[Federal Register Volume 68, Number 136 (Wednesday, July 16, 2003)]
[Notices]
[Pages 42190-42239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17991]



[[Page 42189]]

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Part IV





Department of Housing and Urban Development





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Notice of Funding Availability (NOFA) for the Community Development 
Block Grant Program for Indian Tribes and Alaska Native Villages; 
Fiscal Year 2003; Notice

  Federal Register / Vol. 68, No. 136 / Wednesday, July 16, 2003 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4834-N-01]


Notice of Funding Availability (NOFA) for the Community 
Development Block Grant Program for Indian Tribes and Alaska Native 
Villages; Fiscal Year 2003

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

ACTION: Notice of funding availability for Fiscal Year 2003.

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Program Overview

    Authority. Title I of the Housing and Community Development Act of 
1974 (42 U.S.C. 5301 et seq.) and the regulations in 24 CFR part 1003.
    Purpose of the Program. The purpose of the Community Development 
Block Grant Program for Indian Tribes and Alaska Native Villages 
(ICDBG) is the development of viable Indian and Alaska Native 
communities, including the creation of decent housing, suitable living 
environments, and economic opportunities primarily for persons with 
low- and moderate-incomes as defined in 24 CFR 1003.4.
    Available Funds. The FY 2003 appropriation for the ICDBG Program is 
$70,538,500.
    Eligible Applicants. Eligible applicants are Indian tribes or 
tribal organizations on behalf of Indian tribes.
    Application Deadline. September 22, 2003.
    Match. None.

Table of Contents

I. Application Due Date, Addresses for Submission, Tips for 
Application Preparation, Application Kits, Further Information, and 
Technical Assistance, Changes from 2002 NOFA, and Other Information
    A. Application Due Date
    B. Mailing and Receipt Procedures
    C. Addresses for Submitting Applications to the Appropriate Area 
ONAP
    D. General Tips for ICDBG Application Preparation
    E. Application Kits
    F. Further Information
    G. Technical Assistance
    H. Changes from FY 2002 NOFA
    I. Streamlining Grants
    J. eGrants Initiative
    K. Paperwork Reduction Act Statement
    L. HUD's Strategic Goals
    M. Catalog of Federal Domestic Assistance Number
II. Amount Allocated
    A. Available Funds
    B. General
    C. Allocations to Area ONAPs
    D. Imminent Threat Grants
III. Program Description, Eligible Applicants, Eligible Activities, 
Definitions
    A. Program Description
    B. Eligible Applicants
    C. Eligible Activities
    D. Definitions
IV. Requirements
    A. Requirements Applicable to All Projects
    (1) Accessible Technology
    (2) Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses
    (3) Delinquent Federal Debts
    (4) Name Check Review
    (5) Salary Limitations for Consultants
    (6) Procurement of Recovered Materials
    (7) Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor 
Relations on Federal and Federally Funded Construction Projects.
    (8) Executive Order 13279 Equal Protection of the Laws for 
Faith-Based and Community Organizations
    (9) Executive Order 13166, Improving Access to Persons With 
Limited English Proficiency (LEP)
    (10) Conducting Business in Accordance with Core Values and 
Ethical Standards
    (11) Pre-Award Accounting System Surveys
    (12) Grant Ceilings
    (13) Environmental Requirements
    (14) Indian Preference
    (15) Anti-discrimination Provisions
    (16) Conflict of Interest
    (17) Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3)
    B. Requirements Applicable to Specific Projects
    (1) Low- and Moderate-Income Status for Rehabilitation Projects
    (2) Housing Rehabilitation Cost Limits
    (3) Commitment to Housing for Land Acquisition to Support New 
Housing Projects
    (4) Health Care Facilities
V. Application Selection Process
    A. Screening for Acceptance
    B. Threshold Review
    C. Rating
    D. Public Service Projects
    E. Final Ranking
    F. Tiebreakers
    G. Technical Deficiencies and Pre-award Requirements
VI. Threshold Requirements
    A. General Threshold Requirements
    (1) Outstanding ICDBG Obligations
    (2) Compliance with Fair Housing and Civil Rights Laws
    B. Project Specific Threshold Requirements
    (1) Housing Rehabilitation Project Thresholds
    (2) Land Acquisition to Support New Housing Project Thresholds
    (3) New Housing Construction Project Thresholds
    (4) Homeownership Assistance Project Thresholds
    (5) Public Facilities and Improvements Project Thresholds
    (6) Economic Development Project Thresholds
    (7) Microenterprise Program Thresholds
VII. Rating Factors
    (1) Capacity of the Applicant
    (2) Need/Extent of the Problem
    (3) Soundness of Approach
    (4) Leveraging Resources
    (5) Comprehensiveness and Coordination
VIII. Application Submission Requirements
    A. Demographic Data
    B. Publication of Community Development Statement
    C. Application Submission
IX. Public Access, Documentation and Disclosure
X. Error and Appeals
Appendix A: Forms
Appendix B: Data to Determine Need for Factor 2 (for applicants for 
New Housing Construction, Housing Rehabilitation, Land Acquisition 
to Support New Housing, and Homeownership Assistance Projects)

I. Application Due Date, Addresses for Submission, Tips for Application 
Preparation, Application Kits, Further Information, and Technical 
Assistance

(A) Application Due Date

    Your completed application (one original and two copies) must be 
postmarked on or before 12 midnight, on September 22, 2003 and be 
received by the designated Area Office of Native American Programs 
(ONAP) on or within 15 days of the application due date. HUD will not 
accept any applications sent electronically or by facsimile.

(B) Mailing and Receipt Procedures

    The following procedures apply to the delivery and receipt of 
applications. 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] Applications may be shipped using DHL, Falcon Carrier, 
Federal Express (FedEx), United Parcel Services (UPS), or the United 
States Postal Service.
    [sbull] HUD strongly suggests applications submitted to HUD Field 
Offices be sent via the United States Postal Service, as access by 
other delivery services is not guaranteed;
    [sbull] 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] Proof of Timely Submission. In the case of a disputed 
submission for applications mailed by the United States Postal Service, 
the proof of timely submission to HUD field offices will be the 
Certificate of Mailing (USPS Form 3817). In the case of disputed 
submissions for applications submitted to HUD via DHL, Falcon Carrier, 
Federal Express (FedEx), or the United Parcel

[[Page 42191]]

Service, the 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, Federal Express 
(FedEx), or the United Parcel Service delivery services will not be 
accepted, as HUD cannot guarantee delivery due to its Security 
procedures.
    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.

(C) Addresses for Submitting Applications to the Appropriate Area ONAP

    Submit the original signed application and two copies to the 
appropriate Area ONAP for your jurisdiction. A list identifying each 
Area ONAP jurisdiction is provided below.

------------------------------------------------------------------------
If you are applying from this
 geographic location then...    Send your application to this Area ONAP:
------------------------------------------------------------------------
(Persons with hearing and/or speech challenges may access the telephone
 numbers listed on this page via TTY (text telephone) by calling the
 Federal Relay Service at 1-800-877-8339 (this is a toll-free number)
 
All States East of the         Eastern/Woodlands Office of Native
 Mississippi River, Plus Iowa   American Programs, Grants Management
 and Minnesota.                 Division, 77 West Jackson Blvd., Room
                                2400, Chicago, IL 60604-3507, Telephone:
                                (312) 886-4532, Ext. 2815.
Louisiana, Kansas, Oklahoma,   Southern Plains Office of Native American
 and Texas, except West Texas.  Programs, Grants Management Division,
                                500 W. Main Street, Suite 400, Oklahoma
                                City, OK 73102-3202, Telephone: (405)
                                553-7525.
Colorado, Montana, Nebraska,   Northern Plains Office of Native American
 North Dakota, South Dakota,    Programs, Grants Management Division,
 Utah, and Wyoming.             First Interstate Tower North, 633 17th
                                Street, Denver, CO 80202-3607,
                                Telephone: (303) 672-5465.
Arizona, California, and       Southwest Office of Native American
 Nevada.                        Programs, Grants Management Division,
                                One North Central Avenue, Suite 600,
                                Phoenix, AZ 85004-2361, Telephone: (602)
                                379-7220.
New Mexico and West Texas....  Southwest Office of Native American
                                Programs, Grants Management Division,
                                625 Silver Ave., SW Suite 300,
                                Albuquerque, NM 87102-3185, Telephone:
                                (505) 346-6923.
Idaho, Oregon, Washington....  Northwest Office of Native American
                                Programs, Grants Management Division,
                                Federal Office Building, 909 First
                                Avenue, Suite 300, Seattle, WA 98104-
                                1000, Telephone: (206) 220-5270.
Alaska.......................  Alaska Office of Native American
                                Programs, Grants Management Division,
                                949 E. 36th Avenue, Suite 401,
                                Anchorage, AK 99508-4399, (907) 271-
                                4603.
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(D) General Tips for ICDBG Application Preparation

    To expedite the review of your application and ensure that your 
application is given a thorough and complete review of all responses to 
each of the components of the selection criteria, please indicate on 
the first page of each project submission, the type of project(s) being 
proposed: Economic Development, Homeownership Assistance, Housing 
Rehabilitation, Land Acquisition to Support New Housing, 
Microenterprise Programs, New Housing Construction or Public Facilities 
& Improvements. This will help to ensure that the appropriate project 
specific thresholds and rating sub-factors will be applied.
    In addition, please use separate tabs for each rating factor and 
rating sub-factor. In order to be rated, make sure the response is 
beneath the appropriate heading. Keep the responses in the same order 
as the NOFA. Limit your narrative explanations to 200 words or less and 
provide the necessary data such as a market analysis, a pro forma, 
housing survey data, etc., that support the response. Include all 
relevant material to a response under the same tab. Only include 
documentation that will clearly and concisely support your response to 
the rating criteria.
    HUD suggests that you do a preliminary rating for your project, 
providing a score according to the NOFA point system. This will show 
you how reviewers might score your project. Also, it will show you 
where the strengths and weaknesses of the application are located. This 
will help you determine where improvements can be made to your 
application prior to its submission.

(E) Application Kits

    For an application kit and any supplemental material please call 
the appropriate Area ONAP for your jurisdiction as listed above. An 
application kit also will be available on the Internet through the HUD 
Web site at http://www.hud.gov/grants. When requesting an application 
kit, please refer to ICDBG and provide your name, address (including 
zip code), and telephone number (including area code).
    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 hard copy or on 
HUD's Web site and the Federal Register publication of the NOFA, the 
information published in the NOFA Federal Register publication 
prevails.

(F) Further Information

    You should direct general program questions to the Area ONAP 
serving your area or to Jackie Kruszek, Denver Program Office of Native 
American Programs, Office of Public and Indian Housing, Department of 
Housing and Urban Development, 1999 Broadway, Suite 3390, Denver, CO 
80202; telephone (800) 561-5913. Persons with speech or hearing 
impairments may call HUD's TTY number (202) 708-0770, or 1-800-877-8399 
(the Federal Information Relay Service TTY). Other than the ``800'' 
number, these numbers are not toll-free.

