[Federal Register Volume 68, Number 126 (Tuesday, July 1, 2003)]
[Notices]
[Pages 39400-39425]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16593]



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Part IV





Department of Housing and Urban Development





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Notice of Funding Availability (NOFA) for the Lead Hazard Reduction 
Demonstration Grant Program for Fiscal Year 2003; Notice

  Federal Register / Vol. 68, No. 126 / Tuesday, July 1, 2003 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4851-N-01]


Notice of Funding Availability (NOFA) for the Lead Hazard 
Reduction Demonstration Grant Program for Fiscal Year 2003

AGENCY: Office of Healthy Homes and Lead Hazard Control, HUD.

ACTION: Notice of funding availability.

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I. Program Overview

    Purpose of the Program. The purpose of the Lead Hazard Reduction 
Demonstration Grant Program is to assist areas with the highest lead 
paint abatement needs in undertaking programs for abatement, 
inspections, risk assessments, temporary relocations, and interim 
control of lead-based paint hazards in eligible privately owned, single 
family housing units, and multifamily buildings that are occupied by 
low-income families.
    Available Funds. Approximately $49,675,000 in Fiscal Year 2003 
funds.
    Eligible Applicants. The eligible applicants must be a city, 
county, or similar unit of local government. States and Indian Tribes 
may apply on behalf of units of local government within their 
jurisdiction, if the local government designates the state or Indian 
Tribe as their applicant. 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. 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. July 31, 2003.
    Match. A 25 percent match in local funds.

II. Addresses and Application Submission Procedures

    (A) Application Submission. See the General Section of the 
SuperNOFA for specific procedures concerning the form of application 
submission (e.g., mailed applications, express mail, or overnight 
delivery). The General Section of the SuperNOFA was published in the 
Federal Register on April 25, 2003, at page 21002 and is available on 
HUD's website at http://www.hud.gov/offices/adm/grants/nofa/grplead.cfm. Applicants for this NOFA must also read the General 
Section of the SuperNOFA in order to submit an acceptable application. 
There is no application kit for this NOFA.
    (B) Addresses. You, the applicant, must submit a complete 
application (although not required, applicants are encouraged to submit 
3 additional copies of their application) to: Department of Housing and 
Urban Development, Office of Healthy Homes and Lead Hazard Control, 
ATTN: Lead Hazard Reduction Demonstration Grant Program, 451 Seventh 
Street, SW., Room P3206, Washington, DC 20410-0001.
    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.

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

    (A) Authority. The Lead Hazard Reduction Demonstration Grant 
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, Pub. L. 108-7, approved February 20, 2003.
    (B) Funding Available and Eligibility. Approximately $49.9 million 
in Fiscal Year 2003 funds is available. The minimum award amount shall 
be $2 million per grant. The maximum award amount shall be $4 million 
per grant. Approximately 12-25 grants will be awarded.

IV. Eligible Applicants and Activities

    (A) Program Description. The Lead Hazard Reduction Demonstration 
Grant Program assists areas with the highest lead paint abatement needs 
in undertaking programs for abatement, inspections, risk assessments, 
temporary relocations, and interim control of lead-based hazards in 
eligible privately owned, single family housing units, and multifamily 
buildings that are occupied by low-income families, as defined by 
Section 3(b)(2) of the Housing Act of 1937. Areas with the highest 
lead-based paint abatement needs are identified as having: (1) The 
highest number of pre-1940 units of rental housing; and (2) a 
disproportionately high number of documented cases of lead-poisoned 
children.
    Appendix B lists additional 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 or 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 or 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

[[Page 39401]]

