[Federal Register Volume 68, Number 156 (Wednesday, August 13, 2003)]
[Notices]
[Pages 48516-48527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20673]



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Part IV





Department of Housing and Urban Development





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Notice of Funding Availability (NOFA) for the Enhancement of 
Neighborhood Networks for Fiscal Year 2002 Revitalization of Severely 
Distressed Public Housing HOPE VI Revitalization Grants; Notice

  Federal Register / Vol. 68, No. 156 / Wednesday August 13, 2003 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4866-N-01]


Notice of Funding Availability (NOFA) for the Enhancement of 
Neighborhood Networks for Fiscal Year 2002 Revitalization of Severely 
Distressed Public Housing HOPE VI Revitalization Grants

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

ACTION: Notice of Funding Availability (NOFA).

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SUMMARY: Purpose of the Program. This NOFA announces the availability 
of $5 million in Fiscal Year (FY) 2002 funds to expand the Neighborhood 
Networks program for FY 2002 HOPE VI Revitalization Program grant 
awards.
    Available Funds. A total of $5,000,000 is available for funding 
which must be obligated in FY 2003.
    Eligible Applicants. Eligible applicants are PHAs that are awardees 
of HOPE VI Revitalization Grants, awarded under the Notice of Funding 
Availability for Revitalization of Severely Distressed Public Housing 
HOPE VI Revitalization Grants; Fiscal Year 2002, as published in the 
Federal Register on July 31, 2002, page 49766 to 49791, Docket Number 
FR-4768-N-01 (HOPE VI NOFA).
    Transfer of Funds. HUD does not have the discretion to transfer 
funds available through this NOFA to any other program, grant, or area 
of the applicant's current HOPE VI grant. The funds must be used for 
the expansion of Neighborhood Networks facilities and services beyond 
those described in the applicant's HOPE VI NOFA application.
    Maximum Funding. Each applicant may request up to $180,000. If 
funds remain after all grants are awarded, HUD will divide these funds 
equally among the grant award recipients. This may result in grant 
amounts larger than $180,000. HUD reserves the right to award a greater 
or lesser amount of funds than requested, based upon the merit of the 
submitted grant application.
    Deobligation of Funds. HUD may deobligate amounts for the grant if 
proposed activities are not initiated or completed within the required 
time after the effective date of the award. The grant agreement will 
set forth in detail circumstances under which funds may be deobligated 
and other sanctions imposed.
    Number of Applications Permitted. Each applicant may submit only 
one application.
    Joint Applications. Joint applications are not permitted. However, 
in accordance with Section XI (A)(4), Community and Supportive 
Services, of the HOPE VI NOFA, the applicant may enter into subgrant 
agreements with procured developers, other HOPE VI partners, non-
profits, or state or local governments to perform the activities 
proposed under the application.
    Grant term. The grant term for funding shall be equal to the term 
of the applicant's HOPE VI NOFA grant award, regardless of the date of 
award under this NOFA. Extensions of the grant term shall also be equal 
to extensions granted under the HOPE VI grant.
    Relationship to HOPE VI NOFA. Applications must be in accordance 
with this HOPE VI Neighborhood Networks NOFA (hereafter referred to as 
NN NOFA) and the requirements of the HOPE VI NOFA, especially including 
Section XI (A), Community and Supportive Services. Where 
inconsistencies exist between the HOPE VI NOFA and this NN NOFA, this 
NN NOFA shall take precedence, e.g., application due date and maximum 
pages differ for the NOFAs, rating factors differ for the NOFAs, 
narrative other than the response to the rating factors is not allowed 
in the NN NOFA. HUD will only use funds from this NN NOFA to fund 
grantees of the HOPE VI NOFA, as defined below.
    Application Due Date. September 12, 2003.
    NN NOFA grant applications are due at HUD Headquarters on or before 
5:15 p.m, Eastern Time, 30 calendar days after publication of this NN 
NOFA in the Federal Register. This application deadline is firm. If you 
mail or give your application to an overnight carrier on the due date 
and it does not arrive by 5:15 p.m. on the due date, your application 
will not be considered. Submit your application early to avoid missing 
the deadline and being disqualified by unanticipated delays or other 
related problems.

SUPPLEMENTARY INFORMATION:

I. Application Submission, Application Kits, and Technical Assistance

    A. Address for Submitting Applications. Send the original and one 
copy of your completed application to Mr. Milan Ozdinec, Deputy 
Assistant Secretary for Public Housing Investments, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Room 4130, 
Washington, DC 20410-5000. Please make sure that you note the room 
number. The correct room number is very important to ensure that your 
application is not misdirected.
    B. Application Submission Requirements. 1. It is strongly 
recommended that you send your application by an overnight carrier at 
least two days before the application due date. You may only use DHL, 
Falcon Carrier, FedEx, United Parcel Service (UPS), or the U.S. Postal 
Service (USPS), as they are the only carriers accepted into the HUD 
building without an escort. Delivery by these services must be made 
during HUD's Headquarters business hours, between 8:45 a.m. and 5:15 
p.m., Eastern Time, Monday through Friday. If these companies do not 
serve your area, you must submit your application via USPS.
    2. Hand Carried Applications. Due to new security measures, HUD 
will no longer accept hand carried applications.
    3. HUD will not accept for review and evaluation any applications 
sent by facsimile (fax). However, facsimile corrections to technical 
deficiencies will be accepted, as described in Section IX of this NOFA. 
Also, do not submit resumes or videos.
    C. Application Kits. Application kits will not be used with this 
NOFA.
    D. Maximum Length of Application. The maximum length of the rating 
factor response portion of the application is 20 pages, double-spaced 
on 8\1/2\ x 11 inch paper, with a minimum font size of Times New Roman 
12 point. The 20 page maximum does not include forms required by the NN 
NOFA or supporting documentation, e.g., commitment letters. Applicants 
should make every effort to submit only what is necessary in terms of 
supporting documentation. Points will not be added for overall length 
of the application.
    E. Application Format. The only narrative portion of the 
application is the applicant's response to the rating factors. To 
ensure proper credit for information applicable to each rating factor, 
the applicant should include page-number references to the program 
summary, forms, and supporting documentation. More detail on the 
application format is located in Section VII of this NN NOFA. 
Applicants' rating factor responses should be as descriptive as 
possible, ensuring that every requested item is addressed. Applicants 
should make sure to include all requested information, according to the 
instructions of this NN NOFA. This will help ensure a fair and accurate 
review of your application. Although information from all parts of the 
application will be taken into account in rating the various factors, 
if supporting information cannot be found by the reviewer, it cannot be 
used to support a factor's rating.

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    F. Technical Assistance. 1. Before the application due date, HUD 
staff will be available to provide you with general guidance and 
technical assistance. However, HUD staff is not permitted to assist in 
preparing your application. If you have a question or need a 
clarification, you may call, fax, or write Mr. Milan Ozdinec, Deputy 
Assistant Secretary for Public Housing Investments, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Room 4130, 
Washington, DC 20410-5000; telephone (202) 401-8812; fax (202) 401-2370 
(these are not toll-free numbers). Persons with hearing and/or speech 
challenges may access these telephone numbers via text telephone (TTY) 
by calling the toll-free Federal Information Relay Service at (800) 
877-8339.
    2. Frequently asked questions, clarifications, and any technical 
corrections will be posted to the HUD Web site at http://www.hud.gov. 
In addition, all materials related to this NN NOFA will be posted to 
the HOPE VI Web site at http://www.hud.gov/hopevi. Any technical 
corrections will also be published in the Federal Register. Applicants 
are responsible for monitoring these sites during the application 
preparation period.