(G) Technical Assistance

    Before the application due date, HUD staff will be available to 
provide you with general guidance and technical assistance about this 
NOFA. 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.

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(H) Changes From 2002 NOFA

    ICDBG Removed from Super Notice of Funding Availability 
(SuperNOFA). Based on requests from tribal leaders, the Department has 
determined that Indian tribes would best be served by the publication 
of the ICDBG NOFA separate from the SuperNOFA. The FY 2003 ICDBG NOFA 
is not part of or subject to the requirements published in HUD's 
SuperNOFA.
    Grant Ceilings. The grant ceilings for tribes within the 
jurisdictions of the following Area Offices of Native American Programs 
(ONAP) have increased as follows: Southern Plains ONAP--$800,000; 
Northern Plains ONAP--$900,000, Southwest ONAP--grant ceilings for all 
population areas have increased as follows:

------------------------------------------------------------------------
                                                              New Grant
                        Populations                            Ceiling
------------------------------------------------------------------------
50,000+....................................................   $5,500,000
10,501-50,000..............................................    2,750,000
7,501-10,500...............................................    2,200,000
6,001-7,500................................................    1,100,000
1,501-6,000................................................      825,000
0-1,500....................................................      605,000
------------------------------------------------------------------------

    Housing Rehabilitation Grant Limits. The rehabilitation grant limit 
(per unit) for tribes within the jurisdiction of the Northern Plains 
ONAP has increased to $45,000.
    Changes to the Application Forms. The following application forms 
are new or have been revised and/or consolidated.
    [sbull] Standard Form for Application for Federal Assistance (SF-
424) has been revised.
    [sbull] Federal Assistance Funding Matrix and Certifications (HUD-
424M) is no longer required. The required information and certification 
has been incorporated into the new HUD-424.
    Requirements. The following new requirements have been added to the 
NOFA:
    Delinquent Federal Debts, Name Check Review, Salary Limitation for 
Consultants, Procurement of Recovered Materials, Executive Order 13202, 
Executive Order 13279, Executive Order 13166, Conducting Business in 
Accordance with Core Values and Ethical Standards; and Pre-Award 
Accounting System Surveys.
    Rating Factors.
    [sbull] Rating Factor 1 has been revised to stress applicant 
performance, outcomes, program evaluation, and timeliness. Points for 
subfactors have been broken out.
    [sbull] Rating Factor 2 has been revised to change how Need is 
determined for New Housing Construction, Housing Rehabilitation, Land 
Acquisition to Support New Housing, and Homeownership Assistance 
Projects.
    [sbull] Rating Factor 3 has been revised to incorporate selected 
HUD Policy Priorities, which are worth 1 point.
    [sbull] Rating Factor 3 has been revised to reinstate requirements 
for economic development projects for the submission of information 
regarding the separation of government functions and business operating 
decisions.
    [sbull] Rating Factor 4 has been revised to incorporate language 
regarding conditional commitments.
    [sbull] Point ranges are revised as necessary as the result of 
these changes.
    Imminent Threat Increase. The amount of funds allocated for 
Imminent Threat grants for FY 2003 has increased to $4,000,000.
    Other Changes. Other changes have been made to clarify NOFA 
requirements. Applicants are advised to carefully read the entire NOFA 
and not rely solely on this list of NOFA changes.

(I) Streamlining Grants

    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 grant information and applications.
    Over the last two years, HUD has used its Web site to provide 
information to the public about HUD's participation in Interagency 
efforts to streamline grant 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 grant application and reporting requirements please go 
to http://www.hud.gov/offices/adm/grants/pl-106107/pl106-107.cfm.

(J) 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 the federal agencies to develop a common electronic grant 
application and reporting system. This system will be ``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 funding available from the federal 
government and how to apply for funding. It also is an effort to 
develop common application requirements, further streamlining the 
grants process, making it easier for 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 ownership of 
the federal agency sponsoring the program funding opportunity. The 
information regarding eGrants is provided for information. No response 
regarding this upcoming initiative is required in your fiscal year 2003 
application. To find out more about the eGrants vision and 
implementation schedule, please visit HUD's eGrants Web site at http://www.hud.gov/offices/adm/grants/egrants/egrants.cfm.

(K) Paperwork Reduction Act Statement.

    The information collection requirements in this NOFA have been 
approved by the Office of Management and Budget (OMB) under OMB number 
2577-0191 (5/31/2003) under the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501-3520). 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.

(L) 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:

[[Page 42193]]

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 Grassroots Faith-Based and Other Community-
Based Organizations
    [sbull] Reduce regulatory barriers to participation by grassroots 
faith-based and other community-based organizations.
    [sbull] Conduct outreach to inform potential partners of HUD 
opportunities.
    [sbull] Expand technical assistance resources deployed to 
grassroots faith-based and other community-based organizations.
    [sbull] Encourage partnerships between grassroots 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 these policy priorities will 
receive higher rating scores than applicants who do not address these 
HUD priorities. Section VII, Rating Factors, will specify which 
priorities relate to the ICDBG 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; 
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

[[Page 42194]]

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://concretechange.home.mindspring.com/index.htm.
    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.ncsu.edu/www/ncsu/design/sod5/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 nonprofit 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 
NOFA and the 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 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 grassroots 
faith-based and other community-based organizations in their workplans. 
Applicants, their partners, and participants must review the ICDBG NOFA 
or Program Section of the 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 NOFA.
    (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/

[[Page 42195]]

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 
and the Department of Energy 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. 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 
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 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.

(M) Catalog of Federal Domestic Assistance Number

    The Catalog of Federal Assistance (CFDA) Number for ICDBG 14.862. 
The CFDA is a governmentwide compendium of Federal programs, projects, 
services, and activities that provide assistance or benefits to the 
public.

II. Amount Allocated

(A) Available Funds

    The FY 2003 appropriation for the ICDBG Program is $70,538,850.

(B) General

    Title I of the Housing and Community Development Act of 1974, which 
authorizes Community Development Block Grants, requires that grants for 
Indian tribes be awarded on a competitive basis in accordance with 
selection criteria contained in a regulation promulgated by the 
Secretary after notice and public comment. All grant funds awarded in 
accordance with this NOFA are subject to the requirements of 24 CFR 
part 1003. Applicants within an Area ONAP's geographic jurisdiction 
compete only against each other for that Area ONAP's allocation of 
funds.

(C) Allocations to Area ONAPs

    The requirements for allocating funds to Area ONAPs responsible for 
program administration are found at 24 CFR 1003.101. Following these 
requirements, based on an appropriation of $70,538,500 less $4,000,000 
retained to fund Imminent Threat Grants, the allocations for FY 2003 
are as follows:

 
Eastern/Woodland...........................................   $7,736,723
Southern Plains............................................   14,743,223
Northern Plains............................................    9,750,568
Southwest..................................................   25,698,706
Northwest..................................................    3,392,614
Alaska.....................................................    7,216,666
                                                            ------------
    Total..................................................  $68,538,500
------------------------------------------------------------------------

(D) Imminent Threat Grants

    The criteria for grants to alleviate or remove imminent threats to 
health or safety that require an immediate solution are described at 24 
CFR part 1003, subpart E. In order to satisfy these criteria, the 
problem to be addressed must be such that an emergency situation exists 
or would exist if the problem were not addressed. In addition, you may 
use funds only to address imminent threats that are not of a recurring 
nature and that represent a unique and unusual circumstance that 
impacts an entire service area. In accordance with the provisions of 24 
CFR part 1003, subpart E, we will retain $4,000,000 to meet the funding 
needs of imminent threat applications submitted to any of the Area 
ONAPs. The grant ceiling for imminent threat applications for FY 2003 
is $350,000. This ceiling has been established pursuant to the 
provisions of 24 CFR 1003.400(c).
    You do not have to submit a request for assistance under the 
imminent threat set-aside (24 CFR part 1003, subpart E) by the deadline 
established in this NOFA. The deadline applies only to applications 
submitted for assistance under 24 CFR part 1003, subpart D, single 
purpose grants.
    If, in response to a request for assistance, an Area ONAP issues 
you a letter to proceed under the authority of 24 CFR 1003.401(a), then 
your application must be submitted to and approved by the Area ONAP 
before a grant agreement may be executed. This application must 
contain: HUD Form 424, Application for Federal Assistance; a brief 
description of the proposed project; Form HUD-4123, Cost Summary; Form 
HUD-4125, Implementation Schedule; Form HUD-2880, Applicant/Recipient 
Disclosure/Update Report; and, Form HUD-50070, Certification for a 
Drug-Free Workplace.

III. Program Description; Eligible Applicants, Eligible Activities; and 
Definitions

(A) Program Description

    The purpose of the ICDBG Program is the development of viable 
Indian and Alaska Native communities, including the creation of decent 
housing, suitable living environments, and economic opportunities 
primarily for persons with low- and moderate-incomes.

[[Page 42196]]

(B) Eligible Applicants

    To apply for funding you must be eligible as an Indian Tribe (or as 
a tribal organization), as required by 24 CFR 1003.5, by the 
application submission date.
    Tribal organizations are permitted to submit applications under 24 
CFR 1003.5(b) on behalf of eligible tribes when one or more eligible 
tribe(s) authorize the organization to do so under concurring 
resolutions. As is stated in this regulatory section, the tribal 
organization must itself be eligible under Title I of the Indian Self-
Determination and Education Assistance Act. The Bureau of Indian 
Affairs or the Indian Health Service, as appropriate, must make a 
determination of such eligibility. This determination must be provided 
to the Area ONAP by the application submission date.
    If a tribe or tribal organization claims that it is a successor to 
an eligible entity, the Area ONAP must review the documentation to 
determine whether it is in fact the successor entity.
    Due to the unique structure of tribal entities eligible to submit 
ICDBG applications in Alaska, and as only one ICDBG application may be 
submitted for each area within the jurisdiction of an entity eligible 
under 24 CFR 1003.5, a tribal organization that submits an application 
for activities in the jurisdiction of one or more eligible tribes or 
villages must include a concurring resolution from each such tribe or 
village authorizing the submittal of the application. Each such 
resolution must also indicate that the tribe or village does not itself 
intend to submit an ICDBG application for that funding round. The 
hierarchy for funding priority continues to be the IRA Council, the 
Traditional Village Council, the ANCSA Village Corporation, and the 
ANCSA Regional Corporation.
    On July 12, 2002 (67 FR 46328), the Bureau of Indian Affairs 
published a Federal Register notice entitled ``Indian Entities 
Recognized and Eligible To Receive Services From the United States 
Bureau of Indian Affairs.'' This notice provides a listing of Indian 
Tribal Entities in Alaska found to be Indian Tribes as the term is 
defined and used in 25 CFR part 83. Additionally, pursuant to title I 
of the Indian Self-Determination and Education Assistance Act, ANCSA 
Village Corporations and Regional Corporations are also considered 
tribes and therefore eligible applicants for the ICDBG program.
    Any questions regarding eligibility determinations and related 
documentation requirements for entities in Alaska should be referred to 
the Alaska Area ONAP prior to the application submission date. (See 24 
CFR 1003.5 for a complete description of eligible applicants.)