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 and Threshold Requirements. (1) To be 
eligible to apply for funding under this program, the applicant must be 
a city, county, or similar unit of local government. States and Indian 
Tribes may apply on behalf of units of local government within their 
jurisdiction, if the local government designates the state or the 
Indian Tribe as their applicant. 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. 
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). You may submit only one 
application. In the event that multiple applications are submitted, 
this will be considered a technical deficiency 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 the 
SuperNOFA). In addition, if you or any member of your consortium also 
applied for funding under the recent Fiscal Year 2003 Lead Hazard 
Control Grant Program Notice of Funding Availability, you must discuss 
how both programs will operate concurrently and how program activities 
will be combined to achieve maximum benefits.
    (2) Threshold Requirements. As an eligible applicant, you must also 
meet all of the threshold requirements in Section V(B) of the General 
Section of the SuperNOFA as well as the specific threshold requirements 
listed in this subsection. Applications will not be rated or ranked if 
they do not meet the threshold requirements.
    (a) Applicants must report the total number of pre-1940 rental 
units within the jurisdiction(s) where funds will be used (data from 
the 2000 U.S. Census are acceptable). Applicants must have at least 
3,200 pre-1940 rental housing units in order to apply under this NOFA. 
Appendix C includes the top 100 areas ranked by the number of pre-1940 
rental housing units as determined by the year 2000 U.S. Census. 
Failure to provide the number of pre-1940 rental units will result in 
the application not being evaluated.
    (b) Provide the actual number of documented cases of lead-poisoned 
children residing within the applicant's jurisdiction(s) for the most 
recent complete calendar year and identify the source of the data. Data 
prior to calendar year 2000 will not be accepted. States and Indian 
Tribes must report the number in the city, county, or other area where 
funds will actually be used. Consortia of local governments must report 
the number in the cities or counties making up the consortium. For the 
purposes of this application, a ``documented case'' of childhood lead 
poisoning is a child under six years of age with a blood lead level 
test of equal to or greater than 10 micrograms of lead per deciliter of 
blood, which was performed by a medical health care provider. The 
actual number of documented cases (not an estimate) must be reported to 
HUD in order to be eligible for this grant program. Do not send the 
children's names, addresses, or other identifiers. Failure to provide 
this number in the application means that the application will not be 
rated or ranked.
    (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. If the Analysis of 
Impediments (AI) includes references to lead-based paint as an 
impediment to fair housing, this should be included in your application 
as well. If the same applicant agency also submitted an application for 
the recently published Fiscal Year 2003 Lead Hazard Control Grant 
Program Notice of Funding Availability, you may refer to this material 
for proof of documentation if the applicant agencies are the same. You 
are not required to resubmit this material for this NOFA.
    (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) 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.
    (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. Copies of this Regulation are 
available from the Office of Healthy Homes and Lead Hazard Control 
website at: http://www.hud.gov/offices/lead.
    (1) Not less than 90 percent of the funds made available shall be 
used exclusively for abatement and/or interim controls (with clearance 
testing), inspections, risk assessments, and temporary relocations. 
These include Direct Project Elements (a)-(e) that you may undertake 
directly or through sub-recipients:
    (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 lead hazard control activities that may include any 
combination of the following:
    i. Interim controls of lead-based paint hazards including lead-
contaminated soil in housing (that must include specialized cleaning 
techniques to address lead dust, according to the HUD Guidelines, 
located at http://www.hud.gov/offices/lead/guidelines/hudguidelines/index.cfm.
    ii. Abatement. The complete abatement of all lead-based paint 
hazards in a unit or structure is acceptable if it is cost-effective 
and if prior HUD approval is obtained. 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.
    All lead hazards identified in a housing unit enrolled in this 
grant program must be controlled or eliminated by any combination of 
these strategies.
    (c) Carrying out temporary relocation of families and individuals 
during the period in which hazard control is

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conducted and until the time the affected unit receives clearance for 
reoccupancy. If families or individuals are temporarily relocated in a 
project which utilizes Community Development Block Grant funds, the 
guidance and requirements of 24 CFR 570.606(b)(2)(i)D(1)-(3) must be 
met. HUD recommends you review these regulations when preparing your 
proposal.
    (d) 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.
    (e) Conducting clearance dust-wipe testing and laboratory analysis 
(the 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).
    (2) The following are supporting Project Elements that may be 
undertaken through matching or other available funds only:
    (a) Conducting targeted community awareness, affirmative marketing, 
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, and large type).
    (b) Engineering and architectural activities that are required for, 
and in direct support of, lead hazard control work.
    (c) Procuring liability insurance for lead-hazard control 
activities.
    (d) 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.
    (e) Purchasing or leasing equipment having a per unit cost under 
$5,000.
    (f) Purchasing or leasing no more than two X-ray fluorescence 
analyzers for use by this program, if not already available.
    (g) Preparing a final report at the conclusion of grant activities.
    (3) Support Elements.
    (a) Administrative costs. There is a 10 percent 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.
    (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).