II. Amount Allocated

    A total of $5,000,000 is available for funding which must be 
obligated in FY 2003.

III. Program Description

    A. The Notice of Funding Availability for Revitalization of 
Severely Distressed Public Housing HOPE VI Revitalization Grants; 
Fiscal Year 2002, as published in the Federal Register on July 31, 
2002, page 49766 to 49791, Docket Number FR-4768-N-01 (HOPE VI NOFA) 
stated that funding for Neighborhood Networks within the HOPE VI 
program would be offered under a separate Neighborhood Networks NOFA. 
This is that NOFA.
    B. Grantees from the FY 2002 HOPE VI NOFA (defined below) are 
building Neighborhood Network Centers (NNCs) and/or developing 
Neighborhood Networks programs as part of their revitalization plan. 
HOPE VI monies can be used for NNC construction, computer and 
information technology hardware, staffing, and services.
    C. The Neighborhood Networks enhancement grant will provide 
additional funding to HOPE VI grantees to accelerate and optimize the 
development of their NNCs as focal points for innovative information 
technology (IT) programs and supportive service delivery through 
digital technologies. This Neighborhood Networks NOFA (NN NOFA) 
provides grants to qualified Public Housing Agencies (PHAs) to (1) 
Update, maintain, and expand existing Neighborhood Networks/community 
technology centers (NNCs); or (2) establish new NNCs. Proposed grant 
activities must build on the foundation created or planned under the 
application for the HOPE VI NOFA.
    D. NNCs provide computer and Internet access to public housing 
residents and offer a full range of supportive services. Applicants 
should submit proposals that will: provide job training; reduce welfare 
dependency; promote economic self-sufficiency; increase the use of 
computer technology; expand educational opportunities for residents; 
develop access to health and nutrition information; and meet other 
needs of residents. A NNC may be existing or new.
    1. An existing NNC is:
    a. A computer lab, or community technology center already owned and 
operated by a PHA or nonprofit which serves residents of public housing 
and which has not received prior Neighborhood Networks funding and 
therefore is not officially designated a HUD Public and Indian Housing 
(PIH) NNC; or,
    b. A computer lab officially designated a HUD PIH NNC by virtue of 
PIH funding received prior to award of HOPE VI NOFA funds.
    2. A new NNC is one that:
    a. is not operational;
    b. is in development; and/or,
    c. needs funding under this grant program to become fully 
operational and serve residents of public housing.
    E. HUD is looking for applications that implement comprehensive 
programs within the grant term that will result in improved economic 
self-sufficiency for public housing residents. HUD is looking for 
proposals that involve partnerships with organizations that will help 
supplement and enhance the services grantees will offer to residents.
    F. If you are interested in applying for funding under this NN 
NOFA, please carefully review the application requirements provided 
below.

IV. Program Requirements

    A. Eligible Activities. 1. Programs offered by NNCs shall be 
designed to meet public housing residents' needs, be geared towards 
helping residents transition from welfare to work, assist school-age 
children and youth with homework, provide guidance and preparatory 
programming to high school students (or other interested residents) for 
post-secondary education (college or trade schools), offer life-skills 
and job training for youth, adults, and seniors, and provide health 
care information and other services as deemed necessary by results 
obtained from resident surveys. NNCs must be located within the HOPE VI 
development's locally defined neighborhood, on PHA owned land 
(including land leased to an ownership entity via a ground-lease) or 
land leased by the PHA, procured developer, or owner entity on a long-
term lease of at least 15 years.
    2. Applicants should provide the following staff and services:
    a. Increased computer and Internet access for residents during all 
phases of the HOPE VI revitalization process, including those that are 
temporarily or permanently relocated through a Housing Choice Voucher 
(HCV). Innovative approaches that promote computer ownership or home-
based computer access in conjunction with NNC access will receive 
higher scores;
    b. Use the NNC as a focus for computer and online access to 
community and supportive services, whether those services are computer/
Internet related or not. An emphasis on access during the relocation 
process will receive higher scores;
    c. The creation of online groups whose purpose is to better connect 
residents to each other and the HOPE VI revitalization process;
    d. NNCs will use computers, software, and Internet connectivity and 
should provide the following array of supportive services:
    i. Hiring of a qualified Neighborhood Networks Coordinator to run 
the grant program. A qualified Neighborhood Networks Coordinator should 
have two years of experience running a community technology center. The 
Neighborhood Networks Coordinator should be hired for the entire term 
of your grant.
    ii. The Neighborhood Networks Coordinator should be responsible for 
ensuring that the NNC's programs achieve your application's goals and 
objectives.
    iii. In addition, the Neighborhood Networks Coordinator should be 
responsible for the following activities:
    (A) Marketing the program to residents;
    (B) Assessing participating residents' needs, interests, skills, 
and job-readiness;
    (C) Assessing participating residents' needs for supportive 
services, e.g. childcare;
    (D) Designing and coordinating grant activities based on residents' 
needs;

