grant programs for which

[[Page 21484]]

unsatisfactory performance has been verified and related to: (1) 
Mismanaging funds, including the inability to account for funds 
appropriately; (2) untimely use of funds received either from HUD or 
other Federal, State, or local programs; and (3) significant and 
consistent failure to meet performance targets. Among the specific 
outcomes to be measured are the number of jobs created or retained, the 
number of people trained, the number of housing units rehabilitated or 
constructed and made available for low- and moderate-income persons, or 
other relevant objective performance measures related to your previous 
job experience and/or grant programs. Applicants that can demonstrate a 
closer and greater linkage between the expected outcomes and the 
previously generated outcomes will receive higher points for this sub-
factor.

Rating Factor 2--Need and Extent of the Problem (25 Points)

    The Rural Housing and Economic Development program is designed to 
address the problems of rural poverty, inadequate housing and lack of 
economic opportunity. This Factor addresses the extent to which there 
is a need for funding the proposed activities based on levels of 
distress, and an indication of the urgency of meeting the need/distress 
in the applicant's target area. In responding to this Factor, 
applications will be evaluated on the extent to which the level of need 
for the proposed activity and the urgency in meeting the need are 
documented and compared to the target area and national data.
    (1) In applying this factor, HUD will compare current levels of 
need in the area (i.e.) Census Tract(s) or Block Group(s), immediately 
surrounding the project site or the target area to be served by the 
proposed project and in the national level of need. This means that an 
application that provides data that show levels of need in the project 
area expressed as a percent greater than the national average will be 
rated higher under this Factor. Notwithstanding the above, an applicant 
proposing a project to be located outside the target area could still 
receive points under the Rating Factor 2 if a clear rationale and 
linkage is provided linking the proposed project location and the 
benefits to be derived by persons living in more distressed area(s) of 
the applicant's target area.
    (2) Applicants should provide data that address indicators of need 
as follows:
    (a) Poverty Rate (5 points)--data should be provided in both 
absolute and percentage form (i.e., whole numbers and percents) for the 
target area(s). An application that compares the local poverty rate in 
the following manner to the national average at the time of submission 
will receive points under this section as follows:

(i) Less than the national average = 0 points;
(ii) Equal to but less than twice the national average = 1 point;
(iii) Twice but less than three times the national average = 3 points;

    (iv) Three or more times the national average = 5 points.
    (b) Unemployment (5 points)--for the target area:

    (i) Less than the national average = 0 points;
    (ii) Equal to but less than twice the national average = 1 points;
    (iii) Twice but less than three times the national average = 2 
points;
    (iv) Three but less than four times the national average = 3 
points;
    (v) Four but less than five times the national average = 4 points;
    (vi) Five or more times the national average = 5 points.

    (c) Other indicators of social and/or economic decline that best 
capture the applicant's local situation (5 points)--Data that could be 
provided under this section are information on the community's stagnant 
or falling tax base, including recent commercial or industrial 
closings; housing conditions, such as the number and percentage of 
substandard and/or overcrowded units; rent burden (defined as average 
housing cost divided by average income) for the target area; local 
crime statistics, etc. To the extent that the applicant's statewide or 
local Consolidated Plan, its Analysis of Impediments to Fair Housing 
choice (AI), and/or its Anti-Poverty Strategy identify the level of 
distress in the community and the neighborhood in which the project is 
to be carried out, references to such documents should be included in 
preparing the response to this Factor.
    In rating applications under this Factor, HUD reserves the right to 
consider sources of available objective data other than, or in addition 
to, those provided by applicants, and to compare such data to those 
provided by applicants for the project site. This data includes the use 
of U.S. Census data.
    (a) HUD requires use of sound and reliable data (e.g., U.S. Census 
data, State statistical reports, university studies/reports that are 
verifiable) to support distress levels cited in each application. A 
source for all information along with the publication or origination 
date must also be provided.
    (b) Updated Census data are available for the following indicators:

    (i) Unemployment rate--estimated monthly for counties, with a two-
month lag;
    (ii) Population--estimated for incorporated places and counties, 
through 2000;
    (iii) Poverty rate--2000 data being the most recent available.

    (c) Demographics of Distress--Special Factors (10 points). Because 
of HUD's concern with meeting the needs of certain underserved areas, 
you will be awarded a total of ten points if you are located in or 
propose to serve one or more of the following populations, if your 
application demonstrates that 100 percent of the beneficiaries 
supported by RHED funds are in one or more of the following 
populations. You must also specifically identify how each population 
will be served and that the proposed service area meets the definition 
of ``eligible rural area'' as described in Section III(A)(2) of this 
NOFA:

    (i) Areas with very small populations in non-urban areas (2,500 
population or less);
    (ii) Seasonal farmworkers;
    (iii) Federally recognized Indian Tribes;
    (iv) Colonias;
    (v) Appalachia's Distressed Counties; or
    (vi) The Lower Mississippi Delta Region (8 states and 235 counties/
parishes). For these underserved areas, you should ensure that the 
populations that you serve and the documentation that you provide is 
consistent with the information described in the above paragraphs under 
this rating factor.

Rating Factor 3--Soundness of Approach (30 points)

    This factor addresses the overall quality of your proposed 
workplan, taking into account the project and the activities proposed 
to be undertaken; the cost-effectiveness of your proposed program; and 
the linkages between identified needs, the purposes of this program and 
your proposed activities and tasks. In addition, this factor addresses 
your ability to ensure that a clear linkage exists between innovative 
rural housing and economic development. In assessing cost-
effectiveness, HUD will take into account your staffing levels, 
beneficiaries to be served, a timetable for the achievement of program 
outcomes, the delivery of products and reports and any anticipated 
outcomes or products. You will receive a greater number of points if 
your workplan is consistent with the purpose of the RHED program, your 
program goals and the resources provided.

[[Page 21485]]

    (a) Management Plan (24 points). A clearly defined management plan 
that identifies each of the projects and activities you will carry out 
to further the objectives of this program; describes the linkage 
between rural housing and economic development activities; and 
addresses the needs identified in Factor 2, including needs that had 
been previously identified in a statewide or local Analysis of 
Impediments to Fair Housing Choice (AI) or Consolidated Plan. The 
populations that were described in Rating Factor 2 for the purpose of 
documenting need should be the same populations that will receive the 
primary benefit of the activities, both immediately and long term. The 
benefits should be affirmatively marketed to those populations least 
likely to apply for and receive these benefits without such marketing. 
Your timetable should address the measurable goals and objectives to be 
achieved through the proposed activities; the method you will use for 
evaluating and monitoring program progress with respect to those 
activities; and the method you will use to ensure that the activities 
will be completed on time and within your proposed budget estimates. 
Applicants that have a clearly defined management plan and can produce 
results in less than 36 months will receive higher rating points for 
this sub-factor. Your management plan should also include the budget 
for your program, broken out for each line item. Documented projected 
cost estimates from outside sources are also required. Applicants 
should submit their workplan on a spreadsheet showing each project to 
be undertaken and the tasks (to the extent necessary or appropriate) in 
your workplan to implement the project with your associated budget 
estimate per activity/task. Your workplan should provide the rationale 
for your proposed activities and any assumptions used in determining 
your project timeline and budget estimates. Failure to provide your 
rationale may result in an application receiving fewer points for lack 
of clarity in the proposed management plan.
    This sub-factor should include information that indicates the 
extent to which you have coordinated your activities with other known 
organizations (e.g. through letters of participation or coordination) 
that are not directly participating in your proposed work activities, 
but with which you share common goals and objectives and are working 
toward meeting these objectives in a holistic and comprehensive manner. 
The goal of this coordination is to ensure that programs do not operate 
in isolation. Additionally, your application should demonstrate the 
extent to which your program exhibits the potential to be financially 
self-sustaining by decreasing dependence on RHED funding and relying 
more on state, local, and private funding. The goal of sustainability 
is to ensure that the activities proposed in your application can be 
continued after your grant award is complete.
    (b) Policy Priorities (6 Points). Policy Priorities are further 
outlined in Section II of the General Section of the SuperNOFA. You 
should document the extent to which HUD's Policy Priorities are 
furthered by the proposed activities. Applicants that include 
activities that can result in the achievement of these Departmental 
Policy Priorities as described below and in Section II of the General 
Section of this SuperNOFA will receive higher rating points in 
evaluating their application for funding. Six Departmental Policy 
Priorities are listed below. You will receive 1 rating point for each 
Policy Priority addressed in your program of activities under this 
rating factor as described in Section VI (b) of this program NOFA. When 
Policy Priorities are included, describe in brief detail how those 
activities will be carried out. The Policy Priorities include (1 point 
each):
    (a) Providing Increased Homeownership and Rental Opportunities for 
Low- and Moderate-Income Persons, Persons with Disabilities, the 
Elderly, Minorities, and Families with Limited English Proficiency;
    (b) Improving our Nation's Communities;
    (c) Encouraging Accessible Design Features;
    (d) Providing Full and Equal Access to Grass-Roots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation;
    (e) Participation in Energy Star;
    (f) Ending Chronic Homelessness within Ten Years

Rating Factor 4--Leveraging Resources (10 Points)

    This factor addresses the extent to which applicants for any of the 
two funding categories have obtained firm commitments of financial or 
in-kind resources from other Federal, State, local, and private 
sources. For every RHED dollar anticipated, you should provide the 
specific amount of dollars leveraged. In assigning points for this 
criterion, HUD will consider the level of outside resources obtained 
for cash or in-kind services that support activities proposed in your 
application. HUD will award a greater number of points based upon a 
comparison of the extent of leveraged funds compared to the requested 
RHED grant. This criterion is applicable to both funding categories 
under this NOFA. The level of outside resources for which commitments 
are obtained will be evaluated based on their importance to the total 
program. You must provide evidence of leveraging by including in the 
application letters of firm commitment to participate from any entity, 
including your own organization, which will be providing matching funds 
to the project. Each commitment described in the narrative of this 
factor must be in accordance with the definition of ``firm commitment'' 
as defined in Section III(A)(2) of this NOFA. The commitment letter 
must be on letterhead from the participating organization, must be 
signed by an official of the organization legally able to make 
commitments on behalf of the organization and must not be dated earlier 
than this NOFA is published.
    Points for this Factor will be awarded based on the satisfactory 
provisions of evidence of leveraging and financial sustainability, as 
described above, and the ratio of requested HUD RHED funds as follows:

(i) 50% or more of requested HUD RHED funds will receive 10 points;
(ii) 39-30% of requested HUD RHED funds will receive 8 points;
(iii) 29-20% of requested HUD RHED funds will receive 6 points;
(iv) 19-9% of requested HUD RHED funds will receive 4 points;
(v) Less than 9% of HUD RHED funds requested will receive 0 points.

Rating Factor 5--Achieving Results and Program Evaluation (20 Points)

    This Factor emphasizes HUD's commitment to ensuring that applicants 
keep promises made in their application and assesses their performance 
to ensure performance goals are met. Achieving results means you, the 
applicant, have clearly identified the benefits or outcomes of your 
program. Outcomes are ultimate project end goals. Benchmarks or outputs 
are interim activities or products that lead to the ultimate 
achievement of your goals. Program evaluation requires that you, the 
applicant, identify program outcomes, interim products or benchmarks, 
and performance indicators that will allow you to measure your 
performance. Performance indicators should be objectively quantifiable 
and measure actual achievements against anticipated achievements. Your 
Evaluation Plan should identify what you are going to

[[Page 21486]]

measure, how you are going to measure it, and the steps you have in 
place to make adjustments to your work plan if performance targets are 
not met within established time frames.
    Program outcomes for the Rural Housing and Economic Development 
Program must include where applicable: (1) Number of housing units 
constructed; (2) number of housing units rehabilitated that will be 
made available to low-to-moderate-income participants; (3) number of 
jobs created; (4) percentage change in earnings as a result of 
employment for those participants; (5) number of participants trained; 
(6) the percent of participants trained that find a job; (7) number of 
new businesses created; (8) number of existing businesses assisted; and 
(9) annual estimated savings for low-income family as a result of 
energy efficiency improvements. In addition, applicants that receive 
capacity building funds must include goals (and report accomplishments) 
for the following, where applicable: (1) Increase in program 
accomplishments as a result of capacity building assistance (e.g. 
number of employees hired or retained, efficiency or effectiveness of 
services provided) and (2) Increase in organizational resources as a 
result of assistance (e.g., dollars leveraged).
    Applicant must complete the ``Logic Model'' HUD Form included in 
the General Section of the SuperNOFA and submit the completed form with 
their application.
    This rating factor reflects HUD's goal to embrace high standards of 
ethics, management and accountability. HUD will hold a training 
broadcast via satellite for potential applicants to learn more about 
Rating Factor 5. For more information about the date and time of the 
broadcast, consult the HUD Web site at www.hud.gov.

RC/EZ/EC Bonus Points (2 Points)

    HUD will award two bonus points to all applications that include 
documentation stating that the proposed eligible activities/projects 
will be located in and serve Federally designated Rural Renewal 
Communities, Rural Empowerment Zones, or Enterprise Communities (Rural 
EZs/ECs). A listing of Federally designated Rural RCs, EZs and ECs is 
available on the Internet at http://www.hud.gov. Further explanation of 
RC/EZ/EC can be found in Section VI of the General Section of the 
SuperNOFA.

VI. Application Submission Requirements

    (A) Form of Application. All pages of the application must be 
numbered sequentially. Your application must include an original and 
two copies of the items listed below.
    (B) Application Items. Your application must contain the items 
listed in this section. These items include the standard forms and non-
standard certifications that can be found in the Appendices to this 
program section of the SuperNOFA. The items are as follows:
    (1) A transmittal letter that must include the category under which 
you are applying, the dollar amount requested, the category under which 
you qualify for demographics of distress Special Factor under Rating 
Factor 2 ``Need and Extent of the Problem'' and which of the five 
definitions of the term ``rural area'' set forth in Section III(A)(2) 
of this NOFA applies to the proposed service area and accompanying 
documentation as indicated on the form.
    (2) A table of contents;
    (3) A signed HUD-424 (application form);
    (4) A budget for all funds (Federal and Non-Federal including HUD-
424A and HUD 424C) and a breakdown of all Federal funds requested, in 
the format provided in Appendix A of this NOFA;

    Special Note: You must ensure that the amount of RHED funds 
requested are consistent throughout your application including on 
the HUD 424 ``Application for Federal Assistance'', the Transmittal 
Letter, the application Narrative section (Rating Factors) and the 
HUD 424A ``Budget Information''.

    (5) Documentation of funds pledged in support of Rating Factor 4--
``Leveraging Resources'' (which will not be counted in the 15 page 
limitation);
    (6) The required certifications and assurances (signed, as 
appropriate, and attached as an Appendix);
    (7) Acknowledgment of the Application Receipt form (HUD 2993) 
(submitted with application and returned to you as verification of 
timely receipt).
    (8) If you are a private nonprofit organization, a copy of your 
organization's IRS ruling providing tax-exempt status under section 501 
of the IRS Code of 1986, as amended.
    (9) The Environmental Review Assurance:
    (10) Narrative Response to Factors for Award:
    (a) You must describe your organization and the assignment of 
responsibilities for the work to be carried out under the grant (Rating 
Factor 1).
    (b) You must describe the need and extent of the problem and 
populations to be served (Rating Factor 2).
    (c) You must submit a workplan that describes your soundness of 
approach and the clear linkage between rural housing and economic 
development (Rating Factor 3). In addressing this submission 
requirement, you must:
    (i) Describe the activities you propose to undertake to address the 
needs which needs that have been identified, the linkage between rural 
housing and economic development, and describe the specific outcomes 
you expect to achieve.
    (ii) Include a management plan which identifies the specific 
actions you will take to complete the proposed activities on time, and 
a budget in the format provided which explains the uses of both Federal 
and non-Federal funds and the period of performance under the grant.
    (iii) Include a discussion of the process by which the work 
accomplished with the grant will be evaluated to determine if the 
objectives of the grant were met.
    (d) You must identify the resources which will be leveraged by the 
amount of this grant's funding that you are requesting. (Rating Factor 
4). To receive the maximum number of points under Rating Factor 4 you 
must provide evidence of firm commitments. The commitment can be 
contingent upon HUD site approval following environmental review.
    (e) You must describe the extent to which your program reflects a 
coordinated, community based process of identifying needs and building 
a system to address these needs, providing program beneficiaries 
outcomes resulting in increased independence and empowerment, and the 
potential for your organization to become financially self-sustaining. 
You must also describe how your activities will satisfy the program 
outcomes as described in Rating Factor 5 (Achieving Results and Program 
Evaluation) namely where applicable, the number of housing units 
constructed, the number of housing units rehabilitated, the number of 
jobs created, the number of jobs retained, the number of participants 
trained, the number of new businesses created and the number of 
existing businesses assisted (Rating Factor 5).
    The total narrative response to all factors should not exceed 15 
pages and must be submitted on 8.5'' by 11'' paper, using a 12 point 
font size, with lines double spaced and printed only on one side. 
Please note that although submitting pages in excess of the page limit 
will not disqualify your application, HUD will not consider or review 
the information on any excess

[[Page 21487]]

pages, which may result in a lower score or failure to meet a 
threshold.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
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, however, to clarify an item in your 
application or to correct technical deficiencies. You should note, 
however, that HUD may not seek clarification of items or responses that 
improve the substantive quality of your response to any eligibility or 
selection factors. Examples of curable (correctable) technical 
deficiencies include your failure to submit the proper certifications 
or your failure to submit an application that contains an original 
signature by an authorized official. In each case, HUD will notify you 
in writing of a 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 requested by HUD must be submitted within 5 calendar days 
of the date you receive 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). The determination of when you received the deficiency letter 
will be based on the confirmation of the facsimile transmission, return 
or postal tracking information, as appropriate. 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.

Catalog of Federal Domestic Assistance (CDFA)

    The Catalogue of Federal Domestic Assistance number is 14.250.

VIII. Authority

    Division K of the FY 2003 Consolidated Appropriations Resolution.
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Funding Availability for Housing Choice Voucher Family Self-Sufficiency 
(FSS) Program Coordinators

Program Overview

    Purpose of the Program. The Housing Choice Voucher Family Self-
Sufficiency (FSS) program (referred to in previous NOFAs as the Section 
8 FSS program and as the Rental Certificate/Housing Choice Voucher FSS 
program) is intended to promote the development of local strategies to 
coordinate the use of assistance under the Housing Choice Voucher 
program with public and private resources to enable participating 
families to achieve economic independence and self-sufficiency. The FSS 
program provides critical tools that can be used by communities to 
support welfare reform and help families develop new skills that will 
lead to economic self-sufficiency. As a result of their participation 
in the FSS program, many families have achieved stable, well-paid 
employment, which has made it possible for them to become homeowners.
    An FSS program coordinator assures that program participants are 
linked to the supportive services they need to achieve self-
sufficiency.
    Available Funds. This NOFA announces the availability of up to 
$47,688,000 in Fiscal Year (FY) 2003 to employ program coordinators for 
the Housing Choice Voucher FSS program. If additional funding becomes 
available during FY 2003, HUD may increase the amount available for 
Housing Choice Voucher FSS Program coordinators under this NOFA. Awards 
under this NOFA are subject to a cap of $62,500 per year per full time 
coordinator position funded. Under this NOFA, if PHAs apply jointly, 
the $62,500 maximum amount that may be requested per position applies 
to up to one full-time coordinator position for the application as a 
whole, not to each PHA separately. Evidence of salary comparability to 
similar positions in the local jurisdiction for each position must be 
kept on file in the PHA office.
    Eligible Applicants: PHAs eligible to apply for funding under this 
NOFA are:
    (1) PHAs that received funding for one or more FSS program 
coordinators under an FSS NOFA in FY 1999, FY 2000, FY 2001 or FY 2002, 
and
    (2) PHAs that were not funded under an FSS NOFA in FY 1999, FY 
2000, FY 2001, or FY 2002 that--
    (a) Have HUD approval to administer a Housing Choice Voucher FSS 
program of at least 25 slots, or
    (b) Are PHAs with HUD approval to administer Housing Choice Voucher 
FSS programs of fewer than 25 slots, applying jointly with one or more 
other PHAs so that together they have HUD approval to administer at 
least 25 Housing Choice Voucher FSS slots. (See Section III. A. of this 
NOFA for further information about the PHA's HUD-approved FSS program 
size.)
    Application Deadline. May 30, 2003.
    Match. None

Additional Information

    If you are interested in applying for Housing Choice Voucher FSS 
Program Coordinator funding under this NOFA, please review carefully 
the General Section of this SuperNOFA and the following additional 
information.

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

    Application Due Date. Your completed application (an original and 
one copy) is due on or before May 30, 2003.
    Address for Submitting Applications. Submit your original 
application and one copy with an Acknowledgment of Application Receipt, 
Form HUD-2993, to: Grants Management Center; Mail Stop: Housing Choice 
Voucher Family Self-Sufficiency Program Coordinator Funding; 2001 
Jefferson Davis Hwy, Suite 703; Arlington, VA 22202.
    Application Submission Procedures. See ``ADDRESSES AND APPLICATION 
SUBMISSION PRODEDURES'' in the General Section of the SuperNOFA 
regarding HUD's mailing, delivery and receipt procedures pertinent to 
submission of your application.
    For Application Kits. There is no application kit for this NOFA. 
This announcement contains all the information necessary for the 
submission of your application for Housing Choice Voucher FSS program 
coordinator funding.
    For Further Information and Technical Assistance. For answers to 
your questions, you may contact the Public and Indian Housing Resource 
Center at 1-800-955-2232. Persons with hearing or speech impairments 
may access this number via TTY (text telephone) by calling the Federal 
Information Relay Service at 1-800-877-8339. (These are toll-free 
numbers). Information can be accessed via the Internet at http://www.hud.gov/grants.
    Prior to the application deadline, staff at the numbers given above 
will be available to provide general guidance, but not guidance in 
actually preparing the application. Following selection, but prior to 
award, HUD staff will be available to assist in clarifying or 
confirming information that is a prerequisite to the offer of an award 
by HUD.
    Satellite Broadcast. HUD plans to hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of an application. For more information about the date and 
time of this broadcast, you should consult the HUD web site at 
www.hud.gov.

II. Amount Allocated

    For FY 2003, up to $47,688,000 is available under Title II, 
Department of Housing and Urban Development, Certificate Fund in the 
Consolidated Appropriations Resolution, 2003, (Pub. L. 108-7, approved 
February 20, 2003). If additional funds become available in FY 2003, 
HUD may fund additional applications submitted in response to the NOFA.

III. Program Description; Eligible Applicants; Number of Positions for 
Which Eligible Applicants May Apply; Eligible Activities, Ineligible 
Activities

    (A) Program Description. A PHA administering the FSS program uses a 
program coordinating committee (PCC) to assist the PHA to secure 
resources and implement the FSS program. A PCC is made up of 
representatives of businesses, local government, job training and 
employment agencies, local welfare agencies, educational institutions, 
childcare providers, and nonprofit service providers, including faith-
based and other community organizations. A Housing Choice Voucher FSS 
program coordinator works with the PCC and with local service providers 
to assure that Housing Choice Voucher FSS program participants are 
linked to the supportive services they need to achieve self-
sufficiency. The FSS program coordinator ensures through case 
management that the services included in participants' contracts of 
participation are provided on a regular, ongoing and satisfactory 
basis, that participants are fulfilling their responsibilities under 
the contracts and that FSS escrow accounts are established and properly 
maintained for eligible families. FSS coordinators may also perform job 
development functions for the FSS program.
    PHAs are encouraged to outreach to disabled Housing Choice Voucher 
program participants who might be interested in participating in the 
FSS program and to include agencies on their FSS PCC that work with and 
provide services for disabled families.
    Under normal circumstances, a full-time FSS program coordinator 
should be able to serve approximately 50 FSS program participants, 
depending on the

[[Page 21492]]

coordinator's case management functions.
    Through annual NOFAs, HUD has provided funding to PHAs that are 
operating Housing Choice Voucher FSS programs to enable those PHAs to 
employ program coordinators to support their Housing Choice Voucher FSS 
programs.
    In the FY 2003 Housing Choice Voucher FSS Program Coordinator NOFA, 
HUD is again making funding available to PHAs to employ FSS program 
coordinators and FSS homeownership program coordinators for one year.
    PHAs funded under an FSS NOFA in FY 1999, FY 2000, FY 2001, or FY 
2002 are considered ``renewal'' PHAs in this NOFA. These renewal PHAs 
are invited to apply for funds to continue previously funded FSS 
program coordinator positions. In addition, any renewal PHA that did 
not receive funding for a Housing Choice Voucher FSS homeownership 
coordinator under the FY 2002 FSS NOFA is invited to apply for funding 
for a coordinator position to support FSS homeownership activities.
    Because of the importance of the FSS program in helping families 
increase earned income and develop assets, HUD will also accept 
applications from ``new'' PHAs that were not funded under an FSS NOFA 
in FY 1999, FY 2000, FY 2001, or FY 2002.
    To support the Department's initiatives on Colonias, a selection 
preference is included in this NOFA for ``new'' applicant PHAs that 
provide services and support to rural under-served communities in the 
Southwest Border regions of Arizona, California, New Mexico and Texas. 
See Section IV.A.(3)(c) of this NOFA for requirements that must be met 
to qualify for the Colonias preference.
    In this NOFA, the FSS program size is the total number of Housing 
Choice Voucher FSS program slots identified in the PHA's HUD-approved 
FSS Action Plan. To ensure that the application is accurate, prior to 
submitting an application, new PHAs may wish to confirm the number of 
HUD-approved slots their local HUD field office has on record for the 
PHA. An FSS Action Plan can be updated by means of a simple one-page 
addendum that reflects the total number of FSS slots (voluntary and/or 
mandatory slots) the PHA intends to serve. This addendum must be 
approved by the PHA's local HUD field office.
    For a new PHA applicant to qualify for funding under this NOFA, the 
PHA's initial FSS Action Plan or amendment to change the number of 
Housing Choice Voucher FSS slots in the PHA's previously HUD-approved 
FSS Action Plan must be submitted to and approved by the PHA's local 
HUD field office prior to the application due date under this NOFA.
    (B) Eligible Applicants. PHAs eligible to apply for funding under 
this NOFA are:
    (1) Renewal PHAs. Those PHAs that received funding under an FSS 
NOFA in FY 1999, FY 2000, FY 2001, or FY 2002.
    (2) New PHAs. PHAs that were not funded under an FSS NOFA in FY 
1999, FY 2000, FY 2001, or FY 2002 that:
    (a) Are authorized through their HUD-approved FSS Action Plan to 
administer a Housing Choice Voucher FSS program of at least 25 slots; 
or
    (b) Are PHAs with HUD approval to administer Housing Choice Voucher 
FSS programs of fewer than 25 slots that apply jointly with one or more 
other PHAs so that together they have HUD approval to administer at 
least 25 Housing Choice Voucher FSS slots. Joint applicants must 
specify a lead co-applicant that will receive and administer the FSS 
program coordinator funding.
    (3) Moving to Work (MTW) PHAs. PHAs that are under the MTW 
demonstration may qualify for funding under this NOFA if the PHA 
administers an FSS program. When determining the size of a MTW PHA's 
HUD-approved FSS program, the PHA may request that the number of FSS 
slots reflected in the PHA's MTW agreement be used instead of the 
number in the PHA's FSS Action Plan.
    (4) Troubled PHAs. (a) A PHA that has been designated by HUD as a 
troubled PHA under the Section 8 Management Assessment Program (SEMAP), 
or has major program management findings from Inspector General audits 
or serious outstanding HUD management review or IPA audit findings for 
the PHA's Housing Choice Voucher or Moderate Rehabilitation programs 
that are resolved prior to the application due date is eligible to 
apply under this NOFA. Serious program management findings are those 
that would cast doubt on the capacity of the PHA to administer its 
Housing Choice Voucher FSS program in accordance with applicable HUD 
regulatory and statutory requirements.
    (b) A PHA whose SEMAP troubled designation has not been removed by 
HUD or the findings resolved by the due date, may apply if the PHA 
submits an application that designates another contractor that is 
acceptable to HUD that:
    (i) Includes an agreement by the other contractor to administer the 
FSS program on behalf of the PHA; and
    (ii) In the instance of a PHA with unresolved major program 
management findings, includes a statement that outlines the steps the 
PHA is taking to resolve the program findings.
    (C) Number of Positions for which Eligible PHAs may apply: Eligible 
PHAs may apply for funding for Housing Choice Voucher FSS coordinator 
positions under this NOFA as follows:
    (1) Renewal PHAs. PHAs that received funding under an FSS NOFA in 
FY 1999, FY 2000, FY 2001, or FY 2002 that qualify as eligible PHAs 
under the definition of eligible applicants in Section III.B. of this 
NOFA, may apply for:
    (a) Renewal of each FSS coordinator position, including 
homeownership coordinator positions, most recently funded under an FSS 
NOFA in FY 1999, FY 2000, FY 2001, or FY 2002 that has been filled by 
the PHA.
    (b) Up to one initial full-time FSS homeownership program 
coordinator for renewal PHAs with qualifying homeownership programs 
that did not receive funding for a homeownership coordinator under the 
FY 2002 FSS NOFA.
    (2) New PHAs: A PHA that did not receive funding under an FSS NOFA 
in FY 1999, FY 2000, FY 2001, or FY 2002 may apply for funding for 
Housing Choice Voucher FSS program coordinator positions as follows:
    (a) Up to one full-time FSS coordinator position for a PHA with HUD 
approval to administer an FSS program of 25 or more FSS slots.
    (b) Up to one full-time position per application for joint PHA 
applicants that have HUD approval to administer a total of at least 25 
Housing Choice Voucher FSS slots between or among them.
    (D) Eligible Activities. Funds awarded to PHAs under this NOFA may 
only be used to employ or otherwise retain the services of Housing 
Choice Voucher FSS program coordinators and FSS homeownership 
coordinators for one year. A part-time program coordinator may be 
retained where appropriate.
    (E) Ineligible Activities. (1) Funds under this NOFA may not be 
used to pay the salary of an FSS coordinator for a public housing FSS 
program. Operating subsidy can be used to fund a public housing FSS 
program coordinator's salary.
    (2) Funds under this NOFA may not be used to pay for services for 
FSS program participants.

[[Page 21493]]

IV. Program Requirements

    In addition to the applicable statutory, regulatory, threshold and 
public policy requirements listed in Section V. of the General Section 
of the SuperNOFA, each applicant must meet and comply with the 
following threshold statutory and other program requirements.
    (A) Threshold Requirements. (1) Each applicant must qualify as an 
eligible PHA under Section III.B of this NOFA and must have submitted 
their FSS application by the application due date and in the format 
required in Section VI. of this NOFA.
    (2) Renewal Applicants. (a) In addition to the requirements in 
Section IV.(A)(1) above, renewal PHA applicants must continue to 
operate a Housing Choice Voucher FSS program, have filled eligible FSS 
program coordinator positions for which they are seeking renewal 
funding, executed FSS contracts of participation with FSS program 
participants and submitted reports on participating families to HUD via 
the HUD-50058 FSS/WtW Voucher Addendum.
    (b) Renewal PHAs applying for an initial Housing Choice Voucher FSS 
Homeownership Coordinator must meet all requirements of Sections 
IV.(A)(1) and (A)(2)(a) above. In addition, the PHA must not have 
received funding for an FSS homeownership coordinator under the FY 2002 
Housing Choice Voucher FSS Program Coordinator NOFA and must administer 
or participate in a homeownership program that serves FSS program 
participants or graduates. Qualifying homeownership programs include 
the Housing Choice Voucher program homeownership option and other 
programs that prepare voucher program FSS participants for making the 
transition from rental to homeownership.
    (3) New Applicants. (a) Must be authorized through their HUD-
approved FSS Housing Choice Voucher Action Plan to administer an FSS 
program or at least 25 slots; or
    (b) Are PHAs with HUD approval to administer Housing Choice Voucher 
FSS programs of fewer than 25 slots that apply jointly with one or more 
other PHAs so that together they have HUD approval to administer at 
least 25 Housing Choice Voucher FSS slots.
    (c) New Applicant PHAs claiming the Colonias preference must meet 
the requirements of Section IV.(A)(1) and Section IV.(A)(3)(a) or (b) 
and operate in a Southwest border area that contains Colonias 
communities and administer programs that include outreach to members of 
those Colonias communities.

    Note: A listing of those PHAs in Arizona, California, New Mexico 
and Texas that HUD has identified as operating in areas containing 
Colonias is included in this NOFA as Attachment C. PHAs not listed 
in Attachment C will be required to request that the Grants 
Management Center determine their eligibility for the preference.

V. Application Selection Process

    (A) Threshold Compliance. Only applications that meet all of the 
applicable threshold requirements of Section IV. of this NOFA will be 
eligible for further processing.
    (B) Panels. To review applications, HUD may establish panels that 
may include persons not currently employed by HUD.
    (C) Order of Funding. The funds available under this NOFA are not 
being awarded on a competitive basis. Applications will be reviewed by 
the Grants Management Center (GMC) to determine whether or not they are 
technically adequate based on the NOFA requirements. Field offices will 
provide to the GMC in a timely manner, as requested, information needed 
by the GMC to make its determination, such as the HUD-approved Housing 
Choice Voucher FSS program size of new PHA applicants and information 
on the administrative capabilities of PHAs. Categories of applications 
that will not be funded are stated in Section VII.(B) of this FSS NOFA.
    All technically adequate applications will be funded to the extent 
funds are available. If HUD receives applications for funding greater 
than the amount made available under this NOFA, HUD will fund eligible 
applicants as follows:
    Priority 1--Applications from eligible renewal PHAs for 
continuation of eligible positions where the PHA has hired a 
coordinator.
    Priority 2--Eligible new applicant PHAs that qualify for the 
Colonias preference.
    Priority 3--Applications from eligible new PHAs that do not qualify 
for the Colonias preference.
    Priority 4--Applications from eligible renewal PHAs for an initial 
coordinator position to support FSS homeownership activities.
    HUD will first process and fund all eligible Priority 1 
applications to continue funding for Housing Choice Voucher FSS program 
coordinators and FSS homeownership coordinators. If the amount 
available is not sufficient to fund all eligible Priority 1 
applications up to the maximum amount permitted in this NOFA, HUD will 
determine if all applications can be funded if salary increases for 
Priority 1 are limited to no more than one percent of the salary from 
the most recent award to the PHA for the position to be renewed. If 
monies are still not sufficient to fund all eligible positions, HUD 
will begin by funding eligible applications at the reduced salary 
level, by Housing Choice Voucher program size, from smallest to 
largest, starting with the smallest Housing Choice Voucher programs 
first. Housing Choice Voucher program size will be determined by HUD 
using baseline data developed by the Department.
    If funding remains after funding all Priority 1 applications, HUD 
will then process and provide funding to eligible Priority 2 applicants 
for up to one Housing Choice Voucher FSS program coordinator position 
per eligible new PHA that qualifies for the Colonias preference under 
this NOFA. If there are not sufficient monies to fund an FSS program 
coordinator for each eligible Priority 2 PHA, HUD will begin funding up 
to one full-time coordinator for each eligible Priority 2 applicant by 
Housing Choice Voucher program size, from smallest to largest, starting 
with the smallest Housing Choice Voucher programs first. As with 
Priority 1, Housing Choice Voucher program size will be determined by 
HUD using baseline data developed by the Department.
    If funding remains after funding all Priority 1 and 2 applications, 
HUD will then process and provide funding to eligible Priority 3 
applicants for up to one FSS program coordinator per PHA, or in the 
case of joint applications, up to one coordinator per application. If 
there are not sufficient monies to fund an FSS program coordinator for 
each eligible Priority 3 PHA, HUD will begin funding up to one full-
time FSS program coordinator for each eligible Priority 3 applicant by 
Housing Choice Voucher program size, from smallest to largest, starting 
with the smallest first. If there are not sufficient monies to fund all 
applications from Priority 3 PHAs with the same Housing Choice Voucher 
program size, funding will be provided based on the size of the PHA's 
Housing Choice Voucher FSS program, reflected in the PHA's HUD-approved 
Housing Choice Voucher FSS Action Plan, starting with the largest 
approved Housing Choice Voucher FSS program first.
    If funding remains after funding all Priority 1, 2 and 3 
applications, HUD will then process and provide funding to eligible 
Priority 4 applicants for up to one initial Housing Choice Voucher FSS 
homeownership coordinator to support the homeownership activities of 
Housing Choice Voucher FSS program

[[Page 21494]]

participants. If there are not sufficient monies to fund an initial FSS 
homeownership coordinator for each eligible Priority 4 PHA, HUD will 
begin funding up to one full-time homeownership coordinator for each 
eligible Priority 4 PHA, starting with PHAs with the highest percentage 
of FSS families currently ready for homeownership, including the number 
of families (FSS participants and graduates) currently participating in 
a homeownership program. The percentage will be computed using the 
Housing Choice Voucher FSS program size in the PHA's HUD-approved FSS 
Action Plan and the total number of families certified as being ready 
for homeownership and the number of FSS participants and graduates 
currently participating in a homeownership program or programs that are 
stated in the Attachment A certification letter of the PHA.
    Based on the number of applications submitted, the GMC may elect 
not to process applications for any funding category in instances where 
it is apparent that there are insufficient funds available to fund any 
applications within the priority category.

VI. Application Submission Requirements

    (A) Renewal PHAs. Each PHA that received funding for an FSS program 
coordinator or coordinators under an FSS NOFA in FY 1999, FY 2000, FY 
2001, or FY 2002 that wishes to receive funding under this NOFA must 
complete a certification in the format shown as ``Attachment A'' of 
this NOFA, and must include all information required in ``Attachment 
A.'' The completed Attachment A certification constitutes the entire 
PHA application for funding for renewal PHAs under this FSS NOFA.
    (B) ``New'' PHAs. PHAs that did not receive funding under an FSS 
NOFA in FY 1999, FY 2000, FY 2001, or FY 2002 must complete a 
certification in the format shown as ``Attachment B'' of this FSS NOFA 
and must include all information required in Attachment B. The 
completed Attachment B certification constitutes the entire PHA 
application for funding under this section.
    (C) Applicant Debriefing. See Section XI. (A)(4) of the General 
Section of the SuperNOFA.

VII. Corrections to Deficient Applications

    (A) Acceptable Applications. The General Section of the SuperNOFA 
provides the procedures for corrections to deficient applications. 
Examples of correctable technical deficiencies include, but are not 
limited to, submission of an attachment A or B with missing information 
or one that lacks an original signature by an authorized official.
    (B) Unacceptable Applications. (1) After the technical deficiency 
correction period (as provided in the General Section), the GMC will 
disapprove PHA applications that it determines are not acceptable for 
processing.
    (2) Applications from PHAs that fall into any of the following 
categories are ineligible for funding under this NOFA and will not be 
processed:
    (a) An application from a PHA that is not an eligible PHA under 
Section III.B. of this NOFA or an application that does not comply with 
the requirements of Section VI. of this NOFA.
    (b) An application from a PHA that does not meet the fair housing 
and civil rights compliance requirements of Section V.(B)(2) of the 
General Section of the SuperNOFA.
    (c) An application from a PHA that does not comply with the 
prohibition against lobbying activities of Section V.(N) of this 
SuperNOFA.
    (d) An application that fails to comply with the requirements of 
Section III.(B)(4) of this FSS NOFA from a PHA that as of the 
application due date has not made progress satisfactory to HUD in 
resolving serious outstanding Inspector General audit findings, or 
serious outstanding HUD management review or independent public 
accountant (IPA) audit findings for one or more of the following 
programs: Housing Choice Voucher or Moderate Rehabilitation and has not 
designated another contractor acceptable to HUD to administer the FSS 
program on behalf of the PHA.
    (e) An application from a PHA that has been debarred or otherwise 
disqualified from providing assistance under the program.
    (f) An applicant that as of the application due date has a 
``troubled'' rating under SEMAP and has not designated another 
contractor acceptable to HUD to administer the FSS program on behalf of 
the PHA.
    (g) An application that was not received by the due date specified 
in Section I. of this FSS NOFA.

VIII. Environmental Requirements

    No environmental review is required in connection with the award of 
assistance under this NOFA, because the NOFA only provides funds for 
employing a coordinator that provides public and supportive services, 
which are categorically excluded from environmental review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321) and not 
subject to compliance actions for related environmental authorities 
under 24 CFR 50.19(b)(4) and (12).

IX. Authority

    The Consolidated Appropriations Resolution, 2003 (Pub.L. 108-7, 
approved February 20, 2003) allows funding for program coordinators 
under the Housing Choice Voucher FSS program. As a result, the 
Department determined to make a sufficient amount available under this 
NOFA, under Part 984, in accordance with 24 CFR 984.302(b), to enable 
PHAs to employ Housing Choice Voucher FSS program coordinators for one 
year at a reasonable cost as determined by the PHA and HUD, based on 
salaries for similar positions in the locality.
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Book 3 of 4 Books

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Part II--Continued





Department of Housing and Urban Development





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Super Notice of Funding Availability (SuperNOFA) for HUD's 
Discretionary Programs for Fiscal Year 2003; Notice

  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

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[GRAPHIC] [TIFF OMITTED] TN25AP03.259


  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

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Funding Availability for Public and Indian Housing Resident 
Opportunities and Self Sufficiency (ROSS) Program

Program Overview

    Purpose of Program. The purpose of the Public and Indian Housing 
Resident Opportunities and Self Sufficiency (ROSS) Program is to 
provide grants to Public Housing Agencies, tribes/Tribally Designated 
Housing Entities (TDHEs), Resident Organizations and nonprofits, 
including grassroots, faith-based and other community based 
organizations for the delivery and coordination of supportive services 
and other activities designed to help Public and Indian housing 
residents attain economic self-sufficiency.
    Available Funds. A total of $49,675,000 is available for funding in 
Fiscal Year 2003. Of this, $14,902,500 is allocated to Neighborhood 
Networks.
    Transfer of Funds. HUD may transfer funds between the two Resident 
Service Delivery Models (RSDM) programs and the Homeownership 
Supportive Services program in the event that funds in one or more 
categories are remaining after all qualified applications have been 
funded. If transfer of funds does become necessary, HUD will give first 
priority to Homeownership Supportive Services (HSS), second priority to 
RSDM-Family and third priority to RSDM-Elderly. HUD does not have the 
discretion to transfer funds for the Neighborhood Networks category to 
any other funding category within this NOFA. If remaining funds under 
the Neighborhood Networks funding category are too small to make an 
award, they will be used to partially fund applications in rank order 
regardless of region in the existing center category.
    Match. At least 25 percent of the grant amount is required as the 
grant match.
    Eligible Applicants. Eligible applicants are Public Housing 
Agencies (PHAs), tribes/TDHEs, resident management corporations (RMCs), 
resident councils (RCs), resident organizations (ROs), Intermediary 
Resident Organizations (IROs), City-Wide Resident Organizations (CWROs) 
and nonprofits including grassroots, faith-based and other community 
based organizations that have resident support or the support of 
tribes. Tribes and TDHEs are not eligible for the Neighborhood Networks 
funding category. The following chart summarizes the funding categories 
available under ROSS, eligible applicants and application procedures.

------------------------------------------------------------------------
                                                          Application
              Grant                   Eligibility          procedure
------------------------------------------------------------------------
Resident Services Delivery Model- PHAs, Resident      Submit application
 Family (RSDM-Family).             Management          per SuperNOFA and
                                   Corporations        Program Section
                                   (RMCs), Resident    requirements.
                                   Councils (RCs),
                                   Resident
                                   Organizations
                                   (ROs),
                                   Intermediary
                                   Resident
                                   Organizations
                                   (IROs), City-Wide
                                   Resident
                                   Organizations
                                   (CWROs),
                                   nonprofits,
                                   Indian tribes,
                                   and tribally
                                   designated
                                   housing entities
                                   (TDHEs).
Resident Services Delivery Model- PHAs, Resident      Submit application
 Elderly and Persons with          Management          per SuperNOFA and
 Disabilities.                     Corporations        Program Section
                                   (RMCs), Resident    requirements.
                                   Councils (RCs),
                                   Resident
                                   Organizations
                                   (ROs),
                                   Intermediary
                                   Resident
                                   Organizations
                                   (IROs), City-Wide
                                   Resident
                                   Organizations
                                   (CWROs),
                                   nonprofits,
                                   Indian tribes/
                                   TDHEs.
Homeownership Supportive          PHAs, Resident      Submit application
 Services (HSS).                   Management          per SuperNOFA and
                                   Corporations        Program Section
                                   (RMCs), Resident    requirements.
                                   Councils (RCs),
                                   Resident
                                   Organizations
                                   (ROs),
                                   Intermediary
                                   Resident.
                                  Organizations       ..................
                                   (IROs), City-Wide
                                   Resident
                                   Organizations
                                   (CWROs),
                                   nonprofits,
                                   Indian tribes/
                                   TDHEs.
Neighborhood Networks (NN)......  PHAs and            Submit application
                                   nonprofits with     per SuperNOFA and
                                   expertise in this   Program Section
                                   area.               requirements.
Service Coordinator.............  PHAs which were     Renewal Program
                                   recipients of       only. New
                                   this grant in       applications will
                                   FY1995..            not be
                                                       considered.
                                                       Grantees will not
                                                       go through the
                                                       SuperNOFA
                                                       process. HUD will
                                                       send a letter to
                                                       1995 grantees
                                                       indicating
                                                       procedure for
                                                       applying.
------------------------------------------------------------------------

    Number of Applications Permitted.
    General. Applicants including PHAs, tribes/TDHEs, ROs, RCs, and 
nonprofits, including grassroots, faith-based or other community-based 
organizations that have resident support or the support of tribes may 
submit an application for more than one funding category, however 
applicants must submit separate applications for each funding category. 
NOTE: Applications from PHAs, tribes/TDHEs, ROs, RCs, RAs and nonprofit 
organizations targeting the same public housing development/population 
will not all be funded. HUD suggests that in these cases, applicants 
work together to submit one application. Otherwise, the highest scoring 
application will be funded. Nonprofits may submit more than one 
application provided that they will be serving residents of distinct 
Public Housing Authorities.
    Joint applications. Two or more applicants may join together to 
submit a joint application for proposed grant activities. Joint 
applications must designate a lead applicant. Both lead and non-lead 
applicants are subject to threshold requirements. Joint applications 
may include PHAs, RAs, IROs, Tribes/TDHEs, and nonprofit entities on 
behalf of resident organizations. Joint applications involving 
nonprofits must also provide evidence of resident support. The maximum 
funding for joint applications cannot exceed the amount of funding 
applicants would have collectively received had they applied 
individually.
    Grant term. The grant term for funding for each funding category 
under the ROSS program is thirty-six months from the execution date of 
the grant agreement.
    Extensions. The field office may grant one six-month extension, as 
long as the request for an extension occurs no less than one year of 
grant expiration. Other extensions require approval from the Deputy 
Assistant Secretary for the Office of Public Housing and Voucher 
Programs.

Additional Information

    If you are interested in applying for funding under any of these 
funding categories, please carefully review the application 
requirements provided for each grant category below.

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I. Application Due Date, Required Forms, Security Procedures, Further 
Information and Technical Assistance

    Application Due Date. The application due dates for each of the 
ROSS funding categories follows below:
    Neighborhood Networks: May 27, 2003.
    Resident Service Delivery Models-Elderly/Persons with Disabilities: 
June 11, 2003.
    Resident Service Delivery Models-Family: June 19, 2003.
    Homeownership Supportive Services: July 7, 2003. Application Kits. 
Application kits will not be used this year.
    Required Forms. In addition to the forms required in the General 
Section of the SuperNOFA, there are ROSS forms that are required. 
Please see Section VIII and Appendix B of this NOFA for more 
information on form submission.
    Mailing and Receipt Procedures.
    Please refer to the General Section of the SuperNOFA for mailing 
and receipt procedures.
    Proof of Timely Submission. Please see the General Section of the 
SuperNOFA.
    Number of Applications. Separate applications must be submitted for 
each ROSS funding category. Applications must be submitted in 
triplicate (one original and two identical copies). The original and 
one identical copy must be sent to the Grants Management Center by the 
deadline. The other identical copy must be submitted to your local HUD 
field office by the deadline. For tribal and TDHE applicants, both the 
original and two copies must be sent to the Denver Program Office of 
Native American Programs (DPONAP) according to the instructions in 
paragraph 4 below. If you do not submit the required number of copies 
HUD may request that you provide the additional copies to the 
appropriate HUD office(s) in accordance with the procedures described 
here in Section IX and in Section VIII of the General Section of the 
SuperNOFA, Corrections to Deficient Applications.
    Addresses. When submitting your application, you must refer to the 
name of the program for which you are seeking funding and include the 
correct room number to ensure that your application is properly 
directed. The address to use for the GMC is the following: Grants 
Management Center, Mail Stop: The name of the funding category to which 
you are applying, 501 School Street, SW., Suite 800, Washington, DC 
20024.
    In the case of tribes and TDHEs, please submit your completed 
application (the original and two copies) to the Denver Program Office 
of Native American Programs (DPONAP), 1999 Broadway, Suite 3390, 
Denver, CO 80202, by mail using the United States Postal Service (USPS) 
or it may be delivered only via the following four carrier services: 
United Parcel Service (UPS), FedEx, DHL, or Falcon Carrier. Delivery by 
these services must be made during HUD's business hours, between 8:30 
AM and 5:30 PM Eastern Standard Time (or Mountain Standard Time for 
Tribes and TDHEs), Monday through Friday. If these companies do not 
service your area, you must submit your application via the USPS. Do 
not submit the original and or a copy of the application to the Area 
ONAP.
    For Further Information and Technical Assistance. You may call the 
Public and Indian Housing Information and Resource Center at 1-800-955-
2232. For the hearing or speech impaired, please call the Federal Relay 
Service at 1-800-877-8339. In the case of tribes/TDHEs, please contact 
DPONAP at 1-800-561-5913 or (303) 675-1600 (this is not a toll free 
number).
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of the application. For more information about the date and 
time of the broadcast, you should consult the HUD web site at http://www.hud.gov/grants.

II. Definition of Terms

    City-Wide Resident Organization means an organization consisting of 
members from Resident Councils, Resident Management Corporations, and 
Resident Organizations who reside in public housing developments that 
are owned and operated by the same PHA within a city.
    Community Facility means a non-dwelling structure that provides 
space for multiple supportive services for the benefit of public or 
Indian housing residents and others eligible for the services provided. 
Supportive services may include but are not limited to:
    (1) Job-training;
    (2) After-school activities for youth;
    (3) Neighborhood Networks (formerly Twenty/20 Education Communities 
(TECs), Campus of Learners activities);
    (4) English as a Second Language (ESL) classes; and
    (5) Child care.
    Contract Administrator means an overall administrator and/or a 
financial management agent that oversees the financial aspects of a 
grant and assists in the entire implementation of the grant. All 
applicants except non-troubled PHAs, tribes and TDHEs must submit a 
signed Contract Administrator Partnership Agreement with their 
application. The agreement must be for the thirty-six month duration of 
the grant term. Your grant award shall be contingent upon having a 
Contract Administrator Partnership Agreement included in your 
application. Applicants, except non-troubled PHAs, who fail to submit a 
Contract Administrator Partnership Agreement will fail threshold and 
will not receive further consideration for funding. The Contract 
Administrator must assure that the financial management system and 
procurement procedures that will be in place during the grant term will 
fully comply with either 24 CFR part 84 or 85. Contract Administrators 
may be: Local Housing Agencies; community-based organizations such as 
Community Development Corporations (CDCs), churches, temples, 
synagogues, mosques; nonprofits; state/regional associations and 
organizations. Troubled PHAs are not eligible to be Contract 
Administrators. Grant writers who assist applicants prepare their ROSS 
applications are also ineligible to be Contract Administrators. 
Contract Administrators may not be paid at more than the daily 
equivalent of the rate paid for level IV of the government's Executive 
Schedule.
    Elderly person means a person who is at least 62 years of age.
    Jurisdiction-Wide Resident Organization means an incorporated 
nonprofit organization or association that meets the following 
requirements:
    (1) Most of its activities are conducted within the jurisdiction of 
a single housing authority;
    (2) There are no incorporated Resident Councils or Resident 
Management Corporations within the jurisdiction of the single housing 
authority;
    (3) It has experience in providing start-up and capacity-building 
training to residents and resident organizations; and
    (4) Public housing residents representing unincorporated Resident 
Councils within the jurisdiction of the single housing authority must 
comprise the majority of the board of directors.
    Tribally Designated Housing Entity (TDHE) is an entity authorized 
or established by one or more Indian tribe to act on behalf of each 
such tribe authorizing or establishing the housing entity.
    Indian tribe means any tribe, band, nation, or other organized 
group of a community of Indians, including any Alaska native village or 
regional or village corporation as defined in or established pursuant 
to the Alaska

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Native Claims Settlement Act, and that is recognized as eligible for 
the special programs and services provided by the United States to 
Indians because of their status as Indians pursuant to the Indian Self 
Determination and Education Act of 1975.
    Intermediary Resident Organizations means Jurisdiction-Wide 
Resident Organizations, City-Wide Resident Organizations, State-Wide 
Resident Organizations, Regional Resident Organizations, and National 
Resident Organizations.
    Match. All applicants are required to have in place a 25% match in 
cash or in-kind donations. The match is a threshold requirement. 
Applicants who do not demonstrate the minimum 25% match will fail the 
threshold requirement and will not receive further consideration for 
funding. If you are applying for more than one ROSS grant, you must use 
different sources of match donations for each grant application. Match 
donations must be firmly committed. ``Firmly committed'' means that the 
amount of match resources and their dedication to ROSS-funded 
activities must be explicit, in writing and signed by a person 
authorized to make the commitment. Letters of commitment, Memoranda of 
Understanding (MOU) or tribal resolution must be on organization 
letterhead, and signed by a person authorized to make the stated 
commitment whether it be in cash or in-kind services. The letters of 
commitment/MOUs/tribal resolution must indicate the annual level and/or 
amount of commitment, be dated within two months of the application 
deadline, and indicate how the commitment will relate to the proposed 
program. If volunteer time is being committed it should be calculated 
using the number of hours to be committed and multiplied by either the 
normal professional rate for the local area or the national minimum 
wage rate of $5.15/hour. The commitment should be in place at time of 
award and should be for the duration of the grant. If you, the 
applicant, propose to use your own, non-ROSS grant funds to meet the 
match requirement in whole or in part, you must also include a letter 
of support indicating the type of match (cash or in-kind) and how the 
match will be used. For tribal and TDHE applicants, you must submit a 
letter of support and/or tribal resolution committing to the 25% match. 
Applicant staff time is not an eligible cash or in-kind match. 
Applicants shall annotate the HUD-424-CB to list the sources and amount 
of each match for the duration of the grant term. Grant awards shall be 
contingent upon letters of commitment being submitted with your 
application.
    NAHASDA-assisted resident means a resident of an Indian tribe (as 
defined above) who has been assisted by the Native American Housing 
Assistance and Self-Determination Act (NAHASDA) of 1996.
    National Resident Organization (NRO) means an incorporated 
nonprofit organization or association for public housing that meets 
each of the following requirements:
    (1) It is national (i.e., conducts activities or provides services 
in at least two HUD Areas or two states);
    (2) It has the capacity to provide start-up and capacity-building 
training to residents and resident organizations; and
    (3) Public housing residents representing different geographical 
locations in the country are members of the board of directors.
    Nonprofit organization. A nonprofit organization is an organization 
that is exempt from federal taxation. A nonprofit can be organized for 
the following purposes: Charitable, religious, educational, scientific, 
literary and others. In order to qualify, an organization must be a 
corporation, community chest, fund or foundation. An individual or 
partnership will not qualify. To obtain nonprofit status, qualified 
organizations must file an application with the Internal Revenue 
Service (IRS) and receive designation as such by the IRS. For more 
information, go to www.irs.gov. Applicants who are in the process of 
applying for nonprofit status, but have not yet received nonprofit 
designation from the IRS, will not be considered nonprofit 
organizations.
    National nonprofit organizations means organizations that work on a 
national basis and have the capacity to mobilize resources on both a 
national and local level.
    Past Performance is a threshold requirement. HUD's field offices 
will evaluate applicants for past performance to determine whether an 
applicant has the capacity to manage the grant for which they are 
applying. The DPONAP will review past performance for tribal/TDHE 
submissions. Using Rating Factor 1, the field office will evaluate 
applicants' past performance. Applicants should carefully review Rating 
Factor 1 to ensure their application addresses each of the criteria 
requested therein. If applicants fail to address what is requested in 
Rating Factor 1, their application will fail threshold and will not 
receive further consideration. If applicants pass threshold, they will 
go on to be scored for Rating Factor 1 during the technical review 
process.
    Person with disabilities means a person who:
    (1) Has a condition defined as a disability in section 223 of the 
Social Security Act;
    (2) Has a developmental disability as defined in section 102 of the 
Developmental Disabilities Assistance Bill of Rights Act; or
    (3) Is determined to have a physical, mental, or emotional 
impairment which:
    (a) Is expected to be of long-continued and indefinite duration;
    (b) Substantially impedes his or her ability to live independently; 
and
    (c) Is of such a nature that such ability could be improved by more 
suitable housing conditions.
    The term ``person with disabilities'' does not exclude persons who 
have acquired immunodeficiency syndrome (HIV/AIDS) or any conditions 
arising from the etiologic agent for AIDS. In addition, no individual 
shall be considered a person with disabilities, for purposes of 
eligibility for low-income housing, solely on the basis of any drug or 
alcohol dependence.
    The definition provided above for persons with disabilities is the 
proper definition for determining program qualifications. However, the 
definition of a person with disabilities contained in section 504 of 
the Rehabilitation Act of 1973 and its implementing regulations must be 
used for purposes of reasonable accommodations.
    Project Coordinator is a person who is responsible for coordinating 
the proposed activities to ensure that their accomplishment will assist 
in achieving the overall grant goals and objectives.
    Project is the same as ``low-income housing project'' as defined in 
section 3(b)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437 et seq. ) (1937 Act).
    Resident Association (RA) means any or all of the forms of resident 
organizations as they are defined elsewhere in this Definitions section 
and includes Resident Councils (RC), Resident Management Corporations 
(RMC), Regional Resident Organizations (RRO), Statewide Resident 
Organizations (SRO), Jurisdiction-Wide Resident Organizations, and 
National Resident Organizations (NRO).
    Resident Council (RC) means (as provided in 24 CFR 964.115) an 
incorporated or unincorporated nonprofit organization or association 
that shall consist of persons residing in public housing and must meet 
each of the following requirements in order to receive official 
recognition from the PHA/HUD, and be eligible to receive

[[Page 21512]]

funds for RC activities and stipends for officers for their related 
costs for volunteer work in public housing. The following also applies 
to resident councils:
    (1) The RC must adopt written procedures such as by-laws, or a 
constitution, which provides for the election of residents to the 
governing board by the voting membership of the public housing 
residents. The elections must be held on a regular basis, but at least 
once every 3 years. The written procedures must provide for the recall 
of the resident board by the voting membership. These provisions shall 
allow for a petition or other expression of the voting membership's 
desire for a recall election, and set the percentage of voting 
membership that must be in agreement in order to hold a recall 
election. This threshold shall not be less than 10 percent of the 
voting membership.
    (2) The RC must have a democratically elected governing board that 
is elected by the voting membership. At a minimum, the governing board 
should consist of five elected board members. The voting membership 
must consist of heads of households (any age) and other residents at 
least 18 years of age or older and whose names appear on a lease for 
the unit in the public housing that the resident council represents.
    (3) The RC may represent residents residing in:
    (a) Scattered site buildings in areas of contiguous row houses;
    (b) One or more contiguous buildings;
    (c) A development; or
    (d) A combination of the buildings or developments described above.
    (4) The RC must be in good standing and recognized by the PHA.
    Regional Resident Organization (RRO) means an incorporated 
nonprofit organization or association for public housing that meets 
each of the following requirements:
    (1) The RRO is regional (i.e., not limited by HUD Areas);
    (2) The RRO has experience in providing start-up and capacity-
building training to residents and resident organizations; and
    (3) Public housing residents representing different geographical 
locations in the region must comprise the majority of the board of 
directors.
    Resident Management Corporation (RMC) (see 24 CFR 964.7, 964.120) 
means an entity that consists of residents residing in public housing 
and must have each of the following characteristics in order to receive 
official recognition by the PHA and HUD:
    (1) The RMC shall be a nonprofit organization that is incorporated 
under the laws of the state in which it is located;
    (2) The RMC may be established by more than one RC, so long as each 
such council:
    (a) Approves the establishment of the corporation; and
    (b) Has representation on the Board of Directors of the 
corporation.
    (3) The RMC shall have an elected Board of Directors, and elections 
must be held at least once every 3 years;
    (4) The RMC's by-laws shall require the Board of Directors to 
include resident representatives of each RC involved in establishing 
the corporation; include qualifications to run for office, frequency of 
elections, procedures for recall; and term limits if desired;
    (5) The RMC's voting members shall be heads of households (any age) 
and other residents at least 18 years of age and whose names appear on 
the lease of a unit in public housing represented by the RMC;
    (6) Where an RC already exists for the development, or a portion of 
the development, the RMC shall be approved by the RC board and a 
majority of the residents. If there is no RC, a majority of the 
residents of the public housing development it will represent must 
approve the establishment of such a corporation for the purposes of 
managing the project; and
    (7) The RMC may serve as both the RMC and the RC, so long as the 
corporation meets the requirements of 24 CFR part 964 for an RC.
    Resident Organization (RO) for tribal entities means an 
incorporated or unincorporated nonprofit tribal organization or 
association that meets each of the following criteria:
    (1) It shall consist of residents only, and only residents may 
vote;
    (2) If it represents residents in more than one development or in 
all of the developments of the tribal/TDHE community, it shall fairly 
represent residents from each development that it represents;
    (3) It shall adopt written procedures providing for the election of 
specific officers on a regular basis; and
    (4) It shall have democratically elected governing board. The 
voting membership of the board shall consist solely of the residents of 
the development or developments that the tribal RO represents.
    Secretary means the Secretary of Housing and Urban Development.
    Site-Based Resident Associations means Resident Councils or 
Resident Management Corporations representing a specific public housing 
development.
    Statewide Resident Organization (SRO) is an incorporated nonprofit 
organization or association for public housing that meets the following 
requirements:
    (1) The SRO is statewide;
    (2) The SRO has experience in providing start-up and capacity-
building training to residents and resident organizations; and
    (3) Public housing residents representing different geographical 
locations in the state must comprise the majority of the Board of 
Directors.
    Tribal/TDHE Resident Group means tribal/TDHE resident groups that 
are democratically elected groups such as IHA-wide resident groups, 
area-wide resident groups, single development groups, or resident 
management corporations (RMCs).

III. Program Description: Resident Service Delivery Models-Family

    (A) Program Description. The purpose of the ROSS RSDM-Family 
funding category is to provide funding to PHAs, tribes/TDHEs, resident 
organizations, nonprofits including grassroots, faith-based or other 
community-based organizations to create programs to help residents 
achieve economic self-sufficiency.
    HUD is looking for applications that implement comprehensive 
programs within the thirty-six month grant term which will result in 
improved economic self-sufficiency for Public or Indian housing 
residents.
    HUD is looking for proposals that involve partnerships with 
organizations that will help grantees provide educational programs, 
housing counseling, including fair housing counseling, job training and 
other supportive services for residents. Proposed grant activities 
should build on the foundation created by previous ROSS grants or other 
federal, state and local self-sufficiency efforts.
    (B) Available Funding. The amount of funding available for FY03 is 
$14,345,000.
    (C) Allocation. To the extent that there are a sufficient number of 
qualified applications, not less than 25 percent of funds available for 
RSDM-Family shall be provided directly to Resident Councils (RCs), 
Resident Organizations (ROs), Resident Management Corporations (RMCs), 
Intermediary Resident Organizations (IROs), and City-Wide Resident 
Organizations (CWROs). In addition, 5 percent of available funding 
shall be allocated to national nonprofit organizations provided there

[[Page 21513]]

is a sufficient number of qualified applications.
    (1) Maximum grant amount. For PHAs applying for RSDM-Family grants, 
the maximum grant award will be based on the number of occupied 
conventional family public housing units. Tribes/TDHEs applying for 
RSDM-Family grants should use the computation of units for the maximum 
grant amount, which is outlined below.
    (a) PHAs must use the number of occupied conventional family public 
housing units as of September 30, 2002 per their budget to determine 
the maximum grant amount they are eligible for in accordance with the 
categories listed below. PHAs should clearly indicate the number of 
units under management on the Fact Sheet.
    --For PHAs with 1 to 780 occupied conventional family public 
housing units, the maximum grant award is $250,000.
    --For PHAs with 781 to 2,500 occupied conventional family public 
housing units, the maximum grant award is $350,000.
    --For PHAs with 2501 to 7,300 occupied conventional family public 
housing units, the maximum grant award is $500,000.
    --For PHAs with 7,301 or more occupied conventional family public 
housing units, the maximum grant award is $1,000,000.
    --The maximum grant award is $100,000 for each RA.
    --Nonprofit entities that have resident support or the support of 
tribes or RAs/ROs are limited to $100,000 for each RA/RO. A nonprofit 
may submit a single application for no more than three different RAs 
from the same PHA for a maximum grant award of $300,000. Nonprofits may 
submit more than one application provided they target residents of 
distinct PHAs.
    (b) Tribes/TDHEs should use the number of units counted as Formula 
Current Assisted Stock for Fiscal Year 2002 as defined in 24 CFR 
1000.316. Tribes/TDHEs are eligible for the same amounts as PHAs within 
each category in (a) above. Tribes that have not previously received 
funds from the Department under the 1937 Housing Act should count 
housing units under management that are owned and operated by the Tribe 
and are identified in their housing inventory as of September 30, 2002 
for family units. Tribes should clearly indicate the number of units 
under management on the Fact Sheet.
    (D) Deobligation of Funds. HUD may deobligate amounts for the grant 
if proposed activities are not initiated or completed within the 
required time period after the effective date of the award. The grant 
agreement will set forth in detail circumstances under which funds may 
be deobligated and other sanctions imposed.
    (E) Eligible Applicants.
    (1) This funding category provides grants to PHAs, tribes/TDHEs, 
resident management corporations, resident councils, resident 
organizations, and nonprofit entities supported by HUD, residents or 
tribes, to enable them to establish and implement comprehensive 
programs that assist residents in becoming self-sufficient.
    (2) IROs with 501(c) status may apply as nonprofit entities under 
this funding category.

    Note: Applications from PHAs, tribes/TDHEs, ROs, RCs, RAs and 
nonprofit organizations targeting the same public housing 
development/population will not all be funded. HUD suggests that in 
these cases, applicants work together to submit one application. 
Otherwise, the highest scoring application will be funded.

    (F) Eligible Activities. This funding category is designed to 
provide resources that will benefit adult residents who seek to achieve 
economic self-sufficiency. This category is also designed to help youth 
residing in Public and Indian Housing succeed in school and begin 
planning their educational and economic future. Funds may be used for 
the activities described below. The eligible activities are listed 
below in four categories from basic to advanced: Life-Skills Training; 
Job Training, Job Search and Placement Assistance; Post Employment 
Follow-up and finally, Activities to Support Career Advancement and 
Long-term Economic Self-Sufficiency. Grantees are not limited to 
choosing one category of activities, but rather should design their 
programs to address the specific needs of the population they are 
targeting. Grantees are encouraged to pull from all categories and 
activities listed below:
    (1) Hiring of a qualified project coordinator to run the grant 
program. A qualified project coordinator is someone with at least two 
years of experience working on supportive services programs designed 
for typically underserved populations. The project coordinator should 
be hired for the entire term of your grant. The ROSS program will fund 
up to $62,500 in combined annual salary and fringe benefits for a full-
time project coordinator. However, the project coordinator's salary and 
administrative costs may not exceed more than 30% of the total grant 
amount. Other administrative costs, see paragraph 9 below, may not 
exceed 10% of the total grant amount requested from HUD. For audit 
purposes, applicants must have documentation on file demonstrating that 
the salary they pay the project coordinator is comparable to similar 
professions in their local area. The project coordinator should be 
responsible for:
    (a) Marketing the program to residents;
    (b) Assessing participating residents' skills and job-readiness;
    (c) Assessing participating residents' needs for supportive 
services, e.g. child care, transportation costs, etc.
    (d) Project coordinators working for tribes/TDHEs may assist the 
tribe or TDHE to create a Resident Group to promote self-sufficiency 
efforts on the reservation;
    (e) Designing and coordinating grant activities based on residents' 
needs and the local labor market; and
    (f) The project coordinator should be responsible for monitoring 
the progress of program participants and evaluating the overall success 
of the program. A portion of grant funds should be reserved to ensure 
that evaluations can be completed for all participants who received 
training through this program. For more information on how to measure 
performance, please see Rating Factor 5.
    (2) Life-skills Training for Youth and Adults.
    (a) Applying for a job. Filling out employment forms; highlighting 
skills employers are looking for; job opportunities in the area; 
calculating net wages; workplace norms (appropriate dress, punctuality, 
respectful communication, etc.).
    (b) Credit. What it means to have good credit; how to maintain good 
credit.
    (c) Banking and Money Management. Opening a bank account; balancing 
a checkbook; creating a weekly spending budget; contingency planning 
for child care and transportation, etc.
    (d) Real Life Issues. Tax forms; voter registration; lease samples; 
car insurance; health insurance; long-term care insurance; etc.
    (e) Literacy training and GED preparation.
    (f) College preparatory courses and information.
    (g) Goal setting.
    (h) Mentoring.
    (3) Job Training, Job Search and Placement Assistance:
    (a) Skills Assessment of target population.
    (b) Soft skills training which includes: Problem solving and other 
cognitive skills; oral and written communication skills; personal 
qualities and work ethic; interpersonal and teamwork skills.

[[Page 21514]]

    (c) Creating job training and placement programs with local 
employers.
    (d) Resume writing.
    (e) Interviewing techniques.
    (f) Employer linkage and job placement.
    Working with local employers to design and offer training that 
addresses their employment needs, create a job placement program that 
refers trained residents to participating employers and other local 
area employers.
    (g) Establish relationships with local job placement providers. 
Encourage them to participate in the training and to meet with 
residents.
    (4) Post-employment follow-up. After placing residents in jobs, 
follow-up and ongoing support to newly hired residents can have a 
significant impact on their long-term job retention. Activities can 
range from one-on-one meetings to weekly group sessions involving other 
residents who are making the same transition from welfare to work.
    (5) Activities to Support Career Advancement and Long-term Economic 
Self-Sufficiency.
    (a) Career advancement and planning programs. Such programs should 
be designed to:
    (i) Help residents identify a career goal and a timeline for 
achieving it;
    (ii) Provide strategies such as finding a strong professional 
mentor within a company; focusing on the organization's priorities.
    (iii) Reinforce initial welfare-to-work programs and focus efforts 
on increasing residents' earning capacity. Activities can include job 
counseling, helping residents secure better paying jobs or jobs in 
better work environments, preparing for work in a new job category, 
obtaining additional job skills and other educational training.
    (b) Working with local employers, create opportunities that combine 
education and job skill training with jobs. Strategies that promote 
work-based learning can offer the most effective method for giving new 
workers the tools they need to move on to a career ladder and achieve 
upward mobility.
    (c) Individual Savings Accounts (ISAs). You may create programs 
that encourage residents to save and contribute to matched savings 
accounts such as Individual Development Accounts (IDAs). The programs 
should include financial counseling and education activities. ISAs may 
only be used for three purposes: (1) To purchase a first home; (2) 
receiving post-secondary education or training; or (3) starting a small 
business. ROSS RSDM funds can be used as matching funds for ISAs but no 
more than 20% of total grant funds may be used for this purpose. You 
are encouraged to leverage RSDM funds by working with local financial 
organizations which can also contribute to residents' ISAs. FSS escrow 
accounts may not be used as a match for RSDM-funded ISAs. Grantees 
shall consult the Internal Revenue Service regarding possible tax 
consequences to participating residents of the ISAs.
    (d) Housing Counseling for Homeownership. ``Pre-purchase'' 
homeownership counseling and training; which may include training on 
such subjects as credit and financial management; credit repair; 
housing search; how to finance purchase of a home; fair housing; 
Individual Development Accounts, Real Estate Settlement Procedures Act 
(RESPA); and home maintenance.
    (6) Stipends. Stipends are an eligible use of grant funds. However, 
no more than $200 of the grant award may be used per participant per 
month for stipends for active trainees and program participants to 
reimburse reasonable out-of-pocket expenses related to participation in 
training and other program-related activities. Reasonable costs 
reimbursable with stipends include such things as local transportation 
to and from job training and job interviews, supplemental educational 
materials, and child care expenses. Receipts for such expenses should 
be provided by the resident in order to obtain reimbursement. Stipends 
must be tied to residents' successful performance and regular 
attendance. Stipends are not considered an administrative expense and 
therefore are not subject to the 10% limitation on administrative 
costs.
    (7) Hiring of Residents. Grant funds may also be used to hire a 
resident(s) as program staff. Residents' salaries are to come out of 
administrative expenses, see section 9 ``Administrative Costs'' below.
    (8) Supportive Services.
    (a) After school programs for school-age children to include 
tutoring, remedial training, educational programming using computers.
    (b) Provision of information on the Earned Income Tax Credit 
Program, Food Stamps, Child Tax Credit Program, Medicaid, the State 
Child Health Insurance Program (S-CHIP), Student Loan Interest 
Deduction, tribal welfare programs, and other benefit programs that can 
assist individuals and families make a successful transition from 
welfare to work.
    (c) Housing Counseling to help residents move to market rate rental 
housing.
    (d) Transportation costs as necessary to enable participating 
families to receive services or commute to training or employment.
    (e) Child-care provision for ROSS-RSDM program participants.
    (f) Parenting courses.
    (g) Nutrition courses.
    (h) Healthcare information and services including referrals to 
mental health providers, alcohol and other drug abuse treatment 
programs.
    (i) English as a second language (ESL) classes.
    (j) Creating and maintaining linkages to local social service 
agencies, such as employment agencies, health departments, 
transportation agencies, economic/community development agencies, 
community colleges, recreational and cultural services, and other 
community organizations such as Boys & Girls Clubs, 4H-Clubs, Boy 
Scouts, Girl Scouts, etc.
    (9) Administrative costs. Administrative costs may include, but are 
not limited to, purchase of furniture, office equipment and supplies, 
salaries for resident employees hired as part of this grant program, 
quality assurance, local travel, and utilities. Nonprofit organizations 
only may use administrative funds to pay for rental of space. 
Administrative costs must not exceed 10 percent of the total grant 
amount requested from HUD. Administrative costs must adhere to OMB 
Circular A-87. Please use HUD-424-CBW to itemize your administrative 
costs.
    (G) Ineligible Activities.
    Activities for which costs are ineligible for funding under the 
RSDM-Family funding category include:
    (1) Payment of wages and/or salaries to participants receiving 
supportive services and/or training programs;
    (2) Purchase or rental of land;
    (3) New construction, materials costs;
    (4) Rehab or physical improvements;
    (5) Purchase or rental of vehicles; and
    (6) Cost of application preparation.
    (H) Threshold Requirements. Applicants must respond to threshold 
requirements clearly and thoroughly by following the instructions 
below. If your application fails one threshold requirement (regardless 
of the type of threshold) it will be considered a failed application 
and will not be reviewed further.
    (1) Match. All applicants are required to have in place as defined 
in this NOFA a firmly committed 25% match in cash or in-kind donations. 
Applicants who do not demonstrate the minimum

[[Page 21515]]

25% match will fail this threshold requirement and will not receive 
further consideration for funding. If you are applying for more than 
one ROSS grant, you must use different sources of match donations for 
each grant application. Match donations must be firmly committed. 
``Firmly committed'' means that the amount of match resources and their 
dedication to ROSS-funded activities must be explicit, in writing and 
signed by a person authorized to make the commitment. Letters of 
commitment, Memoranda of Understanding (MOU) or tribal resolution must 
be on organization letterhead, and signed by a person authorized to 
make the stated commitment whether it be in cash or in-kind services. 
The letters of commitment/MOUs/tribal resolutions must indicate the 
annual level and/or amount of commitment, be dated within two months of 
the application deadline, and indicate how the commitment will relate 
to the proposed program. If volunteer time is being committed it should 
be calculated using the number of hours to be committed and multiplied 
by either the normal professional rate for the local area or the 
national minimum wage rate of $5.15/hour. The commitment should be in 
place at time of award and should be for the duration of the grant. If 
you, the applicant, propose to use your own, non-ROSS grant funds to 
meet the match requirement in whole or in part, you must also include a 
letter of support/tribal resolution indicating the type of match (cash 
or in-kind) and how the match will be used. Applicant staff time is not 
an eligible cash or in-kind match. Applicants shall annotate the HUD-
424-CB to list the sources and amount of each match for the duration of 
the grant term. Grant awards shall be contingent upon letters of 
commitment being submitted with your application.
    (2) Past Performance. HUD's field offices will evaluate applicants 
for past performance to determine whether an applicant has the capacity 
to manage the grant for which they are applying. Using Rating Factor 1, 
the field office will evaluate applicants' past performance. Applicants 
should carefully review Rating Factor 1 to ensure their application 
addresses each of the criteria requested therein. If applicants fail to 
address what is requested in Rating Factor 1, their application will 
fail threshold and will not receive further consideration. If 
applicants pass threshold, they will go on to be scored for Rating 
Factor 1 during the technical review process.
    (3) All applicants except non-troubled PHAs and tribes/TDHEs are 
required to submit a signed Contract Administrator Partnership 
Agreement. The agreement must be for the thirty-six month duration of 
the grant term. Your grant award shall be contingent upon having a 
Partnership Agreement included in your application. The Contract 
Administrator must assure that the financial management system and 
procurement procedures that will be in place during the grant term will 
fully comply with either 24 CFR part 84 or 85. Troubled PHAs are not 
eligible to be Contract Administrators. Grant writers who assist 
applicants prepare their ROSS applications are also ineligible to be 
Contract Administrators. See the definition in Section III of Contract 
Administrator for more information.
    (4) Nonprofit applicants must include letters from Resident 
Organizations (RO), Resident Associations (RA) indicating that the ROs/
RAs you will be working with support your application. Letters from 
ROs/RAs must be signed by a person authorized to sign for the 
organization and should, whenever be possible, be on RO/RA letterhead.
    (H) Program Requirements.
    (1) Eligible Participants. All program participants must be 
residents of conventional public or NAHASDA-assisted Housing. 
Participants in the Public or Indian Housing Family Self-Sufficiency 
(FSS) programs who are residents of public housing (non Housing Choice 
Voucher Program) are also eligible to participate in activities funded 
under this category.
    (2) Resident Assessment. Applicants are required to assess 
residents' needs and interests so that program activities are designed 
to address their needs.
    (3) Partnering. Applicants should partner with local schools, 
libraries, businesses, banks, employment agencies, housing counseling 
agencies (preferably HUD-approved), state and local social service 
agencies, or other organizations which will help applicants deliver 
supportive services and fulfill residents' needs. These organizations 
can provide additional expertise, volunteers, office supplies, training 
materials, software, equipment, and other resources.
    (4) Performance Reports. The grantee shall submit semi-annual 
performance reports to the field office. These progress reports shall 
include financial reports (SF-269A) and a narrative describing 
milestones, work plan progress, and problems encountered and methods 
used to address these problems. HUD anticipates that some of the 
reporting of financial status and grant performance will be through 
Internet-based submissions. Grantees shall use quantifiable data to 
measure performance against goals and objectives outlined in its work 
plan. Performance reports are due to the field office on July 30 and 
January 31 of each year. If reports are not received by the due date, 
grant funds will not be advanced until reports are received.
    (5) Final Report. The grantees shall submit a final report which 
will include a financial report (SF-269A) and a narrative evaluating 
overall performance against its work plan. Grantees shall use 
quantifiable data to measure performance against goals and objectives 
outlined in its work plan. The financial report shall contain a summary 
of all expenditures made from the beginning of the grant agreement to 
the end of the grant agreement and shall include any unexpended 
balances. The final narrative and financial report shall be due to the 
field office 90 days after the termination of the grant agreement.
    (6) Final Audit. Grantees are required to obtain a complete final 
close-out audit of the grant's financial statements by a Certified 
Public Accountant (CPA), in accordance with generally accepted 
government audit standards. A written report of the audit must be 
forwarded to HUD within 60 days of issuance. Grant recipients must 
comply with the requirements of 24 CFR part 84 or 24 CFR part 85 as 
stated in OMB Circulars A-110, A-87, and A-122, as applicable.
    (J) Application Selection Process.
    (1) Four types of reviews will be conducted: A screening to 
determine if you are eligible to apply for this funding category; 
whether your application submission is complete, on time and meets 
threshold; a review by the field office to evaluate past performance; 
and a technical review to rate your application based on the five 
rating factors provided in this section. A minimum score of 75 is 
required for the application to be considered for funding.
    (2) The selection process is designed to achieve geographic 
diversity of grant awards throughout the country. HUD will first select 
the highest ranked application from each of the ten federal regions and 
DPONAP for funding. After this ``round,'' HUD will select the second 
highest ranked application in each of the ten federal regions and 
DPONAP for funding (the second round). HUD will continue this process 
with the third, fourth, and so on, highest ranked applications in each 
federal region and DPONAP until the last complete round is selected for 
funding. If available funds exist to fund some but not all eligible 
applications in the next round, HUD will make awards to those remaining 
applications in rank order regardless of region and DPONAP and

[[Page 21516]]

will fully fund as many as possible with remaining funds. If remaining 
funds are too small to make an award, they may be transferred to 
another category. If transfer of funds does become necessary, HUD will 
give first priority to Homeownership Supportive Services, second 
priority to RSDM-Family and third priority to RSDM-Elderly.
    (K) Factors for Award Used to Evaluate and Rate RSDM-Family. The 
factors for rating and ranking applicants and maximum points for each 
factor are provided below. The maximum number of points available for 
this program is 102. This includes two RC/EZ/EC bonus points, as 
described in the General Section of the SuperNOFA. The SuperNOFA 
contains a certificate that must be completed in order for the 
applicant to be considered for RC/EZ/EC bonus points. A listing of 
federally designated RCs, EZs, ECs, EECs and Strategic Planning 
Communities is attached to the General Section of the SuperNOFA as 
Appendix A-2 and is also available from the SuperNOFA Information 
Center, and the HUD Web site, www.hud.gov.

