[Federal Register Volume 68, Number 203 (Tuesday, October 21, 2003)]
[Notices]
[Pages 60178-60276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-26476]



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Part III





Department of Housing and Urban Development





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Notice of Funding Availability for Revitalization of Severely 
Distressed Public Housing; HOPE VI Revitalization and Demolition 
Grants, Fiscal Year 2003; Notice

  Federal Register / Vol. 68, No. 203 / Tuesday, October 21, 2003 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4861-N-01]


Notice of Funding Availability for Revitalization of Severely 
Distressed Public Housing; HOPE VI Revitalization and Demolition 
Grants, Fiscal Year 2003

AGENCY: Office of Public and Indian Housing, HUD.

ACTION: Notice of funding availability (NOFA).

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SUMMARY: This NOFA announces the availability of $574 million for the 
HOPE VI Program. Of this amount, approximately $447.8 million in FY 
2003 funds are available for the HOPE VI Revitalization Program and $40 
million for the HOPE VI Demolition Program. The remaining funds will be 
made available for other purposes including Neighborhood Networks, 
technical assistance and Housing Choice Voucher Assistance.

General Section

    The General Section of the HOPE VI NOFA contains information 
that applies to both the HOPE VI Revitalization and Demolition 
Programs. Detailed information on the specific guidance for each of 
these programs is included in separate sections of this NOFA. Unless 
otherwise noted, citations refer to the General Section.

I. Program Overview

    (A) Purpose of the Program. In accordance with section 24(a) of the 
United States Housing Act of 1937 (1937 Act), the purpose of HOPE VI 
Revitalization grants is to assist public housing agencies (PHAs) to:
    (1) Improve the living environment for public housing residents of 
severely distressed public housing projects through the demolition, 
rehabilitation, reconfiguration, or replacement of obsolete public 
housing projects (or portions thereof);
    (2) Revitalize sites (including remaining public housing dwelling 
units) on which such public housing projects are located and contribute 
to the improvement of the surrounding neighborhood;
    (3) Provide housing that will avoid or decrease the concentration 
of very low-income families; and
    (4) Build sustainable communities.
    (B) Available Funds. Approximately $447.8 million for HOPE VI 
Revitalization grants and $40 million for HOPE VI Demolition grants, in 
accordance with Section II below.
    (C) Eligible Applicants. Public Housing Authorities that have 
severely distressed housing in their inventory and are otherwise in 
conformance with the threshold requirements provided in Section III of 
this NOFA. PHAs that only administer Housing Choice Voucher (Section 8, 
HCV) Programs and Tribal PHAs and Tribally-Designated Housing Entities 
are not eligible to apply.
    (D) Application Deadline. Revitalization grant applications are due 
on January 19, 2004, as described in Section III(B) of this NOFA. 
Demolition grant applications are due on February 18, 2004, as 
described in Section III(B) of this NOFA.
    (E) Authority. (1) The funding authority for HOPE VI Revitalization 
and Demolition grants under this HOPE VI NOFA is provided by the 
Consolidated Appropriations Resolution, 2003 (Pub. L. 108-7, approved 
on February 20, 2003) under the heading ``Revitalization of Severely 
Distressed Public Housing (HOPE VI).''
    (2) The program authority for the HOPE VI Program is section 24 of 
the U.S. Housing Act of 1937 (42 U.S.C. 1437v), as amended by section 
215 of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act of 2003 (Pub. 
L. 108-7, approved February 22, 2003).

II. Allocation of HOPE VI Funds

------------------------------------------------------------------------
                                                        Funds available
                                    Allocation  of     for award in this
       Type of assistance                funds           HOPE VI NOFA
                                     (approximate)       (approximate)
------------------------------------------------------------------------
Revitalization Grants...........        $447,750,000        $447,750,000
Demolition Grants...............          40,000,000          40,000,000
Neighborhood Networks...........           5,000,000  ..................
Technical Assistance............           6,250,000  ..................
Housing Choice Voucher                    75,000,000
 Assistance.....................
                                 ---------------------
    Total.......................         574,000,000         487,750,000
------------------------------------------------------------------------

    (A) Revitalization Grants. Approximately $447.8 million of the FY 
2003 HOPE VI appropriation has been allocated to fund HOPE VI 
Revitalization grants and will be awarded in accordance with this HOPE 
VI NOFA.
    (B) Demolition Grants. Approximately $40 million of the FY 2003 
HOPE VI appropriation has been allocated to fund HOPE VI Demolition 
grants and will be awarded in accordance with this HOPE VI NOFA.
    (C) Neighborhood Networks. The FY 2003 appropriation for HOPE VI 
allocated $5 million for a Neighborhood Networks initiative for 
activities authorized in section 24(d)(1)(G) of the Act, which provides 
for the establishment and operation of computer centers in public 
housing for the purpose of enhancing the self-sufficiency, 
employability, and economic self-reliance of public housing residents 
by providing them with onsite computer access and training resources. 
The availability of these funds will be announced in a separate NOFA 
and, in accordance with the appropriation, they will be awarded to PHAs 
on a competitive basis. PHAs that receive HOPE VI Revitalization grant 
funds under this NOFA are required to establish Neighborhood Networks 
and may use funds awarded under this NOFA for this purpose.
    (D) Technical Assistance. The FY 2003 appropriation for HOPE VI 
allocated $6.25 million to provide technical assistance and contract 
expertise in the HOPE VI program, to be provided directly or indirectly 
by grants, contracts, or cooperative agreements, including training and 
cost of necessary travel for participants in such training, by or to 
officials and employees of HUD and of PHAs, and to residents. The 
Office of Public Housing Investments will administer technical 
assistance funds.
    (E) Housing Choice Voucher Assistance. The cost of Housing Choice 
Voucher (HCV) assistance that will be provided to FY 2003 HOPE VI 
Revitalization and Demolition grantees will come from the FY 2003 HOPE 
VI appropriation. Approximately $75 million will be allocated for such 
assistance. If this amount is more than the amount necessary, the 
remaining

[[Page 60179]]

funds will be used for eligible activities under Section 24 of the Act 
and made available for obligation before September 30, 2004.
    (1) If you anticipate that you will need HCV assistance in order to 
carry out necessary relocation in conjunction with proposed 
revitalization during FY 2004, your application must include the number 
of vouchers you will need, both in total and in FY 2004, and a HCV 
application.
    (2) If you will need HCV assistance in fiscal years beyond FY 2004 
for revitalization or demolition that is being carried out in phases, 
or if you have unused Housing Choice Vouchers that are available to be 
used for HOPE VI-related relocation in FY 2003 but will need more for 
subsequent years, you must request additional vouchers only as needed 
during the appropriate fiscal years.
    (3) HCV assistance cannot be awarded or used to relocate residents 
from units that are to be demolished until HUD has approved those units 
for demolition.
    (4) If you have previously received HCV assistance to relocate 
residents from the targeted severely distressed units, you may still 
apply for a HOPE VI Revitalization grant to physically replace those 
same units, or a HOPE VI Demolition Grant to demolish the units without 
replacement.
    (5) You may request HCV assistance for the relocation of families 
who intend to move back to the site upon completion of the demolition 
and revitalization of the severely distressed project. Such families 
are not required to move back to the site if they prefer to keep the 
HCV assistance after revitalization activities are completed.
    (6) You may request HCV assistance for all units covered under a 
HOPE VI Revitalization or Demolition application to relocate residents 
from units that will not be replaced with hard units.
    (7) Housing Choice Vouchers are available as replacement units for 
all units that will be demolished, sold, or otherwise disposed of at 
the severely distressed project(s), minus the number of HOPE VI-
eligible replacement units otherwise to be provided under section 
24(d)(1)(J) in connection with said project.
    (8) In accordance with Section III(D)(8) of the Revitalization 
Section of this NOFA, to the extent that you need Housing Choice 
Vouchers for relocation purposes in connection with HOPE VI grant funds 
under this NOFA, in an amount that exceeds the number of units to be 
demolished, sold, or otherwise disposed of at the severely distressed 
project, you should apply for Housing Choice Vouchers in accordance 
with the separate funding notices to be issued by HUD.
    (9) You must have a 97 percent lease-up rate or budget authority 
utilization rate for your current voucher program in order not to have 
your requested number of relocation/replacement vouchers reduced by 
HUD.
    (F) HUD will not use any funds from this HOPE VI NOFA to fund any 
non-selected HOPE VI Revitalization or Demolition applications 
submitted in previous years. Only applications submitted under this FY 
2003 HOPE VI NOFA will be considered for funding.

III. Application Submission Information

(A) Applications
    (1) The HOPE VI Revitalization application and the HOPE VI 
Demolition application are appended to this NOFA. Each provides 
explicit, specific instructions as to the format and contents of your 
HOPE VI application. Your application must conform to the requirements 
of this NOFA and follow the format described in the application. The 
applications are designed to guide you through the application process 
and ensure that your application addresses all of the requirements of 
this NOFA. Please note that if there is a discrepancy between 
information provided in the application and the information provided in 
the NOFA, the information in the NOFA prevails.
    (2) The HOPE VI Revitalization application and the HOPE VI 
Demolition application will be available from the HOPE VI Web site at 
www.hud.gov/hopevi and the HUD home page at www.hud.gov/grants. They 
will not be made available in hardcopy form.
    (3) Signatures. Unless otherwise indicated, the Executive Director 
of the applicant PHA, or his or her designate, must sign each form or 
certification, whether part of an Attachment or a Standard 
Certification. Signatures need not be original in the copy version(s) 
of the applications.
(B) Application Submission Timeframes
    (1) Revitalization Applications. Revitalization grant applications 
are due at HUD Headquarters on January 19, 2004.
    (2) Demolition Applications. Demolition grant applications will 
only be accepted from January 5, 2004, through February 18, 2004. 
Applications received before January 5, 2004, will be returned to the 
applicant and will not be considered unless resubmitted on or after 
January 5, 2004, through February 18, 2004. Applications submitted 
outside of this timeframe will not be reviewed by HUD and will not be 
eligible for funding.
    (3) These application deadlines are firm. Your application(s) must 
arrive at HUD by 5:15 p.m. on the due date. 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.
(C) Application Delivery
    (1) Revitalization 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.
    (2) Demolition Applications. Send the original 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.
    (3) Applications Sent by Overnight Delivery. It is strongly 
recommended that you send your application by an overnight carrier, at 
least two days before the application due date. You may use only 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 to Friday. If these companies do not serve 
your area, you must submit your application via USPS.
    (4) Hand Carried Applications. Due to new security measures, HUD 
will no longer accept hand-carried applications.
    (5) You must send one copy of your application (Revitalization and/
or Demolition) to your HUD Field Office. The application sent to 
Headquarters will be the one that must meet the deadline. If the HUD 
Field Office receives an application on time, but the application is 
not received on time at Headquarters, it will not be considered.
    (6) HUD will not accept for review and evaluation any applications 
sent by facsimile (fax). Also, do not submit resumes or videos.