(C) Eligible Activities

    Activities that are eligible for ICDBG funding are identified at 24 
CFR part 1003, subpart C. Please note that although this subpart has 
not yet been revised to include the restrictions on activity 
eligibility that were added to section 105 of the CDBG statute by 
section 588 of the Quality Housing and Work Responsibility Act of 1998, 
these restrictions apply. Specifically, ICDBG funds may not be used to 
assist directly in the relocation of any industrial or commercial 
plant, facility, or operation, from one area to another, if the 
relocation is likely to result in a significant loss of employment in 
the labor market area from which the relocation occurs. The rating 
factors included under Section VII specify many of the activities 
listed as eligible under part 1003, subpart C. Those listed include new 
housing construction (in certain circumstances as described in Section 
VII, housing rehabilitation, land acquisition to support new housing, 
homeownership assistance, public facilities and improvements, economic 
development, and microenterprise programs. However, the following 
eligible activities not clearly identified by the rating factors may be 
proposed and rated as described below. During the past few years, many 
tribes have experienced high incidences of mold growth in tribal homes 
and buildings. Renovation of affected buildings is eligible under 
housing rehabilitation or public facility improvement projects.
    For a complete description of eligible activities, please refer to 
24 CFR part 1003, subpart C.
    (1) Acquisition of Property. This activity can be proposed as Land 
to Support New Housing or as part of New Housing Construction, Public 
Facilities and Improvements or Economic Development depending on the 
purpose of the land acquisition to support new construction.
    (2) Assistance to Institutions of Higher Learning. If such entities 
have the capacity, they can help the ICDBG grantees to implement 
eligible projects.
    (3) Assistance to Community Based Development Organizations 
(CBDOs). Grantees may provide assistance to these organizations to 
undertake activities related to neighborhood revitalization, community 
economic development or energy conservation.
    (4) Clearance, Demolition. These activities can be proposed as part 
of Housing Rehabilitation, New Housing Construction, Public Facilities 
and Improvements or Land to Support New Housing.
    (5) Code Enforcement. This activity can be proposed as Housing 
Rehabilitation. The activity must comply with the requirements at 24 
CFR 1003.202. Sec.  1003.201 (d) states ``Demolition of HUD-assisted 
housing units may be undertaken only with the prior approval of HUD.''
    (6) Comprehensive Planning. This activity is eligible, and can be 
proposed, as part of any otherwise eligible project to the extent 
allowed by the 20 percent cap on the grant for planning/administration.
    (7) Energy Efficiency. Associated activities can be proposed under 
Housing Rehabilitation or Public Facilities and Improvements depending 
upon the type of energy efficiency activity.
    (8) Lead Based Paint Abatement and Evaluation. These activities can 
be proposed under Housing Rehabilitation.
    (9) Non-Federal Share. ICDBG funds can be used as a match for any 
non-ICDBG funding to the extent allowed by such funding and the 
activity is eligible under 24 CFR part 1003, Subpart C.
    (10) Privately and Publicly Owned Commercial or Industrial 
Buildings (real property improvements). These activities can be 
proposed under Economic Development. Privately owned commercial 
rehabilitation is subject to the requirements at 24 CFR 1003.202.
    (11) Privately Owned Utilities. Assistance to privately owned 
utilities can be proposed under Public Facilities and Improvements.
    (12) Removal of Architectural Barriers. This includes removing 
barriers that restrict mobility and access for elderly and persons with 
disabilities. This activity can be proposed under Housing 
Rehabilitation or Public Facilities and Improvements depending upon the 
type of structure where the barrier will be removed.

D. Definitions.

    (1) Adopt. To approve by formal tribal resolution.
    (2) Assure. To comply with a specific NOFA requirement. As an 
applicant, you must state your compliance or your intent to comply in 
your application.
    (3) Document. To supply supporting written information and/or data 
in the application that satisfies the NOFA requirement. Documentation 
should clearly and concisely support your response to the rating 
factor.

[[Page 42197]]

    (4) Entity Other than Tribe. A distinction is made between the 
requirements for point award under Rating Factor 3 if a tribe or an 
entity other than the tribe will assume maintenance and related 
responsibilities for projects other than economic development and land 
acquisition to support new housing. Entities other than the tribe must 
have the following characteristics: must be legally distinct from the 
tribal government; their assets and liabilities cannot be considered to 
be assets and liabilities of the tribal government; claims against such 
entities cannot be made against the tribal government; and, must have 
governing boards, boards of directors, or groups or individuals similar 
in function and responsibility to such boards which are separate from 
the tribe's general council, tribal council, or business council, as 
applicable.
    (5) Homeownership Assistance Programs. Tribes may apply for 
assistance to provide direct homeownership assistance to low- and 
moderate-income households to: subsidize interest rates and mortgage 
principal amounts for low- and moderate-income homebuyers; finance the 
acquisition by low- and moderate-income homebuyers of housing that is 
occupied by the homebuyers; acquire guarantees for mortgage financing 
obtained by low- and moderate-income homebuyers from private lenders 
(except that ICDBG funds may not be used to guarantee such mortgage 
financing directly, and grantees may not provide such guarantees 
directly); provide up to 50 percent of any down payment required from a 
low- and moderate-income homebuyer; or, pay reasonable closing costs 
(normally associated with the purchase of a home) incurred by a low- or 
moderate-income homebuyer.
    (6) Leveraged Resources. Leveraged resources are resources that you 
will use in conjunction with ICDBG funds to achieve the objectives of 
the project. Leveraged resources include, but are not limited to: 
tribal trust funds; loans from individuals or organizations; state or 
federal loans or guarantees; other grants; and non-cash contributions 
and donated services. (See Rating Factor 4 of this NOFA for 
documentation requirements for point award for leveraged resources.)
    (7) Microenterprise Programs. Tribes may apply for assistance to 
operate programs to fund the development, expansion and stabilization 
of microenterprises. Microenterprises are defined as commercial 
entities with five or fewer employees, including the owner. 
Microenterprise program activities may entail the following assistance 
to eligible businesses: providing credit, including, but not limited 
to, grants, loans, loan guarantees, and other forms of financial 
support for the establishment, stabilization, and expansion of 
microenterprises; providing technical assistance, advice, and business 
support services to owners of microenterprises and persons developing 
microenterprises; and providing general support, including, but not 
limited to, peer support programs, counseling, child care, 
transportation, and other similar services to owners of 
microenterprises and persons developing microenterprises.
    (8) Operations and Maintenance (O&M) for Public Facilities and 
Improvements. While various items of cost will vary in importance and 
significance depending on the type of facility proposed, there are 
items of expense related to the operation of the physical plant which 
must be addressed in a O&M plan (tribe assumes responsibility) or in a 
letter of commitment (entity other than tribe will assume these 
responsibilities). These items include daily or other periodic 
maintenance activities; repairs such as replacing broken windows; 
capital improvements or replacement reserves for repairs such as 
replacing the roof; fire and liability insurance (may not be applicable 
to most types of infrastructure projects such as water and sewer 
lines); and, security (may not be applicable to many types of 
infrastructure projects such as roads).
    Please note that while it is possible that the service provider 
may, in its agreement with a tribe, commit itself to cover certain or 
all facility O&M costs, as defined, these O&M costs do not include the 
program service provision costs related to the delivery of services 
(social, health, recreational, educational or other) which may be 
provided in a facility.
    (9) Project Cost. The total cost to implement the project. Project 
cost includes both ICDBG and non-ICDBG funds and resources.
    (10) Standard Housing/Standard Condition. Housing that meets the 
housing quality standards (HQS) adopted by the applicant. The HQS 
adopted by the applicant must be at least as stringent as the Section 8 
HQS contained in 24 CFR 982.401 (Section 8 Tenant-Based Assistance: 
Housing Choice Voucher Program) unless the ONAPs approve less stringent 
standards based on a determination that local conditions make the use 
of Section 8 HQS infeasible. You may submit, before the application due 
date, a request for the approval of standards less stringent than 
Section 8 HQS. If you submit the request with your application, you 
should not assume automatic approval by the ONAPs. The adopted 
standards must provide for a safe house, in physically sound condition 
with all systems performing their intended design functions; a livable 
home environment and an energy efficient building and systems that 
incorporate energy conservation measures; and, an adequate space and 
privacy for all intended household members.
    (11) Tribe. Please note: when used in this NOFA the word ``tribe'' 
means an Indian tribe, band, group or nation, including Alaska Indians, 
Aleuts, Eskimos, Alaska Native Villages, ANCSA Village Corporations, 
and ANCSA Regional Corporations.

IV. Requirements

    Applicants must comply with the following requirements:

(A) Requirements Applicable to All Projects

    (1) Accessible Technology.
    The Rehabilitation Act Amendments of 1998 apply to all electronic 
information technology (EIT) used by a grantee for transmitting, 
receiving, using, or storing information to carry out the 
responsibilities of any federal grant awarded. The Act's coverage 
includes, but is not limited to, computers (hardware, software, word-
processing, e-mail, 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, they may provide an alternative means to allow the 
individual to use the information and data. However, no grantee will be 
required to provide information services to a person with disabilities 
at any location other than the location at which the information 
services is generally provided.
    (2) 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

[[Page 42198]]

funds. 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.
    (3) 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.
    (4) 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) Require the removal of any key individual from 
association with management of and/or implementation of the award; and 
(b) make appropriate provisions or revisions with respect to the method 
of payment and/or financial reporting requirements.
    (5) 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.
    (6) Procurement of Recovered Materials. State agencies and agencies 
of a political subdivision of a state that are using assistance under 
this NOFA 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.
    (7) 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, as amended, ``Preservation 
of Open Competition and Government Neutrality Towards Government 
Contractors' Labor Relations on Federal and Federally Funded 
Construction Projects,'' it is a condition of receipt of assistance 
under this NOFA that neither you nor any subrecipient or program 
beneficiary receiving funds under an award granted under this NOFA, 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.
    (8) 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 grassroots faith-based and other community-based 
organizations in HUD program implementation. Applicants are urged to 
complete and return the ``Survey Ensuring Equal Opportunity for 
Applicants,'' included with other standard forms in Appendix A. Your 
participation in the survey will help HUD measure its success providing 
equal access to its programs for all applicants.
    (9) 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.
    (10) Conducting Business in Accordance With Core Values and Ethical 
Standards. Entities subject to 24 CFR Part 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 section 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 NOFA, you will be required, prior to 
entering into an agreement with HUD, to submit a copy of your code of 
conduct and describe

[[Page 42199]]

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.
    (11) Pre-Award Accounting System Surveys. HUD may arrange for a 
pre-award survey of the applicant's 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.
    (12) Grant Ceilings. The authority to establish grant ceilings is 
found at 24 CFR 1003.100(b)(1). Grant ceilings are established for FY 
2003 funding at the following levels:

------------------------------------------------------------------------
           Area ONAP                    Population            Ceiling
------------------------------------------------------------------------
Eastern/Woodlands..............  ALL....................        $500,000
Southern Plains................  ALL....................         800,000
Northern Plains................  ALL....................         900,000
Southwest......................  50,001+................       5,500,000
                                 10,501-50,000..........       2,750,000
                                 7,501-10,500...........       2,200,000
                                 6,001-7,500............       1,100,000
                                 1,501-6,000............         825,000
                                 0-1,500................         605,000
Northwest......................  ALL....................         500,000
Alaska.........................  ALL....................         500,000
------------------------------------------------------------------------

    For the Southwest Area ONAP jurisdiction, the population used to 
determine ceiling amounts is the Native American population that 
resides on a reservation or rancheria. Please contact that office 
before submitting your application if you are unsure of the population 
level to use to determine the ceiling amount for your tribe or if you 
believe that the level used for previous years needs to be revised or 
corrected. The Southwest ONAP must approve any corrections or revisions 
to Native American population data before you submit your application.
    (13) Environmental Requirements.
    As required by 24 CFR 1003.605, ICDBG grantees must perform 
environmental reviews of ICDBG activities in accordance with 24 CFR 
part 58. Grantees may not commit or expend any ICDBG or nonfederal 
funds on project activities (other than those listed in 24 CFR 58.34 or 
58.35(b)) until HUD has approved a Request for Release of Funds and 
environmental certification submitted by the grantee. The expenditure 
or commitment of ICDBG or nonfederal funds for such activities prior to 
HUD approval may result in the denial of assistance for the project or 
activities under consideration.
    (14) Indian Preference. HUD has determined that the ICDBG program 
is subject to section 7(b) of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450e(b)). The provisions and 
requirements for implementing this section are in 24 CFR 1003.510.
    (15) Anti-discrimination Provisions. Under the authority of section 
107(e)(2) of the CDBG statute, HUD waived the requirement that 
recipients comply with the anti-discrimination provisions in section 
109 of the CDBG statute with respect to race, color, and national 
origin. You must comply with the other prohibitions against 
discrimination in section 109 (HUD's regulations for section 109 are in 
24 CFR part 6) and with the Indian Civil Rights Act.
    (16) Conflict of Interest. In addition to the conflict of interest 
requirements with respect to procurement transactions found in 24 CFR 
85.36 and 84.42, as applicable, the provisions of 24 CFR 1003.606 apply 
to such activities as the provision of assistance by the recipient or 
sub-recipients to businesses, individuals, and other private entities 
under eligible activities that authorize such assistance.
    (17) Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). Section 3 requirements apply to the ICDBG Program, but as 
stated in 24 CFR 135.3(c), the procedures and requirements of 24 CFR 
part 135 apply to the maximum extent consistent with, but not in 
derogation of, compliance with Indian Preference.

(B) Requirements Applicable to Specific Projects

    (1) Low- and Moderate-Income Status for Rehabilitation Projects. 
All households that receive grant assistance under a housing 
rehabilitation project must be of low- and moderate-income status.
    (2) Housing Rehabilitation Cost Limits. Grant funds spent on 
rehabilitation per house must fall within the following limits for each 
Area ONAP jurisdiction:

(i) Eastern/Woodlands--$35,000
(ii) Southern Plains--20,000
(iii) Northern Plains--45,000
(iv) Southwest--40,000
(v) Northwest--40,000
(vi) Alaska--55,000

    (3) Commitment to Housing for Land Acquisition To Support New 
Housing Projects. For land acquisition to support new housing projects, 
your application must include evidence of a financial commitment and an 
ability to construct at least 25 percent of the housing units to be 
built on the land proposed for acquisition. This evidence must consist 
of one (or more) of the following: a firm or conditional commitment to 
construct (or to finance the construction of) the units; documentation 
that an approvable application for the construction of these units has 
been submitted to a funding source or entity; or, documentation that 
these units are specifically identified in the Indian Housing Plan 
(IHP), (one-Year Financial Resources Narrative; Table 2, Financial 
Resources, Part I., Line 1E; and Table 2, Financial Resources, Part II) 
submitted on or on behalf of the applicant as an affordable housing 
resource with a commensurate commitment of Indian Housing Block Grant 
(IHBG) (aka the Native American Housing Block Grant (NAHBG)) resources. 
If the IHP for the IHBG (aka NAHBG) Program year that coincides with 
the implementation of the ICDBG proposed project has not been 
submitted, you must provide an assurance that when submitted, the IHP 
will specifically reference the proposed project.
    (4) Health Care Facilities. If you propose a facility that would 
provide health care services funded by the Indian Health Service (IHS), 
you must

[[Page 42200]]

assure that the facility meets all applicable IHS facility 
requirements. We recognize that tribes that are contracting services 
from the IHS may establish other facility standards. These tribes must 
assure that these standards at least compare to nationally accepted 
minimum standards.

V. Application Selection Process

    You must meet all of the applicable threshold requirements of 
Section VI. Your application must meet all screening for acceptance 
requirements and all identified applicant and project specific 
thresholds. HUD will review each application and assign points in 
accordance with the selection factors described in this section. A 
maximum of 100 points may be awarded under Rating Factors 1 through 5. 
To be considered for funding, your application must receive a minimum 
of 15 points under rating factor 1 and an application score of 70 out 
of the possible total of 100.

(A) Screening for Acceptance

    The Area ONAP will screen applications for single purpose grants. 
The Area ONAP will reject an application that fails this screening and 
will return the application unrated. The Area ONAP will accept your 
application if it meets all the criteria listed below as items (1) 
through (6):
    (1) Your application is received or submitted in accordance with 
the requirements set forth under Address and Application and Submission 
Procedures in Section I of this NOFA;
    (2) You are eligible;
    (3) The proposed project is eligible;
    (4) Your application contains substantially all the components 
specified in Section VIII of this NOFA;
    (5) Your application shows that at least 70% of the grant funds are 
to be used for activities that benefit low- and moderate-income 
persons, in accordance with the requirements of 24 CFR 1003.208; and
    (6) Your application is for an amount that does not exceed the 
grant ceilings that are established by the NOFA in Section IV.B.

(B) Threshold Review

    The Area ONAP will review each application that passes the 
screening process to ensure that each applicant and each proposed 
project meets the applicant threshold requirements set forth in 24 CFR 
1003.301(a) and the project specific threshold requirements set forth 
in 24 CFR 1003.302, and in Section VI of this NOFA.

(C) Rating

    The Area ONAP will review and rate each project that meets the 
acceptance criteria and threshold requirements. The total points for 
all rating factors are 100. A maximum of 100 points may be awarded 
under Rating Factors 1 through 5. To be considered for funding, your 
application must receive a minimum of 15 points under rating factor 1 
and an application score of 70 out of the possible total of 100.

(D) Public Service Projects

    Because there is a statutory 15 percent cap on the amount of grant 
funds that may be used for public services activities, you may not 
receive a single purpose grant solely to fund public services 
activities. Your application, however, may contain a public services 
component for up to 15 percent of the total grant. This component may 
be unrelated to the other project(s) included in your application. If 
your application does not receive full funding, we will reduce the 
public services allocation proportionately so that it comprises no more 
than 15 percent of the total grant award. In making such reductions, 
the feasibility of the proposed project will be taken into 
consideration. If a proportionate reduction of the public services 
allocation renders such a project infeasible, the project will not be 
funded.

(E) Final Ranking

    All projects will be ranked against each other according to the 
point totals they receive, regardless of the type of project or 
component under which the points were awarded. Projects will be 
selected for funding based on the final ranking to the extent that 
funds are available. The Area ONAP will determine individual grant 
amounts in a manner consistent with the considerations set forth in 24 
CFR 1003.100(b)(2). Specifically, the Area ONAP may approve a grant 
amount less than the amount requested. In doing so, the Area ONAP may 
take into account the size of the applicant, the level of demand, the 
scale of the activity proposed relative to need and operational 
capacity, the number of persons to be served, the amount of funds 
required to achieve project objectives, and the reasonableness of the 
project costs. If the Area ONAP determines that there are not enough 
funds available to fund a project as proposed by the applicant, it may 
decline to fund that project and may fund the next highest-ranking 
project or projects for which adequate funds are available. The Area 
ONAP may select, in rank order, additional projects for funding if one 
of the higher-ranking projects is not funded or if additional funds 
become available.

(F) Tiebreakers

    When rating results in a tie among projects and insufficient 
resources remain to fund all tied projects, the Area ONAP will approve 
projects that can be fully funded over those that cannot be fully 
funded. When that does not resolve the tie, the Area ONAP will use the 
following factors in the order listed to resolve the tie:
    (1) The applicant that has not received an ICDBG over the longest 
period of time.
    (2) The applicant with the fewest active ICDBGs.
    (3) The project that would benefit the highest percentage of low- 
and moderate-income persons.

(G) Technical Deficiencies and Pre-award Requirements

    Technical Deficiencies: If there are technical deficiencies in 
successful applications, you must satisfactorily address these 
deficiencies before HUD can make a grant award. 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 signed by an 
authorized official. In each case, 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 technical deficiency is not corrected within 
this time period, HUD will reject

[[Page 42201]]

the application as incomplete and it will not be considered for 
funding.
    Pre-award Requirements. Successful applicants may be required to 
provide supporting documentation concerning the management, 
maintenance, operation, or financing of proposed projects before a 
grant agreement can be executed. Such documentation may include 
additional specifications on the scope, magnitude, timing or method of 
implementing the project; or information to verify the commitment of 
other resources required to complete, operate, or maintain the proposed 
project. The Area ONAP will normally give you no less than thirty (30) 
calendar days to respond to these requirements. If you do not respond 
within the prescribed time period or you make an insufficient response, 
the Area ONAP may determine that you have not met the requirements and 
may withdraw the grant offer.
    You may not substitute new projects for those originally proposed 
in your application and any new information will not affect your 
project's rating and ranking. The Area ONAP will award, in accordance 
with the provisions of this NOFA, grant amounts that had been allocated 
for applicants unable to meet pre-award requirements.

VI. Threshold Requirements

(A) General Threshold Requirements

(1) Outstanding ICDBG Obligation
    According to 24 CFR 1003.301(a), an applicant who has an 
outstanding ICDBG obligation to HUD that is in arrears, or one that has 
not agreed to a repayment schedule will be disqualified from the 
competition.
(2) Compliance With Fair Housing and Civil Rights Laws
    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). If you are a 
federally recognized Indian tribe, you must comply with the non-
discrimination provisions enumerated at 24 CFR 1003.601, as applicable.
    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 under Title 
VI, Section 504, or Section 109, and if the charge, lawsuit, or letter 
of findings has not been resolved to HUD's satisfaction before the 
application deadline stated in this NOFA, you may not apply for 
assistance under this NOFA. HUD will not rate and rank your 
application. HUD's decision regarding whether a charge, lawsuit, or a 
letter of findings has been satisfactorily resolved will be based upon 
whether appropriate actions have been taken to address allegations of 
on-going discrimination in the policies or practices involved in the 
charge, lawsuit, or letter of findings.
    a. A voluntary compliance agreement signed by all parties in 
response to the letter of findings;
    b. A HUD-approved conciliation agreement signed by all parties;
    c. A consent order or consent decree; or
    d. A judicial ruling or a HUD Administrative Law Judge's decision 
that exonerates the respondent of any allegations of discrimination.