    Note: Applicants should carefully review each rating factor 
before writing a response. Applicants' narratives should be as 
descriptive as possible, ensuring that every requested item is 
addressed. Applicants should make sure to include all requested 
information, according to the instructions found in Section VIII of 
this NOFA. This will help ensure a fair and accurate review of your 
application. Applications must not be longer than 30 narrative 
pages. Supporting documentation and certificates will not be counted 
towards the 30 page limit. However, applicants should make every 
effort to submit only what is necessary in terms of supporting 
documentation.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (20 Points)

    This factor addresses whether the applicant has the organizational 
resources necessary to successfully implement the proposed activities 
within the grant period. In rating this factor HUD will consider the 
extent to which the proposal demonstrates that the applicant will have 
qualified and experienced staff dedicated to administering the program.
    (A) Proposed Program Staffing (7 Points).
    (1) Staff Experience (4 Points). The knowledge and experience of 
your proposed project coordinator, staff, subcontractors, and partners 
in planning and managing programs for which funding is being requested. 
Experience will be judged in terms of recent, relevant and successful 
experience of your staff to undertake eligible program activities. In 
rating this factor, HUD will consider experience within the last 5 
years to be recent; experience pertaining to the specific activities 
being proposed to be relevant; and experience producing specific 
accomplishments to be successful. The more recent the experience and 
the more experience your own staff members who work on the project have 
in successfully conducting and completing similar activities, the 
greater the number of points you will receive for this rating factor. 
The following information should be provided in order to provide HUD an 
understanding of your staff's experience and capacity:
    (a) The number of staff years (one staff year = 2080 hours) to be 
allocated to your program by each employee or expert as well as each of 
their roles in the program;
    (b) The staff's relevant educational background and/or work 
experience; and
    (c) Relevant and successful experience running programs whose 
activities are similar to the eligible program activities described in 
this grant category.
    (2) Staff Capacity (3 Points). You will be evaluated based on 
whether you, your subcontractors and partners have sufficient personnel 
or will be able to quickly access enough qualified experts or 
professionals, to deliver the proposed activities in a timely and 
effective fashion. Your ability to immediately begin the proposed work 
program will also be evaluated. Attach resumes or position descriptions 
(where staff is not yet hired) for all key personnel. (Resumes do not 
count toward the 30-page limit.)
    (B) Past Performance of Applicant/Project Coordinator (6 Points) 
Your narrative must describe how you (or your proposed Project 
Coordinator) successfully implemented grant programs (including those 
listed below) designed to promote resident self-sufficiency or moving 
from welfare to work. You will be evaluated according to the following 
criteria:
    (1) Achievement of specific measurable outcomes and objectives in 
terms of benefits gained by participating residents (i.e. higher 
incomes, higher rates of employment, increased savings, improved 
literacy, etc.);
    (2) Success in attracting and keeping residents involved in past 
grant programs so that grant activities benefited a significant numbers 
of residents;
    (3) Timely expenditure of funds throughout the term of the grant. 
Timely means regular drawdowns throughout the life of the grant, i.e. 
quarterly drawdowns, with all funds expended by the end of the grant 
term;
    (4) Leveraging of funding or in-kind services beyond that which was 
originally proposed to be used for past projects;
    (5) Long-term partnerships formed with local employers, libraries, 
community organizations, social service agencies, local colleges and 
universities, etc.
    Your past experience may include, but is not limited to, programs 
aimed at assisting residents of low-income housing achieve economic 
self-sufficiency; i.e. Tenant Opportunities Program; Public Housing 
Drug Elimination program and Youthbuild. Your narrative must indicate 
the grants, grant amounts, grant terms and grant sources which you are 
counting towards past experience.
    (C) Program Administration and Fiscal Management. (7 Points)
    (1) Program Administration. (4 Points). Describe how you will 
manage the program; how HUD can be sure that there is program 
accountability; and describe staff's roles and responsibilities.
    (2) Fiscal Management. (3 Points). In rating this factor, your 
skills and experience in fiscal management will be evaluated. If you 
have had any audit or material weakness findings, you will be evaluated 
on how well you have addressed them. You must provide the following:
    (a) A complete description of your fiscal management structure, 
including fiscal controls you have in place including those of a 
Contract Administrator for all applicants except non-troubled PHAs, 
tribes and TDHEs;
    (b) List any audit findings (HUD Inspector General, management 
review, fiscal, etc.), material weaknesses and what you have done to 
address them;
    (c) For applicants who are required to have a Contract 
Administrator, describe the skills and experience your Contract 
Administrator has in managing federal funds.

Rating Factor 2: Need/Extent of the Problem (20 Points)

    This factor addresses the extent to which there is a need for 
funding your proposed program and your indication of the importance of 
meeting the need in the target area. In responding to this factor, you 
will be evaluated on the extent to which you describe and document the 
level of need for your proposed activities and the urgency in meeting 
the need.
    You should use statistics and analyses contained in data source(s) 
that are sound and reliable. Data that describes

[[Page 21517]]

socioeconomic conditions at the local level can be found by going to 
the following websites: www.bls.gov (Bureau of Labor Statistics) or 
www.census.gov (US Census). Other types of sources include Continuum of 
Care gaps analysis, law enforcement agency crime reports, academic, 
state, and local sources. To the extent possible, the data you use 
should be specific to the area where the proposed activities will be 
carried out. You should document needs as they apply to the area where 
activities will be targeted, rather than the entire locality or state.
    In responding to this factor, you should include:
    (1) Socioeconomic Profile (5 points). A thorough socioeconomic 
profile of the eligible residents to be served by your program, 
including education levels, income levels, the number of single-parent 
families, economic statistics for the local area, crime levels, etc.
    (2) Local Training Program Information (5 points). Information on 
training programs currently available and easily accessible to 
residents either through the PHA, tribe/TDHE, or other local or state 
community organizations.
    You may also address needs in terms of fulfilling the requirements 
of court actions or other legal decisions or which expand upon the 
Analysis of Impediments to Fair Housing Choice (AI) to further fair 
housing. If you address needs that are in your community's Consolidated 
Plan, AI, or a court decision, or identify and substantiate needs in 
addition to those in the AI, you will receive a greater number of 
points than applicants who do not relate their proposed program to the 
approved Consolidated Plan or AI or court action. NOTE: Fines, 
penalties, damages, and other settlements resulting from violations (or 
alleged violations) of, or failure of the applicant to comply with 
federal, state, local or Indian tribal laws and regulations are 
unallowable means in which to satisfy this Rating Factor, except when 
incurred as a result of compliance with specific provisions of the 
federal award or written instructions by the awarding agency 
authorizing in advance such payments.
    (3) Resource Documentation (3 points). The names and/or titles of 
information resources you used to document the need/extent of the 
problem.
    (4) Demonstrated Link Between Proposed Activities and Local Need (7 
points). There must be a clear relationship between your proposed 
activities, community needs and the purpose of the program funding for 
you to receive points for this factor.

Rating Factor 3: Soundness of Approach (30 Points)

    This factor addresses both the quality and cost-effectiveness of 
your proposed work plan. Your work plan must indicate a clear 
relationship between your proposed activities, the targeted 
population's needs, and the purpose of the program funding. Your 
activities must address HUD's policy priorities which relate to this 
program.
    In rating this factor HUD will consider:
    (A) Quality of the Work Plan (18 points). This factor evaluates 
both your work plan and your budget and will be evaluated based on the 
following components:
    (1) Specific Services and/or Activities (6 points). Your narrative 
must describe the specific services and activities you plan to offer 
and who will be responsible for each. You must also provide a work plan 
which will enumerate the specific services and activities and outcomes 
you expect. Please see a sample work plan in Appendix B. HUD will 
consider how well your proposed activities will:
    (a) Involve community partners in the delivery of services; and
    (b) Offer comprehensive services versus a small range of services 
geared toward enhancing economic opportunities for residents.
    (2) Feasibility and Demonstrable Benefits (4 points). This factor 
examines whether your work plan is logical, feasible and likely to 
achieve its stated purpose during the term of the grant. HUD's desire 
is to fund projects that will quickly produce demonstrable results and 
advance the purposes of the ROSS program.
    (a) Timeliness. This subfactor evaluates whether your work plan 
demonstrates that your project is ready to be implemented shortly after 
grant award, but not to exceed three months following the execution of 
the grant agreement. Your work plan should indicate timeframes and 
deadlines for accomplishing major activities.
    (b) Description of the problem and solution. Your work plan will be 
evaluated based on how well your proposed activities address the needs 
described in Factor 2.
    (3) Budget Appropriateness/Efficient Use of Grant. (4 Points) The 
score in this factor will be based on the following:
    (a) Justification of expenses. You will be evaluated based on 
whether your expenses are reasonable and well-explained.
    (b) Budget Efficiency. You will be evaluated based on whether your 
application requests funds commensurate with the level of effort 
necessary to accomplish your goals and anticipated results.
    (4) Involving Residents in the Design of the Work Plan (4 points). 
All applicants should make every effort to involve residents in the 
design of the work plan, so that activities and services offered by 
your organization address their needs.
    (B) Addressing HUD's Policy Priorities (12 points). HUD wants to 
improve the quality of life for those living in distressed communities. 
HUD's grant programs are a vehicle through which constructive changes 
can be achieved. Your narrative and work plan will be evaluated based 
on how well it meets the following HUD policy priorities:
    (1) Improving the Quality of Life in Our Nation's Communities (5 
points). In order to receive points in this category, your narrative 
and work plan must indicate the types of activities and training 
programs you will offer which can help residents successfully 
transition from welfare to work and earn higher wages.
    (2) Providing Full and Equal Access to Grassroots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation (7 
points). HUD encourages applicants to partner with grassroots 
organizations, e.g., civic organizations, grassroots faith-based and 
other community-based organizations that are not usually effectively 
utilized. These grassroots organizations have a strong history of 
providing vital community services such as developing first-time 
homeownership programs, creating economic development programs, 
providing job training and other supportive services. In order to 
receive points under this factor, your narrative and work plan must 
describe how you will work with these organizations and what types of 
services they will provide.

Rating Factor 4: Leveraging Resources (20 Points)

    This factor addresses your ability to secure community resources 
that can be combined with HUD's grant resources to achieve program 
purposes. Applicants are required to create partnerships with 
organizations that can help achieve their program's goals. PHAs are 
required by QHWRA (Sec. 12(d)(7) of the U.S. Housing Act, entitled 
``Cooperation Agreements for Economic Self-Sufficiency Activities'') to 
make best efforts to enter into such agreements with relevant state or 
local agencies. In rating this factor, HUD will look at the

[[Page 21518]]

extent to which you partner, coordinate and leverage your services with 
other organizations serving the same or similar populations.
    Additionally, you must have at least a 25 percent cash or in-kind 
match. The match is a threshold requirement. Applicants who do not 
demonstrate the minimum 25% match will fail the threshold requirement 
and will not receive further consideration for funding. If you are 
applying for more than one grant ROSS grant, you must use different 
sources of match donations for each grant application. Leveraging in 
excess of the 25 percent of the grant amount will receive a higher 
point value. In evaluating this factor HUD will consider the extent to 
which you have partnered with other entities to secure additional 
resources to increase the effectiveness of your proposed program 
activities. The budget, the work plan, and commitments for additional 
resources and services, other than the grant, must show that these 
resources are firmly committed, will support the proposed grant 
activities and will, in combined amount (including in-kind 
contributions of personnel, space and/or equipment, and monetary 
contributions) equal at least 25 percent of the grant amount proposed 
in this application. ``Firmly committed'' means that the amount of 
resources and their dedication to ROSS-funded activities must be 
explicit, in writing and signed by a person authorized to make the 
commitment. Letters of commitment, Memoranda of Understanding (MOU), or 
tribal resolutions must be on organization letterhead and signed by a 
person authorized to make the stated commitment. The letters of 
commitment/MOUs/tribal resolutions must indicate the annual level and/
or amount of commitment, be dated within two months of the application 
deadline, and indicate how the commitment will relate to the proposed 
program. If you, the applicant, propose to use your own, non-ROSS grant 
funds to meet the match requirement in whole or in part, you must also 
include a letter of support indicating the type of match (cash or in-
kind) and how the match will be used. For tribal and TDHE applicants, 
you must submit a letter of support and/or tribal resolution committing 
to the 25% match. Applicant staff time is not an eligible cash or in-
kind match. Applicants shall annotate their budget form (the HUD-424-
CB) to list the sources and amount of each match. Grant awards shall be 
contingent upon letters of commitment being submitted with your 
application.
    (A) Volunteer time and services shall be computed by using the 
normal professional rate for the local area or the national minimum 
wage rate of $5.15 an hour (Note: Applicants may not use their staff 
time towards the match);
    (B) In order for HUD to determine the value of any donated 
material, equipment, staff time, building, or lease, your application 
must provide a letter from the organization making the donation stating 
the value of the contribution. The letter must be on letterhead, signed 
by an official authorized to make such commitments on behalf of the 
donating organization and must be dated within two months of the 
application deadline.
    (C) Other resources/services that can be committed include: in-kind 
services, contributions or administrative costs provided to the 
applicant; funds from federal sources (not including ROSS funds) as 
allowed by statute, including for example Community Development Block 
Grant (CDBG) and federal Revenue Sharing; funds from any state or local 
government sources; and funds from private contributions. You may also 
partner with other program funding recipients to coordinate the use of 
resources in your target area.
    (D) Points for this factor will be awarded based on the documented 
evidence of partnerships and firm commitments and the ratio of 
requested ROSS funds to the total proposed grant budget.
    Points will be assigned based on the following scale:

------------------------------------------------------------------------
                                                                 Points
                     Percentage of match                        awarded
------------------------------------------------------------------------
25...........................................................          5
26-50........................................................         10
51-75........................................................         15
76-99 or above...............................................         20
------------------------------------------------------------------------

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    An important element in this year's NOFA is the development and 
reporting of performance measures and outcomes. Under this rating 
factor, applicants must demonstrate how they propose to measure their 
success and outcomes as they relate to the Department's Strategic Plan.
    This factor emphasizes HUD's determination to ensure that 
applicants meet commitments made in their applications and grant 
agreements and that they assess their performance so that they realize 
performance goals. HUD requires ROSS applicants to develop an 
effective, quantifiable, outcome oriented work plan for measuring 
performance and determining that goals have been met.
    ``Outcomes'' are benefits accruing to the residents, families and/
or communities during or after participation in the ROSS program. 
Outcomes are not the actual development of self-sufficiency services or 
program activities. Applicants must clearly identify the outcomes to be 
achieved and measured. Examples of outcomes are: Increasing the 
homeownership rates among residents of a development or from a 
particular housing authority, increasing residents' financial stability 
(e.g. increasing assets of a household through savings), or increasing 
employment stability (e.g., whether persons assisted obtain or retain 
employment for one or two years after job training completion).
    In addition to outcomes, applicants must establish interim 
benchmarks or outputs for their proposed program that lead to the 
ultimate achievement of outcomes. ``Outputs'' are the direct products 
of a program's activities. Examples of outputs are: The number of 
eligible families that participate in supportive services, the number 
of new services provided, the number of residents receiving counseling, 
or the number of households using a technology center. Outputs should 
produce outcomes for your program.
    This rating factor requires that you, the applicant, identify 
program outcomes, outputs, benchmarks, and performance indicators that 
will allow you to measure your performance. Performance indicators 
should be objectively quantifiable and measure actual achievements 
against anticipated achievements. Your work plan should identify what 
you are going to measure, how you are going to measure it, and the 
steps you have in place to make adjustments to your work plan if 
performance targets are not met within established timeframes.
    In order to satisfy the requirements for Factor 5, you must submit 
a work plan and a Logic Model that demonstrates how you will measure 
your own program performance. Your plan must identify the outcomes you 
expect to achieve or goals you hope to meet over the term of your 
proposed grant and benchmarks, outputs, and timeframes for 
accomplishing these goals. Your work plan must show how you will 
measure actual accomplishments against anticipated achievements. You 
must indicate how your plan will measure the performance of individual 
consortium members and affiliates, including the standards, data 
sources, and measurement methods, and the steps you have in place or 
how you plan to make adjustments if you begin to fall

[[Page 21519]]

short of established benchmarks and timeframes.
    Applicants should also use the Logic Model provided in the General 
Section of this SuperNOFA for reporting on how they will conduct 
performance measurement. You will be evaluated based on how 
comprehensively you propose to measure your program's outcomes.

IV. Program Description: Resident Service Delivery Models--Elderly and 
Persons With Disabilities

    (A) Program Description. The Resident Service Delivery Models 
(RSDM)-Elderly and Persons with Disabilities funding category is 
intended to provide PHAs, Resident Management Corporations, Resident 
Councils, Resident Organizations, Intermediary Resident Organizations, 
City-Wide Resident Organizations, nonprofits and Indian tribes/TDHEs 
with the resources to provide and coordinate supportive services that 
lead elderly and/or disabled public housing residents to independent 
living.
    HUD is looking for applications that implement comprehensive 
programs within the thirty-six month grant term which will result in 
improved living conditions for the target population. HUD is looking 
for proposals that involve partnerships with organizations that will 
help grantees provide enhanced services to the elderly/persons with 
disabilities they will serve. Proposed grant activities should build on 
the foundation created by previous ROSS grants or other federal, state 
and local self-sufficiency efforts to assist these populations.
    (B) Available Funding. The amount of funding available for FY03 is 
$9,300,300.
    (C) Allocation. To the extent that there are a sufficient number of 
qualified applications, not less than 25 percent of funds available for 
RSDM-Elderly and Persons with Disabilities shall be provided directly 
to Resident Councils (RCs), Resident Organizations (ROs), Resident 
Management Corporations (RMCs), Intermediary Resident Organizations 
(IROs), and City-Wide Resident Organizations (CWROs). In addition, 5 
percent of available funding shall be allocated to national nonprofit 
organizations provided there is a sufficient number of qualified 
applications.
    1. Maximum grant amount. For PHAs applying for the RSDM-Elderly and 
Persons with Disabilities funding category, the maximum grant award 
will be based on the number of occupied elderly and disabled 
conventional public housing units. Tribes/TDHEs applying for this 
funding category should use the computation of units for the maximum 
grant amount, which is outlined below.
    (a) PHAs must use the number of occupied elderly and disabled 
conventional public housing units as of September 30, 2002, per their 
budget to determine the maximum grant amount they are eligible for in 
accordance with the categories listed below. PHAs should clearly 
indicate the number of units under management on the Fact Sheet.
    --For 1 to 217 units occupied by elderly residents and persons with 
disabilities, the maximum grant award is $100,000.
    --For 218 to 1,155 units occupied by elderly residents and persons 
with disabilities, the maximum grant award is $200,000.
    --For 1,156 or more units occupied by elderly residents and persons 
with disabilities, the maximum grant award is $300,000.
    --The maximum grant award is $100,000 for each RA.
    --Nonprofit entities that have resident support or RAs/ROs are 
limited to $100,000 for each RA/RO. A nonprofit may submit a single 
application for no more than three different RAs from the same PHA for 
a maximum grant award of $300,000. Nonprofits may submit more than one 
application provided they target residents of distinct PHAs.
    (b) Tribes/TDHEs should use the number of units counted as Formula 
Current Assisted Stock for Fiscal Year 2002 as defined in 24 CFR 
1000.316. Tribes/TDHEs are eligible for the same amount of funding as 
PHAs within each category in (a) above. Tribes who have not previously 
received funds from the Department under the 1937 Housing Act should 
count housing units under management that are owned and operated by the 
Tribe and are identified in their housing inventory as of September 30, 
2002 for elderly/disabled units. Tribes should clearly indicate the 
number of units under management on the Fact Sheet.
    (D) Deobligation of Funds. HUD may deobligate amounts for the grant 
if proposed activities are not initiated or completed within the 
required time period after the effective date of the award. The grant 
agreement will set forth in detail circumstances under which funds may 
be deobligated and other sanctions imposed.
    (E) Eligible Applicants.
    (1) This funding category provides grants to PHAs, tribes/TDHEs, 
resident management corporations, resident councils, resident 
organizations, and nonprofits, including grassroots, faith-based and 
other Community-based organizations, that have resident support or have 
the support of tribes, so they may provide supportive services for 
elderly and/or disabled residents. PHAs that are recipients of the 
Service Coordinator grant are not eligible to apply for this ROSS 
funding category.
    (2) IROs with 501(c) status may apply as nonprofit entities under 
this funding category.

    Note: Applications from PHAs, tribes/TDHEs, ROs, RCs, RAs and 
nonprofit organizations targeting the same public housing 
development/population will not all be funded. HUD suggests that in 
these cases, applicants work together to submit one application. 
Otherwise, the highest scoring application will be funded.

    (F) Eligible Activities.
    (1) Hiring of a qualified project coordinator to run the grant 
program. A qualified project coordinator is someone with at least two 
years of experience working on supportive services programs designed 
for elderly and/or disabled people. The ROSS program will fund up to 
$62,500 in combined annual salary and fringe benefits for a full-time 
project coordinator. However, the project coordinator's salary and 
administrative costs may not exceed more than 30% of the total grant 
amount. Other administrative costs, see paragraph 9 below, may not 
exceed 10% of the total grant amount requested from HUD. For audit 
purposes, applicants must have documentation on file demonstrating that 
the salary they pay the project coordinator is comparable to similar 
professions in their local area. The project coordinator will be 
responsible for:
    (a) Assessing participating residents' needs for supportive 
services (e.g. Medicaid, Medicare, physician care, food stamps, 
rehabilitation services, veterans disability, state-funded programs 
such as nurse case management, housekeeping, Meals-on-Wheels; 
transportation etc.);
    (b) Designing and coordinating grant activities based on residents' 
needs;
    (c) The project coordinator shall be responsible for monitoring the 
progress of program participants and evaluating the overall success of 
the program. A portion of grant funds should be reserved to ensure that 
evaluations can be completed for all participants who received 
assistance through this program. For more information on how to measure 
performance, please see Rating Factor 5.
    (2) Coordination and set up of meal services;
    (3) Assistance with daily activities;
    (4) Coordination and set-up of transportation services;

[[Page 21520]]

    (5) Wellness programs including, health and nutrition programs, 
preventive health education, referral to rehabilitation services, 
services for the disabled and other community resources;
    (6) Personal emergency response;
    (7) Congregate services--includes supportive services that are 
provided in a congregate setting at a conventional public housing 
development;
    (8) Case management; and
    (9) Administrative costs. Administrative costs may include, but are 
not limited to, purchase of furniture, office equipment and supplies, 
quality assurance, local travel, and utilities. Nonprofit organizations 
only may use administrative funds to pay for rental of space. 
Administrative costs must not exceed 10 percent of the total grant 
amount requested from HUD. Administrative costs must adhere to OMB 
Circular A-87. Please use HUD-424-CBW to itemize your administrative 
costs.
    (G) Ineligible Activities.
    (1) Service Coordinator salary and fringe benefits;
    (2) Payment of wages and/or salaries to doctors, nurses or other 
staff in relation to medical services provided to residents;
    (3) Payment of wages and/or salaries to participants receiving 
supportive services and/or training programs;
    (4) Purchase of food;
    (5) Purchase of non-prescription or prescription medications;
    (6) Purchase or rental of land;
    (7) New construction, materials costs;
    (8) Rehab or physical improvements;
    (9) Purchase or rental of vehicles; and
    (10) Cost of application preparation.
    (H) Threshold Requirements. Applicants must respond to threshold 
requirements clearly and thoroughly by following the instructions 
below. If your application fails one threshold requirement (regardless 
of the type of threshold) it will be considered a failed application 
and will not be reviewed further.
    (1) Match. All applicants are required to have in place as defined 
in this NOFA a firmly committed 25% match in cash or in-kind donations. 
Applicants who do not demonstrate the minimum 25% match will fail this 
threshold requirement and will not receive further consideration for 
funding. If you are applying for more than one ROSS grant, you must use 
different sources of match donations for each grant application. Match 
donations must be firmly committed. ``Firmly committed'' means that the 
amount of match resources and their dedication to ROSS-funded 
activities must be explicit, in writing and signed by a person 
authorized to make the commitment. Letters of commitment, Memoranda of 
Understanding (MOU) or tribal resolution must be on organization 
letterhead, and signed by a person authorized to make the stated 
commitment whether it be in cash or in-kind services. The letters of 
commitment/MOUs/tribal resolution must indicate the annual level and/or 
amount of commitment, be dated within two months of the application 
deadline, and indicate how the commitment will relate to the proposed 
program. If volunteer time is being committed it should be calculated 
using the number of hours to be committed and multiplied by either the 
normal professional rate for the local area or the national minimum 
wage rate of $5.15/hour. The commitment should be in place at time of 
award and should be for the duration of the grant. If you, the 
applicant, propose to use your own, non-ROSS grant funds to meet the 
match requirement in whole or in part, you must also include a letter 
of support/tribal resolution indicating the type of match (cash or in-
kind) and how the match will be used. Applicant staff time is not an 
eligible cash or in-kind match. Applicants shall annotate the HUD-424-
CB to list the sources and amount of each match for the duration of the 
grant term. Grant awards shall be contingent upon letters of commitment 
being submitted with your application.
    (2) Past Performance. HUD's field offices will evaluate applicants 
for past performance to determine whether an applicant has the capacity 
to manage the grant for which they are applying. The DPONAP will review 
past performance for tribal/TDHE submissions. Using Rating Factor 1, 
the field office will evaluate applicants' past performance. Applicants 
should carefully review Rating Factor 1 to ensure their application 
addresses each of the criteria requested therein. If applicants fail to 
address what is requested in Rating Factor 1, their application will 
fail threshold and will not receive further consideration. If 
applicants pass threshold, they will go on to be scored for Rating 
Factor 1 during the technical review process.
    (3) All applicants except non-troubled PHAs and tribes/TDHEs are 
required to submit a signed Contract Administrator Partnership 
Agreement. The agreement must be for the thirty-six month duration of 
the grant term. Your grant award shall be contingent upon having a 
Partnership Agreement included in your application. The Contract 
Administrator must assure that the financial management system and 
procurement procedures that will be in place during the thirty-six 
month grant term will fully comply with either 24 CFR part 84 or 85. 
Troubled PHAs are not eligible to be Contract Administrators. Grant 
writers who assist applicants prepare their ROSS applications are also 
ineligible to be Contract Administrators. See the definition in Section 
III of Contract Administrator for more information.
    (4) Nonprofit applicants must include letters from Resident 
Organizations (RO), Resident Associations (RA) indicating that the ROs/
RAs you will be working with support your application. Letters from 
ROs/RAs must be signed by a person authorized to sign for the 
organization and should, whenever possible, be on RO/RA letterhead.
    (I) Program Requirements.
    (1) Eligible Participants. All program participants must be 
residents of conventional public or Indian Housing. Participants in the 
Public or Indian Housing Family Self-Sufficiency (FSS) programs who are 
residents of public housing (non Housing Choice Voucher Program) are 
also eligible to participate in activities funded under this category.
    (2) Resident Assessment. Applicants are required to assess 
residents' needs and interests so that program activities are designed 
to address their needs.
    (3) Partnering. Applicants should partner with local schools, 
libraries, businesses, banks, employment agencies, housing counseling 
agencies (preferably HUD-approved), state and local social service 
agencies, or other organizations which will help applicants deliver 
supportive services and fulfill residents' needs. These organizations 
can provide additional expertise, volunteers, office supplies, training 
materials, software, equipment, and other resources.
    (4) Performance Reports. The grantee shall submit semi-annual 
performance reports to the field office. These progress reports shall 
include financial reports (SF-269A) and a narrative describing 
milestones, work plan progress, and problems encountered and methods 
used to address these problems. HUD anticipates that some of the 
reporting of financial status and grant performance will be through 
Internet-based submissions. Grantees shall use quantifiable data to 
measure performance against goals and objectives outlined in its work 
plan. Performance reports are due to the field office on July 30 and 
January 31 of each year. If reports are not received by the due date, 
grant funds will not be advanced until reports are received.
    (5) Final Report. The grantees shall submit a final report which 
will include

[[Page 21521]]

a financial report (SF-269A) and a narrative evaluating overall 
performance against its work plan. Grantees shall use quantifiable data 
to measure performance against goals and objectives outlined in its 
work plan. The financial report shall contain a summary of all 
expenditures made from the beginning of the grant agreement to the end 
of the grant agreement and shall include any unexpended balances. The 
final narrative and financial report shall be due to the field office 
90 days after the termination of the grant agreement.
    (6) Final Audit. Grantees are required to obtain a complete final 
close-out audit of the grant's financial statements by a Certified 
Public Accountant (CPA), in accordance with generally accepted 
government audit standards. A written report of the audit must be 
forwarded to HUD within 60 days of issuance. Grant recipients must 
comply with the requirements of 24 CFR part 84 or 24 CFR part 85 as 
stated in OMB Circulars A-110, A-87, and A-122, as applicable.
    (J) Application Selection Process.
    (1) Four types of reviews will be conducted: A screening to 
determine if you are eligible to apply for this funding category; 
whether your application submission is complete, on time and meets 
threshold; a review by the field office to evaluate past performance; 
and a technical review to rate your application based on the five 
rating factors provided in this section. A minimum score of 75 is 
required for the application to be considered for funding.
    (2) The selection process is designed to achieve geographic 
diversity of grant awards throughout the country. HUD will first select 
the highest ranked application from each of the ten federal regions and 
DPONAP for funding. After this ``round,'' HUD will select the second 
highest ranked application in each of the ten federal regions and 
DPONAP for funding (the second round). HUD will continue this process 
with the third, fourth, and so on, highest ranked applications in each 
federal region and DPONAP until the last complete round is selected for 
funding. If available funds exist to fund some but not all eligible 
applications in the next round, HUD will make awards to those remaining 
applications in rank order regardless of region and DPONAP and will 
fully fund as many as possible with remaining funds. If remaining funds 
are too small to make an award, they may be transferred to another 
funding category. If transfer of funds does become necessary, HUD will 
give first priority to Homeownership Supportive Services, second 
priority to RSDM-Family and third priority to RSDM-Elderly.
    (K) Factors for Award Used to Evaluate and Rate RSDM-Elderly and 
Persons with Disabilities Applications. The factors for rating and 
ranking applicants and maximum points for each factor are provided 
below. The maximum number of points available for this program is 102. 
This includes two RC/EZ/EC bonus points, as described in the General 
Section of the SuperNOFA. The SuperNOFA contains a certificate that 
must be completed in order for the applicant to be considered for RC/
EZ/EC bonus points. A listing of federally designated RCs, EZs, ECs, 
EECs and Strategic Planning Communities is attached to the General 
Section of the SuperNOFA as Appendix A-2 and is also available from the 
SuperNOFA Information Center, and the HUD web site, www.hud.gov.

    Note: Applicants should carefully review each rating factor 
before writing a response. Applicants' narratives should be as 
descriptive as possible, ensuring that every requested item is 
addressed. Applicants should make sure to include all requested 
information, according to the instructions found in Section VIII of 
this NOFA. This will help ensure a fair and accurate review of your 
application. Applications must not be longer than 30 narrative 
pages. Supporting documentation and certificates will not be counted 
towards the 30 page limit. However, applicants should make every 
effort to submit only what is necessary in terms of supporting 
documentation.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (20 Points)

    This factor addresses whether the applicant has the organizational 
resources necessary to successfully implement the proposed activities 
within the grant period. In rating this factor HUD will consider the 
extent to which the proposal demonstrates that the applicant will have 
qualified and experienced staff dedicated to administering the program.
    (A) Proposed Program Staffing (7 Points).
    (1) Staff Experience (4 Points). The knowledge and experience of 
your proposed project coordinator, staff, subcontractors, and partners 
in planning and managing programs for which funding is being requested. 
Experience will be judged in terms of recent, relevant and successful 
experience of your staff to undertake eligible program activities. In 
rating this factor, HUD will consider experience within the last 5 
years to be recent; experience pertaining to the specific activities 
being proposed to be relevant; and experience producing specific 
accomplishments to be successful. The more recent the experience and 
the more experience your own staff members who work on the project have 
in successfully conducting and completing similar activities, the 
greater the number of points you will receive for this rating factor. 
The following information should be provided in order to provide HUD an 
understanding of your staff's experience and capacity:
    (a) The number of staff years (one staff year = 2080 hours) to be 
allocated to your program by each employee or expert as well as each of 
their roles in the program;
    (b) The staff's relevant educational background and/or work 
experience; and
    (c) Relevant and successful experience running programs whose 
activities are similar to the eligible program activities described in 
this grant category.
    (2) Staff Capacity (3 Points). You will be evaluated based on 
whether you, your subcontractors and partners have sufficient personnel 
or will be able to quickly access enough qualified experts or 
professionals, to deliver the proposed activities in a timely and 
effective fashion. Your ability to immediately begin the proposed work 
program will also be evaluated. Attach resumes or position descriptions 
(where staff is not yet hired) for all key personnel. (Resumes do not 
count toward the 30-page limit.)
    (B) Past Performance of Applicant/Project Coordinator (6 Points). 
Your narrative must describe how you (or your proposed Project 
Coordinator) successfully implemented grant programs designed to assist 
the elderly/persons with disabilities meet their daily living needs and 
enhance their access to needed services so that they can continue to 
reside comfortably and productively in their current living 
environment. You will be evaluated according to the following criteria:
    (1) Achievement of specific measurable outcomes and objectives in 
terms of benefits gained by participating residents (i.e. access to a 
greater number of social services; improved health conditions of 
targeted population; less emergency care; etc.);
    (2) Success in attracting and keeping residents involved in past 
grant program so that grant activities benefited a significant number 
of residents;
    (3) Timely expenditure of funds throughout the term of awarded 
grant. Timely means regular drawdowns throughout the life of the grant, 
i.e. quarterly drawdowns, with all funds expended by the end of the 
grant term;

[[Page 21522]]

    (4) Leveraging of funding or in-kind services beyond that which was 
originally proposed to be used for past projects;
    (5) Long-term partnerships formed with other state and local social 
service providers, nonprofits and other organizations serving these 
populations; etc.
    Your past experience may include, but is not limited to, running 
and managing programs aimed at assisting elderly/persons with 
disabilities who reside in low-income housing/areas such as HUD's 
Office of Housing's Congregate grant program. Your narrative must 
indicate the grants, grant amounts, grant terms and grant sources which 
you are counting towards past experience.
    (C) Program Administration and Fiscal Management. (7 Points).
    (1) Program Administration. (4 Points). Describe how you will 
manage the program; how HUD can be sure that there is program 
accountability; and describe staff's roles and responsibilities.
    (2) Fiscal Management. (3 Points). In rating this factor, your 
skills and experience in fiscal management will be evaluated. If you 
have had any audit or material weakness findings, you will be evaluated 
on how well you have addressed them. You must provide the following:
    (a) A complete description of your fiscal management structure, 
including fiscal controls you have in place including those of a 
Contract Administrator for all applicants except non-troubled PHAs;
    (b) List any audit findings (HUD Inspector General, management 
review, fiscal, etc.), material weaknesses and what you have done to 
address them; and
    (c) For applicants who are required to have a Contract 
Administrator, describe the skills and experience your Contract 
Administrator has in managing federal funds.

Rating Factor 2: Need/Extent of the Problem (20 Points)

    This factor addresses the extent to which there is a need for 
funding your proposed program and your indication of the importance of 
meeting the need in the target area. In responding to this factor, you 
will be evaluated on the extent to which you describe and document the 
level of need for your proposed activities and the urgency in meeting 
the need.
    You should use statistics and analyses contained in data source(s) 
that are sound and reliable. Data that describes socioeconomic 
conditions at the local level can be found by going to the following 
Web sites: www.bls.gov (Bureau of Labor Statistics) or www.census.gov 
(US Census). Other types of sources include Continuum of Care gaps 
analysis, academic, state, and local sources. To the extent possible, 
the data you use should be specific to the area where the proposed 
activities will be carried out. You should document needs as they apply 
to the area where activities will be targeted, rather than the entire 
locality or state.
    In responding to this factor, you should include:
    (1) Socioeconomic Profile (5 points). A needs assessment which 
provides the number of residents needing assistance with activities of 
daily living;
    (2) Local Training Program Information (5 points). Information on 
the type and number of social service programs currently available to 
residents either through the PHA, tribe/TDHE, or other local or state 
organizations. Your narrative should indicate the extent to which such 
programs are utilized by residents.
    You may also address needs in terms of fulfilling the requirements 
of court actions or other legal decisions or which expand upon the 
Analysis of Impediments to Fair Housing Choice (AI) to further fair 
housing. If you address needs that are in your community's Consolidated 
Plan, AI, or a court decision, or identify and substantiate needs in 
addition to those in the AI, you will receive a greater number of 
points than applicants who do not relate their proposed program to the 
approved Consolidated Plan or AI or court action. NOTE: Fines, 
penalties, damages, and other settlements resulting from violations (or 
alleged violations) of, or failure of the applicant to comply with 
federal, state, local or Indian tribal laws and regulations are 
unallowable means in which to satisfy this Rating Factor, except when 
incurred as a result of compliance with specific provisions of the 
federal award or written instructions by the awarding agency 
authorizing in advance such payments.
    (3) Resource Documentation (3 points). The names and/or titles of 
information resources you used to document the need/extent of the 
problem.
    (4) Demonstrated Link Between Proposed Activities and Local Need (7 
points). There must be a clear relationship between your proposed 
activities, community needs and the purpose of the program funding for 
you to receive points for this factor.

Rating Factor 3: Soundness of Approach (30 Points)

    This factor addresses both the quality and cost-effectiveness of 
your proposed work plan. Your work plan must indicate a clear 
relationship between your proposed activities, the targeted 
population's needs, and the purpose of the program funding. Your 
activities must address HUD's policy priorities which relate to this 
program.
    In rating this factor HUD will consider:
    (A) Quality of the Work Plan (18 points). This factor evaluates 
both your work plan and your budget and will be evaluated based on the 
following components:
    (1) Specific Services and/or Activities (6 points). Your narrative 
must describe the specific services and activities you plan to offer 
and who will be responsible for each. You must also provide a work plan 
which will enumerate the specific services and activities and outcomes 
you expect. Please see a sample work plan in Appendix B. HUD will 
consider how well your proposed activities will:
    (a) Involve community partners in the delivery of services; and
    (b) Offer comprehensive services versus a small range of services 
geared toward enhancing economic opportunities for residents.
    (2) Feasibility and Demonstrable Benefits (4 points). This factor 
examines whether your work plan is logical, feasible and likely to 
achieve its stated purpose during the term of the grant. HUD's desire 
is to fund projects that will quickly produce demonstrable results and 
advance the purposes of the ROSS program.
    (a) Timeliness. This subfactor evaluates whether your work plan 
demonstrates that your project is ready to implement shortly after 
grant award, but not to exceed three months following the execution of 
the grant agreement. Your work plan should indicate timeframes and 
deadlines for accomplishing major activities.
    (b) Description of the problem and solution. Your work plan will be 
evaluated based on how well your proposed activities address the needs 
described in Factor 2.
    (3) Budget Appropriateness/Efficient Use of Grant. (4 Points) The 
score in this factor will be based on the following:
    (a) Justification of expenses. You will be evaluated based on 
whether your expenses are reasonable and well-explained.
    (b) Budget Efficiency. You will be evaluated based on whether your 
application requests funds

[[Page 21523]]

commensurate with the level of effort necessary to accomplish your 
goals and anticipated results.
    (4) Involving Residents in the Design of the Work Plan (4 points). 
All applicants should make every effort to involve residents in the 
design of the work plan, so that activities and services offered by 
your organization address their needs.
    (B) Addressing HUD's Policy Priorities (12 points). HUD wants to 
improve the quality of life for those living in distressed communities. 
HUD's grant programs are a vehicle through which constructive changes 
can be achieved. Your narrative and work plan will be evaluated based 
on how well it meets the following HUD policy priorities:
    (1) Improving the Quality of Life in Our Nation's Communities (5 
points). In order to receive points in this category, your narrative 
and work plan must indicate the types of activities and services you 
will offer which will enhance the quality of life of the elderly/
persons with disabilities.
    (2) Providing Full and Equal Access to Grassroots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation (7 
points). HUD encourages applicants to partner with grassroots 
organizations, e.g., civic organizations, grassroots faith-based and 
other community-based organizations that are not usually effectively 
utilized. These grassroots organizations have a strong history of 
providing vital community services such as developing visiting 
programs, arranging holiday parties, connecting residents to 
transportation, and other supportive services. In order to receive 
points under this factor, your narrative and work plan must describe 
how you will work with these organizations and what types of services 
they will provide.

Rating Factor 4: Leveraging Resources (20 Points)

    This factor addresses your ability to secure community resources 
that can be combined with HUD's grant resources to achieve program 
purposes. You are required to create partnerships with organizations 
that can help you achieve your program's goals. PHAs are required by 
QHWRA (Sec. 12(d)(7) of the U.S. Housing Act, entitled ``Cooperation 
Agreements for Economic Self-Sufficiency Activities'') to make best 
efforts to enter into such agreements with relevant state or local 
agencies. In rating this factor, HUD will look at the extent to which 
you partner, coordinate and leverage your services with other 
organizations serving the same or similar populations.
    Additionally, you must have at least a 25 percent cash or in-kind 
match. The match is a threshold requirement. Applicants who do not 
demonstrate the minimum 25% match will fail the threshold requirement 
and will not receive further consideration for funding. If you are 
applying for more than one grant ROSS grant, you must use different 
sources of match donations for each grant application. Leveraging in 
excess of the 25 percent of the grant amount will receive a higher 
point value. In evaluating this factor HUD will consider the extent to 
which you have partnered with other entities to secure additional 
resources to increase the effectiveness of your proposed program 
activities. The budget, the work plan, and commitments for additional 
resources and services, other than the grant, must show that these 
resources are firmly committed, will support the proposed grant 
activities and will, in combined amount (including in-kind 
contributions of personnel, space and/or equipment, and monetary 
contributions) equal at least 25 percent of the grant amount proposed 
in this application. ``Firmly committed'' means that the amount of 
resources and their dedication to ROSS-funded activities must be 
explicit, in writing and signed by a person authorized to make the 
commitment. Letters of commitment, Memoranda of Understanding (MOU), or 
tribal resolution must be on organization letterhead and signed by a 
person authorized to make the stated commitment. The letters of 
commitment/MOUs/tribal resolution must indicate the annual level and/or 
amount of commitment, be dated within two months of the application 
deadline, and indicate how the commitment will relate to the proposed 
program. If you, the applicant, propose to use your own, non-ROSS grant 
funds to meet the match requirement in whole or in part, you must also 
include a letter of support indicating the type of match (cash or in-
kind) and how the match will be used. Applicant staff time is not an 
eligible cash or in-kind match. Applicants shall annotate their budget 
form (the HUD-424-CB) to list the sources and amount of each match. 
Grant awards shall be contingent upon letters of commitment being 
submitted with your application.
    (A) Volunteer time and services shall be computed by using the 
normal professional rate for the local area at the national minimum 
wage rate of $5.15 per hour (Note: Applicants may not use their staff 
time towards the match);
    (B) In order for HUD to determine the value of any donated 
material, equipment, staff time, building, or lease, your application 
must provide a letter from the organization making the donation stating 
the value of the contribution. The letter must be on letterhead, signed 
by an official authorized to make such commitments on behalf of the 
donating organization and must be dated within two months of the 
application deadline.
    (C) Other resources/services that can be committed include: in-kind 
services, contributions or administrative costs provided to the 
applicant; funds from federal sources (not including ROSS funds) as 
allowed by statute, including for example Community Development Block 
Grant (CDBG) and federal Revenue Sharing; funds from any state or local 
government sources; and funds from private contributions. You may also 
partner with other program funding recipients to coordinate the use of 
resources in your target area.
    (D) Points for this factor will be awarded based on the documented 
evidence of partnerships and firm commitments and the ratio of 
requested ROSS funds to the total proposed grant budget.
    Points will be assigned based on the following scale:

------------------------------------------------------------------------
                                                                 Points
                     Percentage of match                        awarded
------------------------------------------------------------------------
25...........................................................          5
26-50........................................................         10
51-75........................................................         15
76-99 or above...............................................         20
------------------------------------------------------------------------

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    An important element in this year's NOFA is the development and 
reporting of performance measures and outcomes. Under this rating 
factor, applicants must demonstrate how they propose to measure their 
success and outcomes as they relate to the Department's Strategic Plan.
    This factor emphasizes HUD's determination to ensure that 
applicants meet commitments made in their applications and grant 
agreements and that they assess their performance so that they realize 
performance goals. HUD requires ROSS applicants to develop an 
effective, quantifiable, outcome oriented work plan for measuring 
performance and determining that goals have been met.
    ``Outcomes'' are benefits accruing to the residents, families and/
or communities during or after participation in the ROSS program. 
Outcomes are not the actual development of self-sufficiency services or 
program activities. Applicants must clearly identify the outcomes to be 
achieved and measured. Examples of

[[Page 21524]]

outcomes are: increasing the homeownership rates among residents of a 
development or from a particular housing authority, increasing 
residents' financial stability (e.g. increasing assets of a household 
through savings), or increasing employment stability (e.g., whether 
persons assisted obtain or retain employment for one or two years after 
job training completion).
    In addition to outcomes, applicants must establish interim 
benchmarks or outputs for their proposed program that lead to the 
ultimate achievement of outcomes. ``Outputs'' are the direct products 
of a program's activities. Examples of outputs are: the number of 
eligible families that participate in supportive services, the number 
of new services provided, the number of residents receiving counseling, 
or the number of households using a technology center. Outputs should 
produce outcomes for your program.
    This rating factor requires that you, the applicant, identify 
program outcomes, outputs, benchmarks, and performance indicators that 
will allow you to measure your performance. Performance indicators 
should be objectively quantifiable and measure actual achievements 
against anticipated achievements. Your work plan should identify what 
you are going to measure, how you are going to measure it, and the 
steps you have in place to make adjustments to your work plan if 
performance targets are not met within established timeframes.
    In order to satisfy the requirements for Factor 5, you must submit 
a work plan and a Logic Model that demonstrates how you will measure 
your own program performance. Your plan must identify the outcomes you 
expect to achieve or goals you hope to meet over the term of your 
proposed grant and benchmarks, outputs, and timeframes for 
accomplishing these goals. Your work plan must show how you will 
measure actual accomplishments against anticipated achievements. You 
must indicate how your plan will measure the performance of individual 
consortium members and affiliates, including the standards, data 
sources, and measurement methods, and the steps you have in place or 
how you plan to make adjustments if you begin to fall short of 
established benchmarks and timeframes.
    Applicants should also use the Logic Model provided in the General 
Section of this SuperNOFA for reporting on how they will conduct 
performance measurement. You will be evaluated based on how 
comprehensively you propose to measure your program's outcomes.

V. Program Description: Homeownership Supportive Services

    (A) Program Description. The Homeownership Supportive Services 
(HSS) category funds homeownership training, counseling and supportive 
services for residents of Public and Indian Housing who are 
participating or have participated in self-sufficiency programs, such 
as ROSS, Family Self-Sufficiency (FSS) or other federal, state or local 
self-sufficiency programs. Resident participants in any HSS-funding 
activity cannot be public housing residents and section 8 voucher 
holders concurrently. HSS is designed to enhance other self-sufficiency 
efforts by providing public housing residents with the necessary 
preparation and supportive services they need in order to move from 
rental housing to homeownership. PHAs, tribes/TDHEs and nonprofits 
specializing in homeownership training and counseling are eligible to 
apply.
    HUD is looking for applications that implement comprehensive 
programs within the thirty-six month grant term which will result in 
increased rates of homeownership for residents of public housing. In 
this vein, applicants should create linkages with the following HUD 
homeownership programs: Housing Choice Voucher Homeownership Program, 
Turnkey III, HOPE I, and the Section 5(h) Homeownership Program. The 
Turnkey III and HOPE I grant programs are not funding new applications 
but grantees are still operating homeownership programs under 
previously awarded grants. The PHA Homeownership Program (Section 32) 
supercedes the Section 5(h) program and allows PHAs to sell public 
housing units to low-income families without special funding from HUD. 
In order to find out whether a PHA or other organization in your area 
is operating any of these programs, contact your local field office.
    Tribes/TDHEs should create linkages with programs such as the 
Mutual Help Homeownership Opportunity Program, the Section 184 Program, 
and other homeownership programs developed under the Indian Housing 
Block Grant Program such as mortgage assistance.
    HUD is also looking for proposals that involve partnerships with 
organizations that will enhance the services grantees will offer. 
Applicants are strongly encouraged to partner with HUD-approved housing 
counseling agencies, or other organizations that provide housing 
counseling services. For a list of HUD-approved housing counseling 
agencies, go to: http://www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm.
    Applicants' programs should build on the foundation created by 
previous ROSS grants, or other state and local self-sufficiency efforts 
in which their target population may have participated.
    (B) Available Funding. The amount of funding available for FY03 is 
$11,127,200.
    (C) Allocation. To the extent that there are a sufficient number of 
qualified applications, not less than 5 percent of funds available for 
ROSS shall be provided to national nonprofit organizations which 
specialize in designing and delivering homeownership programs for low-
income individuals and families.
    1. Maximum grant amount. For PHAs applying for the HSS funding 
category, the maximum grant award will be based on the number of 
occupied conventional family public housing units.
    (a) PHAs must use the number of occupied conventional family public 
housing units as of September 30, 2002 per their budget to determine 
the maximum grant amount they are eligible for in accordance with the 
categories listed below. PHAs should clearly indicate the number of 
units under management on the Fact Sheet.
    --For PHAs with 1 to 780 occupied conventional family public 
housing units, the maximum grant award is $250,000.
    --For PHAs with 781 to 2,500 occupied conventional family public 
housing units, the maximum grant award is $350,000.
    --For PHAs with 2,501 to 7,300 occupied conventional family public 
housing units, the maximum grant award is $500,000.
    --For PHAs with 7,301 or more occupied conventional family public 
housing units, the maximum grant award is $1,000,000.
    --Nonprofit entities that have resident support or RAs/ROs are 
limited to $100,000 for each RA/RO. A nonprofit may submit a single 
application for no more than three different RAs from the same PHA for 
a maximum grant award of $300,000. Nonprofits may submit more than one 
application provided they target residents of distinct PHAs.
    (b) Tribes/TDHEs should use the number of units counted as Formula 
Current Assisted Stock for Fiscal Year 2002 as defined in 24 CFR 
1000.316. Tribes/TDHEs are eligible for the same amounts as PHAs within 
each category in (a) above. Tribes that have not previously received 
funds from the Department under the 1937 Housing Act should count 
housing units under management that are owned and operated by the tribe 
and are identified in their housing inventory as of

[[Page 21525]]

September 30, 2002 for family units. Tribes should clearly indicate the 
number of units under management on the Fact Sheet.
    (D) Deobligation of Funds. HUD may deobligate amounts for the grant 
if proposed activities are not initiated or completed within the 
required time period after the effective date of the award. The grant 
agreement will set forth in detail circumstances under which funds may 
be deobligated and other sanctions imposed.
    (E) Eligible Applicants.
    This funding category provides grants to PHAs, tribes/TDHEs and 
qualified nonprofits so they may provide homeownership training and 
supportive services to residents of public housing.

    Note: Applications from PHAs and nonprofit organizations 
targeting the same public housing development/population will not 
all be funded. HUD suggests that in these cases, applicants work 
together to submit one application. Otherwise, the highest scoring 
application will be funded.

    (1) PHA applicants must have a Homeownership Voucher program as 
stated in 24 CFR 982.625 et seq. (65 FR 55163). Those PHAs that have 
not elected to provide assistance under the Homeownership Voucher 
option and receive funding under this category, will be required to 
implement the Homeownership Voucher program and make such option 
available to eligible families who participate in this ROSS activity.
    (2) In applying for HSS, PHA applicants will be required to offer a 
minimum of 10 housing choice vouchers per year for eligible residents 
described above.
    (3) Tribal/TDHE applicants must have a Low-income Homeownership 
Program outlined in its current Indian Housing Plan.
    (4) In applying for HSS, Tribes/TDHEs will be required to provide 
homeownership assistance to a minimum of 10 eligible families as 
described above.
    (F) Eligible Activities. Under this funding category, applicants 
will develop homeownership training programs and supportive services 
based on needs assessments of the residents they intend to serve. 
Eligible activities include, but are not limited to:
    (1) Hiring of a qualified project coordinator to run the grant 
program. A qualified project coordinator is someone with at least two 
years of experience working on homeownership and supportive services 
programs designed for typically underserved populations. The ROSS 
program will fund up to $62,500 in combined annual salary and fringe 
benefits for a full-time project coordinator. However, the project 
coordinator's salary and administrative costs may not exceed more than 
30% of the total grant amount. Other administrative costs, see 
paragraph 4 below, may not exceed 10% of the total grant amount 
requested from HUD. For audit purposes, applicants must have 
documentation on file demonstrating that the salary they pay the 
project coordinator is comparable to similar professions in their local 
area. The project coordinator should be responsible for:
    (a) Assessing participating residents' needs;
    (b) Designing and coordinating grant activities based on residents' 
needs;
    (c) Monitoring the progress of program participants and evaluating 
the overall success of the program. A portion of grant funds should be 
reserved to ensure that evaluations can be completed for all 
participants who received assistance through this program. For more 
information on how to measure performance, please see Rating Factor 5.
    (2) Training to include:
    a. Asset building;
    b. Credit counseling and credit scoring;
    c. Financial literacy and management;
    d. Selecting a real estate broker;
    e. Choosing a lender;
    f. Appraisals;
    g. Home inspections;
    h. Avoiding delinquency and predatory lending;
    i. Foreclosure prevention;
    j. Home maintenance and financial management for first-time 
homeowners;
    k. Real Estate Settlement Procedures Act (RESPA); and
    l. Fair Housing Counseling.
    (3) Individual Savings Accounts (ISAs). You may create programs 
that encourage residents to save and contribute to matched savings 
accounts such as Individual Development Accounts (IDAs). ISAs may be 
used for escrow accounts, downpayment assistance and closing costs 
only. HSS funds can be used as matching funds for ISAs but no more than 
20% of total grant funds may be used for this purpose. You are 
encouraged to leverage HSS funds by working with local financial 
organizations which can also contribute to residents' ISAs. FSS escrow 
accounts may not be used as a match for HSS-funded ISAs. FSS residents 
are not eligible to participate in the ISA provision.
    (4) Administrative costs. Administrative costs may include, but are 
not limited to, purchase of furniture, office equipment and supplies, 
quality assurance, local travel, and utilities. Nonprofit organizations 
only may use administrative funds to pay for rental of space. 
Administrative costs must not exceed 10 percent of the total grant 
amount requested from HUD. Administrative costs must adhere to OMB 
Circular A-87. Please use HUD-424-CBW to itemize your administrative 
costs.
    (G) Ineligible Activities.
    (1) Payment of wages and/or salaries to participants receiving 
supportive services and/or training programs;
    (2) Stipends;
    (3) Down payment assistance;
    (4) Revolving loan funds;
    (5) Purchase or rental of land;
    (6) New construction, materials costs;
    (7) Rehab or physical improvements;
    (8) Purchase or rental of vehicles; and
    (9) Cost of application preparation.
    (H) Threshold Requirements. Applicants must respond to threshold 
requirements clearly and thoroughly by following the instructions 
below. If your application fails one threshold requirement (regardless 
of the type of threshold) it will be considered a failed application 
and will not be reviewed further.
    (1) Match. All applicants are required to have in place a firmly 
committed 25% match in cash or in-kind donations as defined in this 
NOFA. Applicants who do not demonstrate the minimum 25% match will fail 
this threshold requirement and will not receive further consideration 
for funding. If you are applying for more than one ROSS grant, you must 
use different sources of match donations for each grant application. 
Match donations must be firmly committed. ``Firmly committed'' means 
that the amount of match resources and their dedication to ROSS-funded 
activities must be explicit, in writing and signed by a person 
authorized to make the commitment. Letters of commitment, Memoranda of 
Understanding (MOU), or tribal resolution must be on organization 
letterhead, and signed by a person authorized to make the stated 
commitment whether it be in cash or in-kind services. The letters of 
commitment/MOUs/tribal resolutions must indicate the annual level and/
or amount of commitment, be dated within two months of the application 
deadline, and indicate how the commitment will relate to the proposed 
program. If volunteer time is being committed it should be calculated 
using the number of hours to be committed and multiplied by either the 
normal professional rate for the local area or the national minimum 
wage rate of $5.15/hour. The commitment should be in place at time of 
award and should be for the duration

[[Page 21526]]

of the grant. If you, the applicant, propose to use your own, non-ROSS 
grant funds to meet the match requirement in whole or in part, you must 
also include a letter of support/tribal resolution indicating the type 
of match (cash or in-kind) and how the match will be used. Applicant 
staff time is not an eligible cash or in-kind match. Applicants shall 
annotate the HUD-424-CB to list the sources and amount of each match 
for the duration of the grant term. Grant awards shall be contingent 
upon letters of commitment being submitted with your application.
    (2) Past Performance. HUD's field offices will evaluate applicants 
for past performance to determine whether an applicant has the capacity 
to manage the grant for which they are applying. The DPONAP will review 
past performance for tribal and TDHE submissions. Using Rating Factor 
1, the field office will evaluate applicants' past performance. 
Applicants should carefully review Rating Factor 1 to ensure their 
application addresses each of the criteria requested therein. If 
applicants fail to address what is requested in Rating Factor 1, their 
application will fail threshold and will not receive further 
consideration. If applicants pass threshold, they will go on to be 
scored for Rating Factor 1 during the technical review process.
    (3) All applicants except nontroubled PHAs and tribe/TDHEs are 
required to submit a signed Contract Administrator Partnership 
Agreement. The agreement must be for the thirty-six month duration of 
the grant term. Your grant award shall be contingent upon having a 
Partnership Agreement included in your application. The Contract 
Administrator must assure that the financial management system and 
procurement procedures that will be in place during the thirty-six 
month grant term will fully comply with either 24 CFR part 84 or 85. 
Troubled PHAs are not eligible to be Contract Administrators. Grant 
writers who assist applicants prepare their ROSS applications are also 
ineligible to be Contract Administrators. See the definition in Section 
III of Contract Administrator for more information.
    (4) Nonprofit applicants must include letters from Resident 
Organizations (RO), Resident Associations (RA) indicating that the ROs/
RAs you will be working with support your application. Letters from 
ROs/RAs must be signed by a person authorized to sign for the 
organization and should, whenever be possible, be on RO/RA letterhead.
    (I) Program Requirements.
    (1) Eligible Participants. All program participants must be 
residents of conventional public housing or NAHASDA-assisted housing. 
This funding category is targeted to the population of public housing 
residents that were recipients/beneficiaries of previously awarded ROSS 
grants, other state or local self-sufficiency programs, and/or 
participate or participated in the public housing Family Self 
Sufficiency Program. Resident participants in any HSS-funding activity 
cannot be public housing residents and section 8 voucher holders 
concurrently.
    (b) ROSS families or FSS residents to be targeted for proposed 
grant activities must meet the following eligibility requirements:
    (i) Achieve a level of income within the acceptable range for the 
local minimum income for home purchases in the local area; and
    (ii) Currently reside in public housing.
    (2) Resident Assessment. Applicants are required to assess 
residents' needs and interests so that program activities are designed 
to address their needs.
    (3) Partnering. Applicants should partner with local schools, 
libraries, businesses, banks, employment agencies, housing counseling 
agencies (preferably HUD-approved), state and local social service 
agencies, or other organizations which will help applicants deliver 
supportive services and fulfill residents' needs. These organizations 
can provide additional expertise, volunteers, office supplies, training 
materials, software, equipment, and other resources.
    (4) Performance Reports. The grantee shall submit semi-annual 
performance reports to the field office. These progress reports shall 
include financial reports (SF-269A) and a narrative describing 
milestones, work plan progress, and problems encountered and methods 
used to address these problems. HUD anticipates that some of the 
reporting of financial status and grant performance will be through 
Internet-based submissions. Grantees shall use quantifiable data to 
measure performance against goals and objectives outlined in its work 
plan. Performance reports are due to the field office on July 30 and 
January 31 of each year. If reports are not received by the due date, 
grant funds will not be advanced until reports are received.
    (5) Final Report. The grantees shall submit a final report which 
will include a financial report (SF-269A) and a narrative evaluating 
overall performance against its work plan. Grantees shall use 
quantifiable data to measure performance against goals and objectives 
outlined in its work plan. The financial report shall contain a summary 
of all expenditures made from the beginning of the grant agreement to 
the end of the grant agreement and shall include any unexpended 
balances. The final narrative and financial report shall be due to the 
field office 90 days after the termination of the grant agreement.
    (6) Final Audit. Grantees are required to obtain a complete final 
close-out audit of the grant's financial statements by a Certified 
Public Accountant (CPA), in accordance with generally accepted 
government audit standards. A written report of the audit must be 
forwarded to HUD within 60 days of issuance. Grant recipients must 
comply with the requirements of 24 CFR part 84 or 24 CFR part 85 as 
stated in OMB Circulars A-110, A-87, and A-122, as applicable.
    (J) Application Selection Process.
    (1) Four types of reviews will be conducted: a screening to 
determine if you are eligible to apply for this funding category; 
whether your application submission is complete, on time and meets 
threshold; a review by the field office to evaluate past performance; 
and a technical review to rate your application based on the five 
rating factors provided in this section. A minimum score of 75 is 
required for the application to be considered for funding.
    (2) The selection process is designed to achieve geographic 
diversity of grant awards throughout the country. HUD will first select 
the highest ranked application from each of the ten federal regions for 
funding. After this ``round,'' HUD will select the second highest 
ranked application in each of the ten federal regions for funding (the 
second round). HUD will continue this process with the third, fourth, 
and so on, highest ranked applications in each federal region until the 
last complete round is selected for funding. If available funds exist 
to fund some but not all eligible applications in the next round, HUD 
will make awards to those remaining applications in rank order 
regardless of region and will fully fund as many as possible with 
remaining funds. If remaining funds are too small to make an award, 
they may be transferred to another funding category. If transfer of 
funds does become necessary, HUD will give first priority to 
Homeownership Supportive Services, second priority to RSDM-Family and 
third priority to RSDM-Elderly.
    (K) Factors for Award Used to Evaluate and Rate Homeownership 
Supportive Services Applications. The factors for rating and ranking 
applicants and maximum points for each factor are provided below. The 
maximum number of points available for this program is 102. This 
includes two RC/EZ/EC bonus

[[Page 21527]]

points, as described in the General Section of the SuperNOFA. The 
SuperNOFA contains a certificate that must be completed in order for 
the applicant to be considered for RC/EZ/EC bonus points. A listing of 
federally designated RCs, EZs, ECs, EECs and Strategic Planning 
Communities is attached to the General Section of the SuperNOFA as 
Appendix A-2 and is also available from the SuperNOFA Information 
Center, and the HUD Web site, www.hud.gov.

    Note: Applicants should carefully review each rating factor 
before writing a response. Applicants' narratives should be as 
descriptive as possible, ensuring that every requested item is 
addressed. Applicants should make sure to include all requested 
information, according to the instructions found in Section VIII of 
this NOFA. This will help ensure a fair and accurate review of your 
application. Applications must not be longer than 30 narrative 
pages. Supporting documentation and certificates will not be counted 
towards the 30 page limit. However, applicants should make every 
effort to submit only what is necessary in terms of supporting 
documentation.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (20 Points)

    This factor addresses whether the applicant has the organizational 
resources necessary to successfully implement the proposed activities 
within the grant period. In rating this factor HUD will consider the 
extent to which the proposal demonstrates that the applicant will have 
qualified and experienced staff dedicated to administering the program.
    (A) Proposed Program Staffing (7 Points).
    (1) Staff Experience (4 Points). The knowledge and experience of 
your proposed project coordinator, staff, subcontractors, and partners 
in planning and managing programs for which funding is being requested. 
Experience will be judged in terms of recent, relevant and successful 
experience of your staff to undertake eligible program activities. In 
rating this factor, HUD will consider experience within the last 5 
years to be recent; experience pertaining to the specific activities 
being proposed to be relevant; and experience producing specific 
accomplishments to be successful. The more recent the experience and 
the more experience your own staff members who work on the project have 
in successfully conducting and completing similar activities, the 
greater the number of points you will receive for this rating factor. 
The following information should be provided in order to provide HUD an 
understanding of your staff's experience and capacity:
    (a) The number of staff years (one staff year = 2080 hours) to be 
allocated to your program by each employee or expert as well as each of 
their roles in the program;
    (b) The staff's relevant educational background and/or work 
experience; and
    (c) Relevant and successful experience running programs whose 
activities are similar to the eligible program activities described in 
this grant category.
    (2) Staff Capacity (3 Points). You will be evaluated based on 
whether you, your subcontractors and partners have sufficient personnel 
or will be able to quickly access enough qualified experts or 
professionals, to deliver the proposed activities in a timely and 
effective fashion. Your ability to immediately begin the proposed work 
program will also be evaluated. Attach resumes or position descriptions 
(where staff is not yet hired) for all key personnel. (Resumes do not 
count toward the 30-page limit.)
    (B) Past Performance of Applicant/Project Coordinator (6 Points). 
Your narrative must describe how you (or your proposed Project 
Coordinator) successfully implemented grant programs designed to 
promote resident self-sufficiency, moving from welfare to work or 
homeownership. You will be evaluated according to the following 
criteria:
    (1) Achievement of specific measurable outcomes and objectives in 
terms of benefits gained by participating residents (i.e. higher 
incomes, higher rates of employment, increased savings, moving out of 
subsidized housing to market-rate housing, homeownership etc.);
    (2) Success in attracting and keeping residents involved in past 
grant programs so that grant activities benefited a significant numbers 
of residents;
    (3) Timely expenditure of funds throughout the term of the grant. 
Timely means regular drawdowns throughout the life of the grant, i.e. 
quarterly drawdowns, with all funds expended by the end of the grant 
term;
    (4) Leveraging of funding or in-kind services beyond that which was 
originally proposed to be used for past projects;
    (5) Long-term partnerships formed with local housing groups, 
employers, community organizations, social service agencies, etc.
    Your past experience may include, but is not limited to, programs 
aimed at assisting residents of low-income housing achieve economic 
self-sufficiency; i.e. Tenant Opportunities Program and Youthbuild. 
Your narrative must indicate the grants, grant amounts, grant terms and 
grant sources which you are counting towards past experience.
    (C) Program Administration and Fiscal Management. (7 Points)
    (1) Program Administration. (4 Points). Describe how you will 
manage the program; how HUD can be sure that there is program 
accountability; and describe staff's roles and responsibilities.
    (2) Fiscal Management. (3 Points). In rating this factor, your 
skills and experience in fiscal management will be evaluated. If you 
have had any audit or material weakness findings, you will be evaluated 
on how well you have addressed them. You must provide the following:
    (i) A complete description of your fiscal management structure, 
including fiscal controls you have in place including those of a 
Contract Administrator for all applicants except non-troubled PHAs;
    (ii) List any audit findings (HUD Inspector General, management 
review, fiscal, etc.), material weaknesses and what you have done to 
address them; and
    (iii) For applicants who are required to have a Contract 
Administrator, describe the skills and experience your Contract 
Administrator has in managing federal funds.

Rating Factor 2: Need/Extent of the Problem (20 Points)

    This factor addresses the extent to which there is a need for 
funding your proposed program and your indication of the importance of 
meeting the need in the target area. In responding to this factor, you 
will be evaluated on the extent to which you describe and document the 
level of need for your proposed activities.
    You should use statistics and analyses contained in data source(s) 
that are sound and reliable. Data that describes socioeconomic 
conditions at the local level can be found by going to the following 
Web sites: www.bls.gov (Bureau of Labor Statistics) or www.census.gov 
(US Census). Other types of sources include academic, state, and local 
sources. To the extent possible, the data you use should be specific to 
the area where the proposed activities will be carried out. You should 
document needs as they apply to the area where activities will be 
targeted, rather than the entire locality or state.
    In responding to this factor, you should include:

[[Page 21528]]

    (1) Socioeconomic Profile (5 points). A thorough socioeconomic 
profile of the eligible residents to be served by your program, 
including education levels, income levels, the number of single-parent 
families, economic statistics for the local area, crime levels, etc.
    (2) Local Training Program Information (5 points). Information on 
training programs currently available and easily accessible to 
residents either through the PHA or other state or local organizations.
    You may also address needs in terms of fulfilling the requirements 
of court actions or other legal decisions or which expand upon the 
Analysis of Impediments to Fair Housing Choice (AI) to further fair 
housing. If you address needs that are in your community's Consolidated 
Plan, AI, or a court decision, or identify and substantiate needs in 
addition to those in the AI, you will receive a greater number of 
points than applicants who do not relate their proposed program to the 
approved Consolidated Plan or AI or court action. NOTE: Fines, 
penalties, damages, and other settlements resulting from violations (or 
alleged violations) of, or failure of the applicant to comply with 
federal, state, local or Indian tribal laws and regulations are 
unallowable means in which to satisfy this Rating Factor, except when 
incurred as a result of compliance with specific provisions of the 
federal award or written instructions by the awarding agency 
authorizing in advance such payments.
    (3) Resource Documentation (3 points). The names and/or titles of 
information resources you used to document the need/extent of the 
problem.
    (4) Demonstrated Link Between Proposed Activities and Local Need (7 
points). There must be a clear relationship between your proposed 
activities, community needs and the purpose of the program funding for 
you to receive points for this factor.