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    (E) Monitoring the progress of program participants and evaluating 
the overall success of the program. A portion of grant funds should be 
reserved to ensure that evaluations can be completed for all 
participants who received training through this program. For more 
information on how to measure performance, please see Rating Factor 5.
    (F) Coordinating the type of Neighborhood Networks training 
provided to each participant with other available Community and 
Supportive Services (CSS) programs in an effort to ensure proper 
instructional level. Other CSS services should include, but are not 
limited to:
    (1) Life skills training: how to apply for a job; credit 
worthiness; opening a bank account; balancing a checkbook; creating a 
weekly spending budget; and contingency planning for child care and 
transportation;
    (2) Real Life Issues: tax forms; voter registration; lease samples; 
fair housing; car insurance; health insurance; and long-term care 
insurance;
    (3) Literacy training and GED preparation;
    (4) Computer training, from basic to advanced;
    (5) College preparatory courses and information;
    (6) Goal setting: working with residents to define their 
professional, educational, and economic goals;
    (7) Mentoring;
    (8) Job Training: oral and written communication skills; work 
ethic; interpersonal and teamwork skills; resume writing; interviewing 
techniques; creating job training; and placement programs with local 
employers and placement agencies; and post-employment follow-up to 
assist residents who are new to the workplace; and
    (9) Supportive Services such as transportation, healthcare 
information and services including referrals to mental health 
providers, alcohol and other drug abuse treatment programs, childcare, 
parenting courses, and other services needed by residents.
    3. Applicants may provide the following physical improvements:
    a. Physical improvements must directly relate to providing space 
for NNC activities. Renovation, conversion, wiring, and repair costs 
may be essential parts of physical improvements. In addition, 
architectural, engineering, and related professional services required 
to prepare architectural plans or drawings, write-ups, specifications, 
or inspections may also be part of the cost components to implement 
physical improvements;
    b. Modifications to create a space that is accessible to persons 
with disabilities is an eligible use of funds. Refer to Office of 
Management and Budget (OMB) Circular A-87, Cost Principles for state, 
local and Indian tribal governments. All renovations must meet 
appropriate accessibility requirements, including Section 504 
requirements at 24 CFR 8, Architectural Barriers Act at 24 CFR 40, and 
the Americans with Disabilities Act. Compliance with the Uniform 
Federal Accessibility Standards shall be deemed to comply with the 
requirements of 24 CFR 8.21 with respect to buildings.
    i. The renovation, conversion, or joining of vacant dwelling units 
in a PHA development to create appropriate space for the equipment 
needs and activities of a NNC (computers, printers, and office space) 
are eligible activities for physical improvement.
    ii. The renovation or conversion of existing common areas in a PHA 
development to accommodate a NNC is eligible.
    iii. If renovation, conversion, or repair is done off-site, the 
applicant must provide documentation that its procured developer or 
owner entity has control of the proposed property for at least 15 
years. Control can be demonstrated through a lease agreement, ownership 
documentation, or other appropriate documentation.
    4. Maintenance and insurance costs. This includes installing, 
training, and maintaining the hardware and software as well as 
insurance coverage for the space and equipment. Costs of computer 
hardware and software necessary to accommodate the needs of persons 
with disabilities are an eligible cost for this funding category.
    5. Purchase of computers, printers, software, and other peripheral 
equipment.
    6. Security and related costs. This includes space and minor 
refitting, locks, and other equipment for safeguarding the center.
    7. Resident development and training courses. These courses may be 
taught through educational software and/or presented live. Programs 
should be designed to address job training, life-skills, educational 
needs of residents (youth and adults), and other interests/needs of 
residents as determined by an assessment of residents conducted by the 
applicant.
    8. Distance Learning Equipment. Distance learning equipment 
(including the costs for video casting and purchase/lease/rental of 
distance learning equipment) is an eligible use of funds provided your 
proposal indicates that the center will be working in a virtual setting 
with a college, university, or other educational organization. If you 
operate more than one center, distance-learning equipment can be used 
to link one or more centers so that residents using the different 
centers can benefit from courses being offered at only one site.
    9. Administrative costs. Administrative costs may include, but are 
not limited to, purchase of furniture, office equipment and supplies, 
salaries for resident employees hired as part of this grant program, 
quality assurance, local travel, and utilities. Administrative costs 
must adhere to OMB Circular A-87. Please use Grant Application Detailed 
Budget Worksheet, HUD-424-CBW, to itemize your administrative costs.
    10. The grantee may not charge public housing and/or HOPE VI 
development residents and FSS participants for Neighborhood Networks 
services rendered. However, after one year from the date of grant 
agreement execution, the NNC may charge other organizations or 
individuals for services rendered, provided that: (1) The grantee forms 
an IRS approved nonprofit to run the NNC; and (2) timing of and amount 
of charged services do not interfere with the amount or scheduling of 
services to public housing/HOPE VI development residents.
    B. Ineligible Activities. 1. Payment of wages and/or salaries to 
participants receiving supportive services and/or training programs;
    2. Purchase or rental of land;
    3. Purchase or rental of vehicles;
    4. Cost of application preparation;
    5. Charging for services to public housing/HOPE VI development 
residents and FSS participants; and
    6. Incurring other costs that are not allowable under the HOPE VI 
NOFA grant award and are not stated as allowable under this NN NOFA.
    C. Threshold Requirements. Match. HUD is required by the Quality 
Housing and Work Responsibility Act (Sec. 24(c)(1)(A), 42 U.S.C. 
1437v(c)(1)(A)) to include the requirement for matching funds for all 
HOPE VI related grants. All applicants are required to have in place a 
5 percent match in cash or in-kind donations. The match is a threshold 
requirement. Applicants who do not demonstrate the minimum 5 percent 
match will fail the threshold requirement and will not receive further 
consideration for funding. The match may include any funds or in-kind 
services that were included in the HOPE VI NOFA application, provided 
that such funds/services comply with the match requirements stated in 
this section. Match donations must be firmly

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committed. ``Firmly committed'' means that the amount of match 
resources and their dedication to Neighborhood Networks activities must 
be explicit, in writing, and signed by a person authorized to make the 
commitment. Letters of commitment or Memoranda of Understanding (MOU) 
must be on organization letterhead and signed by a person authorized to 
make the stated commitment whether it be in cash or in-kind services. 
The letters of commitment/MOUs must indicate the annual level and/or 
amount of commitment in dollars and indicate how the commitment will 
relate to the proposed program. The commitment must be in place at the 
time of award. The applicant may propose to use its own, non-public 
housing grant funds, e.g., Community Development Block Grant (CDBG), to 
meet the match requirement. You must accompany this letter with 
documentation on how the match relates to your Neighborhood Networks 
program. Applicant staff time is not an eligible cash or in-kind match. 
Applicants shall annotate the HUD-424-CB, Grant Application Detailed 
Budget, listing the sources and amount of each match. If the commitment 
letter/MOU for any match funds/in-kind services is not included in the 
application and provided before the NOFA due date, the related match 
will not be considered. This is not a technical deficiency and cannot 
be corrected during the corrections period.
    D. Eligible Participants. More than 50 percent of program 
participants must be residents of public housing.
    E. Resident Assessment. Applicants are required to assess 
residents' needs and interests so that program activities are designed 
to address their needs. This information may be limited to the 
requirements in the program summary.
    F. Sustainability. Applicants shall submit a program summary with 
their application, required under Rating Factor 3, which shall indicate 
the level and type of expenditures over the grant term, contributions 
from partners, and efforts applicants will make to ensure the NNC will 
be sustainable once the grant term expires.
    G. Partnering. Applicants should partner with local businesses, 
schools, libraries, banks, employment agencies, or other organizations, 
which will help applicants, deliver supportive services, and fulfill 
residents' needs. These organizations can provide additional expertise, 
volunteers, office supplies, training materials, software, equipment, 
and other resources.
    H. Periodic Reporting: Grantees will be required to submit 
Neighborhood Networks information in the CSS portion of the HOPE VI 
Quarterly Progress Report. HUD will furnish information requirements to 
the grantees upon assignment of an OMB Paperwork Reduction Act number 
to the information collection.
    I. Final Report. The grantees shall submit a final report, which 
will include a financial report and a narrative evaluating overall 
performance against its program summary and HOPE VI CSS Plan. Grantees 
shall use quantifiable data to measure performance against goals and 
objectives outlined in its application. The financial report shall 
contain a summary of all expenditures made from the beginning of the 
grant agreement to the end of the grant agreement and shall include any 
unexpended balances. The final narrative and financial report shall be 
due to HUD 90 days after the full expenditure of funds or when the 
Neighborhood Networks program activities are complete.
    J. Final Audit. Grantees are required to obtain a complete final 
closeout audit of the grant's financial statements by a certified 
public accountant (CPA), in accordance with generally accepted 
government audit standards. A written report of the audit must be 
forwarded to HUD within 60 days of issuance. Grant recipients must 
comply with the requirements of 24 CFR 84 or 24 CFR 85 as stated in OMB 
Circulars A-110, A-87, and A-122, as applicable.