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(D) Technical Assistance
    (1) Before the application due date, HUD staff will be available to 
provide you with general guidance and technical assistance. HUD staff, 
however, 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- or speech-impairments may access this telephone number 
via text telephone (TTY) by calling the toll-free Federal Information 
Relay Service at (800) 877-8339.
    (2) Frequently asked questions, clarifications, any technical 
corrections to the NOFA, and all materials related to this NOFA will be 
posted to the HUD home page at www.hud.gov/offices/adm/grants/otherhud.cfm, and on the HOPE VI Web site at www.hud.gov/hopevi. Any 
technical corrections will also be published in the Federal Register 
and posted to the above Web sites. Applicants are responsible for 
monitoring these sites during the application preparation period.

IV. Severe Distress of Targeted Public Housing

    (A) Threshold. Severe Distress. (1) The public housing project or 
building in a project targeted by a HOPE VI Revitalization or 
Demolition application must be severely distressed. In accordance with 
section 24(j)(2) of the 1937 Act, the term ``severely distressed public 
housing'' means a public housing project (or building in a project):
    (a) That:
    (i) Requires major redesign, reconstruction or redevelopment, or 
partial or total demolition, to correct serious deficiencies in the 
original design (including inappropriately high population density), 
deferred maintenance, physical deterioration or obsolescence of major 
systems, and other deficiencies in the physical plant of the project;
    (ii) Is a significant contributing factor to the physical decline 
of, and disinvestment by public and private entities in, the 
surrounding neighborhood;
    (iii) (A) Is occupied predominantly by families who are very low-
income families with children, are unemployed, and dependent on various 
forms of public assistance; or (B) has high rates of vandalism and 
criminal activity (including drug-related criminal activity) in 
comparison to other housing in the area;
    (iv) Cannot be revitalized through assistance under other programs, 
such as the Capital and Operating Funds Programs for public housing 
under the Act, or the programs under sections 9 and 14 of the 1937 Act 
(as in effect before the effective date under section 503(a) of the 
Quality Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, 
approved October 21, 1998, referred to as the Public Housing Reform 
Act)), because of cost constraints and inadequacy of available amounts; 
and
    (v) In the case of individual buildings, is in the Secretary's 
determination sufficiently separable from the remainder of the project 
of which the building is part to make use of the building feasible for 
purposes of section 24 of the 1937 Act; or
    (b) That was a project described in Section IV(A)(1)(a) that has 
been legally vacated or demolished, but for which HUD has not yet 
provided replacement housing assistance (other than tenant-based 
assistance).

V. Fair Housing and Equal Opportunity

    (A) Threshold. Compliance with Fair Housing and Civil Rights Laws. 
(1) All applicants and their subrecipients must comply with all Fair 
Housing and Civil Rights laws, statutes, regulations, and Executive 
Orders as enumerated in 24 CFR 5.105(a), as applicable.
    (2) As of the HOPE VI application due date, if you:
    (a) Have been charged with a systemic violation of the Fair Housing 
Act alleging ongoing discrimination;
    (b) 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
    (c) Have received a letter of non-compliance findings, identifying 
on-going or systemic noncompliance, under Title VI of the Civil Rights 
Act, section 504 of the Rehabilitation Act, or section 109 of the 
Housing and Community Development Act; and if the charge, lawsuit, or 
letter of findings has not been resolved to HUD's satisfaction before 
the application deadline stated in the NOFA, you may not apply for 
assistance under this NOFA. HUD will not rate and rank your 
application.
    (3) HUD's decision regarding whether a charge, lawsuit, or a letter 
of findings has been satisfactorily resolved will be based upon whether 
appropriate actions have been taken to address allegations of on-going 
discrimination in the policies or practices involved in the charge, 
lawsuit, or letter of findings. Examples of actions that may be taken 
prior to the application deadline to resolve the charge, lawsuit, or 
letter of findings, include but are not limited to:
    (a) A voluntary compliance agreement signed by all parties in 
response to the letter of findings;
    (b) A HUD-approved conciliation agreement signed by all parties;
    (c) A consent order or consent decree; or
    (d) A judicial ruling or a HUD Administrative Law Judge's decision 
that exonerates the respondent of any allegations of discrimination.
    (B) Threshold. Desegregation Orders. You must be in full compliance 
with any desegregation or other court order and Voluntary Compliance 
Agreements related to Fair Housing (e.g., Title VI of the Civil Rights 
Act of 1964, the Fair Housing Act, and section 504 of the 
Rehabilitation Act of 1973) that affects your public housing program 
and that is in effect on the date of application submission.
    (C) Additional Nondiscrimination Requirements. You and your 
subrecipients must comply with:
    (1) Title IX of the Education Amendments Act of 1972.
    (2) The Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
seq.)
    (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 (firms that pursue business development in 
areas designated as having high unemployment; see http://www.uses.doleta.gov/lsa.asp for more information) 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;

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    (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 (1) through (5) above.
    (E) HOPE VI grantees must comply with section 3 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701u) (Economic Opportunities 
for Low- and Very Low-Income Persons in Connection with Assisted 
Projects) and its implementing regulations at 24 CFR part 135. 
Information about section 3 can be found at HUD's section 3 Web site at 
www.hud.gov/fhe/sec3over.html.

VI. Grant Implementation Requirements

(A) Conflict of Interest
    (1) Prohibition. In addition to the conflict of interest 
requirements in 24 CFR part 85, no person who is an employee, agent, 
consultant, officer, or elected or appointed official of a Grantee and 
who exercises or has exercised any functions or responsibilities with 
respect to activities assisted under a HOPE VI Grant, or who is in a 
position to participate in a decision-making process or gain inside 
information with regard to such activities, may obtain a financial 
interest or benefit from the activity, or have an interest in any 
contract, subcontract, or agreement with respect thereto, or the 
proceeds thereunder, either for himself or herself or for those with 
whom he or she has family or business ties, during his or her tenure or 
for one year thereafter.
    (2) HUD-Approved Exception.
    (a) Standard. HUD may grant an exception to the prohibition in 
Section (1) above on a case-by-case basis when it determines that such 
an exception will serve to further the purposes of HOPE VI and its 
effective and efficient administration.
    (b) Procedure. HUD will consider granting an exception only after 
the Grantee has provided a disclosure of the nature of the conflict, 
accompanied by:
    (i) An assurance that there has been public disclosure of the 
conflict;
    (ii) A description of how the public disclosure was made; and
    (iii) An opinion of the Grantee's attorney that the interest for 
which the exception is sought does not violate state or local laws.
    (c) Consideration of Relevant Factors. In determining whether to 
grant a requested exception under Section (b) above, HUD will consider 
the cumulative effect of the following factors, where applicable:
    (i) Whether the exception would provide a significant cost benefit 
or an essential degree of expertise to the Revitalization Plan and/or 
Demolition Activities that would otherwise not be available;
    (ii) Whether an opportunity was provided for open competitive 
bidding or negotiation;
    (iii) Whether the person affected is a member of a group or class 
intended to be the beneficiaries of the Revitalization Plan and/or 
Demolition Plan and the exception will permit such person to receive 
generally the same interests or benefits as are being made available or 
provided to the group or class;
    (iv) Whether the affected person has withdrawn from his or her 
functions or responsibilities, or the decision making process, with 
respect to the specific activity in question;
    (v) Whether the interest or benefit was present before the affected 
person was in a position as described in Section (iii) above;
    (vi) Whether undue hardship will result either to the Grantee or 
the person affected when weighed against the public interest served by 
avoiding the prohibited conflict; and
    (vii) Any other relevant considerations.
    (B) Written Code of Conduct. Entities subject to 24 CFR parts 84 
and 85 are required to develop and maintain a written code of conduct 
(see sections 84.42 and 85.36(b)(3)). 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 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.
    (C) OMB Circulars and Administrative Requirements. You must comply 
with the following administrative requirements related to the 
expenditure of Federal funds. OMB Circulars can be found at 
www.whitehouse.gov/omb/circulars/index.html. Copies of the OMB 
Circulars may be obtained from EOP Publications, Room 2200, New 
Executive Office Building, Washington, DC 20503, telephone (202) 395-
7332 (this is not a toll free number). The Code of Federal Regulations 
can be found at www.access.gpo.gov/nara/cfr/index.html.
    (1) Administrative requirements applicable to PHAs are:
    (a) 24 CFR part 85 (Administrative Requirements for Grants and 
Cooperative Agreements to State, Local, and Federally Recognized Indian 
Tribal Governments), as modified by 24 CFR 941 or successor part, 
subpart F, relating to the procurement of partners in mixed finance 
developments.
    (b) OMB Circular A-87 (Cost Principles for State, Local, and Indian 
Tribal Governments);
    (c) 24 CFR 85.26 (audit requirements).
    (2) Administrative requirements applicable to non-profit 
organizations are:
    (a) 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Non-Profit Organizations);
    (b) OMB Circular A-122 (Cost Principles for Non-Profit 
Organizations);
    (c) 24 CFR 84.26 (audit requirements).
    (3) Administrative requirements applicable to for profit 
organizations are:
    (a) 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Non-Profit Organizations);
    (b) 48 CFR part 31 (contract cost principles and procedures);
    (c) 24 CFR 84.26 (audit requirements).
    (D) Labor Standards. The following standards must be implemented as 
appropriate in regards to HOPE VI grants.
    (1) 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

[[Page 60182]]

    (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:
    (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.
    (E) Lead-Based Paint. You must comply with lead-based paint 
evaluation and reduction requirements as provided for under 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 lead-based 
paint evaluation and reduction activities. The National Lead 
Information Hotline is 1-800-424-5323.
    (F) Internet Access. You must have access to the Internet and 
provide HUD with e-mail addresses of key staff and contact people.