Rating Factor 3: Soundness of Approach (30 Points)

    This factor addresses both the quality and cost-effectiveness of 
your proposed work plan. Your work plan must indicate a clear 
relationship between your proposed activities, the targeted 
population's needs, and the purpose of the program funding. Your 
activities must address HUD's policy priorities which relate to this 
program.
    In rating this factor HUD will consider:
    (A) Quality of the Work Plan (18 points). This factor evaluates 
both your work plan and your budget and will be evaluated based on the 
following components:
    (1) Specific Services and/or Activities (6 points). Your narrative 
must describe the specific services and activities you plan to offer 
and who will be responsible for each. You must also provide a work plan 
which will enumerate the specific services and activities and outcomes 
you expect. Please see a sample work plan in Appendix B. HUD will 
consider how well your proposed activities will:
    (a) Involve community partners in the delivery of services; and
    (b) Offer comprehensive services versus a small range of services 
geared toward enhancing homeownership opportunities for residents.
    (2) Feasibility and Demonstrable Benefits (4 points). This factor 
examines whether your work plan is logical, feasible and likely to 
achieve its stated purpose during the term of the grant. HUD's desire 
is to fund projects that will quickly produce demonstrable results and 
advance the purposes of the ROSS program.
    (a) Timeliness. This subfactor evaluates whether your work plan 
demonstrates that your project is ready to implement shortly after 
grant award, but not to exceed three months following the execution of 
the grant agreement. Your work plan should indicate timeframes and 
deadlines for accomplishing major activities.
    (b) Description of the problem and solution. Your work plan will be 
evaluated based on how well your proposed activities address the needs 
described in Factor 2.
    (3) Budget Appropriateness/Efficient Use of Grant. (4 Points). The 
score in this factor will be based on the following:
    (a) Justification of expenses. You will be evaluated based on 
whether your expenses are reasonable and well-explained.
    (b) Budget efficiency. You will be evaluated based on whether your 
application requests funds commensurate with the level of effort 
necessary to accomplish your goals and anticipated results.
    (4) Involving Residents in the Design of the Work Plan (4 points). 
All applicants should make every effort to involve residents in the 
design of the work plan, so that activities and services offered by 
your organization address their needs.
    (B) Addressing HUD's Policy Priorities (12 points). HUD wants to 
improve the quality of life for those living in distressed communities. 
HUD's grant programs are a vehicle through which constructive changes 
can be achieved. Your narrative and work plan will be evaluated based 
on how well it meets the following HUD policy priorities:
    (1) Providing Increased Homeownership and Rental Opportunities for 
Low- and Moderate-Income Persons, Persons with Disabilities, the 
Elderly, Minorities, and Families with Limited English Proficiency (5 
points). In order to receive points in this category, your narrative 
and work plan must indicate the types of activities and training 
programs you will offer which can help residents successfully 
transition from subsidized housing to market-rate rental housing or 
homeownership.
    (2) Providing Full and Equal Access to Grassroots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation (7 
points). HUD encourages applicants to partner with grassroots 
organizations, e.g., civic organizations, grassroots faith-based and 
other community-based organizations that are not usually effectively 
utilized. These grassroots organizations have a strong history of 
providing vital community services such as developing first-time 
homeownership programs, creating economic development programs, 
providing job training and other supportive services. In order to 
receive points under this factor, your narrative and work plan must 
describe how you will work with these organizations and what types of 
services they will provide.

Rating Factor 4: Leveraging Resources (20 Points)

    This factor addresses your ability to secure community resources 
that can be combined with HUD's grant resources to achieve program 
purposes. You are required to create partnerships with organizations 
that can help you achieve your program's goals. PHAs are required by 
QHWRA (Sec. 12(d)(7) of the U.S. Housing Act, entitled ``Cooperation 
Agreements for Economic Self-Sufficiency Activities'') to make best 
efforts to enter into such agreements with relevant state or local 
agencies. In rating this factor, HUD will look at the extent to which 
you partner, coordinate and leverage your services with other 
organizations serving the same or similar populations.
    Additionally, you must have at least a 25 percent cash or in-kind 
match. The match is a threshold requirement. Applicants who do not 
demonstrate the minimum 25% match will fail the threshold requirement 
and will not receive further consideration for funding. If you are 
applying for more than one grant ROSS grant, you must use different 
sources of match donations

[[Page 21529]]

for each grant application. Leveraging in excess of the 25 percent of 
the grant amount will receive a higher point value. In evaluating this 
factor HUD will consider the extent to which you have partnered with 
other entities to secure additional resources to increase the 
effectiveness of your proposed program activities. The budget, the work 
plan, and commitments for additional resources and services, other than 
the grant, must show that these resources are firmly committed, will 
support the proposed grant activities and will, in combined amount 
(including in-kind contributions of personnel, space and/or equipment, 
and monetary contributions) equal at least 25 percent of the grant 
amount proposed in this application. ``Firmly committed'' means that 
the amount of resources and their dedication to ROSS-funded activities 
must be explicit, in writing and signed by a person authorized to make 
the commitment. Letters of commitment, or Memoranda of Understanding 
(MOU), or tribal resolutions must be on organization letterhead and 
signed by a person authorized to make the stated commitment. The 
letters of commitment/MOUs/tribal resolution must indicate the annual 
level and/or amount of commitment, be dated within two months of the 
application deadline, and indicate how the commitment will relate to 
the proposed program. If you, the applicant, propose to use your own, 
non-ROSS grant funds to meet the match requirement in whole or in part, 
you must also include a letter of support indicating the type of match 
(cash or in-kind) and how the match will be used. Applicant staff time 
is not an eligible cash or in-kind match. Applicants shall annotate 
their budget forms (the HUD-424CB) to list the sources and amount of 
each match. Grant awards shall be contingent upon letters of commitment 
being submitted with your application.
    (A) Volunteer time and services shall be computed by using the 
normal professional rate for the local area or the national minimum 
wage rate of $5.15 per hour (Note: Applicants may not use their staff 
time towards the match);
    (B) In order for HUD to determine the value of any donated 
material, equipment, staff time, building, or lease, your application 
must provide a letter from the organization making the donation stating 
the value of the contribution. The letter must be on letterhead, signed 
by an official authorized to make such commitments on behalf of the 
donating organization and must be dated within two months of the 
application deadline.
    (C) Other resources/services that can be committed include: in-kind 
services, contributions or administrative costs provided to the 
applicant; funds from federal sources (not including ROSS funds) as 
allowed by statute, including for example Community Development Block 
Grant (CDBG) and federal Revenue Sharing; funds from any state or local 
government sources; and funds from private contributions. You may also 
partner with other program funding recipients to coordinate the use of 
resources in your target area.
    (D) Points for this factor will be awarded based on the documented 
evidence of partnerships and firm commitments and the ratio of 
requested ROSS funds to the total proposed grant budget.
    Points will be assigned based on the following scale:

------------------------------------------------------------------------
                                                                 Points
                     Percentage of match                        awarded
------------------------------------------------------------------------
25...........................................................          5
26-50........................................................         10
51-75........................................................         15
76-99 or above...............................................         20
------------------------------------------------------------------------

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    An important element in this year's NOFA is the development and 
reporting of performance measures and outcomes. Under this rating 
factor, applicants must demonstrate how they propose to measure their 
success and outcomes as they relate to the Department's Strategic Plan.
    This factor emphasizes HUD's determination to ensure that 
applicants meet commitments made in their applications and grant 
agreements and that they assess their performance so that they realize 
performance goals. HUD requires ROSS applicants to develop an 
effective, quantifiable, outcome oriented work plan for measuring 
performance and determining that goals have been met.
    ``Outcomes'' are benefits accruing to the residents, families and/
or communities during or after participation in the ROSS program. 
Outcomes are not the actual development of self-sufficiency services or 
program activities. Applicants must clearly identify the outcomes to be 
achieved and measured. Examples of outcomes are: increasing the 
homeownership rates among residents of a development or from a 
particular housing authority, increasing residents' financial stability 
(e.g. increasing assets of a household through savings), or increasing 
employment stability (e.g., whether persons assisted obtain or retain 
employment for one or two years after job training completion).
    In addition to outcomes, applicants must establish interim 
benchmarks or outputs for their proposed program that lead to the 
ultimate achievement of outcomes. ``Outputs'' are the direct products 
of a program's activities. Examples of outputs are: the number of 
eligible families that participate in supportive services, the number 
of new services provided, the number of residents receiving counseling, 
or the number of households using a technology center. Outputs should 
produce outcomes for your program.
    This rating factor requires that you, the applicant, identify 
program outcomes, outputs, benchmarks, and performance indicators that 
will allow you to measure your performance. Performance indicators 
should be objectively quantifiable and measure actual achievements 
against anticipated achievements. Your work plan should identify what 
you are going to measure, how you are going to measure it, and the 
steps you have in place to make adjustments to your work plan if 
performance targets are not met within established timeframes.
    In order to satisfy the requirements for Factor 5, you must submit 
a work plan and a Logic Model that demonstrates how you will measure 
your own program performance. Your plan must identify the outcomes you 
expect to achieve or goals you hope to meet over the term of your 
proposed grant and benchmarks, outputs, and timeframes for 
accomplishing these goals. Your work plan must show how you will 
measure actual accomplishments against anticipated achievements. You 
must indicate how your plan will measure the performance of individual 
consortium members and affiliates, including the standards, data 
sources, and measurement methods, and the steps you have in place or 
how you plan to make adjustments if you begin to fall short of 
established benchmarks and timeframes. Applicants should also use the 
Logic Model provided in the General Section of this SuperNOFA for 
reporting on how they will conduct performance measurement. You will be 
evaluated based on how comprehensively you propose to measure your 
program's outcomes.

VI. Program Description: Neighborhood Networks

    (A) Program Description.
    This funding category provides grants to PHAs and qualified 
nonprofit organizations to (1) update, maintain and expand existing 
Neighborhood Networks/community technology centers; or (2) establish 
new Neighborhood Networks (NN) computer

[[Page 21530]]

technology centers. NN centers provide computer and Internet access to 
public housing residents and offer a full range of supportive services. 
Applicants should submit proposals that will: Provide job training, 
reduce welfare dependency; promote economic self-sufficiency; increase 
the use of computer technology; expand educational opportunities for 
residents; develop access to health and nutrition information; and meet 
other needs of residents. All applicants must complete a Business Plan 
(see sample provided in Appendix B) covering the thirty-six month grant 
term. Applicants' business plan and narrative must indicate how the 
centers will become self-sustaining after the grant term expires.
    An existing computer center is: (1) A computer lab, or community 
technology center already owned and operated by a PHA or nonprofit 
which serves residents of public housing and which has not received 
prior Neighborhood Networks funding and therefore is not officially 
designated a HUD Public & Indian Housing (PIH) Neighborhood Networks 
center; or (2) a computer lab officially designated a HUD PIH 
Neighborhood Networks center by virtue of prior funding received under 
this grant program.
    A new computer center is one that: (1) Is not operational; (2) in 
development; and/or (3) needs funding under this grant program to 
become fully operational and serve residents of public housing.
    HUD is looking for applications that implement comprehensive 
programs within the grant term which will result in improved economic 
self-sufficiency for public housing residents. HUD is looking for 
proposals that involve partnerships with organizations that will help 
supplement and enhance the services grantees' offered to residents.
    Proposed grant activities should build on the foundation created by 
previous ROSS grants or other federal, state and local self-sufficiency 
efforts.
    (B) Available Funding. The amount of funding available for FY03 is 
$14,902,500.
    (C) Allocation. Fifty percent of available funding for NN will 
provide grants for updating, maintaining and expanding existing 
computer technology centers. The other 50% will provide grants to 
establish and operate new Neighborhood Networks centers. Five percent 
of available funding shall be provided to national nonprofit 
organizations provided there is a sufficient number of qualified 
applications.
    (1) Maximum Funding Amount. To update, maintain and expand existing 
computer technology centers, PHAs must use the number of occupied 
conventional family public housing units they have as of September 30, 
2002 per their budget to determine the maximum grant amount they are 
eligible for in accordance with the categories listed below. PHAs 
should clearly indicate the number of units under management on the 
Fact Sheet.
    --For PHAs with 1 to 780 occupied conventional family public 
housing units, the maximum grant award is $50,000.
    --For PHAs with 781 to 7,300 occupied conventional family public 
housing units, the maximum grant award is $100,000.
    --For PHAs with 7,301 or more occupied conventional family public 
housing units, the maximum grant award is $200,000.
    -- Nonprofit entities that have resident support or RAs/ROs are 
limited to $100,000 for each RA/RO. A nonprofit may submit a single 
application for no more than three different RAs from the same PHA for 
a maximum grant award of $300,000. Nonprofits may submit more than one 
application provided they target residents of distinct PHAs.
    (2) For new NN centers, PHAs must use the number of occupied 
conventional family public housing units they have as of September 30, 
2002 per their budget to determine the maximum grant amount they are 
eligible for in accordance with the categories listed below for 
families:
    --For PHAs with 1 to 780 occupied conventional family public 
housing units, the maximum grant award is $150,000.
    --For PHAs with 781 to 7,300 occupied conventional family public 
housing units, the maximum grant award is $250,000.
    --For PHAs with 7,301 or more occupied conventional family public 
housing units, the maximum grant award is $450,000.
    --Nonprofit entities that have resident support or RAs/ROs are 
limited to $100,000 for each RA/RO. A nonprofit may submit a single 
application for no more than three different RAs from the same PHA for 
a maximum grant award of $300,000. Nonprofits may submit more than one 
application provided they target residents of distinct PHAs.
    (D) Deobligation of Funds. HUD may deobligate amounts for the grant 
if proposed activities are not initiated or completed within the 
required time period after the effective date of the award. The grant 
agreement will set forth in detail circumstances under which funds may 
be deobligated and other sanctions imposed.
    (E) Eligible Applicants. Public Housing Authorities and nonprofit 
organizations that have a demonstrated expertise in developing and 
managing community technology centers are eligible to apply for this 
funding category. Tribes/TDHEs are not eligible to apply for this 
funding category.

    Note: Applications from PHAs and nonprofit organizations 
targeting the same public housing development/population will not 
all be funded. HUD suggests that in these cases, applicants work 
together to submit one application. Otherwise, the highest scoring 
application will be funded.

    (F) Eligible Activities.
    Programs offered by Neighborhood Networks centers shall be designed 
to meet residents' needs; be geared towards helping residents 
transition from welfare to work; assist school-age children and youth 
with homework; provide guidance and preparatory programming to high 
school students (or other interested residents) for post-secondary 
education (college or trade schools); offer life-skills and job 
training for youth, adults and seniors; provide health care 
information; and other services as deemed necessary by results obtained 
from resident surveys.
    Neighborhood Networks centers should be located within a public 
housing development, on PHA land or within reasonable walking distance 
to the PHA development(s) being served by the center.
    Neighborhood Networks will use computers, software and Internet 
connectivity and should provide the following array of supportive 
services:
    (1) Hiring of a qualified Project Coordinator to run the grant 
program. A qualified Project Coordinator should have two years of 
experience running a community technology center. The Project 
Coordinator should be hired for the entire term of your grant. The ROSS 
program will fund up to $62,500 in combined annual salary and fringe 
benefits for a full-time project coordinator. However, the project 
coordinator's salary and administrative costs may not exceed more than 
30% of the total grant amount. Other administrative costs, see 
paragraph 17 below, may not exceed 10% of the total grant amount 
requested from HUD. For audit purposes, applicants must have 
documentation on file demonstrating that the salary they pay the 
project coordinator is comparable to similar professions in their local 
area. The project coordinator should be responsible for ensuring that 
the center's programs achieve your proposal's goals and objectives. In

[[Page 21531]]

addition, the project coordinator should be responsible for the 
following activities:
    (a) Marketing the program to residents;
    (b) Assessing participating residents' needs, interests, skills and 
job-readiness;
    (c) Assessing participating residents' needs for supportive 
services, e.g. childcare, transportation.
    (d) Designing and coordinating grant activities based on residents' 
needs; and
    (e) Monitoring the progress of program participants and evaluating 
the overall success of the program. A portion of grant funds should be 
reserved to ensure that evaluations can be completed for all 
participants who received training through this program. For more 
information on how to measure performance, please see Rating Factor 5.
    (2) Life skills training: How to apply for a job; credit 
worthiness; opening a bank account; balancing a checkbook; creating a 
weekly spending budget; contingency planning for child care and 
transportation;
    (3) Real Life Issues: Tax forms; voter registration; lease samples; 
fair housing; car insurance; health insurance; long-term care 
insurance;
    (4) Literacy training and GED preparation;
    (5) Computer training, from basic to advanced;
    (6) College preparatory courses and information;
    (7) Goal setting: Working with residents to define their 
professional, educational, economic goals;
    (8) Mentoring;
    (9) Job Training: Oral and written communication skills; work 
ethic; interpersonal and teamwork skills; resume writing; interviewing 
techniques, creating job training and placement programs with local 
employers and placement agencies; and post-employment follow-up to 
assist residents who are new to the workplace.
    (10) Supportive Services such as transportation, healthcare 
information and services including referrals to mental health 
providers, alcohol and other drug abuse treatment programs, childcare, 
parenting courses, and other services needed by residents.
    (11) Physical improvements. Physical improvements must directly 
relate to providing space for Neighborhood Networks Center activities. 
Renovation, conversion, wiring, and repair costs may be essential parts 
of physical improvements. In addition, architectural, engineering, and 
related professional services required to prepare architectural plans 
or drawings, write-ups, specifications or inspections may also be part 
of the cost components to implement physical improvements. For new 
centers, expenses for physical improvements may not exceed 20 percent 
of the total grant amount. For existing centers, expenses for physical 
improvements may not exceed 10 percent of the total grant amount.
    Modifications to create a space that is accessible to persons with 
disabilities is an eligible use of funds. Refer to Office of Management 
and Budget (OMB) Circular A-87, Cost Principles for state, local and 
Indian tribal Governments. All renovations must meet appropriate 
accessibility requirements, including Section 504 requirements at 24 
CFR part 8, Architectural Barriers Act at 24 CFR part 40, the Americans 
with Disabilities Act and the Fair Housing Act. Compliance with The 
Uniform Federal Accessibility Standards shall be deemed to comply with 
the requirements of 24 CFR 8.21, 8.22, 8.232, and 8.25 with respect to 
buildings.
    (a) The renovation, conversion, or joining of vacant dwelling units 
in a PHA development to create appropriate space for the equipment 
needs and activities of an NN center (computers, printers, and office 
space) are eligible activities for physical improvement.
    (b) The renovation, conversion of existing common areas in a PHA 
development to accommodate an NN center is eligible.
    (c) If renovation, conversion, or repair is done off-site, the PHA 
must provide documentation that it has control of the proposed property 
for not less than 3 years and preferably for 4 years or more. Control 
can be demonstrated through a lease agreement, ownership documentation, 
or other appropriate documentation.
    (12) Maintenance and insurance costs. Include installing, training, 
and maintaining the hardware and software as well as insurance coverage 
for the space and equipment. Costs of computer hardware and software 
necessary to accommodate the needs of persons with disabilities are an 
eligible cost for this funding category.
    (13) Purchase of computers, printers, software and other peripheral 
equipment;
    (14) Security and related costs. Includes space and minor 
refitting, locks, and other equipment for safeguarding the center.
    (15) Resident development and training courses. These courses may 
be on disk, CD-ROM through the Web, and/or presented live. Programs 
should be designed to address job training, life-skills, educational 
needs of residents (youth and adults) and other interests/needs of 
residents as determined by an assessment of residents conducted by the 
applicant.
    (16) Distance learning equipment. Distance learning equipment 
(including the costs for video casting and purchase/lease/rental of 
distance learning equipment) is an eligible use of funds provided your 
proposal indicates that the center will be working in a virtual setting 
with a college, university or other educational organization. If you 
operate more than one center, distance learning equipment can be used 
to link one or more centers so that residents using the different 
centers can benefit from courses being offered at only one site.
    (17) Administrative costs. Administrative costs may include, but 
are not limited to, purchase of furniture, office equipment and 
supplies, salaries for resident employees hired as part of this grant 
program, quality assurance, local travel, and utilities. Nonprofit 
organizations only may use administrative funds to pay for rental of 
space. For existing NN centers, administrative costs must not exceed 10 
percent of the total grant amount requested from HUD. Administrative 
costs must adhere to OMB Circular A-87. Please use HUD-424-CBW to 
itemize your administrative costs.
    (G) Ineligible Activities.
    (1) Payment of wages and/or salaries to participants receiving 
supportive services and/or training programs;
    (2) Purchase or rental of land;
    (3) Purchase or rental of vehicles; and
    (4) Cost of application preparation.
    (H) Threshold Requirements. Applicants must respond to threshold 
requirements clearly and thoroughly by following the instructions 
below. If your application fails one threshold requirement (regardless 
of the type of threshold) it will be considered a failed application 
and will not be reviewed further.
    (1) Match. All applicants are required to have in place a firmly 
committed 25% match in cash or in-kind donations as defined in this 
NOFA. Applicants who do not demonstrate the minimum 25% match will fail 
this threshold requirement and will not receive further consideration 
for funding. If you are applying for more than one ROSS grant, you must 
use different sources of match donations for each grant application. 
Match donations must be firmly committed. ``Firmly committed'' means 
that the amount of match resources and their dedication to ROSS-funded 
activities must be explicit, in writing and signed by a person 
authorized to make the commitment. Letters of commitment, or Memoranda 
of

[[Page 21532]]

Understanding (MOU) must be on organization letterhead, and signed by a 
person authorized to make the stated commitment whether it be in cash 
or in-kind services. The letters of commitment/MOUs must indicate the 
annual level and/or amount of commitment, be dated within two months of 
the application deadline, and indicate how the commitment will relate 
to the proposed program. If volunteer time is being committed it should 
be calculated using the number of hours to be committed and multiplied 
by either the normal professional rate for the local area or the 
national minimum wage rate of $5.15/hour. The commitment should be in 
place at time of award and should be for the duration of the grant. If 
you, the applicant, propose to use your own, non-ROSS grant funds to 
meet the match requirement in whole or in part, you must also include a 
letter of support indicating the type of match (cash or in-kind) and 
how the match will be used. Applicant staff time is not an eligible 
cash or in-kind match. Applicants shall annotate the HUD-424-CB to list 
the sources and amount of each match for the duration of the grant 
term. Grant awards shall be contingent upon letters of commitment being 
submitted with your application.
    (2) Past Performance. HUD's field offices will evaluate applicants 
for past performance to determine whether an applicant has the capacity 
to manage the grant for which they are applying. Using Rating Factor 1, 
the field office will evaluate applicants' past performance. Applicants 
should carefully review Rating Factor 1 to ensure their application 
addresses each of the criteria requested therein. If applicants fail to 
address what is requested in Rating Factor 1, their application will 
fail threshold and will not receive further consideration. If 
applicants pass threshold, they will go on to be scored for Rating 
Factor 1 during the technical review process.
    (3) All applicants except nontroubled PHAs are required to submit a 
signed Contract Administrator Partnership Agreement. The agreement must 
be for the thirty-six month duration of the grant term. Your grant 
award shall be contingent upon having a Partnership Agreement included 
in your application. The Contract Administrator must assure that the 
financial management system and procurement procedures that will be in 
place during the thirty-six month grant term will fully comply with 
either 24 CFR part 84 or 85. Troubled PHAs are not eligible to be 
Contract Administrators. Grant writers who assist applicants prepare 
their ROSS applications are also ineligible to be Contract 
Administrators. See the definition in Section III of Contract 
Administrator for more information.
    (4) Nonprofit applicants must include letters from Resident 
Organizations (RO), Resident Associations (RA) indicating that the ROs/
RAs you will be working with support your application. Letters from 
ROs/RAs must be signed by a person authorized to sign for the 
organization and should, whenever be possible, be on RO/RA letterhead.
    (I) Program Requirements.
    (1) Eligible Participants. All program participants must be 
residents of conventional public Housing. Participants in the Public 
Housing Family Self-Sufficiency (FSS) program who are residents of 
public housing (non Housing Choice Voucher Program) are also eligible 
to participate in activities funded under this category.
    (2) Resident Assessment. Applicants are required to assess 
residents' needs and interests so that program activities are designed 
to address their needs.
    (3) Applicants shall submit a business plan with their application 
(see Appendix B for a sample) which shall indicate level and type of 
expenditures over the three year grant term, contributions from 
partners, and efforts applicants will make to ensure the NN center will 
be sustainable once the grant term expires.
    (4) Partnering. Applicants should partner with local businesses, 
schools, libraries, banks, employment agencies, or other organizations 
which will help applicants deliver supportive services and fulfill 
residents' needs. These organizations can provide additional expertise, 
volunteers, office supplies, training materials, software, equipment, 
and other resources.
    (5) Performance Reports. The grantee shall submit semi-annual 
performance reports to the field office. These progress reports shall 
include financial reports (SF-269A) and a narrative describing 
milestones, work plan progress, and problems encountered and methods 
used to address these problems. HUD anticipates that some of the 
reporting of financial status and grant performance will be through 
Internet-based submissions. Grantees shall use quantifiable data to 
measure performance against goals and objectives outlined in its work 
plan. Performance reports are due to the field office on July 30 and 
January 31 of each year. If reports are not received by the due date, 
grant funds will not be advanced until reports are received.
    (6) Final Report. The grantees shall submit a final report which 
will include a financial report (SF-269A) and a narrative evaluating 
overall performance against its work plan. Grantees shall use 
quantifiable data to measure performance against goals and objectives 
outlined in its work plan. The financial report shall contain a summary 
of all expenditures made from the beginning of the grant agreement to 
the end of the grant agreement and shall include any unexpended 
balances. The final narrative and financial report shall be due to the 
field office 90 days after the termination of the grant agreement.
    (7) Final Audit. Grantees are required to obtain a complete final 
close-out audit of the grant's financial statements by a Certified 
Public Accountant (CPA), in accordance with generally accepted 
government audit standards. A written report of the audit must be 
forwarded to HUD within 60 days of issuance. Grant recipients must 
comply with the requirements of 24 CFR part 84 or 24 CFR part 85 as 
stated in OMB Circulars A-110, A-87, and A-122, as applicable.
    (J) Application Selection Process.
    (1) Four types of reviews will be conducted: A screening to 
determine if you are eligible to apply for this funding category; 
whether your application submission is complete, on time and meets 
threshold; a review by the field office to evaluate past performance; 
and a technical review to rate your application based on the five 
rating factors provided in this section. A minimum score of 75 is 
required for the application to be considered for funding.
    (2) The selection process is designed to achieve geographic 
diversity of grant awards throughout the country. HUD will first select 
the highest ranked application from each of the ten federal regions for 
funding. After this ``round,'' HUD will select the second highest 
ranked application in each of the ten federal regions for funding (the 
second round). HUD will continue this process with the third, fourth, 
and so on, highest ranked applications in each federal region until the 
last complete round is selected for funding. If available funds exist 
to fund some but not all eligible applications in the next round, HUD 
will make awards to those remaining applications in rank order 
regardless of region and will fully fund as many as possible with 
remaining funds. If remaining funds are too small to make an award, 
they will be used to partially fund applications in rank order 
regardless of region in the existing center category.
    (L) Factors for Award Used to Evaluate and Rate Neighborhood 
Networks Applications. The factors for rating and ranking applicants 
and

[[Page 21533]]

maximum points for each factor are provided below. The maximum number 
of points available for this program is 102. This includes two RC/EZ/EC 
bonus points, as described in the General Section of the SuperNOFA. The 
SuperNOFA contains a certificate that must be completed in order for 
the applicant to be considered for RC/EZ/EC bonus points. A listing of 
federally designated RCs, EZs, ECs, EECs and Strategic Planning 
Communities is attached to the General Section of the SuperNOFA as 
Appendix A-2 and is also available from the SuperNOFA Information 
Center, and the HUD Web site, www.hud.gov.

    Note: Applicants should carefully review each rating factor 
before writing a response. Applicants' narratives should be as 
descriptive as possible, ensuring that every requested item is 
addressed. Applicants should make sure to include all requested 
information, according to the instructions found in Section VIII of 
this NOFA. This will help ensure a fair and accurate review of your 
application. Applications must not be longer than 30 narrative 
pages. Supporting documentation and certificates will not be counted 
towards the 30 page limit. However, applicants should make every 
effort to submit only what is necessary in terms of supporting 
documentation.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (25 Points)

    This factor addresses whether the applicant has the organizational 
resources necessary to successfully implement the proposed activities 
within the grant period. In rating this factor HUD will consider the 
extent to which the proposal demonstrates that the applicant will have 
qualified and experienced staff dedicated to administering the program.
    (A) Proposed Program Staffing (12 Points)
    (1) Staff Experience (9 Points). The knowledge and experience of 
your proposed project coordinator, staff, subcontractors, and partners 
in planning and managing programs for which funding is being requested. 
Experience will be judged in terms of recent, relevant and successful 
experience of your staff to undertake eligible program activities. In 
rating this factor, HUD will consider experience within the last 5 
years to be recent; experience pertaining to the specific activities 
being proposed to be relevant; and experience producing specific 
accomplishments to be successful. The more recent the experience and 
the more experience your own staff members who work on the project have 
in successfully conducting and completing similar activities, the 
greater the number of points you will receive for this rating factor. 
If your proposed staff has experience working in both computer-related 
and social service programs, you will receive a maximum score. If your 
staff has experience in only one area, you will receive 2 points. If 
your staff has experience in neither area, you will receive a score of 
0 for this subfactor.
    The following information should be provided in order to provide 
HUD an understanding of your staff's experience and capacity:
    (a) The number of staff years (one staff year = 2080 hours) to be 
allocated to your program by each employee or expert as well as each of 
their roles in the program;
    (b) The staff's relevant educational background and/or work 
experience;
    (c) Relevant and successful experience running programs whose 
activities include social services and computer programs that are 
similar to the eligible program activities described in this grant 
category;
    (d) Another five points will be awarded if applicants commit to 
hiring 1-3 residents. Small PHAs should hire one person, medium PHAs 
should hire 1-2 people, and large PHAs should hire 3 people. In the 
case of large and medium PHAs, one hired resident should be 17 years of 
age or younger. Residents' salaries must be paid as administrative 
expenses, see section F(17) above.
    (2) Staff Capacity (3 Points). You will be evaluated based on 
whether you, your subcontractors and partners have sufficient personnel 
or will be able to quickly access enough qualified experts or 
professionals, to deliver the proposed activities in a timely and 
effective fashion. Your ability to immediately begin the proposed work 
program will also be evaluated. Attach resumes or position descriptions 
(where staff is not yet hired) for all key personnel. (Resumes do not 
count toward the 30-page limit.)
    (B) Past Performance of Applicant/Project Coordinator (6 Points). 
Your narrative must describe how you (or your proposed Project 
Coordinator) successfully implemented grant programs (including those 
listed below) designed to promote resident self-sufficiency or moving 
from welfare to work. You will be evaluated according to the following 
criteria:
    (1) Achievement of specific measurable outcomes and objectives in 
terms of benefits gained by participating residents (i.e. higher 
incomes, improved grades, higher rates of employment, increased 
savings, improved literacy, etc.);
    (2) Success in attracting and keeping residents involved in past 
grant programs so that grant activities benefited a significant numbers 
of residents;
    (3) Timely expenditure of funds throughout the term of the grant. 
Timely means regular drawdowns throughout the life of the grant, i.e. 
quarterly drawdowns, with all funds expended by the end of the grant 
term;
    (4) Leveraging of funding or in-kind services beyond that which was 
originally proposed to be used for past projects;
    (5) Long-term partnerships formed with local businesses, employers, 
libraries, community organizations, social service agencies, local 
colleges and universities, etc.
    Your past experience may include, but is not limited to, programs 
aimed at assisting residents of low-income housing achieve economic 
self-sufficiency; i.e. Tenant Opportunities Program and Youthbuild. 
Your narrative must indicate the grants, grant amounts, grant terms and 
grant sources which you are counting towards past experience.
    (C) Program Administration and Fiscal Management. (7 Points)
    (1) Program Administration. (4 Points). Describe how you will 
manage the program; how HUD can be sure that there is program 
accountability; and describe staff's roles and responsibilities.
    (2) Fiscal Management. (3 Points). In rating this factor, your 
skills and experience in fiscal management will be evaluated. If you 
have had any audit or material weakness findings, you will be evaluated 
on how well you have addressed them. You must provide the following:
    (a) A complete description of your fiscal management structure, 
including fiscal controls you have in place including those of a 
Contract Administrator for all applicants except non-troubled PHAs;
    (b) List any audit findings (HUD Inspector General, management 
review, fiscal, etc.), material weaknesses and what you have done to 
address them; and
    (c) For applicants who are required to have a Contract 
Administrator, describe the skills and experience your Contract 
Administrator has in managing federal funds.

Rating Factor 2: Need/Extent of the Problem (15 Points)

    This factor addresses the extent to which there is a need for 
funding your proposed program and your indication of the importance of 
meeting the need in the target area. In responding to this

[[Page 21534]]

factor, you will be evaluated on the extent to which you describe and 
document the level of need for your proposed activities and the urgency 
in meeting the need.
    You should use statistics and analyses contained in data source(s) 
that are sound and reliable. Data that describes socioeconomic 
conditions at the local level can be found by going to the following 
Web sites: www.bls.gov (Bureau of Labor Statistics) or www.census.gov 
(US Census). Other types of sources include academic, state, and local 
sources. To the extent possible, the data you use should be specific to 
the area where the proposed activities will be carried out. You should 
document needs as they apply to the area where activities will be 
targeted, rather than the entire locality or state.
    In responding to this factor, you should include:
    (1) Socioeconomic Profile (5 points). A thorough socioeconomic 
profile of the eligible residents to be served by your program, 
including education levels, income levels, the number of single-parent 
families, economic statistics for the local area, crime levels, etc.
    (2) Local Training Program Information (5 points). Information on 
training programs currently available and easily accessible to 
residents either through the PHA or other local or state community 
organizations.
    You may also address needs in terms of fulfilling the requirements 
of court actions or other legal decisions or which expand upon the 
Analysis of Impediments to Fair Housing Choice (AI) to further fair 
housing. If you address needs that are in your community's Consolidated 
Plan, AI, or a court decision, or identify and substantiate needs in 
addition to those in the AI, you will receive a greater number of 
points than applicants who do not relate their proposed program to the 
approved Consolidated Plan or AI or court action. Note: Fines, 
penalties, damages, and other settlements resulting from violations (or 
alleged violations) of, or failure of the applicant to comply with 
federal, state, local or Indian tribal laws and regulations are 
unallowable means in which to satisfy this Rating Factor, except when 
incurred as a result of compliance with specific provisions of the 
federal award or written instructions by the awarding agency 
authorizing in advance such payments.
    (3) Resource Documentation (3 points). The names and/or titles of 
information resources you used to document the need/extent of the 
problem.
    (4) Demonstrated Link Between Proposed Activities and Local Need (7 
points). There must be a clear relationship between your proposed 
activities, community needs and the purpose of the program funding for 
you to receive points for this factor.

Rating Factor 3: Soundness of Approach (30 Points)

    This factor addresses both the quality and cost-effectiveness of 
your proposed business plan. (A sample business plan is included in 
Appendix B.) Your business plan and supporting narrative must indicate 
a clear relationship between your proposed activities, the targeted 
population's needs, and the purpose of the program funding. Your 
activities must address HUD's policy priorities which relate to this 
program.
    In rating this factor HUD will consider:
    (A) Quality of the Business Plan and Supporting Narrative (18 
points). This factor evaluates both your business plan, narrative, and 
your budget and will be evaluated based on the following components:
    (1) Specific Services and/or Activities (6 points). Your business 
plan and supporting narrative must describe the specific services and 
activities you plan to offer and who will be responsible for each. HUD 
will consider how well your proposed activities will:
    (a) Involve community partners in the delivery of services; and
    (b) Offer comprehensive services versus a small range of services 
geared toward enhancing economic opportunities for residents.
    (2) Feasibility and Demonstrable Benefits (4 points). This factor 
examines whether your business plan and supporting narrative are 
logical, feasible and likely to achieve its stated purpose during the 
term of the grant. HUD's desire is to fund projects that will quickly 
produce demonstrable results and advance the purposes of the ROSS 
program.
    (a) Timeliness. This subfactor evaluates whether your business plan 
demonstrates that your project is ready to implement shortly after 
grant award, but not to exceed three months of grant award. Your 
business plan should indicate timeframes and deadlines for 
accomplishing major activities.
    (b) Description of the problem and solution. Your business plan and 
supporting narrative will be evaluated based on how well your proposed 
activities address the needs described in Factor 2.
    (3) Budget Appropriateness/Efficient Use of Grant. (4 Points). The 
score in this factor will be based on the following:
    (a) Justification of expenses. You will be evaluated based on 
whether your expenses are reasonable and well-explained.
    (b) Budget Efficiency. You will be evaluated based on whether your 
application requests funds commensurate with the level of effort 
necessary to accomplish your goals and anticipated results.
    (4) Involving Residents in the Design of the Work Plan (4 points). 
All applicants should make every effort to involve residents in the 
design of the work plan, so that activities and services offered by 
your organization address their needs.
    (B) Addressing HUD's Policy Priorities (12 points). HUD wants to 
improve the quality of life for those living in distressed communities. 
HUD's grant programs are a vehicle through which constructive changes 
can be achieved. Your narrative and business plan will be evaluated 
based on how well it meets the following HUD policy priorities:
    (1) Improving the Quality of Life in Our Nation's Communities (5 
points). In order to receive points in this category, your business 
plan and supporting narrative must indicate the types of activities and 
training programs you will offer which can help residents successfully 
transition from welfare to work and earn higher wages.
    (2) Providing Full and Equal Access to Grassroots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation (7 
points). HUD encourages applicants to partner with grassroots 
organizations, e.g., civic organizations, grassroots faith-based and 
other community-based organizations that are not usually effectively 
utilized. These grassroots organizations have a strong history of 
providing vital community services such as developing first-time 
homeownership programs, creating economic development programs, 
providing job training and other supportive services. In order to 
receive points under this factor, your narrative and business plan must 
describe how you will work with these organizations and what types of 
services they will provide.

Rating Factor 4: Leveraging Resources (20 Points)

    This factor addresses your ability to secure community resources 
that can be combined with HUD's grant resources to achieve program 
purposes. You are required to create partnerships with organizations 
that can help you achieve your program's goals. PHAs are required

[[Page 21535]]

by QHWRA (Sec. 12(d)(7) of the U.S. Housing Act, entitled ``Cooperation 
Agreements for Economic Self-Sufficiency Activities'') to make best 
efforts to enter into such agreements with relevant state or local 
agencies. In rating this factor, HUD will look at the extent to which 
you partner, coordinate and leverage your services with other 
organizations serving the same or similar populations.
    Additionally, you must have at least a 25 percent cash or in-kind 
match. The match is a threshold requirement. Applicants who do not 
demonstrate the minimum 25% match will fail the threshold requirement 
and will not receive further consideration for funding. If you are 
applying for more than one ROSS grant, you must use different sources 
of match donations for each grant application. Leveraging in excess of 
the 25 percent of the grant amount will receive a higher point value. 
In evaluating this factor HUD will consider the extent to which you 
have partnered with other entities to secure additional resources to 
increase the effectiveness of your proposed program activities. The 
budget, the business plan, narrative, and commitments for additional 
resources and services, other than the grant, must show that these 
resources are firmly committed, will support the proposed grant 
activities and will, in combined amount (including in-kind 
contributions of personnel, space and/or equipment, and monetary 
contributions) equal at least 25 percent of the grant amount proposed 
in this application. ``Firmly committed'' means that the amount of 
resources and their dedication to ROSS-funded activities must be 
explicit, in writing and signed by a person authorized to make the 
commitment. Letters of commitment, or Memoranda of Understanding (MOU) 
must be on organization letterhead and signed by a person authorized to 
make the stated commitment. The letters of commitment/MOUs must 
indicate the annual level and/or amount of commitment, be dated within 
two months of the application deadline, and indicate how the commitment 
will relate to the proposed program. If you, the applicant, propose to 
use your own, non-ROSS grant funds to meet the match requirement in 
whole or in part, you must also include a letter of support indicating 
the type of match (cash or in-kind) and how the match will be used. 
Applicant staff time is not an eligible cash or in-kind match. 
Applicants shall annotate their budget form (HUD-424-CB) to list the 
sources and amount of each match. Grant awards shall be contingent upon 
letters of commitment being submitted with your application.
    (A) Volunteer time shall be computed by using the normal 
professional rate for the local area or the national minimum wage rate 
of $5.15 per hour (Note: Applicants may not use their staff time 
towards the match);
    (B) In order for HUD to determine the value of any donated 
material, equipment, staff time, building, or lease, your application 
must provide a letter from the organization making the donation stating 
the value of the contribution. The letter must be on letterhead, signed 
by an official authorized to make such commitments on behalf of the 
donating organization and must be dated within two months of the 
application deadline.
    (C) Other resources/services that can be committed include: in-kind 
services, contributions or administrative costs provided to the 
applicant; funds from federal sources (not including ROSS funds) as 
allowed by statute, including for example Community Development Block 
Grant (CDBG) and federal Revenue Sharing; funds from any state or local 
government sources; and funds from private contributions. You may also 
partner with other program funding recipients to coordinate the use of 
resources in your target area.
    (D) Points for this factor will be awarded based on the documented 
evidence of partnerships and firm commitments and the ratio of 
requested ROSS funds to the total proposed grant budget.
    Points will be assigned based on the following scale:

------------------------------------------------------------------------
                                                                 Points
                     Percentage of match                        awarded
------------------------------------------------------------------------
25...........................................................          5
26-50........................................................         10
51-75........................................................         15
76-99 or above...............................................         20
------------------------------------------------------------------------

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    An important element in this year's NOFA is the development and 
reporting of performance measures and outcomes. Under this rating 
factor, applicants must demonstrate how they propose to measure their 
success and outcomes as they relate to the Department's Strategic Plan.
    This factor emphasizes HUD's determination to ensure that 
applicants meet commitments made in their applications and grant 
agreements and that they assess their performance so that they realize 
performance goals. HUD requires ROSS applicants to develop an 
effective, quantifiable, outcome oriented work plan for measuring 
performance and determining that goals have been met.
    ``Outcomes'' are benefits accruing to the residents, families and/
or communities during or after participation in the ROSS program. 
Outcomes are not the actual development of self-sufficiency services or 
program activities. Applicants must clearly identify the outcomes to be 
achieved and measured. Examples of outcomes are: increasing the 
homeownership rates among residents of a development or from a 
particular housing authority, increasing residents' financial stability 
(e.g., increasing assets of a household through savings), or increasing 
employment stability (e.g., whether persons assisted obtain or retain 
employment for one or two years after job training completion).
    In addition to outcomes, applicants must establish interim 
benchmarks or outputs for their proposed program that lead to the 
ultimate achievement of outcomes. ``Outputs'' are the direct products 
of a program's activities. Examples of outputs are: the number of 
eligible families that participate in supportive services, the number 
of new services provided, the number of residents receiving counseling, 
or the number of households using a technology center. Outputs should 
produce outcomes for your program.
    This rating factor requires that you, the applicant, identify 
program outcomes, outputs, benchmarks, and performance indicators that 
will allow you to measure your performance. Performance indicators 
should be objectively quantifiable and measure actual achievements 
against anticipated achievements. Your work plan should identify what 
you are going to measure, how you are going to measure it, and the 
steps you have in place to make adjustments to your work plan if 
performance targets are not met within established timeframes.
    In order to satisfy the requirements for Factor 5, you must submit 
a work plan and a Logic Model that demonstrates how you will measure 
your own program performance. Your plan must identify the outcomes you 
expect to achieve or goals you hope to meet over the term of your 
proposed grant and benchmarks, outputs, and timeframes for 
accomplishing these goals. Your work plan must show how you will 
measure actual accomplishments against anticipated achievements. You 
must indicate how your plan will measure the performance of individual 
consortium members and affiliates, including the standards, data 
sources, and measurement methods, and the

[[Page 21536]]

steps you have in place or how you plan to make adjustments if you 
begin to fall short of established benchmarks and timeframes. 
Applicants should also use the Logic Model provided in the General 
Section of this SuperNOFA for reporting on how they will conduct 
performance measurement. You will be evaluated based on how 
comprehensively you propose to measure your program's outcomes.

VII. Program Requirements, Certifications, and Procedures for ROSS 
Applicants

    The requirements of this section are applicable to all applicants, 
and grantees under this announcement of funding availability.
    (A) Compliance with Fair Housing and Civil Rights Laws. Your 
application must meet all the applicable threshold requirements found 
in Section V (B)(2) of the General Section of the SuperNOFA, as well as 
the following requirements.
    (B) Affirmatively Furthering Fair Housing. You must adhere to the 
requirements as provided in Section V (D) of the General Section of the 
SuperNOFA.
    (C) Conducting Business In Accordance With Core Values and Ethical 
Standards. All applicants shall develop and maintain a written code of 
conduct that reflects Core Values. See Section V(B)(3) of the General 
Section of the SuperNOFA for requirements.
    (D) Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses. The Department of 
Housing and Urban Development (HUD) is committed to ensuring that small 
businesses, small disadvantaged businesses and women-owned businesses 
participate fully in HUD's direct contracting and in contracting 
opportunities generated by HUD grant funds. See Section V (F) of the 
General Section of the SuperNOFA for requirements.
    (E) Economic Opportunities for Low and Very Low Income Persons 
(Section 3). You must adhere to the requirements as provided in Section 
V (E) of the General Section of the SuperNOFA.
    (F) Certifications and Assurances. Section V(H) of the General 
Section of the SuperNOFA lists requirements, certifications and 
procedures that apply to all programs, including ROSS. Applicants must 
comply with these in order to be eligible for the ROSS program.
    (G) Applicant Internet Access. Prior to the initial draw down, all 
grantees must have secured online access to the Internet as a means to 
communicate with HUD on grant matters. Tribes and TDHEs awardees may 
submit a waiver request to the Office of Native American Programs for 
this requirement if Internet access cannot be obtained. If tribes/TDHEs 
do not have Internet access, they must send hard copies of their grant 
documents to their Area ONAP.
    (H) ROSS Evaluation and Assessment. All applicants selected for 
award must be willing to participate in the evaluation and assessment 
that HUD intends to conduct for the ROSS Program. At grant award HUD 
will provide additional information on the evaluation and assessment 
for applicants who receive awards.
    (H) ROSS Performance Measures. All applicants selected for award 
should use ROSS Performance Measures in grant reporting for all awards. 
At grant award HUD will provide additional information on reporting the 
Performance Measures and the Logic Model for applicants who receive 
awards.
    (I) Format for submitting applications. All documents must be 
attached or located according to the instructions below. Applicants 
should ensure to submit forms appropriate to the program for which they 
are applying. Applicants who fail to follow these instructions, may 
lose points if their documentation is not found according to the 
following instructions (grant reviewers will not be instructed to 
search through the entire application package for missing documents):

(1) RSDM-Family

    Tab 1: Required Forms from the General Section of the SuperNOFA and 
other ROSS forms:

    [sbull] Applicant Checklist (HUD-52759);
    [sbull] Fact Sheet (HUD-52751);
    [sbull] Application for Federal Assistance (HUD-424);
    [sbull] Budget Summary for Competitive Grant Programs (HUD-424C);
    [sbull] Applicant Assurances and Certifications (HUD-424B);
    [sbull] Grant Application Detailed Budget (HUD-424-CB);
    [sbull] Grant Application Detailed Budget Worksheet (HUD-424-CBW);
    [sbull] Applicant/Recipient Disclosure/Update Report (HUD-2880);
    [sbull] Certification of Consistency with RC/EZ/EC Strategic Plan 
(HUD-2990) if applicable;
    [sbull] Certification of Consistency with the Consolidated Plan 
(HUD-2991) if applicable;
    [sbull] Certification of Consistency with the Indian Housing Plan 
if applicable (HUD-52752);
    [sbull] Certification of Resident Council Board of Election/Signed 
Letter from Small Housing Authorities without Resident Councils 
attesting to the fact that the Board contains one or more residents who 
were appointed by the Housing Authority or elected by fellow tenants 
(not applicable to tribes/TDHEs (HUD-52753);
    [sbull] Disclosure of Lobbying Activities (HUD-SF-LLL)--if 
applicable (applicants requiring additional space may find the 
Disclosure of Lobbying Activities Continuation Sheet (HUD-SF-LLL-A) 
through HUD's web site, http://www.hud.gov);
    [sbull] Acknowledgment of Application Receipt (HUD-2993); and,
    [sbull] Client Comments and Suggestions (HUD-2994). (Optional)
    [sbull] Survey on Ensuring Equal Opportunity Applicants (HUD-23004)

    TAB 2: Threshold Requirements:

    [sbull] Letters from Partners attesting to match;
    [sbull] Letter from Applicant's organization attesting to match;
    [sbull] Letters from Resident Associations/Resident Organizations 
indicating support of nonprofit applicants;
    [sbull] Chart of Resident Associations Participating (required for 
nonprofit applicants) (HUD-52754);
    [sbull] Contract Administrator Partnership Agreement (for all 
applicants except non-troubled PHAs, and tribes/TDHES) (HUD-52755); and
    [sbull] Past Performance evaluation (from HUD field office).

    TAB 3: Narrative for Rating Factor 1 and Non-Standard ROSS Program 
Forms:

    [sbull] Narrative;
    [sbull] Chart A: Program Staffing (HUD-52756);
    [sbull] Chart B: Applicant/Administrator Track Record (HUD-52757);
    [sbull] Resumes/Position Descriptions.

    TAB 4: Narrative for Rating Factor 2
    TAB 5: Rating Factor 3:

    [sbull] Narrative;
    [sbull] Work plan (see sample) (HUD-52763).

    TAB 6: Narrative for Rating Factor 4
    TAB 7: Narrative for Rating Factor 5 and Non-Standard ROSS Program 
Forms:

    [sbull] Narrative;
    [sbull] Logic Model (HUD-96010).

(2) RSDM-Elderly and Persons with Disabilities

    TAB 1: Required Forms from the General Section of the SuperNOFA and 
other ROSS forms:
    [sbull] Applicant Checklist (HUD-52760);
    [sbull] Fact Sheet (HUD-52751);
    [sbull] Application for Federal Assistance (HUD-424);

[[Page 21537]]

    [sbull] Budget Summary for Competitive Grant Programs (HUD-424C);
    [sbull] Applicant Assurances and Certifications (HUD-424B);
    [sbull] Grant Application Detailed Budget (HUD-424-CB);
    [sbull] Grant Application Detailed Budget Worksheet (HUD-424-CBW);
    [sbull] Applicant/Recipient Disclosure/Update Report (HUD-2880);
    [sbull] Certification of Consistency with the Consolidated Plan 
(HUD-2991) if applicable;
    [sbull] Certification of Consistency with the Indian Housing Plan 
if applicable (HUD-52752);
    [sbull] Certification of Resident Council Board of Election/Signed 
Letter from Small Housing Authorities without Resident Councils 
attesting to the fact that the Board contains one or more residents who 
were appointed by the Housing Authority or elected by fellow tenants 
(not applicable to tribes/TDHEs (HUD-52753);
    [sbull] Disclosure of Lobbying Activities (HUD-SF-LLL)--if 
applicable (applicants requiring additional space may find the 
Disclosure of Lobbying Activities Continuation Sheet (HUD-SF-LLL-A) 
through HUD's web site, http://www.hud.gov);
    [sbull] Acknowledgment of Application Receipt (HUD-2993); and,
    [sbull] Client Comments and Suggestions (HUD-2994). (Optional)
    [sbull] Survey on Ensuring Equal Opportunity Applicants (HUD-23004)

    TAB 2: Threshold Requirements:

    [sbull] Letters from Partners attesting to match;
    [sbull] Letter from Applicant's organization attesting to match;
    [sbull] Letters from Resident Associations/Resident Organizations 
indicating support of nonprofit applicants;
    [sbull] Chart of Resident Associations Participating (required for 
nonprofit applicants) (HUD-52754);
    [sbull] Contract Administrator Partnership Agreement (for all 
applicants except non-troubled PHAs, and tribes/TDHES) (HUD-52755); and
    [sbull] Past Performance evaluation (from HUD field office).

    TAB 3: Narrative for Rating Factor 1 and Non-Standard ROSS Program 
Forms:

    [sbull] Narrative;
    [sbull] Chart A: Program Staffing (HUD-52756);
    [sbull] Chart B: Applicant/Administrator Track Record (HUD-52757);
    [sbull] Resumes/Position Descriptions.
    TAB 4: Narrative for Rating Factor 2
    TAB 5: Rating Factor 3:

    [sbull] Narrative;
    [sbull] Work plan (see sample) (HUD-52764).
    TAB 6: Narrative for Rating Factor 4
    TAB 7: Narrative for Rating Factor 5 and Non-Standard ROSS Program 
Forms:
    [sbull] Narrative;
    [sbull] Performance measures Logic Model (HUD-96010).

(3) Homeownership Supportive Services

    TAB 1: Required Forms from the General Section of the SuperNOFA and 
other ROSS forms:

    [sbull] Applicant Checklist (HUD-52761);
    [sbull] Fact Sheet (HUD-52751);
    [sbull] Application for federal Assistance (HUD-424);
    [sbull] Budget Summary for Competitive Grant Programs (HUD-424C);
    [sbull] Applicant Assurances and Certifications (HUD-424B);
    [sbull] Grant Application Detailed Budget (HUD-424-CB);
    [sbull] Grant Application Detailed Budget Worksheet (HUD-424-CBW);
    [sbull] Applicant/Recipient Disclosure/Update Report (HUD-2880);
    [sbull] Certification of Consistency with RC/EZ/EC Strategic Plan 
(HUD-2990) if applicable;
    [sbull] Certification of Consistency with the Consolidated Plan 
(HUD-2991) if applicable;
    [sbull] Certification of Consistency with the Indian Housing Plan 
if applicable (HUD-52752);
    [sbull] Certification of Resident Council Board of Election/Signed 
Letter from Small Housing Authorities without Resident Councils 
attesting to the fact that the Board contains one or more residents who 
were appointed by the Housing Authority or elected by fellow tenants 
(not applicable to tribes/TDHEs) (HUD-52753);
    [sbull] Disclosure of Lobbying Activities (HUD-SF-LLL)--if 
applicable (applicants requiring additional space may find the 
Disclosure of Lobbying Activities Continuation Sheet (HUD-SF-LLL-A) 
through HUD's web site, http://www.hud.gov);
    [sbull] Acknowledgment of Application Receipt (HUD-2993); and,
    [sbull] Client Comments and Suggestions (HUD-2994). (Optional)
    [sbull] Survey on Ensuring Equal Opportunity Applicants (HUD-23004)

    TAB 2: Threshold Requirements:

    [sbull] Letters from Partners attesting to match;
    [sbull] Letter from Applicant attesting to match;
    [sbull] Letters from Resident Associations/Resident Organizations 
indicating support of nonprofit applicants;
    [sbull] Chart of Resident Associations Participating (required of 
nonprofit applicants) (HUD-52754);
    [sbull] Contract Administrator Partnership Agreement (for all 
applicants except non-troubled PHAs and tribes/TDHEs) (HUD-52755); and
    [sbull] Past Performance evaluation (from HUD field office).
    TAB 3: Narrative for Rating Factor 1 and Non-Standard ROSS Program 
Forms:

    [sbull] Narrative;
    [sbull] Chart A: Program Staffing (HUD-52756);
    [sbull] Chart B: Applicant/Administrator Track Record (HUD-52757);
    [sbull] Resumes/Position Descriptions.

    TAB 4: Narrative for Rating Factor 2

    TAB 5: Rating Factor 3:

    [sbull] Narrative;
    [sbull] Work plan (see sample) (HUD-52765).

    TAB 6: Narrative for Rating Factor 4
    TAB 7: Narrative for Rating Factor 5 and Non-Standard ROSS Program 
Forms:

    [sbull] Narrative;
    [sbull] Logic Model (HUD-96010).

(4) Neighborhood Networks

    TAB 1: Required Forms from the General Section of the SuperNOFA and 
other ROSS forms:

    [sbull] Applicant Checklist (HUD-52762);
    [sbull] Fact Sheet (HUD-52751);
    [sbull] Application for federal Assistance (HUD-424);
    [sbull] Budget Summary for Competitive Grant Programs (HUD-424C);
    [sbull] Applicant Assurances and Certifications (HUD-424B);
    [sbull] Grant Application Detailed Budget (HUD-424-CB);
    [sbull] Grant Application Detailed Budget Worksheet (HUD-424-CBW);
    [sbull] Applicant/Recipient Disclosure/Update Report (HUD-2880);
    [sbull] Certification of Consistency with RC/EZ/EC Strategic Plan 
(HUD-2990) if applicable;
    [sbull] Certification of Consistency with the Consolidated Plan 
(HUD-2991) if applicable;
    [sbull] Certification of Resident Council Board of Election/Signed 
Letter from Small Housing Authorities without Resident Councils 
attesting to the fact that the Board contains one or more residents who 
were appointed by the Housing Authority or elected by fellow tenants 
(HUD-52753);
    [sbull] Disclosure of Lobbying Activities (HUD-SF-LLL)--if 
applicable (applicants requiring additional space may find the 
Disclosure of Lobbying Activities Continuation Sheet (HUD-SF-LLL-A) 
through HUD's web site, http://www.hud.gov);
    [sbull] Acknowledgment of Application Receipt (HUD-2993); and,

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    [sbull] Client Comments and Suggestions (HUD-2994) (Optional);
    [sbull] Survey on Ensuring Equal Opportunity Applicants (HUD-23004)

    TAB 2: Threshold Requirements:

    [sbull] Letters from Partners attesting to match;
    [sbull] Letter from Applicant attesting to match;
    [sbull] Letters from Resident Associations/Resident Organizations 
indicating support of nonprofit applicants;
    [sbull] Chart of Resident Associations Participating (required for 
nonprofit applicants) (HUD-52754);
    [sbull] Contract Administrator Partnership Agreement (required for 
all applicants except non-troubled PHAs) (HUD-52755); and
    [sbull] Past Performance evaluation (from HUD field office).

    TAB 3: Narrative for Rating Factor 1 and Non-Standard ROSS Program 
Forms:

    [sbull] Narrative;
    [sbull] Chart A: Program Staffing (HUD-52756);
    [sbull] Chart B: Applicant/Administrator Track Record (HUD-52757);
    [sbull] Resumes/Position Descriptions.

    TAB 4: Narrative for Rating Factor 2
    TAB 5: Rating Factor 3:

    [sbull] Narrative;
    [sbull] Business Plan (see sample) (HUD-52766).

    TAB 6: Narrative for Rating Factor 4
    TAB 7: Narrative for Rating Factor 5 and Non-Standard ROSS Program 
Forms:

    [sbull] Narrative;
    [sbull] Logic Model (HUD-96010).

VIII. Corrections to Deficient Applications

    After the application due date, HUD may not, consistent with its 
regulations at 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 the 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 of a 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 requested by HUD must 
be submitted within 14 calendar days of the date you receive 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.) The determination of 
when you received the deficiency letter will be based on the 
confirmation of the facsimile transmission, return receipt or postal 
tracking information, as appropriate. 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.
    Unacceptable Applications. After the 14-day technical deficiency 
correction period, the Grants Management Center (GMC), or the DPONAP 
for tribal and TDHE applicants, will disapprove all applications that 
the GMC, or DPONAP determines are not acceptable for processing. The 
GMC's notification of rejection must state the basis for the decision. 
The applicant may request a debriefing. Applicants requesting to be 
debriefed must send a written request to Michael Diggs, Director, 
Grants Management Center, Department of Housing and Urban Development, 
501 School Street, SW., Suite 800, Washington, DC 20024. For tribal and 
TDHE applicants, contact Deborah Lalancette, Director, Grants 
Management, DPONAP, 1999 Broadway, Suite 3390, Denver, CO 80202.
    HUD Reform Act of 1989. The provisions of the HUD Reform Act of 
1989 that apply to this NOFA are explained in the General Section of 
the SuperNOFA in Section XI.

IX. Environmental Requirements

    It is anticipated that most activities under this ROSS funding will 
be categorically excluded under 24 CFR 58.34(a)(3) or (a)(9), 
58.35(b)(2) or (b) (4), 50.19(b)(3), (b)(9), (b)(12), or (b)(14). An 
applicant proposing any long-term leasing, or physical development 
activities is prohibited from rehabilitating, converting, leasing, 
repairing or constructing property, or committing or expending HUD or 
non-HUD funds for these types of program activities, until one of the 
following has occurred:
    (1) If the grantee is not a PHA or tribe/TDHE, HUD has completed an 
environmental review to the extent required by 24 CFR part 50, prior to 
grant award.
    (2) If the grantee is a PHA or tribe/TDHE, HUD has approved the 
grantee's Request for Release of Funds (HUD Form 7015.15) following a 
Responsible Entity's completion of an environmental review under 24 CFR 
part 58, where required, or if HUD has determined in accordance with 
Sec.  58.11 to perform the environmental review itself under part 50, 
HUD has completed the environmental review.

XI. Authority

    Section 34 of the U.S. Housing Act of 1937 and 24 CFR 964.

Appendix A--ROSS Forms

    The non-standard forms, which follow, are required for the ROSS 
application. The forms marked ``Sample'', are intended to assist 
applicants provide information HUD is requesting in an easy-to-use 
format. Applicants do not have to adhere to the precise format, but 
should make sure to include the same information in their submission.
BILLING CODE 4210-32-P

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21581]]



Funding Availability for Continuum of Care Homeless Assistance 
Programs--Supportive Housing Program (SHP), Shelter Plus Care (S+C), 
Section 8 Moderate Rehabilitation Single Room Occupancy Program for 
Homeless Individuals (SRO)

 Program Overview

    Purpose of the Programs. The purpose of the Continuum of Care 
Homeless Assistance Programs is to fund projects that will fill gaps in 
locally developed Continuum of Care systems to assist homeless persons 
to move to self-sufficiency and permanent housing. An important element 
of meeting this objective is to fund projects that will meet the 
Department's goal of ending chronic homelessness.
    Available Funds. Approximately $ 1.060 billion.
    Eligible Applicants. The chart in Appendix A to this program 
section of this SuperNOFA identifies the eligible applicants for each 
of the three programs under the Continuum of Care.
    Application Deadline. July 15, 2003.
    Match. Yes.

 Additional Information

    If you are interested in applying for funding under any of the 
Continuum of Care Homeless Assistance programs, please review carefully 
the General Section of the SuperNOFA and the following Additional 
Information. Failure to comply with the procedures specified may 
disqualify your application.

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

    Application Due Date. Your completed applications (an original 
containing the signed documentation and two copies) are due on or 
before July 15, 2003 to the addresses shown below.
    Security Procedures. HUD security procedures apply to application 
submission. Please read the following instructions carefully and 
completely. HUD will not accept hand delivered applications at any 
office. Applications to HUD Headquarters must be either mailed using 
the United States Postal Service (USPS) or may be shipped via the 
following delivery services: United Parcel Service (UPS), FedEX, DHL, 
or Falcon Carrier. Express delivery service is highly recommended. No 
other delivery services are permitted into HUD Headquarters without 
escort. You must, therefore, use one of the four carriers listed above. 
HUD strongly suggests application copies submitted to HUD Field Offices 
be sent via the United States Postal Service, as access by other 
delivery services is not guaranteed.
    Please remember that mail to Federal facilities is screened prior 
to delivery, so please allow time for your package to be delivered, and 
that it is addressed to the proper location and office.
    Timeliness. Your application will be considered timely filed if 
your application is either
    (1) Postmarked on or before 12:00 midnight on the application due 
date; or
    (2) Was placed in transit with an approved overnight delivery/
express mail service on or before 12:00 midnight on the application due 
date; and was received by HUD Headquarters with in fifteen (15) days of 
the application due date. All applicants must obtain and save a 
Certificate of Mailing (USPS Form 3817) showing the date when you 
submitted your application to the United States Postal Service (USPS) 
or documentary evidence showing the date that the application was 
placed in transit with an approved overnight delivery/express mail 
service. These will be your evidence that your application was timely 
filed.
    Approved Overnight Delivery/Express Mail Services. Due to new 
security measures, you must use one of the four carrier services that 
do business with HUD Headquarters regularly. These services are UPS, 
DHL, FedEx, and Falcon Carrier. Delivery by these services must be made 
during HUD's Headquarters business hours, between 8:30 AM and 5:30 PM 
Eastern time, Monday to Friday. If these companies do not service your 
area, you should submit your application via the United States Postal 
Service.
    Addresses for Submitting Applications. To HUD Headquarters. Submit 
your original completed application (the application with the original 
signed documentation) to: Room 7270, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW, Washington, DC 20410, Attention: Continuum of Care 
Programs.
    To the Appropriate CPD Field Office. Also submit two copies of your 
completed application to the Community Planning and Development 
Division of the appropriate HUD Field Office for your jurisdiction. The 
field office copies also must be postmarked or placed in transit with 
an approved delivery/express mail service on or before 12:00 midnight 
on the application due date and received by the field office with in 
fifteen (15) days. You must obtain and save a Certificate of Mailing 
(USPS Form 3817) showing the date when you submitted the field office's 
copies of your application to the United States Postal Service (USPS). 
The determination, however, that your application was received on time 
will be made solely on receipt of the application at HUD Headquarters 
in Washington. Reviews will be based upon the contents of the 
application submitted to HUD Headquarters. However, in the event that 
the application received in Headquarters is missing pages or exhibits 
that result in your application not being selected for an award, HUD 
may request proof that your field office copies were submitted and 
received on time and may insert pages from the field office copies into 
the Headquarters copy for review.
    For Application Kits. This year, the application kit will be 
attached to this program section of the SuperNOFA as Appendix B. An 
applicant may also obtain a copy of the application kit by calling the 
SuperNOFA Information Center at 1-800-HUD-8929 (voice) (this is a toll-
free number) or you may download an application by Internet at http://www.hud.gov.
    For Further Information. You may contact the HUD Field Office 
serving your area, at the telephone number shown in Appendix A to the 
General Section of the SuperNOFA, or you may contact the Community 
Connections Information Center at 1-800-998-9999 (voice) or by Internet 
at: http://www.hud.gov. Individuals who are hearing-or speech-impaired 
should use the Information Relay Service at 1-800-877-8339 (these are 
toll-free numbers).
    For Technical Assistance. Before the application deadline, HUD 
staff will be available to provide you with general guidance. HUD 
staff, however, cannot provide you with guidance in actually preparing 
your application. HUD Field Office staff also will be available to help 
you identify organizations in your community that are involved in 
developing the Continuum of Care (CoC) system. Following conditional 
selection of applications, HUD staff will be available to assist 
selected applicants in clarifying or confirming information that is a 
prerequisite to the offer of a grant agreement or Annual Contributions 
Contract by HUD. However, between the application deadline and the 
announcement of conditional selections, HUD will accept no information 
that would improve the substantive quality of your application 
pertinent to HUD's funding decision.
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of the application. For more information about the date and 
time of the broadcast, you

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should consult the HUD Web site at http://www.hud.gov.

II. Amount Allocated

    Approximately $1.060 billion is available for this Continuum of 
Care (CoC) competition in FY 2003. Any unobligated funds from previous 
CoC competitions or additional funds that may become available as a 
result of deobligations or recaptures from previous awards or budget 
transfers may be used in addition to 2003 appropriations to fund 
applications submitted in response to this program section of this 
SuperNOFA. The FY 2003 HUD Appropriation Act requires HUD to obligate 
all Continuum of Care homeless assistance funds by September 30, 2005. 
These funds will remain available for expenditure for five years 
following that date. The funds available for the CoC program can be 
used under any of three programs that can assist in creating community 
systems for combating homelessness. The three programs are:
    (1) Supportive Housing (SHP);
    (2) Shelter Plus Care (S+C); and
    (3) Section 8 Moderate Rehabilitation Single Room Occupancy for 
Homeless Individuals (SRO).
    The chart in Appendix A to this program section of this SuperNOFA 
summarizes key aspects of the programs, and also provides the citations 
for the statutes and regulations that authorize these programs. The 
regulations listed in the chart provide more detailed descriptions of 
each of the programs.
    As noted in Appendix A, for FY 2003, the minimum term of assistance 
for all new SHP projects is two (2) years. The minimum term for new 
HMIS is one (1) year. Any requests for one-(1) year terms for new SHP 
projects will be automatically changed to a two-year term if funded. In 
this case, the one-year budget will be doubled and the applicant will 
provide the difference between the awarded SHP amount and the two-year 
total budget. If the applicant does not agree to these conditions, the 
award will be deselected. The renewal term of expiring SHP projects 
will remain at the applicant's choice of one-, two- or three-year term.
    As in previous funding availability announcements for the CoC 
Homeless Assistance Programs, HUD will not specify amounts for each of 
the three programs this year. Instead, the distribution of funds among 
the three programs will depend largely on locally determined priorities 
and overall demand. Local priorities notwithstanding, the FY 2003 HUD 
Appropriations Act requires that not less than 30 percent of this 
year's Homeless Assistance Grants appropriation, excluding amounts 
provided for one-year renewals under the Shelter Plus Care Program, 
must be used for permanent housing projects. (See Sections V(A)(5)(b) 
and V(A)(8) of this program section of the SuperNOFA for additional 
information.) Since this permanent housing set-aside requirement is 
expected to continue to be part of future competitions and may affect 
project funding selections as described below, you are strongly 
encouraged to begin planning as soon as possible for new permanent 
housing projects to be included as part of your submission in this and 
future competitions.
    Secretary Martinez has established as a HUD priority the 
elimination of chronic homelessness in ten years. Continuums, 
therefore, are strongly encouraged within the rating and ranking 
process to use the funds available in this NOFA to target the chronic 
homeless in their communities. Such projects awarded through any of the 
three programs will contribute to the Department's priority of ending 
chronic homelessness.
    Under the FY 2003 HUD Appropriations Act, eligible Shelter Plus 
Care Program grants whose terms are expiring in FY 2004, and Shelter 
Plus Care Program grants that have been extended beyond their original 
five-year terms but which are projected to run out of funds in FY 2004, 
will be renewed for one year provided that they are determined to be 
needed by the CoC as evidenced by their inclusion on the priority 
chart. These projects must also meet the applicant and sponsor 
eligibility and capacity requirements described in Section V(A)(1) of 
this NOFA. However, these S+C renewal projects will not count against a 
continuum's pro rata need amount. On the other hand, no S+C renewal 
adjustment will be made to a CoC's pro rata need amount since these 
projects are being funded outside of the competition. Please be advised 
that S+C renewal applications that are not submitted as part of either 
a ``consolidated'' or ``associated'' CoC application will not be 
considered as eligible for funding. (See Section VI for a description 
of the three options for submitting applications.) Non-competitive S+C 
renewals should be submitted by the application deadline.

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    (1) Developing Continuum of Care Systems. The purpose of the 
Continuum of Care Homeless Assistance Programs is to fund projects that 
will fill gaps in locally developed CoC systems to assist homeless 
persons, especially the chronically homeless, to move to self-
sufficiency and permanent housing. The process of developing a CoC 
system to assist homeless persons is part of the community's larger 
effort of developing a Consolidated Plan. For a community to 
successfully address its often complex and interrelated problems, 
including homelessness, the community must marshal its varied 
resources--community and economic development resources, social service 
resources, housing and homeless assistance resources--and use them in a 
coordinated and effective manner. The Consolidated Plan serves as the 
vehicle for a community to comprehensively identify each of its needs 
and to coordinate a plan of action for addressing them.
    In addition to prevention, a CoC system consists of four basic 
components:
    (a) A system of outreach and assessment for determining the needs 
and conditions of an individual or family who is homeless;
    (b) Emergency shelters with appropriate supportive services to help 
ensure that homeless individuals and families receive adequate 
emergency shelter and referral to necessary service providers or 
housing finders;
    (c) Transitional housing with appropriate supportive services to 
help those homeless individuals and families who are not prepared to 
make the transition to permanent housing and independent living; and
    (d) Permanent housing, or permanent supportive housing, to help 
meet the long-term needs of homeless individuals and families.
    A CoC system is developed through a community-wide or region-wide 
process involving nonprofit organizations (including those representing 
persons with disabilities), government agencies, public housing 
authorities, faith-based and other community-based organizations and 
other homeless providers, housing developers and service providers, 
private businesses and business associations, law enforcement agencies, 
funding providers, and homeless or formerly homeless persons. To ensure 
that the CoC system addresses the needs of homeless veterans, it is 
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important that you involve veteran service organizations with specific 
experience in serving homeless veterans. A CoC system should address 
the specific needs of each homeless subpopulation: those experiencing 
chronic homelessness, veterans, persons with serious mental illnesses, 
persons with substance abuse issues, persons with HIV/AIDS, persons 
with co-occurring diagnoses, victims of domestic violence, youth, and 
any others. The term ``co-occurring diagnoses'' may include diagnoses 
of multiple physical disabilities or multiple mental disabilities or a 
combination of these two types.
    Your application is more likely to be given a high score under the 
CoC scoring factors if the application demonstrates the achievement of 
three basic goals:

    [sbull] That you have provided maximum participation by nonprofit 
organizations (including those representing persons with disabilities), 
government agencies, public housing authorities, faith-based and other 
community-based organizations and other homeless providers, housing 
developers and service providers, private businesses and business 
associations, law enforcement agencies, funding providers, and homeless 
or formerly homeless persons.
    [sbull] That you have created, maintained and built upon a 
community-wide inventory of housing and services for homeless families 
and individuals; identified the full spectrum of needs of homeless 
families and individuals; and coordinated efforts to fill gaps between 
the current inventory and existing needs. This coordinated effort must 
appropriately address all aspects of the continuum, especially 
permanent housing.
    [sbull] That you have instituted a CoC-wide strategy to coordinate 
homeless assistance with mainstream health, social services and 
employment programs for which homeless individuals and families may be 
eligible. These programs include Medicaid, Children's Health Insurance 
Program, Temporary Assistance for Needy Families, Food Stamps, and 
services funded through the Mental Health Block Grant and Substance 
Abuse Block Grant, Workforce Investment Act, Welfare-to-Work grant 
program, and Veterans Health Care.
    Should HUD determine, in its sole discretion, that sufficient 
evidence exists to confirm that the entity responsible for convening 
and managing the CoC process in a community has failed to follow 
locally established or accepted procedures governing the conduct of 
that process or has failed to provide for a fair process, including a 
project priority selection process that gives equal consideration to 
projects proposed by nonprofit organizations, HUD reserves the 
authority to impose sanctions up to and including a prohibition on that 
entity and the individuals comprising that entity from participating in 
that capacity in the future. In making this determination, HUD will 
consider as evidence court proceedings and decisions, or the 
determinations of other independent and impartial review bodies. This 
authority cannot be exercised until after a description of procedural 
safeguards, including an opportunity for comment and appeal, and the 
specific process and procedures for imposing a prohibition or 
debarment, have been published in the Federal Register.
    In deciding what geographic area you will cover in your CoC 
strategy, you should be aware that the single most important factor in 
being awarded funding under this competition will be the strength of 
your CoC strategy when measured against the CoC rating factors 
described in this program section of the SuperNOFA. When you determine 
what jurisdictions to include in your CoC strategy area, include only 
those jurisdictions that are involved in the development and 
implementation of the CoC strategy.
    The more jurisdictions you include in the CoC strategy area, the 
larger the pro rata need share that will be allocated to the strategy 
area (as described in Section V(A)(5) of this program section of the 
SuperNOFA). However, it would be a mistake to include jurisdictions 
that are not fully involved in the development and implementation of 
the CoC strategy since this would adversely affect the CoC score. If 
you are a rural county, you may wish to consider working with larger 
groups of contiguous counties to develop a region-wide or multi-county 
CoC strategy covering the combined service areas of these counties.
    Since the basic concept of a CoC strategy is to create a single, 
coordinated, inclusive homeless assistance system for an area, the 
areas covered by CoC strategies should not overlap. If the geography 
included in your CoC strategy geographically overlaps to the extent 
that it competes with another application, projects within the CoC 
application that receive the highest CoC score will be eligible for up 
to 40 Need points. Projects in the competing CoC application with the 
lower CoC score will be eligible for only 10 Need points. In no case 
will the same geographical area be used more than one time in assigning 
Need points. The local HUD Field Office can help you determine if any 
of the areas proposed for inclusion by your CoC system is also likely 
to be claimed under another CoC system in this competition.
    (2) Prioritizing. In HUD's view, project priority decisions are 
best made through a local process, which includes nonprofit 
organizations. Again this year, you must list all projects proposed for 
funding in priority order from the highest priority to the lowest, and 
indicate the applicant, project sponsor, and term for each project. 
Generally, this priority order will mean, for example, that if HUD has 
funds available only to award 8 of 10 proposed projects, then it will 
award funding to the first eight eligible projects listed, except as 
may be necessary to achieve the 30 percent overall permanent housing 
requirement--in which case higher priority non-permanent housing 
projects may be de-selected to fund lower priority permanent housing 
projects. Since you are now able to closely calculate your Continuum of 
Care's total pro rata need amount using information provided to you 
from HUD, and now that you no longer need to carry the large cost 
burden imposed by Shelter Plus Care five-year renewals, the tiering of 
projects (splitting into two or more projects by year or by units) on 
your priority list is not permitted.
    To promote permanent housing, a special incentive is being provided 
to CoC systems that place an eligible, new permanent housing project in 
the number one priority slot on the priority list. The only eligible 
activities that will be counted toward the incentive for the number one 
priority project are housing activities and for SHP, administration. 
For the SHP program, housing activities include acquisition, new 
construction, rehabilitation, leasing of housing and operating costs 
for housing. Because S+C and SRO provide only rental assistance, they 
are by definition housing activities and are eligible as well. See 
Section V(A)(5)(b) of this program section of the SuperNOFA for a 
description of this incentive.
    HUD will use this priority list to award up to 40 points per 
project under the ``Need'' scoring factors. Higher priority projects 
will receive more points under Need than lower priority projects. A 
project priority chart is included in the application kit and you 
should complete and submit it. If you do not submit clear project 
priority designations for the continuum, or if HUD, at its sole 
discretion, cannot determine priority designations, then HUD will give 
all projects the lowest score for Need.