Project Specific Threshold Requirements

    Please indicate on the first page of each project submission, the 
type of project(s) (Economic Development, Homeownership Assistance, 
Housing Rehabilitation, Land Acquisition to Support New Housing, 
Microenterprise Programs, New Housing Construction or Public Facilities 
& Improvements) that is (are) being proposed. This will help to ensure 
that the appropriate project specific thresholds and rating sub-factor 
will be applied.
    In addition, for definitions of ``assure'' and ``document'', please 
refer to Section III d), Definitions
    (1) Housing Rehabilitation Project Thresholds.
    (a) In accordance with 24 CFR 1003.302(a), for housing 
rehabilitation projects, you must adopt rehabilitation standards and 
rehabilitation policies before you submit an application. You must 
submit with the application these standards and policies, and evidence 
the policies/standards have been adopted in accordance with tribal law/
practice.
    (b) In accordance with 24 CFR 1003.302(a), you must also provide an 
assurance that project funds will be used to rehabilitate HUD-assisted 
houses only when the tenant/homebuyer's payments are current or the 
tenant/homebuyer is current in a repayment agreement except in an 
emergency situation. The ONAP Administrator on a case-by-case basis may 
approve exceptions to this requirement.
    (2) Land Acquisition to Support New Housing Project Thresholds.
    No project specific thresholds.
    (3) New Housing Construction Project Thresholds.
    (a) In accordance with 24 CFR 1003.302, new housing construction 
can only be implemented when necessary as a last resort pursuant to 24 
CFR Part 42 or through a Community Based Development Organization 
(CBDO). Eligible CBDOs are described in 24 CFR 1003.204(c). You must 
provide documentation establishing that the entity implementing your 
new housing construction project qualifies as a CBDO.
    (b) In accordance with 24 CFR 1003.302, you must also submit with 
your application a current tribal resolution adopting and identifying 
construction standards. The construction standards may be a tribal 
building code or a nationally recognized model code. If it is a tribal 
code, it must regulate all of the areas and sub-areas identified in 24 
CFR 200.925(b). If the code is recognized nationally, it must be the 
latest edition of one of the codes incorporated by reference in 24 CFR 
200.925(c).
    (c) In accordance with 24 CFR 1003.302, you must also include in 
your application documentation supporting the following:
    (i) All households to be assisted under a new housing construction 
project must be of low-or moderate-income status;
    (ii) No other housing is available in the immediate reservation 
area that is suitable for the households to be assisted;
    (iii) No other funding sources including an IHBG (aka NAHBG) can 
meet the needs of the household(s) to be served; and
    (iv) The house occupied by the household to be assisted is not in 
standard condition and rehabilitation is not economically feasible, or 
the household is currently in an overcrowded house (more than one 
household per house), or the household to be assisted has no current 
residence.
    (4) Homeownership Assistance Project Thresholds.
    No project specific thresholds.
    (5) Public Facilities and Improvements Project Thresholds.
    No project specific thresholds.
    (6) Economic Development Project Thresholds.
    In accordance with 24 CFR 1003.302, for economic development 
assistance projects, you must provide a financial analysis. The 
financial analysis must demonstrate that the project is financially 
feasible and the project has

[[Page 42202]]

a reasonable chance of success. The analysis must also demonstrate the 
public benefit resulting from the ICDBG assistance. The more funds you 
request, the greater public benefit you must demonstrate. The analysis 
must also establish that to the extent practicable, reasonable 
financial support will be committed from non-federal sources prior to 
disbursement of federal funds; any grant amount provided will not 
substantially reduce the amount of non-federal financial support for 
the activity; not more than a reasonable rate of return on investment 
is provided to the owner; and that grant funds used for the project 
will be disbursed on a pro-rata basis with amounts from other sources.
    (7) Microenterprise Program Thresholds.
    No project specific threshold.

VII. Rating Factors

    The factors for rating and ranking applications and the points for 
each factor are provided below. A maximum of 100 points may be awarded 
under Rating Factors 1 through 5. To be considered for funding, your 
application must receive a minimum of 15 points under rating factor 1 
and an application score of 70 out of the possible total of 100, the 
maximum any project can receive. The following summarizes the points 
assigned to each rating factor and each rating sub-factor and lists 
which rating sub-factors apply to which project types. Please use this 
table to ensure you are addressing the appropriate rating sub-factor 
for your project.

----------------------------------------------------------------------------------------------------------------
        Rating factor               Rating sub-factor                  Points                  Project type
----------------------------------------------------------------------------------------------------------------
1...........................  Total.......................  30..........................  Minimum of 15 Points
                                                                                           Required.
                              (1)(a)......................  10..........................  All Project Types.
                              (1)(b)......................  5 or 7*.....................  All Project Types.
                              (1)(c)......................  3 or 8*.....................  All Project Types.
                              (1)(d)......................  2 or 5*.....................  All Project Types.
                              (2)(a)......................  2 or 0*.....................  All Project Types.
                              (2)(b)......................  2 or 0*.....................  All Project Types.
                              (2)(c)......................  2 or 0*.....................  All Project Types.
                              (2)(d)......................  2 or 0*.....................  All Project Types.
                              (2)(e)......................  2 or 0*.....................  All Project Types.
2...........................  Total.......................  20..........................
                              1...........................  5...........................  All Project Types.
                              (2)(a)......................  15..........................  Public Facilities and
                                                                                           Improvements and
                                                                                           Economic Development
                                                                                           Projects.
                              (2)(b)......................  15..........................  New Housing
                                                                                           Construction, Housing
                                                                                           Rehabilitation, Land
                                                                                           Acquisition to
                                                                                           Support New Housing,
                                                                                           and Homeownership
                                                                                           Assistance Projects.
                              (2)(c)......................  15..........................  Microenterprise
                                                                                           Programs.
3...........................  Total.......................  35..........................
                              (1).........................  14..........................  All Project Types.
                              (2).........................  5...........................  All Project Types.
                              (3).........................  1...........................  By Project Type.
                              (4)(a)......................  15..........................  Public Facilities and
                                                                                           Improvements.
                              (4)(b)......................  15..........................  New Housing
                                                                                           Construction, Housing
                                                                                           Rehabilitation, and
                                                                                           Homeownership
                                                                                           Assistance Projects.
                              (4)(c)......................  15..........................  Economic Development.
                              (4)(d)......................  15..........................  Microenterprise
                                                                                           Programs.
                              (4)(e)......................  15..........................  Land Acquisition to
                                                                                           Support New Housing
4...........................  Total.......................  10..........................  All Project Types.
5...........................  Total.......................  5...........................  All Project Types
      Total Possible........  ............................  100.........................  Minimum of 70 Points
                                                                                           Required.
----------------------------------------------------------------------------------------------------------------
* The first number listed indicates the maximum number of points available to current ICDBG grantees under this
  sub-factor. The second number indicates the maximum number of points available to new applicants.

Rating Factor 1: Capacity of the Applicant (30 Points)

    This factor addresses the extent to which you have the 
organizational resources necessary to successfully implement the 
proposed activities in accordance with your implementation schedule. If 
applicable, past performance in administering previous ICDBG grants 
will be taken into consideration. Please specifically address the 
existence or availability of these resources for the specific type of 
activity for which you are applying. You must receive a minimum of 15 
points under this factor for your proposed activity to be eligible for 
funding. HUD will not rate any projects further that do not receive a 
minimum of 15 points under this factor. Please note: If your 
application is funded, you will be required to submit an annual status 
and evaluation report which will describe the status of completed 
activities and any remaining work to be done. The implementation 
schedule you submit for this factor will also be measured against 
actual progress if you are funded.
    (1) (20 points for current ICDBG grantees) (30 points for new 
applicants) Managerial, Technical, and Administrative Capability.
    Your application must include documentation demonstrating that you 
possess or can obtain managerial, technical, and/or administrative 
capability necessary to carry out the proposed project. Your 
application must address who will administer the project and how you 
plan to handle the technical aspects of executing the project in 
accordance with your implementation schedule.
    (a) (10 points) Managerial and Technical Staff.
    The extent to which your application describes the roles/
responsibilities and the knowledge/experience of your overall proposed 
project director and staff, including the day-to-day program manager, 
consultants and contractors in planning, managing and implementing 
projects in accordance with the implementation schedule 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

[[Page 42203]]