VII. Environmental Review

    (A) Environmental Review. HUD notification that you have been 
selected to receive a HOPE VI grant constitutes only preliminary 
approval. Grant funds may not be released until the responsible entity 
completes an environmental review and you submit and obtain HUD 
approval of a request for release of funds and the responsible entity's 
environmental certification in accordance with 24 CFR part 58 and 
Section VII of this NOFA (or HUD has completed an environmental review 
under 24 CFR part 50 where HUD has determined to do the environmental 
review). Revitalization grantees are subject to additional requirements 
found at Section XVII of the Revitalization Section of this NOFA.
    (B) If you are selected for funding and an environmental review has 
not been conducted on the targeted site, the responsible entity, as 
defined in 24 CFR 58.2(a)(7), must assume the environmental review 
responsibilities for projects being funded by HOPE VI. 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.
    (C) 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 1527-900, 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.
    (D) 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 
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. In addition, you must 
carry out any mitigating/remedial measures required by the Responsible 
Entity (or HUD). If a remediation plan, where required, is not approved 
by HUD and a fully-funded contract with a qualified contractor licensed 
to perform the required type of remediation is not executed, HUD 
reserves the right to determine that the grant is in default.
    (E) The costs of environmental reviews and hazard remediation are 
eligible costs under the HOPE VI Program.
    (F) HUD's Environmental Web site is located at http://hudstage.hud.gov/offices/cpd/energyenviron/environment/index.cfm

VIII. Additional Governmental Requirements

    (A) The Catalog of Federal Domestic Assistance (CFDA) Number for 
HOPE VI is 14.866. The CFDA is a government-wide compendium of Federal 
programs, projects, services, and activities that provide assistance or 
benefits to the public.
    (B) Environmental Impact. A Finding of No Significant Impact with 
respect to the environment has been made in accordance with HUD 
regulations at 24 CFR part 50 that implement section 102(2)(C) of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332). The Finding 
of No Significant Impact is available for public inspection during 
regular business hours in the Office of the General Counsel, 
Regulations Division, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410-0500.
    (C) Federalism. Executive Order 13132 prohibits, to the extent 
practicable and permitted by law, an agency from promulgating policies 
that have federalism implications and either impose substantial direct 
compliance costs on State and local governments and are not required by 
statute, or preempt State law, unless the relevant requirements of 
section 6 of the Executive Order are met. This NOFA does not have 
federalism implications and does not impose substantial direct 
compliance costs on State and local governments or preempt State law 
within the meaning of the Executive Order.
    (D) Intergovernmental Review of Federal Programs. Executive Order 
12372 was issued to foster intergovernmental partnership and strengthen 
federalism by relying on State and local processes for the coordination 
and review of Federal financial assistance and direct Federal 
development. The Order allows each State to designate an entity to 
perform a State review function. The official listing of State Points 
of Contact (SPOC) for this review process can be found at: 
www.whitehouse.gov/omb/grants/spoc.html. States that are not listed on 
the Web site have chosen not to participate in the intergovernmental 
review process, and therefore do not have a SPOC. If you are located 
within

[[Page 60183]]

one of those States, you may send applications directly to HUD. If your 
State has a SPOC, you should contact them to see if they are interested 
in reviewing your application prior to submission to HUD. Please make 
sure that you allow ample time for this review process when developing 
and submitting your application.
    (E) Prohibition Against Lobbying Activities. You are subject to the 
provisions of section 319 of the Department of Interior and Related 
Agencies Appropriation Act for Fiscal Year 1991, 31 U.S.C. 1352 (the 
Byrd Amendment), which prohibits recipients of Federal contracts, 
grants, or loans from using appropriated funds for lobbying the 
executive or legislative branches of the Federal Government in 
connection with a specific contract, grant, or loan. You are required 
to certify, using the certification found at Appendix A to 24 CFR part 
87, that you will not, and have not, used appropriated funds for any 
prohibited lobbying activities. In addition, you must disclose, using 
Standard Form LLL, ``Disclosure of Lobbying Activities'' (SF LLL) any 
funds, other than federally appropriated funds, that will be or have 
been used to influence Federal employees, members of Congress, and 
congressional staff regarding specific grants or contracts. SF LLL is 
included in the HOPE VI Revitalization application and the Web sites 
listed in Section (III)(D)(2) of this NOFA. The Lobbying Disclosure Act 
of 1995 (Pub. L. 104-65), approved December 19, 1995, repealed section 
112 of the HUD Reform Act, and 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.
    (F) 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 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 5-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 in 24 CFR part 15.
    (2) Disclosures. HUD will make available for public inspection all 
HOPE VI grant applications for five years beginning not less than 30 
days following the grant award. Applications 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 5.
    (3) Publication of Recipients of HUD Funding. HUD's regulations at 
24 CFR 4.7 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 that is 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.
    (G) 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, 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 HUD 
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.
    (H) Paperwork Reduction Act Statement. The information collection 
requirements contained in this NOFA have been approved by the Office of 
Management and Budget in accordance with the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501-3520), and assigned OMB control number 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.
    (I) Delinquent Federal Debt. 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 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.
    (J) Pre-Award Accounting System Survey. HUD may arrange for a pre-
award accounting system survey of the applicant's financial management 
system in cases where the recommended applicant has no prior Federal 
support, 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.
    (K) False Statements. A false statement in an application is 
grounds for denial or termination of an award and possible punishment 
as provided in 18 U.S.C. 1001.
    (L) Name Check Review Process. 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 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 individuals, HUD reserves the right to: (a) 
Deny funding or consider suspension/termination of an award immediately 
for cause; (b) require the removal of any key individual from 
association with management of and/or implementation of the award; and 
(c) make appropriate provisions or revisions with respect to the method 
of payment and/or financial reporting requirements.
    (M) Executive Order 13202, Preservation of Open Competition and

[[Page 60184]]

Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects. Compliance with 
HUD regulations at 24 CFR 5.108 implementing Executive Order 13202 is a 
condition of receipt of assistance under this NOFA. Subgrantees are 
considered recipients of financial assistance for purposes of Sec.  
5.108.
    (N) Procurement of Recovered Materials. State agencies and agencies 
of a political subdivision of a state, including PHAs, that are using 
assistance under this NOFA for procurement, and any person contracting 
with such 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.
    (O) 31 U.S.C. 1552. In accordance with this statute, all FY 2003 
HOPE VI funds must be expended by September 30, 2009. Any funds that 
are not expended by that date will be cancelled and recaptured by the 
Treasury, and thereafter will not be available for obligation or 
expenditure for any purpose.

    Dated: October 14, 2003.
Michael Liu,
Assistant Secretary for Public and Indian Housing.

HOPE VI Revitalization Grants Section

    The Revitalization Grants Section of the HOPE VI NOFA contains 
information that applies to the HOPE VI Revitalization Program. 
Unless otherwise noted, citations refer to the HOPE VI 
Revitalization Grants Section.

I. Eligible Revitalization Activities

    HOPE VI Revitalization grants may be used for activities to carry 
out revitalization programs for severely distressed public housing in 
accordance with section 24(d) of the U.S. Housing Act of 1937 Act (1937 
Act). Revitalization activities approved by HUD must be conducted in 
accordance with the requirements of this NOFA.
    (A) Relocation, including reasonable moving expenses, for residents 
displaced as a result of the revitalization of the project. See section 
IX of this NOFA for relocation requirements.
    (B) Demolition of dwelling units and nondwelling facilities, in 
whole or in part.
    (1) Demolition is not a required element of a HOPE VI 
Revitalization Plan.
    (2) You may not carry out, nor permit others to carry out, the 
demolition of the Project or any portion of the Project until HUD 
approves, in writing, one of the following:
    (a) Information in your HOPE VI Revitalization Application, along 
with Supplemental Submissions requested by HUD after the award of the 
grant and a Request for Release of Funds submitted in accordance with 
24 CFR part 58. Section 24(g) of the 1937 Act provides that severely 
distressed public housing demolished pursuant to a Revitalization Plan 
is not required to be approved by a demolition application under 
section 18 of the 1937 Act or regulations at 24 CFR part 970. If you do 
not receive a HOPE VI Revitalization grant, the information in your 
application will not be used to process a request for demolition;
    (b) A demolition application under section 18 of the 1937 Act. 
While a section 18 approval is not required by HOPE VI demolition, you 
will not have to wait for demolition approval through your Supplemental 
Submissions, as described in section (a) above; or
    (c) A Section 202 Mandatory Conversion Plan, in compliance with 
regulations at 24 CFR part 971 and other applicable HUD requirements, 
if the project is subject to Mandatory Conversion (Section 202 of the 
Omnibus Consolidated Rescissions and Appropriations Act of 1996 Pub. L. 
104-134, approved on April 26, 1996). A Mandatory Conversion Plan 
concerns the removal of a public housing project from a PHA's 
inventory.
    (C) Disposition of a severely distressed public housing site, by 
sale or lease, in whole or in part, in accordance with section 18 of 
the 1937 Act and implementing regulations at 24 CFR part 970. A lease 
of one year or more that is not incident to the normal operation of a 
Project is considered to be a disposition that is subject to section 18 
of the 1937 Act.
    (D) Rehabilitation and physical improvement of public housing and/
or community facilities primarily intended to facilitate the delivery 
of community and supportive services for residents of the Project and 
residents of off-site replacement housing, in accordance with 24 CFR 
968.112(b), (d), (e), and (g)-(o) and 24 CFR 968.130 and 968.135(b) and 
(d) or successor regulations, as applicable.
    (E) Development.
    (1) For any standard (non-mixed finance) public housing development 
activity, (whether on-site reconstruction or off-site development), you 
must obtain HUD approval of a standard development proposal submitted 
under 24 CFR part 941 (or successor part).
    (2) For mixed-finance housing development, you must obtain HUD 
approval of a Mixed Finance Proposal, submitted under 24 CFR part 941, 
subpart F (or successor part and subpart).
    (3) For new construction of community facilities primarily intended 
to facilitate the delivery of community and supportive services for 
residents of the Project and residents of off-site replacement housing, 
you must comply with 24 CFR part 941 (or successor part). Information 
required for this activity must be included in either a Standard or 
Mixed Finance Development Proposal, as applicable.
    (F) Homeownership Activities.
    (1) For homeownership replacement units developed under a 
Revitalization Plan, you must obtain HUD approval of a homeownership 
proposal. The homeownership proposal must be consistent with the 80 
percent of Area Median Income (AMI) limitations and any other 
applicable provisions under the 1937 Act. (HUD publishes AMI tables for 
each family size in each locality annually. The income limit tables can 
be found at www.huduser.org/datasets/il/fmr01/index.html). See Section 
XI(D) of this NOFA (mixed-income communities) for more information 
about homeownership housing. Your homeownership proposal must conform 
to either:
    (a) Section 24(d)(1)(J) of the 1937 Act; or
    (b) Section 32 of the 1937 Act (see 24 CFR 906). Additional 
information on this option may be found at: www.hud.gov/offices/pih/centers/sac/homeownership.
    (2) Assistance may include:
    (a) Downpayment or closing cost assistance;
    (b) Provision of second mortgages; and/or
    (c) Construction or permanent financing for new construction, 
acquisition, or rehabilitation costs