[[Page 21584]]

    (3) Project renewals. If your SHP or S+C grant will be expiring in 
calendar year 2004, or if your S+C Program grant has been extended 
beyond its original five-year term and is projected to run out of funds 
in FY 2004, you must apply under this CoC program section of the 
SuperNOFA to get continued funding.
    Your local needs analysis process must consider the need to 
continue funding for projects expiring in calendar year 2004. HUD will 
not fund competitive renewals out of order on the priority list except 
as may be necessary to achieve the 30 percent overall permanent housing 
requirement. HUD reserves the authority to use FY 2004 funds, if 
available, to conditionally select for one year of funding lower-rated 
eligible SHP renewal projects that are assigned 40 need points in 
either a ``consolidated'' or ``associated'' CoC application receiving 
at least 20 points under the CoC scoring factor that would not 
otherwise receive funding for these projects.
    It is important that SHP renewals and S+C non-competitive renewals 
meet minimum project eligibility and capacity standards identified in 
this program section of the SuperNOFA or they will be rejected from 
consideration for either competitive or non-competitive funding.
    For the renewal of an SHP project, you may request funding for one 
(1), two (2) or three (3) years. The total amount of the request cannot 
exceed the average yearly amount received in total for leasing, 
supportive services, and/or operations for the grant being renewed, 
plus up to five percent for administration.
    For the renewal of an S+C project, including S+C SROs, the grant 
term will be one (1) year, as specified by Congress. For the renewal of 
S+C rental assistance that is Tenant-based (TRA), Sponsor-based (SRA) 
or Project-based (PRA), you may request up to the amount determined by 
multiplying the number of units under lease at the time of your 
application for renewal funding by the applicable current Fair Market 
Rent(s) by 12 months, except that for S+C grants having been awarded 
one year of renewal funding in 2002, the number of units requested for 
renewal this year may not exceed the number of units funded in 2002. 
While full funding of existing grants may be requested, there is no 
guarantee that the entire amount will be awarded. As is the case with 
SHP, HUD will recapture S+C grant funds remaining unspent at the end of 
the previous grant period when it renews a grant. The one-year term of 
non-competitively awarded S+C renewal projects may not be extended.
    The renewal of S+C SROs will also be non-competitively awarded in 
this application process. The process for determining renewal funding 
amounts for S+C SROs, however, is substantially similar to the Section 
8 Mod Rehab SRO program and is described in the application kit.
    This program section of the SuperNOFA is not applicable to the 
renewal of funding under the Section 8 Mod Rehab SRO program. The 
renewal of expiring SRO projects is not part of the competitive 
SuperNOFA process. Rather, expiring SROs will be identified at the 
beginning of the applicable year by the public housing authority and 
HUD field office. One-year renewal funds will be provided by HUD under 
a separate, non-competitive process. For further guidance on Section 8 
Mod Rehab SRO renewals, please contact your local HUD Field Office.
    As a project applicant, you are eligible to apply for renewal of a 
grant only if you have executed a grant agreement for the project 
directly with HUD. If you are a project sponsor or subrecipient who has 
not signed such an agreement, you are not eligible to apply for renewal 
of these projects. HUD will reject applications for renewal submitted 
by ineligible applicants. If you have questions about your eligibility 
to apply for project renewal, contact the local HUD field office. To be 
considered an applicant when applying as part of a ``consolidated'' 
application, you must be an eligible applicant for the program for 
which you are applying, and you must submit an original, signed Form 
HUD-424 and the necessary certifications and assurances. (See Section 
VI for a description of the three options for submitting an 
application.) Only public housing authorities and private nonprofits 
are eligible applicants for the Section 8 Mod Rehab Single Room 
Occupancy SRO program. If you are a unit of general local government 
acting as an applicant for a consolidated application and plan to 
include a request for Section 8 SRO funds, you must have a public 
housing authority or nonprofit listed as the Section 8 SRO applicant 
and they must submit a signed Form HUD-424, along with all necessary 
certifications and assurances applicable to the Section 8 SRO project.
    (B) Eligible Applicants. See Appendix A.
    (C) Eligible Activities. See Appendix A.

IV. Program Requirements

    (A) Statutory and Regulatory Requirements. If your project is 
selected for funding as a result of the competition, you will be 
required to coordinate and integrate your homeless program with other 
mainstream health, social services, and employment programs for which 
homeless populations may be eligible, including Medicaid, 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 and Veterans Health Care. 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. While the state 
or local governmental entity having jurisdiction in the area of the 
Continuum's application has the formal responsibility to enact the 
discharge policy, the Continuum is expected to actively involve itself 
in the planning and implementation of the discharge policy. Starting in 
2003, the effort of a CoC in this area will be rated in Exhibit 1 of 
the application. 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.
    (B) Program specific requirements follow:
    (1) SRO Program. As an applicant, you need to know that the 
following limitations apply to the Section 8 SRO program:
    [sbull] Under section 8(e)(2) of the United States Housing Act of 
1937, no single project may contain more than 100 assisted units;
    [sbull] Under 24 CFR 882.802, applicants that are private nonprofit 
organizations must subcontract with a Public Housing Authority to 
administer the SRO assistance;
    [sbull] Under section 8(e)(2) of the United States Housing Act of 
1937 and 24 CFR 882.802, rehabilitation must involve a minimum 
expenditure of $3,000 for a unit, including its prorated share of work 
to be accomplished on common areas or systems, to upgrade conditions to 
comply with the Housing Quality Standards.

[[Page 21585]]

    [sbull] Under section 441(e) of the McKinney-Vento Act and 24 CFR 
882.805(d)(1), HUD publishes the SRO per unit rehabilitation cost limit 
each year to take into account changes in construction costs. This cost 
limitation applies to rehabilitation that is compensated for in a 
Housing Assistance Payments Contract. For purposes of Fiscal Year 2003 
funding, the cost limitation is raised from $18,500 to $19,000 per unit 
to take into account increases in construction costs during the past 
12-month period.
    [sbull] The SRO Program is subject to the Federal labor standards 
provisions at 24 CFR part 882, subpart H.
    [sbull] Individuals assisted through the SRO Program must meet the 
definition of homeless individual found at section 103 of the McKinney-
Vento Act.
    (2) Shelter Plus Care/ SRO Component. With regard to the SRO 
component of the Shelter Plus Care program, if you are a State or a 
unit of general local government, you must subcontract with a Public 
Housing Authority to administer the Shelter Plus Care assistance. Also 
with regard to this component, no single project may contain more than 
100 units.
    (3) Supportive Housing Program. Please be advised that 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). HUD will consider States 
or units of general local government that pass on at least 50 percent 
of the administrative funds made available under the grant as having 
met this requirement. This requirement does not apply to either the SRO 
Program, since no administrative funds are provided as part of the 
grant, or to the S+C Program, since paying the costs associated with 
the administration of these grants is ineligible by regulation.
    (4) HUD will require recordation of a HUD-approved use and 
repayment covenant (a form may be obtained from your field office) for 
all grants of funds for acquisition, rehabilitation or new 
construction. The covenant will enforce the use and repayment 
requirements found at section 423(b)(1) and (c) of the McKinney Act.
    (C) Match. You must match Supportive Housing Program funds provided 
for acquisition, rehabilitation, and new construction with an equal 
amount of funds from other sources. For operating costs, since by law 
SHP can pay no more than 75% of the total operating budget for 
supportive housing, you must provide at least 25% of the total annual 
operating costs. In addition, for all SHP funding for supportive 
services and Homeless Management Information Systems (HMIS) you must 
provide a 25% cash match. The cash source may be you, the Federal 
Government, State and local governments, or private resources. You must 
match rental assistance provided through the Shelter Plus Care Program 
in the aggregate with supportive services.
    (D) Timeliness Standards. As an applicant, you are expected to 
initiate your approved projects promptly in accordance with Section II 
of this NOFA. In addition, HUD will take action if you fail to satisfy 
the following timeliness standards:
    (1) Supportive Housing Program
    [sbull] HUD will deselect your award if you do not demonstrate site 
control within one (1) year of the date of your grant award letter, as 
required by the McKinney-Vento Act (see 42 U.S.C. 11386(a)(3)) and 
implemented in program regulations at 24 CFR 583.320(a).
    [sbull] HUD may de-obligate SHP funds if the following additional 
timeliness standards are not met:

--You must begin construction activities within eighteen (18) months of 
the date of HUD's grant award letter and complete them within thirty-
six (36) months after that notification.
--For activities that cannot begin until construction activities are 
completed, such as supportive service or operating activities that will 
be conducted within the building being rehabilitated or newly 
constructed, you must begin these activities within three (3) months 
after you complete construction.
--You must begin all activities that may proceed independent of 
construction activities within twelve (12) months of the date of HUD's 
grant award letter.

    (2) Shelter Plus Care Program Components Except SRO Component. HUD 
may de-obligate S+C funds if you do not meet the following timeliness 
standards:
    [sbull] For Tenant-based Rental Assistance, for Sponsor-based 
Rental Assistance, and for Project-based Rental Assistance without 
rehabilitation, you must start the rental assistance within twelve (12) 
months of the date of HUD's grant award letter.
    [sbull] For Project-based Rental Assistance with rehabilitation, 
you must complete the rehabilitation within twelve (12) months of the 
date of HUD's grant award letter.
    (3) SRO Program and SRO Component of the Shelter Plus Care Program.
    For projects carried out under the SRO program and the SRO 
component of the S+C program, the rehabilitation work must be completed 
and the Housing Assistance Payments contract executed within twelve 
(12) months of execution of the Annual Contributions Contract. HUD may 
reduce the number of units or the amount of the annual contribution 
commitment if, in HUD's determination, the Public Housing Authority 
fails to demonstrate a good faith effort to adhere to this schedule.

V. Application Selection Process

    (A) Review, Rating and Conditional Selection. HUD will use the same 
review, rating, and conditional selection process for all three 
programs (SHP, S+C and SRO). The standard factors for award identified 
in the General Section of this SuperNOFA have been modified in this 
program section as described below. Only the factors described in this 
program section--Continuum of Care and Need--will be used to assign 
points. To review and rate applications, HUD may establish panels. 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. Two types of reviews will be conducted. 
Paragraphs (1) and (2) below describe threshold reviews and paragraphs 
(3) and (4) describe factors--Continuum of Care and Need--that will be 
used to assign points. Up to 100 points will be assigned using these 
factors.
    (1) Applicant and sponsor eligibility and capacity. HUD will review 
your capacity as the applicant and project sponsor to ensure the 
eligibility and capacity standards in this section are met. If HUD 
determines these standards are not met, the project will be rejected 
from the competition. The eligibility and capacity standards are:
    [sbull] You must be eligible to apply for the specific program;
    [sbull] You must demonstrate ability to carry out the project(s). 
With respect to each proposed project, this means that, in addition to 
knowledge of and experience with homelessness in general, the 
organization carrying out the project, its employees, or its partners, 
must have the necessary experience and knowledge to carry out the 
specific activities proposed, such as housing development, housing 
management, and service delivery;

[[Page 21586]]

    [sbull] If you or the project sponsors are current or past 
recipients of assistance under a HUD McKinney-Vento Act program, there 
must have been no delay in meeting applicable program timeliness 
standards unless HUD determines the delay in project implementation is 
beyond your or the project sponsor's control, no unresolved HUD 
finding, or no outstanding audit finding of a material nature regarding 
the administration of the program; and
    [sbull] You and the project sponsors must be in compliance with 
applicable civil rights laws and Executive Orders, and must meet the 
threshold requirements of Section V of the General Section of the 
SuperNOFA.
    (2) Project eligibility. HUD will review projects to determine if 
they meet the following eligibility standards. If HUD determines the 
following standards are not met by a specific project or activity, the 
project or activity will be rejected from the competition.
    [sbull] The population to be served must meet the eligibility 
requirements of the specific program as described in the program 
regulations and you must provide evidence of eligibility specified in 
the application kit. The application must clearly establish eligibility 
pertaining to homelessness and disability status.
    [sbull] Projects that involve rehabilitation or new construction 
must meet the accessibility requirements of Section 504 of the 
Rehabilitation Act of 1973, the design and construction requirements of 
the Fair Housing Act and the accessibility requirements of the 
Americans with Disabilities Act, as applicable.
    The project must be cost-effective in HUD's opinion, including 
costs associated with construction, operations and supportive services 
with such costs not deviating substantially from the norm in that 
locale for the type of structure or kind of activity.
    [sbull] For the Section 8 SRO program, only individuals meeting 
HUD's definition of homeless are eligible for assistance. Therefore, 
any individual occupying a unit at the time of application is not 
eligible for the SRO program and upon returning after having vacated 
their unit during the rehabilitation period is not eligible to receive 
rental assistance under the SRO Program since they do not meet the 
McKinney-Vento Act definition of homeless individual.
    [sbull] For those projects proposed under the SHP innovative 
category: Whether or not a project is a considered innovative will be 
determined on the basis that the particular approach proposed is new 
and can be replicated.
    [sbull] Applicant agrees to participate in a local HMIS system when 
implemented. Standards for participation in an HMIS will soon be 
published by HUD.
    (3) Project quality. HUD will review projects to determine if they 
meet the following quality standards. The housing and services proposed 
must be appropriate to the needs of the persons to be served. HUD may 
find a project to be inappropriate if:
    [sbull] The type, scale and general location of the housing or 
services do not fit the needs of the proposed participants. A S+C or 
SHP project renewal will be considered as having met this requirement 
through its previously approved grant application unless information to 
the contrary is received.
    [sbull] A specific plan for ensuring that clients will be assisted 
to obtain the benefits of the mainstream health, social service, and 
employment programs for which they are eligible is not provided.
    [sbull] The description of the project does not show how 
participants will be helped to access permanent housing and achieve 
self-sufficiency. A S+C project renewal will be considered as having 
met this requirement through its previously approved grant application.
    [sbull] Renewal projects do not evidence satisfactory performance 
for their existing grant in HUD's opinion based upon the substantial 
achievement of their program goals as reflected in their most recent 
Annual Progress Report. (New projects funded for one year in 2001 are 
not subject to this requirement.)
    [sbull] Renewal projects do not evidence that they have assisted 
clients to obtain the benefits of the mainstream health, social 
service, and employment programs for which they were eligible as 
evidenced in their most recent Annual Progress Report.
    [sbull] An applicant that proposes a new project does not evidence 
satisfactory performance for their existing or prior grants based upon 
the substantial achievement of their program goals as reflected in 
their most recent Annual Progress Report.
    (4) Continuum of Care. HUD will award up to 60 points as follows:
    (a) Process and Strategy. HUD will award up to 20 points based on 
the extent to which your application demonstrates:
    [sbull] The existence of a coordinated and inclusive community 
process, including organizational structure(s), for developing and 
implementing a CoC strategy which includes nonprofit organizations 
(such as veterans service organizations, organizations representing 
persons with disabilities, faith-based and other community-based 
organizations, and other groups serving homeless persons), State and 
local governmental agencies, public housing authorities, housing 
developers and service providers, law enforcement, hospital and medical 
entities, funding providers, local businesses and business 
associations, and homeless or formerly homeless persons; and
    [sbull] That a well-defined and comprehensive strategy has been 
developed which addresses the components of a CoC system (i.e., 
prevention, outreach, intake, and assessment; emergency shelter; 
transitional housing; permanent and permanent supportive housing) and 
that strategy has been designed to serve all homeless subpopulations in 
the community (e.g., seriously mentally ill, persons with multiple 
diagnoses, veterans, persons with HIV/AIDS), including those persons 
living in emergency shelters, supportive housing for homeless persons, 
or in places not designed for, or ordinarily used as, a regular 
sleeping accommodation for human beings.
    The CoC's statement on process and strategy must also include the 
following:
    A description of how the Continuum will work with the appropriate 
local government entity to develop and implement a discharge policy for 
persons leaving 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; 
and a description of the CoC's strategy and schedule for implementing 
an HMIS and its progress to date.
    (b) Gaps and Priorities. HUD will award up to 15 points based on 
the extent to which your application:
    (i) Describes the gap analysis performed, uses reliable information 
and sources that are presented completely and accurately; and
    (ii) Proposes projects that are not inconsistent with the gaps 
analysis described in the CoC strategy, describes a fair project 
selection process, explains how gaps identified through the analysis 
are being addressed, and correctly completes the priority chart.
    When HUD reviews a community's CoC to determine the points to 
assign, HUD will consider whether the community took its renewal needs 
into account in preparing its project priority list. (See discussion on 
renewals in Section III(A)(3) of this NOFA.)
    (c) Supplemental Resources. HUD will award up to 15 points based on 
the extent to which your application incorporates mainstream resources 
and

[[Page 21587]]

demonstrates leveraging of funds requested under this program section 
of the SuperNOFA with other resources, including private, other public, 
and mainstream services and housing programs. To achieve the highest 
rating for this factor, applicants must evidence explicit Continuum-
wide strategies to coordinate homeless assistance with mainstream 
health, social services and employment programs for which homeless 
populations may be eligible, and to use those benefits as appropriate 
and practicable to help offset supportive service costs of the programs 
that would otherwise be paid for with HUD funding. These include 
Medicaid, 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, the Welfare-to-Work grant program, and Veterans Health 
Care. To the extent that such mainstream benefits supplement, and 
ideally reduce, HUD's coverage of supportive service costs, greater 
resources will be available for housing.
    (d) Emphasis on housing. HUD will award up to 10 points based upon 
the relationship between funds requested for housing activities and 
funds requested for supportive service activities among projects 
assigned 40 need points (excluding S+C renewals). Points will be 
awarded on a sliding scale with the Continuums with the highest 
percentage of approvable requests for funds for housing activities 
receiving the highest points. HUD will count as housing activity all 
approvable funds for rental assistance and approvable funds for 
acquisition, rehabilitation, construction, leasing and operations when 
used in connection with housing. HMIS costs will be excluded from this 
calculation as either a housing or supportive service cost.
    (5) Need. HUD will award up to 40 points for need. There is a 
three-step approach to determining the need scores to be awarded to 
projects:
    (a) Determining relative need: To determine the homeless assistance 
need of a particular jurisdiction, HUD will use nationally available 
data, including the following factors as used in the Emergency Shelter 
Grants program: data on poverty, housing overcrowding, population, age 
of housing, and growth lag. Applying those factors to a particular 
jurisdiction provides an estimate of the relative need index for that 
jurisdiction compared to other jurisdictions applying for assistance 
under this program section of the SuperNOFA.
    (b) Applying relative need: HUD will then apply that relative need 
index to the total amount of funding estimated to be competitively 
available under this program section of the SuperNOFA to determine a 
jurisdiction's pro rata need. However, in order to promote permanent 
housing for the homeless, if a CoC's number one priority project 
qualifies as an eligible, new permanent housing project, then the full 
amount of that project's housing eligible activities, up to the lesser 
of 100 percent of the CoC's preliminary pro rata need or $750,000, will 
be added to the final pro rata need amount for the Continuum. For this 
purpose, HUD will consider the same housing activities identified in 
Section D above as counting toward the permanent housing bonus. HUD 
also reserves the right to adjust pro rata need, if necessary, to 
address SHP project renewals.
    (c) Awarding need points to projects: Once the pro rata need is 
established, it is applied against the priority project list in the 
application. Starting from the highest priority project, HUD proceeds 
down the list to award need points to each project. An eligible project 
will receive the full 40 points for need if at least one half of its 
requested amount falls within the pro rata need amount for that CoC. 
Thereafter, HUD proceeds further down the priority project list and 
awards 15 points for need to each project if at least one half of its 
requested amount falls within the ``second level'' of pro rata need 
amount for that CoC. The ``second level'' is the amount between the pro 
rata need and twice the pro rata need for theCoC. Remaining projects 
each receive 10 points. If projects are not prioritized for the 
Continuum, then all projects will receive 10 points for Need.
    In the case of competing CoC applications from a single 
jurisdiction or service area, projects in the application that received 
the highest score out of the possible 60 points for CoC are eligible 
for up to 40 points under Need. Projects in the competing applications 
with lower CoC scores are eligible for only 10 points under Need.
    (6) Ranking. HUD will add the score for CoC to the Need score to 
obtain a total score for each project. The projects will then be ranked 
from highest to lowest according to the total combined score.
    (7) Conditional Selection and Adjustments to Funding.
    (a) Conditional Selection. Whether a project is conditionally 
selected, as described in Section V (B) below, will depend on its 
overall ranking compared to others, except that HUD reserves the right 
to select lower rated eligible projects in order to meet the 30 percent 
overall permanent housing requirement. (See Section V (A)(8) for 
additional selection information.)
    When insufficient funds remain to fund all projects in the 
competition having the same total score, HUD will first fund permanent 
housing projects if necessary to achieve the 30 percent overall 
permanent housing requirement. HUD will then break ties among the 
remaining projects with the same total score by comparing scores 
received by the projects for each of the following scoring factors, in 
the order shown: Need, Overall CoC score, CoC Process and Strategy, CoC 
Gaps and Priorities, and CoC Supplemental Resources. The final tie-
breaking factor is the priority number of the competing projects on the 
applicable CoC priority list(s).
    (b) Adjustments to Funding. The Secretary of HUD has determined 
that geographic diversity is appropriate to carrying out homeless 
assistance programs in an effective manner. HUD believes that 
geographic diversity can be achieved best by awarding grants to as many 
CoCs as possible. To this end, in instances where any of the 50 States, 
the District of Columbia, the Commonwealth of Puerto Rico, Guam, the 
Northern Mariana Islands, the Virgin Islands, and American Samoa does 
not have at least one funded COC, HUD reserves the right to fund 
eligible project(s) receiving 40 Need points in the CoC with the 
highest total score in that jurisdiction. To qualify for funding, the 
total score for these first level projects on the CoC priority list 
must be at least 65 points. In the case of two or more CoCs with the 
same total score, HUD will use the tie-breaking rules described above. 
In addition, if the highest priority project passing threshold 
requirements within a CoC fails to meet the criteria for receiving 40 
Need points, HUD reserves the right to reduce the total requested 
amount for that project to allow it to qualify for 40 Need points. 
Finally, if the total amount that would be awarded for first level 
projects in a CoC exceeds the final pro rata need amount for that COC 
by more than $200,000, the lowest priority first level project being 
selected for funding will be reduced to the amount necessary to ensure 
that the total sum being awarded for such projects does not exceed the 
final pro rata need amount by more than $200,000. HUD may otherwise 
adjust funding of applications in accordance with the provisions of 
Section VI(E) of the General Section of the SuperNOFA. In addition, HUD 
reserves the right to ensure that a project that is applying for, and 
eligible for,

[[Page 21588]]

selection under this competition is not awarded funds that duplicate 
activities.
    (8) Additional Selection Considerations. HUD also will apply the 
limitations on funding described below in making conditional 
selections.
    In accordance with the appropriation for homeless assistance grants 
in the Fiscal Year 2003 Appropriation Act for HUD, HUD will use not 
less than 30 percent of the total FY 2003 Homeless Assistance Grants 
appropriation, excluding amounts provided for renewals under the 
Shelter Plus Care Program, to fund projects that meet the definition of 
permanent housing. Projects meeting the definition of permanent housing 
for this purpose are: (1) New Shelter Plus Care projects, (2) Section 8 
SRO projects, and (3) new and renewal projects under the Supportive 
Housing Program that are designated as either permanent housing for 
homeless persons with disabilities or Safe Havens projects having the 
characteristics of permanent housing for homeless persons with 
disabilities, including leases with the program participants, that, in 
addition, have been assigned at least 15 Need points, and which are 
submitted as part of either a ``consolidated'' or ``associated'' 
Continuum of Care application receiving at least 20 points under the 
Continuum of Care scoring factor. However, no Continuum of Care 
application may receive more than 30 percent of its pro rata need, up 
to $3 million, for ``second-level'' permanent housing projects assigned 
15 Need points that are selected for funding under this procedure. (See 
Section V(A)(5)(c) for definition of ``second-level''.) As stated 
above, HUD will award no less than 30 percent of the total FY 2003 
Homeless Assistance Grants appropriation, excluding amounts for Shelter 
Plus Care renewals, for permanent housing projects unless an 
insufficient number of approvable permanent housing projects are 
submitted. In order to meet this permanent housing funding requirement 
and stay within the total funding amount available, initially selected 
Supportive Service Only (SSO) and non-permanent housing projects may 
need to be de-selected to add an adequate number of permanent housing 
projects, even if they are lower scoring housing projects. As a result, 
within a Continuum, higher priority SSO and non-permanent housing 
projects may need to be de-selected to include lower priority permanent 
housing projects. This is because HUD will initially select projects 
(permanent housing, SSO and other non-permanent housing alike) until 
the 30 percent permanent housing requirement is met. Since this will 
likely exceed the total funding amount available for award, HUD will, 
if necessary, first proceed to de-select new SSO projects initially 
selected, starting with lowest scoring new projects and proceeding if 
needed to the lowest scoring new non-permanent housing projects 
initially selected. If the funding line is still exceeded, HUD will 
proceed to de-select SSO and non-permanent housing renewal projects 
until all selected projects are within the funding line.
    In accordance with section 429 of the McKinney-Vento Act, HUD will 
award Supportive Housing funds as follows: not less than 25 percent for 
projects that primarily serve homeless families with children; not less 
than 25 percent for projects that primarily serve homeless persons with 
disabilities; and not less than 10 percent for supportive services not 
provided in conjunction with supportive housing. After projects are 
rated and ranked, based on the factors described above, HUD will 
determine if the conditionally selected projects achieve these minimum 
percentages. If not, HUD will skip higher-ranked projects in order to 
achieve these minimum percentages.
    In accordance with section 463(a) of the McKinney-Vento Act, as 
amended by the Housing and Community Development Act of 1992, at least 
10 percent of Shelter Plus Care funds will be awarded for each of the 
four components of the program: Tenant-based Rental Assistance; 
Sponsor-based Rental Assistance; Project-based Rental Assistance; and 
Section 8 Moderate Rehabilitation of Single Room Occupancy Dwellings 
for Homeless Individuals (provided there are sufficient numbers of 
approvable projects to achieve these percentages). After projects are 
rated and ranked, based on the factors described above, HUD will 
determine if the conditionally selected projects achieve these minimum 
percentages. If necessary, HUD will skip higher-ranked projects in 
order to achieve these minimum percentages.
    In accordance with section 455(b) of the McKinney-Vento Act, no 
more than 10 percent of the assistance made available for Shelter Plus 
Care in any fiscal year may be used for programs located within any one 
unit of general local government. In accordance with section 441(c) of 
the McKinney-Vento Act, no city or urban county may have Section 8 SRO 
projects receiving a total of more than 10 percent of the assistance 
made available under this program. HUD is defining the 10 percent 
availability this fiscal year as $10 million for Shelter Plus Care and 
$10 million for Section 8 SRO. However, if the amount awarded under 
either of these two programs exceeds $100 million, then the amount 
awarded to any one unit of general local government (for purposes of 
the Shelter Plus Care program) or city or urban county (for the 
purposes of the SRO program) could be up to 10 percent of the actual 
total amount awarded for that program.
    Lastly, HUD reserves the right to reduce the amount of a grant if 
necessary to ensure that no more than 10 percent of assistance made 
available under this program section of the SuperNOFA will be awarded 
for projects located within any one unit of general local government or 
within the geographic area covered by any one Continuum of Care. If HUD 
exercises a right it has reserved under this program section of the 
SuperNOFA, that right will be exercised uniformly across all 
applications received in response to this program section of the 
SuperNOFA.
    (B) Action on Conditionally Selected Applications. HUD will notify 
conditionally selected applicants in writing. As necessary, HUD will 
subsequently request them 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 HUD to 
perform an environmental review, where applicable; and such other 
documentation as specified by HUD in writing to the applicant, that 
confirms or clarifies information provided in the application. HUD will 
notify SHP, SRO, S+C and S+C/SRO applicants of the deadline for 
submission of such information. If an applicant is unable to meet any 
conditions for fund award within the specified timeframe, HUD reserves 
the right not to award funds to the applicant, but instead either to 
use them to select the next highest ranked application(s) from the 
original competition for which there are sufficient funds available; or 
to add them to funds available for the next competition for the 
applicable program.
    (C) Applicant Debriefing. See Section VII(E)(2) of the General 
Section of the SuperNOFA.

VI. Application Submission Requirements

    The application kit provides the application materials, including 
Form HUD-424 and certifications, that must be used in applying for 
homeless assistance under this SuperNOFA.

[[Page 21589]]

These application materials substitute for the forms, certifications, 
and assurances listed in Section II(H) of the General Section of the 
SuperNOFA (collectively, the ``standard'' forms).
    In addition to the required narratives, the items that you must 
submit to HUD as part of the application for homeless assistance 
funding are the following:
    (1) 2003 Application Summary Form
    (2) Continuum of Care and Project Exhibits
    (3) Gaps Analysis Form
    (4) Project Priorities Form
    (5) Project Leveraging Form
    (6) HUD-424
    (7) Applicant Certifications
    (8) Consolidated Plan Certification(s)
    The standard forms can be found in Appendix B to the General 
Section of the SuperNOFA. The remaining forms (i.e., excluding such 
items as narratives), referred to as the non-standard forms, can be 
found in the Application Kit.
    The application requires a description of the Continuum of Care 
system and the proposed project(s). To ensure that no applicant is 
afforded an advantage in the rating of the Continuum of Care element 
(described in Section V(A)(4) above), HUD is establishing a limitation 
of 25 pages, excluding required multiple page tables or charts but 
including any attachments, on the length of Exhibit 1 of any 
application submitted in response to this NOFA. HUD will not consider 
the contents of any pages exceeding this limit when rating the 
Continuum of Care element of any application. The application kit also 
contains certifications that the applicant will comply with fair 
housing and civil rights requirements, program regulations, 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. Projects 
funded under this SuperNOFA 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) or the Age Discrimination Act of 1975 (42 U.S.C. 6101).
    There are three options for submitting an application under this 
program section of the SuperNOFA.
    One: A ``Consolidated Application'' is submitted when a 
jurisdiction (or a consortium of jurisdictions) submits a single 
application encompassing a Continuum of Care strategy and containing 
all the projects within that strategy for which funding is being 
requested. Individual projects are contained within the one 
consolidated application. Grant funding may go to one entity which then 
administers all funded projects submitted in the application, or under 
this option, grant funding may go to all or any of the projects 
individually. Your application will specify the grantee for each 
project.
    Two: ``Associated Applications'' are submitted when applicants plan 
and organize a single Continuum of Care strategy that is adopted by 
project sponsors or operators who choose to submit separate 
applications for projects while including the identical Continuum of 
Care strategy. In this case, project funding would go to each 
successful applicant individually and each would be responsible to HUD 
for administering its separate grant.
    Three: A ``Solo Application'' is submitted when an applicant 
applies for a project exclusive of participation in any community-wide 
or region-wide Continuum of Care development process.
    Options one and two are not substantively different and will be 
considered equally competitive. Applicants are advised that projects 
that are not a part of a Continuum of Care strategy will receive few, 
if any, points under the Continuum of Care rating factors.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications (See Section V of the General 
Section).

VIII. Appeals Process

    Applicants may appeal the results of HUD's review and selection 
process if they believe a HUD error has occurred. Appeals must be in 
writing to the Assistant Secretary for Community Planning and 
Development and must state what HUD error the applicant believes has 
occurred.

IX. Environmental, Local Resident Employment, and Relocation 
Requirements

(A) Environmental Requirements

    (1) Finding of No Significant Impact. A Finding of No Significant 
Impact (FONSI) with respect to the environment was made for this 
program section of the SuperNOFA, in accordance with HUD regulations at 
24 CFR part 50 that implement section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4223). The FONSI is 
available for public inspection during regular business hours in the 
Department's Office of the Rules Docket Clerk, Office of General 
Counsel, Room 10276, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410-0500.
    (2) Environmental Reviews. All Continuum of Care assistance is 
subject to the National Environmental Policy Act and applicable related 
Federal environmental authorities. Section 208 of Public Law 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, Continuum of Care 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 
Continuum of Care 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 under the 
Continuum of Care Program is subject to the environmental review 
requirements of 24 CFR 582.230, 583.230, and 882.804(c), as applicable. 
Recipients may not commit or expend any Continuum of Care 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 Continuum of Care 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 (including rental 
assistance) funded through this program section of the SuperNOFA is 
used for housing

[[Page 21590]]

rehabilitation (including reduction and abatement of lead-based paint 
hazards, but excluding routine maintenance, repair, and replacement) or 
housing construction, then it is subject to section 3 of the Housing 
and Urban Rehabilitation Act of 1968, and the implementing regulations 
at 24 CFR part 135. Section 3, as amended, requires that economic 
opportunities generated by certain HUD 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, S+C, and SRO 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 who 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.

X. 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 program 
section of the SuperNOFA for the Supportive Housing Program are subject 
to the program regulations at 24 CFR part 583.
    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 program section of the SuperNOFA for the Shelter Plus Care 
program are subject to the program regulations at 24 CFR part 582.
    The Section 8 Moderate Rehabilitation Program for Single Room 
Occupancy Dwellings for Homeless Individuals (SRO) is authorized by 
section 441 of the McKinney-Vento Act, 42 U.S.C. 11401. Funds made 
available under this NOFA for the SRO program are subject to the 
program regulations at 24 CFR part 882, subpart H.

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Funding Availability for the Housing Opportunities for Persons With 
AIDS (HOPWA) Program

Program Overview

    Purpose of the Program: To provide states and localities with the 
resources and incentives to devise long-term comprehensive strategies 
for meeting the housing and related supportive service needs of persons 
with Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome 
(HIV/AIDS) and their families.
    Available funds. Approximately $28,811,000 in FY 2003 funds is 
available. Funds will be made available under this Program Section in 
the following priority order: (1) Renewal of expiring HOPWA grants 
providing permanent supportive housing as described in Part B: Renewal 
Projects; (2) awards for formula grantees to participate in a Special 
Project of National Significance as described in Part C: Federal 
Collaboration with the Centers for Disease Control and Prevention (CDC) 
to Study the Connection of Housing and HIV; and (3) awards to new and 
continuing projects seeking HOPWA funding, as described under Part D: 
New and Continuing Projects.
    Eligible Applicants. States, units of general local government, and 
nonprofit organizations may apply for HOPWA competitive funding under 
this Program Section. Additional eligibility requirements are outlined 
under each part of this Program Section.
    Application Deadline.
Part B: Project Renewals: June 17, 2003
Part C: Federal Collaboration with the CDC to Study the Connection of 
Housing and HIV: July 9, 2003
Part D: New and Continuing Projects: July 9, 2003
    Match. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following sections of this Program Section. For more information on the 
program itself including eligible uses of funds, see the HOPWA program 
regulations at 24 CFR part 574 and the AIDS Housing Opportunity Act (42 
U.S.C. 12901), which govern any information contained herein.

Part A: General Program Requirements

    The following information provides general guidelines, policies, 
and requirements for applicants applying for HOPWA competitive funding 
under this Program Section. Unless otherwise noted, the following 
provisions apply to applicants of Parts B-D of this Program Section.

I. Available Funding and Additional Resources

    (A) HOPWA FY 2003 Competitive Program. Through this Program 
Section, approximately $28,811,000 in FY 2003 funds is being made 
available for HOPWA awards. Additional funds may be awarded if funds 
are recaptured, deobligated, appropriated or otherwise made available 
during the fiscal year. Priority funding will be given to applicants 
applying, first, for renewal of expiring permanent supportive housing 
grants as outlined under Part B of this Program Section. Secondly, if 
funds remain, HUD will fund applicants for projects working on the 
collaborative study between HUD and the CDC on the connection of 
housing and HIV prevention and the progression of HIV Disease as 
outlined under Part C of this Program Section. Lastly, if funds remain, 
HUD will award funds for continuing or new projects, as outlined under 
Part D of this Program Section.
    (B) Availability of FY 2003 Formula Allocations. You should 
consider seeking funds from the formula component of the HOPWA program 
and from other resources. Ninety (90) percent of the HOPWA program is 
allocated by formula to recipient states and cities. In FY2003, a total 
of $259,304,000 was allocated by formula to the qualifying cities for 
75 eligible metropolitan statistical areas (EMSAs) and to states for 36 
eligible areas outside of EMSAs. All HOPWA formula grants are available 
as part of the jurisdiction's Consolidated Plan. Information on 
consolidated planning, including HOPWA formula programs and 
descriptions of previously awarded competitive grants, is available on 
the HUD Web site at http://www.hud.gov/grants.
    (C) Availability of National HOPWA Technical Assistance. To apply 
for HOPWA technical assistance funds, submit an application for funds 
under the Community Development Technical Assistance (CDTA) part of 
this notice, which is published elsewhere in this SuperNOFA. The CDTA 
notice makes available up to $1,987,000 in FY 2003 funds in HOPWA funds 
to organizations for technical assistance support on a national or 
regional basis.

II. Application, Further Information, and Technical Assistance

    (A) Where to Send Your Application. For this Program Section, see 
the General Section of this SuperNOFA for specific procedures governing 
the form of application submission (e.g., mailed applications, express 
mail, or overnight delivery).
    (B) Address for Submitting Applications. Your completed application 
consists of an original signed application and two copies. Submit the 
original application and one copy to: Department of Housing and Urban 
Development, Attn: HOPWA, 451 Seventh Street, SW., Room 7251, 
Washington, DC 20410. Submit the additional one (1) copy of your 
application to the area CPD Field Office or Offices that serve the area 
in which activities are proposed. For multi-state efforts, you must 
submit the copy of your application to the Field Office that serves 
your main office. The list of addresses for area CPD Field Offices is 
provided as Appendix B of this Program Section of this SuperNOFA. If 
you propose nationwide activities, you must send all copies to the HUD 
Headquarters Office. When submitting your applications, please refer to 
HOPWA, and include your name, mailing address (including zip code), 
facsimile, email, and telephone number (including area code).
    (C) For Applications. All information required to complete and 
return a valid application is included in the General Section and this 
Program Section of the SuperNOFA, including appendices. Copies of the 
General Section, this Program Section, and appendices, including the 
application, are available and may be downloaded from HUD's website at 
www.hud.gov. If you are unable to download any of the materials in this 
SuperNOFA, Program Section and its appendixes, please call the 
SuperNOFA Information Center at 1-800-HUD-8929 (1-800-483-8929) for a 
copy of the General Section and this Program Section of the SuperNOFA. 
Persons with hearing or speech challenges may access the above number 
via TTY (text telephone) by calling the Federal Information Relay 
Service at 1-800-877-8339 (this is a toll-free number).
    (D) For Further Information and Technical Assistance (TA). You may 
call the HUD Field Office serving your area, at the telephone number 
shown in Appendix B, or you may contact the Office of HIV/AIDS Housing, 
HUD at (202) 708-1934. HUD staff may assist with program questions, but 
may not assist in preparing your application. Persons with hearing or 
speech challenges may access the above number via TTY (text telephone) 
by calling the Federal Information Relay Service at 1-800-877-8339 
(this is a toll-free number).

[[Page 21742]]

    (E) Seeking Technical Assistance (TA) in Developing a HOPWA 
Application. HOPWA TA providers may not provide technical assistance in 
the drafting of responses to HUD's NOFA due to the unfair advantage 
such assistance gives to one organization over another. If HUD 
determines that HOPWA technical assistance has been used to draft a 
HOPWA application, HUD reserves that right to reject the application 
for funding. If, after your application has been selected for an award, 
HUD determines that HOPWA technical assistance was used to draft your 
application, the award will be withdrawn and you may be liable for any 
funds already spent.
    (F) Satellite Broadcast. HUD will hold information broadcasts via 
satellite for potential applicants to learn more about the program and 
preparation of the application. For more information about the date and 
time of the broadcast, you should consult the HUD Web site at 
www.hud.gov/grants.

III. Applicable Requirements of the General Section of the SuperNOFA

    The provisions outlined within the General Section of the SuperNOFA 
apply to the HOPWA program unless otherwise stated within this Program 
Section. Specifically, you are encouraged to review:
    (A) Section V: Requirements and Procedures Applicable to All 
Programs. The threshold requirements in the General Section of the 
SuperNOFA apply to the HOPWA program and applicants must meet all 
threshold requirements to receive funding.
    (B) Section II: HUD's FY 2003 SuperNOFA Policy Priorities. HUD has 
identified policy priorities that applicants are encouraged to address 
in implementing programs funded under this notice. Applicable policy 
priorities for HOPWA applicants seeking funding under Part D of this 
Program Section are outlined in Part D, Section III: Policy Priorities. 
Applicants seeking funding under Parts B and C of this Program Section 
are not required to address HUD's policy priorities.
    (C) Section XI: HUD Reform Act. The provisions of the HUD Reform 
Act of 1989 that apply to this announcement are explained in the 
General Section of the FY 2003 SuperNOFA at Section XI (A).

IV. Corrections to Deficient Applications

    See Section VIII: Corrections to Deficient Applications of the 
General Section of the SuperNOFA.

V. Award Modifications

    After reviewing each application, HUD reserves the right to take 
each of the following actions:
    (A) Make Award Adjustments. HUD reserves the right to make award 
adjustments as outlined in Section VI (F), Adjustments to Funding, of 
the General Section of this SuperNOFA.
    (B) Add Project Outcome Funding. HUD reserves the right to ensure 
that each grant receives up to $50,000 for collection of data on 
project outcomes. If an applicant fails to request this level of 
funding for this activity, HUD reserves the right to add such funding 
to the selected application.
    (C) Not to Duplicate Continuum of Care Projects. HUD reserves the 
right to ensure that activities funded under the FY 2003 Continuum of 
Care will not duplicate new or continuing activities funded under this 
competition.

VI. Statutory Certifications

    HOPWA applicants are not required to provide the forms, 
certifications, and assurances listed in the General Section of the 
SuperNOFA unless stated below. The following certifications must be 
included with your application. All certifications and forms, except 
those found in the General Section of the SuperNOFA, are included in 
the appendixes to the HOPWA section of the NOFA.

(A) Certifications Found in the General Section of the SuperNOFA

    (1) Consolidated Plan Certification (HUD-2991). Except as stated 
below, you must include a Consolidated Plan certification from the 
applicable state or local government official responsible for 
submitting the appropriate plan. If your project will be carried out on 
a national basis or will be located on a reservation of an Indian 
tribe, Guam, the Virgin Islands, American Samoa, or the Northern 
Mariana Islands, you are not required to include a Consolidated Plan 
certification with your application. The authorizing official from the 
state or local government must sign this certification.
    (2) Certification of Drug-Free Workplace, Payments to Influence 
Federal Transactions, and Regarding Debarment and Suspension (new HUD 
424B)
    (3) Consistency with the RC/RC/EZ/EC Strategic Plan (HUD-2990)
    (4) Applicant/Recipient Disclosure/Update Report (HUD-2880)
    (5) Certification of Consistency with the Consolidated Plan (HUD-
2991)
    (6) Disclosure of Lobbying Activities (SF-LLL)

(B) HOPWA Certification Found at Appendix D of This Program Section of 
the NOFA

    (1) Fair Housing and Non-discrimination
    (2) Environmental Law and authorities

VII. Program Requirements

    (A) Nonprofit Organization Requirements. To be eligible as grantee 
or project sponsor, you must satisfy the requirements of 24 CFR 574.3. 
Your application must establish both that you are a nonprofit 
organization and that your organizational documents include a purpose 
of significant activities related to providing services or housing to 
persons with HIV/AIDS.
    If you do not qualify as a nonprofit organization, you are not 
eligible to receive funds and serve as the grantee or as a project 
sponsor. However, you may collaborate with eligible nonprofit 
organizations or with a government agency that applies for the grant 
and assist them, for example, in planning for the proposed activities, 
identifying needs in your community and identifying eligible persons 
who will be assisted. In addition, you may do work under contract with 
a grantee for services funded by this grant.
    (1) We will accept as evidence of your nonprofit status:
    (a) A copy of the Internal Revenue Service (IRS) ruling providing 
tax-exempt status under Section 501(c) (3), (4), (6), (7), (9) or (19) 
of the IRS code; or
    (b) A ruling from the Treasury Department of the Commonwealth of 
Puerto Rico granting income tax exemption under section 101 of the 
Income Tax Act of 1954, as amended (13 LPRA 3101); or
    (c) Documentation showing that the applicant is a certified United 
Way agency; or
    (d) All of these:
    (i) A certification by the appropriate official of the jurisdiction 
under whose laws the nonprofit was organized that your organization was 
so organized and is in good standing;
    (ii) A certification from a designated official of the organization 
that no part of the net earnings of the organization inures to the 
benefit of any member, founder, contributor, or individual; that the 
organization has a voluntary board; and that the organization practices 
nondiscrimination in the provision of assistance; and
    (iii) An opinion letter from a CPA that the nonprofit has a 
functioning accounting system that provides for each of these (the 
letter must mention all of them):

[[Page 21743]]

    (1) Accurate, current, and complete disclosure of the financial 
results of each federally funded project;
    (2) Records that identify adequately the source and application of 
funds for federally funded activities;
    (3) Effective control over and accountability for all funds, 
property and other assets;
    (4) Comparison of outlays with budget amounts;
    (5) Written procedures to minimize the time elapsing between the 
transfer of funds to the recipient from the U.S. Treasury and the use 
of funds for program purposes;
    (6) Written procedures for the determining the reasonableness, 
allocability and allowability of costs; and
    (7) Accounting records including cost accounting records that are 
supported by source documentation.
    (2) We will accept as evidence of your purpose, a certified copy of 
the organization's articles of incorporation and by-laws which includes 
in the organization's purposes significant activities related to 
providing services or housing to persons with HIV/AIDS.
    (B) Performance Benchmark Requirements. All grantees receiving 
funds under this Program Section are expected to meet the following 
benchmark requirements. If a selected project does not meet the 
appropriate performance benchmark, HUD reserves the right to cancel or 
withdraw the grant funds.
    (1) Execution of Grant Agreement. Selected applicants must execute 
grant agreements by the earlier of September 25, 2004 or the first 
anniversary of HUD's announcement of the awards. HOPWA grants are 
obligated upon grant execution and the FY 2003 Consolidated 
Appropriations Resolution (``FY 2003 Appropriations Act'') requires HUD 
to obligate funds by September 30, 2004.
    (2) Disbursement of Funds. Grantees receiving awards under this 
Program Section should fully expend their grants no later than three 
years following the effective date of the grant agreement. The National 
Defense Authorization Act for Fiscal Year 1991 requires expenditure of 
all HOPWA funds awarded under the FY 2003 Appropriations Act by 
September 30, 2009. After September 30, 2009, any unexpended funds 
(whether obligated or unobligated) shall be canceled and, thereafter, 
shall not be available for obligation or expenditure for any purpose.
    (3) Site Control Through Acquisition or Lease. If you acquire or 
lease a site, you are required to gain site control within one year 
from the date your selection letter was signed by HUD.
    (4) Rehabilitation or New Construction. If you propose to use HOPWA 
funds for rehabilitation or new construction activities, you must begin 
the rehabilitation or construction within 18 months, all rehabilitation 
or construction work must be complete within 3 years from the date your 
selection letter was signed by HUD.
    (5) Project Operations. If funds are used for operating costs of 
existing housing facilities, these funds must be used within the three 
year use period for the operation of this award and such activities 
must start no later than 12 months from the date your selection letter 
was signed by HUD, and completed within 36 months from this date. If 
funds are to be used for operating costs, in connection with the new 
construction or substantial rehabilitation of housing facilities, the 
amount of funds designated for operating costs must be limited to the 
amount to be used during the portion of the three-year period for which 
the facility will be operational and assisting eligible persons. Delays 
in the project's development activities, such as the planned completion 
of the construction or rehabilitation activities, could result in the 
loss of funds designated for operating costs, if such funds remain in 
excess after the authorized use period for this award. For example, if 
your project expects to take two years to complete the rehabilitation 
of the facility, any operating costs could only be requested for use in 
the remaining one year of the three year operating period for this 
award.
    (6) Six-Month Report. You must provide an initial report to the 
Field Office and HUD Headquarters on the startup of the planned 
activities within six months of your selection. Outline your 
accomplishments and identify any barriers or issues for which the 
Department may provide assistance.
    (C) Program Guidance.
    (1) Program Operating Year. Grants awarded through this Program 
Section must designate the 12-month operating year, which indicates the 
start and end dates of the term of the grant, at the signing of the 
grant agreement. The operating year may begin within four months of the 
signing of the grant agreement or as specified by HUD at the time of 
award. The operating period begins the day when participants begin to 
receive housing or supportive services, or for capital development 
activities at site control or the start of rehabilitation or new 
construction activities. The operating period is a 12-month period for 
which grantees report annual accomplishments. Grantees are required to 
submit annual progress reports to HUD within 90 days following the end 
of each operating year.
    (2) Incorporation of Mainstream Resources. To the extent possible, 
HUD encourages projects to incorporate mainstream resources into their 
project plans to maximize the benefit of requested HOPWA funds. 
Mainstream resources may include private, other public, and mainstream 
services and housing programs that provide benefits to eligible 
persons. Applicants are encouraged to create community wide strategies 
to coordinate assistance to eligible persons through these mainstream 
programs. These mainstream programs include Medicaid, Children's Health 
Insurance Program, Temporary Assistance for Needy Families, Food 
Stamps, and services funded through the Mental Health Block Grant and 
Substance Abuse Block Grant, Workforce Investment Act and the Welfare-
to-Work grant program. Under each part of this Program Section, as an 
applicant, you may be asked to address how your project is 
incorporating mainstream programs to benefit eligible persons.

VIII. Other Requirements

    (A) Environmental Reviews. All HOPWA assistance is subject to the 
National Environmental Policy Act and applicable related federal 
environmental authorities. In accordance with Section 856(h) of the 
AIDS Housing Opportunities Act, environmental reviews for HOPWA 
activities are to be completed by responsible entities (including units 
of general local government, states, Indian tribes, and Alaska Native 
villages) in accordance with 24 CFR part 58. Applicants or grantees 
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 the environmental 
provisions in the HOPWA regulation at 24 CFR 574.510. HOPWA grantees 
and project sponsors may not commit or expend any grant or nonfederal 
funds on project activities until HUD has approved a Request for 
Release of Funds and environmental certification from the responsible 
entity (other than those listed in 24 CFR 58.22(c), 58.34 or 58.35 
(b)). The expenditure or commitment of HOPWA or nonfederal funds for 
such activities prior to this HUD approval may result in the denial of 
assistance for the project under consideration.
    (B) Affirmatively Furthering Fair Housing. See Section V (D) of the

[[Page 21744]]

General Section of the SuperNOFA for the information on how to meet 
this requirement.
    (C) Local Resident Employment (Section 3 Requirements). For grants 
in excess of $200,000, to the extent that grant funds are used for 
housing rehabilitation (including reduction and abatement of lead-based 
paint hazards, but excluding routine maintenance, repair, and 
replacement) or housing construction, 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 requires that economic 
opportunities 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 (also see Section V(E) of the 
General Section of the SuperNOFA).

IX. Authority

    This program is authorized under the AIDS Housing Opportunity Act 
(42 U.S.C. 12901). The regulations for HOPWA are found at 24 CFR part 
574.

Part B. Renewal Projects

    HUD will consider applications under this part that are renewals of 
expiring HOPWA competitive grants whose primary purpose is the 
provision of permanent supportive housing.

I. General Policies on Renewal of Permanent Supportive Housing Grant--
Purpose

    Under the provisions of the FY 2003 Appropriations Act, the 
Secretary is required to renew qualifying expiring contracts for 
permanent supportive housing on a priority basis. Grants funded under 
prior HOPWA competitions that meet the stated eligibility requirements 
below and meet all program requirements will be given priority renewal 
by HUD. Applications will be reviewed on a pass/fail threshold review 
system and are not required to address the departmental policy 
priorities described in the General Section of the SuperNOFA. If you 
have an expiring grant, which is not for permanent supportive housing, 
you may apply for funding under Part D of this Program Section.

II. Eligibility of Applicants and Grants

    To be eligible for priority renewal under this part, you must meet 
all of the following eligibility requirements:
    (A) Eligible Permanent Supportive Housing Grants. To be eligible, 
your project must provide permanent supportive housing to eligible 
persons. Permanent supportive housing is housing in which the eligible 
person has a continuous legal right to remain in the unit and which 
provides the eligible person on-going supportive services through 
qualified providers. HUD will consider a grant to be providing 
permanent supportive housing if 51% or more of HOPWA program activity 
funds are used: (1) To provide permanent housing where on-going 
supportive services are made available through other resources; or (2) 
to provide supportive services where permanent housing is provided 
through other resources. To establish eligibility, provide 
documentation of the following:
    (1) Certification of the Provision of Permanent Housing. You must 
certify that at least 51% of the HOPWA program activity funds awarded 
to your grant were and are being used to provide permanent supportive 
housing to eligible persons. To determine whether your grant meets this 
test, use the Permanent Supportive Housing Worksheet found in Appendix 
A and submit it with your certification. The test is based on the HOPWA 
funded program activity costs approved in the original application or, 
as amended by HUD, excluding administrative costs and project outcome 
funding. To be counted, the grant funds must be used to provide the 
housing or to provide supportive services to eligible persons living in 
permanent housing.
    (2) Documentation of Other Resources. If your project relies on 
other state, local, federal, or private resources to provide the 
permanent housing or supportive services portion of your project, you 
must demonstrate that the other resources will continue to be available 
for that purpose throughout the term of the renewal grant. The 
continuing assistance must have been documented within the original 
application to HUD and be used in conjunction with requested HOPWA 
funds. Evidence of continuing assistance must be provided, as follows:
    (a) Permanent Housing. Permanent housing provided through other 
resources must be documented in the renewal application through a 
leveraging letter. The leveraging letter must outline the amount of 
funds for the housing to be provided, the term the funds will be made 
available, and be signed by the organization providing such housing or 
funding for the housing. See Part D, Section V, Rating Factor 4: 
Leveraging Resources, for acceptable leveraging letter examples.
    (b) Supportive Services. Supportive services provided through other 
resources must be documented through a commitment letter(s), which 
outline(s) the type of support that will be provided to eligible 
persons, the organizations providing such support, and the length of 
time such supportive services will be available. Supportive services 
must be available to eligible persons in permanent housing throughout 
the term of the renewal grant.
    (3) Evidence of Permanent Client Occupancy. Except for funds used 
for short-term mortgage, rent and utility payments, you must show 
evidence that the client has a continuous legal right to remain in the 
unit or property and has access to on-going supportive services 
provided through qualified providers. You must include in your 
application a copy of the standard lease form used for residents of the 
project. It must be for a term of at least one year, be renewable by 
the tenant and may only be terminable by the landlord for cause.
    (B) Eligible Expiring Grant. To be eligible, the HOPWA grant must 
be an expiring grant, which is defined as a grant that will not have 
sufficient funds to continue activities until September 30, 2004, if 
not awarded additional federal funds. The applicant must demonstrate to 
HUD that all funds awarded in the grant it seeks to renew will be 
expended within a three-year period (as measured by reimbursements 
filed with HUD under the financial system, PAS). HUD may deobligate any 
amount of HOPWA grants funds that have been renewed on this basis and 
have not been expended within three (3) years from the date of 
obligation.
    (C) Eligible Prior Grants. To be eligible, prior grants must have 
been selected by HUD for funding under HUD's SuperNOFA process in 1999, 
2000, or 2001 and must not have been renewed through a previous 
competition. Grants selected in 1998 were required to operate and 
complete activities before the end of fiscal year 2002. Grants funded 
in 1998 are not eligible for renewal, unless the grantee documents that 
HUD approved a grant extension of the project that would allow for its 
continued operations in the federal Fiscal Year 2003 or 2004.
    (D) Eligibility based on Achieving Measurable Progress. To be 
eligible, prior grants must have operated with measurable progress, 
defined as not evidencing weak performance. Weak performance consists 
of sanctions or unresolved monitoring findings during the active 
competitive period, from the date of publication of this Program 
Section until the selection of applications, or other HUD knowledge of 
unresolved problems. Unresolved problems may include that planned 
activities remain delayed in their

[[Page 21745]]

implementation, a significant number of units are vacant, annual 
progress reports were not filed with HUD by the application due date 
under this Program Section for renewals, or significant citizen 
complaints are unresolved or not responded to with justified reasons. 
Weak performance is also evident if more than 50% of grant funds remain 
unexpended on the first day of the month in which the application due 
date for renewals under this Program Section falls (as measured by 
reimbursements filed with HUD's financial system, PAS).
    (E) Eligible Applicant for Renewals. You are eligible to apply for 
renewal of a prior HOPWA grant only if you have executed a grant 
agreement for the project directly with HUD. Project sponsors are not 
eligible to apply for renewal grants. The application for renewal must 
be submitted by the grantee. HUD will reject applications submitted by 
ineligible applicants. If you have questions about your eligibility to 
apply, contact the local HUD field office.
    (F) Eligible Project Sponsors. The project should also continue 
with the same project sponsors, as documented in the prior HOPWA 
application or amendments to that application as approved by HUD. HUD 
will consider the merits for changing a project sponsor if the new 
sponsor evidences the capacity to enhance project operations or improve 
responsiveness to eligible persons. Such examples for changing a 
project sponsor may be that a new project sponsor has greater capacity 
to conduct program activities or a prior project sponsor is no longer 
in operation or has merged with another entity.
    (G) Ineligible Grants and Projects. You are ineligible if any of 
the following apply:
    (1) Expired Grants. Your grant expired in federal Fiscal Year 2002 
or earlier, i.e. all funds were expended (as measured by PAS) by 
September 30, 2002, or only a residual amount that is less than one 
percent of the amount of the prior grant remains, are not eligible to 
apply for renewal funding under this notice.
    (2) Prior Grants. Your grant was awarded under the 1992-1996 HOPWA 
competitions. These grants were required to complete activities within 
three years of executing the grant agreement.
    (3) Non-Permanent Supportive Housing Projects. Projects primarily 
offering short-term, transitional, or emergency housing options are not 
eligible. Applicants with existing HOPWA projects that do not qualify 
for priority renewal under this part, may apply for continuing funding 
under Part D: New and Continuing Projects section of this Program 
Section.

III. Renewable Activities and Amount of Renewals

    Eligible grants will receive renewal funding on approved eligible 
activities, as follows:
    (A) Eligible Renewal Activities. The activities to be renewed must 
be on-going forms of support, such as rental assistance, short-term 
rent, mortgage and utility payments, operating costs for housing 
facilities, leasing of housing facilities, supportive service costs, 
housing information services, resource identification/technical 
assistance for community residences activities and administrative 
costs. Additionally, applicants must request up to $50,000 in project 
outcome funding as a part of their renewal budget request.
    (B) Ineligible Renewal Activities. Funds for acquisition, new 
construction or for rehabilitation costs will not be renewed. These 
capital development activities are not on-going or available for 
additional sites. If you wish to undertake additional capital 
development activities or to add funding for new activities, such as 
operating costs and services, you must apply under Part D.
    (C) Amount of Renewals. Renewal projects may only request renewal 
funds for continuing a previously approved project at the same level of 
housing and/or services provided in the previous grant. Proposals to 
expand or significantly alter a funded-project must apply under Part D 
for the new activities or the expanded part of the project.
    (D) Project and Activity Funding. Renewal funding must not exceed 
120% of the amount originally awarded for an activity, but may be less 
than the amount originally awarded, including any amendments affecting 
this amount that were approved by HUD prior to the publication of this 
Program Section. However, the total activity costs may not exceed 
$1,200,000. The limits on administrative costs, three (3) percent for 
grantees and seven (7) percent for project sponsors, continue to apply. 
In addition, renewal grantees must add up to $50,000 to the renewal 
award for the purpose of the collection of data on program outcomes.
    (E) Annual Amounts. As an applicant for renewal funding, you must 
specify the annual amount needed to continue each activity and specify 
the number of years, up to three, for your request by completing the 
HOPWA Renewal Budget Form (Appendix A). You should describe your plan 
for continued operations in the Executive Summary section of your 
application, including any significant reduction to your prior award 
level.

IV. Selection Criteria and Process

    (A) Selection Process. To the degree that funds are available, the 
Department will select for funding all renewal requests from applicants 
that meet program requirements and pass a threshold review for a need 
for renewal. In the case that the amount requested for renewal is less 
than the amount available under this notice, HUD will apply the 
remaining funds, first, to applicants under Part C and then, second, 
Part D. If the amount of the request for renewal activities is greater 
than the amount made available by this notice, HUD will select all of 
the approvable applications and allocate awards to each based on a pro 
rata reduction to the amount available under this notice to ensure that 
all eligible and performing renewal projects receive funding that 
allows their continued operation.
    (B) Selection Criteria. HUD will conduct a threshold review of all 
renewal applications based on the following criteria:
    (1) Eligibility. HUD will review your eligibility to apply for 
renewal funding under this program as described above under Part B, 
Section II of this Program Section, Eligibility of Applicants and 
Grants.
    (2) Organizational Capacity. If a new project sponsor is added, HUD 
will review the project sponsor's capacity to conduct program 
activities.
    (3) Provision of Permanent Supportive Housing. HUD will review 
whether your project provides permanent supportive housing.
    (4) Need for Renewal. HUD will review your need for renewal, and 
how this project has operated with measurable progress, as described 
below in the Need for Renewal Narrative.
    (5) Standard Eligibility Threshold Requirements. HUD will also 
review your application to ensure that your project meets the standard 
eligibility threshold requirements as described in Part A, Section III 
(A), above.
    (C) Application Contents. Applicants are requested to submit the 
following information:
    (1) Application for Federal Assistance (Form HUD-424). You should 
complete Items 1 through 23 with the following additions:
    (a) Item 12--The applicable letters are ``A'' for state; ``B, C, or 
D'' for a unit of local government; or ``N'' for Nonprofit;
    (b) Item 14--Enter U.S. Department of Housing and Urban Development 
or HUD if not preprinted;

[[Page 21746]]

    (c) Item 15--Enter 14-241 and the title ``Housing Opportunities for 
Persons With AIDS Program'' or ``HOPWA'' for the Catalog of Federal 
Domestic Assistance;
    (d) Item 20--You must complete the budget on page 2 and the HOPWA 
Renewal Project Budget Form. Please make sure that both the Total 
Amount on page 2 and the ``Total Budget'' section on the HOPWA Renewal 
Project Budget Form are the same. In the event that the total budgets 
are in conflict, HUD will refer to the HOPWA Project Budget form.
    (e) Item 21--Check ``No''.
    (2) Executive Summary and Synopsis. On no more than five (5) double 
spaced pages, please provide an Executive Summary of the renewal 
project, beginning with a two to three sentence synopsis of the focus 
of your project. In the Executive Summary, please provide the name of 
the grantee and any project sponsors, along with contact names, phone 
numbers, and e-mail address.
    (3) Narrative Statements. Your application must include the 
following narrative statements:
    (a) Organizational Capacity Narrative. If a new project sponsor(s) 
is added to the proposal, please describe the capacity of the project 
sponsor(s) to conduct program activities. Please provide this 
information on no more than two (2) double-spaced typed pages. If you 
are adding more than one project sponsor, you may add two (2) 
additional pages per project sponsor. Address the extent to which the 
project sponsor(s) have the organizational resources necessary to 
successfully implement your proposed activities in a timely manner. HUD 
will review the project sponsor's ability to develop and operate your 
proposed program. With regard to new project sponsor(s), HUD will 
consider:
    (i) Past experience and knowledge in serving persons with HIV/AIDS 
and their families;
    (ii) Past experience and knowledge in programs similar to those 
proposed in your application;
    (iii) Experience and knowledge in monitoring and evaluating program 
performance and disseminating information on project outcomes; and
    (iv) Past experience as measured by expenditures and measurable 
progress in achieving the purpose for which funds were provided.
    (b) In reviewing the elements of organizational capacity under 
paragraph (a), immediately above, HUD will consider the extent to which 
your proposal demonstrates:
    (i) The knowledge and experience of the proposed project director 
and staff, including the day-to-day program manager, consultants, and 
contractors in planning and managing the kind of activities for which 
you are requesting funds. The project sponsor will be reviewed in terms 
of recent, relevant, and successful experience of staff to undertake 
eligible program activities, including experience and knowledge in 
serving persons with HIV/AIDS and their families.
    (ii) The project sponsor's experience in managing complex 
interdisciplinary programs, especially those involving housing and 
community development programs directly relevant to the work activities 
proposed and carrying out grant management responsibilities.
    (iii) If the project sponsor received funding in previous years in 
the program area for which you are currently seeking funding, the 
sponsor's past experience will be reviewed in terms of its ability to 
attain demonstrated measurable progress in the implementation of the 
grant award. Measurable progress is defined as:
    (1) Meeting performance benchmarks, as applicable, in program 
development and operation;
    (2) Meeting project goals and objectives, such as, that the number 
of persons assisted was comparable to the number that was planned at 
the time of application;
    (3) Submitting timely performance reports; and
    (4) Expending prior funding as outlined in the prior proposal with 
no outstanding audit or monitoring issues.
    (c) Provision of Permanent Supportive Housing Narrative. On no more 
than three (3) double-spaced pages, demonstrate how your project 
provides permanent supportive housing through HOPWA and other 
resources. Include the type of assistance and number of housing units 
being provided and a description of the supportive services provided. 
Additionally, your description should outline how HOPWA and other 
funding, if applicable, work together to provide permanent supportive 
housing. In addition, you must provide the following:
    (i) Certification of the Provision of Permanent Housing. A 
certification, in the form provided in Appendix A, that at least 51% of 
the HOPWA funds awarded to the project were and will continue to be 
used to provide permanent supportive housing to eligible persons. To 
determine whether you can make this certification, complete the 
``Permanent Supportive Housing Worksheet'' provided in Appendix A.
    (ii) Documentation of Other Resources. If your project relies on 
other state, local, federal, or private resources to provide the 
housing or supportive services, you must document that such assistance 
will be provided throughout the term of the renewal grant. For 
information on acceptable forms of evidence, see Part B, Section II 
(A)(2).
    (iii) Evidence of Permanent Housing. Except for funds used for 
short-term mortgage, rent and utility payments, you must provide a copy 
of the standard lease used for residents of the project. The lease must 
be for a term of at least one year, be renewable by the tenant and may 
be terminated by the landlord for cause.
    (d) Need for Renewal Narrative. Please address the following on no 
more than three (3) double-spaced pages:
    (i) Measurable Progress. Please demonstrate the need for renewal 
funding and how this project has operated with measurable progress. 
Measurable progress is defined as not failing or not evidencing weak 
performance in:
    (1) Meeting performance benchmarks, as appropriate, in program 
development and operation;
    (2) Meeting project goals and objectives, such as, that the number 
of persons assisted is comparable to the number that was planned at the 
time of the application;
    (3) Submitting timely performance reports; and
    (4) Expending over 50% of prior funding at the beginning of the 
month for the due date for renewals (as measured by reimbursements 
filed with HUD's financial system, PAS.).
    (ii) Need for Renewal Chart. Additionally, you should complete the 
HOPWA Need for Renewal Chart, which demonstrates that prior grant funds 
will expire by September 30, 2004. You must complete the HOPWA Need for 
Renewal Chart (Appendix A), as described below:

Line 1. Indicate the amount of the prior HOPWA award: ------
Line 2. Indicate the amount expended as of 9-30-02: ------
Line 3. Subtotal: subtract line 2 from line 1: ------
Line 4. Indicate the amount to be expended in FY2003: ------ (By 
September 30, 2003)
Line 5. Indicate the amount to be expended in FY2004: ------ (By 
September 30, 2004)
Line 6. Subtotal: subtract lines 4 and 5 from line 3: ------


    Notes:  If the subtotal on Line 6 is greater than zero, you are 
not eligible to apply for renewal funding under this notice. Also, 
note that continued use of prior funds may require

[[Page 21747]]

that you file an extension request with the area CPD Field Office. 
Further, if the subtotal on Line 3 is zero or a residual amount that 
is less than one percent of the amount on Line 1, you are not 
eligible to apply for renewal funding under this notice. In 
reviewing the information that you provide in this chart, HUD will 
determine your eligibility for renewal funding based on financial 
records for reimbursement of expenditures that are filed under HUD's 
financial system (PAS).

    (4) HOPWA Renewal Budget. Please complete the HOPWA Renewal Budget 
Form (Appendix A). See Part B, Section III, Renewable Activities and 
Amount of Renewals, for details on renewal funding.
    (5) HOPWA Renewal Project Form (Appendix A). Complete the form 
including the following:
    (a) Project Sponsor. You must identify any organization that will 
receive HOPWA funds as a project sponsor and the amount of funds to be 
received.
    (b) Non-profit Status. If not previously submitted to HUD through 
the prior HOPWA application or if a change occurred in non-profit 
status, non-profit grantees or project sponsors must submit 
documentation verifying your non-profit status, as outlined under Part 
A, Section VII (A).
    (c) Service Areas. Your application must identify the area(s) in 
which you are proposing to offer housing and other assistance.
    (6) Statutory Certifications. The renewal application should 
include the required certifications as described under Part A, Section 
VI, Statutory Certifications. After your entire application is 
assembled, please mark each exhibit with an appropriately numbered tab 
and number every page of the application sequentially. Complete the 
HOPWA Renewal Application Checklist found in Appendix A to this Program 
Section of the SuperNOFA. Attach the HOPWA Renewal Application 
Checklist to the front of your application.

V. Additional Renewal Information

    As an applicant of renewal funding, you are encouraged to read Part 
A: General Program Requirements at the beginning of this Program 
Section. This section outlines submission details, technical 
assistance, and statutory requirements for using HOPWA funds.

PART C: FEDERAL COLLABORATION WITH CDC TO STUDY THE CONNECTION OF 
HOUSING AND HIV

I. Purpose

    This notice implements an initiative by the Department of Housing 
and Urban Development (HUD) and the Centers for Disease Control and 
Prevention (CDC), Study the Connection of Housing and HIV. The study 
will provide scientific insight into the housing and medical challenges 
of persons who are living with HIV/AIDS who are unstably housed. Under 
Part C of the HOPWA program notice, HUD is establishing our part of the 
collaboration with the CDC in a competitive award for Special Projects 
of National Significance (SPNS). Due to its innovative nature and 
potential for replication, the study is likely to serve as an effective 
model for analyzing the impact of tenant-based rental assistance on the 
progression of HIV disease in eligible persons that are homeless or 
unstably housed.
    HUD's Office of Community Planning and Development, Office of HIV/
AIDS Housing, and Office of Policy Development and Research will work 
with the Centers for Disease Control and Prevention, National Center 
for HIV/SDT/TB Prevention, Division of HIV/AIDS Prevention, on this 
research. The effort will study the effects of stable housing on the 
progression of HIV disease for persons with HIV/AIDS as well as its 
effects on the prevention of HIV infection on similar socio-economic 
populations. HUD and the CDC propose to coordinate the evaluation of 
project grants under HUD's Housing Opportunities for Persons With AIDS 
(HOPWA) Program and the CDC's HIV Prevention programs. Over a three-
year period, the collaboration will systematically test the impact of 
providing housing for eligible persons on HIV risk behavior among HIV 
affected individuals. It will also test the impact of housing and 
prevention services on HIV negative family members residing with the 
HOPWA eligible persons as against an unhoused comparison group. The 
comparison group will receive referrals to case management and HIV 
prevention intervention funded by CDC or through access to related 
health care programs that provide HIV prevention services, treatment 
adherence programs and periodic health assessments, including the use 
of blood draws to measure HIV health status. Protocols for these 
activities and information on required client consent for participation 
will be available from CDC. Personal information on study participants 
will remain confidential, although related nonpersonal aggregated data 
will be used as part of the study. Study participants will not be 
subject to any experimental treatments under this study. A cost-benefit 
analysis will comprise one new and important aspect of the research.
    HUD expects that the housing assistance provided to the 
participating eligible persons in this grant will be coordinated with 
resources from other sources, including the use of HOPWA formula and 
competitive projects or other federal, state and local, private funds, 
in conjunction with related health-care and other supportive services 
funded under the Ryan White CARE Act. Given the amount of housing 
assistance funds available under this award, HUD encouraged interested 
applicants to fund supportive services activities from non-HOPWA 
sources.

II. Eligible Applicants

    To apply, you must:
    (A) Be a formula grantee;
    (B) be in good standing, as defined below at Section V(A)(2);
    (C) at the time of application and for a minimum period of two 
years prior, have administered formula funds for tenant-based rental 
assistance in compliance with 24 CFR 574.320;
    (D) have an unmet housing need of at least 500 eligible persons and 
at least 187 housing units available for those eligible persons within 
your jurisdiction; and
    (E) be able to provide a comparison group of at least 187 unhoused 
eligible persons for the CDC study throughout the study period. Note 
that members of the comparison group may not be required to remain 
unhoused in order to participate in this study. Comparison group 
members will be eligible to receive housing or supportive services as 
they become available within the jurisdiction.

III. Study Requirements

    HUD has established the following requirements:
    (A) Housing placement will be carried out via an open enrollment 
method (e.g. lottery or random election process).
    (B) Under the supervision of the CDC or its contractor, grantees 
will facilitate and support collection of extensive outcome evaluation 
data, facilitate client involvement in HIV/AIDS prevention and 
treatment adherence programs, facilitate periodic client health 
assessment done by the CDC and research staff, participate in a multi-
site collaboration, and facilitate eligible persons' awareness of the 
study and the option to participate for the clients who meet the 
research study eligibility criteria. In connection with any data 
collection activities, grantees will be required to obtain the eligible 
person's consent before disclosing to the CDC or its contractor any 
personally identifiable information about the person, including,

[[Page 21748]]

but not limited to, medical, financial, or educational information.
    (C) Study participants will be limited to HOPWA eligible persons 
who are homeless or at severe risk of homelessness. For the purpose of 
this study, ``homeless'' refers to eligible persons who are sleeping in 
emergency shelters or other facilities for homeless persons, or places 
not meant for human habitation, such as cars, parks, sidewalks, or 
abandoned buildings. This term also includes eligible persons who 
ordinarily live in such places but are in a hospital, or other 
institution on a short-term basis (30 consecutive days or less). For 
the purpose of this study, ``at severe risk of homelessness'' refers to 
eligible persons who are frequently relocated or who move between 
temporary housing situations, so that housing is neither appropriate 
nor stable.
    (D) The applicant must either provide appropriate supportive 
services in connection with the rental assistance or ensure that 
appropriate services are provided from other sources.
    (E) All persons receiving rental assistance under Part C will be 
advised that such rental assistance is connected to participation in 
the CDC study, and will be required to consent to such participation 
prior to receiving rental assistance. Participation in the CDC study 
will be voluntary. Refusal to participate in the CDC study will not 
affect a person's eligibility to receive housing or supportive 
services, as they may become available, under the grantee's HOPWA 
formula grant. Eligible persons may also apply for other available 
housing outside that provided under Part C.

IV. HUD Award

    HUD will award:
    (A) Up to $1,200,000 for tenant-based rental assistance and 
supportive services (with at least $800,000 to be used for long-term 
rental assistance);
    (B) Up to three (3) percent of your total award for grantee 
administrative cost; and
    (C) Up to seven (7) percent of the amount each project sponsor 
receives for project sponsor administrative cost.
    HUD will not award funds for project-based rental assistance, new 
construction, acquisition, rehabilitation or conversion, lease or 
repair of facilities, short-term rent, mortgage and utility assistance, 
resource identification, operating costs, local evaluations or 
technical assistance.