V. Definition of Terms

    Community and Supportive Services are services that are described 
in Section XI of the HOPE VI NOFA.
    Neighborhood Networks Centers (NNCs) are community centers or rooms 
where computer and network hardware and software are set up and 
training in a wide array of digital-related services is provided.
    HOPE VI NOFA means the Notice of Funding Availability for 
Revitalization of Severely Distressed Public Housing HOPE VI 
Revitalization Grants; Fiscal Year 2002, as published in the Federal 
Register on July 31, 2002, page 49766 to 49791, Docket Number FR-4768-
N-01.
    Match. Means at least 5 percent of the grant amount is required as 
the grant match. See details in Section IV(C) of this NN NOFA.
    Neighborhood Networks Coordinator (NNC Coordinator) is a person who 
is responsible for coordinating the activities proposed for this NN 
NOFA to ensure that their implementation will achieve the overall grant 
goals and objectives.
    Nonprofit organization is an organization that is exempt from 
federal taxation. A nonprofit can be organized for the following 
purposes: charitable, religious, educational, scientific, and literary 
and others. In order to qualify, an organization must be a corporation, 
community chest, fund, or foundation. An individual or partnership will 
not qualify. To obtain nonprofit status, qualified organizations must 
file an application with the Internal Revenue Service (IRS) and receive 
designation as such by the IRS. For more information, go to http://www.irs.gov. Proposed subgrantees that are in the process of applying 
for nonprofit status, but have not yet received nonprofit designation 
from the IRS on the application due date, will not be considered 
nonprofit organizations.
    Owner entity is the legal entity that holds title to real property 
that contains public housing units.
    Person with disabilities means a person who:
    1. Has a condition defined as a disability in section 223 of the 
Social Security Act;
    2. Has a developmental disability as defined in section 102 of the 
Developmental Disabilities Assistance Bill of Rights Act; or
    3. Is determined to have a physical, mental, or emotional 
impairment which:
    a. Is expected to be of long-continued and indefinite duration;
    b. Substantially impedes his or her ability to live independently; 
and
    c. Is of such a nature that such ability could be improved by more 
suitable housing conditions.
    4. The term ``person with disabilities'' may include persons who 
have acquired immunodeficiency syndrome (HIV/AIDS) or any conditions 
arising from the etiologic agent for AIDS. In addition, no individual 
shall be considered a person with disabilities, for purposes of 
eligibility for low-income housing, solely on the basis of any drug or 
alcohol dependence.
    5. The definition provided above for persons with disabilities is 
the proper definition for determining program qualifications. However, 
the definition of a person with disabilities contained in section 504 
of the Rehabilitation Act of 1973 and its implementing regulations must 
be used for purposes of reasonable accommodations.
    Procured developer is a legal entity that has a contract or 
``Developer Agreement'' with a Public Housing Agency (PHA) to finance, 
rehabilitate and/or construct housing units, and, sometimes, to provide 
community and supportive services for a HOPE VI grantee.
    Project is the same as ``low-income housing project'' as defined in 
section 3(b)(1) of the United States Housing Act

[[Page 48520]]

of 1937 (42 U.S.C. 1437 et. seq.) (1937 Act).

VI. Selection Process

    A. Application Selection Process. Three levels of review will be 
conducted: (1) A screening to determine if you are eligible to apply 
for this funding category and whether your application submission is 
complete, on time, and meets threshold; (2) a technical review by an 
individual reviewer to rate your application based on the five rating 
factors provided in this section; and (3) a technical review by a 
review committee to ensure uniform rating treatment by the individual 
reviewers. HUD will select for grant award the highest ranked 
application first and continue down in ranking until funds are 
exhausted.
    B. Response to Factors as Narrative. As explained in Section I.E., 
Application Format your responses to the rating factors constitute the 
narrative portion of the application. The rating factor responses 
should include information and references to the program summary that 
is required under Rating Factor 3 and other documentation in the 
application. The factors cover key personnel, target audience, services 
and activities, how the services/activities match the needs of the 
target audience, program evaluation, and financial controls. A 
narrative separate from the rating factor responses will not be 
reviewed. Repeating information is not necessary.
    C. Factors for Award Used to Evaluate and Rate Neighborhood 
Networks Applications. The factors for rating and ranking applicants 
and maximum points for each factor are provided below. The maximum 
number of points available for this program is 50. In order to be 
awarded a grant under this NN NOFA, the applicant must score a minimum 
of 35 points. (Two extra EZ/EC bonus points were already included in 
the award of the HOPE VI NOFA and will not be included in this NN 
NOFA).

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (12 Points)

    A. Description. This factor addresses whether the applicant has the 
organizational resources necessary to successfully implement the 
proposed activities within the grant period. In rating this factor, HUD 
will consider the extent to which the proposal demonstrates that the 
applicant will have qualified and experienced staff dedicated to 
administering the program.
    B. Proposed Program Staffing. Staff Experience (4 Points).
    1. The knowledge and experience of your proposed NNC Coordinator, 
staff, subcontractors, subgrantees, and other partners in planning and 
successfully managing programs similar to the Neighborhood Networks 
program for which funding is being requested. Experience will be judged 
in terms of recent, relevant, and successful experience of your team to 
undertake eligible program activities. In rating this factor, HUD will 
consider experience within the last 5 years to be recent; experience 
should relate specific activities and specific accomplishments.
    2. Scoring: a. If your proposed team has experience working in both 
computer-related and supportive service programs, you may receive up to 
4 points.
    b. If your team has experience in only one area, you may receive up 
to a maximum of 2 points for this subfactor.
    c. If your staff has experience in neither area, you will receive a 
score of 0 points for this subfactor.
    C. Staff Capacity (4 Points). 1. You will be evaluated based on 
whether you, your subcontractors, and partners have sufficient 
personnel, or will be able to quickly access enough qualified experts 
or professionals, to deliver the proposed activities in a timely and 
effective fashion.
    2. Scoring:
    a. If you have staff and partners in place to begin the proposed 
work immediately, you will receive up to a maximum of 4 points;
    b. If you have staff and partners in place to begin the proposed 
work three months after award, you will receive up to a maximum of 2 
points;
    c. If you have staff and partners in place to begin the proposed 
work six months after award, you will receive up to a maximum of 1 
point; and
    d. If you will not have the staff and partners in place within six 
months, you will receive 0 points.
    D. Program Administration and Fiscal Management. (4 Points). 1. 
Describe how you will manage the program; how HUD can be sure that 
there is program and financial accountability; and describe staff/team 
members' roles and responsibilities. You must provide the following:
    a. A complete description of your fiscal management structure, 
including fiscal controls you have in place;
    b. A list of any findings (HUD Inspector General, management 
review, fiscal, etc.), material weaknesses and what you have done to 
address them.
    2. Scoring:
    a. If you show fiscal management controls that are adequate to 
manage a grant from this NN NOFA, and you do not have any outstanding 
findings, you will receive up to 4 points;
    b. If you show a program management structure and fiscal management 
controls that are adequate to manage a grant from this NN NOFA, but 
have outstanding findings (or do not address findings), you will 
receive up to 2 points; and
    c. If you do not describe your program management structure and 
fiscal management controls and show that they are adequate, you will 
receive 0 points.

Rating Factor 2: Need/Extent of the Problem (8 Points)

    A. Description. 1. This factor addresses the extent to which there 
is a need for funding your proposed program and your indication of the 
importance of meeting the need in the target area. In responding to 
this factor, you will be evaluated on the extent to which you describe 
and document the level of need for your proposed activities and the 
urgency in meeting the need.
    2. Contrast the number of low-income residents in the area around 
the existing or proposed NNC to availability of no-cost Neighborhood 
Networks type training currently in that area. State the sources of 
this information. You should document needs as they apply to the HOPE 
VI development's locally defined neighborhood.
    3. In responding to this factor, you should include:
    a. Public Housing Residents and Low-Income Families. The applicant 
should reference relevant pages in the program summary.
    b. Local Training Program Information. Information on the lack of 
Neighborhood Networks related training programs currently available and 
easily accessible to public housing residents. List no-cost training 
that is available through either the PHA or other local or state 
community organizations.
    B. Scoring: 1. If there are no computer and Internet facilities 
available in the HOPE VI development's locally defined neighborhood 
other than those located at public schools, you may receive up to 8 
points;
    2. If there is an insufficient amount of computer and Internet 
facilities available in the HOPE VI development's locally defined 
neighborhood, including library and public school availability, you may 
receive up to 4 points, depending upon the number of residents in need; 
and
    3. If there are sufficient computer and Internet facilities 
available in the HOPE VI development's locally defined neighborhood to 
fulfill the needs of your

[[Page 48521]]

Public Housing residents, you will receive 0 points.