[[Page 60185]]

related to homeownership replacement units.
    (G) Acquisition.
    (1) Rental Units. For acquisition of rental units in existing or 
new apartment buildings, single family subdivisions, etc., with or 
without rehabilitation, for use as public housing replacement units, 
you must submit a Development Proposal in accordance with CFR part 
941.304 (conventional development) or 24 CFR 941.606 (mixed finance 
development).
    (2) Land for Off-Site Replacement Units. For acquisition of land 
for public housing or homeownership development, you must comply with 
24 CFR part 941 or successor part.
    (3) Land for Economic Development-Related Activities.
    (a) You may use HOPE VI grant funds to acquire land for economic 
development-related activities if those activities specifically promote 
the economic self-sufficiency of residents.
    (b) With HUD approval, you may also use HOPE VI grant funds for 
limited infrastructure and site improvements associated with developing 
retail, commercial, or office facilities, such as rough grading and 
bringing utilities to (but not on) the site.
    (c) You may not use HOPE VI grant funds to pay hard construction 
costs or to buy equipment for retail, commercial, or non-public housing 
office facilities.
    (4) Acquisition Proposal. Before you may undertake acquisition 
activities with HOPE VI or other public housing funds, you must submit 
an acquisition proposal to HUD that meets the requirements of 24 CFR 
941.303.
    (H) Necessary management improvements, including transitional 
security activities.
    (I) Reasonable costs for administration, planning, technical 
assistance, and fees and costs, as established by HUD guidance and 
policies regarding cost controls. These costs are limited to the costs 
of implementing the Revitalization Plan, as specifically approved by 
HUD, such as fees for architectural and engineering work, program 
management (if any), and reasonable legal fees. See Section III(C)(3) 
for soft development costs guidelines.
    (J) Community and Supportive Services (CSS). The CSS Component of 
the HOPE VI Program encompasses all activities that are designed to 
promote upward mobility, self-sufficiency, and improved quality of life 
for the residents of the public housing project involved. The CSS 
Component is described in Section VIII of this NOFA.
    (K) Leveraging other resources, including additional housing 
resources, supportive services, job creation, and other economic 
development uses on or near the project that will benefit future 
residents of the site.

II. Summary of Threshold Requirements

    (A) The following are summary descriptions of threshold 
requirements that must be met in order for a HOPE VI Revitalization 
application to be considered for funding. These threshold requirements 
are described in more detail at the citations identified below. If the 
application fails to meet any one of these thresholds, HUD will not 
rate or rank the application, in accordance with Section XIV(B)(5) of 
this NOFA.
    (B) Unless specifically stated that an item is curable, the 
threshold items in this Section II(B) are not subject to Section 
XIV(B)(3) of this NOFA regarding the correction of deficiencies.
    (1) The applicant must qualify as an eligible applicant, as defined 
in Section IV(A)(1) of this NOFA.
    (2) HUD must receive the application by the deadline date and time, 
in accordance with Section III(B) of the General Section of this NOFA.
    (3) Standard certifications must be submitted in accordance with 
Section XIII(A)(4) of this NOFA. Deficiencies for this item are 
curable, in accordance with Section XIV(B)(3) of this NOFA.
    (4) The application must include a certification by a third party 
professional that the proposed costs meet the requirements of Section 
III(C) of this NOFA. Deficiencies for this item are curable, in 
accordance with Section XIV(B)(3) of this NOFA.
    (5) In accordance with Section III(D)(1) of this NOFA, each 
applicant may submit only one HOPE VI Revitalization application.
    (6) If an application proposes to revitalize more than one severely 
distressed public housing project, those projects must meet the 
requirements of Section III(D)(3) of this NOFA.
    (7) If an application proposes to revitalize a severely distressed 
scattered site project, the project must meet the requirements of 
Section III(D)(4) of this NOFA.
    (8) An application may not request HOPE VI Revitalization grant 
funds to revitalize units that were funded by an existing HOPE VI 
Revitalization grant, in accordance with Section III(D)(6) of this 
NOFA.
    (9) If an application proposes to use HOPE VI Revitalization funds 
to develop market rate units or affordable units which do not qualify 
as replacement units in accordance with Section III(D)(7) of this NOFA, 
the entire application will be disqualified.
    (10) If applicable, the application must meet the requirements of 
separability, as described in Section III(D)(11) of this NOFA.
    (11) If an applicant has been designated as troubled, it must meet 
the requirements of Section IV(A)(1) of this NOFA.
    (12) An applicant must have obligated at least 90 percent of its FY 
1999-2001 Capital Funds in accordance with Section IV(A)(2) of this 
NOFA.
    (13) An applicant which has one or more existing HOPE VI 
Revitalization grants will be disqualified if it has an open Inspector 
General (IG) or General Accounting Office (GAO) audit finding related 
to the HOPE VI or Capital Fund Programs as of the application due date, 
in accordance with Section IV(A)(3) of this NOFA.
    (14) An applicant must provide a signed certification that it has 
either initiated competitive procurement procedures to select a 
developer by the application deadline date or that it will act as its 
own developer, in accordance with Section IV(A)(4) of this NOFA. 
Deficiencies for this item are curable, in accordance with Section 
XIV(B)(3) of this NOFA.
    (15) An application must include a program schedule that, at a 
minimum, reflects the timeliness of construction requirements of 
Section XVI(C) of this NOFA, in accordance with Section IV(C).
    (16) An application must include a signed certification that the 
applicant or its procured property manager will implement the operation 
and management principles and policies in accordance with Section 
IV(A)(5) of this NOFA. Deficiencies for this item are curable, in 
accordance with Section XIV(B)(3) of this NOFA.
    (17) An application must include a certification signed by an 
engineer or architect that the targeted public housing project meets 
the definition of severe physical distress in accordance with Section 
V(A) of this NOFA. Deficiencies for this item are curable, in 
accordance with Section XIV(B)(3) of this NOFA.
    (18) An application must include commitments of resources in an 
amount that meets the match requirements of Section VI(A) of this NOFA.
    (19) An application must include a certification by the applicant 
that a resident training session and public meetings were held in 
accordance with Section VII(A) of this NOFA. Deficiencies for this item 
are curable, in accordance with Section XIV(B)(3) of this NOFA.
    (20) An application must include a certification that the applicant 
has

[[Page 60186]]

completed a HOPE VI Revitalization Relocation Plan and that the 
Relocation Plan is in compliance with the Uniform Relocation Act, as 
described in Section IX(D) of this NOFA. Deficiencies for this item are 
curable, in accordance with Section XIV(B)(3) of this NOFA.
    (21) An applicant must be in compliance with Fair Housing and Civil 
Rights Laws, in accordance with Section V(A) of the General Section of 
this NOFA.
    (22) An applicant must be in compliance with any desegregation or 
other court order related to Fair Housing, in accordance with Section 
V(B) of the General Section of this NOFA.
    (23) If an application includes a proposal to develop off-site 
replacement housing, the application must include evidence of site 
control of the proposed off-site locations, in accordance with Section 
XI(B)(4) of this NOFA.
    (24) If an application includes a proposal to develop market rate 
housing, it must include a preliminary market assessment letter, in 
accordance with Section XI(C) of this NOFA. Deficiencies for this item 
are curable, in accordance with Section XIV(B)(3) of this NOFA.
    (25) If you are proposing to use off-site parcels of land for 
housing development or other uses that are currently zoned for a 
purpose different than the one proposed in your revitalization plan, 
your application must include a certification from the appropriate 
local official documenting that all required zoning approvals have been 
secured for such parcels, and/or the actual zoning approval document 
for the parcel(s), in accordance with Section XI(E) of this NOFA.
    (26) An application must include a demonstration of the 
appropriateness of the proposal, in accordance with Section XII(A) of 
this NOFA.
    (27) An application must include a certification that, if awarded 
funds under this NOFA, the Grantee will submit a copy of their Code of 
Conduct which will also describe the methods they will use to ensure 
that all officers, employees, and agents of their organization are 
aware of the Code of Conduct, in accordance with Section VI(B) of the 
General Section of this NOFA. This certification may be provided in the 
form of a letter.
    (28) 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 Federal debt in accordance with 
Section VIII(I) of the General Section of this NOFA. HUD will determine 
compliance with this threshold.
    (29) An applicant must have a financial management system that 
meets Federal standards, in accordance with Section VIII(J) of the 
General Section of this NOFA. HUD will determine compliance with this 
threshold.
    (30) Applicants are subject to a name check review process, in 
accordance with Section VIII(L) of the General Section of this NOFA. 
HUD will determine compliance with this threshold.