V. Requirements

    Except as modified in this section, all the requirements, 
procedures, and principles listed in Section V of the General Section 
of the SuperNOFA apply to this program.
    (A) Matching Contribution. You must provide a matching contribution 
of at least 25 percent 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 required 25 percent 
matching requirement. Federal funds may be used, however, for 
contributions above the statutory requirement.
    (B) Program Requirements. The applicant must also comply with the 
following:
    (1) Work Activities. 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 located at http://www.hud.gov/offices/lead/guidelines/leadsaferule/index.cfm. 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. Not 
less than 90 percent of the funds made available shall be used 
exclusively for abatement, inspections, risk assessments, temporary 
relocations, and interim control of lead-based hazards.
    (3) By September 30, 2005, a statewide or jurisdiction-wide 
strategic plan to eliminate childhood lead poisoning as a major public 
health problem by 2010 (further guidance will be provided to grantees 
on developing the elimination plan) must be submitted to HUD. 
Applicants are encouraged to collaborate with grantees of the Centers 
for Disease Control and Prevention (CDC), which are also now required 
to develop such local plans. At a minimum, the plan must include the 
following elements:
i. Mission Statement
ii. Purpose and Background on Lead Poisoning Prevalence
iii. Goals, Objectives, and Activities
iv. Evaluation Plan
    (C) Administrative Costs. There is a 10 percent 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.
    (D) Period of Performance. The period of performance is 42 months. 
HUD reserves the right to approve no cost time extensions for a period 
not to exceed 12 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).

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    (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 must be 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 website at: http://www.hud.gov/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 website at: 
http://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 Safety and Health Administration 
(OSHA) (29 CFR 1926.62, Lead Exposure in Construction), or applicable 
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;
    (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 families for at least three years 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, located at http://www.hud.gov/offices/lead/guidelines/hudguidelines/index.cfm, 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 should 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. (a) You shall 
cooperate fully with any research or evaluation sponsored by HUD, CDC,

[[Page 39404]]

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 may also 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.
    (b) If your program includes conducting research involving 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). 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.
    (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 the SuperNOFA. The requirements of Section 3 of 
the Housing and Urban Development Act of 1968 are applicable to this 
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 Section I of the General 
Section of the 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 SectionV(B) of the 
General Section of the 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 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.
    (W) Proposed Exceptions to HUD Requirements. Proposed methods that 
differ from HUD's Lead Safe Housing Rule will be considered on their 
merits through a separate HUD review and approval process after the 
grant award is made and a specific justification has been presented. 
HUD may consult with experts from both the public and private sectors. 
HUD will not approve methods that, in HUD's opinion, involve a lowering 
of standards that have the potential to adversely affect the health of 
residents, contractors or workers, or the environment.

VI. Application Selection Process

    (A) Rating and Ranking. Please see Section VI (B) of the General 
Section of the SuperNOFA. Only those applications that meet the 
threshold review requirements will be rated and ranked. HUD intends to 
fund the highest ranked applications within the limits of funding. In 
addition, the work plan and budget submitted in response to this NOFA 
will be evaluated as part of the rating and ranking process.
    (1) Adjustments to Funding. See Section VI (F) of the General 
Section of the SuperNOFA for additional information.
    (a) HUD reserves the right to fund an amount different than the 
full amount requested in your application to ensure the fair 
distribution of funds and ensure that the purposes or requirements of 
this program are met.
    (b) HUD will not fund any portion of your application that is not 
eligible for funding under specific program statutory or regulatory 
requirements or does not meet the requirements of this NOFA. Only the 
eligible portions of your application may be funded.
    (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. Each applicant shall submit a detailed work 
plan and strategy that demonstrates adequate capacity. Applications 
will be evaluated based on the criteria below. The maximum number of 
points to be awarded will be 100.
    (1) 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 the SuperNOFA. 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. An applicant will be awarded one point under Rating Factor 
3 (A) (3): Economic

[[Page 39405]]

Opportunities for activities undertaken that specifically address this 
policy priority. Activities that promote the participation of 
grassroots faith-based or other community organizations support HUD's 
policy priority for: Providing Full and Equal Access to Grassroots 
Faith-Based or 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 100. A minimum score of 75 is 
required for fundable applications.