V. Application Selection Process

    (A) Threshold Review.
    The Department will conduct a threshold review of all applicants 
requesting funding under Part C. Applicants failing to meet the 
threshold review requirements will not be awarded project funding. 
Threshold review will consist of:
    (1) Eligibility. You must be a HOPWA formula grantee.
    (2) Good Standing Review. You must have no sanctions or unresolved 
monitoring findings during the active competitive period, from the date 
of this notice until the selection of grants, or other HUD knowledge of 
unresolved problems. Unresolved problems include that planned 
activities remain delayed in their implementation, a significant number 
of units are vacant, annual performance reports were not filed with HUD 
at the time of the due date for applications, or significant citizen 
complaints are unresolved or not responded to with justified reasons. 
Grants in default of the grant agreement or with unresolved management 
issues will not be awarded project funding.
    (B) Application Selection Process and Procedures for the Rating of 
Applications.
    HUD will rate all of the applications based on the factors listed 
below. The points awarded for the factors total 100. After rating, all 
applications will be placed in the rank order of their final score for 
selection.

Rating Factor 1: Capacity of the Applicant and Project Sponsors and 
Relevant Organizational Experience (30 Points)

    You will be rated on the extent to which you and any project 
sponsor have the organizational resources necessary to successfully 
implement the proposed project over the three years of the project. HUD 
will award up to 30 points based on your and any project sponsor's 
ability to operate the proposed program. These activities include 
providing rental assistance for HOPWA eligible persons with appropriate 
management oversight, and that will provide adequate coordination with 
the planned study by the CDC over the three-year time period of this 
grant. Identify all relevant experience in undertaking projects similar 
to the HOPWA funded activities involved in this study.
    Rating Factor 2: Need/Extent of the Problem (20 Points)
    Up to 20 points will be awarded for this factor. Applicants must 
assure HUD that there are documented unmet housing needs of at least 
500 HOPWA eligible individuals for rental assistance in this area. 
Applicants must demonstrate that with the rental assistance provided in 
this demonstration project and other related resources, the area 
housing market can provide available units for at least 187 new HOPWA 
eligible persons to be enrolled in the study and that a waiting list or 
comparison group of at least an equal number of persons with unmet 
housing needs is likely to continue in the area during the study 
period.
    To receive the maximum points, the applicant must demonstrate that 
substantial housing and related service needs of eligible persons 
targeted by the project you propose are not being met in your area of 
service and that reliable statistics and data sources (i.e. Census, 
health department statistics, research, scientific studies, along with 
Needs Analysis of Consolidated Plan and/or Continuum of Care 
documentation) show this unmet need.

Rating Factor 3: Soundness of Approach (20 Points)

    This factor addresses the method by which your plan for housing, 
client outreach and selection, project management and data collection 
is consistent with the identified elements of the study. HUD will award 
up to 20 points based on the extent to which your plan evidences a 
sound approach for conducting the HOPWA activities in a manner that is 
responsive to eligible persons, and that your plan for project 
coordination will ensure that the housing component of this study are 
implemented in a clear and sound manner when compared to other 
applications.
    You will be rated based on how well you will conduct outreach to 
unmet homeless or unstably housed persons who have a severe risk of 
homelessness and are living with HIV/AIDS. You will be rated on the 
extent to which you have coordinated your activities and the activities 
of your sponsors with other organizations to provide rental assistance 
in connection with access to appropriate health care and other 
supportive services for likely participants in this study. The highest 
rated applications will define a clear collaborative effort that you 
and your sponsors have taken with related programs including 
coordination with eligible persons, advocates, HOPWA and/or Ryan White 
CARE Act planning bodies, AIDS Drug Assistance Programs, homeless 
assistance programs, or other mainstream housing, health and human 
services efforts that assist persons living with HIV/AIDS and their 
families.
    You will be rated on how well your management plan for this study 
clearly defines how you would manage the rental assistance and any 
related activities and the outreach and

[[Page 21749]]

placement of eligible persons for this study using some type of open 
enrollment method (e.g., lottery or random method). You will also be 
rated on how well you will mange your housing assistance program in 
coordination with the research efforts by the CDC to help achieve the 
objectives of this study. You will be rated on how your management 
oversight of project sponsors is conducted and how well your plan to 
ensures that the requirements established by HUD and the CDC are 
followed.

Factor 4: Leveraging Resources (10 Points).

    Up to 10 points will be awarded for this factor. You will be rated 
on the extent to which other resources will be committed for use in 
conjunction with these HOPWA funded demonstration activities, including 
cash resources and in-kind contributions, such as the value of services 
or materials provided by volunteers or by other individuals or 
organizations.

Factor 5: Achieving Results and Program Evaluation (20 Points).

    Under this factor, HUD will award 20 points based on how well your 
application demonstrates a commitment to ensuring that your goals and 
your performance will be assessed in a clear and effective manner. HUD 
will analyze your plan to implement and manage the HUD/CDC 
demonstration project goals. These goals include: Facilitating and 
supporting the collection of outcome evaluation data; facilitating 
periodic client health assessments done by CDC research staff; 
participation in a multi-site collaboration; and facilitation of the 
potential eligible persons awareness of the study and their option to 
participate. Identify benchmarks and interim activities or performance 
indicators of your program that will facilitate you and your sponsors 
in obtaining these goals for the demonstration project. HUD will award 
the highest points to applications that demonstrate an evaluation plan 
that will objectively measure actual achievements against anticipated 
achievements and a model that provides for the dissemination of 
information from the lessons learned from your effort on this project.

VI. Selection

    HUD reserves the right to select the highest rated applicants in 
ranking order. HUD may consult the CDC to determine the rating of 
applications. In the event of a tie between applications in a category 
of assistance, HUD reserves the right to break the tie based on the 
criteria found in Section V(C) of Part D of this NOFA. In the event 
that a selected applicant is unable to provide the required number of 
eligible households to participate in the CDC study within one year 
from the date of grant agreement execution, HUD reserves the right to 
deobligate any remaining grant funds.

VII. Application

    To apply for funding you must submit the following:
    (A) Application for Federal Assistance (Form HUD-424). You should 
complete Items 1 through 23 with the following additions:
    (1) Item 12--The applicable letters are ``A'' for state; ``B, C, or 
D'' for a unit of local government;
    (2) Item 14--Enter U.S. Department of Housing and Urban Development 
or HUD if not preprinted;
    (3) Item 15--Enter 14-241 and the title ``Housing Opportunities for 
Persons With AIDS Program'' or ``HOPWA'' for the Catalog of Federal 
Domestic Assistance;
    (4) Item 20--You must complete the budget Funding Matrix on page 2.
    (5) Item 21--Check ``No''.
    (B) Narrative of Rating Factors. Your response to the five (5) 
rating factors must be doubled-spaced, typed pages no more than 
approximately twenty-five pages in length.
    (C) Executive Summary and Synopsis. On no more than three (3) 
double-spaced pages, please provide an Executive Summary of your 
organization and provide the name of the grantee and any project 
sponsors, along with contact names, phone numbers, and e-mail address.

Part D: New and Continuing Projects

I. Program Purpose

    Funds under this part are to be used to support the Department's 
national goal of increasing the availability of decent, safe, and 
affordable housing in American communities. The statutory purpose of 
the HOPWA program is meeting the housing needs of low-income persons 
with HIV/AIDS and their families. Projects selected for HOPWA awards 
will be funded to provide housing and related supportive services for 
eligible persons under two categories of assistance:
    (A) Grants for Special Projects of National Significance (SPNS) 
that, due to their innovative nature or their potential for 
replication, are likely to serve as effective models in addressing the 
housing and related supportive service needs of low-income persons 
living with HIV/AIDS and their families; and
    (B) Grants for projects that are part of Long-Term Comprehensive 
Strategies (Long-Term) which provide housing and related supportive 
services for low-income persons living with HIV/AIDS and their families 
in areas that are not eligible for HOPWA FY 2003 formula allocations 
found in Appendix C of this Program Section of this SuperNOFA.

II. Eligible Applicants and Activities

(A) Eligible Applicants and Project Sponsors

    (1) States, units of general local government, and nonprofit 
organizations may apply for SPNS grants;
    (2) States and units of general local government may apply for 
grants for projects under the Long-Term category of grants, if proposed 
activities will serve areas that were not eligible to receive HOPWA 
formula allocations in Fiscal Year 2003. Nonprofit organizations are 
not eligible to apply directly for the Long-Term grants, but may serve 
as a project sponsor for an eligible state or local government grantee.
    (3) You must identify your project sponsors in your application. 
Project sponsors cannot be identified at a later date through such 
processes as an RFP or other selection process.

(B) Eligible Activities

    (1) HOPWA Activities. Eligible activities with their standards and 
limitations may be found in the HOPWA regulations at 24 CFR part 574. A 
copy of the regulations may be downloaded from the HUD Web site at 
http://www.hud.gov. You are encouraged to review the HOPWA regulations 
before seeking funding.
    (2) Additional Guidance on Use of Program Funds.
    (a) Housing Assistance. To receive the maximum points under the 
rating criteria, your project must clearly address the housing needs of 
eligible persons. If you are proposing emergency or transitional 
housing assistance, your plan should include linkages to or the 
provision of permanent supportive housing.
    (b) Supportive Services. Many of the eligible persons who will be 
served by HOPWA may need services in addition to housing. It is 
important that you design programs which enhance access to those needed 
services, including access to health-care, AIDS drug assistance, and 
other services funded through the Ryan White CARE Act or other federal, 
state, local or private funds. While HUD recognizes that there are many 
ways to ensure that eligible

[[Page 21750]]

persons receive the services they need, to the extent possible, HUD 
encourages you to develop housing programs which do not require 
participation in services as a part of your or your project sponsor's 
tenancy requirements. Further, to help ensure that selected projects 
address housing related purposes, no more than 35 percent of the 
proposed budget for program activities can be designated for supportive 
services costs.
    (c) Resource identification. HUD will not select under this notice 
an application that is solely directed at providing resource 
identification activities, since national HOPWA technical assistance 
funds are being made available under the Community Development 
Technical Assistance (CDTA) part of this Program Section for this 
purpose. You may propose a resource identification or technical 
assistance component in your application, if the amount of funds 
designated for these activities are less than 20 percent of the 
proposed program activity costs.
    (d) Other Activities. As authorized by statute, you may propose 
other activities in your application, if approved by HUD. HUD will not 
approve proposals that depend on future decisions on how funds are to 
be used, for example, a proposal to establish a local request-for-
proposal process to select activities or project sponsors.
    (e) Project Outcome Funding. You must request funding to conduct 
data collection on project outcomes. The budget provides that up to 
$50,000 may be added to collect information and report to HUD on the 
outcomes of your service delivery model. You must propose data 
collection activities in your application. Project outcome activities 
include:
    (i) Defining monitoring questions that will be addressed and 
examined during the project period;
    (ii) Specifying outcome measures;
    (iii) Developing instruments to assess project outcomes and systems 
outcomes;
    (iv) Training project staff in the collection of data, including 
the preparation of the standard HOPWA Annual Progress Report to HUD;
    (v) Monitoring data collection activities to assure that 
submissions are complete and accurate, including data coding and entry;
    (vi) Summarizing data collected; and
    (vii) Participating in HUD-sponsored collaborations and HUD-
designated training events in order to prepare and disseminate the 
findings of reports on project accomplishments and lessons learned.
    Applicants may include an expert third-party to conduct project 
outcome activities, but grantees are encouraged to train staff 
internally. Such training will increase the internal capacity of your 
organization and your partner organizations by learning how to make use 
of project outcome data in operating and adjusting assistance provided 
to eligible persons.
    (3) Maximum Grant Amounts. The maximum amount that you may receive 
is $1,200,000 for program activities (e.g., activities that directly 
benefit eligible persons), irrespective of the number of applications 
that you submit. You may also add-on up to 3 percent of this program 
activities amount for grantee administrative costs and, if your program 
involves project sponsors, add-on up to 7 percent of the amount they 
receive for their administrative costs. In addition, you must add up to 
$50,000 for project outcome activities.

III. Policy Priorities

    (A) Departmental Policy Priorities. As outlined in Section II of 
the General Section of the SuperNOFA, HUD has identified policy 
priorities that applicants are encouraged to address through the 
proposed plans. HUD has identified two Departmental policy priorities 
as being applicable to the HOPWA program. Applications for HOPWA 
funding will receive a rating point for each applicable Departmental 
policy priority initiative addressed through the proposed program 
activities and performance goals and objectives. Applicants must 
demonstrate how these priorities will be addressed through the 
Soundness of Approach Section of the application as outlined under 
Rating Factor 3. One Rating Point will be awarded to each of the 
following addressed priorities:
    (1) In accordance with Section II (C) of the General Section of the 
SuperNOFA, for applicants seeking HOPWA funds for capital development 
activities, including rehabilitation or new construction, you are 
encouraged to:
    (a) Institute visitability standards in these activities undertaken 
with HOPWA funds. Visitability standards allow a person with mobility 
impairments access into the home, but do not require that all features 
be made accessible.
    (b) Incorporate universal design in the construction or 
rehabilitation of housing undertaken with HOPWA funds. Universal design 
provides housing that is usable by all without the need for adaptation 
or specialized design.
    (2) For applications in which the grantee, project sponsor(s), or 
other collaborating organizations meets the definition of a faith-
based, other community-based, or grassroots organization as defined in 
Section II (D) of the General Section of the SuperNOFA.
    (B) Program Policies--Target Populations. The Department has been 
advised by persons living with HIV/AIDS, HIV/AIDS housing providers, 
and national organizations, of the continuing disparity in accessing 
housing, health-care, and HIV/AIDS treatment among underserved 
populations, as well as health-related disparities that result from 
limited access to health-care, treatment and other support for persons 
living with HIV/AIDS. Applications seeking to provide housing 
assistance and related supportive services to one or more of the 
following underserved populations will receive one point for each 
priority addressed in the application. To receive this consideration, 
you must demonstrate the need of the special population in your area 
under the Need/Extent of the Problem section of your application as 
outlined under Rating Factor 2, as well as, demonstrate your response 
to this need under the Soundness of Approach section of your 
application as outlined under Rating Factor 3.
    HUD reserves the right to select the highest rated application (but 
not one that is rated at less than 75 points) that demonstrates that 
the planned HOPWA activities and activities supported by leveraged 
funds, will serve one of the following special populations of HOPWA 
eligible persons. If funds are insufficient to select one of each of 
these two special demonstration grants, HUD's selection priority will 
be in the order listed:
    (1) Persons with HIV/AIDS and their families who are living in the 
Colonias. Primarily the southwest border area of the United States, the 
Colonias are home to persons living in extreme poverty and poor housing 
conditions. With the limited access to HIV/AIDS housing, services, 
healthcare, and treatment, persons living with HIV in the Colonias do 
not receive the necessary care and treatment. HUD is encouraging 
applications that strive to meet the needs of eligible persons living 
in the Colonias. Applicants seeking funding to serve persons with HIV/
AIDS within the Colonias must propose a service area which meets the 
definition of Colonias found in the General Section II (E) of the 
SuperNOFA.
    (2) Persons with HIV/AIDS experiencing chronic homelessness. A 
chronically homeless person is defined as: ``an unaccompanied homeless 
individual with a disabling condition

[[Page 21751]]

who has either been continuously homeless for a year or more OR has had 
at least 4 episodes of homelessness in the past 3 years.'' Persons who 
are infected with HIV are more likely to be able to follow complex 
treatment regimens if they have a reliable address where they can be 
reached by care providers, a safe place to keep medications, 
refrigeration for drugs that require it, and other necessities that 
many of us take for granted. HUD is encouraging applications that 
strive to create additional permanent housing for persons living with 
HIV/AIDS that are experiencing chronic homelessness. Applicants should 
work with their local Continuum of Care Plans to create this permanent 
housing for persons living with HIV/AIDS and their families.

IV. Program Requirements

    (A) Performance Measures and Project Goals and Objectives. You must 
use HUD's required performance measures, as detailed below, that will 
show your accomplishments in using HOPWA funds to expand the housing 
options that benefit eligible persons. You must also establish 
individual goals and objectives for your proposal. They should be 
specific, achievable and measured within set time periods. Your 
individual goals and objectives should result in possible findings on 
the successes and lessons learned in undertaking your activities that 
would be shared with other communities. In designing your proposal, 
please use the following:
    (1) Required HOPWA national performance goal. Your proposed 
activities must increase the amount of housing assistance available to 
eligible persons to enable them to achieve housing stability and access 
to health-care and related supportive services. Your activities should 
also address the challenge of homelessness for person living with HIV/
AIDS and their families by helping them move into permanent housing and 
strengthen community linkages for HOPWA eligible persons and their 
families to keep them from slipping back into homelessness (one extra 
priority point will be awarded--see above--Section III (B)).
    (2) Measurements of Performance. After each year of operation, you 
must report on the number of housing units that were provided with 
HOPWA and other funding, and the number of additional persons served 
with related supportive services. HUD will measure your progress and 
achievements in evaluating your performance on your HOPWA grant.
    (B) Descriptive Budget. You must provide a description of each of 
your requested budget items and how the funds will be used, including 
each amount of requested funding for you and your project sponsors, and 
a description of how each line item will relate to eligible HOPWA 
activities as defined in Part D, Section II (B) of this Program 
Section. You are expected to match requested funds to specific goals 
and objectives in your project. See Appendix D.

V. Application Selection Process

    (A) HOPWA Application Threshold Reviews. HUD will review your HOPWA 
application to ensure that:
    (1) Your application meets the threshold requirements found in 
Section V (B) of the General Section of the SuperNOFA.
    (2) Your application contains all required certifications as 
outlined in Part A, Section VI (A) of this Program Section: Forms, 
Certifications, and Assurances.
    (B) Procedures for the Rating of Applications. HUD will rate all 
HOPWA applications based on the factors listed below.
    The points awarded for the factors total 100. In addition, bonus 
points for projects in RC/EZ/EC areas may be available under Section VI 
(C) of the General Section of this SuperNOFA. After rating, all 
applications will be placed in the rank order of their final score for 
selection within the appropriate category of assistance.

Rating Factor 1: Capacity of the Applicant and Project Sponsors and 
Relevant Organizational Experience (20 Points)

    Address the following factor on not more than five (5) double-
spaced, typed pages. For each project sponsor, you may add two 
additional pages. This factor addresses the extent to which you and any 
project sponsor have the organizational resources necessary to 
successfully implement your proposed activities in a timely manner. If 
you will be using project sponsor(s) in your project, you must identify 
each project sponsor in your application. HUD will award up to 20 
points based on your and any project sponsor's ability to develop and 
operate your proposed program in relation to which entity is carrying 
out an activity.
    (a) With regard to both you and any project sponsor(s), HUD will 
consider:
    (i) Past experience and knowledge in serving persons with HIV/AIDS 
and their families;
    (ii) Past experience and knowledge in programs similar to those 
proposed in your application;
    (iii) Experience and knowledge in monitoring and evaluating program 
performance and disseminating information on project outcomes; and
    (iv) Past experience as measured by expenditures and measurable 
progress in achieving the purpose for which funds were provided.
    (b) In reviewing the elements of paragraph (1), HUD will consider:
    (i) The knowledge and experience of the proposed project director 
and staff, including the day-to-day program manager, consultants, and 
contractors in planning and managing the kind of activities for which 
you are requesting funds. You and any project sponsor will be judged in 
terms of recent, relevant, and successful experience of staff in 
undertaking eligible program activities;
    (ii) Your and/or the project sponsor's experience in managing 
complex interdisciplinary programs, especially those involving housing 
and community development programs directly relevant to the work 
activities proposed and carrying out grant management responsibilities.
    (iii) If you and/or the project sponsor received funding in 
previous years in the program area for which you are currently seeking 
funding, you and your project sponsor's past experience will be 
evaluated in terms of the ability to attain demonstrated measurable 
progress in the implementation of your grant awards. Measurable 
progress is defined as:
    (1) Meeting applicable performance benchmarks in program 
development and operation;
    (2) Meeting project goals and objectives, such as, that the number 
of persons assisted was comparable to the number that was planned at 
the time of application;
    (3) Submitting timely performance reports; and
    (4) Expending prior funding as outlined in the prior proposal with 
no outstanding audit or monitoring issues.

Rating Factor 2: Need/Extent of the Problem (20 Points)

    Address this factor on not more than five (5) double-spaced, typed 
pages. Up to 20 points will be awarded for this factor.
    (a) AIDS Cases. (5 Points) Up to five points will be determined by 
the relative numbers of AIDS cases and per capita AIDS incidence within 
your service area, in metropolitan areas of over 500,000 population and 
in areas of a state outside of these metropolitan areas, in the state 
for proposals involving state-wide activities, and in the nation for 
proposals involving nation-wide activities. Your application

[[Page 21752]]

must define a planned service area. To determine these points, HUD will 
obtain AIDS surveillance information from the Director of the Centers 
for Disease Control and Prevention.
    (b) Description of Unmet Need. (5 Points) Up to five points will be 
awarded based on demonstration of need for funding eligible activities 
in the area to be served. To receive the maximum points, demonstrate 
that substantial housing and related service needs of eligible persons 
and/or the target population, as outlined in Part D, Section III (B), 
are not being met in the project area and that reliable statistics and 
data sources (i.e. Census, health department statistics, research, 
scientific studies, and Needs Analysis of Consolidated Plan and/or 
Continuum of Care documentation) show this unmet need. To receive the 
maximum points, show that your jurisdiction's Consolidated Plan and 
Analysis of Impediments to Fair Housing Choice, Continuum of Care 
Homeless Assistance plans (if homeless persons are to be served), and 
comprehensive HIV/AIDS housing plans are applicable to your project and 
identify the level of the problem and the urgency of the need.
    (i) If you apply for a SPNS grant, you must describe a need that is 
not currently addressed by other projects or programs in the area. Also 
describe any unresolved or emerging issues and the need to provide new 
or alternative forms of assistance that, if provided, would enhance 
your area's programs for housing and related care for persons living 
with HIV/AIDS and their families; or
    (ii) If you apply for a project that is part of a Long-Term 
Comprehensive Strategy in an area that does not receive a HOPWA formula 
allocation, you must describe the need that is not currently addressed 
by other projects or programs in the area. You must also describe any 
unresolved or emerging issues and/or the need to provide forms of 
assistance that enhance the community's strategy for providing housing 
and related services to eligible persons.
    (iii) HUD will evaluate your presentation of statistics and data 
sources based on soundness, reliability, and the specificity of 
information to the target population and the area to be served. If you 
propose to serve a subpopulation of eligible persons on the basis that 
these persons have been traditionally and are currently underserved 
(e.g., persons with multiple disabilities including AIDS), your 
application must document the need for this targeted effort through 
statistics and data sources that support the need of this population in 
your service area.
    (c) Need in Non-Formula Areas and Need for Renewals. (5 Points)
    Under this criterion, HUD will award points under the following two 
circumstances:
    (i) Five points will be awarded if your SPNS application proposes 
to serve eligible persons in an area that does not qualify for HOPWA 
formula allocation; or
    (ii) Up to five points will be awarded, if you propose to continue 
the operations of HOPWA funded activities that have been supported by 
HOPWA competitive funds in years immediately prior to this application 
and that have operated with measurable success. To receive the maximum 
points, you must describe what unmet need would result if funding for 
the project was not renewed from this federal funding and describe your 
efforts to secure other sources of funding to continue this project. 
You must also show that you operated with measurable progress and your 
previous HOPWA-funded activities have been carried out and are nearing 
completion of the planned activities in a timely manner. Measurable 
progress is defined as:
    (1) Meeting performance benchmarks, as appropriate, in program 
development and operation;
    (2) Meeting project goals and objectives, such as, that the number 
of persons assisted is comparable to the number that was planned at the 
time of application;
    (3) Submitting timely performance reports; and
    (4) Expending 50% of prior funding by the application due date of 
this Program Section of the SuperNOFA.
    (d) Highest Rated in a State or the Nation (for nationwide 
activities).
    (5 Points) After rating of all other factors, HUD will award five 
points to help achieve greater geographic diversity in funding 
activities within a variety of states. Under this criterion, five 
points will be awarded to the highest rated SPNS and Long-Term 
applications in each state and to the highest rated SPNS application 
among the applications that propose nationwide activities.
Rating Factor 3: Soundness of Approach: Model Qualities and 
Responsiveness/Coordination/Sustainability (40 Points)
    Address this factor on not more than twenty (20) double-spaced, 
typed pages. Include the HOPWA Budget Forms found in Appendix D. This 
factor addresses the method by which your plan meets your identified 
needs. HUD will award up to 40 points based on the extent to which your 
plan evidences a sound approach for conducting the HOPWA activities in 
a manner that is responsive to the needs of eligible persons and that 
your plan for project coordination, and its sustainability after the 
period of the award, will offer model qualities in providing supportive 
housing opportunities for eligible persons, when compared to other 
applications and projects funded under previous HOPWA competitions.
    (a) Responsiveness/Coordination/Sustainability (20 Points). HUD 
will award up to 20 points (Responsiveness--10 Points, Coordination--5 
Points, and Sustainability--5 Points) based on how well your project 
plans respond to the unmet needs in housing and related supportive 
services for the eligible population, including target populations 
outlined under Part D, Section III. You should demonstrate the extent 
to which you have coordinated your activities and the activities of 
your project sponsors with other organizations that are not directly 
participating in your proposed work activities. This involves 
organizations with which you share common goals and objectives in 
assisting eligible persons. You must demonstrate the extent to which 
your program exhibits the potential to be financially self-sustaining 
by decreasing dependence on federal funding and relying more on state, 
local, and private funding so your activities can be continued after 
your grant award period is completed. In order to ensure that resources 
are used to their maximum effect within the community, it is important 
that you demonstrate involvement in other state, local, and private 
funding arenas.
    (i) Responsiveness (10 Points). To receive the highest ratings in 
this element your application must address:
    [sbull] The projected number of persons to be served through each 
activity for each year of your program;
    [sbull] The projected number of housing units, by type, to be 
provided through your project, by year, over a 3-year period; and
    [sbull] The specific organizations that will provide housing, 
supportive services, or other activities either through an agreement 
with your organization or through funding from your project.
    Include a description of the roles, and responsibilities of your 
project sponsors and/or other organizations within your project plan 
and how these will be coordinated in conducting eligible activities. To 
receive the maximum points for your project plan, you must explain and 
describe the eligible activities you or your project sponsor intend to 
conduct, where these activities

[[Page 21753]]

will take place (either on site or at another location), and how those 
activities will benefit eligible persons. Please describe:
    (1) Housing Activities. You must demonstrate how the housing needs 
of eligible persons will be addressed through one or more of the HOPWA 
eligible activities or through other resources and how such activities 
are coordinated with other housing assistance. Your plan for housing 
assistance must include:
    (a) Linkage to or the provision of permanent supportive housing. 
You must describe how eligible persons will access permanent housing 
options through your project or through specific commitments or other 
sustainable linkages with other community housing providers, even if 
the focus of your project is emergency or transitional assistance.
    (b) Description of housing site. You must describe any appropriate 
site features, including accessibility, visitability, and access to 
other community amenities associated with your project.
    (c) A development and operations plan. You must describe a 
development and/or operations plan for the housing assistance you are 
proposing to provide. For rental assistance programs, this will include 
your plan for providing rental assistance, proposed housing sites, and 
length of stay. If you are proposing to use HOPWA funds for 
acquisition, rehabilitation, or new construction activities, your plan 
must also document that you have secured funding sources (if 
applicable), identified a site(s), and must provide rehabilitation/
construction timelines.
    (d) Operational Procedures. Describe your outreach, intake, and 
assessment procedures, as well as how eligible persons will receive 
housing support with access to medical care and other supportive 
services. Describe the use of housing being funded from other sources, 
and how your project provides for on-going assessments of the benefits 
received by eligible persons. Include a description of how a client 
moves through the housing program from outreach, intake, client 
assessment, the delivery of housing services, the use of emergency, 
transitional or permanent housing, and, if appropriate, the 
outplacement to more self-sufficient independent housing.
    (2) Supportive Services Activities. You must describe how the 
supportive service needs of eligible persons will be addressed from 
HOPWA or other sources by describing the type of supportive services 
that will be offered directly by the program and/or how services will 
be accessed and coordinated from other sources. Explain the connection 
of these services in helping eligible persons obtain and/or maintain 
housing. You are reminded that supportive service costs may represent 
no more than 35 percent of your program activity costs. In describing 
your supportive services delivery plan explain:
    (a) How eligible persons will have access to mainstream programs 
that offer healthcare and other supportive services, as discussed in 
Part A, Section VII (C);
    (b) How eligible persons will participate in decision making in the 
project operations and management;
    (c) Your plan for delivering supportive services through a 
comprehensive plan that shows how eligible persons access medical care 
and other supportive services to address their needs.
    (3) Additional Activities. You must describe your plan for 
utilizing other requested HOPWA funds (described at 24 CFR 574.300(b)). 
Explain how these activities will be integrated into your overall plan 
in the provision of housing and related supportive services to eligible 
persons.
    (4) Other Activities. As authorized by statute and in addition to 
the activities at 24 CFR 574.300(b), you may propose other activities 
in your application, if approved by HUD. You must describe the reason 
of the other activities and the benefits likely to occur if authorized.
    (ii) Coordination (5 Points). You should demonstrate the extent to 
which you have coordinated your activities and the activities of your 
project sponsors with other organizations that are not directly 
participating in your proposed work activities. This involves 
organizations for which you share common goals and objectives. You will 
be rated on the extent to which you demonstrate you have:
    (1) Coordinated your proposed activities with those of other groups 
or organizations within the community or region prior to submission, to 
best complement, support, and coordinate all housing and supportive 
service activities;
    (2) Developed your project through consultation with other 
organizations, groups, or consumers involved with area HIV/AIDS housing 
and service planning, including planning under the Ryan White CARE Act 
and other federal planning. The highest rated applicant will 
demonstrate that the project is integrated with HUD's planning 
processes, such as the jurisdiction's Consolidated Planning process or 
the community's Continuum of Care Homeless Assistance planning process 
(if homeless persons are to be served by proposed activities);
    (3) Coordination with other HUD-funded programs outside of the 
Consolidated Planning Process, for example accessing additional housing 
resources through a local public housing authority;
    (4) Coordination with mainstream resources including private, other 
public, and mainstream services and housing programs. To achieve the 
maximum points, applicants must evidence explicit agency strategies to 
coordinate client assistance with mainstream health, social services 
and employment programs for which eligible persons may benefit.
    (iii) Sustainability (5 Points). The goal of sustainability is to 
ensure that your activities can be continued after your grant award is 
complete. Demonstrate the extent to which your program exhibits the 
potential to be financially self-sustaining by decreasing dependence on 
federal funding and relying more on state, local and private funding so 
your activities can be continued after your grant award period is 
completed. In order to ensure that resources are used to their maximum 
effect within the community, it is important that you demonstrate 
involvement in other state, local, and private funding arenas. In 
evaluating this factor, HUD will consider the extent to which you have:
    (1) Developed linkages, or described specific steps you will take 
to develop linkages with other activities, programs or projects through 
meetings, information networks, planning processes, letters of 
participation or coordination, or other mechanisms, to coordinate your 
activities so solutions are holistic and comprehensively involved with 
other state, local, or private entities;
    (2) Demonstrated how planned activities may be sustained through 
other resources in order to provide a comprehensive and responsive 
range of housing and related supportive services to meet the changing 
needs of persons with HIV/AIDS.
    (b) Model Qualities (20 Points). HUD will award up to 20 points 
based on your service delivery plan and how well it will serve as a 
model with exemplary qualities to address the ongoing housing and 
supportive service needs of eligible persons within a replicable 
operational framework. To receive the maximum points, you must offer a 
housing plan that describes the following:
    (i) Policy Priorities. If applicable to your application, describe 
how you will meet the Departmental policy priorities

[[Page 21754]]

emphasized in Part D, Section III of this Program Section.
    (ii) Project Management and Oversight. Describe your method for 
managing and overseeing activities, including those of your 
organization, your project sponsor, and any other organization. 
Identify staff members who are responsible for management and oversight 
of the project and activity implementation.
    (iii) Evaluation Plan. Your evaluation plan should identify what 
you are going to measure, how you are going to measure it, the steps 
you have in place to make adjustments to your work plan if performance 
targets are not met within established timeframes, and how you plan to 
share successes and lessons learned in undertaking your activities with 
other communities.
    (iv) Innovative Qualities. If you propose a new program, or an 
alternative method of meeting the needs of your eligible persons, 
describe how the innovative qualities of your activities will become a 
benchmark for achieving greater housing opportunities and supportive 
services for persons living with HIV/AIDS. HUD will rate your 
applications higher if you provide strong evidence that your methods 
will yield qualities that will benefit or expand knowledge in serving 
eligible persons, when compared to other applications and HOPWA 
projects. In order to learn about innovative qualities of previously 
funded and on-going HOPWA projects, please review the HOPWA Executive 
Summaries for all HOPWA formula and competitive grantees at http://www.hud.gov.
    (v) Other Exemplary Qualities. Demonstrate what exemplary qualities 
your project contains that will be beneficial to other projects in your 
area or in other areas across the country. Describe what activities you 
have undertaken that have been outstanding and that if duplicated would 
achieve greater housing opportunities for persons living with HIV/AIDS 
and their families.
    (vi) Descriptive Budget. HUD will review your budget in describing:
    (1) How each amount of requested funding for you and your project 
sponsors will be used;
    (2) How each line item will relate to eligible HOPWA activities as 
defined in Part D, Section II (B), of this Program Section of the 
SuperNOFA; and
    (3) A clear and complete statement of the planned activities for 
your project and demonstrate how these activities are matched with line 
items for both the grantee and sponsors. You must complete the HOPWA 
Project Budget Form as described in Part B, Section VI (E). Please note 
that only the forms are required and an additional narrative under the 
Model Qualities Section is not required.

Rating Factor 4: Leveraging Resources (10 Points)

    This factor addresses your ability to secure community resources 
that can be combined with HUD's funds to achieve program purposes. HUD 
will award up to 10 points based on the extent to which resources from 
other public or private sources have been committed at the time of 
application, to support your project. To receive the maximum points, 
you must provide evidence of commitments of leveraged resources that 
match or exceed the amount of HOPWA funds that are requested, but not 
including funds designated for data collection.
    (a) In establishing leveraging, HUD will not consider other HOPWA-
funded activities, entitlement benefits inuring to eligible persons, or 
conditioned commitments that depend on future fund-raising or actions. 
In assessing the use of acceptable leveraged resources, HUD will 
consider the likelihood that state and local resources will be 
available and continue during the operating period of your grant. In 
evaluating this factor, HUD will also consider:
    (i) The extent to which you document leveraged resources, such as 
funding and/or in-kind services from governmental entities, private 
organizations, resident management organizations, educational 
institutions, or other entities to achieve the purposes of the project 
for which you are requesting HOPWA funds;
    (ii) The extent to which the documented resources evidence that you 
have partnered with other entities to make more effective use of 
available public or private resources. Partnership arrangements may 
include funding or in-kind services from local governments or 
government agencies, nonprofit or for-profit entities, private 
organizations, educational institutions, or other entities that are 
willing to partner with you on proposed activities, or partnering with 
other program funding recipients to make more effective use of 
resources within the geographic area covered by your award.
    (b) To receive highest leveraging points, you must document the 
cash value of leveraged resources pledged to your project(s). The 
commitment of resources will be evidenced by use of the appropriate 
language as described below:
    (i) Applicant or Third Party Cash Resources. If this proposal is 
funded, (applicant name or third party name) commits $(amount) (of its 
own funds, if applicant, or to applicant name, if third party) for 
(type of activity) to be made available to the HOPWA program. These 
funds will be available from (date) to (date). (Signature and Title of 
authorized representative and date.)
    (ii) Non-Cash Resources. If this proposal is funded, 
(organization's name) commits to make available (type of resource) 
valued at $(amount) to the HOPWA program proposed by (applicant name). 
These resources will be made available to the HOPWA program from (date) 
to (date). (Signature and Title of authorized representative and date.) 
The donation of a third party professional service should be valued at 
the professional's customary charge. The value of materials to be 
contributed to the project by a third party or by the applicant may 
also be counted as leveraging.
    (iii) Volunteer Time. If this proposal is funded, (name of the 
organization or of self), commits to provide (number of hours) of 
volunteer time from (date) to (date) to provide (type of activity) to 
the HOPWA program proposed by (applicant name). The total value of 
these services, based on $10.00 per hour, is $(amount). (Signature and 
Title, and date.) Time to be contributed to the project by volunteers 
should be valued at $10.00 per hour. In the case of individuals 
volunteering their time directly to the applicant, the applicant should 
list itself as the organization.
    (iv) Contribution of a Building. If this proposal is funded, 
(applicant name) pledges the building at (site address) to the HOPWA 
program. The building has a fair market value of $(amount). A licensed 
independent real estate appraiser made this appraisal, which is based 
on comparable properties in the area. (Signature of applicant's 
authorized representative and date.) Ownership of a building or portion 
of a building to be used in the project may be counted as leveraging. 
The fair market value of the building or portion of the building being 
contributed may be counted. Do not send an appraisal to HUD, but keep 
documentation of fair market value on file. The contribution of land 
(as a leveraged resource for new construction) should be treated the 
same as contribution of a building. You will need to keep documentation 
of the fair market value on file, particularly if it is improved land 
and you wish to include the value of the improvements in the 
contribution.
    (v) Contribution of a Building to be Acquired with HOPWA Funds. If 
this proposal is funded, (applicant name) commits the building at (site 
address)

[[Page 21755]]

for the HOPWA program. The building has a fair market value of 
$(amount). A licensed independent real estate appraiser made this 
appraisal, which is based on comparable properties in the area. The 
HOPWA request for the building is $(amount). Therefore, the 
contribution is the difference between the fair market value and the 
HOPWA request, or $(amount). (Signature of applicant's authorized 
representative and date.) The difference between the documented fair 
market value and the portion paid for with HOPWA funds may be counted 
as leveraging. Maintain documentation of fair rental value on file.
    (vi) Contribution of Leasehold Interest. If this proposal is 
funded, (applicant name) commits the leasehold interest at (site 
address) for the HOPWA program. The fair rental value of this site is 
$(amount) annually, and at constant value will amount to $(amount) over 
(term of the lease, up to three years). An appropriate independent 
third party made this appraisal, which is based on comparable 
properties in the area. The total leasing cost over the term of the 
lease to be paid with HOPWA funds is $(amount). Therefore, the 
contribution is the difference between the HOPWA leasing cost and the 
fair rental value, or $(amount). (Signature of applicant's authorized 
representative and date.) The difference between the fair rental value 
(for a term up to three years) and the cost of the lease to be paid for 
with HOPWA funds may be counted as leveraging.

Factor 5: Achieving Results and Program Evaluation (Maximum 10 Points)

    Address this factor on not more than five (5) double-spaced, typed 
pages. Under this factor, HUD will award 10 points based on how well 
your application demonstrates a commitment to ensuring that the goals 
that you set forth and your performance will be assessed in a clear and 
effective manner. HUD will analyze how well you have clearly 
implemented the HOPWA program goals and identified the benefits or 
outcomes of your program including your activities, benchmarks, and 
interim activities or performance indicators. HUD will award the 
highest points to applications that demonstrate an evaluation plan that 
will objectively measure actual achievements against anticipated 
achievements.
    Benchmarks or outputs that are identified in your application 
should be measurable indicators of actual achievements that help 
achieve the program outcome goals for the HOPWA Program. These outcome 
goals should include but are not limited to:
    (a) Increase the amount of housing assistance and related 
supportive services to eligible persons, to establish or maintain 
housing stability and reduce the risks of homelessness for eligible 
persons,
    (b) Increase the access to permanent housing for low-income 
eligible persons, to enable these households to become more self-
sufficient,
    (c) Improve the housing conditions in which low-income and homeless 
eligible persons and their families live, to increase the number of 
persons living in housing that is safe, decent, and sanitary, and
    (d) Address the challenge of homelessness for persons living with 
HIV/AIDS and their families by helping them move to permanent housing 
with appropriate support, with coordinated homeless assistance effort.
    Program output measures for your application for the HOPWA Program 
must include but are not limited to:
    (a) The projected numbers of persons to be served through each 
activity during each project operating year, and
    (b) The projected number of housing units by type, to be provided 
to eligible households through your project during each project 
operating year,
    Your application should also address your evaluation plan. 
Evaluation is defined as your method for collecting data on HUD program 
measures to evidence achievement of your project's goals and 
objectives. HUD will assess your method for reviewing this data and 
your basis for making relative adjustments in project implementation 
based on outcomes and lessons learned. Your evaluation plan must 
include how you propose to utilize the project outcome funding. HUD 
will award a greater number of points for projects that also provide 
for a plan for the dissemination of information from the lessons 
learned from your proposed activities. Three Program Evaluation Logic 
Models are given as examples on the following pages to illustrate 
planning for the use of resources, project activities, outputs, 
outcomes, and goals. Please use the Logic Model (Form HUD-96010-1) in 
the General Section of this notice to respond to this factor. In 
addition to using the required HOPWA output measures, applicants may 
create their own set of activities, other outputs, and project 
outcomes.
BILLING CODE 4210-32-P

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BILLING CODE 4210-32-C
    (C) Selection of HOPWA Awards. Whether your HOPWA application is 
conditionally selected will depend on your overall ranking compared to 
other

[[Page 21759]]

applications within each of the two categories of assistance. HUD will 
select applications in rank order in each category of assistance to the 
extent that funds are available, except as outlined in Part D, Section 
III (B): Policy Priorities, where HUD reserves the right to select 
applications that target the priority eligible populations. In 
allocating amounts to the categories of assistance, HUD reserves the 
right to ensure that sufficient funds are available for the selection 
of at least one application with the highest ranking under each 
category of assistance. HUD will not select an application that is 
rated below 75 points.
    In the event of a tie between applications in a category of 
assistance, HUD reserves the right to break the tie by selecting the 
proposal that was scored higher on a rating criterion in the following 
order: Soundness of Approach: Responsiveness and Model Qualities 
(Rating Factor 3); Comprehensiveness and Coordination (Rating Factor 
5); the Capacity of the Applicant and Relevant Organizational 
Experience (Rating Factor 1); the Need/Extent of the Problem (Rating 
Factor 2); and Leveraging Resources (Rating Factor 4).
    HUD will notify you in writing if you are conditionally selected. 
You may be notified subsequently of any modification made by HUD, the 
additional project information necessary for grant award, and the date 
of deadline for submission of the required information. In the event 
that a conditionally-selected applicant is unable to meet any 
conditions for fund award within the specified time, HUD reserves the 
right not to award funds to the applicant and to use those funds to 
make awards to the next highest rated applications in this competition; 
to restore amounts to a funding request that had been reduced in this 
competition; or to add amounts to funds available for the next 
competition.

VI. Application Submission Requirements

    Your HOPWA application must contain the following items in the 
order shown below. The standard forms can be found in Appendix B to the 
General Section of the SuperNOFA. The remaining application items that 
are forms (i.e., excluding such items as narratives, letters) can be 
found as Appendix D to this Program Section of the SuperNOFA. The items 
are as follows:
    (A) Application for Federal Assistance (Form HUD-424). You should 
complete Items 1 through 23 with the following additions:
    (1) Item 12--The applicable letters are ``A'' for state; ``B, C, or 
D'' for a unit of local government;
    (2) Item 14--Enter U.S. Department of Housing and Urban Development 
or HUD if not preprinted;
    (3) Item 15--Enter 14-241 and the title ``Housing Opportunities for 
Persons With AIDS Program'' or ``HOPWA'' for the Catalog of Federal 
Domestic Assistance;
    (4) Item 20--You must complete the budget Funding Matrix on page 2 
and the HOPWA Project Budget Form. Please make sure that both the Total 
Amount on HUD-424 and the ``Total Budget'' section on the HOPWA Project 
Budget Form are the same. In the event that the total budgets are in 
conflict, HUD will refer to the HOPWA Project Budget form.
    (5) Item 21--Check ``No''.
    (B) Executive Summary and Synopsis. Please provide a two to three 
sentence synopsis of the main focus or features of your proposed 
program, followed by an Executive Summary of the proposed project on no 
more than two double-spaced, typed pages. HUD will use this as a 
summary if your project is chosen for funding. In your abstract, 
include your organization's name and the name of any project sponsor. 
Also include the name, telephone number, and e-mail address of the 
person within your organization and within any project sponsor that is 
responsible for this application.
    (C) Narrative Statements. Your application must include narrative 
statements that address each of the Factors for Award found at Part D, 
Section V (B) of this Program Section of the SuperNOFA. Respond to each 
factor within the stated page limits and do not use a font size smaller 
than 12 point. Applications failing to submit any of the narrative 
statements will be rated as zero during the rating process.
    (D) Proposed HOPWA Project Information Form. See Appendix D in 
Program Section of SuperNOFA. Complete the form including the 
following:
    (1) Project Sponsors. You must identify any organization that will 
receive HOPWA funds as a project sponsor and the amount of funds to be 
received.
    (2) Non-profit Status. Non-profit grantees or project sponsors must 
submit documentation verifying your non-profit status, as outlined in 
Part A, Section VI (A).
    (3) Service Areas. Your application must identify the area(s) in 
which you are proposing to offer housing and other assistance.
    (E) Budget. You must complete the HOPWA Project Budget Form found 
in Appendix D of this Program Section of the SuperNOFA, which lists the 
amount of requested HOPWA funds designated for each type of HOPWA-
eligible activity. For more information, please see Part D, Section IV 
(B) and Rating Factor 3, Soundness of Approach.
    (F) Statutory Certifications. You must complete the statutory 
certifications as outlined in Part A, Section VI section of this 
Program Section.
    After your entire application is assembled, please mark each 
exhibit with an appropriately numbered tab and number every page of the 
application sequentially. Complete the HOPWA Application Checklist 
found in Appendix D to this Program Section of the SuperNOFA. Attach 
the HOPWA Application Checklist to the front of your application.
BILLING CODE 4210-32-P

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21795]]



Funding Availability for the Assisted Living Conversion Program (ALCP) 
for Eligible Multifamily Housing Projects

Program Overview

    Purpose of the Program. The purpose of this program is to provide 
grants for the conversion of some or all of the dwelling units in an 
eligible project into assisted living facilities (ALFs) for frail 
elderly persons.
    Available Funds. Approximately $64 million are available for the 
conversion of eligible multifamily projects to ALFs ($25 million under 
the Fiscal Year 2003 Consolidated Appropriations Resolution and $39 
million in carryover funds).
    Eligible Applicants. Only private nonprofit project owners of 
eligible developments (as described in Section III of this NOFA) may 
apply for and become the recipient of a grant.
    Application Due Dates. July 10, 2003.
    Match. None required.

Additional Information

I. Application Due Date, Application, and Technical Assistance

    Application Due Date. Your completed application (one original and 
four copies) is due on July 3, 2003, at the address shown below.
    Application Submission Procedures. New Mailing and Receipt 
Procedures. HUD has implemented new procedures that impact application 
submission procedures:
    (1) You may not hand deliver your application. HUD will reject any 
hand delivered application.
    (2) You must submit your application to the Multifamily Hub Office 
that has jurisdiction for the housing development included in your 
application.
    (3) You may submit your application via any mail delivery service; 
however, HUD recommends that ALCP applications be sent via the United 
States Postal Service (USPS) as access by other delivery services is 
not guaranteed.
    (4) If you mail your application to the wrong HUD Office and it is 
not received by the Office designated for receipt by the due date and 
time, it will be deemed late and will not be considered for funding. 
HUD is not responsible for directing it to the appropriate office.
    See the General Section of the SuperNOFA for specific procedures 
governing the mailing of applications.
    Addresses for Submitting Applications. The official place for 
receipt of your application is ONLY in the appropriate HUD Multifamily 
Hub Office. Submit an original and four copies of the ALCP application 
to the Director of the appropriate HUD Multifamily Hub Office, as 
listed in Appendix A of this NOFA, with jurisdiction over your 
development. (To facilitate applicants knowing the correct location to 
send the application, Appendix B to this NOFA lists the 18 Multifamily 
Hubs with the Program Centers under each Hub.) Your application will be 
considered timely filed if your application is received by the 
designated HUD Office no later than 3:30 pm on the application due 
date.
    For Further Information and Technical Assistance. You should 
contact the Multifamily Hub where you will be mailing your ALCP 
Application. (Please refer to Hub telephone numbers in Appendix A.)
    You also may contact Faye Norman, Housing Project Manager at (202) 
708-3000 x2482 or Aretha Williams, Director, Grant Policy and 
Management Division, Room 6138 at (202) 708-3000 x2480 for questions 
regarding the ALF grant award process. This is not a toll free number. 
Ms. Norman can be reached by e-mail at [email protected] and Ms. 
Williams at [email protected]. Both Ms. Norman and Ms. 
Williams are located at the Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410.
    If you have a hearing or speech impairment, you may access the 
telephone number via TTY by calling the Federal Information Relay 
Service at 1-800-877-8339.
    Application. All information for the submission of your application 
is included in this NOFA and the General Section of the SuperNOFA. 
However, for your convenience and ease of submission, an application is 
being provided as Appendix C of this NOFA. You may also obtain an ALCP 
application by calling the SuperNOFA Information Center at (voice) 1-
800-HUD-8929 (1-800-483-8929). Persons with hearing or speech 
impairment may call the Center's TTY number at 1-800-HUD-2209. Please 
be sure to provide your name, address (including zip code), and 
telephone number (including area code). The application is also 
available on the Internet through the HUD Web site at http://www.hud.gov/grants.

    Note: There is a separate application for service coordinator 
funds (which is necessary for those needing to enhance or add 
service coordination per Section IV (D)(13) of this NOFA).

II. Amount Allocated

    This NOFA makes available approximately $64 million (approximately 
$54 million for the physical conversion of eligible multifamily 
assisted housing projects or portions of projects to ALFs and 
approximately $10 million for the conversion of up to 2 unused or 
underutilized commercial properties to ALFs). The Fiscal Year (FY) 2003 
funding of $25 million is in the Consolidated Appropriations 
Resolution, 2003, Pub. L. 108-7, approved February 20, 2003. The $64 
million includes $39 million in carryover funds. The allocation formula 
used for the ALCP to fair share the $64,000,000 reflects demographic 
characteristics of age and incidence of frailty that would be expected 
for program participants. The FY 2003 formula consists of one data 
element from the 2000 decennial census: The number of non-institutional 
elderly population aged 75 years or older with a disability,
    A fair share factor for each state was developed by taking the sum 
of the persons aged 75 or older with a disability within each state as 
a percentage of the sum of the same number of persons for the total 
United States. The resulting percentage for each state was then 
adjusted to reflect the relative difference in the cost of providing 
housing among the states. The total of the grant funds available ($54 
million) was multiplied by the adjusted fair share percentage for each 
state, and the resulting funds for each state were totaled for each 
Hub.
    The ALCP grant funds fair share allocations, based on the formula 
above, to the 18 multifamily Hubs are as shown on the following chart:

 Fiscal Year Allocation 2003 for the Assisted Living Conversion Program
            (ALCP) of Eligible Assisted Multifamily Projects
------------------------------------------------------------------------
                                                               Grant
                           HUB                               authority
------------------------------------------------------------------------
Boston..................................................       3,268,998
Buffalo.................................................       1,296,581
New York................................................       4,366,033
Philadelphia............................................       5,422,739
Baltimore...............................................       2,502,497
Greensboro..............................................       3,140,895
Atlanta.................................................       5,052,490
Jacksonville............................................       4,921,568
Chicago.................................................       4,157,759
Columbus................................................       2,129,329
Detroit.................................................       2,035,287
Minneapolis.............................................       1,864,837
Fort Worth..............................................       5,922,712
Kansas City.............................................       2,998,763
Denver..................................................       1,533,734
Los Angeles.............................................       5,524,003
San Francisco...........................................       5,437,398
Seattle.................................................       2,424,377
---------------------------------------------------------

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    Total...............................................      64,000,000
------------------------------------------------------------------------

III. Program Description: Eligible and Ineligible Applicants, 
Developments, and Activities

    (A) Program Description. Assisted living facilities (ALFs) are 
designed to accommodate frail elderly persons and people with 
disabilities who need certain support services (e.g., assistance with 
eating, bathing, grooming, dressing and home management activities). 
ALFs must provide support services such as personal care, 
transportation, meals, housekeeping, and laundry. Frail elderly person 
means an individual 62 years of age or older who is unable to perform 
at least three activities of daily living (ADLs) as defined by the 
regulations for HUD's Section 202 Program (Supportive Housing for the 
Elderly) at 24 CFR 891.205. Assisted living is defined in section 
232(b)(6) of the National Housing Act (12 U.S.C. 1715w).
    The ALCP provides funding for the physical costs of converting some 
or all of the units of an eligible multifamily development into an ALF, 
including unit configuration, common and services space and any 
necessary remodeling, consistent with HUD or the State's statute/
regulations (whichever is more stringent). Typical funding will cover 
basic physical conversion of existing project units, as well as common 
and services space. There must be sufficient community space to 
accommodate a central kitchen or dining facility, lounges, recreation 
and other multiple-areas available to all residents of the project, or 
office/staff spaces in the ALF. When food is prepared at an off-site 
location, the preparation area of the facility must be of sufficient 
size to allow for the installation of a full kitchen, if necessary. You 
must provide supportive services for the residents either directly or 
through a third party. Your application must include a firm commitment 
for the supportive services to be offered within the ALF as part of the 
application. You may charge assisted living residents for meals and/or 
service fees. Residents may contract with third party agencies directly 
for nursing, therapy or other services not offered by the ALF.
    (B) Eligible Applicants. Only private nonprofit owners of eligible 
multifamily assisted housing developments specified in section 683(2) 
(B), (C), (D), (E), and (F) of the Housing and Community Development 
Act of 1992 (Pub. L.102-550, approved October 28, 1992) and private 
nonprofit owners of an unused or underutilized commercial property are 
eligible for funding. To be eligible, project owners must meet the 
following criteria where applicable:
    (1) Must be in compliance with your Loan Agreement, Capital Advance 
Agreement, Regulatory Agreement, Housing Assistance Payment contract, 
Project Rental Assistance Contract, Rent Supplement or LMSA contract, 
or any other HUD grant or contract document.
    (2) Must be in compliance with all fair housing and civil rights 
laws, statutes, regulations, and executive orders as enumerated in 24 
CFR 5.105(a). See Section V(B) (2) of the General Section of the 
SuperNOFA for further explanation.

    Note: If your eligibility status changes during the course of 
the grant term, making it ineligible to receive the grant (e.g., 
prepayment of mortgage, sale/TPA of property, or opting out of a 
Section 8 Housing Assistance Payment (HAP) contract), HUD retains 
the right to terminate the grant and recover funds made available 
through this NOFA.

    (C) Ineligible Applicants.
    (1) Owners of developments designed specifically for people with 
disabilities.
    (2) Owners of Section 232 developments.
    (3) Property management companies and agents of property management 
companies.
    (4) Limited dividend partnerships.
    (5) Nonprofit Public Agencies.
    (6) Owners of unused/underutilized hospitals or other health-
related facility which are considered to be eleemosynary institutions 
rather than commercial enterprises.
    (D) Eligible Developments.
    (1) Eligible projects must be owned by a private, nonprofit entity 
and designated primarily for occupancy by elderly persons. Projects 
must have been in occupancy for at least 5 years from the date the HUD 
Form 92485, Permission to Occupy Project Mortgage, was approved by 
HUD's Construction Manager as Chief Architect, and have completed final 
closing. Additionally, eligible projects must meet one of the following 
criteria:
    [sbull] Section 202 direct loan projects with or without Section 8 
rental assistance,
    [sbull] Section 202 capital advance projects receiving rental 
assistance under 202(C)(2),
    [sbull] Section 515 rural housing receiving Section 8 rental 
assistance,
    [sbull] Other projects receiving Section 8 project-based rental 
assistance,
    [sbull] Projects subsidized with Section 221(d)(3) below-market 
interest mortgage,
    [sbull] Projects assisted under Section 236 of the National Housing 
Act.
    Your project must:
    (a) Meet HUD's Uniform Physical Conditions Standards at 24 CFR part 
5, subpart G. Meeting these standards as described, means that the 
project, based on the most recent Real Estate Assessment Center (REAC) 
physical inspection report and responses thereto, must have a 
``satisfactory'' rating as evidenced by a score of 60 or better or a 
HUD-approved and on schedule repair plan for developments scoring less 
than 60. Additionally, the project must have no uncorrected and 
outstanding Exigent Health and Safety violations. Finally, the project 
must not have on file a management review with a rating of ``minimally 
satisfactory'' or ``unsatisfactory'' with open and unresolved findings.
    (b) Have a residual receipts account separate from the Reserve for 
Replacement account, or agree to establish this account as a condition 
for getting the award(s).
    (2) Unused and underutilized commercial properties.
    (E) Eligible Conversion Activities. Eligible activities are:
    (1) Retrofitting to meet Section 504 accessibility requirements, 
minimum property standards for accessibility and/or building codes and 
health and safety standards for ALFs in that jurisdiction. Examples are 
items such as addition of:
    (a) Sprinkler systems;
    (b) An elevator or upgrades thereto;
    (c) Lighting upgrades;
    (d) Major physical or mechanical systems of projects necessary to 
meet local code or assisted living requirements;
    (e) Upgrading to accessible units for the ALF with moveable 
cabinetry, accessible appliances, sinks, bathroom and kitchen fixtures, 
closets, hardware and grab bars, widening of doors, etc.;
    (f) Upgrades to safety and emergency alert systems;
    (g) Addition of hallway railings; and,
    (h) Medication storage and work stations;
    (2) Retrofitting to add, modify and/or outfit common space, office 
or related space for ALF staff including a service coordinator and file 
security, and/or a central kitchen/dining facility to support the ALF 
function (e.g., outfit lounge/common space/dining furniture, kitchen 
equipment for cooking/serving and dishware).

[[Page 21797]]

    (3) Retrofitting to upgrade a regular unit to an accessible unit 
for a person/family with disabilities who is being displaced from an 
accessible unit in the portion of the project that is being converted 
to the ALF, where another accessible unit is not available.
    (4) Temporary relocation (not applicable to commercial property).
    (5) Consultant, architectural and legal fees.
    (6) Vacancy payments not more than 30 days after conversion to an 
ALF.
    (F) Ineligible Activities. You may not use funds available through 
this NOFA to:
    (1) Add additional dwelling units to the existing project (not 
applicable to commercial property);
    (2) Pay the costs of any of the necessary direct supportive 
services needed to operate the ALF;
    (3) Purchase or lease additional land;
    (4) Rehabilitate (see definition at 24 CFR 891.105) the project for 
needs unrelated directly to the conversion of units and common space 
for assisted living;
    (5) Use the ALCP to reduce the number of accessible units in the 
project that are not part of the ALF (not applicable to commercial 
property);
    (6) Permanently relocate any resident out of the project; and,
    (7) Increase the management fee.

IV. Program Requirements

    In addition to the statutory, regulatory, threshold and public 
policy requirements listed in Section V of the General Section of this 
SuperNOFA, each applicant must comply with the following requirements:
    (A) Statutory, Regulatory, and Other Program Requirements. You must 
comply with all applicable statutory requirements to the projects 
specified in Section 202(b) and statutory requirements under Section 
232(b)(6). Please note that all ALCP projects must conform to the 500-
year flood plain limitation (See Section VII of this NOFA.) 
Construction of ALCP units is considered a ``critical action'' for 
purposes of the flood plain requirement.
    Excess Residual Receipts (over $500/unit) and Reserve for 
Replacement (R4R) funds (over $1000/unit) in Project Accounts that are 
not approved for another use at the time of application to HUD under 
this NOFA are considered available funds and must be applied towards 
the cost of conversion activities. Before making this determination, 
however, HUD staff will consider the extent of repair/replacement needs 
indicated in the most recent REAC physical inspection and not yet 
approved and any ongoing commitments such as non-grant-based service 
coordinator or other funding, where existing, deduct the estimated 
costs of such items from the R4R and residual receipts balances to 
determine the extent of available residual receipts and R4R funds for 
the ALCP. (This paragraph is not applicable to commercial properties.)
    If funded, you must also file a HUD Form-2530 for all construction 
contractors, architects, consultants, and service provider 
organizations under direct contract with you that will be engaged under 
this NOFA and comply with all State and local licensing, zoning and 
building code requirements.
    (B) Meals and Supportive Services. You must develop and submit a 
Supportive Services Plan (SSP) for the services and coordination of the 
supportive services which will be offered in the ALF to the appropriate 
state or local organization(s) which are expected to fund those 
supportive services. (See Section VI(B)(8) of this NOFA below, for the 
information which must be in the SSP.) You must submit one copy of your 
SSP to each appropriate State or local service funding organizations 
well in advance of the application deadline, for appropriate review. 
The State or local funding organization(s) must return the SSP to you 
with appropriate comments and an indication of the funding commitment, 
which you will then include with the application you submit to HUD.
    You must ALSO submit the SSP to the appropriate organization(s) 
which license ALFs in your jurisdiction. The licensing agency(ies) must 
approve your plan, and must also certify that the ALF and the proposed 
supportive services identified in your SSP, are consistent with local 
statute and regulations and well designed to serve the needs of the 
frail elderly and people with disabilities who will reside in the ALF 
portion of your project.
    Finally, you must also submit an agreement to pursue appropriate 
ALF licensing in a timely manner.
    (C) Minimum Size Limits for an ALF. An ALF must be economically 
feasible. Consistent with HUD Handbook 4600.1, CHG-1, the minimum size 
for an ALF is five units.
    (D) Program Requirements. The following program requirements apply: 
(Note: Program Requirements described in paragraphs 3, (8)(a) and (b), 
and (12) below are not applicable to applicants requesting funding to 
convert commercial facilities):
    (1) Your ALF facility must be licensed and regulated by the state 
(or if there is no state law providing such licensing and regulation, 
by the municipality or other subdivision in which the facility is 
located). Each assisted living unit must include its own kitchen, 
bathroom, bedroom, living/dining area (1 bedroom unit) or kitchen, 
bathroom, bedroom/living/dining area (efficiency unit) and must meet 
the state and/or local licensing, building, zoning and other 
requirements for an ALF.
    (2) Your ALF must be available to qualified elderly persons and 
persons with disabilities, consistent with the rules and payment plans 
of the State, who need and want the supportive services in order to 
remain independent and avoid premature institutionalization.
    (3) Your ALF's residents must be tenants or residents of the 
multifamily project and must comply with the requirements applicable to 
the project. Thus, you cannot charge additional rent over what is 
charged to residents in the non-ALF portion of the project. All 
admissions to the ALF must be through the applicable project admissions 
office. However, persons accepted into the ALF also must sign an ALF 
admissions agreement which shall be an addendum to the applicable 
project lease.
    (4) At a minimum, your ALF must provide room, board (as defined in 
Section IV(B)(6)(below) and continuous protective oversight (CPO). CPO 
involves a range of activities and services that may include such 
things as awareness by management and staff of the occupant's condition 
and location as well as an ability to intervene in a crisis for 
dependent and relatively independent occupants on a 24-hour basis. The 
two occupant groups in an ALF are:
    (a) Independent Occupants: Awareness by management and staff of the 
occupant's condition and whereabouts as well as the availability of 
assistance for the occupants as needed.
    (b) Dependent occupants: Supervision of nutrition, assistance with 
medication and continuous responsibility for the occupants' welfare.
    (5) Anyone moving into an ALF unit must agree to accept as a 
condition of occupancy the board and services required for the purpose 
of complying with state and local law and regulation. However, 
occupancy in an ALF unit may not be conditioned on receipt of other 
services or board not required by state or local requirements.
    (6) Your ALF must offer three meals per day to each resident.
    (a) Residents whose apartments have kitchens must take at least the 
number of meals a day provided by the facility, per their mandatory 
meals requirement,

[[Page 21798]]

or as required by state or local rules, if more stringent. If the 
facility does not have a mandatory meals plan, then state and local 
rules govern.
    (b) Residents in projects which were originally constructed without 
kitchens in their units must take such meals as required by their 
mandatory meals agreement, or by the state's mandated requirements if 
more stringent (e.g., 2 meals, 2 snacks daily).
    In either case, ALF management must coordinate meals requirements 
with the needs of residents who are out part of the day (e.g., in day 
care). The meals program may not be operated at a profit by the project 
owner.
    (7) Your ALF's operation must be part of the project owner's 
management organization. Some or all of its functions may be contracted 
out. The ALF must predicate its budget on a two-tiered structure under 
which board and supportive service income and expenses must be 
maintained separately and independently from the regular income and 
expenses of the applicable project. The two components of ALF costs 
are:
    (a) Charges/payment for board, which may be on a sliding scale or 
any other equitable fee system; and
    (b) Charges/payment for necessary supportive services, which may 
include a combination of resident fees, Medicaid and/or other third 
party payments.
    (8) Priority admissions for ALF units are as follows:
    (a) Current residents desiring an ALF unit and meeting the program 
requirements (no resident can be required to accept an ALF unit).
    (b) Qualified individuals or families needing ALF services who are 
already on the project's waiting list;
    (c) Qualified individuals or families in the community needing ALF 
services wanting to be added to the project's waiting list; and

    Note: Qualified disabled non-elderly persons needing assisted 
living services are eligible to occupy these units on the same basis 
as elderly persons, except for section 202 project rental assistance 
contracts (PRAC) projects and unused/underutilized commercial 
properties.

    (9) The management of the project must set up a separate waiting 
list for ALF units. ALF units must be for eligible residents who meet 
the admissions/discharge requirements as established for assisted 
living by State and local licensing, or HUD frailty requirements under 
24 CFR 891.205 if more stringent.
    (10) Costs of meals and supportive services are not covered by this 
HUD grant. These items must be paid for through other sources (e.g., a 
mix of resident fees and/or third party providers). Evidence of third 
party commitment(s) must be included as part of the application. (See 
Section VI B(6) of this NOFA.) The assisted living supportive services 
program must promote independence and provide personal care assistance 
based on individual needs in a home-like environment. In accordance 
with Section 504 of the Rehabilitation Act of 1973 and HUD's 
regulations at 24 CFR 8.4(d), the project must deliver services in the 
most integrated setting appropriate to the needs of qualified 
individuals with disabilities (see Section VI(B)(8)(b) through (c) of 
this NOFA).
    (11) Upon receipt of a grant under this program, all project owners 
participating in the ALCP must provide a Declaration of Restrictive 
Covenants (DRC), which will be recorded with the land, to retain the 
low income character of the housing, and to maintain the project 
(including the ALF), as a moderate, low, or very low income facility 
(as appropriate) for at least 20 years beyond the current 40-to-50 year 
term of the mortgage loan or capital advance. Recipients of grant funds 
to convert unused or underutilized commercial property must provide a 
DRC for at least 20 years or for the term of the mortgage on the 
property whichever is longer.
    (12) This program does not allow permanent displacement of any 
resident living in the project at the time the application was 
submitted to HUD. (HUD will only provide temporary relocation costs for 
current tenants if they must vacate their unit while conversion work is 
underway (normal temporary relocation costs include increases in rent, 
reconnection of telephones, moving costs and appropriate out-of-pocket 
expenses)).
    (13) The ALCP requires service coordination responsible for linking 
the ALF to services in the community which are available to low-income 
persons. All projects funded under this NOFA must have sufficient 
service coordination in place, or request additional funds, if 
appropriate, to ensure that services meeting licensing requirements are 
available to ALF residents on an ongoing basis. Service coordination 
must be described in the application (see Section VI(B)(8)(b) through 
(c) of this NOFA). If you need to enhance an existing service 
coordination program or add one where it does not exist, you may apply 
for funding through the Service Coordinator NOFA, published elsewhere 
in this SuperNOFA, and attach a copy of the Form HUD 424 so indicating 
the request to the ALCP application. Alternatively, you may show 
evidence that funding for the enhanced service coordination is provided 
by other sources and indicate such funding on the HUD Form 424 which is 
exhibit 10(a) of your ALF application. If you are funded under this 
NOFA and requested new or enhanced service coordination you will be 
funded first under the service coordinator NOFA.

    Note: If you are a Section 202 PRAC project owner or an owner 
with unused or underutilized commercial properties, you are NOT 
eligible to request funding under the service coordinator NOFA. 
Section 202 PRAC owners can pay for the service coordinator out of 
PRAC funds.

    In addition to above requirements, the following applicable 
guidelines are stated:
    (a) The ALF must be staffed either directly or through coordination 
with local agencies, depending on state regulations or local 
requirements. These may also serve non-ALF residents of the project on 
a time available and appropriate fee basis.
    (b) The ALF may cater to the special needs of residents depending 
on their condition or diagnosis, such as Alzheimer's disease. If it 
does so, the design/environment of such facilities must accommodate 
those needs, e.g., dementia special care unit. However, the ALF cannot 
provide a service it is not licensed by the State or locality to 
provide.

    Note 1: Owners of section 202/PRAC projects are reminded that 
they may include a PRAC payment of up to $15/unit/month not to 
exceed 15% of the total program cost, consistent with 24 CFR 
891.225(b)(2) to cover part of the cost of meals and/or supportive 
services for frail elderly residents, including residents of the 
ALF.


    Note 2: Training for ALF staff is an eligible project cost under 
existing operating procedures.

    For further information on ALFs, please refer to Handbook 4600.1, 
CHG-1, ``Mortgage Insurance for Residential Care Facilities,'' Chapter 
13. This Handbook and recent ALF program Notices are accessible through 
HUDCLIPS on HUD's web site. The URL for the HUDCLIPS Database Selection 
Screen is http://www.hudclips.org/subscriber/cgi/legis.cgi. These 
notices are in the Handbooks and Notices--Housing Notices database. 
Enter only the number without the letter prefix (e.g., 99-16) in the 
``Document number'' to retrieve the program notice.
    For further guidance on service coordinators, please refer to 
Handbook 4381.5 REV-2, CHANGE-2, Chapter 8, ``The Management Agent's 
Handbook,''

[[Page 21799]]

which is also available through the HUDCLIPS database.
    (E) Compliance with Other Program Requirements: By the submission 
of the application for grant funds, the Owner is certifying to comply 
with the following program requirements:
    (1) Establish a residual receipt account as soon as there is 
surplus cash available, if applicable.
    (2) Apply for an ALF license with due diligence and in a timely 
fashion.
    (3) Comply with the requirements of the Fair Housing Act, Title VI 
of the Civil Rights Act, the Age Discrimination Act of 1975, Section 3 
of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and 
the implementing regulations at 24 CFR part 135, the affirmative fair 
housing marketing requirements of 24 CFR part 200, subpart M and the 
implementing regulations at 24 CFR part 108, which requires that the 
project be marketed to those least likely to apply including those who 
are not generally served by the agency administering the program, and 
other applicable Federal, State and local laws prohibiting 
discrimination and promoting equal opportunity including affirmatively 
furthering fair housing, and other certifications listed in the 
application.
    (4) Comply with section 232 of the National Housing Act, as 
applicable, the Uniform Federal Accessibility Standards (24 CFR 40.7), 
section 504 of the Rehabilitation Act of 1973 and HUD's implementing 
regulations at 24 CFR part 8, and the design and construction 
requirements of the Fair Housing Act and HUD's implementing regulations 
at 24 CFR part 100, and the Americans with Disabilities Act of 1990 for 
all portions of the development physically affected by this proposal;
    (5) Comply with the Davis-Bacon requirements and the Contract Work 
Hours and Safety Standards Act as applied to this program. While it has 
been determined that Davis-Bacon does not apply statutorily to the 
ALCP, the Department has administratively determined that Davis-Bacon 
standards and overtime rates in accordance with the Contract Work Hours 
and Safety Standards Act will be adhered to in any ALCP conversion 
grant in which the total cost of the physical conversion to an ALF (and 
including any additional renovation work undertaken at the same time) 
is $500,000 or more (this includes ALCP grant funds, owner funds, or 
any third party funds loaned or granted in support of the conversion or 
other renovation for the project associated with this grant), and in 
which the ALF portion of the project is 12 units or more.

V. Application Selection Process

    (A) Review for Curable Deficiencies. You should ensure that your 
application is complete before submitting it to HUD.
    HUD will screen all applications received by the deadline for 
curable deficiencies. With respect to correction of deficient 
applications, HUD may not, after the application due date and 
consistent with HUD's regulations in 24 CFR part 4, subpart B, consider 
any unsolicited information an applicant may want to provide. HUD may 
contact an applicant to clarify an item in the application or to 
correct technical deficiencies. Please note, however, that HUD may not 
seek clarification of items or responses that improve the substantive 
quality of a response to any selection factors. In order not to 
unreasonably exclude applications from being rated and ranked, HUD may 
contact applicants to ensure proper completion of the application and 
will do so on a uniform basis for all applicants. Examples of curable 
(correctable) technical deficiencies include failure to submit the 
proper certifications or failure to submit an application that contains 
an original signature by an authorized official. In each case, under 
this NOFA, the appropriate HUD Multifamily Hub Office will notify you 
in writing by describing the clarification or technical deficiency. You 
must submit clarifications or corrections of technical deficiencies in 
accordance with the information provided by the Hub Office 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. The following is 
a list of the deficiencies that will be considered curable in ALCP 
applications:

Exhibits

(1) *(a) Articles of Incorporation, or certification of Articles of 
Incorporation.
*(b) By-laws, or certification of by-laws.
(3) Evidence of occupancy for at least five years (not applicable to 
commercial facilities).
(5) (c) Original project plans.
(h) Relocation (not applicable to commercial property).
(7) Evidence of Permissive Zoning.
(10) Certifications and Forms
    (a) HUD Form 424, Application for Federal Assistance, including 
Federal Assistance Funding Matrix, and Compliance with Executive Order 
12372.
    (b) HUD Form 424B, Applicant Assurances and Certifications, 
Certification of a Drug-free Workplace, Certification to Influence 
Federal Transaction and Standard Form LLL, Disclosure of Lobbying 
Activities and Certification Regarding Debarment and Suspension.
    (c) Form HUD 2880, Applicant/Recipient Disclosure/Update Report 
including Social Security and Employment Identification numbers.
    (d) Form HUD-2991, Certification of Consistency with the 
Consolidated Plan (Plan), for the Jurisdiction in which the Proposed 
ALF will be located.
    The appropriate Hub Office will notify you in writing if your 
application is missing any of the exhibits listed above and you will be 
given 14 days from the date of receipt of the HUD notification to 
submit the information required to cure the noted deficiencies. The 
exhibits identified by an asterisk (*) must be dated on or before the 
application deadline date. If not so dated the application will be 
rejected.
    After the completeness review, HUD staff will review your 
application to determine whether the application meets the threshold 
requirements listed below. Only if your application meets all the 
threshold requirements is it eligible to be rated and ranked. 
Applications that do not pass threshold will be rejected.
    (B) Threshold Review. In order to pass threshold, you must:
    (1) Be in compliance with all fair housing and civil rights laws, 
statutes, regulations, and executive orders as enumerated in 24 CFR 
5.105(a), and as noted earlier in this NOFA under Sections III(B)(2) 
and IV(E).
    (2) Be an eligible applicant.
    (3) Not request more funds than advertised.
    (4) Additionally, HUD will also reject your application if the SSP 
and/or commitment and support letter(s) from the appropriate funding 
organizations and the appropriate licensing agency(ies):
    (i) Are not submitted with your application;
    (ii) Indicate that the ALF units, facilities, meals and supportive 
services to be provided are not designed to meet the special needs of 
the residents who will reside in the ALF as defined in this NOFA,
    (iii) Do not show commitment for funding the meals and supportive 
services proposed; or
    (iv) Indicate that the project as proposed will not meet the 
licensing

[[Page 21800]]

requirements of the appropriate State/local agency(ies).
    (C) Review Panels. The Office of Housing's Multifamily Hubs will 
establish panels to review all eligible applications that have passed 
threshold. The panels may include knowledgeable persons not currently 
employed by HUD.
    (D) Rating of Applications (See paragraph below for selection of 
applications for commercial properties).
    HUD staff teams will review and rate ALCP applications in 
accordance with the Ranking and Selection procedures (see Section V(F) 
of this NOFA). All applications will be either rated or technically 
rejected at the end of technical review. If your application meets all 
program eligibility requirements after completion of technical review, 
it will be rated according to the rating selection factors in Section 
V(G) of this NOFA. HUD reserves the right to reduce the amount 
requested in the application if any proposed components are ineligible 
or if the cost of items is not deemed reasonable. HUD will not reject 
an ALCP application based on technical review without notifying you of 
that rejection with all the reasons for the rejection, and providing 
you an opportunity to appeal. As discussed above, you will have 14 
calendar days from the date of HUD's written notice to appeal a 
technical rejection to the Multifamily Hub where the applications were 
sent originally. HUD staff will make a determination on an appeal 
before finalizing selection recommendations.
    (E) Applicant Debriefing. All requests for debriefing must be made 
in writing and submitted to the local Hub in which you applied for 
assistance. Materials provided to you during your debriefing will 
include the final scores you received for each rating factor, final 
evaluator comments for each rating factor, and the final assessment 
indicating the basis upon which assistance was provided or denied. 
Information regarding this procedure may be found in the General 
Section of the SuperNOFA.
    (F) Ranking and Selection Procedures. (Paragraphs (F)(1)-(4) are 
not applicable to applicants of commercial properties.)
    Applications submitted in response to this NOFA that are eligible, 
pass threshold and have a total score of 75 points (or more) are 
eligible for ranking and selection. (Applications for the conversion of 
commercial properties with a score of at least 75 points will not be 
ranked but will be submitted to HUD Headquarters for selection.)
    (1) Hub staff teams will be established for ALCP review in each Hub 
to do the application ratings (see Section V(D) above). See list of 
Hubs in Appendix A of this NOFA.
    (2) From within rank order, Hub staff teams in each of the 18 Hubs 
will select the highest ranked applications from within that Hub in 
rank order, that can be funded from within the dollars available. Each 
Hub will select applications based on rank order up to and including 
the last application that can be funded out of each Hub's allocation. 
Hubs must not skip over any applications in order to select one based 
on the funds remaining.
    (3) After making the initial selections, however, Hubs may use any 
residual funds to select the next rank-ordered application by reducing 
the dollars requested by no more than 10 percent (10%) and reducing the 
number of units proposed, but in no case reducing the number of units 
below the financial threshold feasibility of five ALF units.
    (4) Funds remaining after these processes are completed will be 
returned to HUD Headquarters. HUD will use these funds first to fund 
Prentis Jewish Federation of the HUD Detroit Hub, whose Fiscal Year 
2002 ALCP application was not funded due to HUD error. Second, HUD 
Headquarters will use these funds to restore units to any project 
reduced as a result of using the residual grant funds in a Hub. 
Finally, HUD will use these funds for selecting one or more additional 
applications based on the Hubs rating and rankings, beginning with the 
highest rated application within the 18 Hubs. Only one application will 
be selected per Hub from the national residual amount. If there are no 
approvable applications in other Hubs, the process will begin again 
with the selection of the next highest rated application within the 
remaining Hubs. This process will continue until all approvable 
applications are selected using the available remaining funds. If there 
is a tie score between two or more applications, and there are 
insufficient residual funds to cover all tied applications, HUD 
Headquarters staff will choose the winning application(s) by lottery 
and/or reduction of grant requests consistent with the instructions 
above.
    (5) Up to 2 applications will be selected using the $10 million 
set-aside to provide grant funds to nonprofit applicants proposing to 
convert unused or underutilized commercial properties into assisted 
living. HUD Multifamily Hubs will review applications for commercial 
properties for completeness and compliance with the eligibility 
criteria set forth in Section III of this NOFA. Hub staff will forward 
applications to Headquarters providing the application was received by 
the deadline date, meets all eligibility criteria, proposes reasonable 
costs for eligible activities, includes all technical corrections by 
the designated deadline date and must have received a score of 75 
points or more. Headquarters will select no more than 2 applications on 
a first-come, first-served basis that can be funded within the 
$10,000,000 available.