III. Revitalization Grant Limitations

(A) Grant Amount Limitations
    (1) The total amount you may request in your Revitalization 
application is limited to $20 million or the sum of the amounts in 
Section III(A)(2), whichever is lower.
    (2) Total Development Cost (TDC). The ``TDC Limit'' refers to the 
maximum amount of HUD funding that HUD will approve for development of 
specific public housing units in a given location. The TDC limit 
applies only to the costs of development of public housing that are 
paid directly with HUD public housing funds; a PHA may exceed the TDC 
limit using non-public housing funds such as CDBG, HOME, low-income 
housing tax credit equity, etc. The HUD TDC Cost Tables are issued for 
each calendar year for the building type and bedroom distribution for 
the public housing replacement units. Use the TDC limits in effect at 
the time this HOPE VI NOFA is published when making your TDC 
calculations (24 CFR 941, final rule published in the Federal Register 
on December 10, 2002. The TDC final rule may be found in the Federal 
Register, Vol. 67, No. 237, 76096 and on the HOPE VI Web site).
    (a) The total cost of development, including relocation costs, is 
limited to the sum of:
    (i) HUD's TDC limits up to 100 percent of HUD's published TDC 
limits for the costs of demolition and new construction, multiplied by 
the number of HOPE VI public housing replacement units; and/or
    (ii) 90 percent of the TDC limits, multiplied by the number of 
public housing units after substantial rehabilitation and 
reconfiguration.
    (b) The TDC limit for a project is made up of the following 
components:
    (i) Housing Cost Cap (HCC): HUD's published limit on the use of 
public housing funds for the cost of constructing the public housing 
units, which includes unit hard costs, builder's overhead and profit, 
utilities from the street, finish landscaping, and a hard cost 
contingency. Estimates should take into consideration the Davis-Bacon 
wage rate requirements as described in Section VI(D) of the General 
Section of this NOFA.
    (ii) Community Renewal (CR): The balance of funds remaining within 
the project's TDC limit after the housing construction costs described 
in (i) above are subtracted from the TDC limit. This is the amount of 
public housing funds available to pay for PHA administration, planning, 
infrastructure and other site improvements, community and economic 
development facilities, acquisition, relocation, demolition, and 
remediation of units to be replaced on site, and all other development 
costs.
    (3) CSS. You may request an amount up to 15 percent of the total 
HOPE VI grant to pay the costs of CSS activities, as described in 
Section VIII(B) of this NOFA. These costs are in addition to (i.e., 
excluded from) the TDC calculation in Section (2) above.
    (4) Demolition and Site Remediation Costs of Unreplaced On-site 
Units. You may request an amount necessary for demolition and site 
remediation costs of units that will not be replaced on-site. This cost 
is in addition to (i.e., excluded from) the TDC calculation in Section 
(2) above.
    (5) Extraordinary Site Costs.
    (a) You may request a reasonable amount to pay extraordinary site 
costs, which are construction costs related to unusual pre-existing 
site conditions that are incurred, or anticipated to be incurred. If 
such costs are significantly greater than those typically required for 
similar construction, are verified by an independent, certified 
engineer or architect, and are approved by HUD, they may be excluded 
from the TDC calculation Section (2) above. Extraordinary site costs 
may be incurred in the remediation and demolition of existing property, 
as well as in the development of new and rehabilitated units. Examples 
of such costs include, but are not limited to: abatement of 
extraordinary environmental site hazards; removal or replacement of 
extensive underground utility systems; extensive rock and/or soil 
removal and replacement; removal of hazardous underground tanks; work 
to address unusual site conditions such as slopes, terraces, water 
catchments, lakes, etc.; and work to address flood plain and other 
environmental remediation issues. Costs to abate asbestos and lead-
based paint from structures are normal demolition costs. Extraordinary 
measures to remove lead-based paint that has leached into the soil 
would constitute an extraordinary site cost.

[[Page 60187]]

    (b) Extraordinary site costs must be justified and verified by a 
licensed engineer or architect who is not an employee of the housing 
authority or the city. The engineer or architect must provide his or 
her license number and State of registration. An Extraordinary Site 
Costs Certification is included in the HOPE VI application. If this 
certification is not included in the application after the cure period 
described in Section XIV(B)(3) of this NOFA, extraordinary site costs 
will not be allowed.
(B) Other Application Limitations
    You may not use HOPE VI Revitalization Grant funds to pay for any 
revitalization activities carried out on or before the date of the 
letter announcing the award of the HOPE VI Grant.
(C) Hard and Soft Development Costs Guidelines
    (1) Your projected hard development costs must be realistic, 
developed through the use of technically competent methodologies, 
including cost estimating services, and comparable to industry 
standards for the kind of construction to be performed in the proposed 
geographic area.
    (2) Your cost estimates must represent an economically viable 
preliminary plan for designing, planning, and carrying out your 
proposed activities in accordance with local costs of labor, materials, 
and services.
    (3) Your projected soft costs must be reasonable and comparable to 
industry standards. Upon award, soft costs will be subject to HUD's 
``Safe Harbor'' cost control standards. These safe harbors provide 
specific limitations on such costs as developer's fees (between 9 and 
12 percent), PHA administration/consultant cost (no more than 3 to 6 
percent of the total project budget), contractor's fee (6 percent), 
overhead (2 percent), and general conditions (6 percent). HUD's Cost 
Control and Safe Harbor Standards can be found on the Grant 
Administration page of the HOPE VI Web site at http://www.hud.gov/utilities/intercept.cfm?/offices/pih/programs/ph/hope6/grants/admin/safe_harbor.pdf.
    (4) Threshold: Your cost estimates must be certified to meet the 
standards of Sections (1) through (3) above by an independent cost 
estimator, architect, engineer, contractor, or other qualified third 
party professional.
    (5) If you are eligible for funding, HUD will delete any 
unallowable items from your budget and may reduce your grant 
accordingly, except as provided in Section III(D)(7) of this NOFA. (D) 
Site and Unit Requirements.
    (1) Threshold: One application. Each applicant may submit only one 
HOPE VI Revitalization application as described in this NOFA. If more 
than one application is submitted by a single applicant, all 
applications will be disqualified.
    (2) Threshold: One Project. Except as provided in Sections 
III(D)(3) and (4) below, each application must target one severely 
distressed public housing project (i.e., with one project number).
    (3) Threshold: Contiguous Projects. Each application may request 
funds for more than one project if those projects are immediately 
adjacent to one another or within a quarter-mile of each other. If you 
include more than one project in your application, you must provide a 
map that clearly indicates that the projects are within a quarter-mile 
of each other. If HUD determines that they are not, your application 
will be ineligible for funding.
    (4) Threshold: Scattered Site Projects. Your application may 
request funds to revitalize a scattered site public housing project. 
The sites targeted in an application proposing to revitalize scattered 
sites (regardless of whether the scattered sites are under multiple 
project numbers) must fall within an area with a one-mile radius. You 
may identify a larger site if you can show that all of the targeted 
scattered site units are located within the hard edges (e.g., major 
highways, railroad tracks, lakeshore, etc.) of a neighborhood. If you 
propose to revitalize a project that extends beyond a one-mile radius 
or is otherwise beyond the hard edges of a neighborhood, your 
application will be ineligible for funding.
    (5) Number of Units. You may request funds for as few or as many 
units as you wish in your application. HUD will review requests to 
revitalize projects with small numbers of units on an equal basis with 
those with large numbers of units.
    (6) Threshold: Previously-funded Sites. You may submit a 
Revitalization application that targets a project that is being 
revitalized or replaced under an existing HOPE VI Revitalization grant. 
However, you may not apply for new HOPE VI Revitalization funds for 
units in that project that were funded by the existing HOPE VI 
Revitalization grant or other HUD funds, even if those funds are 
inadequate to pay the costs to revitalize or replace all of the 
targeted units. For example, if a project has 700 units and you were 
awarded a HOPE VI Revitalization grant or other HUD public housing 
funds to address 300 of those units, you may submit an FY 2003 HOPE VI 
Revitalization application to revitalize the remaining 400 units. You 
may not apply for funds to supplement work on the original 300 units. 
If you request funds to revitalize units or buildings that have been 
funded by an existing HOPE VI Grant or other HUD funds, your 
application will be ineligible for funding.
    (7) Threshold: HOPE VI funds may not be used to develop market rate 
units or affordable housing units which do not qualify as public 
housing or homeownership replacement units.
    (8) Replacement Units. Under this HOPE VI NOFA, a HOPE VI 
Replacement unit shall be deemed to be any combination of public 
housing rental units, eligible homeownership units under section 
24(d)(1)(J) of the 1937 Act, and Housing Choice Voucher assistance that 
does not exceed the number of units demolished and/or disposed of at 
the targeted severely distressed public housing project.
    (9) Access to Services. For both on-site and any off-site units, 
your overall Revitalization Plan must result in increased access to 
municipal services, jobs, mentoring opportunities, transportation, and 
educational facilities; i.e., the physical plan and self-sufficiency 
strategy must be well integrated and strong linkages must be 
established with the appropriate Federal, State, and local agencies, 
non-profits, and the private sector to achieve such access.
    (10) Universal Design. HUD encourages you to incorporate the 
principles of universal design in the construction or rehabilitation of 
housing, retail establishments, and community facilities, or when 
communicating with community residents at public meetings or events. 
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. Examples include designing wider doorways, installing 
levers instead of doorknobs, and putting bathtub/shower grab bars in 
all units. Computers and telephones can also be set up in ways that 
enable as many residents as possible to use them. The Department has a 
publication that contains a number of ideas about how the principles of 
Universal Design can benefit persons with disabilities. To order a copy 
of Strategies for Providing

[[Page 60188]]

Accessibility and Visitability for HOPE VI and Mixed Finance 
Homeownership, go to the publications and resource page of the HOPE VI 
Web site at http://www.huduser.org/publications/pubasst/strategies.html.
    (11) Threshold. Separability. In accordance with section 
24(j)(2)(A)(v) of the 1937 Act, if you propose to target only a portion 
of a project for revitalization, you must:
    (a) Demonstrate to HUD's satisfaction that the severely distressed 
public housing is sufficiently separable from the remainder of the 
project of which the building is part to make use of the building 
feasible for revitalization, and
    (b) Demonstrate that the site plan and building designs of the 
revitalized portion will provide defensible space for the occupants of 
the revitalized building(s) and that the properties that remain will 
not have a negative influence on the revitalized buildings(s), either 
physically or socially. Separations may include a road, berm, catch 
basin, or other recognized neighborhood distinction.