Rating Factor 3: Soundness of Approach (15 Points)

    A. Description. 1. This factor addresses both the quality and cost-
effectiveness of your proposed program summary. Your factor response, 
including your program summary, must indicate a clear relationship 
between your proposed activities, the targeted population's needs, and 
the purpose of the program funding. Your program summary should 
include, at a minimum, the following:
    a. A description of the NNC(s) including the current or planned 
name and address of the NNC(s) and the name and phone number of the 
current or planned NNC managers (if there is only one NNC, the name of 
the NNC Coordinator);
    b. The focus of each NNC, i.e., whether services will include:
    i. Job skills training/employment;
    ii. Introduction to/familiarization with computers;
    iii. Internet access and access to local services;
    iv. Basic adult education, literacy, ESL, GED;
    v. Youth education;
    vi. Senior services;
    vii. Continuing education; and,
    viii. Recreation.
    c. PHA demographics, including:
    i. Total number of conventional family public housing units;
    ii. Total number of residents;
    iii. Number of adults 21-61 years old;
    iv. Number of adults 62 and older;
    v. Number of children 0-6 years old;
    vi. Number of children 7-13 years old;
    vii. Number of children 14-17 years old;
    viii. Number of young adults 18-20 years old;
    ix. Number with ESL (English as Second Language) needs;
    x. Percentage of single parent households; and
    xi. Percent that are public assistance recipients.
    d. Your objectives, including:
    i. The number of participants you will provide with access to 
technology and the Internet per year, broken out by age of the 
resident, on a yearly basis;
    ii. The number of participants you will provide with an opportunity 
to be involved in the planning, implementation, and daily maintenance 
of the NNC on a yearly basis;
    iii. The number of adult resident participants per year to which 
you will expand community based job training;
    iv. The number of participants per year whose training will prepare 
them for opportunities to telecommute;
    v. The number of participants per year to which you will teach 
Basic Skills and Increase Adult Education Level, including literacy, 
ESL, GED courses;
    vi. The number of school aged children per year for which you will 
improve academic achievement to the appropriate grade level each year 
by attempting to raise and maintain the educational level on 
standardized tests;
    vii. The number of useful ongoing linkages to local community 
groups that you will create each year. Include the names and functions 
of the groups. You may combine this list with your list of leveraged 
in-kind services and funds in Rating Factor 4, provided a reference is 
made thereto; and
    viii. The number of years it will take to create a self-sustaining 
NNC. Include evidence of financial planning to produce this result.
    e. Milestones for setting up or expanding the NNC(s), including:
    i. Construction start and finish;
    ii. Equipment procurement start and finish;
    iii. Staffing completion; and
    iv. Beginning date of classes and training.
    f. List and cost of hardware to be procured, including hardware 
that is accessible to persons with disabilities;
    g. The types and amounts of staff to be hired, e.g., the cost and 
number of hours for the Neighborhood Networks Coordinator, other paid 
staff (with their titles), volunteer staff, leverage staff; and
    h. Schedule for the Center, including days/hours open, classes, and 
open lab/free time on the computers.
    In rating this factor HUD will consider:
    B. Specific Services and/or Activities (12 points). 1. Description. 
Your rating factor response and program summary must describe the 
specific services and activities you plan to offer, who will benefit 
from them and how they will benefit from them. Refer to the program 
summary and tie specific services/activities to specific sub-groups, 
including persons with disabilities, within your public housing 
resident and low-income communities. Your rating factor response must 
indicate the types of activities and training programs you will offer 
which can help residents successfully transition from welfare to work 
and/or earn higher wages.
    2. Scoring: a. If you show a variety of courses that fulfill the 
needs of your public housing residents and participant subgroups in the 
following areas, you will receive up to 12 points.
    i. Computer and Internet knowledge as it relates to obtaining 
Community and Supportive Services;
    ii. Teaching participants how to improve their job hunting and 
employment skills, including obtaining specific, generally accepted 
training certifications; and
    iii. Providing training courses that build upon one another with 
the goal of teaching your public housing residents to independently use 
computers and the Internet to provide themselves with community, 
supportive, and self-sufficiency services.
    b. If you show a variety of courses that fulfill the needs of your 
public housing residents and participant subgroups in the following 
areas, you will receive up to 8 points.
    i. Teaching participants how to improve their job hunting and 
employment skills, including obtaining specific, generally accepted 
training certifications; and
    ii. Providing training courses that build upon one another with the 
goal of teaching your public housing residents to independently use 
computers and the Internet to provide themselves with community, 
supportive, and self-sufficiency services.
    c. If you show a variety of courses that fulfill the needs of your 
public housing residents and participant subgroups in the following 
areas, you will receive up to 4 points.
    i. Teaching participants how to improve their job hunting and 
employment skills, including obtaining specific, generally accepted 
training certifications.
    ii. General computer and Internet knowledge as it relates to 
obtaining Community and Supportive Services.
    d. If you do not show that the courses you offer fulfill the needs 
of your public housing residents, you will receive 0 points.
    C. Feasibility (3 points). 1. Description. This factor examines 
whether your overall application is logical, feasible, and likely to 
achieve its stated purpose during the term of the grant. You will be 
evaluated based on whether your application shows that you can 
communicate well with your public housing residents regarding computers 
and the Internet, whether you are using a logical approach in planning 
and implementing the program and whether the amount of funds requested 
is commensurate with the level of effort necessary to accomplish your 
goals and anticipated results.
    2. Scoring: a. If your application shows financial feasibility, the 
ability to work with the target group of residents and low-income 
families, a logical plan

[[Page 48522]]

to provide training courses, and that the amount of requested funds is 
commensurate with the level of effort necessary to accomplish your 
goals and anticipated results, you will receive up to 3 points.
    b. If your application shows financial feasibility and the ability 
to work with the target group of residents and low-income families, you 
will receive up to 2 points.
    c. If your application shows only financial feasibility, you will 
receive up to 1 point.
    d. If your application as a whole is not logical and shows poor 
planning, you will receive 0 points.

Rating Factor 4: Leveraging Resources (10 Points)

    A. Description. This factor addresses your ability to secure 
community resources that can be combined with HUD's grant resources to 
achieve program purposes. In rating this factor, HUD will look at the 
extent to which you partner, coordinate, and leverage your services 
with other organizations serving the same or similar populations.
    B. Leverage Description and Requirements. 1. Leverage may be cash 
or other resources/services that can be donated and may include: in-
kind services, contributions, or administrative costs provided to the 
applicant; funds from federal sources (not including public housing/
HOPE VI funds) as allowed by statute, including for example CDBG; funds 
from any state or local government sources; and funds from private 
contributions.
    2. Leverage funds and in-kind services (``donations'') must be 
firmly committed. ``Firmly committed'' means that the amount of 
leverage resources and their dedication to Neighborhood Networks 
activities must be explicit, in writing, and signed by a person 
authorized to make the commitment. Letters of commitment or Memoranda 
of Understanding (MOU) must be on organization letterhead and signed by 
a person authorized to make the stated commitment whether it be in cash 
or in-kind services. The letters of commitment/MOUs must indicate the 
annual level and/or amount of commitment in dollars and indicate how 
the commitment will relate to the proposed Neighborhood Networks 
program.
    3. Commitment documents must be submitted to HUD with the NN NOFA 
application. If a commitment document is not included in the 
application, the donation will not be counted toward this factor. 
Missing commitment documents are not considered ``technical 
deficiencies'' and cannot be submitted after the due date.
    4. Donations that were included in your HOPE VI NOFA application 
that specifically apply to the Neighborhood Networks program described 
in your HOPE VI NOFA may also be included in your NN NOFA application. 
However, in order to be counted toward this rating factor, the related 
commitment document must fulfill the ``firmly committed'' requirements 
stated above.
    5. Public housing funds of any kind are not an eligible donation. 
Applicant staff time is not an eligible donation. Applicants shall 
annotate the HUD-424-CB to list the sources and amount of each 
donation.
    6. Points for this factor will be awarded based on the documented 
evidence of partnerships and firm commitments and the ratio of 
requested funding to the total proposed grant budget.
    7. Matching funds will be counted toward your leverage amount.
    C. Points will be assigned based on the following scale:

------------------------------------------------------------------------
  Leverage as percent of grant amount             Points awarded
------------------------------------------------------------------------
Up to 50 percent.......................  5 points
50 percent or more.....................  10 points
------------------------------------------------------------------------

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

    A. Description. 1. Under this rating factor, applicants must 
demonstrate how they propose to measure their success and outcomes. 
This rating factor requires that the applicant identify goals, interim 
and final program outcomes, and their time frames. Examples of outcomes 
are: increasing the homeownership rates among participants, increasing 
participants' financial stability (e.g., increasing assets of a 
household through savings), or increasing employment stability (e.g., 
whether persons assisted obtain or retain employment for one or two 
years during participation).
    2. Performance indicators should be objectively quantifiable and 
measure actual achievements against anticipated achievements. Your 
narrative should identify what you are going to measure, how you are 
going to measure it, and the steps you have in place to adjust your 
plans if outcomes are not met within established time frames.
    B. Scoring:
    1. If you show interim and final measurable outcomes, with time 
frames, for each of several participant sub-groups, and show plans for 
adjusting your program, you will receive up to 5 points.
    2. If you show interim and final measurable outcomes, with time 
frames, but without plans for adjusting your program, you will receive 
up to 2 points.
    3. If you do not show periodic and final measurable outcomes, with 
time frames, you will receive 0 points.

VII. Additional Requirements

    A. Compliance with Fair Housing and Civil Rights Laws. All 
applicants must comply with all fair housing and civil rights laws, 
statutes, regulations, and executive orders as enumerated in 24 CFR 
5.105(a). If an applicant: (a) Has been charged with a systemic 
violation of the Fair Housing Act by the Secretary alleging ongoing 
discrimination; (b) is the defendant in a Fair Housing Act lawsuit 
filed by the Department of Justice alleging an ongoing pattern or 
practice of discrimination; or (c) has received a letter of 
noncompliance findings under Title VI of the Civil Rights Act of 1964, 
section 504 of the Rehabilitation Act of 1973, or section 109 of the 
Housing and Community Development Act of 1974, the applicant's 
application will not be evaluated under this NOFA if, prior to the 
application deadline, the charge, lawsuit, or letter of findings has 
not been resolved to the satisfaction of the Department. HUD's decision 
regarding whether a charge, lawsuit, or letter of findings has been 
satisfactorily resolved will be based upon whether appropriate actions 
have been taken to address allegations of ongoing discrimination in the 
policies or practices involved in the charge, lawsuit, or letter of 
findings. Examples of actions that may be taken prior to the 
application deadline to resolve the charge, lawsuit, or letter of 
findings, include, but are not limited to a:
    1. Voluntary compliance agreement signed by all parties in response 
to the letter of findings;
    2. HUD-approved conciliation agreement signed by all parties; or
    3. Consent order or consent decree.
    B. Additional Nondiscrimination Requirements. You, the applicant, 
and your subrecipients must comply with the Americans with Disabilities 
Act of 1990 (42 U.S.C. 12101 et seq.) and Title IX of the Education 
Amendments Act of 1972 (20 U.S.C. 1681 et seq.).
    C. Conducting Business in Accordance with Core Values and Ethical 
Standards. Entities subject to 24 CFR parts 84 and 85 (most non-profit 
organizations and state and local governments or government agencies or 
instrumentalities who receive federal

[[Page 48523]]

awards of financial assistance) are required to develop and maintain a 
written code of conduct (see sections 84.42 and 85.36(b)(3)). 
Consistent with regulations governing specific programs, your code of 
conduct must: prohibit real and apparent conflicts of interest that may 
arise among officers, employees, or agents; prohibit the solicitation 
and acceptance of gifts or gratuities by your officers, employees, and 
agents for their personal benefit in excess of minimal value; and 
outline administrative and disciplinary actions available to remedy 
violations of such standards. If awarded assistance under this NOFA, 
you will be required, prior to entering into a grant agreement with 
HUD, to submit a copy of your code of conduct and describe the methods 
you will use to ensure that all officers, employees, and agents of your 
organization are aware of your code of conduct. Failure to meet the 
requirement for a code of conduct will prohibit you from receiving an 
award of funds from HUD.
    D. Ensuring the Participation of Disadvantaged Firms. The 
Department is committed to ensuring that small businesses, small 
disadvantaged businesses, minority firms, women's business enterprises, 
and labor surplus area firms participate fully in HUD's direct 
contracting and in contracting opportunities generated by HUD grant 
funds. Too often, these businesses still experience difficulty 
accessing information and successfully bidding on federal contracts. 
HUD regulations at 24 CFR 85.36(e) require recipients of assistance 
(grantees and subgrantees) to take all necessary affirmative steps in 
contracting for purchase of goods or services to assure that these 
disadvantaged firms are used when possible. Affirmative steps include:
    1. Placing disadvantaged firms on solicitation lists;
    2. Assuring that disadvantaged firms are solicited whenever they 
are potential sources;
    3. Dividing total requirements, when economically feasible, into 
smaller tasks or quantities to permit maximum participation by 
disadvantaged firms;
    4. Establishing delivery schedules, where the requirement permits, 
which encourage participation by disadvantaged firms;
    5. Using the services and assistance of the Small Business 
Administration and the Minority Business Development Agency of the 
Department of Commerce; and
    6. Requiring the prime contractor, if subcontracts are to be let, 
to take the affirmative steps listed in sections (a) through (e) above.
    E. Increasing the Participation of Faith-Based and other Community-
Based Organizations in HUD Program Implementation. HUD believes that 
grassroots organizations; e.g., civic organizations, congregations, and 
other community-based and faith-based organizations, have not been 
effectively utilized. These grassroots organizations have a strong 
history of providing vital community services. HUD encourages 
applicants to include grassroots, faith-based, and other community-
based organizations in contracting activities generated by HUD grant 
funds.
    F. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). You must comply with Section 3 of the Housing and Urban 
Development Act of 1968 (``Section 3'') 12 U.S.C. 1701u (Economic 
Opportunities for Low- and Very Low-Income Persons in Connection with 
Assisted Projects); and the HUD regulations at 24 CFR part 135, 
including the reporting requirements at subpart E. Section 3 requires 
recipients to ensure that, to the greatest extent feasible, training, 
employment, and other economic opportunities will be directed to low- 
and very low-income persons, particularly those who are recipients of 
government assistance for housing, and business concerns which provide 
economic opportunities to low- and very low-income persons.
    G. Accessible Technology. The Rehabilitation Act Amendments of 1998 
(the Act) apply to all electronic information technology (EIT) used by 
a recipient for transmitting, receiving, using, or storing information 
to carry out the responsibilities of any federal funds awarded. The 
Act's coverage includes, but is not limited to, computers (hardware, 
software, word-processing, 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, a recipient may provide an alternative 
means to allow the individual to use the information and data. However, 
no recipient will be required to provide information services to a 
person with disabilities at any location other than the location at 
which the information services is generally provided.