------------------------------------------------------------------------
                                                                 Maximum
                         Rating factor                           points
------------------------------------------------------------------------
1. Capacity of the Applicant and Relevant Organizational              30
 Experience...................................................
2. Demonstrated Need/Extent of the Problem....................        15
3. Soundness of Approach/Work Plan/Budget.....................        55
                                                               ---------
    Total.....................................................       100
------------------------------------------------------------------------

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (30 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 or 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 or 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 and 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. 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 would be used in carrying out your proposed comprehensive 
Lead Hazard Reduction Demonstration 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). 
Where the applicant has received multiple HUD Lead Hazard Control 
Grants, performance under the most recent grant award will be primarily 
evaluated. If you are a current or prior grantee, you must provide the 
detail necessary to assure HUD that you will implement the proposed 
work immediately and perform it concurrently with existing lead hazard 
control grant work. The applicant must provide a description of its 
progress and performance in implementing the most recent grant award 
including the total number of housing units enrolled, assessed, in 
progress, and completed and cleared as of the most recent calendar 
quarter.

Rating Factor 2: Demonstrated Need/Extent of the Problem (15 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 be scored in this rating factor based on their 
documented need as evidenced by thorough, credible, and appropriate 
data and information. The evaluation will be based only on the 
applicant's documentation of the data requested. The data submitted in 
response to this rating factor will be verified using data available 
from the Census and in cooperation with the Centers for Disease Control 
and Prevention.
    (1)Provide the actual number of documented cases of lead-poisoned 
children residing within the applicant's jurisdiction for the most 
recent complete calendar year and identify the source of the data. Data 
prior to calendar year 2000 will not be accepted. States must report 
the number in the city, county, or other area where funds will actually 
be used. Consortia of local governments must report the number in the 
cities or counties making up the consortium. For the purposes of this 
application, a ``documented case'' of childhood lead poisoning is a 
child under six years of age with a blood lead level test of equal to 
or greater than 10 micrograms of lead per deciliter of blood, which was 
performed by a medical health care provider. The actual number of 
documented cases (not an estimate) must be reported to HUD in order to 
be eligible for this grant program. Do not send the children's names or 
addresses or other identifiers. Failure to provide this number in the 
application means that the application will not be rated or ranked. 
Points will be awarded based on the charts below.

------------------------------------------------------------------------
                                                       Pre-1940 units of
                    Points awarded                       rental housing
------------------------------------------------------------------------
1....................................................            < 5,000
2....................................................       5,000-15,000
3....................................................      15,001-25,000
4....................................................      25,001-35,000
5....................................................        
                                                                  35,001
------------------------------------------------------------------------


[[Page 39406]]


------------------------------------------------------------------------
                                                           Number of
                                                        documented cases
                    Points awarded                      of lead-poisoned
                                                            children
------------------------------------------------------------------------
2....................................................              < 100
4....................................................            100-249
6....................................................            250-499
8....................................................            500-999
10...................................................   1,000
------------------------------------------------------------------------

Rating Factor 3: Soundness of Approach /Work Plan /Budget (55 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 the Appendices A and B to this NOFA and are 
available at the HUD website at: http://www.hud.gov/offices/lead/lhc/pgi/index.cfm. This policy guidance provides a sample format and 
outline for developing a Lead Hazard Reduction Demonstration Grant 
Program Work Plan. In addition, applicants are also required to 
complete the HUD Program Outcome Logic Model (HUD-96010) included in 
Appendix D of this NOFA. The Logic Model is to be used by grantees to 
assess their own performance.
    (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, HUD will consider how you have described outcome measures and 
benefits of your program including:
    (a) 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.
    (b) 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, 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.
    (A) Lead Hazard Control Work Plan Strategy (40 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:
    (1) Implementing a Lead Hazard Control Program. 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. Explain how 
you would target resources to maximize the return on investment from 
grant funding. As funding is a constraint for this program, it is 
imperative to maximize the impact of grant dollars. Include in this 
discussion your proposed technical approach and how this choice 
addresses local conditions and needs as well as attempting to maximize 
the number of children protected from lead hazards. As there are a 
variety of reduction techniques that grantees can apply to lead 
hazards, it is important that HUD be able to assess the effectiveness 
of grantees' choice of technical strategy. Also discuss how referrals 
are made 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 
your program.)
    (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, 
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 the program will recapture grant funds 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