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.
    (10 Points) The applicant has adequately described the roles/
responsibilities and the knowledge/experience of its overall project 
director and staff, including the day-to-day program manager, 
consultants and contractors in planning, managing and implementing 
projects for which funding is being requested. Staff experience as 
described in the application is recent (within 5 years), relevant 
(pertains to the specific activities being proposed) and successful 
(has produced specific accomplishments).
    (5 Points) The applicant has adequately described the roles/
responsibilities and the knowledge/experience of its overall project 
director and staff, including the day-to-day program manager, 
consultants and contractors in planning, managing and implementing 
projects for which funding is being requested. However, one of the 
following applies: staff experience as described in the application is 
not recent (not within 5 years), is not relevant (does not pertain to 
the specific activities being proposed), or is not successful (did not 
produce specific accomplishments).
    (0 Points) The applicant has not adequately described the roles/
responsibilities and the knowledge/experience of its overall project 
director and staff, including the day-to-day program manager, 
consultants and contractors in planning, managing and implementing 
projects for which funding is being requested or more than one of the 
following applies: staff experience as described in the application is 
not recent (not within 5 years), is not relevant (does not pertain to 
the specific activity being proposed), or is not successful (did not 
produce specific accomplishments).
    (b) (5 points for current ICDBG grantees) (7 points for new 
applicants) Project Implementation Plan and Program Evaluation.
    The extent to which your project implementation plan identifies the 
specific tasks and timelines that you and your partner contractors and/
or sub grantees will undertake to complete your proposed project on 
time and within budget. The Project Implementation Schedule, HUD Form 
4125, may serve, as this required schedule provided that it is 
sufficiently detailed to demonstrate that you have clearly thought out 
your project implementation. The extent, to which your project 
identifies, measures and evaluates the specific benchmarks, outcomes 
and/or goals of your project. The Logic Model, HUD Form 96010, may 
serve as the format to address this information.
    (5 points for current ICDBG grantees) (7 points for new applicants) 
The applicant submitted a project implementation plan that clearly 
specifies project tasks and timelines. The documentation identifies the 
steps in place to make adjustments to the work plan if tasks are not 
completed within established timeframes. The applicant submitted clear 
project benchmarks, outcomes and/or goals and identified objectively 
quantifiable program measures and/or evaluation process.
    (3 points for current ICDBG grantees) (4 points for new applicants) 
The applicant submitted a project implementation plan that specifies 
project tasks and timelines. The applicant submitted project 
benchmarks, outcomes and/or goals, however, did not clearly identify 
objectively quantifiable program measures and/or the evaluation 
process.
    (0 points for current ICDBG grantees or new applicants) The 
applicant submitted a project implementation schedule that does not 
address all project tasks and timelines associated with the project. 
Project benchmarks, outcomes and/or goals were not submitted, or if 
submitted, did not address either the quantifiable program measures 
and/or the evaluation process.
    (c) (3 points for current ICDBG grantees) (8 points for new 
applicants) Financial Management.
    This subfactor evaluates the extent to which your application 
describes how your financial management systems will facilitate 
effective fiscal control over your proposed project and meet the 
requirements of 24 CFR part 85 and 24 CFR part 1003. You must also 
describe how you will apply your financial management systems to the 
specific project for which you are applying. The application must 
include a tribal resolution or other written document signed by the 
appropriate entity according to tribal practices that adopts your 
financial management and/or internal control policies and procedures. 
The application will also be rated on the seriousness/significance of 
the findings related to your financial management system identified in 
your most recent audit. If you are required to have an audit but do not 
have a recent audit, you must submit a letter from your Independent 
Public Accountant stating that your financial management system 
complies with all applicable regulatory requirements. If you are not 
required to have an audit, you will automatically receive points for 
this portion of the subfactor.
    (3 points for current ICDBG grantees) (8 points for new applicants) 
The applicant clearly described how it will apply its financial 
management systems to the proposed project. A tribal resolution or 
other written document signed by the appropriate entity according to 
tribal practices adopting financial management or internal control 
policies and procedures was included with the application. The 
applicant's most recent audit does not contain any serious or 
significant findings related to its financial management system, or if 
there is no recent audit, the applicant submitted a letter from its 
Independent Public Accountant stating that its financial management 
system complies with all applicable regulatory requirements.
    (2 points for current ICDBG grantees) (4 points for new applicants) 
The applicant's most recent audit does not contain any serious or 
significant findings related to its financial management system, or if 
there is no recent audit, the applicant submitted a letter from its 
Independent Public Accountant stating that its financial management 
system complies with all applicable regulatory requirements. The 
applicant did not describe how it would apply its financial management 
systems to the proposed project, or it did not submit a tribal 
resolution or other written document adopting financial management or 
internal control policies and procedures.
    (1 point for current ICDBG grantees) (2 points for new applicants) 
The applicant's most recent audit does not contain any serious or 
significant findings related to its financial management system, or if 
there is no recent audit, the applicant submitted a letter from its 
Independent Public Accountant stating that its financial management 
system complies with all applicable regulatory requirements. The 
applicant did not describe how it would apply its financial management 
systems to the proposed project, and it did not submit a tribal 
resolution or other written document adopting financial management or 
internal control policies and procedures.
    (0 points for current ICDBG grantees or new applicants) The 
applicant's most recent audit included serious or significant findings 
related to its financial management systems. No tribal

[[Page 42204]]

resolution or other written document adopting financial management or 
internal control policies and procedures were submitted with the 
application, and the applicant did not describe how it would apply its 
financial management systems to the proposed project.
    (d) (2 points for current ICDBG grantees) (5 points for new 
applicants) Procurement and Contract Management.
    This subfactor evaluates the extent to which your application 
describes how your procurement and contract management policies and 
procedures will facilitate effective procurement and contract control 
over your proposed project and meet the requirements of 24 CFR part 85 
and 24 CFR part 1003. You must also describe how you will apply your 
procurement and contract management systems to the specific project for 
which you are applying. The application must include a tribal 
resolution or other written document signed by the appropriate entity 
according to tribal practices that adopts your procurement and contract 
management policies and procedures. The application will also be rated 
on the seriousness of the findings related to procurement and contract 
management identified in your most recent financial audit. If you are 
required to have an audit but do not have a recent audit, you must 
submit a letter from your Independent Public Accountant stating that 
your procurement and contract management system complies with all 
applicable regulatory requirements. If you are not required to have an 
audit, you will automatically receive points for this portion of the 
subfactor.
    (2 points for current ICDBG grantees) (5 points for new applicants) 
The applicant clearly described how its procurement and contract 
management policies and procedures will facilitate effective 
procurement and contract control over the proposed project, and meet 
the requirements of 24 CFR part 85 and 24 CFR part 1003. A tribal 
resolution or other written document signed by the appropriate entity 
according to tribal practices adopting procurement and contract 
management policies and procedures were included with the application. 
The applicant's most recent audit does not contain any serious or 
significant findings related to its procurement and contract management 
system, or if there is no recent audit, the applicant submitted a 
letter from its Independent Public Accountant stating that its 
procurement and contract management system complies with all applicable 
regulatory requirements.
    (1 point for current ICDBG grantees) (4 points for new applicants) 
The applicants most recent audit does not contain any serious or 
significant findings related to its procurement or contract management 
system, or if there is no recent audit, the applicant submitted a 
letter from its Independent Public Accountant stating that its 
procurement and contract management system complies with all applicable 
regulatory requirements. The applicant did not describe how it would 
apply its procurement and contract management systems to the proposed 
project, or it did not submit a tribal resolution or other written 
document adopting procurement and contract management policies and 
procedures.
    (0 points for current ICDBG grantees or new applicants) The 
applicant's most recent audit included serious or significant findings 
related to its procurement and contract management systems. No tribal 
resolution or other written document adopting procurement or contract 
management policies and procedures were submitted with the application, 
and the applicant did not describe how it would apply its procurement 
and contract management systems to the proposed project.
    (2) (10 points for current ICDBG grantees) (0 points for new 
applicants) Past Performance.
    HUD will evaluate your experience in producing timely products and 
reports in any previous ICDBG programs for the following performance 
measures. HUD reserves the right to take into account your past 
performance in meeting performance and reporting goals on any previous 
ICDBG awards.
    (a) (2 points for current ICDBG grantees) (0 points for new 
applicants) You have had satisfactory progress in meeting the time 
frames established in the HUD-approved Implementation Schedule for the 
ICDBG Program.
    (2 points) The applicant has made satisfactory progress in meeting 
the timeframes established in the implementation schedule, or was 
behind schedule but the applicant has an approved revised 
implementation schedule that was submitted prior to application 
deadline.
    (0 points) The applicant has not made satisfactory progress meeting 
timeframes in the most recently approved implementation schedule.
    (b) (2 points for current ICDBG grantees) (0 points for new 
applicants)
    (2 points) The applicant has submitted both the Annual Status and 
Evaluation Reports and Federal Cash Transaction Reports for ICDBG 
programs in a timely manner.
    (1 point) The applicant has submitted either the Federal Cash 
Transaction Reports or the Annual Status and Evaluation Reports for 
ICDBG programs in a timely manner.
    (c) (2 points for current ICDBG grantees) (0 points for new 
applicants) You have submitted close-out documents to HUD in a timely 
manner. Close-out documents are required for the ICDBG Program within 
90 days of the date it is determined that the criteria for close-out at 
24 CFR 1003.508 have been met.
    (2 points) The applicant submitted close-out documents to HUD in 
accordance with the timeframe and criteria at Sec.  1003.508.
    (0 points) The applicant has not submitted close-out documents to 
HUD as required by Sec.  1003.508.
    (d) (2 points for current ICDBG grantees) (0 points for new 
applicants) You have submitted annual audits in a timely fashion in 
accordance with the ICDBG requirements and OMB Circular A-133 and its 
compliance supplements.
    (2 points) The applicant has submitted annual audits in accordance 
with ICDBG requirements and OMB Circular A-133 and its compliance 
supplements. If the applicant has only one open grant and it has not 
been a full year from award of their grant, and they have not been 
required to submit an audit for other purposes, the applicant will 
receive 2 points.
    (0 points) The applicant has not submitted annual audits in 
accordance with ICDBG requirements and OMB Circular A-133 and its 
compliance supplements.
    (e) (2 points for current ICDBG grantees) (0 points for new 
applicants) You have resolved in a timely manner ICDBG monitoring 
findings and controlled audit findings or no findings in current 
reports.
    (2 points) The applicant resolved open ICDBG monitoring findings 
and controlled audit findings in a timely manner. If there were no open 
audit or ICDBG monitoring findings (current grantees only), the 
applicant will receive 2 points.
    (0 points) The applicant has not resolved open ICDBG monitoring 
findings and controlled audit findings in a timely manner.

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

    This factor addresses the extent to which there is a need for the 
proposed project to address a documented problem among the intended 
beneficiaries.
    (1) (5 points) Your application includes documentation 
demonstrating that the proposed project meets an essential community 
development need by fulfilling a function that is critical to

[[Page 42205]]

the continued existence or orderly development of the community.
    (2) (15 points) Your project benefits the neediest segment of the 
population. The criteria for this sub-factor varies according to the 
type of project for which you are applying. Please note that you may 
submit data that are unpublished and not generally available in order 
to meet the requirements of this section. However, to do so, you must 
submit a demographic data certification along with supporting 
documentation as described in Section VIII (A) and (C)(11). For 
documenting persons employed by the project, you do not need to submit 
a demographic data certification and corresponding documentation. 
However, you do need to submit information that describes the nature of 
the jobs created or retained. Such information includes but is not 
limited to proposed job descriptions, salaries and the number of full-
time equivalent positions. If you believe jobs will be retained as a 
result of the ICDBG project, include information that show clearly and 
objectively, that jobs will be lost without the ICDBG project. Jobs 
that are retained only for the period of the grant will not count under 
this rating factor.
    (a) Public Facilities and Improvements and Economic Development 
Projects.
    The proposed activities benefit the neediest segment of the 
population, as identified below. For economic development projects, you 
may consider beneficiaries of the project as persons served by the 
project and/or persons employed by the project.
    (15 points) 85 percent or more of the beneficiaries are low- or 
moderate-income.
    (10 points) At least 75 percent but less than 85 percent of the 
beneficiaries are low- or moderate-income.
    (5 points) At least 55 percent but less than 75 percent of the 
beneficiaries are low- or moderate-income.
    (0 points) Less than 55 percent of the beneficiaries are low- or 
moderate-income.
    (b) New Housing Construction, Housing Rehabilitation, Land 
Acquisition to Support New Housing, and Homeownership Assistance 
Projects. The need for the proposed project is determined by utilizing 
data from the tribe's 2003 IHBG formula information. The ratio is based 
on the dollars allocated to a tribe under the IHBG Program for Need 
divided by the sum of the number of AIAN households in the following 
categories:
    Annual income less than 30% of median income;
    Annual income between 30% and 50% of median income;
    Annual income between 50% and 80% of median income;
    Overcrowded or without kitchen or plumbing;
    Housing cost burden greater than 50% of annual income;
    Housing shortage (Number of low-income AIAN households less total 
number of NAHASDA and Formula Current Assisted Stock).
    This ratio is computed for each tribe and contained in Appendix B 
of this NOFA.
    (15 points) The dollar amount for the Indian tribe is $400--$699.
    (10 points) The dollar amount for the Indian tribe is $700--$1,119.
    (5 points) The dollar amount for the Indian tribe is $1,120--
$1,199.
    (0 points) The dollar amount for the Indian tribe is $1,200 and 
higher, or Appendix B of this NOFA indicates that the Indian tribe has 
no AIAN households experiencing income or housing problems.
    (c) Microenterprise Programs.
    The owner(s) of the microenterprise must be low- or moderate-income 
and the majority of the jobs created or retained will be for low- or 
moderate-income persons. To evaluate need, the nature of the jobs 
created or retained will be evaluated. The owners of the 
microenterprises are low- and moderate-income and:
    (15 points) All employees are low- or moderate-income.
    (10 points) At least 75 percent but less than 100 percent of the 
employees are low- or moderate-income.
    (5 points) At least 50 percent but less than 75 percent of the 
employees are low- or moderate-income.
    (0 points) Less than 50 percent of the employees are low- and 
moderate-income.