IV. Capacity

(A) Thresholds
    (1) Threshold: Troubled Status. If HUD has designated your housing 
authority as troubled pursuant to section 6(j)(2) of the 1937 Act, 
HUD's Troubled Agency Recovery Centers will use documents and 
information available to it to determine whether you qualify as an 
eligible applicant. In accordance with section 24(j) of the 1937 Act, 
the term ``applicant'' means:
    (a) Any PHA that is not designated as ``troubled'' pursuant to 
section 6(j)(2) of the 1937 Act;
    (b) Any PHA for which a private housing management agent has been 
selected, or a receiver has been appointed, pursuant to section 6(j)(3) 
of the 1937 Act; and
    (c) Any PHA that is designated as ``troubled'' pursuant to section 
6(j)(2) of the 1937 Act and that:
    (i) Is designated as troubled principally for reasons that will not 
affect its capacity to carry out a revitalization program;
    (ii) Is making substantial progress toward eliminating the 
deficiencies of the agency that resulted in its troubled status; or
    (iii) Is otherwise determined by HUD to be capable of carrying out 
a revitalization program.
    (2) Threshold: Obligation of Capital Funds. In order to be 
considered for funding, you must have obligated Capital Fund amounts 
(including the Comprehensive Improvement Assistance Program (CIAP) or 
Comprehensive Grant Program (CGP) in a timely manner. HUD will not 
consider any application from a PHA that failed to obligate 90 percent 
or more of its FY 1999, 2000, and 2001 Capital Funds by the applicable 
obligation deadlines, as required by section (9)(j) of the U.S. Housing 
Act of 1937, unless the Deputy Secretary has approved an extension. HUD 
will use LOCCS to determine compliance with the applicable obligation 
deadlines. Replacement Housing Factor funds are not excluded from the 
calculation of Capital Fund obligation rates, pursuant to 24 CFR 
905.10(i), as they are part of the Capital Fund Program formula 
allocation. Some PHAs have executed Moving To Work (MTW) Agreements 
that exempt the PHA from the statutory Capital Fund obligation and 
expenditure deadlines. Accordingly, those PHAs will not be subject to 
this provision.
    (3) Threshold: Performance of Existing HOPE VI Grantees. If an 
applicant has one or more existing HOPE VI Revitalization grants, the 
Department will disqualify such an applicant if the applicant has an 
open Inspector General (IG) or General Accounting Office (GAO) audit 
finding related to the HOPE VI or Capital Fund Programs as of the date 
the application is due to HUD.
    (4) Threshold: Selection of Developer. In a departure from previous 
years, in order to be selected for funding, you must provide a signed 
certification that:
    (a) You have initiated RFQ competitive procurement procedures in 
accordance with 24 CFR 85.36 and 23 CFR 941.602(d) (as applicable), but 
have not entered into a contract with a developer for your first phase 
of construction by the application due date. A developer is an entity 
contracted to develop (and possibly operate) a mixed finance 
development that includes public housing units, pursuant to 24 CFR part 
941 subpart F, and contingent on a satisfactory environmental review 
under 24 CFR part 58 or part 50, under the terms of a HUD-approved 
proposal. A developer most often has an ownership interest in the 
entity that is established to own and operate the replacement units 
(e.g. as the General Partner of a Limited Partnership). It is not 
necessary to have executed a Master Development Agreement with the 
selected developer in order to meet the threshold. If you change 
developers after you are selected for funding, HUD reserves the right 
to rescind the grant; or
    (b) You will act as your own developer for the proposed project. If 
you change your plan and procure an outside developer after you are 
selected for funding, HUD reserves the right to rescind the grant.
    (5) Threshold: Operation and Management Principles and Policies.
    (a) Authority. Any HOPE VI-funded activities at public housing 
projects are subject to statutory requirements applicable to public 
housing projects under the 1937 Act, other statutes, and the Annual 
Contributions Contract (ACC). Within such restrictions, HUD seeks 
innovative solutions to the long-standing problems of severely 
distressed public housing projects. You may request, for the 
revitalized project, a waiver of HUD regulations, subject to statutory 
limitations and a finding of good cause under 24 CFR 5.110 if the 
waiver will permit you to undertake measures that enhance the long-term 
viability of a project revitalized under this program. HUD will assess 
each request to determine whether good cause is established to grant 
the waiver.
    (b) Requirements. HOPE VI Revitalization Grantees will be required 
to develop Management Agreements that describe their operation and 
management principles and policies for their public housing units. In 
your application, you must provide a certification that you will ensure 
that you and/or your procured property manager have complied (to the 
extent required) with the provisions of 24 CFR 966.3 in planning for 
the implementation of the operation and management principles and 
policies described below.
    (i) Rewarding work and promoting family stability by promoting 
positive incentives such as income disregards and ceiling rents;
    (ii) Instituting a system of local preferences adopted in response 
to local housing needs and priorities, e.g., preferences for victims of 
domestic violence, residency preferences, disaster victims;
    (iii) Encouraging self-sufficiency by including lease requirements 
that promote involvement in the resident association, performance of 
community service, participation in self-sufficiency activities, and 
transitioning from public housing;
    (iv) Implementing site-based waiting lists for the redeveloped 
public housing and/or following project-based management principles;
    (v) Instituting strict applicant screening requirements such as 
credit checks, references, home visits, and criminal records checks;
    (vi) Strictly enforcing lease and eviction provisions;
    (vii) Improving the safety and security of residents through the 
implementation

[[Page 60189]]

of defensible space principles and the installation of physical 
security systems such as surveillance equipment, control engineering 
systems, etc;(viii) Enhancing on-going efforts to eliminate drugs and 
crime from neighborhoods through collaborative efforts with Federal, 
State, and local crime prevention programs and entities such as:
    (A) Local law enforcement agencies;
    (B) Your local United States Attorney;
    (C) The Weed and Seed Program, if the targeted project is located 
in a designated Weed and Seed area. Operation Weed and Seed is a multi-
agency strategy that ``weeds out'' violent crime, gang activity, drug 
use, and drug trafficking in targeted neighborhoods and then ``seeds'' 
the target area by restoring these neighborhoods through social and 
economic revitalization. Law enforcement activities constitute the 
``weed'' portion of the program. Revitalization, which includes 
prevention, intervention, and treatment services as well as 
neighborhood restoration, constitutes the ``seed'' element. HUD has 
provided the Department of Justice with $10 million to fund Weed and 
Seed Strategies that fight crime and drugs in public, Indian, and 
federally assisted housing. For more information, see the Community and 
Safety and Conservation Web site at www.hud.gov/offices/pih/divisions/cscd/.
    (B) Rating Factor: Capacity--20 Points Total
    The term ``your Team'' includes your HOPE VI Coordinator (an 
individual designated by the PHA who may be a staff member or 
contractor), PHA staff who will be involved in HOPE VI grant 
administration, and developer partners, program managers, property 
managers, subcontractors, consultants, attorneys, financial 
consultants, and other entities or individuals identified and/or 
proposed to carry out program activities.
    (1) Development Capacity.
    (a) Capacity of Developer--6 Points.
    (i) You will receive 6 Points if:
    (A) Your Developer or other Team members have extensive, recent 
(within the last five years), and successful experience in planning, 
implementing, and managing physical development, financing, leveraging, 
and partnership activities that are comparable in character, scale, and 
complexity to your proposed revitalization activities;
    (B) You propose development using low-income tax credits, and you, 
your Developer, or other Team members have relevant tax credit 
experience; and
    (C) If homeownership, rent-to-own, cooperative ownership, or other 
major development components are proposed, you, your Developer, or 
other Team members have relevant, successful experience in development, 
sales, and/or conversion activities.
    (ii) You will receive 4 Points if your Developer or other Team 
members have some but not extensive experience in the factors described 
above.
    (iii) You will receive 0 Points if your Developer or other Team 
members do not have the experience described and the application does 
not demonstrate that it has the capacity to carry out your 
Revitalization Plan. You will also receive 0 Points if there is 
inadequate information in your application to rate this factor.
    (b) Development Capacity of Applicant--6 Points.
    (i) You will receive 6 Points if:
    (A) You have identified potential gaps in your current staffing in 
relation to development activities, and you have plans to fill such 
gaps, internally or externally, in a timely manner in order to 
successfully implement your Revitalization Plan;
    (B) You have demonstrated that physical development activities will 
proceed as promptly as possible following grant award, and you will be 
able to begin significant construction within 23 months of the award of 
the grant.
    (C) Threshold: Your application must contain a program schedule 
that provides a feasible plan to meet the schedule requirements of 
Section XVI(C) of this NOFA, with no impediments such as litigation 
that would prevent timely startup. The program schedule must indicate 
the date on which the development proposal for each phase of the 
revitalization plan will be submitted to HUD.
    (D) Your management experience and previous experience with 
development activities demonstrates that you have experience in 
overseeing large scale development, whether it be in-house or 
implemented by a private entity. In your application, you will describe 
the dollar amount and timeframe for completion of the project(s); and
    (E) As of the HOPE VI Revitalization application due date, you do 
not have any outstanding Comprehensive Grant, Comprehensive Improvement 
Assistance Program, or Capital Fund Program IG audit findings. If you 
have such a finding, you cannot receive 6 Points.
    (ii) You will receive 4 Points if you have had experience in 
managing large scale development in accordance with the factors above, 
but your experience has not been extensive and/or your project(s) were 
not completed within the timeframe originally established for the 
project.
    (iii) You will receive 1 Point if your application indicates that 
you have had little experience in managing large-scale development 
projects. Or, you will receive 1 Point if you have experience described 
in (i) or (ii) above, but have an outstanding audit finding related to 
the Comprehensive Grant program, Comprehensive Improvement Assistance 
Program, or Capital Fund Program.
    (iv) You will receive 0 Points if you do not demonstrate any 
experience in managing development activities, or if there is 
inadequate information in your application to rate this factor.
    (2) Capacity of Existing HOPE VI Revitalization Grantees. This 
section applies only to applicants that have received HOPE VI 
Revitalization grants for fiscal years 1993-2000. If an applicant has 
more than one HOPE VI Revitalization grant, each will be rated 
separately, not averaged, and the highest deduction will be made. 
Applicants with HOPE VI Revitalization grants only from FY 2001 or FY 
2002, or no existing HOPE VI Revitalization grants are not subject to 
this section. As indicated in the following tables, up to 5 Points will 
be deducted if a Grantee has failed to achieve adequate progress in 
relation to cumulative unit production goals. Production achievement 
numbers will be taken from the quarterly reporting system for the 
quarter most recently completed at the time the NOFA is published in 
the Federal Register.