    Note: Only applications that can be fully funded will be 
selected. Any remaining funds after this selection process will be 
returned to the funds allocated for eligible multifamily assisted 
projects.

    (G) Factors For Award Used To Evaluate and Rate Applications.
    HUD will rate ALCP applications that successfully complete 
technical processing using the Rating Factors set forth below and in 
accordance with the application submission requirements identified in 
Section VI(B) of this NOFA, below. The maximum number of points an 
application may receive under this program is 100.
    The Department encourages applicants to partner, fund or sub-
contract with grassroots organizations, including faith-based and other 
community-based organizations in conducting their work programs. (See 
the General Section of the SuperNOFA for the definition of ``grassroots 
organizations'').

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (20 Points)

    This factor addresses your capacity to carry out the conversion in 
a timely, cost-conscious and effective manner. It also reviews your 
experience with the supportive services which the ALF intends to 
provide to elderly residents, especially in such areas as meals, 24-
hour staffing and on-site health care. Submit information responding to 
this factor in accordance with Application Submission Requirements in 
Sections VI(B)(5)(a), (8)(h), and of this NOFA.
    In rating this factor, HUD will consider the extent to which your 
application demonstrates your ability to carry out a successful 
conversion of the project and to implement the plan to deliver the 
supportive services on a long-term basis, considering the following:
    (1) (9 points). The practicality of your plan and timetable to 
carry out the physical conversion of the development to the ALF.
    (2) (10 points). Your past experience in providing or arranging for 
supportive

[[Page 21801]]

services either on or off site for those who are frail. (If you are 
applying to convert an unused or underutilized commercial facility to 
assisted living and you do not own or operate a project with frail 
elderly residents, you must provide information on any past experience 
in providing or arranging supportive services for those who are frail.) 
Examples are: Meals delivered to apartment of resident or in a 
congregate setting (2 points), arranging for or providing personal care 
(3 points), providing 24-hour staffing (1 point), providing or making 
available on-site preventive health care (2 points) and other support 
services (2 points).
    (3) (1 point). Your organization is a ``grassroots'' organization 
as defined in the General Section of the SuperNOFA.

Rating Factor 2: Need/Extent of the Problem (20 Points)

    This factor addresses the extent to which the conversion is needed 
by the categories of elderly persons and persons with disabilities that 
the ALF is intended to serve (very low income elderly persons and 
persons with disabilities who have limitations in three or more 
activities of daily living). The application must provide evidence of 
current needs among project residents (not applicable to applications 
proposing to convert unused or underutilized commercial facilities) and 
needs of potential residents in the housing market area for such 
persons including economic and demographic information on very-low 
income frail elderly and persons with disabilities and information on 
current assisted living resources in the market area.
    The factor also addresses your inability to fund the repairs or 
conversion activities from existing financial resources. In making this 
determination, HUD will consider project financial information or the 
organization's financial information for unused or underutilized 
commercial facilities. Submit information responding to this factor in 
accordance with Application Submission Requirements in Section 
VI(B)(4)(a) through (d), (2)(c) and (9)(a) through (c) of the NOFA. In 
evaluating this factor, HUD will consider:
    (1) (7 points). The need for assisted living among the elderly and 
disabled residents of the project taking into consideration those 
currently in need and the depth of future needs given aging in place. 
(Not applicable to applications to convert unused or underutilized 
commercial facilities to assisted living.)
    (2) (3 points (10 points for applications to convert unused or 
underutilized commercial facilities to assisted living.)). The need for 
assisted living among very-low income elderly persons and persons with 
disabilities in the housing market area.
    (3) (9 points). Insufficient funding for any needed conversion 
work, as evidenced by the project's financial statements and 
specifically the lack of excess reserve for replacement dollars (R4R) 
and residual receipts. If the available R4R and residual receipts are 
less than 10% of the total funds needed = 9 points; if the available 
R4R and residual receipts are 10-50% of need = 5 points; and, if the 
available R4R and residual receipts are 51% or more of the total funds 
needed = 0 points). For commercial properties, if the available working 
capital exceeds 10 percent of the total conversion = 5 points; if the 
working capital is less than 10 percent of the total conversion = 9 
points.
    (4) (1 point). The Department will provide one (1) point to those 
applications which establish a connection between the proposed ALF and 
the community's Analysis of Impediments to Fair Housing Choice (AI) or 
other planning document that analyzes fair housing issues and is 
prepared by a local planning or similar organization.

Rating Factor 3: Soundness of Approach (40 Points)

    This factor addresses the quality and effectiveness of your 
proposal in addressing the proposed conversion, effectiveness of 
service coordination and management planning and the meals and 
supportive services which the ALF intends to provide and the extent to 
which you have evidenced general support for conversion by 
participating in your community's Consolidated Planning Process, 
involving the residents in the planning process (not applicable to 
applications proposing to convert unused or underutilized commercial 
facilities). There must also be a relationship between the proposed 
activities, the project's and the community's needs and purposes of the 
program funding for your application to receive points for this factor. 
Submit information responding to this factor in accordance with 
Application Submission Requirements in Sections VI(B)(2)(a) through 
(c), VI(B)(5)(b) through (e) and (h) and (7 and VI(B)(8))(a) through 
(e) and (g) and (h) of this NOFA. In evaluating this factor, HUD will 
consider the following:
    (1) (12 points). The extent to which the proposed ALF design will 
meet the special physical needs of frail elderly persons or persons 
with disabilities expected to be served at reasonable cost (consider 
the ALF design: meets needs = 12 points; ALF design partially meets 
needs = 6 points; and ALF design does not meet needs = 0 points).
    (2) (12 points). The extent to which the ALF's proposed management 
and operational plan ensures that the provision of both meals and 
supportive services planned will be accomplished over time. (Consider 
ALF design/management plan: meets needs of management operations = 12 
points; ALF design/management plan partially meets needs of management 
operations = 6 points; and ALF design/management plan does not meet 
needs of management operations = 0 points.)
    (3) (7 points). The extent to which the proposed supportive 
services meet the anticipated needs of the frail elderly and disabled 
residents (does meet = 7 points; partially meets needs = 4 points; and, 
does not meet needs = 0 points); and
    (4) (7 points). The extent to which the service coordination 
function is addressed and explained as onsite and sufficient, onsite 
and augmented or new, and addresses the ongoing procurement of needed 
services for the residents of the ALF (does meet = 7 points, partially 
meets = 4 points, does not meet = 0 points).
    (5) (2 points). The extent to which you demonstrated that you have 
been actively involved (or if not currently active, the steps you will 
take to become actively involved) in your community's Consolidated 
Planning/AI processes to identify and address a need/problem that is 
related in whole or part, directly or indirectly to the proposed 
project.

Rating Factor 4: Leveraging Resources (10 Points)

    This factor addresses your ability to secure other community 
resources which can be combined with HUD's grant funds to achieve 
program purposes. For the ALCP to succeed, you must generate local 
funding for the necessary supportive services to operate the ALF. HUD 
also encourages local funding for some of the necessary conversion 
work, or other work needed in the project (e.g., general modernization) 
which is not specifically linked to the ALF).
    Submit information responding to this factor in accordance with 
Application Submission Requirements in Section VI(B)(5)(f), (g), and 
(B)(6) and B(8)(f) of this NOFA.
    (1) (5 points). The extent to which there are commitments for the 
funding needed for the meals and the supportive services planned for 
the ALF and that the total cost of the estimated budget of

[[Page 21802]]

the ALF is covered. Consider 90% or more commitment for the total 
budget with no more than 10% general support = 5 points; 80-89.9% or 
more commitment for the total budget with no more than 20% general 
support = 4 points; 65-79.9% firm commitment with no more than 35% 
general support = 3 points; 40-64.9% firm commitment for the total 
budget with more than 60% general commitment = 2 points; less than 40% 
firm commitment for the total budget with no more than 60% general 
support = 0 points.
    (2) (3 points). The extent of local organizations' support which is 
firmly committed to providing at least 50 percent of the total cost of 
ALF conversion (consider 50% or more = 3 points, 20-49.9% = 2 points, 
and under 20% = 0 points).
    (3) (2 points). The extent of local organizational support which is 
firmly committed to providing funds for additional repair or retrofit 
necessary for the project NOT specifically directed to activities 
eligible under this NOFA (consider yes = 2 points, no = 0 points).

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    This factor reflects HUD's goal to embrace high standards of 
ethics, management and accountability. This factor emphasizes HUD's 
commitment to ensure that promises you made in the application are 
kept; and to ensure performance goals with outcomes are established and 
are met (see the General Section of this SuperNOFA for more detail). 
Outcomes may include the extent to which your project will implement 
practical solutions that will result in assisting residents in 
achieving independent living and an improved living environment, as 
well as the extent to which the project will be viable absent HUD funds 
but rely more on state, local and private funds. Submit information 
responding to this factor in accordance with Application Submission 
Requirements in Section VI(B)5(a)-(g)(2)(d), (B)(8)(a)-(e) of this 
NOFA.
    (1) (4 points). The extent to which your conversion timeframe 
reflect the length of time it will take to convert the units describing 
how residents will benefit from the conversion of the units; and how 
the converted units will result in ALF residents being able to age in 
place;
    (2) (2 points). The extent to which your assisted living facility 
will implement practical solutions that will result in assisting 
residents in achieving independent living and improved living 
environment.
    (3) (2 points). The extent to which you demonstrate that the 
project will be viable absent HUD funds while relying more on state, 
local and private funds.
    (4) (2 point). The extent to which there is an operating philosophy 
which promotes the autonomy and independence of the frail elderly 
persons it is intended to serve (is fully addressed = 2 points, no or 
not addressed = 0 points).

VI. Application Submission Requirements

    (A) Application--General. Your application must include all of the 
information, materials, forms, and exhibits listed in Section VI(B). In 
cases where your (i) articles of incorporation and (ii) by-laws have 
NOT changed since the project was originally approved by HUD, self-
certification to that effect--that the documents on file with HUD are 
current--is sufficient. Items in Section VI(B) for which self-
certification of currency is possible are denoted by a ``**''.
    In addition to the relief of paperwork burden in preparing 
applications, you will not have to submit certain new/recent 
information and exhibits you have previously prepared. See individual 
item descriptions, below to identify such items. An example of such an 
item may be the FY 2002 Annual Financial Statement.
    (B) General Application Requirements. (1) Application Summary for 
the Assisted Living Conversion Program and Evidence that you are a 
private non-profit organization or nonprofit consumer cooperative and 
have the legal ability to operate an ALF program, per the following:
    (a) Articles of Incorporation, constitution, or other 
organizational documents, or self-certification of these documents, if 
there has been no change in the Articles since they were originally 
filed with HUD;** and
    (b) By-laws, (for non-profits) or self-certification of by-laws, if 
there has been no change in the by-laws since they were originally 
filed with HUD.**
    (2) A description of your community ties and established linkages:
    (a) A description of your links to the community at large and to 
the minority and elderly communities in particular; and
    (b) A description of your efforts to involve elderly persons, 
including minority elderly persons and persons with disabilities in:
    (i) The development of the application;
    (ii) The development of the ALF operating philosophy;
    (iii) Review of the application prior to submission to HUD; and
    (iv) Your intent to involve eligible ALF residents in the operation 
of the project or not.
    Also, in communities that have significant numbers of persons with 
limited English proficiency, applicants should demonstrate that they 
have made the application available to the residents of the project (in 
their language(s)) AND requested and considered comments from them (in 
their language(s)). Applicants of converted commercial facilities 
should indicate that the application will be made available to the 
residents of the project in their language(s) and will request and 
consider comments from them in their language(s).
    (c) A description of your involvement in your community's 
Consolidated Planning and Analysis of Impediments to Fair Housing (AI) 
processes including:
    (i) An identification of the lead/facilitating agency(ies) that 
organizes/administers the processes;
    (ii) A listing of the Consolidated Plan/AI issue areas in which you 
participate; and
    (iii) The level of your participation in the processes, including 
active involvement with any neighborhood-based organizations, 
associations, or any committees that support programs and activities 
that enhance projects or the lives of residents of the projects, such 
as the one proposed in your application.
    If you are not currently active, describe the specific steps you 
will take to become active in the Consolidated Planning and AI 
processes. (Consult the local HUD Office for the identification of the 
Consolidated Plan community process for the appropriate area.)
    (d) A description of how the assisted living facility will 
implement practical solutions that will result in assisting residents 
in achieving independent living and improved living environment. The 
description should include a discussion of performance goals with 
performance indicators (see the General Section of the SuperNOFA for 
further detail).
    (3) Evidence of your project being in occupancy for at least five 
years as of the date of application to HUD. (Not applicable to 
commercial facilities.)
    (4) A market analysis of the need for the proposed ALF units, 
including information from both the project and the housing market, 
containing:
    (a) Evidence of need for the ALF by current project residents: (Not 
applicable to commercial facilities.)
    (i) A description of the demographic characteristics of the elderly 
residents

[[Page 21803]]

currently living in the project, including the current number of 
residents, distribution of residents by age and sex, an estimate of the 
number of residents with frailties/limitations in activities of daily 
living and an estimate of the number of residents in need of assisted 
living services. (Not applicable to commercial facilities.)
    (ii) A description of the services which are currently available to 
the residents and/or provided on or off-site and what services are 
lacking; (Not applicable to commercial facilities.)
    (b) Evidence of the need for ALF units by very low income elderly 
and disabled households in the market area; a description of the trend 
in elderly and disabled population and household change; data on the 
demographic characteristics of the very low income elderly in need of 
assisted living services (age, race, sex, household size and tenure) 
and extent of residents with frailty/limitations in existing federally-
assisted housing for the elderly (HUD and Rural Housing Service); and 
an estimate of the very low income elderly and disabled in need of 
assisted living taking into consideration any available State or local 
data.
    (c) A description of the extent, types and availability and cost of 
alternate care and services locally, such as: home health care, adult 
day care, housekeeping services, meals programs, visiting nurses, on-
call transportation services, health care and providers of supportive 
services who address the needs of the local low income population.
    (d) A description of how information in the community's Analysis of 
Impediments to Fair Housing Choice was used in documenting the need for 
the ALF (covering items in Section VI(B)(4)(a) and (b) of this NOFA).
    (5) A description of the physical ALF conversion, including the 
following:
    (a) How you propose to carry out the physical conversion (including 
a timetable and relocation planning).
    (b) A short narrative stating the number of units, special design 
features, community and office space/storage, dining and kitchen 
facility and staff space and the physical relationship to the rest of 
the project. Also, you must describe how this design will facilitate 
the delivery of services in an economical fashion in the most 
integrated setting appropriate to the needs of the participating 
residents with disabilities and accommodate the changing needs of the 
residents over at least the next 10 years.
    (c) A copy of the original plans for all units and other areas of 
the development, which will be included in the conversion. (If you are 
applying to convert an unused or underutilized commercial facility to 
assisted living, provide a copy of the original plans of the facility 
as well as a copy of the plans of the facility as most recently 
operated, if different).
    (d) A description of the conversion must clearly address the 
following accessibility issues: All door openings must have a minimum 
clear opening of 32 inches; and, all bathrooms and kitchens must be 
accessible to and functional for persons in wheelchairs, according to 
the ``Uniform Federal Accessibility Standards.''
    (e) Architectural sketches of the conversion to a scale of 1/4 inch 
to one foot that indicate the following:
    (i) All doors being widened;
    (ii) Typical kitchen and bathroom reconfiguration: show all 
wheelchair clearances, wall reinforcing, grab bars and elevations of 
counters and work surfaces;
    (iii) Bedroom/living/dining area modification, if needed;
    (iv) Any reconfigured common space;
    (v) Added/reconfigured office and storage space;
    (vi) Monitoring stations, and
    (vii) The kitchen and dining facility.
    All architectural modifications must meet section 504 and ADA 
requirements as appropriate.
    (f) A budget showing at least estimated costs for materials, 
supplies, fixtures and labor for each of the items listed in Section 
VI(B)(5)(e), items i through vii, above.
    (g) Include firm commitment letters with specific dollar amounts 
from appropriate organization(s) for conversion needs (within the scope 
of the ALF conversion NOFA) which will be supported by non-HUD funding.
    (h) A description of any relocation of current tenants including a 
statement that: (Not applicable to commercial property applicants.)
    (i) Indicates the estimated cost of temporary relocation payments 
and other related services;
    (ii) Identifies the staff organization that will carry out the 
relocation activities; and
    (iii) Identifies all tenants that will have to be temporarily moved 
to another unit within the development OR from the development during 
the period that the physical conversion of the project is under way.

    Note: If any of the relocation costs will be funded from sources 
other than the ALCP grant, you must provide evidence of a firm 
commitment of these funds. When evaluating applications, HUD will 
consider the total cost of proposals (i.e., cost of conversion, 
temporary relocation, service coordinator and other project costs).

    (6) A description of any retrofit or renovation which will be done 
at the project (with third party funds) that is separate and distinct 
from the ALF conversion. With such description, attach firm commitment 
letters from third party organizations in specific dollar amounts which 
will cover the cost of any work outside the scope of this NOFA.
    (7) Evidence of permissive zoning, showing that the modifications 
to include the ALF into the project as proposed are permissible under 
applicable zoning ordinances or regulations, or a statement of the 
proposed action required to make the proposed project permissible and 
the basis for your belief that the proposed action will be completed 
successfully within six months of the date of grant award by HUD (e.g., 
a summary of the results of any requests for rezoning and/or the 
procedures for obtaining special or conditional use permits on land in 
similar zoning classifications and the time required for such rezoning, 
or preliminary indications of acceptability from zoning bodies, etc.);
    (8) A supportive services plan (SSP), a copy of which must be 
submitted to the appropriate state and/or local agency as instructed in 
Section IV(B) of this NOFA. For those applicants needing to contact 
state Medicaid offices, a list is provided on the Internet at 
www.hcfa.gov/medicaid/medicaid.htm. The SSP must include:
    (a) A description of the supportive services needed for the frail 
elderly the ALF is expected to serve. This must include at least (i) 
meals and such other supportive services required locally or by the 
State, and (ii) such optional services or care to be offered on an ``as 
needed'' basis.
    Examples of both mandatory and optional services (which will vary 
from state to state) are: two meals and two snacks or three meals 
daily; 24-hour protective oversight; personal care; housekeeping 
services; personal counseling and transportation.
    (b) A description of how you will provide the supportive services 
to those who are frail and have disabilities (i.e., on or off-site or 
combination of on or off-site), including an explanation of how the 
service coordination role will facilitate the adequate provision of 
such services to ALF residents, and how the services will meet the 
identified needs of the residents. Also indicate how you intend to fund 
the service coordinator role.
    (c) A description of how the operation of your ALF will work. 
Address: (i) General operating procedures; (ii) ALF philosophy and how 
it will promote the

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autonomy and independence of the frail elderly and persons with 
disabilities; (iii) what will the service coordination function do and 
the extent to which this function already exists, or will be augmented 
or new; (iv) ALF staff training plans; and (v) the degree to which and 
how the ALF will relate to the day-to-day operations of the rest of the 
project.
    (d) The monthly individual rate for board and supportive services 
for the ALF listing the total fee and components of the total fee for 
the items required by state or local licensing AND list the appropriate 
rate for any optional services you plan to offer to the ALF residents. 
Provide an estimate of the total annual costs of the required board and 
supportive services you expect to provide and an estimate of the amount 
of optional services you expect to provide.
    (e) List who will pay for the board and supportive services (e.g., 
$------ for meals by sponsor, $------ for housekeeping services by city 
government; $------ for personal care by State Department of Health; 
$------ for ------ by state ------ program; $------ in fees by tenants; 
and, $------ by ------).
    The amounts and commitments from both tenants and/or providers must 
equal the estimated amounts necessary to cover the monthly rates for 
the number of people expected to be served. If you include tenant fees 
in the proposal, list and show any proposed scaling mechanism. All 
amounts committed/collected must equal the annualized cost of the 
monthly rates calculated by the expected percentage of units filled.
    (f) A support/commitment letter from each listed proposed funding 
source per paragraph (e), above, for the planned meals and supportive 
services listed in the application. The letter must cover the total 
planned annual commitment (and multiyear amount total, if different), 
length of time for the commitment, and the amounts payable for each 
service covered by the provider/paying organization. There must be a 
letter from EACH participating organization listed in Section 
VI(B)(8)(e) of this NOFA, above.
    (g) A support letter from each governmental agency which provides 
licensing for ALFs in that jurisdiction.
    (h) A description of your relevant experience in arranging for and/
or delivering supportive services to frail residents. (If you are 
applying to convert an unused or underutilized commercial facility to 
assisted living, provide information on your relevant experience in 
arranging for and/or delivering supportive services to frail elderly 
persons). The description should include any supportive services 
facilities owned/operated; your past or current involvement in any 
project-based programs that demonstrates your management capabilities. 
The description should include data on the facilities and specific 
meals and/or supportive services provided on a regular basis, the 
racial/ethnic composition of the populations served, if available, and 
information and testimonials from residents or community leaders on the 
quality of the services.

    Note: If a funds request for service coordination for the ALF 
and/or the whole project is included as part of this application, 
the Form HUD-424, indicating the dollars requested must be attached 
as Exhibit 10(a). Do not attach the whole service coordinator 
application.

    (9) A description of your project's resources: (Items (9)(a)-(b) 
are not applicable to applicants of commercial property.)
    (a) A copy of the most recent project Repair and Replacement (R4R) 
account statement, and an R4R analysis showing plans for its use over 
the next five years, and any approvals received from the HUD field 
office to date.
    (b) A copy of the most recent Residual Receipts Account statement. 
Indicate any approvals for the use of such receipts from the field 
office for over $500/unit.
    (c) Annual Financial Statement (AFS). If your FY 2003 AFS was due 
to REAC more than 120 days BEFORE the due date for this application, in 
the interest of reducing work burden, only include the date that it was 
sent to REAC. If the AFS was due to REAC 120 days or less from the due 
date of this application, you MUST include a paper copy. For commercial 
properties, the most recent financial statement or annual report.
    (10) Forms and Certifications. The following exhibits, forms, 
certifications and assurances are required:
    (a) Form HUD-424, Application for Federal Assistance, including 
Federal Assistance Matrix, and compliance with Executive Order 12372 (a 
certification that you have submitted a copy of your application, if 
required, to the State agency (Single Point of Contact) for State 
review in accordance with Executive Order 12372 (see the General 
Section of the SuperNOFA for instructions in submitting this form).
    (b) Form HUD-424B, Applicant Assurances and Certifications, 
Certification of a Drug-free Workplace, Certificaiton to Influence 
Federal Transaction and Standard Form LLL, Disclosure of Lobbying 
Activities and Certification Regarding Debarment and Suspension.
    (c) Form-HUD 2880, Applicant/Recipient Disclosure/Update Report, 
including Social Security and Employment Identification numbers. A 
disclosure of assistance from other government sources received in 
connection with the project.
    (d) Form HUD-2991, Certification of Consistency with the 
Consolidated Plan (Plan), for the jurisdiction in which the proposed 
ALF will be located. The certification must be made by the unit of 
general local government if it is required to have, or has, a complete 
Plan. Otherwise, the certification may be made by the State, or by the 
unit of general local government if the project will be located within 
the jurisdiction of the unit of general local government authorized to 
use an abbreviated strategy, and if it is willing to prepare such a 
Plan.
    All certifications must be made by the public official responsible 
for submitting the plan to HUD. The certifications must be submitted as 
part of the application by the application submission deadline date set 
forth herein. The Plan regulations are published in 24 CFR part 91.

VII. Environmental Requirements

    Your ALCP application is subject to the National Environmental 
Policy Act of 1969 and applicable related Federal environmental 
authorities. (See 24 CFR part 50, as applicable.) An environmental 
review will be completed by HUD before the award of any grant under 
this program. Pursuant to 24 CFR part 55, ALCP projects are critical 
actions for purposes of floodplain management review.

VIII. Authority

    The Assisted Living Conversion Program is authorized by Section 
202(b) of the Housing Act of 1959 (12 U.S.C. 1701q-2) and the Fiscal 
Year 2003 Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act.

Appendix A.--HUD Field Office List for Mailing Assisted Living 
Conversion Program Applications

HUD--Boston Hub

Boston Office, Thomas P. O'Neill, Jr., Federal Building, 10 Causeway 
Street, Room 301, Boston, MA 02222-1092, (617) 565-5234, TTY Number: 
(617) 565-5453

HUD--New York Hub

New York Office, 26 Federal Plaza--32nd Floor, New York, NY 10278-
0068, (212) 264-8000, TTY Number: (212) 264-0927
HUD--Buffalo Hub

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Buffalo Office, Lafayette Court Building, 465 Main Street, 2nd 
Floor, Buffalo, NY 14203, (716) 551-5755 ext 5000, TTY Number: (716) 
551-5787

HUD--Philadelphia Hub

Philadelphia Office
The Wanamaker Building, 100 Penn Square East, Philadelphia, PA 
19107-3380, (215) 656-0600, TTY Number: (215) 656-3452

HUD--Baltimore Hub

Baltimore Office, City Crescent Building, 10 South Howard Street, 
5th Floor, Baltimore, MD 21201-2505, (410) 962-2520, TTY Number: 
(410) 962-0106

HUD--Greensboro Hub

Greensboro Office, Koger Building, 2306 West Meadowview Road, 
Greensboro, NC 27407-3707, (336) 547-4069, TTY Number: (336) 547-
4020

HUD--Atlanta Hub

Atlanta Office, 40 Marietta Street--Five Points Plaza, Atlanta, GA 
30303-2806, (404) 331-4976, TTY Number: (404) 730-2654

HUD--Jacksonville Hub

Jacksonville Office, Southern Bell Tower, 301 West Bay Street, Suite 
2200, Jacksonville, FL 32202-5121, (904) 232-2626, TTY Number: (904) 
232-2631

HUD--Chicago Hub

Chicago Office, Ralph H. Metcalfe Federal Building, 77 West Jackson 
Boulevard, Chicago, IL 60604-3507, (312) 353-5680, TTY Number: (312) 
353-5944

HUD--Detroit Hub

Detroit Office, Patrick V. McNamara Federal Building, 477 Michigan 
Avenue--Suite 1635, Detroit, MI 48226-2592, (313) 226-7900, TTY 
Number: (313) 226-6899

HUD--Columbus Hub

Columbus Office, 200 North High Street, 7th Floor, Columbus, OH 
43215-2499, (614) 469-5737, TTY Number: (614) 469-6694

HUD--Minneapolis Hub

Minneapolis Office, 920 Second Avenue, South, Minneapolis, MN 55401-
2195, (612) 370-3000, TTY Number: (612) 370-3186

HUD--Ft. Worth Hub

Ft. Worth Office, 801 N. Cherry Street, P.O. Box 2905, Fort Worth, 
TX 76113-2905, (817) 978-9000, TTY Number: (817) 978-9273

HUD--Kansas City Hub

Kansas City Office, Room 200, Gateway Tower II, 400 State Avenue, 
Kansas City, KS 66101-2406, (913) 551-5462, TTY Number: (913) 551-
6972

HUD--Denver Hub

Denver Office, 633 17th Street, Denver, CO 80202-3607, (303) 672-
5343, TTY Number: (303) 672-5248

HUD--San Francisco Hub, San Francisco Office, Philip Burton Federal 
Building and U.S. Courthouse, 450 Golden Gate Avenue, P.O. Box 36003, 
San Francisco, CA 94102-3448, (415) 436-6550, TTY Number: (415) 436-
6594

HUD--Los Angeles Hub

Los Angeles Office, 611 West 6th Street, Suite 800, Los Angeles, CA 
90017-3106, (213) 894-8000, TTY Number: (213) 894-8133

HUD--Seattle Hub

Seattle Office, Seattle Federal Office Building, 909 1st Avenue, 
Suite 200, Seattle, WA 98104-1000, (206) 220-5101, TTY Number: (206) 
220-5185

    Note: The first line of the mailing address for all offices is 
the U. S. Department of Housing and Urban Development. Telephone 
numbers listed are not toll free.

Appendix B

HUD--Boston Hub

Hartford Office, One Corporate Center, 19th Floor, Hartford, CT 
06103-3220, (860) 240-4800, TTY Number: (860) 240-4665
Boston Office, Room 301, Thomas P. O'Neill, Jr., Federal Building, 
10 Causeway Street, Boston, MA 02222-1092, (617) 565-5234, TTY 
Number: (617) 565-5453
Manchester Office, Norris Cotton Federal Building, 275 Chestnut 
Street, Manchester, NH 03101-2487, (603) 666-7510, TTY Number: (603) 
666-7518
Providence Office, 10 Weybosset Street, Sixth Floor, Providence, RI 
02903-2808, (401) 528-5230, TTY Number: (401) 528-5403

HUD--New York Hub

New York Office, 26 Federal Plaza, Room 3200, New York, NY 10278-
0068, (212) 264-8000, TTY Number: (212) 264-0927

HUD--Buffalo Hub

Buffalo Office, Lafayette Court Building, 465 Main Street, 2nd 
Floor, Buffalo, NY 14203-1780, (716) 551-5755 ext 5000, TTY Number: 
(716) 551-5787

HUD--Philadelphia Hub

Philadelphia Office, The Wanamaker Building, 100 Penn Square East, 
Philadelphia, PA 19107-3380, (215) 656-0600, TTY Number: (215) 656-
3452
Charleston Office, Suite 708, 405 Capitol Street, Charleston, WV 
25301-1795, (304) 347-7000, TTY Number: (304) 347-5332
Newark Office, Thirteenth Floor, One Newark Center, Newark, NJ 
07102-5260, (973) 622-7900, TTY Number: (973) 645-3298
Pittsburgh Office, 339 Sixth Avenue, Sixth Floor, Pittsburgh, PA 
15222-2515, (412) 644-6428, TTY Number: (412) 644-5747

HUD--Baltimore Hub

Baltimore Office, Fifth Floor, City Crescent Building, 10 South 
Howard Street, Baltimore, MD 21201-2505, (410) 962-2520, TTY Number: 
(410) 962-0106
Washington, DC Office, 820 First Street, NE, Suite 300, Washington, 
DC 20002-4205, (202) 275-9200, TTY Number: (202) 275-0772
Richmond Office, The 3600 Centre 600 East Broad Street, Richmond, VA 
23219, (804) 771-2100 ext. 3839, TTY Number: (804) 771-2038

HUD--Greensboro Hub

Greensboro Office, Koger Building, 2306 West Meadowview Road, 
Greensboro, NC 27407-3707, (336) 547-4069, TTY Number: (336) 547-
4020
Columbia Office, Strom Thurmond Federal Building, 1835-45 Assembly 
Street, Columbia, SC 29201-2480, (803) 765-5592, TTY Number: (803) 
253-3209

HUD--Atlanta Hub

Atlanta Office, Richard B. Russell Federal Building 75 Spring 
Street, S.W., Suite 600, 40 Marietta Street--Five Points Plaza, 
Atlanta, GA 30303-3388 2806, (404) 331-4976, TTY Number: (404) 730-
2654
San Juan Office, Edificio Administracion de Terrenos 171 Carlos 
Chardon Avenue, Suite 301, San Juan, PR 00918-0903, (787) 766-5400, 
TTY Number: (787) 776-5609
Louisville Office, 601 West Broadway, Louisville, KY 40202, (502) 
582-5251, TTY Number: 1-800-648-6056
Knoxville Office, Third Floor, John J. Duncan Federal Building 710 
Locust Street, Knoxville, TN 37902-2526, (423) 545-4384, TTY Number: 
(423) 545-4559
Nashville Office, Suite 200, 251 Cumberland Bend, Nashville, TN 
37228-1803, (615) 736-5213, TTY Number: (615) 736-2886

HUD--Jacksonville Hub

Jacksonville Office, Southern Bell Tower, 301 West Bay Street, Suite 
2200, Jacksonville, FL 32202-5121, (904) 232-2626, TTY Number: (904) 
232-2631
Birmingham Office, Medical Forum Building, 920 22nd Street, North, 
Suite 900, Birmingham, AL 35203-5301, (205) 731-2624, TTY Number: 
(205) 731-2624
Jackson Office, Doctor A.H. McCoy Federal Building, 100 West Capitol 
Street, Suite 910, Jackson, MS 39269-1096, (601) 965-4700, TTY 
Number: (601) 965-4171

HUD--Chicago Hub

Chicago Office, Ralph H. Metcalfe Federal Building, 77 West Jackson 
Boulevard, Chicago, IL 60604-3507, (312) 353-5680, TTY Number: (312) 
353-5944
Indianapolis Office, 151 North Delaware Street, Indianapolis, IN 
46204-2526, (317) 226-6303, TTY Number: (317) 226-7081

HUD--Detroit Hub

Detroit Office, Patrick V. McNamara Federal Building, 477 Michigan 
Avenue, Suite 1635, Detroit, MI 48226-2592, (313) 226-7900, TTY 
Number: (313) 226-6899
Grand Rapids Office, Trade Center Building, 50 Louis Street, NW, 
Third Floor, Grand Rapids, MI 49503-2648, (616) 456-2100, TTY 
Number: (616) 456-2159

HUD--Columbus Hub

Columbus Office, 200 North High Street, 7th Floor, Columbus, OH 
43215-2499, (614) 469-5737, TTY Number: (614) 469-6694
Cleveland Office, US Bank Centre 1350 Euclid Avenue, Suite 500, 
Cleveland, OH 44115-1815, (216) 522-4058, TTY Number: (216) 522-2261

[[Page 21806]]

HUD--Minneapolis Hub

Minneapolis Office, 920 Second Avenue, South, Minneapolis, MN 55401-
2195, (612) 370-3000, TTY Number: (612) 370-3186
Milwaukee Office, Suite 1380, Henry S. Reuss Federal Plaza, 310 West 
Wisconsin Avenue, Suite 1380, Milwaukee, WI 53203-2289, (414) 297-
3214 ext. 8673, TTY Number: (414) 297-1423

HUD--Ft. Worth Hub

Little Rock Office, Suite 900, TCBY Tower, 425 West Capitol Avenue, 
Little Rock, AR 72201-3488, (501) 324-5931, TTY Number: (501) 324-
5931
New Orleans Office, Ninth Floor, Hale Boggs Federal Building, 501 
Magazine Street, New Orleans, LA 70130-3099, (504) 589-7200, TTY 
Number: (504) 589-7279
Ft. Worth Office, 801 N. Cherry Street, P.O. Box 2905, Fort Worth, 
TX 76113-2905, (817) 978-9000, TTY Number: (817) 978-9273
Houston Office, Suite 200, Norfolk Tower, 2211 Norfolk, Houston, TX 
77098-4096, (713) 313-2274, TTY Number: (713) 834-3274
San Antonio Office, 106 South St. Mary's, Suite 405, San Antonio, TX 
78205, (210) 475-6800, TTY Number: (210) 475-6885

HUD--Great Plains

Des Moines Office, Room 239, Federal Building, 210 Walnut Street, 
Des Moines, IA 50309-2155, (515) 284-4583, TTY Number: (515) 284-
4728
Kansas City Office, Room 200, Gateway Tower II, 400 State Avenue, 
Kansas City, KS 66101-2406, (913) 551-5462, TTY Number: (913) 551-
6972
Omaha Office, Executive Tower Centre, 10909 Mill Valley Road, Omaha, 
NE 68154-3955, (402) 492-3122, TTY Number: (402) 492-3183
St. Louis Office, Third Floor, Robert A. Young Federal Building, 
1222 Spruce Street, Room 3207, St. Louis, MO 63103-2836, (314) 539-
6583, TTY Number: (314) 539-6331
Oklahoma City Office, 500 West Main Street, Suite 400, Oklahoma 
City, OK 73102-2233, (405) 553-7401, TTY Number: 1-800-877-8339

HUD--Denver Hub

Denver Office, 633 17th Street, Denver, CO 80202-3607, (303) 672-
5343, TTY Number: (303) 672-5248

HUD--San Francisco Hub

Phoenix Office, One North Central 600, Phoenix, AZ 85004, 
(602) 379-4434, TTY Number: (602) 379-4464
San Francisco Office, Philip Burton Federal Building and U.S. 
Courthouse, 450 Golden Gate Avenue, P.O. Box 36003, San Francisco, 
CA 94102-3448, (415) 436-8356, TTY Number: (415) 436-6594
Honolulu Office, 500 Ala Moana Boulevard, Suite 3A, Honolulu, HI 
96813, (808) 522-8185, TTY Number: (808) 522-8193

HUD--Los Angeles Hub

Los Angeles Office, 611 West 6th Street, Suite 800, Los Angeles, CA 
90017-3106, (213) 894-8000, TTY Number: (213) 894-8133

HUD--Seattle Hub

Portland Office, 400 Southwest 6th Avenue, Suite 700, Portland, OR 
97204, (503) 326-2561, TTY Number: (503) 326-3656
Anchorage Office, 949 East 36th Avenue, Suite 401, Anchorage, AL 
99508, (907) 271-4170
Seattle Office, 909 First Avenue, Suite 200, Seattle, WA 98104-1000, 
(206) 220-5101, TTY Number: (206) 220-5185

    Note: The first line of the mailing address for all offices is 
the U.S. Department of Housing and Urban Development. Telephone 
numbers listed are not toll free.

BILLING CODE 4210-32-P

  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21857]]



Funding Availability for Service Coordinators in Multifamily Housing

Program Overview

    Purpose of the Program. The purpose of this Service Coordinator 
program is to allow multifamily housing owners to assist elderly 
individuals and people with disabilities living in HUD-assisted housing 
and in the surrounding area to obtain needed supportive services from 
the community, in order to enable them to continue living as 
independently as possible in their own homes.
    Available Funds. Approximately $25 million, Fiscal Year 2003 funds.
    Eligible Applicants. Only owners of eligible developments may apply 
for and become the recipient of grant funds. Property management 
companies may administer grant programs but are not eligible 
applicants. See Section III for more detailed eligibility criteria.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

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

    Application Due Date. Your completed application (an original and 
two copies) is due on or before 3:30 p.m., local time, on July 10, 2003 
at the address given below.
    Application Delivery. You may not hand deliver applications. HUD 
will reject any hand-delivered applications.
    You must submit your application to the Field Office that has 
jurisdiction for the housing developments included in your application.
    You may send your application via any mail delivery service. 
However, HUD recommends that you send your application through the 
United States Postal Service, as access to HUD offices by other 
delivery services is not guaranteed.
    If you mail your application to the wrong Field Office and it is 
not received by the Office designated for receipt by the due date and 
time, it will be deemed late and will not be considered for funding. 
HUD is not responsible for directing it to the appropriate Office. 
Also, see the General Section of this SuperNOFA for further discussion 
concerning the form of application submission.
    Addresses for Submitting Applications. Appendix A to this program 
section contains a list of HUD Field Offices where you must send your 
application by the deadline. Please address your application to the 
Director, Multifamily Housing Hub or Program Center in your local HUD 
Field Office. You should not submit any copies of your application to 
HUD Headquarters.
    For Applications. Please note that all information needed for the 
preparation and submission of your application is included in this 
program NOFA and in the General Section of the SUPERNOFA. However, for 
your convenience and ease of submission, an application is being 
provided as Appendix B to this NOFA. To obtain a printed application, 
please call the SuperNOFA Information Center at 1-800-HUD-8929. If you 
have a hearing or speech impairment, please call the Center's TTY 
number at 1-800-HUD-2209. When requesting an application, please refer 
to the Multifamily Housing Service Coordinator Program and provide your 
name, address (including zip code) and telephone number (including area 
code). An application also will be available on the Internet at http://www.hud.gov.
    For Further Information and Technical Assistance. You may contact 
your local HUD Field Office staff for questions you have regarding this 
program section of the SuperNOFA and your application. Please contact 
the Multifamily Housing Resident Initiatives Specialist or Service 
Coordinator contact person in your local Office. If you are an owner of 
a Section 515 development, contact the HUD Field Office that monitors 
your Section 8 contract. If you have a question that the Field staff is 
unable to answer, please call Carissa Janis, Housing Project Manager, 
Office of Housing Assistance and Grants Administration, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Room 6146, 
Washington, DC 20410; (202) 708-2866, extension 2487 (this is not a 
toll free number). If you are hearing or speech impaired, you may 
access this number via TTY by calling the Federal Information Relay 
Service at 1-800-877-8339.
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of the application. For more information about the date and 
time of the broadcast, you should contact your local Field office staff 
or consult the HUD web site at http://www.hud.gov.

II. Amount Allocated

    (A) Available Funding. Of the estimated $50 million appropriated in 
the FY 2003 Consolidated Appropriations, approximately $25 million will 
be used to fund Service Coordinator Programs through this SuperNOFA. 
Additionally, approximately $25 million will be used to fund one-year 
extensions to expiring Service Coordinator and Congregate Housing 
Services Program (CHSP) grants.
    (B) Maximum Grant Award. There is no maximum grant amount. The 
grant amount you request will be based on the Service Coordinator's 
salary and the number of hours worked each week by that Service 
Coordinator (and/or aide). You should base your determination of the 
appropriate number of weekly work hours on the number of people in the 
development who are frail, at-risk, or non-elderly people with 
disabilities. Under normal circumstances, a full-time Service 
Coordinator should be able to serve about 50-60 frail or at-risk 
elderly or non-elderly people with disabilities on a continuing basis. 
Your proposed salary must also be supported by evidence of comparable 
salaries in your area. Gather data from programs near you to compare 
your estimates with the salaries and administrative costs of currently 
operating programs. Field staff can provide you with contacts at local 
program sites.
    (C) Funding Process. Prior to the selection process, HUD will first 
fund the FY 2002 Service Coordinator application submitted by Prentis 
Jewish Federation Apartments, Oak Park, Michigan, in the amount of 
$207,350. This application was not funded in FY 2002 due to HUD error. 
HUD will then fund Service Coordinator applications submitted by FY 
2003 Assisted Living Conversion Program (ALCP) applicants, whose ALCP 
applications are selected for funding under that program's NOFA. HUD 
estimates that approximately $1 million will be used to fund ALCP 
Service Coordinator applications. Any funds not used by the ALCP 
program to fund service coordinators will be added to the funds 
available for the National Lottery.
    HUD will use remaining funds to make grant awards through the use 
of a national lottery. A computer program performs the lottery by 
randomly selecting eligible applications. HUD will fully fund as many 
applications as possible with the given amount of funds available. 
After all fully fundable applications have been selected by lottery, 
HUD may make an offer to partially fund the next application on the 
lottery's list, in order to use the entire amount of funds allocated. 
If the applicant selected for partial funding turns down the offer, HUD 
will make an offer to partially fund the following application. HUD 
will continue this process until an applicant accepts the partial 
funding offer.

[[Page 21858]]

    (D) Reduction in Requested Grant Amount. HUD may make an award in 
an amount less than requested, if:
    (1) HUD determines that some elements of your proposed program are 
ineligible for funding;
    (2) There are insufficient funds available to make an offer to 
fully fund the application; or
    (3) HUD determines that a reduced grant amount would prevent 
duplicative federal funding.
    (E) Alternative Funding for Service Coordinators. If your 
development has available residual receipts or excess income, you must 
use these funds prior to receiving grant monies, as long as they are 
not already allocated for other critical development expenses. Owners 
may submit requests to use residual receipts, or Section 8 or Project 
Rental Assistance Contract (PRAC) operating funds following 
instructions in Housing's Management Agent Handbook 4381.5, REVISION-2, 
CHANGE-2, Chapter 8. Refer to Housing Notice H 02-14 for information on 
using Section 236 excess income to fund a Service Coordinator. HUD 
Field staff may approve use of these project funds at any time, 
consistent with current policy. You should discuss these alternative 
funding options with your Field Office staff prior to submitting a 
grant application.

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. The Service Coordinator Program provides 
funding for the employment and support of Service Coordinators in 
insured and assisted housing developments that were designed for the 
elderly and persons with disabilities and continue to operate as such. 
Service Coordinators help residents obtain supportive services from the 
community that are needed to enable independent living and aging in 
place.
    A Service Coordinator is a social service staff person hired or 
contracted by the development's owner or management company. The 
Service Coordinator is responsible for assuring that elderly residents, 
especially those who are frail or at risk, and those non-elderly 
residents with disabilities are linked to the supportive services they 
need to continue living independently in their current homes. All 
services should meet the specific desires and needs of the residents 
themselves. The Service Coordinator may not require any elderly 
individual or person with a disability to accept any specific 
supportive service(s).
    You may want to review the Management Agent Handbook 4381.5 
REVISION-2, CHANGE-2, Chapter 8 for further guidance on service 
coordinators. This Handbook is accessible through HUDCLIPS on HUD's Web 
site at http://www.hudclips.org. The Handbook is in the Handbooks and 
Notices--Housing Notices database. Enter the Handbook number in the 
``Document Number'' field to retrieve the Handbook.
    (B) Definition of Terms Used in this Program NOFA.
    (1) ``Activities of daily living (ADLs)'' means eating, dressing, 
bathing, grooming, and household management activities, as further 
described below:
    (a) Eating--May need assistance with cooking, preparing, or serving 
food, but must be able to feed self;
    (b) Bathing--May need assistance in getting in and out of the 
shower or tub, but must be able to wash self;
    (c) Grooming--May need assistance in washing hair, but must be able 
to take care of personal appearance;
    (d) Dressing--Must be able to dress self, but may need occasional 
assistance; and
    (e) Home management activities--May need assistance in doing 
housework, grocery shopping, laundry, or getting to and from activities 
such as going to the doctor and shopping, but must be mobile. The 
mobility requirement does not exclude persons in wheelchairs or those 
requiring mobility devices.
    (2) ``At-risk elderly person'' is an individual 62 years of age or 
older who is unable to perform one or two ADLs, as defined in the above 
paragraph.
    (3) ``Frail elderly person'' means an individual 62 years of age or 
older who is unable to perform at least three ADLs as defined in the 
above paragraph.
    (4) ``People with disabilities'' means those individuals who:
    (a) Have a disability as defined in Section 223 of the Social 
Security Act;
    (b) Have a physical, mental, or emotional impairment expected to be 
of long, continued, and indefinite duration that impedes the 
individual's ability to live independently; or
    (c) Have a developmental disability.
    (5) ``Reasonable costs'' mean that costs are consistent with 
salaries and administrative costs of similar programs in your Field 
office's jurisdiction.
    (C) Functions of a Service Coordinator. The major functions of the 
Service Coordinator include the following:
    (1) Refer and link the residents of the development to supportive 
services provided by the general community. Such services may include 
case management, personal assistance, homemaker, meals-on-wheels, 
transportation, counseling, occasional visiting nurse, preventive 
health screening/wellness, and legal advocacy.
    (2) Educate residents on service availability, application 
procedures, client rights, etc.
    (3) Establish linkages with agencies and service providers in the 
community. Shop around to determine/develop the best ``deals'' in 
service pricing, to assure individualized, flexible, and creative 
services for the involved resident. Provide advocacy as appropriate.
    (4) Provide case management when such service is not available 
through the general community. This might include evaluation of health, 
psychological and social needs, development of an individually tailored 
case plan for services, and periodic reassessment of the resident's 
situation and needs. Service Coordinators can also set up a 
Professional Assessment Committee (PAC) to assist in performing initial 
resident assessments. (See the guidance in the CHSP regulations at 24 
CFR 700.135 (or 1944.258 for Rural Housing developments). Grantees 
cannot use grant funds to pay PAC members for their services.
    (5) Monitor the ongoing provision of services from community 
agencies and keep the case management and provider agency current with 
the progress of the individual. Manage the provision of supportive 
services where appropriate.
    (6) Help the residents build informal support networks with other 
residents, family and friends.
    (7) Work and consult with tenant organizations and resident 
management corporations. Provide training to the development's 
residents in the obligations of tenancy or coordinate such training.
    (8) Create a directory of providers for use by both development 
staff and residents.
    (9) Educate other staff of the management team on issues related to 
aging in place and Service Coordination, to help them to better work 
with and assist the residents.
    During work hours paid for by this grant, Service Coordinators may 
not perform the following activities:
    (i) Act as a recreational or activities director;
    (ii) Provide supportive services directly;
    (iii) Assist with property management work; or
    (iv) Act as a Neighborhood Networks program director or 
coordinator.
    (D) Basic Qualifications of Service Coordinators and Aides.
    (1) Service Coordinator Qualifications include the following:
    (a) A Bachelor of Social Work or degree in Gerontology, Psychology 
or

[[Page 21859]]

Counseling is preferable; a college degree is fully acceptable. You may 
also consider individuals who do not have a college degree, but who 
have appropriate work experience.
    (b) Knowledge of the aging process, elder services, disability 
services, eligibility for and procedures of federal and applicable 
state entitlement programs, legal liability issues relating to 
providing Service Coordination, drug and alcohol use and abuse by the 
elderly, and mental health issues.
    (c) Two to three years experience in social service delivery with 
senior citizens and people with disabilities. Some supervisory or 
management experience may be desirable if the Service Coordinator will 
work with aides.
    (d) Demonstrated working knowledge of supportive services and other 
resources for senior citizens and non-elderly people with disabilities 
available in the local area.
    (e) Demonstrated ability to advocate, organize, problem-solve, and 
provide results for the elderly and people with disabilities.
    (2) Aides Working with a Service Coordinator. Aides should either 
have a college degree or appropriate experience in working with the 
elderly and/or people with disabilities. An example of an aide position 
could be an internship or work-study program with local colleges and 
universities to assist in carrying out some of the Service 
Coordinator's functions.
    (E) Eligible Applicants and Developments. To be eligible for 
funding:
    (1) You must meet all of the applicable threshold requirements of 
Sections V (B) and (D) of the General Section of the SuperNOFA.
    (2) You must be an owner of a development assisted under one of the 
following programs:
    (a) Section 202 Direct Loan;
    (b) Project-based Section 8 (including Section 8 Moderate 
Rehabilitation); or
    (c) Section 221(d)(3) below-market interest rate, and 236 
developments that are insured or assisted.
    (3) Additionally, developments listed in paragraph (2), above, are 
eligible only if they meet the following criteria:
    (a) Have frail or at-risk elderly residents and/or non-elderly 
residents with disabilities who together total at least 25 percent of 
the building's residents. (For example, in a 52-unit development, at 
least 13 residents must be frail, at-risk, or non-elderly people with 
disabilities.)
    (b) Were designed for the elderly or persons with disabilities and 
continue to operate as such. This includes any building within a mixed-
use development that was designed for occupancy by elderly persons or 
persons with disabilities at its inception and continues to operate as 
such, or consistent with title VI, subtitle D of the Housing and 
Community Development Act of 1992 (Pub. L. 102-550). If not so 
designed, a development in which the owner gives preferences in tenant 
selection (with HUD approval) to eligible elderly persons or persons 
with disabilities, for all units in that development.
    (c) Are current in mortgage payments or are current under a workout 
agreement.
    (d) Meet HUD's Uniform Physical Conditions Standards (codified in 
24 CFR part 5, subpart G), based on the most recent physical inspection 
report and responses thereto, as evidenced by a score of 60 or better 
on the last physical inspection or by an approved plan for developments 
scoring less than 60.
    (e) Are in compliance with their regulatory agreement, Housing 
Assistance Payment (HAP) Contract, and other outstanding directives.
    (f) Have insufficient surplus cash available at the time of 
application that otherwise could be used to hire a Service Coordinator. 
HUD Field staff will make this determination based on the surplus cash 
statement of the development's last Annual Financial Statement.
    (4) If your eligibility status changes during the course of the 
grant term, making you ineligible to receive a grant (e.g. due to 
prepayment of mortgage, sale of property, or opting out of a Section 8 
HAP contract), HUD has the right to terminate your grant.
    (F) Ineligible Applicants and Developments.
    (1) Property management companies, area agencies on aging, and 
other like organizations are not eligible applicants for Service 
Coordinator funds. Such agents may prepare applications and sign 
application documents if they provide written authorization from the 
owner corporation as part of the application. In such cases, the owner 
corporation must be indicated on all forms and documents as the funding 
recipient.
    (2) Developments not designed for the elderly or people with 
disabilities or those no longer operating as such.
    (3) Section 221(d)(4) developments without project-based Section 8 
assistance.
    (4) Section 202 and 811 developments with a PRAC. Owners of Section 
202 PRAC developments may obtain funding by requesting an increase in 
their PRAC payment consistent with Handbook 4381.5 REVISION-2, CHANGE-
2, Chapter 8.
    (G) Eligible Activities.
    (1) Service Coordinator Program grant funds may be used to pay for 
the salary, fringe benefits, and related support costs of employing a 
service coordinator.
    (2) You may use grant funds to pay for Quality Assurance (QA) in an 
amount that does not exceed five (5) percent of the Service 
Coordinator's salary. Eligible QA activities are those that evaluate 
your program, to assure that the position is effectively implemented. A 
qualified, objective third party must perform the program evaluation 
work and must have supervisory work experience and education in social 
or health care services. Your QA activities must include two program 
evaluation reviews during the first year of program operation and one 
review each successive year. The program evaluations must identify 
short and long term program outcomes and performance indicators that 
will help you measure your performance.
    On-site housing management staff cannot perform QA and you may not 
augment current salaries of in-house staff for this purpose.
    (3) You may propose reasonable costs associated with setting up a 
confidential office space for the Service Coordinator. Such expenses 
must be one-time only administrative start-up costs. Such costs may 
involve acquisition, leasing, rehabilitation, or conversion of space. 
HUD Field Office staff must approve both the proposed costs and 
activity and must perform an environmental assessment on such proposed 
work prior to grant award.
    (4) You may use funds to augment a current Service Coordinator 
program, by increasing the hours of a currently employed Service 
Coordinator, or hiring an additional Service Coordinator or aide on a 
part-or full-time basis. Likewise, ALCP applicants may apply for new or 
augmented Service Coordinator costs to serve Assisted Living residents 
and/or all residents of the development.
    (5) You may use funds to continue a Service Coordinator program 
that has previously been funded through other sources. In your 
application, you must provide evidence that this funding source has 
already ended or will discontinue within six months following the 
application deadline date and that no other funding mechanism is 
available to continue the program. This applies only to funding sources 
other than the subsidy awards and grants provided by the Department 
through program Notices beginning in FY 1992.

[[Page 21860]]

HUD currently provides one-year extensions to these subsidy awards and 
grants through a separate funding action.
    (6) You may provide service coordination to low-income elderly 
individuals or people with disabilities living in the vicinity of an 
eligible development. Community residents should come to your housing 
development to meet with and receive service from the Service 
Coordinator. However, you must make reasonable accommodations for those 
individuals unable to travel to the housing site.
    (H) Ineligible Activities.
    (1) You may not use funds available through this NOFA to replace 
currently available funding from other sources for a Service 
Coordinator or for some other staff person who performs service 
coordinator functions.
    (2) Owners with existing service coordinator subsidy awards or 
grants may not apply for renewal or extension of those programs under 
this NOFA.
    (3) Congregate Housing Services Program (CHSP) grantees may not use 
these funds to meet statutory program match requirements and may not 
use these funds to replace current CHSP program funds to continue the 
employment of a service coordinator.
    (4) The cost of application preparation is not eligible for 
reimbursement.
    (5) Grant funds cannot be used to increase a project's management 
fee.
    (6) You cannot hire an additional part or full-time Service 
Coordinator for the sole purpose of serving community residents.

IV. Program Requirements

    To receive and administer a Service Coordinator grant, you must 
meet the requirements in Section IV of this program section of the 
SuperNOFA. These requirements apply to all activities, programs, and 
functions used to plan, budget, and evaluate the work funded under your 
program.
    In addition to the requirements listed below, you must also meet 
the requirements of Section V of the General Section of this SuperNOFA. 
(Please note that paragraphs E, G, and M of Section V do not apply to 
the Service Coordinator program.)
    (A) You must make sufficient separate and private office space 
available for the Service Coordinator and/or aides, without adversely 
affecting normal activities.
    (B) The Service Coordinator must maintain resident files in a 
secured location. Files must be accessible ONLY to the Service 
Coordinator, unless residents provide signed consent otherwise. These 
policies must be consistent with maintaining confidentiality of 
information related to any individual per the Privacy Act of 1974.
    (C) Grantees must ensure that the Service Coordinator receives 
appropriate supervision, training, and ongoing continuing education 
requirements, consistent with statutory and HUD administrative 
policies. This includes 36 hours of training in age-related and 
disability issues during the first year of employment, if the Service 
Coordinator has not received recent training in these areas, and 12 
hours of continuing education each year thereafter.
    (D) Administrative Costs. The administrative costs of your program 
cannot exceed 10% of the program's cost.
    (E) Reports. Grantees must submit semi-annual financial status and 
program performance reports. They must also provide information 
supporting program expenses at the time of receipt of grant funds for 
cost reimbursement. The objectives of the Service Coordinator program 
are to enhance a resident's quality of life and ability to live 
independently and age in place. The data that HUD collects on the 
performance report measures the grantee's success in meeting these 
intended program outcomes. The data reported include the numbers of 
residents served, their ages, frailty levels, and the range of services 
provided to them. In addition, the performance report assesses the 
Service Coordinator's efficiency in providing coordination, by 
reporting the number of hours worked, the amount of time spent doing 
administrative tasks, the types of professional training attended, and 
examples of problems encountered throughout the course of their work.
    (F) As a condition of receiving a grant, Section 202 developments 
with project-based Section 8 must open a Residual Receipts account 
separate from the Reserve for Replacement account, if they do not 
already have such a separate account.
    (G) Term of Funded Activities. The grant term is three years. HUD 
will renew grants subject to the availability of funds and acceptable 
program performance.
    (H) Subgrants and Subcontracts. You may directly hire a Service 
Coordinator or you may contract with a qualified third party to provide 
this service.

V. Application Selection Process

    (A) General. HUD will not award Service Coordinator Program grant 
funds through a rating and ranking process. Instead, the Department 
will hold one national lottery for all eligible applications forwarded 
from Multifamily HUB and Multifamily Program Centers (a list of these 
offices is found in Appendix A to this notice).
    (B) Threshold Eligibility Review. HUD Multifamily Field Office 
staff will review applications for completeness and compliance with the 
eligibility criteria set forth in Section III of this NOFA. Field 
Office staff will forward application information to Headquarters for 
entry into the lottery if the application was received by the deadline 
date, meets all eligibility criteria, proposes reasonable costs for 
eligible activities, and includes all technical corrections by the 
designated deadline date.

VI. Application Submission Requirements

    (A) Single Applications.
    (1) You may submit one application for one or more developments 
that your corporation owns.
    (2) You may submit more than one application to a single Field 
Office, if you wish to increase your chances of selection in the 
lottery. Each application must propose a separate, stand-alone program 
and the development(s) must all be located in the same Field Office 
jurisdiction.
    (3) If you wish to apply on behalf of developments located in 
different Field Office jurisdictions, you must submit a separate 
application to each Field Office.
    (B) Joint Applications. You may join with one or more other 
eligible owners to share a Service Coordinator and submit a joint 
application. In the past, joint applications have been used by small 
developments that joined together to hire and share a part or full-time 
Service Coordinator.
    (C) Application Submission Requirements for ALCP Applicants. If you 
are an ALCP applicant and you request new or additional Service 
Coordinator costs specifically for your proposed Assisted Living 
Program, you must submit an application containing all required 
documents and information listed in this NOFA. Be sure to indicate the 
amount of grant funds you are requesting for both programs on your HUD-
424 forms. HUD Field Office staff will review both applications 
simultaneously.
    ALCP applicants must submit all the required items in the Service 
Coordinator application listed in Section VI.(E) of this NOFA. You may 
provide a copy of all standard forms in your Service Coordinator 
application. If you do not provide either an original or copy of these 
forms, your Service

[[Page 21861]]

Coordinator application will be incomplete.
    If you currently do not have a Service Coordinator working at the 
development proposed in your ALCP application and your ALCP application 
is selected to receive an award, HUD will fund a Service Coordinator to 
serve either ALCP residents only or all residents of the development 
dependent upon your request. If your development currently has a 
Service Coordinator, you may request additional hours for the Service 
Coordinator to serve the Assisted Living residents. If you request 
additional hours, you must specify the number of additional hours per 
week and provide an explanation based on the anticipated needs of the 
Assisted Living residents. Provide this explanation in your ALCP 
application as instructed in the ALCP NOFA.
    If you request Service Coordinator funding to serve all residents 
of your development, your request can be entered into the national 
lottery if your ALCP application is not selected to receive an award.
    Owners applying for ALCP grants may also submit separate Service 
Coordinator applications for entry into the lottery for other eligible 
developments they own and that are not included in their ALCP 
application.
    (D) Your application must contain the items listed in this Section 
VI(D). These items include the standard forms, certifications, and 
assurances listed in the General Section of the SuperNOFA that are 
applicable to this funding (collectively, referred to as the ``standard 
forms''). The standard forms and other required forms can be found in 
the Application found in Appendix B to this NOFA. The items are as 
follows:

Standard Forms

    (1) Application for Federal Assistance (HUD-424)
    (2) Applicant Assurances and Certifications (HUD-424B)
    (3) If engaged in lobbying, the Disclosure Form Regarding Lobbying 
(SF-LLL)
    (4) Applicant/Recipient Disclosure/Update Report Form (HUD-2880)
    (5) Acknowledgment of Application Receipt (HUD-2993)
    (6) Client Comments and Suggestions (HUD-2994)

Other Application Items:

    All applications for funding under the Service Coordinator Program 
must contain the following documents and information:
    (1) Service Coordinator Funding Request, forms HUD-91186 and HUD-
91186-i.
    (2) If more than one owner is proposing to share a Service 
Coordinator, one agency must designate itself the ``lead''. This lead 
agency must submit a letter along with the completed application 
materials from each owner. The letter must be on organization 
letterhead and contain the number of developments, their names and 
addresses, and the dollar amount requested for each site. The legal 
signatory for the owner corporation must sign the letter, indicating 
agreement to administer grant funds for the housing developments listed 
in the letter.
    (3) Evidence of comparable salaries in your local area.
    (4) Narratives. (a) Explain your method of estimating how many 
residents of your development are frail or at-risk elderly or non-
elderly people with disabilities. Please document that individuals 
meeting these criteria make up at least 25% of your resident 
population. (Do not include elderly individuals or people with 
disabilities who do not live in the eligible developments included in 
your application.)
    (b) Explain how you will provide on-site private office space for 
the Service Coordinator, to allow for confidential meetings with 
residents.
    (c) If you include quality assurance in your proposed budget, 
provide a justification and explanation of who will perform this work, 
what responsibilities are involved, and how often the work will be 
done.
    (d) If you propose to serve community residents, present a 
description of your plan.
    (e) If you are applying for an ALCP grant: (i) Describe how the new 
or additional Service Coordinator hours will support your proposed 
assisted living program, by following the instruction provided in the 
ALCP NOFA; and (ii) indicate if you want your Service Coordinator 
application entered into the lottery if your ALCP application is not 
selected to receive an award.
    (5) If applicable, evidence that prior funding sources for your 
development's Service Coordinator program are no longer available or 
will expire within six months following the application deadline date.
    (6) A bank statement showing the current residual receipts or 
excess income balance in the development's account.
    (7) Applicant checklist.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Environmental Requirements

    It is anticipated that most activities under this program are 
categorically excluded from NEPA and related environmental authorities 
under 24 CFR 50.19(b)(3), (4), (12), or (13). If grant funds will be 
used to cover the cost of any activities which are not exempted from 
environmental review requirements--such as acquisition, leasing, 
construction, or building rehabilitation, HUD will perform an 
environmental review to the extent required by 24 CFR part 50, prior to 
grant award.

IX. Authority

    Section 808 of the Cranston-Gonzalez National Affordable Housing 
Act (Pub. L. 101-625, approved November 28, 1990), as amended by 
sections 671, 674, 676, and 677 of the Housing and Community 
Development Act of 1992 (Pub. L. 102-550, approved October 28, 1992), 
and section 851 of the American Homeownership and Economic Opportunity 
Act of 2000 (Pub. L. 106-569, approved December 27, 2000).