Rating Factor 3: Soundness of Approach (35 Points)

    This factor addresses the quality and anticipated effectiveness of 
your proposed project in meeting the needs you have identified in 
Rating Factor 2 and the commitment to sustain your proposed project. 
The populations that were described in demographics that documented 
need should be the same populations that will receive the primary 
benefit of the proposed project.
    (1) (14 points) Description of and Rationale for Proposed Project.
    (14 points) The proposed project is a viable and cost effective 
approach to address the needs outlined under Rating Factor 2 of your 
application. The proposed project is described in detail and indicates 
why you believe the proposed project will be most effective in 
addressing the identified need. The application includes a description 
of the size, type and location of the project; rationale for project 
design; and anticipated cost savings due to innovative program design 
and/or construction methods. For land acquisition to support new 
housing projects, you must establish that there is a reasonable ratio 
between the number of net usable acres to be acquired and the number of 
low- and moderate-income households to benefit from the project.
    (9 points) The proposed project is a viable and cost effective 
approach to address the needs outlined under Rating Factor 2 of the 
application. The project is described in detail and indicates why you 
believe the project will be most effective in addressing the identified 
need. The application includes a description of the size, type and 
location of the project as well as a strong rationale for project 
design. For land acquisition to support new housing projects, the 
applicant has established that there is a reasonable ratio between the 
number of net usable acres to be acquired and the number of low- and 
moderate-income households to benefit from this project.
    (5 points) The proposed project is a viable and cost effective 
approach to address the needs outlined under Rating Factor 2 of the 
application. The project is described in detail and indicates why you 
believe the project will be most effective in addressing the identified 
need. The application includes a description of the size, type, and 
location of the project. For land acquisition to support new housing 
projects, the applicant has established that there is a reasonable 
ratio between the number of net usable acres to be acquired and the 
number of low- and moderate-income households to benefit from the 
project.
    (0 points) One of the following applies. The proposed project is 
not a viable and cost effective approach to address the needs outlined 
under Rating Factor 2 of the application. The proposed project is not 
described in detail with an indication of why the applicant believes 
the project will be most effective in addressing the identified need. 
For land acquisition to support new housing projects, the applicant has 
not established that there is a reasonable ratio between the number of 
net usable acres to be acquired and the number of low- and moderate-
income households to benefit from the project.
    (2) (5 points) Budget and Cost Estimates.

[[Page 42206]]

    The quality, thoroughness, and reasonableness of the proposed 
project budget are documented. Cost estimates must be broken down by 
line item for each proposed activity and documented. You must submit 
documentation listing the qualifications of the person who prepared the 
cost estimate.
    (3) (1 point) HUD Policy Priorities Your application addresses the 
goals for ``Improving Our Nation's Communities'', one of HUD's 2003 
Policy Priorities, as described in Section I (L) of the NOFA.
    (4) (15 points) Commitment to Sustain Activities.
    Your application demonstrates your commitment to sustain your 
proposed activities. The information provided is sufficient to 
determine that the project will proceed effectively.
    The criteria for this sub-factor vary according to the type of 
project for which you are applying.
    Public Facilities and Improvement Projects.
    (15 points) A tribal resolution or firm commitment from an entity 
other than a tribe is included in the application that adopts the 
operation and maintenance plan and commits the necessary funds to 
provide for these responsibilities. The operation and maintenance plan 
is included in the application and addresses maintenance, repairs, 
insurance, replacement reserves and includes a cost breakdown for 
annual expenses. For community buildings only, the plan also identifies 
the source of operating funds for any recreation, social or other 
services to be provided. In the case where a tribe will provide the 
funds, a tribal resolution committing these funds for this purpose is 
included in the application. In the case where an entity other than the 
tribe will provide the funds, a letter of commitment committing these 
funds for this purpose is included in the application. In addition, 
letters of commitment from service providers are included which address 
both operating expenses and space needs.
    (10 points) A tribal resolution or firm commitment from an entity 
other than a tribe is included in the application that adopts the 
operation and maintenance plan and commits the necessary funds to 
provide for these responsibilities. The operation and maintenance plan 
is included in the application and addresses most of the above items 
(maintenance, repairs, insurance, replacement reserves) but does not 
include a satisfactory cost breakdown for annual expenses. For 
community buildings only, the plan also identifies the source of 
operating funds for any recreation, social or other services to be 
provided. In the case where a tribe will provide the funds, a tribal 
resolution committing these funds for this purpose is included in the 
application. In the case where an entity other than the tribe will 
provide the funds, a letter of commitment committing these funds for 
this purpose is included in the application. In addition, letters of 
commitment from service providers are included which address both 
operating expenses and space needs. Information provided is sufficient 
to determine that the project will proceed effectively.
    (5 points) A tribal resolution or firm commitment from an entity 
other than a tribe is included in the application that adopts the 
operation and maintenance plan and commits the necessary funds to 
provide for these responsibilities or the operation and maintenance 
plan is included in the application and addresses most of the above 
items (maintenance, repairs, insurance, replacement reserves) is 
included. For community buildings only, letters of commitment to 
provide services are included but they do not address operating 
expenses and space needs. In addition, no tribal resolution or letter 
of commitment is provided that commits the necessary funds for any 
recreation, social or other services to be provided. Information 
provided is sufficient to determine that the project will proceed 
effectively.
    (0 points) None of the above criteria is met.
    (b) New Housing Construction, Housing Rehabilitation, and 
Homeownership Assistance Projects.
    (15 points) The ongoing maintenance responsibilities are clearly 
identified for the tribe and/or the participants, as applicable. Any 
participant maintenance responsibilities are included on a statement to 
be signed by the participant as a condition of receiving grant 
assistance and the statement to be used is included in the application. 
If the tribe or another entity is assuming maintenance 
responsibilities, then the applicant must submit either a tribal 
resolution or letter of commitment to that effect.
    (10 points) Maintenance responsibilities are identified, but 
lacking in detail, and the above statement (if applicable) to be signed 
by the participant, or the tribal resolution or letter of commitment 
regarding maintenance responsibilities is submitted.
    (5 points) Tribal maintenance responsibilities are identified but 
participant responsibilities are either not addressed or do not exist, 
or there is no tribal resolution or letter of commitment or statement 
signed by the participant.
    (0 points) None of the above criteria is met.
    (c) Economic Development Projects.
    You must include information or documentation which addresses or 
provides all of the following in the application: a description of the 
organizational system and capacity of the entity that will operate the 
business; documents which show that formal provisions exist for 
separation of government functions from business operating decisions, 
an operating plan for the project, and the feasibility and market 
analysis of the proposed business activity and the financial viability 
of the project.
    Appropriate documents to include in the application to address 
these items include:
    (i) Articles of incorporation, by-laws, resumes of key management 
positions and board members for the entity who will operate the 
business.
    (ii) Business operating plan.
    (iii) Market study no more than two years old and which has been 
conducted by an independent entity.
    (iv) Feasibility study no more than two years old which indicates 
how the proposed business will capture a fair share of the market, and 
which has been conducted by an independent entity.
    (v) Detailed cost summary for the development of the project.
    (vi) Five year operating or cash flow financial projections.
    (vii) For the expansion of an existing business, copies of 
financial statements for the most recent three years (or the life of 
the business, if less than three years).
    (15 points) All above documents applicable to the proposed project 
are included in your application and provide evidence that the 
project's chance for financial success is excellent.
    (8 points) All or most of the above documents applicable to the 
proposed project are included and provide evidence that the project's 
chance for financial success is reasonable.
    (0 points) Neither of the above criteria is met.
    (d) Microenterprise Programs.
    You must include the following information or documentation in the 
application that addresses or provides a description of how your 
microenterprise program will operate. Appropriate information to 
include in the application to address program operations includes:
    (i) Program description. A description of your microenterprise 
program including the types of assistance offered to microenterprise 
applicants and the

[[Page 42207]]

types of entities eligible to apply for such assistance.
    (ii) Processes for selecting applicants. A description of your 
processes for analyzing microenterprise applicants' business plans, 
market studies and financial feasibility. For credit programs, you must 
describe your process for determining the loan terms (i.e. interest 
rate, maximum loan amount, duration, loan servicing provisions) to be 
offered to individual microenterprise applicants.
    (15 points) All of the above information or documentation 
applicable to the proposed project are thoroughly addressed in the 
application and the chances for success are excellent.
    (8 points) All or most of the above information or documentation 
applicable to the proposed project are addressed in the application and 
the chances for success are reasonable.
    (0 points) Neither of the above criteria is met.
    (e) Land Acquisition Projects to Support New Housing.
    Submissions must include the results of a preliminary investigation 
conducted by a qualified independent entity demonstrating that the 
proposed site has suitable soil conditions for housing and related 
infrastructure, available drinking water, access to utilities, 
vehicular access, drainage, nearby social and community services, and 
no known environmental problems.
    (15 points) The submissions include all of the above-mentioned 
items and all necessary infrastructure is in place.
    (8 points) The submissions demonstrate that the proposed site(s) 
is/are suitable for housing but that not all necessary infrastructure 
is in place. A detailed description of resources to be used and a 
detailed implementation schedule for development of all necessary 
infrastructure demonstrates that such infrastructure, as needed for 
proposed housing development, will be developed in time for such 
development, but no later than two years after site purchase.
    (0 points) Neither of the above criteria is met.
    Rating Factor 4: Leveraging Resources (10 Points)
    HUD believes that ICDBG funds can be used more effectively to 
benefit a larger number of Native American and Alaska Native persons 
and communities if projects are developed that use tribal resources and 
resources from other entities in conjunction with ICDBG funds. To 
encourage this, we will award points based on the percentage of non-
ICDBG resources provided relative to project costs as follows:

------------------------------------------------------------------------
              Non-ICDBG resources to project costs                Points
------------------------------------------------------------------------
Less than 5 percent............................................        0
At least 5 percent but less than 10 percent....................        2
At least 10 percent but less than 15 percent...................        4
At least 15 percent but less than 20 percent...................        6
At least 20 percent but less than 25 percent...................        8
25 percent or more.............................................       10
------------------------------------------------------------------------

    Contributions which could be considered as leveraged resources for 
point award include, but are not limited to: tribal trust funds; loans 
from individuals or organizations; state or federal loans or 
guarantees; other grants including IHBG (aka NAHBG) funds; donated 
goods and services needed for the project; land needed for the project; 
and, direct administrative costs. With the exception of land 
acquisition, funds that have been expended on the project prior to 
application submission will not be counted as leverage. Applicants are 
reminded that environmental review requirements under 24 CFR part 58 
apply to the commitment or use of both ICDBG and non-ICDBG funds in a 
leveraged project. See section IV (B)(2) for information related to 
this requirement.
    Contributions that will not be considered include, but are not 
limited to: indirect administrative costs as identified in OMB Circular 
A-87, attachment A, section F; contributions of resources to pay for 
anticipated operations and maintenance costs of the proposed project; 
and, in the cases of expansions to existing facilities, the value of 
the existing facility.
    To be considered for point award, letters of firm or projected 
commitments, memoranda of understanding, or agreements to participate 
from any entity, including the tribe, which will be providing a 
contribution to the project, must accompany the application.
    To demonstrate the commitment of tribal resources, the application 
must contain a council resolution or legal equivalent that identifies 
and commits the tribal resources to the project, subject to approval of 
the ICDBG assistance. In the case of IHBG (aka NAHBG) funds, whether 
the tribe or a TDHE administers them, an approved IHP must identify and 
commit the IHBG (aka NAHBG) resources to the project. If the tribe/TDHE 
intends to include the leveraged commitment in a future IHP, the 
application must contain a council resolution or legal equivalent that 
identifies and commits the IHBG (aka NAHBG) resources to the project 
subject to the same requirements as above.
    To demonstrate the commitment of public agency, foundation, or 
other private party resources, a letter of commitment, memorandum of 
understanding, and/or agreement to participate, including any 
conditions to which the contribution may be subject, must be submitted 
with the application. All letters of commitment must include the donor 
organization's name, the specific resource proposed, the dollar amount 
of the financial or in-kind resource and method for valuation, and the 
purpose of that resource within the proposed project. The commitment 
must be signed by an official of the organization legally authorized to 
make commitments on behalf of the organization.
    HUD recognizes that in some cases, firm commitments of non-tribal 
resources may not be obtainable by your tribe by the application due 
date. For such projected resources, your application must include a 
statement from the contributing entity that describes why the firm 
commitment cannot be made at the current time and affirms that your 
tribe and the proposed project meets eligibility criteria for receiving 
the resource. In addition, a date by which the funding decisions will 
be made must be included. This date cannot be more than six months from 
the anticipated date of grant approval notification by HUD. Should HUD 
not receive notification of the firm commitment within 6 months of the 
date of grant approval, HUD will recapture the grant funds approved and 
will use them in accordance with the requirement of 24 CFR 1003.102.
    In addition to the above requirements, for all contributions of 
goods, services and land, you must demonstrate that the donated items 
are necessary to the actual development of the project and include 
comparable costs (or time estimates, if appropriate) that support the 
donation. Land valuation must be established using one of the following 
methods and the documentation must be contained in the application: a 
site specific appraisal no more than two years old; an appraisal of a 
nearby comparable site also no more than two years old; a reasonable 
extrapolation of land value based on current area realtor value guides; 
or, a reasonable extrapolation of land value based on recent sales of 
similar properties in the same area.

Rating Factor 5: Comprehensiveness and Coordination (5 Points)

    This factor addresses the extent to which your project planning and

[[Page 42208]]

proposed implementation reflect a coordinated, community-based process 
of identifying and addressing needs including assisting beneficiaries 
and the program to achieve self-sufficiency/sustainability. Please note 
that the Logic Model, HUD Form 96010, does not apply to Rating Factor 5 
under the ICDBG Program. However, applicants may use this form program 
evaluation requirements under Rating Factor 1 (1) (b) of this NOFA.
    (1) (2 points) The application addresses the extent to which you 
have coordinated your activities with other organizations that are not 
directly participating in your proposed work activities (not project 
partners such as those listed under Rating Factor 4: Leveraging), but 
with which you share common goals and objectives and are working toward 
meeting these objectives in a holistic and comprehensive manner. For 
example, your project is consistent with and, to the extent possible, 
identified in the IHP (One-Year Financial Resources Narrative; Table 2, 
Financial Resources, Part I., Line 1E; and, Table 2, Financial 
Resources, Part II) submitted by you or on your behalf for the IHBG 
(aka NAHBG) Program. If the IHP for the IHBG (aka NAHBG) program year 
that coincides with the implementation of the ICDBG proposed project 
has not been submitted, you must provide an assurance that when 
submitted, the IHP will specifically reference the proposed project.
    (2) (3 points) Your proposed project will accomplish measurable 
outcomes such as number of jobs created or obtained; education or job 
training opportunities provided, increased economic self-sufficiency of 
recipients of program beneficiaries; increased homeownership rates; 
and, reduction of drug-related crime or health related hazards.

VIII. Application Submission Requirements

(A) Demographic Data

    You may submit data that are unpublished and not generally 
available in order to meet the requirements of this section. You must 
certify that:
    (1) Generally available, published data are substantially 
inaccurate or incomplete;
    (2) Data provided have been collected systematically and are 
statistically reliable;
    (3) Data are, to the greatest extent feasible, independently 
verifiable; and
    (4) Data differentiate between reservation and BIA service area 
populations, when applicable.

(B) Publication of Community Development Statement

    You must prepare and publish or post the community development 
statement portion of your application according to the citizen 
participation requirements of 1003.604.

(C) Application Submission

    Your application must contain the items listed below.
    1. Standard Form for Application for Federal Assistance (HUD-424).
    2. Drug-Free Workplace Certification (HUD-50070).
    3. Applicant/Recipient Disclosure/Update Report (HUD-2880).
    4. Certification Regarding Debarment and Suspension (HUD-2992).
    5. Acknowledgement of Application Receipt (HUD-2993).
    If the application has been submitted by a tribal organization as 
defined in 24 CFR 1003.5(b), on behalf of an Indian tribe, you must 
submit concurring resolutions from the Indian tribe stating that the 
tribal organization is applying on the tribe's behalf.
    The other required items are as follows:
    6. Community Development Statement that includes:
    (a) Components that address the general threshold requirement and 
the relevant project specific thresholds and rating factors;
    (b) A schedule for implementing the project (form HUD-4125, 
Implementation Schedule); and
    (c) Cost information for each separate project, including specific 
activity costs, administration, planning, technical assistance, and 
total HUD share (form HUD-4123, Cost Summary);
    7. Certifications (form HUD 4126);
    8. A map showing project location, if appropriate;
    9. If the proposed project will result in displacement or temporary 
relocation, a statement that identifies:
    (a) The number of persons (families, individuals, businesses, and 
nonprofit organizations) occupying the property on the date of the 
submission of the application (or date of initial site control, if 
later);
    (b) The number to be displaced or temporarily relocated;
    (c) The estimated cost of relocation payments and other services;
    (d) The source of funds for relocation; and
    (e) The organization that will carry out the relocation activities;
    10. If applicable, evidence of the disclosure required by 24 CFR 
1003.606(e) regarding conflict of interest.
    11. If applicable, the demographic data certification described in 
Section VIII(A) and VII, Rating Factor 2 of this NOFA. The data 
accompanying the certification must identify the total number of 
persons benefiting from the project and the total number of low- and 
moderate-income persons benefiting from the project. Supporting 
documentation must include a sample copy of a completed survey form and 
an explanation of the methods used to collect the data, and a listing 
of incomes by household.
    Optional submissions are:
    12. Client Comments and Suggestions (HUD-2994).
    13. Logic Model, HUD-96010.
    14. Surveying Ensuring Equal Opportunity for Applicants, HUD-23004.

IX. Public Access, Documentation and Disclosure

A. Section 102 of HUD Reform Act, Applicant Debriefing, Documentation 
and Public Access Requirements

    Section 102 of the Department of Housing and Urban Development 
Reform Act of 1989 (42 U.S.C. 3545) (HUD Reform Act) and the 
regulations codified in 24 CFR part 4, subpart A, contain a number of 
provisions that are designed to ensure greater accountability and 
integrity in the provision of certain types of assistance administered 
by HUD. On January 14, 1992, HUD published a notice that also provides 
information on the implementation of Section 102 (57 FR 1942). The 
documentation, public access, and disclosure requirements of Section 
102 apply to assistance awarded under this NOFA as follows:
    (1) Documentation, public access and disclosure requirements. HUD 
will ensure that documentation and other information regarding each 
application submitted pursuant to this NOFA are sufficient to indicate 
the basis upon which assistance was provided or denied. This material, 
including any letters of support, will be made available for public 
inspection for a 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 make available to the public for five 
years all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this NOFA. Update reports (also reported on HUD Form 
2880) will be made available along with the applicant disclosure

[[Page 42209]]

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).
    (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 band for at least 120 days after awards for 
assistance are announced publicly, 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 HUD-424 or his or her successor in office, and 
submitted to the Area Office you submitted your application to. 
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.

X. Error and Appeals

    Judgments made within the provisions of this NOFA and the program 
regulations (24 CFR part 1003) are not subject to claims of error. You 
may bring arithmetic errors in the rating and ranking of applications 
to the attention of the Area ONAPs within 30 days of being informed of 
your score. If an arithmetic error was made in the application review 
and rating process that, when corrected, would result in the award of 
sufficient points to warrant the funding of an otherwise approvable 
project, the Area ONAPs may fund that project in the next funding round 
without further competition.

Appendix A: Forms

    The non-standard forms, which follow, are required for your ICDBG 
application.

Appendix B: Data To Determine Need for Factor 2 (for Applicants for New 
Housing Construction, Housing Rehabilitation, Land Acquisition To 
Support New Housing, and Homeownership Assistance Projects)

    For Applicants submitting applications for New Housing 
Construction, Housing Rehabilitation, Land Acquisition to Support New 
Housing, and Homeownership Acquisition Projects: The need for the 
proposed project for Factor 2 is determined by utilizing data from the 
tribe's 2003 IHBG formula information. The data is contained in 
Appendix B. Should you disagree with this information, please consult 
the IHBG formula customer service center at (800) 410-8808 for the 
process for challenging IHBG formula data.

    Dated: July 7, 2003.
Michael M. Liu,
Assistant Secretary for Public and Indian Housing.
BILLING CODE 4210-33-P

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[FR Doc. 03-17991 Filed 7-15-03; 8:45 am]
BILLING CODE 4210-33-C