[[Page 39407]]

requirements, if any, proposed for assistance to rental property 
owners.
    (e) 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.
    (2) Technical Approach/Performance. 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 (see the Appendix A of this NOFA for Sample Worksheet 2).
    (a) Describe your testing methods, schedule, and costs for 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 percent 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.
    (b) Describe the lead hazard control methods and strategies you 
will undertake and the number of units you will treat. In cases where 
only a few surfaces have lead hazards in a specific unit and complete 
abatement of all lead paint 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) 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.
    (c) 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.
    (d) Time frames. Describe the estimated elapsed time frame 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 activities, and clearance. The time frame 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 number of 
units projected in each of the following categories: lead-based paint 
inspections/risk assessments, hazard control, and clearance 
inspections.
    (e) 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.
    (f) 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.
    (g) Describe your plan for occupant protection or the temporary 
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 http://www.hud.gov/offices/lead/guidelines/leadsaferule/index.cfm). Your work 
plan should address the use of safe houses and other temporary housing 
arrangements, storage of household goods, stipends, incentives, etc. If 
families or individuals are temporarily relocated in a project which 
utilizes Community Development Block Grant funds, the guidance and 
requirements of 24 CFR 570.606(b)(2)(i)D(1)-(3) must be met. HUD 
recommends you review these regulations when preparing your proposal.
    (h) Describe your strategy for involving neighborhood or grassroots 
faith-based or other community-based organizations in your proposed 
activities. Priority activities should include increasing the 
enrollment of eligible privately owned housing units to receive lead 
treatments, but may also include 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.
    (i) 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.
    (j) If you are a current or prior grantee or you have also applied 
to the Fiscal Year 2003 Lead Hazard Control Grant Program Notice of 
Funding Availability, you must describe the actions you will take to 
ensure that your proposed lead hazard control work will occur 
concurrently with other ongoing HUD lead hazard control grant work. 
Your application must provide the detail necessary to assure HUD that 
you will implement the proposed work immediately and perform it 
concurrently with other ongoing lead hazard control grant work.
    (B) Budget. (15 points) Describe your budget within the 42-month 
(or less) period of performance for your lead hazard control grant 
program. You should provide information on:
    (1) Allocation of Funds. (5 points) You should describe your 
detailed total budget (total budget is the federal share and matching 
contribution) with supporting cost justifications for all budget 
categories of your grant request. The budget shall include not more 
than 10 percent for administrative costs and not less than 90 percent 
for direct project elements. You should describe how you intend to 
provide not less than 90 percent of the funds for abatement, 
inspections, risk assessments, temporary relocations, and interim 
control of lead-based hazards and what activities will be conducted 
with the remaining 10 percent.
    (2) Source/Use of Match Funds. (10 points) Specify the amount, 
sources, and proposed use of the 25 percent

[[Page 39408]]

matching contribution, any additional resources, and how they will be 
provided (i.e., by cash, by in-kind services, or personnel). If in-kind 
contributions are used, attribute a monetary value, provide the basis 
for the value of the contribution, and explain how the contributions 
will be used in the project. Each source of contributions should be 
made in a letter of commitment from the contributing entity, describing 
the contributed resources and the monetary value. Resources directly 
contributed by the applicant are considered to be committed and do not 
require letters. Evidence of firm commitments and the appropriate use 
of match resources is necessary for receiving maximum points in this 
rating factor. Matching contributions greater than the required 25 
percent match will receive a higher rating for this subfactor.

    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.