Appendix A

HUD Field Office List for Mailing Service Coordinator Applications

Alabama--Multifamily Housing Program Center, HUD--Birmingham Office, 
600 Beacon Parkway West, Rm. 300, Birmingham, AL 35209-3144, OFC 
Phone: (205) 290-7611, FAX: (205) 290-7632, TTY Number: (205) 731-
2624
Alaska--Multifamily Housing Hub, HUD Seattle Office, 909 First 
Avenue, Suite 190, MS-0AHM, Seattle, WA 98104-1000, OFC Phone: (206) 
220-5228 ext. 3250, FAX: (206) 220-5206, TTY Number: (206) 220-5254
Arizona--Multifamily Housing Program Center, HUD Phoenix Office, 400 
North Fifth Street, Suite 1600, Phoenix, AZ 85004-2361, OFC Phone: 
(602) 379-4434, FAX: (602) 379-3985 TTY Number: (602) 379-4557
Arkansas--Multifamily Housing Program Center, HUD Little Rock 
Office, 425 West Capitol Avenue 900, Little Rock, AR 72201-
3488, OFC Phone: (501) 324-5401, FAX: (501) 324-6142, TTY Number: 
(501) 324-5931
California--Multifamily Housing Hub, HUD--San Francisco Office, 450 
Golden Gate Avenue, PO Box 36003, San Francisco, CA 94102-3448, OFC 
Phone: (415) 436-6505, FAX: (415) 436-8996, TTY Number: (415) 436-
6594
Los Angeles Multifamily Hub, 611 West Sixth Street, Suite 800, Los 
Angeles, CA 90017, OFC Phone: (213) 894-8000 x3634,

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Fax: (213) 894-8255, TTY Number: (213) 894-8133
Colorado--Multifamily Housing Hub, HUD Denver Office, 633 17th 
Street, 11th Floor, Denver, CO 80202-3607, OFC Phone: (303) 672-
5343, FAX: (303) 672-5153, TTY Number: (303) 672-5113
Connecticut--Multifamily Housing Program Center, HUD--Hartford 
Office, One Corporate Center, 19th floor, Hartford, CT 06103-3220, 
OFC Phone: (860) 240-4800 Ext. 3068, FAX: (860) 240-4850, TTY 
Number: (860) 240-4665
Delaware--Multifamily Housing Hub, HUD Philadelphia Office, The 
Wanamaker Building, 100 Penn Square, East, Philadelphia, PA 19107-
3380, OFC Phone: (215) 656-0609 Ext. 3533, FAX: (215) 656-3427, TTY 
Number: (215) 656-3452
District of Columbia--Multifamily Housing Program Center, HUD 
Washington, DC Office, Suite 300, 820 First Street, N.E., 
Washington, DC 20032-4205, OFC Phone: (202) 275-9200, FAX: (202) 
275-9212, TTY Number: (202) 275-0772
Florida--Multifamily Housing Hub, HUD--Jacksonville Office, 301 West 
Bay Street, Suite 2200, Jacksonville, FL 32202-5121, OFC Phone: 
(904) 232-1777 x2144, FAX: (904) 232-2731, TTY Number: (904) 232-
2631
Georgia--Multifamily Housing Hub, HUD--Atlanta Office, Five Points 
Plaza Building, 40 Marietta Street, S.W., Atlanta, Georgia 30303-
2806, OFC Phone: (404) 331-4976, FAX: (404) 331-4028, TTY Number: 
(404) 730-2654
Hawaii--Multifamily Housing Program Center, HUD Honolulu Office, 7 
Waterfront Plaza, 500 Ala Moana Blvd. 500, Honolulu, HI 
96813-4918, OFC Phone: (808) 522-8185 Ext. 244, FAX: (808) 522-8194, 
TTY Number: (808) 522-8193
Idaho--Multifamily Housing Hub, HUD Seattle Office, 909 First 
Avenue, Suite 190, MS-0AHM, Seattle, WA 98104-1000, OFC Phone: (206) 
220-5228 ext. 3250, FAX: (206) 220-5206, TTY Number: (206) 220-5254
Illinois--Multifamily Housing Hub, HUD--Chicago Office, Ralph 
Metcalfe Federal Building, 77 West Jackson Boulevard, Chicago, IL 
60604-3507, OFC Phone: (312) 353-6236 Ext. 2202, FAX: (312) 886-
2729, TTY Number: (312) 353-5944
Indiana--Multifamily Housing Program Center, HUD Indianapolis 
Office, 151 North Delaware Street, Suite 1200, Indianapolis, IN 
46204-2526, OFC Phone: (317) 226-6303, FAX: (317) 226-7308, TTY 
Number: (317) 226-7081
Iowa--Multifamily Housing Program Center, HUD Des Moines Office, 210 
Walnut Street, Room 239, Des Moines, IA 50309-2155, OFC Phone: (515) 
284-4736, FAX: (515) 284-4743, TTY Number: (515) 284-4728
Kansas--Multifamily Housing Hub, HUD Kansas City Office, 400 State 
Avenue, Room 200, Kansas City, KS 66101-2406, OFC Phone: (913) 551-
6844, FAX: (913) 551-5469, TTY Number: (913) 551-6972
Kentucky--Multifamily Housing Program Center, HUD--Louisville 
Office, 601 West Broadway, PO Box 1044, Louisville, KY 40201-1044, 
OFC Phone: (502) 582-6124, FAX: (502) 582-6547, TTY Number: (800) 
648-6056
Louisiana--Multifamily Housing Program Center, HUD New Orleans 
Office, Hale Boggs Bldg.--501 Magazine Street, 9th Floor, New 
Orleans, LA 70130-3099, OFC Phone: (504) 589-7236, FAX: (504) 589-
6834, TTY Number: (504) 589-7279
Maine--Multifamily Housing Program Center, HUD--Manchester Office, 
Norris Cotton Federal Bldg., 275 Chestnut Street, Manchester, NH 
03101-2487, OFC Phone: (603) 666-7684, FAX: (603) 666-7697, TTY 
Number: (603) 666-7518
Maryland--Multifamily Housing Hub, HUD Baltimore Office, 5th Floor, 
10 South Howard Street, Baltimore, MD 21201-2505, OFC Phone: (410) 
962-2520 Ext. 3474, FAX: (410) 962-1849, TTY Number: (410) 962-0106
Massachusetts--Multifamily Housing Hub, HUD--Boston Office, O'Neil 
Federal Building, 10 Causeway Street, Rm.375, Boston, MA 02222-1092, 
OFC Phone: (617) 565-5162, FAX: (617) 565-6557, TTY Number: (617) 
565-5453
Michigan--Multifamily Housing Hub, HUD Detroit Office, 477 Michigan 
Avenue, Detroit, MI 48226-2592, OFC Phone: (313) 226-7900, FAX: 
(313) 226-5611, TTY Number: (313) 226-6899
Multifamily Housing Program Center, HUD Grand Rapids, Trade Center 
Building, 50 Louis Street, N.W., Grand Rapids, MI 49503-2648, OFC 
Phone: (616) 456-2100, FAX: (616) 456-2191, TTY Number: (616) 456-
2159
Minnesota--Multifamily Housing Hub, HUD Minneapolis Office, 220 
Second Street, South, Minneapolis, MN 55401-2195, OFC Phone: (612) 
370-3051, FAX: (612) 370-3090, TTY Number: (612) 370-3186
Mississippi--Multifamily Housing Program Center, HUD Jackson 
Office--McCoy Federal Building, 100 W. Capitol Street, Room 910, 
Jackson, MS 39269-1096, OFC Phone: (601) 965-4738, FAX: (601) 965-
4773, TTY Number: (601) 965-4171
Missouri--Multifamily Housing Hub, HUD Kansas City Office, 400 State 
Avenue, Room 200, Kansas City, KS 66101-2406, OFC Phone: (913) 551-
6844, FAX: (913) 551-5469, TTY Number: (913) 551-6972
Multifamily Housing Program Center--HUD St. Louis Office, Robert A. 
Young Federal Building, 1222 Spruce Street, Third Floor, St. Louis, 
MO 63103-2836, OFC Phone: (314) 539-6382, FAX: (314) 539-6356, TTY 
Number: (314) 539-6331
Montana--Multifamily Housing Hub, HUD Denver Office, 633 17th 
Street, 14th Floor, Denver, CO 80202-3607, OFC Phone: (303) 672-
5343, FAX: (303) 672-5153, TTY Number: (303) 672-5248
Nebraska--Multifamily Housing Program Center, HUD Omaha Office, 
10909 Mill Valley Road, Suite 100, Omaha, NE 68154-3955, OFC Phone: 
(402) 492-3113, FAX: (402) 492-3184, TTY Number: (402) 492-3183
Nevada--Multifamily Housing Program Center, HUD Las Vegas Office, 
333 N. Rancho Drive--Atrium Bldg. Suite 700, Las Vegas, NV 89106-
3714, OFC Phone: (702) 388-6525, FAX: (702) 388-6244, TTY Number: 
(702) 388-6246
New Hampshire--Multifamily Housing Program Center, HUD--Manchester 
Office, Norris Cotton Federal Bldg., 275 Chestnut Street, 
Manchester, NH 03101-2487, OFC Phone: (603) 666-7684, FAX: (603) 
666-7697, TTY Number: (603) 666-7518
New Jersey--Multifamily Housing Program Center, HUD--Newark Office--
13th Floor, One Newark Center, Newark, NJ 07102-5260, OFC Phone: 
(973) 622-7900 Ext. 3400, FAX: (973) 645-2271, TTY Number: (973) 
645-3298
New Mexico--Multifamily Housing Hub, HUD Ft. Worth Office, 801 
Cherry Street, PO Box 2905, Ft. Worth, TX 76102-2905, OFC Phone: 
(817) 978-5764, FAX: (817) 978-5520, TTY Number: (817) 978-9278
New York--Multifamily Housing Hub, HUD--New York Office, 26 Federal 
Plaza--Room 3214, New York, NY 10278-0068, OFC Phone: (212) 264-0777 
Ext. 3713, FAX: (212) 264-1277, TTY Number: (212) 264-0927
Multifamily Housing Hub, HUD--Buffalo Office, Lafayette Court, 5th 
Floor, 465 Main Street, Buffalo, NY 14203-1780, OFC Phone: (716) 
551-5755 Ext. 5509, FAX: (716) 551-3252, TTY Number: (716) 551-5787
North Carolina--Multifamily Housing Hub, HUD Greensboro Office--
Koger Building, 2306 West Meadowview Road, Greensboro, NC 27407, OFC 
Phone: (336) 547-4034, FAX: (336) 547-4121, TTY Number: (336) 547-
4020
North Dakota--Multifamily Housing Hub, HUD Denver Office, 633 17th 
Street, 14th Floor, Denver, CO 80202-3607, OFC Phone: (303) 672-
5343, FAX: (303) 672-5153, TTY Number: (303) 672-5248
Ohio--Multifamily Housing Hub, HUD Columbus Office, 200 North High 
Street, Columbus, OH 43215-2499, OFC Phone: (614) 469-5737, Ext. 
8111, FAX: (614) 469-2432, TTY Number: (614) 469-6694
Multifamily Housing Program Center, HUD Cincinnati Office, 525 Vine 
Street, Suite 700, Cincinnati, OH 45202-3188, OFC Phone: (513) 684-
2350, FAX: (513) 684-6224, TTY Number: (513) 684-6180
Multifamily Housing Program Center, HUD Cleveland Office, 1350 
Euclid Avenue, Suite 500, Cleveland, OH 44115-1815, OFC Phone: (216) 
522-4058 Ext. 7000, FAX: (216) 522-4067, TTY Number: (216) 522-2261
Oklahoma--Multifamily Housing Program Center, HUD Oklahoma City 
Office, 500 W. Main Street, Suite 400, Oklahoma City, OK 73102-2233, 
OFC Phone: (405) 553-7410, FAX: (405) 553-7406, TTY Number: (1) 800-
877-8339
Oregon--Multifamily Housing Hub, HUD Seattle Office, 909 First 
Avenue, Suite 190, MS-0AHM, Seattle, WA 98104-1000, OFC Phone: (206) 
220-5228 ext. 3250, FAX: (206) 220-5206, TTY Number: (206) 220-5254
Pennsylvania--Multifamily Housing Hub, HUD Philadelphia Office, The 
Wanamaker Building, 100 Penn Square, East, Philadelphia, PA 19107-
3380, OFC Phone: (215) 656-0609 Ext. 3533, FAX: (215) 656-3427, TTY 
Number: (215) 656-3452
Multifamily Housing Program Center, HUD Pittsburgh Office, 339 Sixth 
Avenue--Sixth

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Floor, Pittsburgh, PA 15222-2515, OFC Phone: (412) 644-6639, FAX: 
(412) 644-5872, TTY Number: (412) 644-5747
Puerto Rico--Multifamily Housing Program Center, HUD Caribbean 
Office, 171 Carlos E. Chardon Avenue, San Juan, PR 00918-0903, OFC 
Phone: (787) 766-5401, FAX: (787) 766-5522, TTY Number: (787) 766-
5909
Rhode Island--Multifamily Housing Program Center, HUD--Providence 
Office, 10 Weybosset Street, Sixth Floor, Providence, RI 02903-2808, 
OFC Phone: (401) 528-5230, FAX: (401) 528-5097, TTY Number: (401) 
528-5403
South Carolina--Multifamily Housing Program Center, HUD Columbia 
Office, 1835 Assembly Street, Columbia, SC 29201-2480, OFC Phone: 
(803) 765-5162, FAX: (803) 253-3043, TTY Number: (803) 253-3209
South Dakota--Multifamily Housing Hub, HUD Denver Office, 633 17th 
Street, 14th Floor, Denver, CO 80202-3607, OFC Phone: (303) 672-
5343, FAX: (303) 672-5153, TTY Number: (303) 672-5248
Tennessee--Multifamily Housing Program Center, HUD--Knoxville 
Office, 710 Locust Street, SW, Knoxville, TN 37902-2526, OFC Phone: 
(423) 545-4411, FAX: (423) 545-4578, TTY Number: (423) 545-4559
Multifamily Housing Program Center HUD--Nashville Office, 251 
Cumberland Bend Drive, Suite 200, Nashville, TN 37228-1803, OFC 
Phone: (615) 736-5748, FAX: (615) 736-2018, TTY Number: (615) 736-
2886
Texas--Multifamily Housing Hub, HUD Ft. Worth Office, 801 Cherry 
Street, PO Box 2905, Ft. Worth, TX 76102-2905, OFC Phone: (817) 978-
5764, FAX: (817) 978-5520, TTY Number: (817) 978-5965
Multifamily Housing Program Center, HUD Houston Office, 2211 
Norfolk, 200, Houston, TX 77098-4096, OFC Phone: (713) 313-
2274 Ext. 7015, FAX: (713) 313-2319, TTY Number: (713) 834-3274
Multifamily Housing Program Center, HUD San Antonio Office, 800 
Dolorosa, San Antonio, TX 78207-4563, OFC Phone: (210) 475-6831, 
FAX: (210) 472-6897, TTY Number: (210) 475-6885
Utah--Multifamily Housing Hub, HUD Denver Office, 633 17th Street, 
14th Floor, Denver, CO 80202-3607, OFC Phone: (303) 672-5343, FAX: 
(303) 672-5153, TTY Number: (303) 672-5248
Vermont--Multifamily Housing Program Center, HUD--Manchester Office, 
Norris Cotton Federal Bldg., 275 Chestnut Street, Manchester, NH 
03101-2487, OFC Phone: (603) 666-7684, FAX: (603) 666-7697, TTY 
Number: (603) 666-7518
Virginia--Multifamily HUD Richmond Office, 3600 West Broad Street, 
Richmond, VA 23230-4920, OFC Phone: (804) 278-4500 Ext. 3146, FAX: 
(804) 278-4613, TTY Number: (804) 771-2038
Washington--Multifamily HUD Seattle Office, 909 First Avenue, Suite 
190, MS-0AHM, Seattle, WA 98104-1000, OFC Phone: (206) 220-5228 ext. 
3250, FAX: (206) 220-5206, TTY Number: (206) 220-5254
West Virginia--Multifamily HUD--Charleston Office, 405 Capitol 
Street, Suite 708, Charleston, WV 25301-1795, OFC Phone: (304) 347-
7000 Ext. 103, FAX: (304) 347-7050, TTY Number: (304) 347-5332
Wisconsin--Multifamily, HUD Milwaukee Office, 310 West Wisconsin 
Avenue, Room 1380, Milwaukee, WI 53203-2289, OFC Phone: (414) 297-
3214 Ext. 8662, FAX: (414) 297-3204, TTY Number: (414) 297-1423
Wyoming--Multifamily Housing Hub, HUD Denver Office, 633 17th 
Street, 14th Floor, Denver, CO 80202-3607, OFC Phone: (303) 672-
5343, FAX: (303) 672-5153, TTY Number: (303) 672-5248

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Funding Availability for Mainstream Housing Opportunities for Persons 
With Disabilities (Mainstream Program)

Program Overview

    Purpose of the Program. The purpose of this program is to provide 
vouchers under the Housing Choice Voucher Program to enable persons 
with disabilities (elderly and non-elderly) to access affordable 
private housing.
    Available Funds. Approximately $53.6 million in five-year budget 
authority, derived from FY 2003 Section 811 funding, for approximately 
1,800 vouchers is available to public housing agencies (PHAs) and 
nonprofit organizations.
    See section II (A) of this funding announcement, which fully 
addresses the source of the $53.6 million in five-year budget authority 
appropriated by Congress for FY 2003 under Section 811 of the Cranston-
Gonzalez National Affordable Housing Act (NAHA) (42 U.S.C. 12701 et 
seq.), available under this funding announcement. All future references 
in this funding announcement to five-year budget authority are based 
upon this funding source.
    Eligible Applicants. PHAs and nonprofit organizations that provide 
services to disabled families are eligible to apply. PHAs or nonprofit 
organizations that fall into any of the categories in section VII 
(B)(2) of this announcement are ineligible to have an application 
funded under this announcement. Indian Housing Authorities (IHAs), 
Indian tribes and their tribally designated housing entities are not 
eligible to apply because the Native American Housing Assistance and 
Self-Determination Act of 1996, (25 U.S.C. 4101 et seq.) does not allow 
HUD to enter into new housing choice voucher annual contributions 
contracts (ACC) with IHAs after September 30, 1997.
    The vouchers that HUD will provide under this announcement must be 
made available to eligible disabled families regardless of their type 
of disability. (See the definition of disabled family in Section IV 
(E)(1) of this announcement.) The Mainstream Program vouchers must not 
be issued by the administering agency on the basis of any preference 
system favoring any particular type of disability over another, nor 
shall the vouchers be issued solely on the basis of an administering 
agency's waiting list which is based on that agency heretofore having 
served only certain types of disabled persons. The Housing Choice 
Voucher Program regulations provide at 24 CFR 982.207(b)(3) that a PHA 
may give preference for admission of families that include a person 
with disabilities; however, the PHA may not give preference for 
admission of persons with a specific disability. This regulatory 
requirement is also applicable to nonprofit organizations that receive 
funding under this announcement; as such organizations must comply with 
the regulatory requirements applicable to the Housing Choice Voucher 
Program.
    Application Deadline. June 18, 2003.
    Match. None

Additional Information

    If you are interested in applying for funding under the Mainstream 
Program, please review carefully the General Section of this SuperNOFA 
and the following additional information.

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

    Application Due Date. Submit your completed application (an 
original and one copy) to HUD on or before midnight of June 18, 2003. 
This application deadline date is firm. In the interest of fairness to 
all competing PHAs and nonprofit organizations, HUD will not consider 
any application that is submitted after the application deadline. 
Applicants should take this practice into account and make early 
submission of their materials to avoid any risk of loss of eligibility 
brought about by unanticipated delays or other delivery-related 
problems. HUD will not accept, at any time during the competition under 
this funding announcement, application materials sent via facsimile 
(FAX) transmission. See the paragraph titled ``ADDRESSES AND 
APPLICATION SUBMISSION PROCEDURES'' in the General Section of the 
SuperNOFA regarding HUD's mailing, delivery and receipt procedures 
pertinent to the submission of your application.
    Address for Submitting Applications. Your completed application 
consists of one original and one copy. Submit your original application 
and one copy to: Grants Management Center, Mail Stop: Mainstream 
Program, 2001 Jefferson Davis Hwy, Suite 703, Arlington, VA 22202.
    The Grants Management Center (GMC) is the official place of receipt 
for all applications in response to this announcement of funding 
availability. Applications not submitted to the GMC will not be 
considered. A copy of the application is not required to be submitted 
to the local HUD Field Office. For ease of reference, the term ``local 
HUD Field Office'' will be used in this announcement to mean the local 
HUD Field Office Hub and the local HUD Field Office Program Center. A 
listing of HUD Field Offices is attached to the General Section of the 
SuperNOFA.
    Application Kits. An application kit is not necessary for 
submitting an application in response to this announcement. This 
announcement contains all the information necessary for the submission 
of your application for voucher funding for the Mainstream Program.
    Further Information and Technical Assistance. Prior to the 
application due date, you may contact George C. Hendrickson, Housing 
Program Specialist, Room 4216, Office of Public Housing and Voucher 
Programs, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410; telephone (202) 708-0477, ext. 4064. 
Subsequent to application submission, you may contact the Grants 
Management Center at (202) 358-0221. (These are not toll-free numbers.) 
Persons with hearing or speech impairments may access these numbers via 
TTY (text telephone) by calling the Federal Information Relay Service 
at 1-800-877-8339 (this is a toll-free number).
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of an application. For more information about the date and 
time of this broadcast, you should consult the HUD web site at 
www.hud.gov.

II. Amount Allocated

    (A) Available Funding for Mainstream Program. Approximately $53.6 
million in five-year funding is available for approximately 1,800 
vouchers. This allocation is consistent with the Consolidated 
Appropriations Resolution, FY 2003 (Pub. L. 108-7, approved February 
20, 2003), which provides that the Secretary of HUD may designate up to 
25 percent of the amounts appropriated for supportive housing for 
persons with disabilities, under section 811 of the Cranston-Gonzalez 
National Affordable Housing Act (NAHA), for tenant-based assistance. 
The five-year budget authority made available to applicants under this 
Mainstream Program funding announcement does not exceed 25 percent of 
the $248,886,653 million (dollar amount after rescission action) made 
available for the section 811 Program under the FY 2003 HUD 
Appropriations Act. All of the approximately $53.6 million in 
Mainstream funding is for use in the housing of elderly and non-elderly 
disabled families.

[[Page 21910]]

    (B) Funding for the Section 811 Program. The Section 811 Program of 
Supportive Housing for Persons With Disabilities, located elsewhere in 
the SuperNOFA, provides capital advances and project rental assistance 
in FY 2003. The Section 811 Program of Supportive Housing for Persons 
With Disabilities will provide funding to nonprofit organizations 
(sponsors) for the development and operation of small, scattered-site 
housing to enable adults with disabilities to live as independently as 
possible in the community. The capital advance does not need to be 
repaid as long as the housing is used for its intended purpose for at 
least 40 years. The project rental assistance funds cover the 
difference between the HUD-approved operating expenses of the housing 
and the tenant's contribution towards rent, which is 30 percent of 
adjusted income. The types of housing that are typically developed 
through the program are small group homes for no more than six persons, 
independent living projects containing individual apartment units for 
no more than 14 persons, and condominium units. Sponsors are required 
to ensure that residents have access to any necessary supportive 
services but cannot require the acceptance of such as a condition of 
occupancy.

(C) Housing Choice Voucher Funding

    (1) Funding Methodology. HUD will select applications for funding 
that meet all of the application submission requirements in section VI 
of this NOFA and that score a sufficient number of points under the 
selection criteria listed in section V of this NOFA. Applications will 
be ranked from highest to lowest score in descending order, with the 
highest ranked application selected first for funding, and so forth. 
Where two or more applicants have exactly the same score under the 
selection criteria in section V (B) of this NOFA and insufficient 
funding remains to fund all of them, applicants will be funded in the 
order of the exact percentage of disabled persons at or below the 
poverty level that is in each applicant's primary market area. The 
applicant with the highest percentage will be funded first, etc.
    HUD will limit the number of applications selected for funding from 
any State to 10 percent of the budget authority available for the 
Mainstream Program. If establishing this geographic limit would result, 
however, in unreserved budget authority, HUD may modify this limit to 
assure that all available funds are used.
    When remaining budget authority is insufficient to fund the last 
selected application in full, the application will be funded to the 
extent of the funding available, unless the applicant indicates that it 
will only accept a higher number of units. In that event, the next 
selected application shall be the one indicating a willingness to 
accept the lesser amount of funding for the units available.
    (2) Maximum Voucher Request. There is a limit on the number of 
vouchers that may be requested. An eligible applicant may apply for a 
maximum of 50 vouchers. No more than 50 vouchers will be awarded to any 
applicant under the FY 2003 Mainstream Program.
    (3) Determination of Funding Amount for the Applicant's Requested 
Number of Vouchers. HUD will determine the amount of funding that an 
applicant will be awarded under this announcement based upon an actual 
annual per unit cost {except for Moving to Work (MTW) agencies in which 
the per unit cost will be calculated in accordance with the agency's 
MTW Agreement for MTW units{time} , using the following two-step 
process:
    (a) HUD will extract the total expenditures for the PHA's housing 
choice voucher program and the unit months leased information from the 
most recent approved year-end statement (Form HUD-52681) that the PHA 
has filed with HUD. HUD will divide the total expenditures for the 
PHA's housing choice voucher program by the unit months leased to 
derive an average monthly per unit cost.
    (b) HUD will multiply the monthly per unit cost by 12 (months) to 
obtain an annual per unit cost.


    Note: Applicants who do not currently administer a housing 
choice voucher program shall have their voucher funding based upon 
the actual annual per unit costs of the PHA in their most immediate 
area administering a housing choice voucher program, using the two 
step process described immediately above.


    (4) Preliminary Fee. A preliminary fee of up to $500 per unit for 
start-up expenses will be paid to applicants selected for funding under 
this announcement who have not previously administered their own 
housing choice voucher program. The preliminary fee will be provided to 
such applicants only in their first year of administering housing 
choice vouchers.

III. Program Description, Eligible Applicants and Eligible Participants

    (A) Program Description. The Secretary has established a Mainstream 
Housing Opportunities for Persons with Disabilities Program (Mainstream 
Program) to provide vouchers to enable persons with disabilities to 
access affordable private housing of their choice.
    The Mainstream Program will assist PHAs and nonprofit organizations 
in providing housing choice vouchers to a segment of the population 
recognized by HUD's housing research as having one of the worst housing 
needs of any group in the United States, i.e., very low-income 
households with adults with disabilities. In addition, the Mainstream 
Program will assist persons with disabilities who often face 
difficulties in locating suitable and accessible housing on the private 
market.
    (B) Eligible Applicants. Public housing agencies (PHAs) and 
nonprofit organizations that provide services to the disabled (as 
defined in section IV(E) of this announcement) are eligible applicants 
for the five-year budget authority funding available under this funding 
announcement. PHAs or nonprofit organizations that fall into any of the 
categories in section VII(B)(2) of this announcement are ineligible to 
have an application funded under this announcement. Indian Housing 
Authorities (IHAs), Indian tribes and their tribally designated housing 
entities are not eligible to apply for new increments of housing choice 
voucher funding because the Native American Housing Assistance and 
Self-Determination Act of 1996 does not allow HUD to enter into new 
housing choice voucher annual contributions contracts (ACC) with IHAs 
after September 30, 1997.
    (1) PHAs.
    (a) A PHA may submit only one application under this announcement. 
This one application per PHA limit applies regardless of whether or not 
the PHA is a State or regional PHA, except in those instances where 
such a PHA has more than one PHA code number due to its operating under 
the jurisdiction of more than one HUD Field Office. In such an 
instance, a separate application under each code shall be considered 
for funding, with the cumulative total of vouchers applied for under 
the applications not to exceed the maximum of 50 vouchers the PHA is 
eligible to apply for under Section II (C)(2) of this announcement, 
i.e., no more than the number of vouchers the same PHA would be 
eligible to apply for if it only had one PHA code number.
    (b) PHAs are encouraged to involve nonprofit organizations that 
provide services to disabled families, as defined in Section III(B)(2) 
of this announcement, in the administration of the Mainstream Program's 
vouchers. In the past, such organizations have frequently demonstrated 
a capacity to assist disabled families, as well as have

[[Page 21911]]

an in-depth knowledge of the disability community.
    (i) A nonprofit organization could function as either a contract 
administrator for the PHA's Mainstream vouchers, or as a subcontractor 
responsible for providing case management services or assisting 
disabled families to locate suitable housing, gain access to supportive 
services, or identify private funding sources to cover the costs of 
unit modifications needed as a reasonable accommodation.
    (ii) Such contractual arrangements must, however, ensure equal 
opportunity among the wide variety of disabled populations in the PHA's 
service area.
    (c) In some cases an applicant currently administering the housing 
choice voucher program has, at the time of publication of this 
SuperNOFA, been designated by HUD as troubled under the Section 8 
Management Assessment Program (SEMAP), has major program management 
findings from Inspector General audits that are unresolved, or has 
other significant program compliance problems. HUD will not accept an 
application from such an applicant as a contract administrator if, on 
the application due date, the troubled designation under SEMAP has not 
been removed by HUD, and the findings or other significant program 
compliance problems are not resolved. If the applicant wants to apply 
for funding under this announcement, it must submit an application that 
designates another contractor that is acceptable to HUD. The 
application must include an agreement by the other contractor to 
administer the new funding increment on behalf of the applicant, and 
(in the instance of an applicant with unresolved major program 
management findings or other significant program compliance problems) a 
statement that outlines the steps the applicant is taking to resolve 
the program findings or compliance problems.
    Immediately after the publication of this SuperNOFA, the Office of 
Public Housing in the local HUD Field Office will notify, in writing, 
those PHAs and nonprofit organizations that have been designated by HUD 
as troubled under SEMAP, and those PHAs and nonprofit organizations 
with unresolved major program management findings or other significant 
program compliance problems that are not eligible to apply without such 
an agreement. Concurrently, the local HUD Field Office will provide a 
copy of each such written notification to the Director of the Grants 
Management Center. The applicant may appeal the decision, in writing, 
if HUD has mistakenly classified the applicant as having unresolved 
major program findings or other significant program compliance 
problems. The applicant may not appeal its designation as troubled 
under SEMAP. Any appeal with respect to unresolved major program 
management findings or other significant program compliance problems 
must be accompanied by conclusive evidence of HUD's error (i.e., 
documentation showing that the finding has been cleared or the program 
compliance problem has been resolved) and must be received prior to the 
application deadline. The appeal should be submitted to the local HUD 
Field Office where a final determination shall be made. Concurrently, 
the local HUD Field Office shall provide the Grants Management Center 
with a copy of the applicant's written appeal and the Field Office's 
written response to the appeal. Copies of all letters of ineligibility 
and matters that relate to PHA appeals referenced in this paragraph 
must be submitted to the GMC by the Field Office so as to be received 
by the GMC no later than 10 days after the application deadline date. 
Major program management findings, or significant program compliance 
problems, are those that would cast doubt on the capacity of the 
applicant to effectively administer any new housing choice voucher 
funding in accordance with applicable HUD regulatory and statutory 
requirements. (Note: If any additional PHAs or nonprofit disability 
organizations fall into the above category prior to HUD's announcement 
of awards under this NOFA, but subsequent to the local HUD Field 
Office's notification of the GMC addressed above, the Field Office 
shall immediately notify the GMC of the applicant's name and the 
category into which the applicant falls, i.e., designated as troubled 
under SEMAP, major unresolved OIG management findings, or other 
significant program compliance problems. As indicated in Section 
VII(B)(2) of this NOFA, an applicant must be eligible for funding at 
the time of the application due date, as well as at such subsequent 
time of HUD's selection of awardees. No PHA appeals, based upon Field 
Office letters of ineligibility issued after the application deadline 
date, shall be considered for purposes of eligibility for funding under 
this funding announcement.)
    (2) Nonprofit Organization. A nonprofit organization may submit 
only one application under this announcement. For purposes of the 
Mainstream Program, a nonprofit organization shall be defined as an 
organization, no part of the net earnings of which inures to the 
benefit of any member, founder, contributor, or individual, that 
provides services to persons with disabilities and has received a 
federal tax-exempt designation, under section 501(c)(3) of the Internal 
Revenue Code, from the U.S. Internal Revenue Service.
    (a) The nonprofit entity must:
    (i) Have a voluntary board;
    (ii) Be authorized by its charter or State law to enter into a 
contract with the Federal Government to provide housing assistance to 
persons with disabilities;
    (iii) Have a functioning accounting system that is operated in 
accordance with generally accepted accounting principles, or designate 
an entity that will maintain a functioning accounting system for the 
organization in accordance with generally accepted accounting 
principles;
    (iv) Practice nondiscrimination in the provision of assistance; and
    (v) Provide services to the disabled as part of its ongoing 
activities and responsibilities.
    (b) A nonprofit organization meeting the definition of a nonprofit 
organization as defined in this section III(B)(2), and wishing to apply 
for the funding available under this announcement, must have the 
capacity to:
    (i) Comply with the Section 8 Management Assessment Program (SEMAP) 
certification requirements under 24 CFR part 985.
    (ii) Carry out such housing choice voucher and SEMAP-specific 
related activities as making determinations as to rent reasonableness, 
performing housing quality standards (HQS) inspections and enforcement, 
conducting annual reexaminations of participant families, as well as 
otherwise meeting housing choice voucher program requirements under 24 
CFR part 982.
    (iii) Manage the Mainstream Program vouchers in a manner equivalent 
to an overall performance rating under SEMAP (24 CFR part 985) of at 
least ``standard'' during the first fiscal year of its receiving 
Mainstream Program funding under this funding announcement.
    (iv) Administer rental housing programs or manage rental housing, 
as demonstrated by a specific list of rental housing programs the 
nonprofit organization has administered or the rental housing the 
organization has managed (e.g., private rental housing,

[[Page 21912]]

HUD or State-related housing programs, etc.).
    Nonprofit organizations are encouraged to seek out PHAs in their 
geographic area to develop cooperative contractual relationships under 
the Mainstream Program, and to enhance services to disabled families. 
In addition to contacting local PHAs, nonprofit organizations may also 
wish to contact regional (multi-county), or statewide PHAs who may be 
applying for Mainstream Program funding.
    (C) Eligible Participants. Only a disabled family that is income 
eligible under 24 CFR 982.201(b)(1), as well as otherwise eligible 
under the regulations at 24 CFR 982.201, may receive a voucher awarded 
under the Mainstream Program. Applicants with disabilities must be 
selected from the PHA's or nonprofit organization's housing choice 
voucher waiting list. Additional information on those families and 
individuals eligible to receive a voucher is located at the following 
HUD Web site: http://www.hud.gov/offices/pih/programs/hcv.

IV. Program Requirements and Definitions

    (A) Civil Rights and Fair Housing. To be eligible to receive 
funding under this funding announcement, the applicant must meet all 
the civil rights and fair housing requirements detailed in Sections V 
(B)(2), (C) and (D) of the General Section of the SuperNOFA.
    (B) Certifications and Assurances. Each applicant is required to 
submit signed copies of Assurances and Certifications. The standard 
Assurances and Certifications are on Form HUD-52515, Funding 
Application, which includes the Equal Opportunity Certification, 
Certification Regarding Lobbying, and Certification Regarding Drug-Free 
Workplace Requirements.

(C) Voucher Assistance Requirements

    (1) Housing Choice Voucher Program Regulations. Applicants must 
administer the Mainstream Program in accordance with HUD regulations 
and requirements governing the Housing Choice Voucher Program. The only 
exception to this requirement shall be for nonprofit organizations 
which shall not be required to comply with the requirements of 24 CFR 
part 903, subpart B concerning the requirement for a PHA Plan.
    (2) Housing Choice Voucher Program Admission Requirements. Housing 
choice voucher assistance must be provided to eligible disabled 
families in conformity with regulations and requirements governing the 
Housing Choice Voucher Program and the PHA's administrative plan.
    (3) Turnover. When a voucher under this announcement becomes 
available for reissue (e.g., the family initially selected for the 
program drops out of the program or is unsuccessful in the search for a 
unit), the voucher may be used only for another family eligible for 
assistance under this announcement for five years for the five-year 
funding from the date the rental assistance is placed under an annual 
contributions contract (ACC). In addition, any renewal by HUD of the 
five-year voucher funding (where the source of the renewal funding is 
Section 811 derived) shall require the continued reissuance of the 
vouchers to disabled families.
    If there is ever an insufficient pool of disabled families on the 
PHA's or nonprofit organization's housing choice voucher waiting list, 
the PHA or nonprofit organization shall conduct outreach to encourage 
eligible persons to apply for this special allocation of vouchers. 
Outreach may include contacting independent living centers, advocacy 
organizations for persons with disabilities, and medical, mental 
health, and social service providers for referrals of persons receiving 
such services who would benefit from housing choice voucher assistance. 
If the PHA's or nonprofit organization's housing choice voucher waiting 
list is closed, and if the PHA or nonprofit organization has 
insufficient applicants on its housing choice voucher waiting list to 
use all awarded vouchers under this announcement, the PHA or nonprofit 
disability organization should open the waiting list for applications 
from disabled families. PHAs and nonprofit organizations must take care 
to keep track of the number of disabled vouchers they have been awarded 
under this funding announcement versus the number of such vouchers that 
have actually been issued to disabled families.
    (D) PHA and Nonprofit Organization Responsibilities. In addition to 
the responsibilities under the Housing Choice Voucher Program and HUD 
regulations concerning nondiscrimination based on disability (24 CFR 
8.28) and to affirmatively further fair housing, PHAs and nonprofit 
organizations that receive voucher funding shall:
    (1) Where requested by an individual, assist program participants 
to gain access to supportive services available within the community, 
but not require eligible applicants or participants to accept 
supportive services as a condition of participation or continued 
occupancy in the program.
    (2) Identify public and private funding sources to assist 
participants in covering the costs of modifications that need to be 
made to their units as a reasonable accommodation for their 
disabilities.
    (3) Not deny persons who qualify for rental assistance under this 
program other housing opportunities, or otherwise restrict access to 
PHA or nonprofit organization programs to eligible applicants who 
choose not to participate.
    (4) Provide housing choice voucher search assistance.
    (5) In accordance with regulatory guidance, provide higher rents to 
owners necessary for the provision of accessible units and structural 
modifications for persons with disabilities.
    (6) Provide technical assistance to owners for making reasonable 
accommodations or making units accessible to persons with disabilities.
    (E) Definitions. The following definitions apply to the 
approximately $53.6 million in five-year budget authority available 
under this funding announcement.
    (1) Disabled Family. Disabled family means a family whose head, 
spouse, or sole member is a person with disabilities. It may include 
two or more persons with disabilities living together, or one or more 
persons with disabilities living with one or more live-in aides.
    (2) Person with disabilities.
    (a) Means a person who:
    (i) Has a disability as defined in 42 U.S.C. 423;
    (ii) Is determined, pursuant to HUD regulations, to have a 
physical, mental or emotional impairment that:
    (A) Is expected to be of long-continued and indefinite duration;
    (B) Substantially impedes his or her ability to live independently; 
and
    (C) Is of such a nature that the ability to live independently 
could be improved by more suitable housing conditions;
    (iii) Has a developmental disability as defined in 42 U.S.C. 6001;
    (b) Does not exclude persons who have the disease of acquired 
immunodeficiency syndrome or any conditions arising from the etiologic 
agent for acquired immunodeficiency syndrome;
    (c) For purposes of qualifying for low-income housing, does not 
include a person whose disability is based solely on any drug or 
alcohol dependence.
    (3) Housing choice voucher search assistance. Assistance to 
increase access by program participants to housing units in a variety 
of neighborhoods (including areas with low poverty

[[Page 21913]]

concentrations) and to locate and obtain units suited to their needs.
    (F) Homeownership and Family Self-Sufficiency (FSS). Applicants are 
encouraged to establish or expand upon an existing housing choice 
voucher homeownership program, as well as complete the closing process 
on homeownership units. Applicants are also encouraged to fill slots 
under a mandatory FSS program and to establish a voluntary FSS program 
and fill slots thereunder where a mandatory FSS program is not 
required.
    (G) Increasing the Participation of Faith-Based and Community-Based 
Organizations in HUD Program Implementation. HUD believes that 
grassroots organizations, e.g., faith communities, civic organizations, 
and other community-based organizations, have not been effectively 
utilized. These grassroots organizations have a strong history of 
providing vital community services such as assisting the homeless and 
preventing homelessness; counseling individuals and families on fair 
housing rights; providing elderly housing opportunities; developing 
first time homeownership programs; increasing homeownership and rental 
housing opportunities; developing affordable and accessible housing in 
neighborhoods across the country; and creating economic development 
programs. The goal of this policy priority is to make HUD's housing 
choice voucher program more effective, efficient, and accessible by 
expanding opportunities for faith-based and other community-based 
organizations to participate in developing solutions for their own 
neighborhoods. Applicants are encouraged to coordinate with and 
otherwise involve faith-based and other community-based organizations 
in those activities under the housing choice voucher program where 
their services, expertise and knowledge may be most effective.
    (H) Conducting Business in Accordance With Core Values and Ethical 
Standards. To reflect core values, all PHAs shall develop and maintain 
a written code of conduct in the PHA administrative plan that (1) 
requires compliance with the conflict of interest requirements of the 
Housing Choice Voucher Program at 24 CFR 982.161, and (2) prohibits the 
solicitation or acceptance of gifts or gratuities, in excess of a 
nominal value, by any officer or employee of the PHA, or any 
contractor, subcontractor or agent of the PHA. The PHA's administrative 
plan shall state PHA policies concerning PHA administrative and 
disciplinary remedies for violation of the PHA code of conduct. The PHA 
shall inform all officers, employees and agents of its organization of 
the PHA's code of conduct.
    (I) Pre-Award Accounting System Surveys. See Section V (B)(5) of 
the General Section of the SuperNOFA regarding those applicants that 
may be subject to HUD's arranging for a pre-award survey of an 
applicant's financial management system.

V. Application Selection Process

    (A) Rating and Ranking. After the Grants Management Center has 
screened and disapproved any applications found unacceptable for 
further processing, the Grants Management Center will review all 
acceptable applications to ensure that they are technically adequate 
and responsive to the requirements of this announcement. HUD 
Headquarters will fund all applications from PHAs and nonprofit 
organizations that are recommended for funding by the Grants Management 
Center unless HUD receives approvable applications for more funds than 
are available. HUD will select applicants to be funded based upon the 
methodology indicated in Section II (C)(1) of this NOFA. Applications 
meeting all the application submission requirements of Section VI of 
this NOFA will be rated and ranked on the basis of their score under 
the selection criteria in Section V (B) of this NOFA. The maximum score 
under the selection criteria is 100 points.

(B) Selection Criteria

(1) Selection Criterion 1, Disabled Persons at or Below the Poverty 
Level. (40 points)
    (a) Description: This criterion assesses the number of disabled 
persons at or below the poverty level in the primary market area served 
by the applicant, as a percentage of such disabled persons on a 
national basis using 2000 census data. The primary market area is 
defined as the geographic area in which the applicant is legally 
authorized to operate and where the vouchers will be issued. (See 
section VI (I) of this NOFA regarding the description of the primary 
market area required to be included in each PHA's/nonprofit 
organization's application.) A table listing all the cities and 
counties with a population of 10,000 or more persons within the nation 
(States and territories) will be listed with this funding announcement 
at the following HUD Web site: http://www.hud.gov/offices/adm/grants/fundsavail.cfm. Also indicated on the table will be the number of 
disabled persons/percentage of such disabled persons at or below the 
poverty level within each city or county, as a percentage of the number 
of disabled persons at or below the poverty level within the nation. An 
applicant (and the GMC during the review of applications) will use the 
table to determine the percentage of disabled persons at or below the 
poverty level that is in the applicant's primary market area. The 
percentage will determine the number of points that the applicant is 
eligible for under Selection Criterion 1.
    (b) Rating and Assessment: Points will be assigned based upon the 
number of disabled persons at or below the poverty level in the 
applicant's primary market area, as a percentage of such persons within 
the nation. For each tenth of one percent (.001) within the applicant's 
primary market area the applicant will receive 5 points. Percentages of 
.0015, .0025, etc. or higher but less than the next whole tenth of one 
percent, i.e., .002, .003, etc. shall be rounded to the next whole 
tenth of a percentage point. An applicant having a primary market area 
with a population of 10,000 or fewer or for which disability 
percentages are not listed on the table will receive 5 points under 
Selection Criterion 1. Likewise, an applicant having a primary market 
area comprised of more than one community with a population of 10,000 
or fewer shall receive a total of 5 points for all such communities 
combined. A maximum of 40 points is available under Selection Criterion 
1 regardless of how high a percentage of disabled persons at or below 
the poverty level is located within the applicant's primary market 
area.
(2) Selection Criterion 2, Lease-Up and Budget Authority Utilization. 
(25 points)
    (a) Description: This criterion focuses on a PHA's and nonprofit 
organization's success in leasing its housing choice vouchers, and 
using the budget authority associated with its vouchers. While a PHA or 
nonprofit organization must have either a lease-up or budget authority 
utilization rate of at least 97 percent under section VII (B)(2)(c) of 
this NOFA in order to have an acceptable application, Selection 
Criterion 2 provides for the award of selection points to those PHAs 
having a voucher lease-up rate or a budget authority utilization rate 
of 99 percent or higher. The lease-up and budget authority utilization 
percentages for a PHA's or nonprofit organization's voucher program 
will be calculated by HUD based upon the methodology indicated in 
Appendix A of this NOFA, and shall cover fiscal years ending December 
31, 2001; March 31, 2002; June 30, 2002; and September 30, 2002.

[[Page 21914]]

Lease-up or budget authority utilization rates of a half or more of one 
percentage point will be rounded to the next highest percentage point 
for purposes of qualifying for the points available under Selection 
Criterion 2 (for example, 98.5 percent will be rounded up to 99 
percent). PHAs or nonprofit organizations that meet either the 97 
percent lease-up or budget authority utilization threshold requirement 
in section VII(B)(2)(c) of this NOFA, or that have a 99 percent or 
higher lease-up or budget authority utilization rate and qualify for 
the points available under Selection Criterion 2 will be listed with 
this funding announcement at the following HUD Web site: http://www.hud.gov/offices/adm/grants/fundsavail.cfm. A PHA or nonprofit 
organization not listed may submit information with its application, 
following the methodology of Appendix B and using the format of 
Appendix C which includes a completed example and the blank form format 
to be filled out and submitted with the PHA's or nonprofit 
organization's application, for its fiscal year December 31, 2001; 
March 31, 2002; June 30, 2002; September 30, 2002 or subsequent fiscal 
year not yet processed by HUD but certified by the applicant.
    See Section VI (G) of this NOFA regarding the certification 
requirement applicable to MTW PHAs in connection with qualifying for 
the points available under Selection Criterion 2.
    (b) Rating and Assessment: The GMC will assign point values as 
follows:
    [sbull] 25 points: The PHA or nonprofit organization has a lease-up 
or budget authority utilization rate for its voucher program of 99 
percent.

    Note: PHAs or nonprofit organizations without a voucher program 
or whose total voucher program is excluded (annual budget authority 
associated with new funding increments obligated during the 
applicant's last fiscal year and annual budget authority for 
litigation) from the lease-up/budget authority utilization 
calculation as per the methodology in Appendix A of this funding 
announcement may also be eligible to receive 25 points under 
Selection Criterion 2. In order to get the 25 points, the PHA or 
nonprofit organization will be required to submit a certification 
statement with its application certifying that it will lease all 
vouchers it is awarded under this NOFA within 180 days of the award 
of funding.

(3) Selection Criterion 3, Area-Wide Housing Opportunities (15 Points)
    (a) Description: This criterion addresses the voluntary efforts 
that an applicant may take to provide area-wide housing opportunities 
for families. The efforts described in response to this criterion must 
be beyond those required by federal law or regulation such as the 
portability provisions of the Housing Choice Voucher Program. 
Applicants should take note that the difference between being eligible 
for 15 points versus 10 points under this selection criterion requires 
undertaking efforts to end chronic homelessness on the part of disabled 
families.
    (b) Rating and Assessment: The GMC will assign point values as 
follows:

    [sbull] 15 points: The applicant provides information indicating 
that it will provide housing counseling for disabled families that want 
to move to low-poverty or non-minority areas, or the applicant has 
established a contractual relationship with a PHA, nonprofit agency or 
local governmental entity to provide housing counseling for disabled 
families that want to move to low-poverty or non-minority areas. In 
addition, the applicant must target not less than 10 percent of the 
vouchers awarded under this funding announcement to assisting those 
disabled families that are chronically homeless as defined in section 
II (H) of the General Section of the SuperNOFA, and as part of the 
counseling provided to such families undertake two or more of the 
activities listed in that section. (The five PHAs approved for the FY 
1993 Moving to Opportunity (MTO) for Fair Housing Demonstration, the 11 
PHAs approved under the Housing Search Assistance Program (HSAP), and 
any other PHAs that receive housing counseling funds from HUD (e.g., in 
settlement of litigation involving the desegregation or demolition of 
public housing, regional opportunity counseling, or mixed population 
projects) may qualify for points under this assessment, but these PHAs 
must identify all activities to be undertaken, other than those funded 
by HUD, to expand housing opportunities.)
    [sbull] 10 points: The applicant provides information indicating 
that it will provide housing counseling for disabled families that want 
to move to low-poverty or non-minority areas, or the applicant has 
established a contractual relationship with a PHA, nonprofit agency or 
local governmental entity to provide housing counseling for disabled 
families that want to move to low-poverty or non-minority areas. (The 
five PHAs approved for the FY 1993 Moving to Opportunity (MTO) for Fair 
Housing Demonstration, the 11 PHAs approved under the Housing Search 
Assistance Program (HSAP), and any other PHAs that receive housing 
counseling funds from HUD (e.g., in settlement of litigation involving 
the desegregation or demolition of public housing, regional opportunity 
counseling, or mixed population projects) may qualify for points under 
this assessment, but these PHAs must identify all activities to be 
undertaken, other than those funded by HUD, to expand housing 
opportunities.)
    [sbull] 5 points: The applicant provides information indicating 
that it has implemented other initiatives that have resulted, and will 
continue to result, in expanding housing opportunities for disabled 
families in areas that do not have undue concentrations of poverty or 
minority families.
(4) Selection Criterion 4, Commitments From Outside Agencies (10 
Points)
    (a) Description: The applicant documents that it has entered into 
agreements with one or more organizations to assist disabled families 
with moving costs, security deposits, utility hook-up fees, utility 
deposits, medical care, transportation, educational opportunities, 
employment and child care.
    (b) Rating and Assessment: The GMC will assign points as follows:

    [sbull] 10 points: The applicant provides copies of the agreements 
that it has entered into with three or more organizations to assist 
disabled families with moving costs, security deposits, utility hook-up 
fees, utility deposits, medical care, transportation, educational 
opportunities, employment and child care. The applicant must also 
provide information indicating it has taken one or more of the 
activities to promote the participation of grass-roots and other 
community-based organizations indicated in Section II (6) of the 
General Section of the SuperNOFA, as relates to the aforementioned 
agreements. The applicant's provision of the former, but not the latter 
information, shall result in the application receiving no more than 8 
points under this Selection Criterion 4, as indicated below.
    [sbull] 8 points: The applicant provides copies of the agreements 
that it has entered into with three or more organizations to assist 
disabled families with moving costs, security deposits, utility hook-up 
fees, utility deposits, medical care, transportation, educational 
opportunities, employment and child care.
    [sbull] 5 points: The applicant provides copies of the agreements 
it has entered into with two organizations to assist disabled families 
with moving costs, security deposits, utility hook-up fees, utility 
deposits, medical care, transportation, educational opportunities, 
employment and child care.

[[Page 21915]]

    [sbull] 3 points: The applicant provides copies of the agreements 
it has entered into with one organization to assist disabled families 
with moving costs, security deposits, utility hook-up fees, utility 
deposits, medical care, transportation, educational opportunities, 
employment and child care.
(5) Selection Criterion 5, Achieving Results and Program Evaluation (10 
Points)
    (a) Description: This criterion emphasizes HUD's determination to 
ensure that applicants meet commitments made in their applications and 
assess their performance in meeting performance goals. HUD requires 
Mainstream Program applicants to develop an effective, quantifiable, 
out-come oriented monitoring and evaluation plan for measuring 
performance and determining that goals have been met. The plan must 
include interim products or activities that lead to the ultimate 
achievement of the applicant's goals. Performance indicators must also 
be developed by the applicant to measure performance. Performance 
indicators must be objectively quantifiable and measure actual 
achievements against planned achievements. The applicant's evaluation 
and monitoring plan must identify what it is going to measure, how it 
will be measured, and the steps that will be taken to make adjustments 
to the plan if performance targets are not met within established 
deadlines.
    An example of a goal is that the applicant will have 100 percent of 
the Mainstream vouchers under lease by disabled families within 180 
days of the effective date of the Annual Contributions Contract (ACC) 
for the funding increment. Examples of interim activities to achieve 
such a goal might include assisting disabled families with 
transportation to rental properties, efforts to identify and provide 
lists of accessible units, approval of exception payment standards, or 
use of special housing types. An example of related performance 
indicators might include assisting disabled families with 
transportation needs within 24 hours of a disabled family's request to 
visit a potential rental unit, and that 50 percent of all the 
Mainstream vouchers are to be under lease within 90 days of the 
ultimate goal of having all vouchers under lease within 180 days.
    Examples of other areas in which applicants may wish to consider 
establishing goals are with respect to Selection Criterion 3, Selection 
Criterion 4, any one or more of the areas to be addressed in the 
applicant's Mainstream Program Operating Plan (see Section IV (D) of 
this NOFA), etc.
    (b) Rating and Assessment: The GMC will assign points as follows:

    [sbull] 10 points: The applicant submits a monitoring and 
evaluation plan meeting the descriptive requirements outlined 
immediately above.

VI. Application Submission Requirements

    Applicants are requested to read this section very carefully, as it 
addresses the specific information that must be in the applications 
submitted to HUD under this NOFA. Applications failing to provide this 
information will be determined either ineligible for processing, or in 
the instance of an application having a curable (correctable) technical 
deficiency (see the General Section of the SuperNOFA), the applicant 
will be requested to submit additional information.
    Those application submission items identified below in this Section 
VI as ``not curable'' shall mean that any item, e.g., Mainstream 
Program Operating Plan, for which the applicant does not provide all 
the requested information shall result in the application being 
determined ineligible for processing. The turnaround times established 
by HUD in the instance of curable technical deficiencies are relatively 
brief, so the initial submission of a carefully prepared and complete 
application is extremely important. Applicants should also carefully 
review sections VII (B)(2)(b) and (c) of this funding announcement to 
determine if their SEMAP designation, OIG status, existence of 
significant program compliance problems, or voucher lease-up/budget 
authority utilization rate will require the submission of additional 
information with their application.
    (A) Form HUD-52515. All applicants must complete and submit Form 
HUD-52515, Funding Application, for the Housing Choice Voucher Program. 
This form includes all necessary certifications for Fair Housing, Drug 
Free Workplace, and Lobbying Activities. Applicants are required to 
enter their housing authority code number (for example, CT002), 
telephone number, facsimile number and electronic mail address in the 
same space at the top of the form where they also are to enter the 
applicant's name and mailing address. Section C of the form should be 
left blank. The form must be completed in its entirety, with the 
exception of Section C, signed and dated. A copy of Form HUD-52515 is 
included in the forms found in Appendix B to the General Section of the 
SuperNOFA. Copies of the form may also be downloaded from the following 
HUD Web site: http://www.hud.gov. (On the HUD web site click on 
``handbooks and forms,'' then click on ``forms,'' then click on ``HUD-
5'' and click on ``HUD-52515.'' In addition, the Form HUD-52515 will 
also be posted with the Mainstream funding announcement at the 
following HUD Web site: http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    In the instance of a nonprofit organization that does not currently 
manage a housing choice voucher program, the nonprofit organization 
shall fill in Section B, Proposed Assisted Dwelling Units, on the form 
by either using numbers based on information requested from the nearest 
public housing agency, based upon its housing choice voucher waiting 
list, or based upon information from local advocacy groups and local 
public and private service agencies familiar with the needs of elderly 
and non-elderly persons with disabilities, census data, and pertinent 
information from the Consolidated Plan applicable to the applicant's 
jurisdiction. Section C, Average Monthly Adjusted Income, should be 
left blank. Section F, New HA Information, requires information on 
Financial and Administrative Capability and Qualification as a HA. For 
Financial and Administrative Capability, a nonprofit organization may 
reference that part of its application addressing the requirements of 
Section VI (E) of this announcement. For Qualification as an HA, the 
nonprofit organization must submit information validating its 
qualifications as a nonprofit organization as defined in section III 
(B)(2) of this announcement. The submission of enabling legislation is 
not required to accomplish this purpose, but a legal opinion supportive 
of the applicant's status as a nonprofit organization, as defined in 
the first sentence of section III (B)(2)(a) of this announcement is 
required.
    The Form HUD-52515 must be signed and dated by the applicant. The 
signature and date shall signify that the information provided on the 
form is complete and accurate, and that all other information provided 
by the applicant in its application (including any certifications) are 
complete and accurate.
    (B) Letter of Intent and Narrative. The applicant must state in its 
cover letter to the application whether it is a PHA applying for five-
year funding, or a nonprofit organization applying for five-year 
funding. The applicant also must indicate the number of vouchers being 
requested, whether it will accept a reduction in the number of 
vouchers,

[[Page 21916]]

and the minimum number of vouchers the applicant will accept, since the 
funding is limited and HUD may only have enough funds to approve an 
amount smaller than the number of vouchers requested. The maximum 
number of vouchers that an applicant may apply for under this 
announcement is limited to 50.
    The letter of intent and narrative should also include information 
addressing how the applicant meets the selection criteria in section V 
(B) of this NOFA. Failure of the applicant to provide information in 
connection with selection criteria 1 and 2 shall result in the GMC 
scoring the applicant solely on the basis of information HUD already 
has on-hand. Failure of the applicant to provide the information called 
for under selection criteria 3, 4 and 5 shall be considered not 
curable, but shall not make the application ineligible for processing. 
Failure to provide the information shall simply mean that the applicant 
is ineligible for the points under the categories for which it failed 
to provide the information requested in this funding announcement.
    PHAs and nonprofit organizations that do not currently administer a 
housing choice voucher program must identify the nearest PHA (including 
the full name, address, and telephone no.) that does administer a 
housing choice voucher program. This information will be necessary for 
HUD to calculate annual per unit costs for voucher funding awarded 
under this funding announcement for such PHAs and nonprofit 
organizations (see section II (C)(3) of this funding announcement).
    (C) Description of Need for Mainstream Program Vouchers. The PHA's 
and nonprofit organization's application must demonstrate a need for 
Mainstream Program vouchers by providing information documenting that 
the demand for housing for non-elderly and elderly persons with 
disabilities in connection with a request for five-year funding under 
this announcement would equal or exceed the requested number of 
vouchers. The applicant must assess and document the housing need for 
elderly and non-elderly persons with disabilities using a range of 
sources including, but not limited to: census data, information from 
the applicant's waiting list (both public housing and housing choice 
voucher), statistics on recent public housing admissions and housing 
choice voucher use, data from local advocacy groups and local public 
and private service agencies familiar with the housing needs of elderly 
and non-elderly persons with disabilities, and pertinent information 
from the Consolidated Plan [including the Analysis of Impediments to 
Fair Housing Choice (AI)] applicable to the applicant's jurisdiction. 
{See 24 CFR 91.205(d).{time} 
    Failure of the applicant to provide the information required under 
this section (C) shall be determined not curable and the application 
deemed ineligible for processing.
    (D) Mainstream Program Operating Plan. The application must include 
a description of an adequate plan for operating a program to serve 
eligible disabled families, including:
    (1) A description of how the applicant will carry out its 
responsibilities under 24 CFR 8.28 to assist recipients in locating 
units with needed accessibility features; and
    (2) A description of how the applicant will identify private or 
public funding sources to help participants cover the costs of 
modifications that need to be made to their units as reasonable 
accommodations to their disabilities.
    (3) A description of how the applicant will use a nonprofit 
organization or PHA (if any) under a contract to administer the 
Mainstream Program vouchers, or to otherwise provide services.
    Failure of the applicant to provide the information required under 
this section (D) shall be determined not curable and the application 
deemed ineligible for processing.
    (E) Certification Applicable to Nonprofit Organizations. A 
nonprofit organization applying for funding available under this 
announcement must provide a certification stating that the applicant 
can meet the capacity requirements applicable to a nonprofit 
organization delineated in section III (B)(2)(b) of this announcement. 
The certification must specifically list the four capacity requirements 
from that paragraph, and must specifically list the rental housing 
programs the nonprofit organization has administered or the rental 
housing the nonprofit organization has managed.
    Failure of the applicant to provide the information required under 
this section (E) shall be determined not curable and the application 
deemed ineligible for processing.
    (F) Statement Regarding the Steps the PHA and Nonprofit 
Organization Will Take to Affirmatively Further Fair Housing. The 
statement must include specific steps to address the categories 
outlined in sections V (D)(1), (2) and (3) in the General Section of 
the HUD SuperNOFA.
    (G) Moving to Work (MTW) PHA Certification. MTW agencies required 
to report under SEMAP, as well as those MTW agencies not required to 
report under SEMAP, shall be required to meet the 97 percent lease-up 
and budget authority utilization requirement addressed in Section VII 
(B)(2)(c) of this funding announcement. MTW agencies must submit a 
certification with their application certifying as to their voucher 
lease-up and budget authority utilization percentages. Submission of 
Appendix B information by MTW PHAs is not required.
    Failure of the applicant to provide the certification required 
under this section (G) shall be determined not curable and the 
application deemed ineligible for processing.
    (H) Form HUD-2993. All applicants must complete and submit Form 
HUD-2993, Acknowledgement of Application Receipt. In addition to the 
applicant's entering its name and address on the form, the full title 
of the program under which the applicant is seeking funding must also 
be entered. This form is located in the General Section of the 
SuperNOFA and is also available at the following HUD Web site: http://www.hud.gov. On this web site click on ``handbooks and forms.''
    (I) Identification of Primary Market Area. Each applicant must 
specify in the application its primary market area, i.e., the 
geographic area in which it is legally authorized to operate and where 
the vouchers will be issued. This information may be different from 
that entered by such an applicant on the Form HUD-52515, as the form 
calls for the applicant to identify its ``legal area of operation'' 
which may be far more geographically expansive than the specific city, 
county, or area within a State where a PHA (particularly a regional or 
State PHA), or nonprofit organization intends to issue the vouchers. 
This information is critical because, as indicated in section V 
(B)(1)(a) of this funding announcement, the geographic area in which 
the vouchers are intended to be issued and in which the applicant is 
legally authorized to operate a Housing Choice Voucher Program will be 
used by the applicant (and subsequently by the GMC during the review of 
applications) to determine the percentage of the nation's housing needs 
for disabled persons at or below the poverty level that are within the 
applicant's primary market area. For example, although an applicant may 
be legally authorized to operate throughout the entire county in which 
it is located, if the vouchers will be issued only in two cities within 
that county then the primary market area is those two cities and not 
the entire county. Conversely, if the applicant is planning to issue 
vouchers to all cities within a county, then the applicant

[[Page 21917]]

must list the county only and not list the individual cities within 
that county (the county is the sum of all housing needs for cities 
within a county). If, in addition to the county, there are individual 
cities outside the county where the applicant also will be issuing 
vouchers, the PHA then also must list these cities. A State PHA or 
nonprofit organization legally authorized to operate throughout the 
entire State, but which intends to issue the fair share vouchers in 
only one county, must list solely that county as its primary market 
area. In addition, the primary market area shall not include a 
geographic area in which the applicant is issuing vouchers, outside its 
normal, legally authorized area of operation, based upon an agreement 
with another agency/PHA to issue vouchers in the other agency's/PHA's 
jurisdiction.

VII. Corrections to Deficient Applications

    (A) Acceptable Applications. The application must include all of 
the information specified in Section VI, Application Submission 
Requirements, of this announcement. The General Section of the 
SuperNOFA provides the procedures for corrections to deficient 
applications. {Note: The submission by applicants of clarifications or 
corrections of technical deficiencies under this funding announcement 
must be provided to HUD within 7 calendar days (not the 14 calendar 
days indicated in the General Section of the SuperNOFA) of receipt of 
the HUD notification.{time} 
    (B) Unacceptable Applications. (1) After the 7-calendar day 
technical deficiency correction period, the Grants Management Center 
will disapprove all applications from PHAs and nonprofit organizations 
that the Grants Management Center determines are not acceptable for 
processing. The Grants Management Center's notification of rejection 
letter must state the basis for the decision. The applicant may request 
an applicant debriefing. Beginning not less than 30 days after the 
awards for assistance are announced in the Federal Register, and for 
not longer than 120 days, HUD will, upon receiving a written request 
from the applicant, provide a debriefing to the requesting applicant. 
(See the General Section of the SuperNOFA for additional information 
regarding a debriefing.) Applicants requesting to be debriefed must 
send a written request to Michael Diggs, Director, Grants Management 
Center, Department of Housing and Urban Development, 501 School Street, 
SW., Suite 800, Washington, DC 20024.
    (2) Applications from PHAs or nonprofit organizations that fall 
into any of the following categories will not be processed:
    (a) PHAs or nonprofit organizations that do not meet the fair 
housing and civil rights compliance threshold requirements of sections 
V(B)(2), (C) and (D) of the General Section of the SuperNOFA.
    (b) The applicant is designated as troubled by HUD under SEMAP, or 
has major program management findings in an Inspector General audit for 
its voucher program that are unresolved, or has other significant 
program compliance problems that are not resolved. Major program 
management findings, or significant program compliance problems, are 
those that would cast doubt on the capacity of the applicant to 
effectively administer any new housing choice voucher funding in 
accordance with applicable HUD regulatory and statutory requirements. 
The only exception to this category is if the applicant has been 
identified under the policy established in section III (B)(1)(c) of 
this announcement and the applicant makes application with a designated 
contract administrator.
    (c) The PHA or nonprofit organization has failed to achieve a 
lease-up or budget authority utilization rate of 97 percent for its 
voucher units under contract for its fiscal year ending on either 
December 31, 2001; March 31, 2002; June 30, 2002; or September 30, 
2002. Applicants that have been determined by HUD to have passed either 
the 97 percent lease-up, or 97 percent budget authority utilization 
requirement for their fiscal year ending on December 31, 2001; March 
31, 2002; June 30, 2002; or September 30, 2002, will be listed with the 
Mainstream funding announcement at the following HUD Web site: http://www.hud.gov/offices/adm/grants/fundsavail.cfm. An applicant not listed 
may submit monthly lease-up and budget authority utilization 
information (following the methodology of Appendix A of this 
announcement and using the format in Appendix B, which also includes a 
blank version of the format) as part of its application supportive of 
its contention that it should have been included among those potential 
applicants HUD listed on the HUD Web site as having achieved either a 
97 percent lease-up rate or 97 percent budget authority utilization 
rate for fiscal years ending on December 31, 2001; March 31, 2002; June 
30, 2002; September 30, 2002; or subsequent full fiscal year not yet 
processed by HUD but certified by the applicant. Applicants not listed 
on the aforementioned HUD Web site must submit utilization information 
using the blank form in Appendix B, as the application will otherwise 
be determined ineligible for funding under this announcement.

    Note:  The lease-up and budget authority utilization requirement 
shall not apply to applicants not currently administering a voucher 
program, or to new units associated with funding increments 
obligated during the applicant's last fiscal year and units 
obligated for litigation. In addition, lease-up or budget authority 
utilization rates of 96.5 percent but less than 97 percent shall be 
rounded up to 97 percent.)

    See section VI (G) of this funding announcement which addresses the 
certification to be submitted by MTW agencies in connection with the 97 
percent lease-up and budget authority utilization requirements 
referenced above.
    (d) The PHA or nonprofit organization is involved in litigation and 
HUD determines that the litigation may seriously impede the ability of 
the applicant to administer the vouchers.
    (e) An application that does not comply with the requirements of 24 
CFR 982.103 and this program section after the expiration of the 7-
calendar day technical deficiency correction period will be rejected 
from processing.
    (f) The application was submitted after the application due date.
    (g) The application was not submitted to the official place of 
receipt as indicated in the paragraph entitled ``Address for Submitting 
Applications'' at the beginning of this announcement.
    (h) The applicant has been debarred or otherwise disqualified from 
providing assistance under the program.
    (i) The PHA did not have its PHA plans approved by HUD for the FY 
2001 plan cycle on the application due date for this funding 
announcement. (This category of ineligibility does not apply to 
nonprofit organizations whose housing choice voucher program is based 
solely upon previously approved housing choice vouchers under the 
Mainstream Program.)

VIII. Environmental Requirements

    In accordance with 24 CFR 50.19(b)(11) and 58.35(b)(1) of the HUD 
regulations, tenant-based rental activities under this program are 
categorically excluded from the requirements of the National 
Environmental Policy Act of 1969 (NEPA) and are not subject to 
environmental review under the related laws and authorities. Activities 
under the homeownership option of this program are categorically 
excluded from NEPA requirements and excluded from other environmental 
requirements

[[Page 21918]]

under 24 CFR 58.5 in accordance with 24 CFR 58.35(b)(5), but PHAs and 
nonprofit organizations are responsible for the environmental 
requirements in 24 CFR 982.626(c).

IX. Authority

    Authority for this program is found in the Consolidated 
Appropriations Resolution, FY 2003 (Pub. L. 108-7, approved February 
20, 2003).
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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

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  Federal Register / Vol. 68, No. 80 / Friday, April 25, 2003 / 
Notices  

[[Page 21925]]



Funding Availability for Section 202 Supportive Housing for the Elderly 
Program (Section 202 Program)

Program Overview

    Purpose of the Program. This program provides supportive housing 
for very low-income persons 62 years of age or older.
    Available Funds. Approximately $473.8 million, plus any carryover 
funds available.
    Eligible Applicants. Private nonprofit organizations and nonprofit 
consumer cooperatives (see Section III(B) of this program NOFA). (See 
Section VIII of this program NOFA for information regarding the 
formation of the Owner corporation).
    Eligible Activities. New construction, rehabilitation, or 
acquisition of housing with or without rehabilitation (see Section 
III(C) of this NOFA).
    Application Deadline. June 13, 2003.
    Match Requirements. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

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

    Application Due Date. An original and four copies of your completed 
application must be submitted to the appropriate HUD field office no 
later than the application due date.
    See the General Section, Mailing and Receipt Procedures and Proof 
of Timely Submission, of this SuperNOFA for specific procedures 
governing the submission of applications to HUD Field Offices.
    Address for Submitting Applications. Submit an original and four 
copies of your completed application to the Director of the appropriate 
Multifamily Hub Office or Multifamily Program Center as listed in 
Appendix B to the Section 811 program section of this SuperNOFA with 
the following exceptions:
    1. Applications for projects proposed to be located within the 
jurisdiction of the Sacramento, California Office must be submitted to 
the San Francisco, California Office.
    2. Applications for projects proposed to be located within the 
jurisdiction of the Cincinnati, Ohio Office must be submitted to the 
Columbus, Ohio Office.
    3. Applications for projects proposed to be located within the 
jurisdiction of the Washington, DC Office must be submitted to the 
Baltimore, Maryland Office.
    4. Applications for projects proposed to be located within the 
jurisdiction of the Grand Rapids, Michigan Office must be submitted to 
the Detroit, Michigan Office.
    The SuperNOFA also includes a listing of the Multifamily Hubs and 
Program Centers, their addresses and telephone numbers, including TTY 
(text telephone) numbers. This information is also available from HUD's 
SuperNOFA Information Center at 1-800-HUD-8929 and from the Internet 
through the HUD Web site at http://www.hud.gov/grants. Persons with 
hearing or speech impairments may call the Center's TTY number at 1-
800-HUD-2209.
    All information required to complete and return a valid application 
is included in the General Section and this Program Section of the 
SuperNOFA, including appendices. Copies of the General Section, this 
Program Section, and appendices, including the application, are 
available and may be downloaded from HUD's Web site at http://www.hud.gov.
    For Further Information and Technical Assistance. You may contact 
the appropriate Multifamily Hub Office or Multifamily Program Center, 
or Evelyn Berry at HUD Headquarters at (202) 708-3000 (this is not a 
toll-free number), or access the Internet at http://www.hud.gov/grants. 
Persons with hearing and speech impairments may access the above number 
via TTY by calling the Federal Relay Service at 1-800-877-8339 (this is 
a toll-free number).
    HUD encourages minority organizations and grassroots organizations 
(e.g., civic organizations, faith-communities and grassroots faith-
based and other community-based organizations) to participate in this 
program and strongly recommends that prospective applicants attend the 
local HUD Office workshop. At the workshops, HUD will explain 
application procedures and requirements as well as address concerns 
such as local market conditions, building codes and accessibility 
requirements, historic preservation, floodplain management, other 
environmental requirements, displacement and relocation, zoning, and 
housing costs. If you are interested in attending the workshop, make 
sure that your name, address and telephone number are on the 
appropriate HUD Office's mailing list so that you will be informed of 
the date, time and place of the workshop. Persons with disabilities 
should call the appropriate HUD Office to ensure that any necessary 
arrangements can be made to enable their attendance and participation 
in the workshop.
    If you cannot attend the workshop, call the appropriate HUD Office 
if you have any questions concerning the submission of applications to 
that particular office and to request any materials distributed at the 
workshop.
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of the application. It is strongly recommended that 
potential applicants, especially those who may be applying for section 
202 funding for the first time, tune in to this broadcast, if at all 
possible. Copies of the broadcast tapes are also available from the 
SuperNOFA Information Center. For more information about the date and 
time of the broadcast, you should consult the HUD Web site at http://www.hud.gov/grants.

II. Amount Allocated

    For FY 2003, $473,750,170 is available for capital advances for the 
supportive housing for the elderly program. The Consolidated 
Appropriations Resolution, 2003 ( Pub. L. 108-7), approved February 20, 
2003, (FY 2003 Consolidated Appropriations) provides $683,286,000 for 
capital advances, including amendments to capital advance contracts, 
for supportive housing for the elderly as authorized by section 202 of 
the Housing Act of 1959 (12 U.S.C. 1701q), as amended by section 801 of 
the Cranston-Gonzalez National Affordable Housing Act (Pub. L. 101-625, 
approved November 28, 1990), and for project rental assistance, and 
amendments to contracts for project rental assistance, and renewal of 
expiring contracts for such assistance for up to a one-year term, for 
supportive housing for the elderly under section 202(c)(2) of the 
Housing Act of 1959.
    Additionally, the FY 2003 Consolidated Appropriations provide $25 
million for predevelopment grants to private nonprofit organizations 
and consumer cooperatives in connection with the development of housing 
under the section 202 program. The announcement of the availability of 
these funds will be addressed in a separate NOFA to be issued in the 
future.
    In accordance with the waiver authority provided in the FY 2003 
Consolidated Appropriations, the Secretary is waiving the following 
statutory and regulatory provision: the term of the project rental 
assistance contract is reduced from 20 years to 5 years. HUD 
anticipates that at the end of the contract terms, renewals will be 
approved subject to the availability of

[[Page 21926]]

funds. In addition to this provision, HUD will reserve project rental 
assistance contract funds based on 75 percent rather than on 100 
percent of the current operating cost standards for approved units in 
order to take into account the average tenant contribution toward rent.
    The allocation formula used for section 202 reflects the ``relevant 
characteristics of prospective program participants,'' as specified in 
24 CFR 791.402(a). The FY 2003 formula consists of two data elements 
from the 2000 Census: (1) Number of elderly renter households of all 
sizes (householder age 65 and older) and (2) number of elderly 
households (householder age 60 and older) living alone with incomes 
below the poverty level.
    Under section 202, 85 percent of the total capital advance amount 
is allocated to metropolitan areas and 15 percent to nonmetropolitan 
areas. In addition, each HUD Office jurisdiction receives sufficient 
capital advance funds for a minimum of 20 units in metropolitan areas 
and 5 units in nonmetropolitan areas. The total amount of capital 
advance funds to support these minimum set-asides are subtracted from 
the respective (metropolitan or nonmetropolitan) total capital advance 
amounts available. The remainder is fair shared to each HUD Office 
jurisdiction whose fair share exceeds the minimum set-aside based on 
the allocation formula fair share factors described below.

    Note: The allocations for metropolitan and nonmetropolitan 
portions of the Multifamily Hub or Program Center jurisdictions 
reflect the most current definitions of metropolitan and 
nonmetropolitan areas, as defined by the Office of Management and 
Budget.

    A fair share factor is developed for each metropolitan and 
nonmetropolitan portion of each local HUD Office jurisdiction by 
dividing the number of elderly renter households in the respective 
metropolitan and nonmetropolitan portion of the jurisdiction by the 
total number of elderly rental households in the metropolitan and 
nonmetropolitan portions of the United States. The resulting percentage 
for each local HUD Office jurisdiction is then adjusted to reflect the 
relative cost of providing housing among the HUD Office jurisdictions. 
The adjusted needs percentage for the applicable metropolitan or 
nonmetropolitan portion of each jurisdiction is then multiplied by the 
respective total remaining capital advance funds available nationwide. 
Based on the allocation formula, HUD has allocated the available 
capital advance funds as shown on the following chart:

[[Page 21927]]

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[[Page 21931]]



III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. HUD provides capital advances and 
contracts for project rental assistance in accordance with 24 CFR part 
891. Capital advances may be used for the construction or 
rehabilitation of a structure, or acquisition of a structure with or 
without rehabilitation (including structures from the Federal Deposit 
Insurance Corporation (FDIC). Capital advance funds bear no interest 
and are based on development cost limits published in Section IV(D). 
Repayment of the capital advance is not required as long as the housing 
remains available for occupancy by very low-income elderly persons for 
at least 40 years.
    Project rental assistance contract (PRAC) funds are used to cover 
the difference between the tenants' contributions toward rent (30 
percent of adjusted income) and the HUD-approved expense to operate the 
project. PRAC funds may also be used to provide supportive services and 
to hire a service coordinator in those projects serving frail elderly 
residents. The supportive services must be appropriate to the category 
or categories of frail elderly residents to be served.
    (B) Eligible Applicants. Private nonprofit organizations and 
nonprofit consumer cooperatives who meet the threshold requirements 
contained in section V of the General Section of the SuperNOFA are the 
only eligible applicants under this section 202 Program. Neither a 
public body nor an instrumentality of a public body is eligible to 
participate in the program. See section IV(B) regarding limits on the 
total number of units and projects that an applicant may request.
    (C) Eligible Activities. Section 202 capital advance funds must be 
used to finance the development of housing through new construction, 
rehabilitation, or acquisition of housing with or without 
rehabilitation. Capital advance funds may also be used in combination 
with other non-Section 202 funding sources to develop additional units 
for a mixed-finance project. Project rental assistance funds are 
provided to cover the difference between the HUD-approved operating 
costs and the amount the residents pay (each resident pays 30 percent 
of adjusted income) as well as to provide supportive services to frail 
elderly residents.

    Note: For purposes of approving section 202 capital advances, 
HUD will consider proposals involving mixed-financing for additional 
units. However, you must obtain funds to assist the additional units 
with other than PRAC funds. HUD will not provide PRAC funds for non-
section 202 units.

    (D) Ineligible Activities. Section 202 funds may not be used for 
nursing homes, infirmaries, medical facilities, mobile home projects, 
community centers, headquarters for organizations for the elderly, 
nonhousekeeping accommodations, or refinancing of sponsor-owned 
facilities without rehabilitation.

    Note: You may propose to rehabilitate an existing currently 
owned or leased structure that may or may not already serve elderly 
persons, except that the refinancing of any Federally funded or 
assisted project or project insured or guaranteed by a Federal 
agency is not permissible under this section 202 NOFA. HUD does not 
consider it appropriate to utilize scarce program resources to 
refinance projects that have already received some form of 
assistance under a Federal program. (For example, section 202 or 
section 202/8 direct loan projects cannot be refinanced with capital 
advances and project rental assistance.)