VIII. Application Content and Format

    A. Application Format. 1. The only narrative portion of the 
application is the applicant's response to the rating factors, 
including the program summary. To ensure proper credit for information 
applicable to each rating factor, the applicant should include page-
number references to the program summary, forms, and supporting 
documentation.
    2. The applicant's rating factor response should be as descriptive 
as possible, ensuring that every requested item is addressed. 
Applicants should make sure to include all requested information, 
according to the instructions of this NN NOFA. This will help ensure a 
fair and accurate review of your application. Although information from 
all parts of the application will be taken into account in rating the 
various factors, if supporting information cannot be found by the 
reviewer, it cannot be used to support a factor's rating.
    3. The Grant Application Detailed Budget (HUD-424-CB) contains 
information that will add to your application. To assist you in filling 
out the form, HUD has available for your voluntary use a Grant 
Application Detailed Budget Worksheet (HUD-424-CBW) and Grant 
Application Detailed Budget Worksheet Instructions (HUD-424-CBWI). They 
can be downloaded from HUD's Internet forms service, http://www.hudclips.org.
    4. The application is to be set up as follows:
TAB 1: Response for Rating Factor 1:
    [sbull] Narrative
    [sbull] Document References
TAB 2: Response for Rating Factor 2:
    [sbull] Narrative
    [sbull] Document References
TAB 3: Response for Rating Factor 3:
    [sbull] Narrative
    [sbull] Program Summary and Document References
TAB 4: Response for Rating Factor 4:
    [sbull] Document References
TAB 5: Response for Rating Factor 5:
    [sbull] Narrative
    [sbull] Document References
TAB 6: Leverage Commitment Documents:
    [sbull] Letters/MOUs from Partners attesting to leverage donations
TAB 7: Forms Required by this NN NOFA:
    [sbull] See Applicant Checklist for required forms

    5. Package the application as securely and simply as possible.
    6. Two-hole punch the pages at the top with a 2\3/4\'' center. Do 
not use a three ring binder.

[[Page 48524]]

IX. Corrections to Deficient Applications

    A. After the application due date, HUD may not, consistent with its 
regulations at 24 CFR part 4, subpart B, consider any unsolicited 
information, you the applicant, may want to provide. HUD may contact 
you to clarify an item in your application or to correct technical 
deficiencies. HUD may not seek clarification of items or responses that 
improve the substantive quality of your response to the rating factors. 
In order not to unreasonably exclude applications from being rated and 
ranked, HUD may contact applicants to ensure proper completion of the 
application and will do so on a uniform basis for all applicants. 
Examples of curable (correctable) technical deficiencies include 
failure to submit the proper certifications, or failure to submit an 
application that contains a signature by an authorized official. Except 
on the Application for Federal Assistance (HUD-424), which requires an 
original signature, photocopied signatures are acceptable. In each 
case, HUD will notify you in writing of a technical deficiency. HUD 
will notify applicants by facsimile and will make a follow-up phone 
call to the PHA contact listed on the Acknowledgment of Application 
Receipt (HUD-2993). Through this phone call, HUD will ensure that 
appropriate PHA staff is made aware of the facsimile notice. It is very 
important that the fax number listed on the Application Receipt is 
correct so that it gets to the right person on your staff. 
Clarifications or corrections of technical deficiencies in accordance 
with the information requested by HUD must be submitted within 48 hours 
of the date and time you receive HUD notification. (If the due date 
falls on a Saturday, Sunday, or Federal holiday, your correction must 
be received by HUD on the next day that is not a Saturday, Sunday, or 
Federal holiday.) The determination of when you received the notice of 
deficiency will be based on the confirmation of the facsimile 
transmission. If the deficiency is not corrected within this time 
period, HUD will reject the application as incomplete, and it will not 
be considered for funding.
    B. Unacceptable Applications. After the 48 hour technical 
deficiency correction period, HUD will disapprove all applications that 
it determines are not acceptable for processing. HUD's notification of 
rejection will state the basis for the decision.

X. Findings and Certifications

    A. Paperwork Reduction Act Statement. The information collection 
requirements contained in this NOFA have been approved by the Office of 
Management and Budget (OMB) in accordance with the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3510), and the assigned OMB control number 
is 2577-0208. An agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a valid control number.
    B. Environmental Impact. 1. A Finding of No Significant Impact with 
respect to the environment has been made in accordance with HUD 
regulations at 24 CFR part 50 that implement section 102(2)(C) of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332). The Finding 
of No Significant Impact is available for public inspection during 
regular business hours in the Office of the General Counsel, 
Regulations Division, Room 10276, U.S. Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410-0500.
    2. Environmental Review. a. If an environmental review of the site 
has not been conducted, the responsible entity, as defined in 24 CFR 
58.2(a)(7), must assume the environmental review responsibilities for 
projects being funded by this Neighborhood Networks NOFA. If you object 
to the responsible entity conducting the environmental review, on the 
basis of performance, timing, or compatibility of objectives, HUD will 
review the facts and determine who will perform the environmental 
review. At any time, HUD may reject the use of a responsible entity to 
conduct the environmental review in a particular case on the basis of 
performance, timing, or compatibility of objectives, or in accordance 
with 24 CFR 58.77(d)(1). If a responsible entity objects to performing 
an environmental review, or if HUD determines that the responsible 
entity should not perform the environmental review, HUD may designate 
another responsible entity to conduct the review or may itself conduct 
the environmental review in accordance with the provisions of 24 CFR 
part 50. You must provide any documentation to the responsible entity 
(or HUD, where applicable) that is needed to perform the environmental 
review.
    b. If you are selected for funding, you must have a Phase I 
environmental site assessment completed in accordance with the American 
Society for Testing and Material (ASTM) Standards E 1527-97, as 
amended, for each affected site. A Phase I assessment is required 
whether the environmental review is completed under 24 CFR part 50 or 
24 CFR part 58. The results of the Phase I assessment must be included 
in the documents that must be provided to the responsible entity (or 
HUD) for the environmental review. If the Phase I assessment recognizes 
environmental concerns or if the results are inconclusive, a Phase II 
environmental site assessment will be required.
    c. You may not undertake any actions with respect to the project, 
that are choice-limiting or could have environmentally adverse effects, 
including demolishing, acquiring, rehabilitating, converting, leasing, 
repairing, or constructing property proposed to be assisted under this 
NOFA, and you may not commit or expend HUD or local funds for these 
activities, until HUD has approved a Request for Release of Funds 
(RROF) following a responsible entity's environmental review under 24 
CFR part 58, or until HUD has completed an environmental review and 
given approval for the action under 24 CFR part 50. The costs of 
environmental reviews and hazard remediation are eligible costs under 
the HOPE VI Program.
    3. Flood Insurance. In accordance with the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128), your application may not 
propose to provide financial assistance for acquisition or construction 
(including rehabilitation) of properties located in an area identified 
by the Federal Emergency Management Agency (FEMA) as having special 
flood hazards, unless:
    a. The community in which the area is situated is participating in 
the National Flood Insurance program (see 44 CFR parts 59 through 79), 
or less than one year has passed since FEMA notification regarding such 
hazards; and
    b. Where the community is participating in the National Flood 
Insurance Program, flood insurance is obtained as a condition of 
execution of a Grant Agreement and approval of any subsequent 
demolition or disposition application.
    4. Coastal Barrier Resources Act. In accordance with the Coastal 
Barrier Resources Act (16 U.S.C. 3501), your application may not target 
properties in the Coastal Barrier Resources System.
    C. Catalog of Federal Domestic Assistance Numbers. The Federal 
Domestic Assistance number for this program is 14.866.
    D. Federalism Impact. Executive Order 13132 (captioned 
``Federalism'') prohibits, to the extent practicable and