------------------------------------------------------------------------
                                                                 Points
            Percent of unit production  completed               deducted
------------------------------------------------------------------------
                     Grants Awarded in FY 1993-1996
------------------------------------------------------------------------
95-100.......................................................          0
90-94........................................................          1
85-89........................................................          2
80-84........................................................          3
75-79........................................................          4
Less than 75.................................................          5
--------------------------------------------------------------
                        Grants Awarded in FY 1997
------------------------------------------------------------------------
90-100.......................................................          0
80-89........................................................          1
75-79........................................................          2
70-74........................................................          3
65-69........................................................          4
Less than 65.................................................          5
--------------------------------------------------------------
                        Grants Awarded in FY 1998
------------------------------------------------------------------------
80-100.......................................................          0
70-79........................................................          1
60-69........................................................          2
50-59........................................................          3
40-49........................................................          4
Less than 40.................................................          5
--------------------------------------------------------------

[[Page 60190]]

 
                        Grants Awarded in FY 1999
------------------------------------------------------------------------
60-100.......................................................          0
50-59........................................................          1
40-49........................................................          2
30-39........................................................          3
20-29........................................................          4
Less than 20.................................................          5
--------------------------------------------------------------
                        Grants Awarded in FY 2000
------------------------------------------------------------------------
25-100.......................................................          0
20-24........................................................          1
15-19........................................................          2
10-14........................................................          3
5-9..........................................................          4
Less than 5..................................................          5
------------------------------------------------------------------------

    (3) CSS Program Capacity--3 Points.
    You can receive points for proper demonstration in your application 
of CSS Program capacity. See Section VIII(B) of this NOFA for detailed 
information on CSS activities.
    (a) You will receive 2 Points if you demonstrate one of the 
following. If you fail to demonstrate one of the following, you will 
receive 0 points:
    (i) If you propose to carry out your CSS Plan in-house and you have 
recent, successful experience in planning, implementing, and managing 
the types of CSS activities proposed in your application, or
    (ii) If you propose that a member(s) of your Team will carry out 
your CSS Plan, that this procured Team member(s) has the qualifications 
and experience to plan, implement, manage, and coordinate the types of 
activities proposed, and/or that you have a plan for promptly hiring 
staff or procuring a Team member to do so.
    (b) If you have an existing HOPE VI grant, you will receive 1 Point 
if you demonstrated that your proposed CSS Team will be adequate to 
implement a new program without weakening your existing Team. In doing 
so, you must describe how you plan to accommodate or expand capacity to 
support new or changing services. If you do not have an existing HOPE 
VI Revitalization grant, demonstrate how your current proposed CSS Team 
will be adequate to implement a new program without weakening your 
existing staffing structure. In doing so, you must describe how you 
plan to accommodate or expand capacity to support new or changing 
services.
    (4) Property Management Capacity--4 Points.
    (a) Property management activities may be the responsibility of the 
PHA or another member of the Team, which may include a separate entity 
that you have procured or will procure to carry out property management 
activities. In your application you will describe the number of units 
and the condition of the units currently managed by you or your 
property manager, your annual budget for those activities, and any 
awards or recognition that you or your property manager have received.
    (b) Past Property Management Experience--3 Points.
    (i) You will receive 3 Points if: You or your property manager 
currently has extensive knowledge and recent (within the last five 
years), successful experience in property management of the housing 
types included in your revitalization plan. This may include market 
rate rental housing, public housing, and/or other affordable housing, 
including rental units developed with low-income housing tax credit 
assistance. If your Revitalization Plan includes cooperatively-owned 
housing, rent-to-own units, or other types of managed housing, you must 
demonstrate recent, successful experience in the management of such 
housing by the relevant member(s) of your Team.
    (ii) You will receive 1 Point if your application demonstrates that 
you or your property manager has some but not extensive experience of 
the kind required for your Revitalization Plan.
    (iii) You will receive 0 Points if your application does not 
demonstrate that you or your property manager has the capacity to 
manage your proposed plan, or if there is inadequate information in 
your application to rate this factor.
    (c) Property Management Plan--1 Point.
    (i) You will receive 1 Point if your application provides a 
detailed description of the goals and plans of you or your property 
manager to administer the following elements:

--Property maintenance;
--Rent collection;
--MTCS reporting;
--Site-based management experience;
--Tenant grievances;
--Evictions;
--Occupancy rate;
--Unit turnaround;
--Preventive maintenance;
--Work order completion;
--Project-based budgeting;
--Management of Homeownership and rent-to-own programs; and
--Energy Audits.

    (ii) You will receive 0 Points if there is insufficient information 
in your application to rate this factor.
    (5) PHA Plan--1 Point.
    (a) You will receive 1 Point if you demonstrate that you have 
incorporated the revitalization plan described in your application into 
your most recent PHA Plan (whether approved by HUD or pending 
approval). In order to qualify as ``incorporated,'' your PHA Plan must 
indicate the intent to pursue a HOPE VI Revitalization grant and the 
public housing development for which it is targeted.
    (b) You will receive 0 Points if you have not incorporated the 
revitalization plan described in your application into your PHA Plan, 
or if there is insufficient information in your application to rate 
this factor.

V. Need

(A) Threshold: Severe Distress
    (1) The targeted public housing project or building in a project 
must be severely distressed. In accordance with Section 24(j)(2) of the 
1937 Act, the term ``severely distressed public housing'' means a 
public housing project (or building in a project):
    (a) That:
    (i) Requires major redesign, reconstruction or redevelopment, or 
partial or total demolition, to correct serious deficiencies in the 
original design (including inappropriately high population density), 
deferred maintenance, physical deterioration or obsolescence of major 
systems, and other deficiencies in the physical plan of the project;
    (ii) Is a significant contributing factor to the physical decline 
of, and disinvestment by public and private entities in, the 
surrounding neighborhood;
    (iii) (A) Is occupied predominantly by families who are very low-
income families with children, are unemployed, and dependent on various 
forms of public assistance; or (B) has high rates of vandalism and 
criminal activity (including drug-related criminal activity) in 
comparison to other housing in the area;
    (iv) Cannot be revitalized through assistance under other programs, 
such as the Capital and Operating Funds Programs for public housing 
under the Act, or the programs under sections 9 and 14 of the 1937 Act 
(as in effect before the effective date under section 503(a) of the 
Quality Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, 
approved October 21, 1998, referred to as the Public Housing Reform 
Act), because of cost constraints and inadequacy of available amounts; 
and
    (v) In the case of individual buildings, is sufficiently separable 
from the remainder of the project of which the building is part to make 
use of the building feasible for revitalization; or
    (b) That was a project described in section V(A)(1)(a) that has 
been legally

[[Page 60191]]

vacated or demolished, but for which HUD has not yet provided 
replacement housing assistance (other than tenant-based assistance).
    (2) For the purposes of this threshold, Replacement Housing Factor 
funds will not be considered as ``replacement housing assistance.''
    (3) A severely distressed project that has been legally vacated or 
demolished (but for which HUD has not yet provided replacement housing 
assistance, other than tenant-based assistance) must have met the 
definition of physical distress as of the day the demolition 
application approval letter was dated by HUD.
    (4) To meet the severe distress requirement, you must certify that 
the public housing project or building in a project targeted in your 
HOPE VI application meets the definition of severe distress provided in 
Section V(A)(1). You will make this certification by signing the HOPE 
VI Revitalization Grant Applicant Certifications. The certification 
form is included in the HOPE VI Application and is included as part of 
Appendix A to this HOPE VI NOFA.
    (5) In order to certify to the severe physical distress described 
in Section V(A)(1)(a) of this NOFA, your application must include a 
certification that is signed by an engineer or architect licensed by a 
State licensing board. The license does not need to have been issued in 
the same State as the severely distressed project. The engineer or 
architect must include his or her license number and State of 
registration on the certification. The engineer or architect may not be 
an employee of the housing authority or the city.
(B) Rating Factor: Need--24 Points Total
(1) Need for Revitalization: Severe Physical Distress of the Public 
Housing Development--10 Points
    HUD will evaluate the extent of the severe physical distress of the 
targeted public housing development. If the targeted units have already 
been demolished, HUD will evaluate your description of the extent of 
the severe physical distress of the site as of the day the demolition 
application was approved by HUD. You will receive Points for the 
following separate subfactors, as indicated.
    (a) You will receive 2 Points if you demonstrate that there are 
major deficiencies in the project's infrastructure, roofs, electrical, 
plumbing, heating and cooling, mechanical systems, settlement, and/or 
other deficiencies in Housing Quality Standards.
    (b) You will receive 2 Points if you demonstrate that there are 
poor soil conditions, inadequate drainage, deteriorated laterals and 
sewers, and/or inappropriate topography.
    (c) You will receive 3 Points if you demonstrate that the project 
has at least 3 of the following major design deficiencies, including:
    (i) Inappropriately high population density, room, and/or unit size 
and configurations;
    (ii) Isolation;
    (iii) Indefensible space;
    (iv) Significant utility expenses caused by energy conservation 
deficiencies that may be documented by an energy audit; and/or
    (v) Inaccessibility for persons with disabilities with regard to 
individual units, entrance ways, and/or common areas.
    (d) You will receive 3 Points if you demonstrate that there are (or 
were, if the site is already demolished) levels of unmitigated lead-
based paint, PCBs, mold, and/or asbestos that make the site or a 
portion of the site and its housing structures unsuitable for 
residential use.
(2) Need for Revitalization: Impact of the Severely Distressed Site on 
the Surrounding Neighborhood--3 Points
    HUD will evaluate the extent to which the severely distressed 
public housing project is a significant contributing factor to the 
physical decline of, and disinvestment by, public and private entities 
in the surrounding neighborhood. In making this determination, HUD will 
evaluate your description of your narrative, crime statistics, 
photographs or renderings, socio-economic data, trends in property 
values, evidence of property deterioration and abandonment, evidence of 
underutilization of surrounding properties, and indications of 
neighborhood disinvestment.
    (a) You will receive 3 Points if your narrative adequately 
demonstrates that the project has a significant impact on the 
surrounding neighborhood, as documented by each item listed above.
    (b) You will receive 2 Points if your narrative demonstrates that 
the project has a moderate impact on the neighborhood, and/or only some 
of the items listed above are adequately documented.
    (c) You will receive 0 Points if your narrative does not 
demonstrate that the project has an impact on the surrounding 
neighborhood, or there is inadequate information in your application to 
rate this factor.
(3) Need for Funding: Obligation of Capital Funds--8 Points
    HUD will evaluate the extent to which you could undertake the 
proposed revitalization activities without a HOPE VI grant. Large 
amounts of available Capital Funds indicate that the revitalization 
could be carried out without a HOPE VI grant. HUD will use data from 
LOCCS available at the time of the grant application deadline date to 
determine the amount of unobligated FY 1999-2002 Capital Grant 
(including CIAP and CGP) funds currently available that could be used 
to carry out the proposed revitalization activities. Applicants must 
ensure that their obligation and expenditure information was updated in 
LOCCS prior to the application deadline. Replacement Housing Factor 
funds are not excluded from the calculation of Capital Fund obligation 
rates, pursuant to 24 CFR 905.10(i), as they are part of the Capital 
Fund Program formula allocation. Information provided in the 
application will not be considered, except in the case of some moving 
to work applicants, which are not required to enter obligations into 
LOCCS in accordance with their MTW agreements. Those PHAS must provide 
a certification of their obligation rate in their applications in order 
to receive any points for this rating factor.
    (a) You will receive 8 Points if your unobligated Capital Funds 
balance is up to 20 percent of the amount of HOPE VI funds requested.
    (b) You will receive 6 Points if your unobligated balance is 21-45 
percent of the amount of HOPE VI funds requested.
    (c) You will receive 4 Points if your unobligated balance is 46-70 
percent of the amount of HOPE VI funds requested.
    (d) You will receive 2 Points if your unobligated balance is 71 to 
90 percent of the amount of HOPE VI funds requested.
    (e) You will receive 0 Points if your unobligated balance is more 
than 90 percent of the amount of HOPE VI funds requested.
(4) Need for Affordable Accessible Housing in the Community--3 Points
    The applicant must demonstrate the need for affordable housing in 
the community. For purposes of this competition, the need for 
affordable housing in the community will be measured by Housing Choice 
Voucher program utilization rates and public housing occupancy rates, 
excluding the public housing site targeted for revitalization. This 
information must be demonstrated and documented in your application, as 
described below and