IV. Program Requirements

    By signing Form HUD-92015-CA, Application for section 202 Capital 
Advance, you are certifying that you will comply with all program 
requirements listed in the General Section of this SuperNOFA as well as 
the following requirements:
    (A) Statutory and Regulatory Requirements. In addition to the 
statutory, regulatory, threshold and public policy requirements listed 
in section V of the General Section of this SuperNOFA, you must comply 
with all statutory and regulatory requirements listed in sections III, 
IV and IX of this program section of the SuperNOFA.
    (B) Application Unit/Project Limits. A Sponsor or Co-sponsor may 
not apply for more than 200 units of housing for the elderly in a 
single Hub or more than 10 percent of the total units allocated to all 
HUD Offices. Also, no single application may propose more than the 
number of units allocated to a HUD Office or 125 units, whichever is 
less. Reservations for projects will not be approved for fewer than 5 
units. If the proposed project will be a scattered-site development, 
the 5-unit minimum requirement will apply to each site. Affiliated 
entities that submit separate applications are considered to be a 
single entity for the purpose of these limits.
    (C) HUD/RHS Agreement. HUD and the Rural Housing Service (RHS) have 
an agreement to coordinate the administration of the agencies' 
respective rental assistance programs. As a result, HUD is required to 
notify RHS of applications for housing assistance it receives. This 
notification gives RHS the opportunity to comment if it has concerns 
about the demand for additional assisted housing and possible harm to 
existing projects in the same housing market area. HUD will consider 
RHS' comments in its review and application selection process.
    (D) Development Cost Limits. (1) The following development cost 
limits, adjusted by locality as described in section IV(D)(2) of this 
program section of the SuperNOFA, below, will be used to determine the 
capital advance amount to be reserved for projects for the elderly:
    (a) The total development cost of the property or project 
attributable to dwelling use (less the incremental development cost and 
the capitalized operating costs associated with any excess amenities 
and design features you must pay for) may not exceed:
Nonelevator Structures
    $41,238 per family unit without a bedroom;
    $47,548 per family unit with one bedroom;
    $57,344 per family unit with two bedrooms;
For Elevator Structures
    $43,398 per family unit without a bedroom;
    $49,748 per family unit with one bedroom;
    $60,493 per family unit with two bedrooms.
    (b) These cost limits reflect those costs reasonable and necessary 
to develop a project of modest design that complies with HUD minimum 
property standards; the accessibility requirements of Sec.  891.120(b); 
and the project design and cost standards of Sec.  891.120 and Sec.  
891.210.
    (2) Increased development cost limits.
    (a) HUD may increase the development cost limits set forth in 
Section IV(D)(1) of this program section of the SuperNOFA, above, by up 
to 140 percent in any geographic area where the cost levels require, 
and may increase the development cost limits by up to 160 percent on a 
project-by-project basis. This increase may include covering additional 
costs to make dwelling units accessible through rehabilitation.
    (b) If HUD finds that high construction costs in Alaska, Guam, the 
Virgin Islands, or Hawaii make it infeasible to construct dwellings, 
without the sacrifice of sound standards of construction, design, and 
livability, within the development cost limits provided in Section 
IV(D)(1) of this

[[Page 21932]]

program section of the SuperNOFA, above, the amount of the capital 
advances may be increased to compensate for such costs. The increase 
may not exceed the limits established under this section (including any 
high cost area adjustment) by more than 50 percent.
    (E) Minimum Capital Investment. Selected nonprofit organizations 
must provide a minimum capital investment of one-half of one percent of 
the HUD-approved capital advance amount, not to exceed $10,000 in 
accordance with Sec.  891.145, with the following exception. If you, as 
Sponsor or Co-Sponsor, have one or more Section 202 or one or more 
Section 811 project(s) under reservation, construction, or management 
in two or more different HUD geographical regions (Hubs), the minimum 
capital investment shall be one half of one percent of the HUD-approved 
capital advance amount, not to exceed $25,000.
    (F) Accessibility. Your project must meet accessibility 
requirements published at 24 CFR 891.120, 24 CFR 891.210, and Section 
504 of the Rehabilitation Act of 1973, and, if new construction, the 
design and construction requirements of the Fair Housing Act and HUD's 
implementing regulations at 24 CFR part 100. In addition, 24 CFR 
8.4(b)(5) prohibits the selection of a site or location which has the 
purpose or effect of excluding persons with disabilities from the 
Federally assisted program or activity. HUD will award higher points to 
applications that add accessible design features beyond those required 
under civil rights laws and regulations. (See section II of the General 
Section of this SuperNOFA.)
    (G) Conducting Business in Accordance with HUD Core Values and 
Ethical Standards. Section 202 Sponsors are not subject to the 
requirements of 24 CFR parts 84 and 85 as outlined in the General 
Section of this SuperNOFA. However, Sponsors are still subject to the 
core values and ethical standards as they relate to the conflict of 
interest provisions in 24 CFR 891.130. To ensure compliance with the 
program's conflict of interest provisions, you are required to sign a 
Conflict of Interest Resolution and include it in your Section 202 
application. Further, if awarded a section 202 fund reservation, the 
officers, directors, board members, trustees, stockholders and 
authorized agents of the section 202 Sponsor and Owner entities will be 
required to submit to HUD individual certifications regarding 
compliance with HUD's conflict of interest requirements.
    (H) Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses. Although the 
section 202 program is not subject to the provisions of 24 CFR 85.36(e) 
as described in the corresponding paragraph in the General Section of 
the SuperNOFA, you are required to comply with Executive Order 12432, 
Minority Business Enterprise Development and Executive Order 11625, 
Prescribing Additional Arrangements for Developing and Coordinating a 
National Program for Minority Business Enterprise as they relate to the 
encouragement of HUD grantees to utilize minority business enterprises.
    (I) Fair Housing Requirements. See Section V of the General Section 
of this SuperNOFA.
    (J) Economic Opportunities for Low and Very Low-Income Persons 
(Section 3). See section V of the General Section of this SuperNOFA.
    (K) Design and Cost Standards. You must comply with HUD's Section 
202 design and cost standards (24 CFR 891.120 and 891.210), the Uniform 
Federal Accessibility Standards (24 CFR 40.7), Section 504 of the 
Rehabilitation Act of 1973 and HUD's implementing regulations at 24 CFR 
part 8, and for covered multifamily dwellings designed and constructed 
for first occupancy after March 13, 1991, the design and construction 
requirements of the Fair Housing Act and HUD's implementing regulations 
at 24 CFR part 100, and, where applicable, the Americans with 
Disabilities Act of 1990.
    (L) Acquisition and Relocation. You must comply with the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970, as amended (49 CFR part 24, and 24 CFR 891.155(e)) (URA) which 
covers the acquisition of sites, with or without, existing structures 
and with 24 CFR 8.4(b)(5) of the Section 504 regulations which 
prohibits discrimination based on disability in determining the site or 
location of a Federally-assisted facility. However, you are exempt from 
complying with the site acquisition requirements of the URA if you do 
not have the power of eminent domain and prior to entering into a 
contract of sale, option to purchase or any other method of obtaining 
site control, you inform the seller of the land (1) that you do not 
have the power of eminent domain and, therefore, you will not acquire 
the property if negotiations fail to result in an amicable agreement, 
and (2) of the estimate of the fair market value of the property. An 
appraisal is not required to meet this requirement, however, your files 
must include an explanation (with reasonable evidence) of the basis for 
the estimate.
    (M) Formation of Owner Corporation. You must form an Owner (in 
accordance with 24 CFR 891.205) after issuance of the capital advance, 
must cause the Owner to file a request for determination of eligibility 
and a request for capital advance, and must provide sufficient 
resources to the Owner to ensure the development and long-term 
operation of the project, including capitalizing the Owner at firm 
commitment processing in an amount sufficient to meet its obligations 
in connection with the project.
    (N) Supportive Services. You must not require residents to accept 
any supportive services as a condition of occupancy.
    (O) Davis-Bacon. You must comply with the Davis-Bacon requirements 
and the Contract Work Hours and Safety Standards Act.
    (P) Flood Disaster Protection Act of 1973 and Coastal Barrier 
Resources Act. You must comply with the requirements under the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4001-4128) and the Coastal 
Barrier Resources Act (16 U.S.C. 3601).
    (Q) National Environmental Policy Act. You must comply with the 
National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321) and 
applicable related environmental authorities at 24 CFR 50.4, HUD's 
programmatic implementing regulations at 24 CFR part 50 and 24 CFR 
891.155(b), especially but not limited to the provision of information 
to HUD at 24 CFR 50.31(b) and you must comply with any environmental 
``conditions and safeguards'' at 24 CFR 50.3(c).
    (R) Sites. (1) Site Control. You must provide evidence of site 
control as described in this program section of the SuperNOFA and 
Exhibit 4(d) of Appendix A of the section 811 program section of this 
SuperNOFA.
    (2) Phase I Environmental Site Assessment (ESA). You must submit a 
Phase I ESA in accordance with the American Society for Testing and 
Material (ASTM) Standards E 1527-97, as amended, completed or updated 
no earlier than six months prior to the application deadline date. 
Therefore, it is important that you start the Phase I ESA process as 
soon after publication of this SuperNOFA as possible. Documents 
providing guidance in choosing an environmentally safe site, entitled 
``Choosing an Environmentally Safe Site'' and the ``Supplemental 
Guidance, Environmental Information'', are available on HUD's Web site 
at http://www.HUD.gov.
    (a) For a project that involves demolition and/or rehabilitation of 
structures built before 1978, the Phase I

[[Page 21933]]

ESA must include the following: (i) An asbestos report that identifies 
the location and condition of any asbestos and (ii) a certification 
that any asbestos identified in the asbestos report that is in friable 
condition will be abated, that any non-friable asbestos that has been 
identified in the asbestos report and that will be affected by the 
demolition/rehabilitation will be abated, and that any asbestos to be 
abated have been included within the project costs.
    (b) For a project that does not involve demolition and/or 
rehabilitation of structures built before 1978, the Phase I ESA must 
include a certification to the same.
    If the Phase I ESA indicates the possible presence of contamination 
and/or hazards, you must decide whether to continue with this site or 
choose another site. Should you choose another site, the same Phase I 
ESA process identified above must be followed for the new site.

    Note: If the property is to be acquired from the FDIC, include a 
copy of the FDIC prepared Transaction Screen Checklist or Phase I 
ESA, and applicable documentation, per the FDIC Environmental 
Guidelines.

    (3) Phase II ESA. If you choose to continue with the original site 
on which the Phase I ESA indicated contamination or hazards, you must 
undertake a detailed Phase II ESA by an appropriate professional. If 
the Phase II ESA reveals site contamination, the extent of the 
contamination and a plan for clean-up of the site must be submitted to 
the local HUD Office.
    The plan for clean-up must include a contract for remediation of 
the problem(s) and an approval letter from the applicable Federal, 
State, and/or local agency with jurisdiction over the site.
    In order for the application to be considered for review under this 
FY 2003 funding competition, you must submit this information to the 
local HUD Office on or before July 14, 2003.

    Note: This could be an expensive undertaking. You must pay for 
the cost of any clean-up and/or remediation.

    (S) Delinquent Federal Debt. See Section V of the General Section 
of this SuperNOFA.
    (T). Commercial Facilities. A commercial facility for the benefit 
of the residents may be located and operated in the section 202 
project. However, the commercial facility cannot be funded with the use 
of section 202 capital advance or PRAC funds. The maximum amount of 
space permitted for a commercial facility and other community space 
cannot exceed 10 percent of the total project cost. An exception to 
this 10 percent limitation is if the project involves acquisition or 
rehabilitation and the additional space was incorporated in the 
existing structure at the time the proposal was submitted to HUD. 
Commercial facilities are considered public accommodations under Title 
III of the Americans with Disabilities Act of 1990 (ADA), and thus must 
comply with all the accessibility requirements of the ADA.
    (U) False Statements. See section V of the General Section of this 
SuperNOFA.
    (V) Expiration of Section 202 Funds. The FY 2003 Consolidated 
Appropriations require HUD to obligate all Section 202 funds 
appropriated for FY 2003 by September 30, 2006. Under 31 U.S.C. Section 
1551, no funds can be disbursed from the account after September 30, 
2011. Under Section 202, obligation of funds occurs for both capital 
advances and project rental assistance upon fund reservation and 
acceptance. If all funds are not disbursed by HUD and expended by the 
project Owner by September 30, 2011, the funds, even though obligated, 
will expire and no further disbursements can be made from this account. 
In submitting an application you need to carefully consider whether 
your proposed project can be completed through final capital advance 
closing no later than September 30, 2011. Furthermore, all unexpended 
balances, including any remaining balance on PRAC contracts, will be 
cancelled as of October 1, 2011. Amounts needed to maintain PRAC 
payments for any remaining term on the affected contracts beyond that 
date will have to be funded from other current appropriations.

V. Application Selection Process

    (A) Review for Curable Deficiencies. You should ensure that your 
application is complete and that you have an original and four copies 
before submitting it to the appropriate HUD Office. HUD will screen all 
applications received by the deadline for curable deficiencies. A 
curable deficiency is a missing Exhibit or portion of an Exhibit that 
will not affect the rating of the application. The following is a list 
of the deficiencies that will be considered curable in a Section 202 
application:

Exhibits (See Appendix A of the Section 811 Program Section of the 
SuperNOFA)

(1) Form 92015-CA (Application Form)*
(2) (a) Articles of Incorporation*
    (b) By-laws*
    (c) IRS tax exemption ruling*
(4) (c)(ii) Energy efficiency
    (d)(i) Evidence of site control
    (d)(ii) Evidence site is free of limitations, restrictions or 
reverters
    (d)(vi) Phase I Environmental Site Assessment
    (d)(vii) Letter from State Historic Preservation Officer (SHPO)
(7) Relocation
(8) (a) Form HUD 424, Application for Federal Assistance
    (b) Standard Form LLL, Disclosure of Lobbying Activities, if 
applicable
    (c) Form HUD-424B, Applicant Assurances and Certifications
    (d) Form HUD 2880, Applicant/Recipient Disclosure/Update Report
    (e) Form HUD-2991, Certification of Consistency with Consolidated 
Plan
    (f) Form-HUD-92041, Sponsor's Conflict of Interest Resolution
    (g) Form HUD-92042, Sponsor's Resolution for Commitment to Project*
    (i) Form HUD-2530, Previous Participation Certification.

    The HUD Office will notify you in writing if your application is 
missing any of the above exhibits or portions of exhibits and you will 
be given 14 days from the date of the HUD notification to submit the 
information required to cure the noted deficiencies. The items 
identified by an asterisk (*) must be dated on or before the 
application deadline date.
    (B) Rating. HUD will review and rate your application in accordance 
with the Application Selection Process in the General Section of this 
SuperNOFA with the following exception. HUD will not reject your 
application based on technical review without notifying you of that 
rejection with all the reasons for rejection, and providing you an 
opportunity to appeal. You will have 14 calendar days from the date of 
HUD's written notice to appeal a technical rejection to the HUD Office.
    Your application will be either rated or technically rejected at 
the end of technical review. If your application meets all program 
eligibility requirements after completion of technical review, 
including HUD approval of you, the section 202 applicant, based on 
HUD's evaluation of the applicant's previous participation activities 
as reported on Form HUD-2530, Previous Participation Certification, it 
will be rated according to the rating factors in Section V(D) below. 
The HUD Office will make a determination on any appeals before making 
its selection recommendations.
    If an Exhibit or portion of an Exhibit listed above as curable is 
not discovered as a missing item until technical processing, HUD will 
provide you with 14 calendar days in which to cure the deficiency.

[[Page 21934]]

    (C) Ranking and Selection Procedures. Applications submitted in 
response to the advertised metropolitan allocations or nonmetropolitan 
allocations that have a total base score (without the addition of RC/
EC/EZ bonus points) of 75 points or more and meet all of the applicable 
threshold requirements of section V(B) of the General Section of the 
SuperNOFA will be eligible for selection, and HUD will place them in 
rank order per metropolitan or nonmetropolitan allocation. These 
applications, after adding any bonus points for RC/EC/EZ, will be 
selected based on rank order, up to and including the last application 
that can be funded out of each HUD Program Center Office's metropolitan 
or nonmetropolitan allocation. HUD Program Center Offices will not skip 
over any applications in order to select one based on the funds 
remaining. After making the initial selections in each allocation area, 
however, HUD Program Center Offices may use any residual funds to 
select the next rank-ordered application by reducing the number of 
units by no more than 10 percent, rounded to the nearest whole number, 
provided the reduction will not render the project infeasible. For this 
purpose, however, HUD will not reduce the number of units in projects 
of five units or less.
    Once this process has been completed, HUD Program Center Offices 
may combine their unused metropolitan and nonmetropolitan funds in 
order to select the next ranked application in either category, using 
the unit reduction policy described above, if necessary.
    After the HUD Program Center Offices have funded all possible 
projects based on the process above, combined metropolitan and 
nonmetropolitan residual funds from all HUD Program Center Offices 
within each Multifamily Hub will be combined. First, these funds will 
be used to restore units to projects reduced by HUD Program Center 
Offices based on the above instructions. Second, additional 
applications within each Multifamily Hub will be selected in rank order 
with only one application selected per HUD Program Center Office. More 
than one application may be selected per HUD Program Center Office if 
there are no approvable applications in other HUD Program Center 
Offices within the Multifamily Hub. This process will continue until 
there are no more approvable applications within the Multifamily Hub 
that can be selected with the remaining funds. Applications may not be 
skipped over to select one based on funds remaining. However, the HUD 
Multifamily Hub may use any remaining residual funds to select the next 
rank-ordered application by reducing the number of units by no more 
than 10 percent rounded to the nearest whole number, provided the 
reduction will not render the project infeasible or result in the 
project being less than five units.
    Funds remaining after the Multifamily Hub selection process is 
completed will be returned to Headquarters. HUD Headquarters will use 
these residual funds first to restore units to projects reduced by HUD 
Program Center or Multifamily Hub Offices as a result of the 
instructions for using their residual funds. Second, HUD Headquarters 
will use these funds for selecting applications based on HUD Program 
Center Offices' rankings, beginning with the highest rated application 
nationwide. However, after restoring units to projects where necessary, 
priority will be given to those applications for projects in non-
metropolitan areas, if necessary to meet the statutory requirement 
pertaining to section 202 funding in nonmetropolitan areas. Only one 
application will be selected per HUD Program Center Office from the 
national residual amount. If there are no approvable applications in 
other HUD Program Center Offices, the process will begin again with the 
selection of the next highest rated application nationwide. This 
process will continue until all approvable applications are selected 
using the available remaining funds. In order to use as much of the 
available remaining funds as possible, HUD Headquarters may skip over a 
higher-rated application.
    (D) Factors for Award Used To Evaluate and Rate Applications. HUD 
will rate applications that successfully complete technical processing 
using the Rating Factors set forth below and in accordance with the 
application submission requirements identified in Appendix A of the 
section 811 program section of the SuperNOFA. The maximum number of 
points an application may receive under this program is 102. This 
includes two RC/EZ/EC bonus points, as described in the General Section 
of the SuperNOFA.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (25 Points)

    This factor addresses the extent to which you have the 
organizational resources to successfully implement the proposed 
activities in a timely manner. Submit information responding to this 
factor in accordance with Application Submission Requirements in 
Exhibits 2, 3(a), 3(b), 3(e) and 6 of Appendix A of the Section 811 
program section of the SuperNOFA.
    In rating this factor, HUD will consider the extent to which your 
application demonstrates your ability to develop and operate the 
proposed housing on a long-term basis, considering the following:
    (a) (15 points). The scope, extent, and quality of your experience 
in providing housing or related services to those proposed to be served 
by the project and the scope of the proposed project (i.e., number of 
units, services, relocation costs, development, and operation) in 
relationship to your demonstrated development and management capacity 
as well as your financial management capability;
    (b)(i) (5 points). The scope, extent, and quality of your 
experience in providing housing or related services to minority persons 
or families.
    (b)(ii) (5 points). The scope, extent, and quality of your ties to 
the community at large and to the minority and elderly communities in 
particular.
    For the purpose of this program section of the SuperNOFA, the term 
``minority'' encompasses the basic racial and ethnic categories for 
Federal statistics and administrative reporting, as defined in the 
General Section of the SuperNOFA in the section entitled ``Race and 
Ethnicity.''
    To earn the maximum number of points under this subcriterion, you 
must describe both your relationships over time with the minority 
community and significant previous experience in providing housing and/
or supportive services to minorities generally and to minority elderly 
in particular. For the purpose of this competition, ``significant 
previous experience'' means that the previous housing assistance or 
related services to minorities, i.e., the percentage of minorities 
being provided housing or related services in your current 
developments, was equal to or greater than the percentage of minorities 
in the jurisdiction where the previous housing or services occurred.
    (c) (-2 to -4 points). HUD will deduct (except if the delay was 
beyond your control) 2 points if a fund reservation you received under 
either the section 202 Program of Supportive Housing for the Elderly or 
the section 811 Program of Supportive Housing for Persons with 
Disabilities has been extended beyond 24 months, 3 points if beyond 36 
months, and 4 points if beyond 48 months. Examples of such delays 
include, but are not limited to, initial closing delays that are: (1) 
Directly attributable to HUD, (2) directly attributable to third party 
opposition, including litigation, and (3) due to a

[[Page 21935]]

disaster, as declared by the President of the United States.
    (d) (-1 point). HUD will deduct 1 point if amendment money was 
required as a result of the delay (except if the delay was beyond your 
control).

Rating Factor 2: Need/Extent of the Problem (15 Points)

    This factor addresses the extent to which there is a need for 
funding the proposed activities to address a documented problem in the 
target area. Submit information responding to this factor in accordance 
with Application Submission Requirements in Exhibits 4(a) and 4(b) of 
Appendix A of the section 811 program section of the SuperNOFA. HUD 
will take into consideration the following in evaluating this factor:
    The extent of the need for the project in the area based on a 
determination by the HUD Office. In making this determination, HUD will 
consider your evidence of need in the area, as well as other economic, 
demographic, and housing market data available to the HUD Office. The 
data should include a general assessment of the current conditions in 
the market for the type of housing proposed, an estimate of the demand 
for additional housing of the type proposed in the applicable housing 
market area; as well as, information on the numbers and types of 
existing comparable Federally assisted housing units for the elderly 
(HUD and RHS), current occupancy in such housing and recent market 
experience, comparable assisted housing for the elderly under 
construction or for which fund reservations have been issued, and, in 
accordance with an agreement between HUD and RHS, comments from RHS on 
the demand for additional comparable subsidized housing and the 
possible harm to existing projects in the same housing market areas. 
The Department will also review more favorably those applications which 
establish a connection between the proposed project and the community's 
Analysis of Impediments to Fair Housing Choice (AI) or other planning 
document that analyzes fair housing issues and is prepared by a local 
planning or similar organization. You must show how your proposed 
project will address an impediment to fair housing choice described in 
the AI or meet a need identified in the other type of planning 
document.
    In evaluating this Factor, HUD will rate your application as 
follows:
    (a) (12 points). The extent of the need for the project in the area 
based on a determination by the HUD Office, taking into consideration 
the Sponsor's evidence of need in the area, as well as other economic, 
demographic and housing market data available to HUD.
    (b) (3 points). The extent that a connection has been established 
between the project and the community's Consolidated Plan, Analysis of 
Impediments to Fair Housing Choice (AI) or other planning document that 
analyzes fair housing issues and is prepared by a local planning or 
similar organization.

Rating Factor 3: Soundness of Approach (45 Points)

    This factor addresses the quality and effectiveness of your 
proposal and the extent to which you involve elderly persons, including 
elderly minority persons, in the development and operation of the 
project. There must be a clear relationship between your proposed 
design, proposed activities, the community's needs and purposes of the 
program funding for your application to receive points for this factor. 
Submit information responding to this factor in accordance with 
Application Submission Requirements in Exhibits 3(f), 4(c), 4(d) and 5 
of Appendix A of the section 811 program section of the SuperNOFA. In 
evaluating this factor, HUD will consider the following:
    (a)(i) (15 points). The proximity or accessibility of the site to 
shopping, medical facilities, transportation, places of worship, 
recreational facilities, places of employment, and other necessary 
services to the intended occupants; adequacy of utilities and streets; 
freedom of the site from adverse environmental conditions; compliance 
with site and neighborhood standards (24 CFR 891.125(a), (d) and (e));
    (a)(ii) (-1 point). The site(s) is not already permissively zoned 
for the intended use.
    (b) (10 points). The suitability of the site from the standpoints 
of promoting a greater choice of housing opportunities for minority 
elderly persons/families, and affirmatively furthering fair housing. In 
reviewing this criterion, HUD will assess whether the site meets the 
site and neighborhood standards at 24 CFR 891.125(b) and (c) by 
examining relevant data in your application or in the HUD Office. Where 
appropriate, HUD may visit the site.
    (i) The site will be deemed acceptable if it increases housing 
choice and opportunity by:
    --Expanding housing opportunities in non-minority neighborhoods (if 
located in such a neighborhood). The term ``nonminority area'' is 
defined as one in which the minority population is lower than 10 
percent; or
    --Contributing to the revitalization of and reinvestment in 
minority neighborhoods, including improvement of the level, quality and 
affordability of services furnished to minority elderly. You should 
refer to the Site and Neighborhood Standards provisions of the 
regulations governing the section 202 Supportive Housing for the 
Elderly program (24 CFR 891.125(b) and (c)) when considering sites for 
your project.

    (ii) For the purpose of this competition, the term ``minority 
neighborhood (area of minority concentration)'' is defined as one where 
any one of the following statistical conditions exists:

    --The percentage of persons of a particular racial or ethnic 
minority is at least 20 points higher than the minority's or 
combination of minorities' percentage in the housing market as a whole; 
or,
    --The neighborhood's total percentage of minority persons is at 
least 20 points higher than the total percentage of minorities for the 
housing market as a whole; or,
    --In the case of a metropolitan area, the neighborhood's total 
percentage of minority persons exceeds 50 percent of its population.


    (c) (4 points). The extent to which your proposed design will meet 
the special physical needs of elderly persons;
    (d) (3 points). The extent to which the proposed size and unit mix 
of the housing will enable you to manage and operate the housing 
efficiently and ensure that the provision of supportive services will 
be accomplished in an economical fashion;
    (e) (3 points). The extent to which the proposed design of the 
housing will accommodate the provision of supportive services that are 
expected to be needed, initially and over the useful life of the 
housing, by the category or categories of elderly persons the housing 
is intended to serve;
    (f) (3 points). The extent to which the proposed supportive 
services meet the identified needs of the anticipated residents; and
    (g) (3 points). The extent to which you demonstrate that the 
identified supportive services will be provided on a consistent, long-
term basis.
    (h) (1 point). The proposed design incorporates visitability 
standards and universal design in the construction or rehabilitation of 
the project.
    (i) (3 points) Your involvement of elderly persons, particularly 
minority elderly persons, in the development of the application and 
your intent to involve elderly persons, particularly

[[Page 21936]]

minority elderly persons, in the development and operation of the 
project.

Rating Factor 4: Leveraging Resources (5 Points)

    This factor addresses your ability to secure other community 
resources which can be combined with HUD's program resources to achieve 
program purposes. Submit information responding to this factor in 
accordance with Application Submission Requirements in Exhibits 3(c) 
and 3(d) of Appendix A of the section 811 program section of the 
SuperNOFA.
    (a) (2 points). The extent of local government support (including 
financial assistance, donation of land, provision of services, etc.) 
for the project; and
    (b) (3 points). The extent of your activities in the community, 
including previous experience in serving the area where the project is 
to be located, and your demonstrated ability to enlist volunteers and 
raise local funds.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    This factor reflects HUD's goal to embrace high standards of 
ethics, management and accountability and, as such, emphasizes HUD's 
commitment to ensuring that you keep the promises made in your 
application. This factor requires that you clearly identify the 
benefits or outcomes of your project and develop an evaluation plan to 
measure performance, which includes what you are going to measure, how 
you are going to measure it, and the steps you will have in place to 
make adjustments to your project development timeline should you not be 
able to achieve any of the major milestones. This Factor addresses the 
extent to which your project will implement practical solutions that 
result in residents achieving independent living, educational 
opportunities, and improved living environments. Finally, this factor 
addresses the extent to which the long-term viability of your project 
will be sustained for the duration of the 40-year capital advance 
period. Submit information responding to this factor in accordance with 
Application Submission Requirements in Exhibits 3(g), 3(h), and 3(i) of 
Appendix A of the section 811 program section of the SuperNOFA.
    (a) (5 points). The extent to which your project development 
timeline is indicative of your full understanding of the development 
process and will, therefore, result in the timely development of your 
project.
    (b) (2 points). The extent to which your project will implement 
practical solutions that will result in assisting residents in 
achieving independent living, educational opportunities, and improved 
living environments; and
    (c) (3 points). The extent to which you demonstrated that your 
project will remain viable as housing with the availability of 
supportive services for very low-income elderly persons for the 40-year 
capital advance period.

Bonus Points

    (2 bonus points) Location of proposed site in an RC/EZ/EC area, as 
described in the General Section of this SuperNOFA. Submit the 
information responding to the bonus points in accordance with the 
Application Submission Requirements in Exhibit 8(h) of Appendix A of 
the section 811 program section of the SuperNOFA.
    (E) Applicant Debriefing. You may request a debriefing on your 
application in accordance with the General Section of this SuperNOFA, 
with the exception that the request must be made to the Director of 
Multifamily Housing in the HUD Field Office to which you sent your 
application.

VI. Application Submission Requirements

    The application submission requirements are contained in Appendix A 
of the section 811 program section of this SuperNOFA. Your application 
must include all of the information, materials, forms, and exhibits 
listed in Appendix A of the section 811 program section of the 
SuperNOFA (unless you were selected for a section 202 fund reservation 
within the last three funding cycles). If you qualify for this 
exception, you are not required to submit the information described in 
Exhibits 2(a), (b), and (c) of Appendix A of the section 811 program 
section of the SuperNOFA, which are the articles of incorporation, (or 
other organizational documents), by-laws, and the IRS tax exemption, 
respectively. If there has been a change in any of these documents 
since your previous HUD approval, you must submit the updated 
information in your application. The HUD Office will verify your 
indication of previous HUD approval by checking the project number and 
approval status with the appropriate HUD Office based on the 
information submitted.
    In addition to this relief of paperwork burden in preparing 
applications, you will be able to submit information and exhibits you 
have previously prepared for prior applications under section 202, 
section 811, or other funding programs. Examples of exhibits that may 
be readily adapted or amended to decrease the burden of application 
preparation include, among others, those on previous participation in 
the section 202 or section 811 Programs, your experience in the 
provision of housing and services, supportive services plans, community 
ties, and experience serving minorities.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Formation of Owner Corporation for Development of Section 202 
Projects and for Section 202 Projects Involving Mixed-Financing

    Applicant eligibility for purposes of applying for a section 202 
fund reservation under this NOFA has not changed; i.e., all section 202 
Sponsors and Co-Sponsors must be private nonprofit organizations and 
nonprofit consumer cooperatives. However, the Owner corporation, when 
later formed by the Sponsor, may be (1) a single-purpose private 
nonprofit organization that has tax-exempt status under section 
501(c)(3) or section 501(c)(4) of the Internal Revenue Code of 1986, 
(2) nonprofit consumer cooperative, OR (3) for purposes of developing a 
mixed-finance project for developing additional units over and above 
the section 202 units, a for-profit limited partnership with a 
nonprofit entity as the sole general partner.

IX. Authority

    The Section 202 Supportive Housing for the Elderly Program is 
authorized by section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), 
as amended by section 801 of the Cranston-Gonzalez National Affordable 
Housing Act (Pub. L. 101-625; approved November 28, 1990); the Housing 
and Community Development Act of 1992 (Pub. L. 102-550; approved 
October 28, 1992), the Rescissions Act (Pub. L. 104-19; enacted on July 
27, 1995); the American Homeownership and Economic Opportunity Act of 
2000 (Pub. L. 106-569; approved December 27, 2000); and the 
Consolidated Appropriations Resolution, 2003 (Pub. L. 108-7, approved 
February 20, 2003).

Appendix A

Addresses for Submitting Applications

    Please see Appendix B of the section 811 program section of this 
SuperNOFA. Submit your completed application (an original and four 
copies) to the Director of the appropriate Multifamily Hub Office or 
Multifamily Program Center as listed in Appendix B of the section 
811 program section of this SuperNOFA. See section I., Address for 
Submitting Applications, of this program

[[Page 21937]]

NOFA, for the exceptions regarding where to file your application.

Appendix B

    The forms, which are required for your section 202 program 
application are in Appendix A of the section 811 program section of 
this SuperNOFA.
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Funding Availability for the Section 811 Program of Supportive Housing 
for Persons with Disabilities (Section 811 Program)

Additional Overview

    Purpose of the Program. This program provides funding for 
supportive housing for very low-income persons with disabilities who 
are at least 18 years old. Additionally, organizations receiving funds 
must assure that an array of community support services are identified 
and available. (Please note that funding for a related program, 
Mainstream Housing Opportunities for Persons with Disabilities, is 
found elsewhere in this SuperNOFA.)
    Available Funds. Approximately $116.8 million plus any carryover 
funds available.
    Eligible Applicants. Nonprofit organizations that have a section 
501(c)(3) tax exemption from the Internal Revenue Service. (See section 
III(B) of this NOFA). (See section VIII of this NOFA for information 
regarding the formation of the Owner corporation.)
    Eligible Activities. New construction, rehabilitation, or 
acquisition (with or without rehabilitation) of housing (see section 
III(C) of this NOFA).
    Application Deadline. June 13, 2003.
    Match Requirements. None.

Additional Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section of this SuperNOFA and the 
following additional information.

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

    Application Due Date. An original and four copies of your completed 
application must be submitted to the appropriate HUD field office no 
later than the application due date.
    See the General Section, Mailing and Receipt Procedures and Proof 
of Timely Submission, of this SuperNOFA for specific procedures 
governing the submission of applications to HUD field offices.
    Address for Submitting Applications. Submit an original and four 
copies of your completed application to the Director of the appropriate 
Multifamily Hub Office or Multifamily Program Center as listed in 
Appendix B to this program section of the SuperNOFA with the following 
exceptions:
    1. Applications for projects proposed to be located within the 
jurisdiction of the Sacramento, California Office must be submitted to 
the San Francisco, California Office.
    2. Applications for projects proposed to be located within the 
jurisdiction of the Cincinnati, Ohio Office must be submitted to the 
Columbus, Ohio Office.
    3. Applications for projects proposed to be located within the 
jurisdiction of the Washington, DC Office must be submitted to the 
Baltimore, Maryland Office.
    4. Applications for projects proposed to be located within the 
jurisdiction of the Grand Rapids, Michigan Office must be submitted to 
the Detroit, Michigan Office.
    The SuperNOFA also includes a listing of the Multifamily Hubs and 
Program Centers, their addresses and telephone numbers, including TTY 
(text telephone) numbers. This information is also available from HUD's 
SuperNOFA Information Center at 1-800-HUD-8929 and from the Internet 
through the HUD Web site at http://www.hud.gov/grants. Persons with 
hearing or speech impairments may call the Center's TTY number at 1-
800-HUD-2209.
    All information required to complete and return a valid application 
is included in the General Section and this Program Section of the 
SuperNOFA, including appendices. Copies of the General Section, this 
Program Section, and appendices, including the application, are 
available and may be downloaded from HUD's Web site at http://www.hud.gov.
    For Further Information and Technical Assistance. You may contact 
the appropriate Multifamily Hub Office or Multifamily Program Center, 
or Gail Williamson at HUD Headquarters at (202) 708-3000 (this is not a 
toll-free number), or access the Internet at http://www.hud.gov/grants. 
Persons with hearing and speech impairments may access the above number 
via TTY by calling the Federal Relay Service at 1-800-877-8339 (this is 
a toll-free number).
    HUD encourages minority organizations and grassroots organizations 
(e.g., civic organizations, faith-communities and grassroots faith-
based and other community-based organizations) to participate in this 
program and strongly recommends prospective applicants attend the local 
HUD Office workshop. At the workshops, HUD will explain application 
procedures and requirements, as well as address concerns such as local 
market conditions, building codes and accessibility requirements, 
historic preservation, floodplain management, other environmental 
requirements, displacement and relocation, zoning, and housing costs. 
If you are interested in attending the workshop, make sure that your 
name, address and telephone number are on the appropriate HUD Office's 
mailing list so that you will be informed of the date, time and place 
of the workshop. Persons with disabilities should call the appropriate 
HUD Office to assure that any necessary arrangements can be made to 
enable their attendance and participation in the workshop.
    If you cannot attend the workshop, call the appropriate HUD Office 
if you have any questions regarding the submission of applications to 
that particular office and to request any materials distributed at the 
workshop.
    Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of the application. It is strongly recommended that 
potential applicants, especially those who may be applying for section 
811 funding for the first time, tune in to this broadcast, if at all 
possible. Copies of the broadcast tapes are also available from the 
SuperNOFA Information Center. For more information about the date and 
time of the broadcast, you should consult the HUD Web site at http://www.hud.gov/grants.

II. Amount Allocated

    For FY 2003, $116,810,724 for capital advances is available for the 
Section 811 Program of Supportive Housing for Persons with 
Disabilities. The Consolidated Appropriations Resolution, 2003 (Pub. L. 
108-7, approved February 20, 2003) (FY 2003 Consolidated 
Appropriations) provides $250,515,000 for capital advances, including 
amendments to capital advance contracts for supportive housing for 
persons with disabilities, as authorized by section 811 of the National 
Affordable Housing Act of 1990 (NAHA); and for project rental 
assistance for supportive housing for persons with disabilities under 
section 811 of the NAHA, including amendments to contracts for such 
assistance and renewal of expiring contracts for such assistance for up 
to a 1-year term and for tenant-based rental assistance contracts and 
renewal of expiring contracts for such assistance entered into pursuant 
to section 811 of the NAHA.
    $53.6 million (25% of the appropriated amount remaining after the 
deductions for project rental assistance (PRAC) renewals, renewals of 
expiring contracts for tenant-based assistance, and the amount to be 
transferred to the Working Capital Fund) is available for tenant-based 
rental assistance for persons with disabilities. These funds are 
administered through public housing agencies (PHAs) and nonprofit

[[Page 21942]]

organizations under the Mainstream Housing Opportunities for Persons 
with Disabilities Program that is found elsewhere in this SuperNOFA.
    In accordance with the waiver authority provided in the FY 2003 
Consolidated Appropriations, the Secretary is waiving the following 
statutory and regulatory provision: The term of the project rental 
assistance contract is reduced from 20 years to 5 years. HUD 
anticipates that at the end of the contract terms, renewals will be 
approved subject to the availability of funds. In addition to this 
provision, HUD will reserve project rental assistance contract funds 
based on 75 percent rather than on 100 percent of the current operating 
cost standards for approved units in order to take into account the 
average tenant contribution toward rent.
    The allocation formula used for section 811 reflects the ``relevant 
characteristics of prospective program participants,'' as specified in 
24 CFR 791.402(a). The FY 2003 formula consists of the following data 
element from the 2000 Census: The number of non-institutionalized 
persons age 16 to 64 with a disability. The data on disability status 
were derived from answers to a two-part question that asked about the 
existence of the following long-lasting conditions: (a) Blindness, 
deafness, or a severe vision or hearing impairment (sensory disability) 
and (b) a condition that substantially limits one or more basic 
physical activities, such as walking, climbing stairs, reaching, 
lifting, or carrying (physical disability); and a four-part question 
that asked if the individual had a physical, mental, or emotional 
condition lasting 6 months or more that made it difficult to perform 
certain activities. The four activity categories were: (a) Learning, 
remembering, or concentrating (mental disability); (b) dressing, 
bathing, or getting around inside the home (self-care disability); (c) 
going outside the home alone to shop or visit a doctor's office (going 
outside the home disability); and (d) working at a job or business 
(employment disability). Under the Section 811 Program, each HUD Office 
jurisdiction receives sufficient capital advance funds for a minimum of 
10 units. The total amount of capital advance funds to support this 
minimum set-aside is then subtracted from the total capital advance 
available. The remainder is fair shared to each HUD Office jurisdiction 
whose fair share would exceed the set-aside based on the allocation 
formula fair share factors described below.
    The fair share factors were developed by taking the count of 
disabilities in the data element for each state, or state portion, of 
each local HUD Office jurisdiction as a percent of the data element 
from the 2000 Census, described above, for the total United States. The 
resulting percentage for each local HUD Office is then adjusted to 
reflect the relative cost of providing housing among the local HUD 
Office jurisdictions. The adjusted needs percentage for each local HUD 
Office is then multiplied by the total amount of capital advance funds 
available nationwide.
    The section 811 capital advance funds have been allocated, based on 
the formula above, to 51 local HUD Offices as shown on the following 
chart:
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BILLING CODE 4210-32-C

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. HUD provides capital advances and 
contracts for project rental assistance in accordance with 24 CFR part 
891. Capital advances may be used to construct, rehabilitate, or 
acquire structures (including structures from the Federal Deposit 
Insurance Corporation (FDIC)), to be developed into a variety of 
housing options described in section III(C) below. Capital advance 
funds bear no interest and are based on development cost limits in 
section IV(E) below. Repayment of the capital advance is not required 
as long as the housing remains available for at least 40 years for 
occupancy by very low-income persons with disabilities. PRAC funds are 
used to cover the difference between the tenants' contributions toward 
rent (30 percent of adjusted income) and the HUD-approved cost to 
operate the project.
    (B) Eligible Applicants. Nonprofit organizations with a section 
501(c)(3) tax exemption from the Internal Revenue Service and who meet 
the threshold requirements contained in Section V of the General 
Section of the SuperNOFA are the only eligible applicants for this 
program. See section IV(B) regarding limits on the total number of 
units and projects that an applicant may request.
    (C) Eligible Activities. Section 811 capital advance funds must be 
used to finance the development of housing through new construction, 
rehabilitation, or acquisition with or without rehabilitation. Capital 
advance funds may also be used in combination with other non-Section 
811 funding sources to develop additional units for a mixed-finance 
project. Project rental assistance funds are provided to cover the 
difference between the HUD-approved operating costs and the amount the 
residents pay (each resident pays 30 percent of adjusted income). The 
types of housing that can be developed with Section 811 capital advance 
funds include independent living projects, dwelling units in 
multifamily housing developments, condominium and cooperative housing 
and small group homes.

    Note: For purposes of approving Section 811 capital advances, 
HUD will consider a proposal involving mixed-financing for 
additional units if you have legal control of an approvable site and 
the additional units do not cause the project, as a whole, to exceed 
the project size limits if the additional units will also house 
persons with disabilities. However, you must obtain funds to assist 
the additional units with other than PRAC funds. HUD will not 
provide PRAC funds for non-Section 811 units.

    (D) Ineligible Activities. Section 811 funds may not be used for 
any of the following:
    (1) Nursing homes, infirmaries and medical facilities;
    (2) Transitional housing;
    (3) Manufactured housing;
    (4) Intermediate care facilities;
    (5) Community centers, with or without special components for use 
by persons with disabilities;
    (6) Sheltered workshops and centers for persons with disabilities;
    (7) Headquarters for organizations for persons with disabilities; 
and
    (8) Refinancing of Sponsor-owned facilities without rehabilitation.

    Note: You may propose to rehabilitate an existing currently-
owned or leased structure that may or may not already serve persons 
with disabilities, except that the refinancing of any federally 
funded or assisted project or project insured or guaranteed by a 
federal agency is not permissible under this Section 811 NOFA. HUD 
does not consider it appropriate to utilize scarce program resources 
to refinance projects that have already received some form of 
assistance under a federal program. (For example, section 202, 
section 202/8 or section 202/PAC direct loan projects cannot be 
refinanced with capital advances and project rental assistance.)

IV. Program Requirements

    By signing Form HUD-92016-CA, Application for a Section 811 Capital 
Advance, you are certifying that you will comply with the program 
requirements listed in the General Section of this SuperNOFA as well as 
the following requirements:
    (A) Statutory and Regulatory Requirements. In addition to the 
statutory, regulatory, threshold and public policy requirements listed 
in Section V of the General Section of this SuperNOFA, you must comply 
with all statutory and regulatory requirements listed in Sections III, 
IV and IX of this program section of the SuperNOFA.
    (B) Application Unit/Project Limits. A Sponsor or Co-Sponsor may 
not apply for more than 70 units of housing or 4 projects (whichever is 
less) for persons with disabilities in a single Hub. In addition, a 
Sponsor or Co-Sponsor may not apply for more units in a given HUD 
Office than allocated for the section 811 program in that HUD Office, 
or for more than 10 percent of the total units allocated in all HUD 
Offices. If the proposed project will be an independent living project, 
your application must request at least five units, not necessarily in 
one structure. If your proposed project will be a group home, you must 
request at least two units per group home. If your proposed project 
will be a combination of an independent living project and a group 
home, your application must request at least the minimum number of 
units for each project type (i.e., 5 units for an independent living 
project and 2 units for a group home). Affiliated entities that submit 
separate applications are considered a single entity for the purpose of 
these limits.
    (C) Project Size Limits. (1) Independent living project. The 
minimum number of units that can be applied for in one application is 
five. All of the units are not required to be in one structure and they 
may be on scattered sites. The maximum number of persons with 
disabilities that can be housed in an independent living project is 14 
plus one additional one or two bedroom unit for a resident manager, if 
necessary. However, if the proposed independent living project will be 
located on the same site or on an adjacent site containing existing 
housing for persons with disabilities, the total persons with 
disabilities housed in both the existing and the proposed project 
cannot exceed 14.
    (2) If you are submitting an application for an independent living 
project with site control, you may request an exception to the above 
project size limit by providing the information required in Exhibit 
4(d)(ix) in Appendix A of this program section of the SuperNOFA.
    (3) Group home. The minimum number of persons with disabilities 
that can reside in a group home is two, and the maximum number is six. 
An additional one-bedroom unit can be provided for a resident manager. 
Only one person per bedroom is allowed, unless two residents choose to 
share one bedroom or a resident determines he/she needs another person 
to share his/her bedroom.
    (D) HUD/RHS Agreement. HUD and the Rural Housing Service (RHS) have 
an agreement to coordinate the administration of the agencies' 
respective rental assistance programs. As a result, HUD is required to 
notify RHS of applications for housing assistance it receives. This 
notification gives RHS the opportunity to comment if it has concerns 
about the demand for additional assisted housing and possible harm to 
existing projects in the same housing market area. HUD will consider 
RHS comments in its review and application selection process.
    (E) Development Cost Limits. (1) The following development cost 
limits, adjusted by locality as described in Section IV(E)(2) below, 
must be used to

[[Page 21947]]

determine the capital advance amount reserved for projects for persons 
with disabilities:
    (a) For independent living projects and dwelling units in 
multifamily housing developments, condominium and cooperative housing: 
The total development cost of the project attributable to dwelling use 
(less the incremental development cost and the capitalized operating 
costs associated with any excess amenities and design features you will 
pay for) may not exceed:
Non-Elevator Structures:
    $41,238 per family unit without a bedroom;
    $47,548 per family unit with one bedroom;
    $57,344 per family unit with two bedrooms;
    $73,400 per family unit with three bedrooms;
    $81,770 per family unit with four bedrooms.
For Elevator Structures:
    $43,398 per family unit without a bedroom;
    $49,748 per family unit with one bedroom;
    $60,493 per family unit with two bedrooms;
    $78,257 per family unit with three bedrooms;
    $85,902 per family unit with four bedrooms.
    (b) For group homes only:

                           Type of Disability
------------------------------------------------------------------------
                                                    Chronic
        Residents           Physical/       mental
                                   developmental    illness
-------------------------------------------------------------
2................................      $166,022      $160,262
3................................       178,533       172,340
4................................       191,045       183,069
5................................       203,556       193,798
6................................       216,054       204,527
------------------------------------------------------------------------

    (c) These cost limits reflect those costs reasonable and necessary 
to develop a project of modest design that complies with HUD minimum 
property standards; the minimum group home requirements of 24 CFR 
891.310(a) (if applicable); the accessibility requirements of 24 CFR 
891.120(b) and 891.310(b); and the project design and cost standards of 
24 CFR 891.120.
(2) Increased Development Cost Limits
    (a) HUD may increase the development cost limits set forth in 
Section IV(E)(1) of this program section of the SuperNOFA by up to 140 
percent in any geographic area where the cost levels require, and may 
increase the development cost limits by up to 160 percent on a project-
by-project basis. This increase may include covering additional costs 
to make dwelling units accessible through rehabilitation.
    (b) If HUD finds that high construction costs in Alaska, Guam, the 
Virgin Islands or Hawaii make it infeasible to construct dwellings, 
without the sacrifice of sound standards of construction, design, and 
livability, within the development cost limits provided in Section 
IV(E)(1) of this program section of the SuperNOFA, the amount of 
capital advances may be increased to compensate for such costs. The 
increase may not exceed the limits established under this section 
(including any high cost area adjustment) by more than 50 percent.
    (c) For group homes only, HUD Offices may approve increases in the 
development cost limits in Section IV(E)(1)(b), above, in areas where 
you can provide sufficient documentation that high land costs limit or 
prohibit project feasibility. An example of acceptable documentation is 
evidence of at least three land sales that have actually taken place 
(listed prices for land are not acceptable) within the last two years 
in the area where your project is to be built. The average cost of the 
documented sales must exceed ten percent of the development cost limit 
for your project in order for an increase to be considered.
    (F) Minimum Capital Investment. Selected nonprofit organizations 
must provide a minimum capital investment of one-half of one percent of 
the HUD-approved capital advance amount not to exceed a maximum of 
$10,000 in accordance with 24 CFR 891.145.
    (G) Accessibility. Your project must meet accessibility 
requirements published at 24 CFR 891.120, 24 CFR 891.310 and Section 
504 of the Rehabilitation Act of 1973, and, if new construction, the 
design and construction requirements of the Fair Housing Act and HUD's 
implementing regulations at 24 CFR part 100. In addition, 24 CFR 
8.4(b)(5) prohibits the selection of a site or location which has the 
purpose or effect of excluding persons with disabilities from the 
federally assisted program or activity. HUD will award higher points to 
applications that add accessible design features beyond those required 
under civil rights laws and regulations. See Section II (C) of the 
General Section of this SuperNOFA.
    (H) Conducting Business in Accordance With Core Values and Ethical 
Standards. Section 811 Sponsors are not subject to the requirements of 
24 CFR parts 84 and 85 as outlined in the General Section of this 
SuperNOFA. However, Sponsors are still subject to the core values and 
ethical standards as they relate to the conflict of interest provisions 
in 24 CFR 891.130. To ensure compliance with the program's conflict of 
interest provisions, you are required to submit a signed Conflict of 
Interest Resolution and include it in your Section 811 application. 
Further, if awarded a Section 811 fund reservation, the officers, 
directors, board members, trustees, stockholders and authorized agents 
of the Section 811 Sponsor and Owner entities will be required to 
submit to HUD individual certifications regarding compliance with HUD's 
conflict of interest requirements.
    (I) Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses. Although the 
Section 811 program is not subject to the provisions of 24 CFR 85.36(e) 
as described in the corresponding paragraph in the General Section of 
the SuperNOFA, you are required to comply with Executive Order 12432, 
Minority Business Enterprise Development and Executive Order 11625, 
Prescribing Additional Arrangements for Developing and Coordinating a 
National Program for Minority Business Enterprise as they relate to the 
encouragement of HUD grantees to utilize minority business enterprises.
    (J) Fair Housing Requirements. See Section V of the General Section 
of this SuperNOFA.
    (K) Economic Opportunities for Low and Very Low Income Persons. See 
Section V of the General Section of this SuperNOFA.
    (L) Design and Cost Standards. You must comply with HUD's Section 
811 project design and cost standards (24 CFR 891.120 and 891.310), the 
Uniform Federal Accessibility Standards (24 CFR 40.7), Section 504 of 
the Rehabilitation Act of 1973 and HUD's implementing regulations at 24 
CFR part 8, and for covered multifamily dwellings designed and 
constructed for first occupancy after March 13, 1991, the design and 
construction requirements of the Fair Housing Act and HUD's 
implementing regulations at 24 CFR part 100, and the Americans with 
Disabilities Act of 1990, where applicable.
    (M) Acquisition and Relocation. You must comply with the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970, as amended (49 CFR part 24 and 24 CFR part 891.155(e)) (URA), 
which covers the acquisition of sites, with or without existing 
structures and with 24 CFR 8.4(b)(5) of the Section 504 regulations 
which prohibits discrimination based

[[Page 21948]]

on disability in determining the site or location of a federally-
assisted facility. However, you are exempt from complying with the site 
acquisition requirements of the URA if you do not have the power of 
eminent domain and prior to entering into a contract of sale, option to 
purchase or any other method of obtaining site control, you inform the 
seller of the land: (1) That you do not have the power of eminent 
domain and, therefore, you will not acquire the property if 
negotiations fail to result in an amicable agreement, and (2) of the 
estimate of the fair market value of the property. An appraisal is not 
required to meet this requirement, however, your files must include an 
explanation, with reasonable evidence of the basis for the estimate.
    (N) Formation of Owner Corporation. You must form an ``Owner'' in 
accordance with 24 CFR 891.305 after issuance of the capital advance; 
cause the Owner to file a request for determination of eligibility and 
a request for capital advance, and provide sufficient resources to the 
Owner to ensure the development and long-term operation of the project, 
including capitalizing the Owner at firm commitment processing in an 
amount sufficient to meet its obligations in connection with the 
project.
    (O) Supportive Services. You are required to include a Supportive 
Services Plan and a certification from the appropriate state or local 
agency that the provision of services identified in your Supportive 
Services Plan is well designed to address the individual health, mental 
health and other needs of persons with disabilities who will live in 
your proposed project. Exhibit 5 in Appendix A of this program section 
of the SuperNOFA, below, outlines the information that must be in the 
Supportive Services Plan. You must submit one copy of your Supportive 
Services Plan to the appropriate state or local agency well in advance 
of the application submission deadline date for the state or local 
agency to review your Supportive Services Plan and complete the 
Supportive Services Certification and return it to you so that you can 
include it in the application you submit to HUD.
    (1) HUD will reject your application if the supportive services 
certification:
    (a) Is not submitted with your application and is not submitted to 
HUD within the 14-day cure period; or
    (b) Indicates that the provision of supportive services is not well 
designed to address the individual health, mental health and other 
needs of persons with disabilities who will live in your project; or
    (c) Indicates that the provision of supportive services will not 
enhance independent living success or promote the dignity of the 
persons with disabilities who will live in your proposed project.
    (2) In addition, if the agency completing the certification will be 
a major funding or referral source for your proposed project or be 
responsible for licensing the project, HUD will reject your application 
if either the agency's supportive services certification indicates--or, 
where the agency fails to complete item 3 or 4 of the certification, 
HUD determines that:
    (a) You failed to demonstrate that supportive services will be 
available on a consistent long-term basis; and/or
    (b) The proposed housing is not consistent with state or local 
agency plans/policies addressing the housing needs of people with 
disabilities.
    Any prospective resident of a Section 811 project who believes he/
she needs supportive services must be given the choice to be 
responsible for acquiring his/her own services or to take part in your 
Supportive Services Plan which must be designed to meet the individual 
needs of each resident.
    You must not require residents to accept any supportive services as 
a condition of occupancy or admission.
    (P) Davis-Bacon. You must comply with the Davis-Bacon Requirements 
and the Contract Work Hours and Safety Standards Act.
    (Q) Flood Disaster Protection Act of 1973 and Coastal Barriers 
Resources Act. You must comply with the requirements under the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4001-4128) and the Coastal 
Barrier Resources Act (16 U.S.C. 3601).
    (R) National Environmental Policy Act. You must comply with the 
National Environmental Policy Act of 1969 (NEPA)(42 U.S.C. 4321) and 
applicable related environmental authorities at 24 CFR 50.4 and HUD's 
programmatic implementing regulations at 24 CFR part 50 and 24 CFR 
891.155(b), especially, but not limited to, the provision of 
information to HUD at 24 CFR 50.31(b) and you must comply with any 
environmental conditions and safeguards at 24 CFR 50.3(c).
    (S) Sites. (1) Site Control or Site Identification. In your 
application, you must provide either:
    (a) Evidence of Site Control--If you have control of a site at the 
time you submit your application, you must include evidence of such as 
described in Exhibit 4(d)(i) in Appendix A of this program section of 
the SuperNOFA relative to site control.
    or
    (b) Site Identification--If you do not have site control of one or 
more of your sites, you must provide the information required in 
Exhibit 4(d)(x) in Appendix A of this program section of the SuperNOFA 
under ``site identified'' for any site not under control as a 
reasonable assurance that site control will be obtained within six 
months of fund reservation notification.
    (2) Phase I Environmental Site Assessment (ESA)--If you have 
control of the site(s) at the time you submit your application, you 
must submit a Phase I ESA, in accordance with the American Society for 
Testing and Material (ASTM) Standards E 1527-97, as amended, completed 
or updated no earlier than six months prior to the application deadline 
date, in order for the application to be considered as an application 
with site control. The Phase I ESA must be completed and submitted with 
the application. The Phase I study is not a curable deficiency for the 
Section 811 Program. Therefore, it is important that you start the 
Phase I ESA process as soon after publication of this SuperNOFA as 
possible. Documents providing guidance in choosing an environmentally 
safe site, entitled ``Choosing An Environmentally Safe Site'' and the 
``Supplemental Guidance Environmental Information'', are available on 
HUD's Web site at www.hud.gov.
    (a) For a project that will involve demolition and/or 
rehabilitation of a structure(s) built before 1978, the Phase I must 
include the following: (i) an asbestos report that identifies the 
location and condition of any asbestos, and (ii) a certification that 
any asbestos identified in the asbestos report that is in friable 
condition will be abated, that any non-friable asbestos that has been 
identified in the asbestos report and that will be affected by the 
demolition/rehabilitation will be abated, and that any asbestos to be 
abated have been included within the project costs.
    (b) For a project that does not involve demolition/rehabilitation 
of a structure(s) built before 1978, the Phase I must include a 
certification to the same.
    If the Phase I ESA indicates the possible presence of contamination 
and/or hazards, you must decide whether to continue with this site or 
choose another site. Should you choose another site, the same Phase I 
ESA process identified above must be followed for the new site.

    Note: If the property is to be acquired from the FDIC, include a 
copy of the FDIC prepared Transaction Screen Checklist or Phase I 
ESA, and applicable documentation, per the FDIC Environmental 
Guidelines.


[[Page 21949]]


    (3) Phase II ESA--If you choose to continue with the original site 
on which the Phase I ESA indicated contamination or hazards, you must 
undertake a detailed Phase II ESA by an appropriate professional. If 
the Phase II ESA reveals site contamination, the extent of the 
contamination and a plan for clean-up of the site must be submitted to 
the local HUD Office. The plan for clean-up must include a contract for 
remediation of the problem(s) and an approval letter from the 
applicable federal, state, and/or local agency with jurisdiction over 
the site.
    In order for your application to be considered as an application 
with site control you must submit this information to the local HUD 
Office on or before July 14, 2003.

    Note: This could be an expensive undertaking. You must pay for 
the cost of any clean-up and/or remediation.

    (4) If your application contains evidence of site control where 
either the evidence or the site is not approvable, your application 
will not be rejected provided you indicate in your application that you 
are willing to seek an alternate site and provide an assurance that 
site control will be obtained within six months of fund reservation 
notification.
    (T) Lead-Based Paint. You must comply with the requirements of the 
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846) and 
implementing regulations at 24 CFR part 35.
    (U) Delinquent Federal Debt. See Section V of the General Section 
of this SuperNOFA.
    (V) Commercial Facilities. A commercial facility for the benefit of 
the residents may be located and operated in the Section 811 project. 
However, the commercial facility cannot be funded with the use of 
Section 811 capital advance or PRAC funds. The maximum amount of space 
permitted for a commercial facility and other community space cannot 
exceed 10 percent of the total project cost. An exception to this 10 
percent limitation is if the project involves acquisition or 
rehabilitation and the additional space was incorporated in the 
existing structure at the time the proposal was submitted to HUD. 
Commercial facilities are considered public accommodations under Title 
III of the Americans with Disabilities Act of 1990 (ADA), and thus must 
comply with all the accessibility requirements of the ADA.
    (W) False Statements. See Section V of the General Section of this 
SuperNOFA.
    (X) Expiration of Section 811 Funds. The FY 2003 Consolidated 
Appropriations requires HUD to obligate all Section 811 funds 
appropriated for FY 2003 by September 30, 2006. Under 31 U.S.C. 1551, 
no funds can be disbursed from this account after September 30, 2011. 
Under Section 811, obligation of funds occurs for both capital advances 
and project rental assistance upon fund reservation and acceptance. If 
all funds are not disbursed by HUD and expended by the project Owner by 
September 30, 2011, the funds, even though obligated, will expire and 
no further disbursements can be made from this account. In submitting 
an application, you need to carefully consider whether your proposed 
project can be completed through final capital advance closing no later 
than September 30, 2011. Furthermore, all unexpended balances, 
including any remaining balance on PRAC contracts, will be cancelled as 
of October 1, 2011. Amounts needed to maintain PRAC payments for any 
remaining term on the affected contracts beyond that date will have to 
be funded from other current appropriations.

V. Application Selection Process

    (A) Review for Curable Deficiencies. You should ensure that your 
application is complete and that you have an original and four copies 
before submitting it to the appropriate HUD office. HUD will screen all 
applications received by the deadline to determine if there are any 
curable deficiencies. A curable deficiency is a missing Exhibit or 
portion of an Exhibit that will not affect the rating of your 
application. The following is a list of the only deficiencies that will 
be considered curable in a Section 811 application:

Exhibits

    (1) Form 92016-CA (Application Form)*
    (2) (a) Articles of Incorporation*
    (b) By-laws*
    (c) IRS tax exemption ruling*
    (4) (c)(ii) Energy efficiency
    (d)(vii) Letter from the State Historic Preservation Officer (SHPO)
    (d)(viii) Seek alternate site
    (5) Supportive Services Plan
    (7) Relocation
    (8) (a) Form HUD-424, Application for Federal Assistance
    (b) Standard Form LLL, Disclosure of Lobbying Activities (if 
applicable)
    (c) Form HUD-424B, Applicant Assurances and Certifications
    (d) Form HUD-2880, Applicant/Recipient Disclosure/Update Report
    (e) Form HUD-2991, Certification of Consistency with Consolidated 
Plan
    (f) Form HUD-92041, Sponsor's Conflict of Interest Resolution
    (g) Form HUD-92042, Sponsor's Resolution for Commitment to Project*
    (i) Form HUD-2530, Previous Participation Certification
    (j) Form HUD-92043, Supportive Services Certification
    The HUD Office will notify you in writing if your application is 
missing any of the above exhibits or portions of exhibits and will give 
you 14 days from the date of the HUD notification to submit the 
information required to cure the noted deficiencies. The items 
identified by an asterisk (*) must be dated on or before the 
application deadline date.
    (B) Rating. HUD will review and rate your application in accordance 
with the Application Selection Process in the General Section of this 
SuperNOFA with the following exception. HUD will not reject your 
application based on technical review without notifying you of the 
rejection with all the reasons for rejection and providing you an 
opportunity to appeal. You will have 14 calendar days from the date of 
HUD's written notice to appeal a technical rejection to the HUD Office.
    Your application(s) will be either rated or technically rejected at 
the end of technical review. If your application meets all program 
eligibility requirements after completion of technical review, 
including HUD approval of you, the Section 811 applicant, based on 
HUD's evaluation of your previous participation activities as reported 
on Form HUD-2530, Previous Participation Certification, your 
application will be rated according to the Rating Factors in Section 
V(D) below. The HUD Office will make a determination on any appeals 
before making its selection recommendations.
    If an Exhibit or portion of an Exhibit listed above as curable is 
not discovered as missing until technical processing, HUD will provide 
you with 14 calendar days in which to cure the deficiency.
    (C) Ranking and Selection Procedures. Applications that have a 
total base score of 75 points or more (without the addition of RC/EC/EZ 
bonus points) and meet all of the applicable threshold requirements of 
Section V(B) of the General Section of the SuperNOFA will be eligible 
for selection and will be placed in rank order. HUD will select 
applications, after adding any bonus points for RC/EC/EZ, based on rank 
order, up to and including the last application that can be funded out 
of each HUD Program Center Office's allocation. HUD Program Center 
Offices will not skip over any applications in order to select one 
based on the funds

[[Page 21950]]

remaining. After making the initial selections, however, HUD Program 
Center Offices may use any residual funds to select the next rank-
ordered application by reducing the number of units by no more than 10 
percent, rounded to the nearest whole number, provided the reduction 
will not render the project infeasible. For this purpose, however, HUD 
will not reduce the number of units in projects of five units or less.
    After the HUD Program Center Offices have funded all possible 
projects based on the process above, residual funds from all HUD 
Program Center Offices within each Multifamily Hub will be combined. 
First, these funds will be used to restore units to projects reduced by 
HUD Program Center Offices based on the above instructions. Second, 
additional applications within each Multifamily Hub will be selected in 
rank order with only one application selected per HUD Program Center 
Office. More than one application may be selected per HUD Program 
Center Office if there are no approvable applications in other HUD 
Program Center Offices within the Multifamily Hub. This process will 
continue until there are no more approvable applications within the 
Multifamily Hub that can be selected with the remaining funds. 
Applications may not be skipped over to select one based on funds 
remaining. However, the HUD Multifamily Hub may use any remaining 
residual funds to select the next rank-ordered application by reducing 
the number of units by no more than 10 percent rounded to the nearest 
whole number, provided the reduction will not render the project 
infeasible or result in the project being less than 5 units.
    Funds remaining after the Multifamily Hub selection process is 
completed will be returned to Headquarters. HUD Headquarters will use 
these funds first to restore units to projects reduced by HUD Program 
Center or Multifamily Hub Offices as a result of the instructions for 
using their residual funds. Second, HUD Headquarters will use these 
funds for selecting applications based on HUD Program Center Offices' 
rankings, beginning with the highest rated application nationwide. Only 
one application will be selected per HUD Program Center Office from the 
national residual amount. If there are no approvable applications in 
other HUD Program Center Offices, the process will begin again with the 
selection of the next highest rated application nationwide. This 
process will continue until all approvable applications are selected 
using the available remaining funds. Headquarters may skip over a 
higher rated application in order to use as much of the available 
remaining funds as possible.
    (D) Factors For Award Used To Evaluate and Rate Applications. HUD 
will rate applications that successfully complete technical processing 
using the Rating Factors set forth below and in accordance with the 
application submission requirements in Appendix A of this program 
section of the SuperNOFA. The maximum number of points an application 
may receive under this program is 102. This includes two (2) RC/EZ/EC 
bonus points, as described in the General Section of this SuperNOFA.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (30 Points)

    This factor addresses the extent to which you have the 
organizational resources to successfully implement the proposed 
activities in a timely manner. Submit information responding to this 
factor in accordance with Application Submission Requirements in 
Exhibits 2, 3(a), 3(b), 3(e), and 6 of Appendix A to this program 
section of the SuperNOFA.
    In rating this factor, HUD will consider the extent to which your 
application demonstrates your ability to develop and operate the 
proposed housing on a long-term basis, considering the following:
    (a) (15 points) The scope, extent, and quality of your experience 
in providing housing or related services to those proposed to be served 
by the project and the scope of the proposed project (i.e., number of 
units, services, relocation costs, development, and operation) in 
relationship to your demonstrated development and management capacity 
as well as your financial management capability;
    (b)(i) (5 points) The scope, extent, and quality of your experience 
in providing housing or related services to minority persons or 
families.
    (b)(ii) (5 points) The scope, extent, and quality of your ties to 
the community at large and to the minority and disability communities 
in particular.
    For the purpose of this program section of the SuperNOFA, the term 
``minority'' encompasses the basic racial and ethnic categories for 
federal statistics and administrative reporting, as defined in the 
General Section of the SuperNOFA in the section entitled ``Race and 
Ethnicity.''
    To earn the maximum number of points under this subcriterion, you 
must describe both your relationships over time with the minority 
community and significant previous experience in providing housing and/
or supportive services to minorities generally and to minority persons 
with disabilities, in particular. For the purpose of this competition, 
``significant previous experience'' means that the previous housing 
assistance or related services to minorities, i.e., the percentage of 
minorities being provided housing or related services in your current 
developments, was equal to or greater than the percentage of minorities 
in the jurisdiction where the previous housing or services occurred.
    (c) (-2 to -4 points) HUD will deduct (except if the delay was 
beyond your control) 2 points if a fund reservation you received under 
either the Section 811 program of Supportive Housing for Persons with 
Disabilities or the Section 202 program of Supportive Housing for the 
Elderly has been extended beyond 24 months, 3 points if beyond 36 
months, and 4 points if beyond 48 months. Examples of delays beyond 
your control include, but are not limited to, initial closing delays 
that are: (1) Directly attributable to HUD, (2) directly attributable 
to third party opposition, including litigation, and (3) due to a 
disaster, as declared by the President of the United States.
    (d) (-1 point) HUD will deduct 1 point if amendment money was 
required as a result of the delay (except if the delay was beyond your 
control).
    (e) (5 points) You have experience in developing integrated housing 
(e.g., condominium units scattered within one or more buildings or non-
contiguous independent living units on scattered sites) and/or the 
proposed project will be an integrated housing model.

Rating Factor 2: Need/Extent of the Problem (15 Points)

    This factor addresses the extent to which there is a need for 
funding the proposed activities to address a documented problem in the 
target area. Submit information responding to this factor in accordance 
with Application Submission Requirements in Exhibits 4(a) and 4(b) of 
Appendix A of this program section of the SuperNOFA. HUD will consider 
the following in evaluating this factor:
    The extent of the need for the project in the area based on a 
determination by the HUD Office. In making this determination, HUD will 
consider your evidence of need in the area, as well as other economic, 
demographic, and housing market data available to the HUD Office. The 
data should include a general assessment of the current conditions in 
the market for the type of

[[Page 21951]]

housing proposed, an estimate of the demand for additional housing of 
the type proposed in the applicable housing market area; as well as, 
information on the numbers and types of existing comparable subsidized 
housing for persons with disabilities, current occupancy in such 
housing and recent market experience, comparable subsidized housing for 
persons with disabilities under construction or for which fund 
reservations have been issued, and, in accordance with an agreement 
between HUD and RHS, comments from RHS on the demand for additional 
comparable subsidized housing and the possible harm to existing 
projects in the same housing market area. The Department also will 
review more favorably those applications which establish a connection 
between the proposed project and the community's Analysis of 
Impediments to Fair Housing Choice (AI) or other planning document that 
analyzes fair housing issues and is prepared by a local planning or 
similar organization. You must show how the proposed project will 
address an impediment to fair housing choice described in the AI or 
meet a need identified in the other type of planning document.
    In evaluating this factor, HUD will rate your application as 
follows:
    (a) (12 points) The extent of the need for the project in the area 
based on a determination by the HUD Office, taking into consideration 
the Sponsor's evidence of need in the area, as well as other economic, 
demographic and housing market data available to HUD.
    (b) (3 points) The extent that a connection has been established 
between the project and the community's Consolidated Plan, Analysis of 
Impediments to Fair Housing Choice (AI) or other planning document that 
analyzes fair housing issues and is prepared by a local planning or 
similar organization.

Rating Factor 3: Soundness of Approach (40 Points)

    This factor addresses the quality and effectiveness of your 
proposal, the extent to which you involved persons with disabilities, 
including minority persons with disabilities in the development of the 
application and will involve them in the development and operation of 
the project, and the extent to which you coordinated your application 
with other organizations, including local independent living centers, 
with which you share common goals and objectives and are working toward 
meeting these objectives in a holistic and comprehensive manner. There 
must be a clear relationship between the proposed activities, the 
community's needs and purposes of the program funding for your 
application to receive points for this factor. Submit information 
responding to this factor in accordance with Application Submission 
Requirements in Exhibits 2(d), 3(f), 3(j), 4(c), 4(d), and 5 of 
Appendix A of this program section of the SuperNOFA. In evaluating this 
factor, HUD will consider the following:
    (a)(i) (10 points) Site approvability--The proximity or 
accessibility of the site to shopping, medical facilities, 
transportation, places of worship, recreational facilities, places of 
employment, and other necessary services to the intended tenants; 
adequacy of utilities and streets, and freedom of the site from adverse 
environmental conditions (based on site visit for site control projects 
only); and compliance with site and neighborhood standards in 24 CFR 
891.125(a), (d), and (e). Sites where amenities are accessible other 
than by project residence or private vehicle will be rated more 
favorably;
    (a)(ii) (5 points) Site control--If your application contains 
legally acceptable site control for all proposed sites and all of the 
proposed sites are approvable (i.e., receive a score of 1 or higher on 
Criterion (a)(i)), your application will receive 5 points for site 
control.
    (a)(iii) (-1 point) One or more of your proposed sites is not 
permissively zoned for the intended use.
    (b) (10 points) The suitability of the site from the standpoints of 
promoting a greater choice of housing opportunities for minorities and 
persons with disabilities and affirmatively furthering fair housing. In 
reviewing this criterion, HUD will assess whether the site meets the 
site and neighborhood standards at 24 CFR 891.125(b) and (c) by 
examining relevant data in your application or in the HUD Office. If 
appropriate, HUD may visit the site.
    (i) The site will be deemed acceptable if it increases housing 
choice and opportunity by:

    --Expanding housing opportunities in non-minority neighborhoods if 
located in such a neighborhood. (``Nonminority area'' is defined as one 
in which the minority population is lower than 10 percent); or
    --Contributing to the revitalization of and reinvestment in 
minority neighborhoods, including improvement of the level, quality and 
affordability of services furnished to minority persons with 
disabilities. You should refer to the Site and Neighborhood Standards 
provisions of the regulations governing the Section 811 Supportive 
Housing Program (24 CFR 891.125(b) and (c)) when considering sites for 
your projects.

    (ii) For the purpose of this competition, the term ``minority 
neighborhood (area of minority concentration)'' is defined as one where 
any one of the following statistical conditions exists:

    --The percentage of persons of a particular racial or ethnic 
minority is at least 20 points higher than the minority's or 
combination of minorities' percentage in the housing market as a whole; 
or,
    --The neighborhood's total percentage of minority persons is at 
least 20 points higher than the total percentage of minorities for the 
housing market area as a whole; or
    --In the case of a metropolitan area, the neighborhood's total 
percentage of minority persons exceeds 50 percent of its population.

    (c)(i) (4 points) The extent to which the proposed design of the 
project (exterior and interior) and its placement in the neighborhood 
will meet the individual needs of the residents and will facilitate 
their integration into the surrounding community and promote their 
ability to live as independently as possible;
    (c)(ii) (1 point) The proposed design incorporates visitability 
standards and universal design in the construction or rehabilitation of 
the project.
    (d) (5 points) At least 51% of your board members are persons with 
disabilities.
    (e) (3 points) You involved persons with disabilities (including 
minority persons with disabilities) in the development of the 
application, and will involve persons with disabilities (including 
minority persons with disabilities) in the development and operation of 
the project;
    (f) (2 points) The extent to which you coordinated your application 
with other organizations (including local independent living centers; a 
list of such can be obtained from the local HUD Office) that will not 
be directly participating in your project, but with which you share 
common goals and objectives and are working toward meeting these goals 
and objectives in a holistic and comprehensive manner;

Rating Factor 4: Leveraging Resources (5 Points)

    This factor addresses your ability to secure other community 
resources that can be combined with HUD's program resources to achieve 
program purposes. Submit information responding to this factor in 
accordance with Application

[[Page 21952]]

Submission Requirements in Exhibits 3(c) and (d) of Appendix A of this 
program section of the SuperNOFA.
    (a) (2 points) The extent of local government support (including 
financial assistance, donation of land, provision of services, etc.) 
for the project; and
    (b) (3 points) The extent of your activities in the community, 
including previous experience in serving the area where the project is 
to be located and your demonstrated ability to enlist volunteers and 
raise local funds.

Rating Factor 5: Achieving Results and Program Evaluation (10 Points)

    This factor reflects HUD's goal to embrace high standards of 
ethics, management and accountability and, as such, emphasizes HUD's 
commitment to ensuring that you keep the promises made in your 
application. This factor requires that you clearly identify the 
benefits or outcomes of your project and develop an evaluation plan to 
measure performance, which includes what you are going to measure, how 
you are going to measure it and the steps you will have in place to 
make adjustments to your project development timeline should you not be 
able to achieve any of the major milestones. This factor addresses the 
extent to which your project will implement practical solutions that 
result in residents achieving independent living, economic empowerment, 
educational opportunities and improved living environments. Finally, 
this factor addresses the extent to which the long-term viability of 
your project will be sustained for the duration of the 40-year capital 
advance period. Submit information responding to this factor in 
accordance with Application Submission Requirements in Exhibits 3(g), 
3(h), and 3(i), in Appendix A of this program section of the SuperNOFA.
    (a) (5 points) The extent to which your project development 
timeline is indicative of your full understanding of the development 
process and will, therefore, result in the timely development of your 
project.
    (b) (2 points) The extent to which your project will implement 
practical solutions that will result in assisting residents in 
achieving independent living, economic empowerment, educational 
opportunities, and improved living environments (e.g., activities that 
will improve computer access, literacy and employment opportunities).
    (c) (3 points) The extent to which you demonstrated that your 
project will remain viable as housing with the availability of 
supportive services for very low income persons with disabilities for 
the 40-year capital advance period.

Bonus Points

    (2 bonus points) Location of proposed site in an RC/EZ/EC area, as 
described in the General Section of this SuperNOFA. Submit the 
information responding to the bonus points in accordance with the 
Application Submission Requirements in Exhibit 8(h) in Appendix A of 
this program section of the SuperNOFA.
    (E) Applicant Debriefing. You may request a debriefing on your 
application in accordance with the General Section of this SuperNOFA, 
with the exception that the request must be made to the Director of 
Multifamily Housing in the HUD Field Office to which you sent your 
application.

VI. Application Submission Requirements

    The application submission requirements are contained in Appendix A 
of this program section of the SuperNOFA. Your application must include 
all of the information, materials, forms, and exhibits listed in 
Appendix A of this program section of the SuperNOFA (unless you were 
selected for a Section 811 fund reservation within the last three 
funding cycles). If you qualify for this exception, you are not 
required to submit the information described in Exhibit 2(a), (b), and 
(c), in Appendix A of this program section of the SuperNOFA, which are 
the articles of incorporation (or other organizational documents), by-
laws, and the IRS tax exemption, respectively. If there has been a 
change in any of these documents since your previous HUD approval, you 
must submit the updated information in your application. The HUD Office 
will verify your indication of previous HUD approval by checking the 
project number and approval status with the appropriate HUD Office 
based on information submitted.
    In addition to this relief of paperwork burden in preparing 
applications, you are able to use information and exhibits previously 
prepared for prior applications under Section 811, Section 202, or 
other funding programs. Examples of exhibits that may be readily 
adapted or amended to decrease the burden of application preparation 
include, among others, those on previous participation in the Section 
202 or Section 811 programs, your experience in the provision of 
housing and services, supportive services plans, community ties, and 
experience serving minorities.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.

VIII. Formation of Owner Corporation for Development of Section 811 
Projects and for Section 811 Projects Involving Mixed-Financing

    Applicant eligibility for purposes of applying for a Section 811 
fund reservation under this NOFA has not changed; i.e., all Section 811 
Sponsors and Co-Sponsors must be nonprofit organizations. However, the 
Owner corporation, when later formed by the Sponsor, may be (1) a 
single-purpose nonprofit organization that has tax-exempt status under 
Section 501(c)(3) of the Internal Revenue Code of 1986, or (2) for 
purposes of developing a mixed-finance project for developing 
additional units over and above the Section 811 units, a for-profit 
limited partnership with the nonprofit entity as the sole general 
partner.

IX. Authority

    Section 811 of the Cranston-Gonzalez National Affordable Housing 
Act (Pub. L. 101-625, approved November 28, 1990), as amended by the 
Housing and Community Development Act of 1992) (Pub. L. 102-550, 
approved October 28, 1992); the Rescissions Act (Pub. L. 104-19, 
approved July 27, 1995); the American Homeownership and Economic 
Opportunity Act of 2000 (Pub. L. 106-569, approved December 27, 2000) 
and the Fiscal Year 2003 Consolidated Appropriations (Pub. L. 108-7, 
approved February 20, 2003) authorized a new supportive housing program 
for persons with disabilities, and replaced assistance for persons with 
disabilities previously covered by section 202 of the Housing Act of 
1959 (section 202 continues, as amended by section 801 of the NAHA, and 
the HCD Act of 1992, to authorize supportive housing for the elderly).
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[FR Doc. 03-9591 Filed 4-17-03; 9:47 am]
BILLING CODE 4210-32-C