[[Page 48525]]

permitted by law, an agency from promulgating a regulation that has 
Federalism implications and either imposes substantial direct 
compliance costs on state and local governments and is not required by 
statute, or preempts state law, unless the relevant requirements of 
section 6 of the Executive Order are met. None of the provisions in 
this NOFA will have Federalism implications, and they will not impose 
substantial direct compliance costs on state and local governments or 
preempt state law within the meaning of the Executive Order. As a 
result, the notice is not subject to review under the Order.
    E. Accountability in the Provision of HUD Assistance. Section 102 
of the Department of Housing and Urban Development Reform Act of 1989 
(HUD Reform Act) and the regulations 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, (57 FR 1942), HUD 
published a notice that also provides information on the implementation 
of section 102. HUD will comply with the documentation, public access, 
and disclosure requirements of section 102 with regard to the 
assistance awarded under this NOFA, as follows:
    1. Documentation and public access requirements. HUD will ensure 
that documentation and other information regarding each application 
submitted pursuant to this NOFA are sufficient to indicate the basis 
upon which assistance was provided or denied. This material, including 
any letters of support, will be made available for public inspection 
for a 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 at 24 CFR part 15. In addition, HUD will include the 
recipients of assistance pursuant to this NOFA in its Federal Register 
notice of all recipients of HUD assistance awarded on a competitive 
basis.
    2. Disclosures. HUD will make available for public inspection all 
applications and related documentation, including letters of support, 
for 5 years beginning not less than 30 days following the award or 
allocation. All reports, both applicant disclosures and updates, will 
be made available in accordance with the Freedom of Information Act (5 
U.S.C. 552) and HUD's implementing regulations at 24 CFR part 15.
    3. Applicant Debriefing. Beginning not less than 30 days after the 
awards for assistance are announced in the above mentioned Federal 
Register notice, and for not longer than 120 days after awards for 
assistance are announced, HUD will provide a debriefing to any 
applicant requesting a debriefing on their application. All requests 
for debriefings must be made in writing and submitted to the Grants 
Management Center at the address indicated in Section I of this NOFA 
under the paragraph entitled ``Address for Submitting Applications.''
    F. Section 103 HUD Reform Act. HUD will comply with section 103 of 
the Department of Housing and Urban Development Reform Act of 1989 and 
HUD's implementing regulations in subpart B of 24 CFR part 4 with 
regard to the funding competition announced today. These requirements 
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 section 103 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 section 103 and subpart B of 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.) Persons with hearing or speech challenges may access 
this telephone number via text telephone (TTY) by calling the toll-free 
Federal Information Relay Service at (800) 877-8339. For HUD employees 
who have specific program questions, such as whether particular subject 
matter can be discussed with persons outside HUD, the employee should 
contact the appropriate Field Office Counsel.
    G. Prohibition Against Lobbying Activities. Applicants for funding 
under this NOFA are subject to the provisions of section 319 of the 
Department of Interior and Related Agencies Appropriation Act for 
Fiscal Year 1991 (31 U.S.C. 1352) (the Byrd Amendment) and to the 
provisions of the Lobbying Disclosure Act of 1995 (Pub. L. 104-65, 
approved December 19, 1995).
    The Byrd Amendment, which is implemented in regulations at 24 CFR 
part 87, prohibits applicants for federal contracts and grants from 
using appropriated funds to attempt to influence federal executive or 
legislative officers or employees in connection with obtaining such 
assistance, or with its extension, continuation, renewal, amendment, or 
modification. The Byrd Amendment applies to the funds that are the 
subject of this NOFA. Therefore, applicants must file a certification 
stating that they have not made and will not make any prohibited 
payments and, if any payments or agreement to make payments of non-
appropriated funds for these purposes have been made, a form SF-LLL 
disclosing such payments must be submitted.
    The Lobbying Disclosure Act of 1995 (Pub. L. 104-65), approved 
December 19, 1995, which repealed section 112 of the HUD Reform Act, 
requires all persons and entities who lobby covered executive or 
legislative branch officials to register with the Secretary of the 
Senate and the Clerk of the House of Representatives and file reports 
concerning their lobbying activities.
    H. Lead-Based Paint. You must comply with lead-based paint testing 
and abatement requirements of the Lead-Based Paint Poisoning Prevention 
Act (42 U.S.C. 4821, et seq.). You must also comply with regulations at 
24 CFR part 35, 24 CFR 965.701, and 24 CFR 968.110(k), as they may be 
amended or revised from time to time. Unless otherwise provided, you 
will be responsible for testing and abatement activities. The National 
Lead Information Hotline is 1-800-424-5323.
    I. Labor Standards.
    1. Revitalization Grant Labor Standards.
    a. Davis-Bacon wage rates apply to development of any public 
housing rental units or homeownership units developed with HOPE VI 
grant funds and to demolition followed by construction on the site. 
Davis-Bacon rates are ``prevailing'' minimum wage rates set by the 
Secretary of Labor that all laborers and mechanics employed in the 
development, including rehabilitation other than nonroutine maintenance 
of a public housing project must be paid, as set forth in a wage 
determination that must be obtained by the PHA prior to bidding on each 
construction contract. The wage determination and provisions requiring 
payment of these wage rates must be included in the construction 
contract.
    b. HUD-determined wage rates apply to:
    i. Operation (including nonroutine maintenance) of revitalized 
housing; and
    ii. Demolition followed only by filling in the site and 
establishing a lawn.
    2. Exclusions. Under Section 12(b) of the 1937 Act, wage rate 
requirements do not apply to individuals who:

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    a. Perform services for which they volunteered;
    b. Do not receive compensation for those services or are paid 
expenses, reasonable benefits, or a nominal fee for the services; and
    c. Are not otherwise employed in the work involved (24 CFR part 
70).
    3. If other federal programs are used in connection with your HOPE 
VI activities, labor standards requirements apply to the extent 
required by the other federal programs on portions of the project that 
are not subject to Davis-Bacon rates under the 1937 Act.
    J. Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Toward Government Contractors' Labor Relations on 
Federal and Federally Funded Construction Contracts. Compliance with 
HUD regulations at 24 CFR 5.108 implementing Executive Order 13202 is a 
condition of receipt of assistance under this NOFA.
    K. Procurement of Recovered Materials. State agencies and agencies 
of a political subdivision of the state, including PHAs, 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.

XI. Authority

    The funding authority for Neighborhood Networks for grantees which 
were awarded Fiscal Year 2002 HOPE VI Revitalization grants is provided 
by the Fiscal Year 2002 Department of Veterans Affairs and Housing and 
Urban Development and Independent Agencies Appropriations Act, 2002 
(Pub. L 107-73, approved on November 26, 2001) (FY 2002 HUD 
Appropriations Act) under Section 24(d)(1)(G).
    The program authority for the HOPE VI Program is section 24 of the 
1937 Act (42 U.S.C. 1437v), as added by section 535 of the Quality 
Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, 112 Stat. 
2461, approved October 21, 1998).

    Date: August 5, 2003.
Paula O. Blunt,
General Deputy, Assistant Secretary for Public and Indian Housing.
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[FR Doc. 03-20673 Filed 8-12-03; 8:45 am]
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