VII. Application Submission Requirements

(A) Application Submission

    (1) Application Format. The application narrative response to the 
Rating Factors is limited to a maximum of 15 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 Section V of the 
General Section of the SuperNOFA. 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 D of the General Section of the SuperNOFA. The program 
application items are:
    (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 or 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) 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 percent for administrative costs 
and not less than 90 percent for direct project elements. 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.
    (e) 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.
    (f) Application Forms. All forms as required by Section V (H) of 
the General Section of the SuperNOFA.
    (g) 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 or other community-or 
neighborhood-based groups or organizations, local businesses, and 
others working with the program (see Appendix A of this NOFA for Sample 
Worksheet 3--Grant Partners).
    (h) 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. If you submitted an application for the recently published FY 
2003 Lead Hazard Control Grant Program Notice of Funding Availability, 
you may refer to this material for proof of documentation. You are not 
required to resubmit this material for this NOFA.
    (i) Rating Factor Response. Narrative responses to the 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. Please see 
Section V of the General Section of the SuperNOFA for additional 
requirements and submittal procedures.
    (C) Applicant Debriefing. See Section XI (A)(4) of the General 
Section of the SuperNOFA for information about applicant debriefing.

VIII. Correction to Deficient Applications

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

IX. Environmental Requirements

    (A) 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 
a.m. and 5 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.
    (B) Environmental Requirements. Recipients of lead hazard reduction 
demonstration 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 Release of Funds (form HUD 7015.15) or the 
recipient has

[[Page 39409]]

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, extension 
3015 (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.
    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 (A) Public Access, Documentation and 
Disclosure Requirements.
    (C) Paperwork Reduction Act Statement.
    The information collection requirements in this NOFA have been 
approved by OMB under the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3520). The OMB number is 2539-0015. 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.
    (D) Catalog of Federal Domestic Assistance Numbers. The Federal 
Domestic Assistance Number for this program is 14.905.

    Dated: June 25, 2003.
David Jacobs,
Director, Office of Healthy Homes and Lead Hazard Control.

Appendix A

    Appendix A contains the Checklist and Submission Table of Contents 
and sample worksheets to assist you in your response to specific 
information requested in this NOFA. The submission of these worksheets 
is not mandatory, but has been developed to reduce the applicant's 
burden on providing this information.

Appendix B

    The description of Administrative Costs, Eligibility of HUD-
Assisted Housing, Section 1011 of Title X, Elements of a State 
Certification Program, and Work Plan Guidance.

Appendix C

    The top 100 areas ranked by the number of pre-1940 rental housing 
units as determined by the year 2000 U.S. Census.

Appendix D

    The required forms for application submission.
BILLING CODE 4210-70-P

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Appendix B

(A) 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 10 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 10 percent of the total grant amount. The balance of 
90 percent or more of the total grant sum is reserved for 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 purposes of this HUD grant program, 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. The allowable limit of such costs that 
can be reimbursed under this program is 10 percent of the total grant 
sum. The grantee should pay particular attention to accurately 
estimating costs, determining the necessity for and reasonableness of 
costs, and correctly computing all budget items and totals. Should the 
grantee's actual costs for overall management of the grant program 
exceed 10 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. Indirect costs must be substantiated and approved by 
the appropriate federal agency or the grantee must provide an indirect 
cost rate plan. The indirect cost rate should be indicated in your 
budget. Grantees should also provide a narrative statement indicating 
how you arrived at your costs. When possible, you should use quotes 
from vendors or historical data. You must support all direct labor and 
salaries with mandated city/state pay scales or other documentation.

IV. Administrative Costs: Definition

A. General

    Administrative costs are the allowable, reasonable, and necessary 
direct 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 10 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 
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 
percent of the total grant sum shall be devoted to the direct delivery 
of 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 10 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 percent 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;

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    (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.
    (B) Eligibility of HUD-Assisted Housing. Eligibility of HUD-
associated ``eligible'' housing units to participate under HUD's Lead 
Hazard Reduction Demonstration 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:
Section 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

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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 establish 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 327 and 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.
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[FR Doc. 03-16593 Filed 6-26-03; 3:04 pm]
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