[[Page 60192]]

must be the most recent information available at the time of the 
application deadline. In figuring the Housing Choice Voucher 
utilization rate, provide the percentage of units under lease out of 
the total authorized. In figuring the public housing occupancy rate, 
provide the percentage of units occupied out of the total in your 
public housing inventory, not including the targeted public housing 
site. If you are a non-MTW site, you must use information consistent 
with the Section Eight Management Assessment Program (SEMAP) and/or the 
Public Housing Assessment System (PHAS) submissions. If you are an MTW 
site, and do not report into SEMAP and/or PHAS, you must demonstrate 
your utilization and/or occupancy rate using similar methods and 
information sources in order to earn points under this rating factor.
    (a) You will receive 3 Points if :
    (i) The utilization rate of your Housing Choice Voucher program is 
97 percent or higher; and/or
    (ii) The occupancy rate of your public housing inventory is 97 
percent or higher.
    (b) You will receive 2 Points if:
    (i) The utilization rate of your Housing Choice Voucher program is 
between 95 and 96 percent; and/or
    (ii) The occupancy rate of your public housing inventory is between 
95 and 96 percent.
    (c) You will receive 1 Point if:
    (i) The utilization rate of your Housing Choice Voucher program is 
between 93 and 94 percent; and/or
    (ii) The occupancy rate of your public housing inventory is between 
93 and 94 percent.
    (d) You will receive 0 Points if:
    (i) The utilization rate of your Housing Choice Voucher program is 
less than 93 percent and/or
    (ii) The occupancy rate of your public housing inventory is less 
than 93 percent.

VI. Match and Leveraging

(A) Match Requirements
    (1) Overall Match. In accordance with section 24(c) of the 1937 
Act, if you are selected for funding, you must supplement your HOPE VI 
Revitalization grant with funds from other sources greater than or 
equal to 5 percent of the HOPE VI funds provided.
    (2) Additional Community and Supportive Services (CSS) Match. In 
addition to supplemental amounts provided as Overall Match in 
accordance with Section (1) above, if you are selected for funding and 
propose to use more than 5 percent of your HOPE VI grant for CSS 
activities (you may use up to 15 percent of your grant for such 
activities), you must provide supplemental funds from sources other 
than HOPE VI, for the amount over 5 percent of the grant that you will 
use for CSS activities.
    (3) In accordance with section 24(c) of the Act, for purposes of 
calculating the amount of matching funds required by Sections (1) and 
(2), you may include amounts from other Federal sources, any state or 
local government sources, any private contributions, the value of 
donated material or building, the value of any lease on a building, the 
value of the time and services contributed by volunteers, and the value 
of any other in-kind services or administrative costs provided.
    (4) Matching funds must be directly applicable to the 
revitalization of the site and the transformation of the lives of 
residents.
    (5) Grantees must provide matching funds which, combined with HOPE 
VI funds, will enable them to carry out revitalization activities, 
including CSS activities. Applicants must show firm commitments in the 
amounts required for match in their applications in order to be funded. 
Grantees will be required to show evidence that matching resources were 
actually received and used for their intended purposes through 
quarterly reports as the project proceeds. Sources of matching funds 
may be substituted after grant award, as long as the dollar requirement 
is met.
    (6) Grantees must pursue and enforce any commitment (including 
commitments for services) obtained from any public or private entity 
for any contribution or commitment to the project or surrounding area 
that was used for leverage in their HOPE VI applications.
    (7) Threshold: You must provide evidence that you have met your 
match requirements in the application. This means that the amount of 
Overall Match accepted by HUD must be at least 5 percent of the total 
grant. You must also meet the CSS Match Requirement (i.e., you must 
provide supplemental funds from sources other than HOPE VI, for the 
amount over 5 percent of the grant that you will use for CSS 
activities). For example, a request for 15 percent of the grant for CSS 
would require that the amount of funds over that first 5 percent be 
matched dollar for dollar (i.e., a 10 percent match of other CSS 
resources).
(B) Leverage
    Although related to match, leverage is strictly a rating factor. 
Leverage consists of firm commitments of funds and other resources. HUD 
will rate your application based on the amount of funds and other 
resources that will be leveraged by the HOPE VI grant as a percentage 
of the amount of HOPE VI funds requested.
(C) Documentation for Development and CSS Resources
    In your application, you will enter basic information about each 
resource on the appropriate resource summary form: Name of the 
organization providing the resource, the dollar value of the resource, 
and its proposed use.
    (1) For each resource you list, you must provide a commitment 
document, such as a letter, memorandum of understanding, agreement to 
participate, city council resolution, or other evidence of the resource 
to be committed, which may be subject to the receipt of a HOPE VI 
Revitalization grant. An official of the organization legally 
authorized to make commitments on behalf of the organization must sign 
the commitment document.
    (2) Each commitment document must include the dollar value and time 
duration of the commitment (e.g., $10,000 will be provided each year 
for 4 years for a total commitment of $40,000). The dollar value must 
be consistent with the amount entered on the resource summary form. On 
the form you will also enter the page number of your application where 
the commitment document is located.
    (3) Endorsements or general letters of support from organizations 
or vendors alone will not count as resources and should not be included 
in the application or on a Resources Summary Form.
    (4) Each resource may be used for only one category: Development, 
CSS, Anticipatory, or Collateral, as described below. Any resource 
listed in more than one category will be disqualified from all 
categories.
    (5) For CSS purposes, include only funds that will be newly 
generated for HOPE VI activities. HUD will not count any funds that 
have been provided routinely, such as TANF payments or funds that 
support ongoing CSS-type activities. However, if an existing service 
provider significantly increases the level of services provided at the 
site, the increased amount of funds may be counted.
    (6) Even though an in-kind CSS contribution may count as a 
resource, it may not be appropriate to include on the sources and uses 
attachment. Each source on the sources and uses attachment must be 
matched by a specific and appropriate use. For example, donations of 
staff time may

[[Page 60193]]

not be used to offset costs for infrastructure.
(D) Types of Development Resources
    HUD seeks to fund mixed-finance developments that use HOPE VI funds 
to leverage the maximum amount of other physical development funds, 
particularly from private sources, that will result in revitalized 
public housing, other types of assisted and market rate housing, and 
private retail and economic development. Types of resources that may be 
counted include:
    (1) Private mortgage-secured loans and other debt. Note the term 
maturity expected and sources of repayment of all loans.
    (a) Where there is both a construction loan and a permanent take-
out loan, you must provide documentation of both, but only the value of 
the permanent loan will be counted as leverage.
    (b) For privately financed homeownership construction loans, 
acceptable documentation of construction loans will be considered as 
leverage. Documentation of permanent financing is not required.
    (c) If you have obtained a construction loan but not a permanent 
loan, the value of the acceptably documented construction loan will be 
counted as leverage.
    (2) Insured loans.
    (3) Donations and contributions.
    (4) Housing trust funds.
    (5) Net sales proceeds from a homeownership project. Downpayments 
from homebuyers may not be counted.
    (6) Funds committed to build private sector housing in direct 
connection with the HOPE VI Revitalization Plan.
    (7) Tax Increment Funding (TIF).
    (8) Tax Exempt Bonds. Describe the use and term.
    (9) Other Federal Funds. Other Federal sources may also include 
funds provided by HUD, except-public housing funds, such as HOPE VI 
Revitalization funds, HOPE VI Demolition funds, Capital Fund Program 
funds, and proposals to use operating subsidy for debt service. Though 
these HUD public housing funds may not be counted for points under this 
NOFA, they can be used as part of your revitalization plan.
    (10) Sale of Land. The value of land may be included as a 
development resource only if this value is a sales proceed. Absent a 
sales transaction, the value of land may not be counted.
    (11) Donations of Land. Donations of land may be counted as a 
development resource, only if the donating entity owns the land to be 
donated. Donating entities may include a city, county, church, 
community organization, etc. The application must include documentation 
of this ownership, signed by the appropriate authorizing official.
    (12) Low-Income Housing Tax Credits (LIHTC). Low-Income Tax Credits 
are authorized by section 42 of the IRS Code which allows investors to 
receive a credit against Federal tax owed in return for providing funds 
to developers to help build or renovate housing that will be rented 
only to lower-income households for a minimum period of years. There 
are two types of credits, both of which are available over a 10-year 
period: A 9 percent credit on construction/rehab costs, and a 4 percent 
credit on acquisition costs and all development costs financed 
partially with below-market Federal loans (e.g., tax exempt bonds). Tax 
credits are generally reserved annually through State Housing Finance 
Agencies, a directory of which can be found at http://www.ncsha.org/ncsha/public/statehfadirectory/index.htm. Only tax credits that have 
been reserved for the project will be counted as development 
leveraging.
    (a) If you propose to include LIHTC equity as a development 
resource for your first phase of development, your application must 
include a LIHTC reservation letter from your state or local Housing 
Finance Agency. This letter must constitute a firm commitment and can 
only be conditioned on the receipt of the HOPE VI grant.
    (b) If you propose to include LIHTC equity as a development 
resource for phases of development other than your first phase, your 
application must include a reservation letter from your state or local 
Housing Finance Agency in order to have the tax credit amounts for 
future phases counted as development leveraging.
    (c) Only LIHTC commitments that have been secured as of the 
application deadline will be considered for the scoring under section 
VI(H)(1).
(E) Sources of Development Resources
    You must actively enlist other stakeholders who are vested in and 
can provide significant financial assistance to your revitalization 
effort. Sources of resources that can be used for leveraging may 
include:
    (1) Public, private, and non-profit entities, including LIHTC 
purchasers;
    (2) State and local Housing Finance Agencies;
    (3) Local governments;
    (4) The city's housing and/or redevelopment agency or other 
comparable agency. HUD will consider this to be a separate entity with 
which you are partnering if your PHA is also a redevelopment agency or 
otherwise has citywide responsibilities.
    (a) You are strongly urged to seek a pledge of Community 
Development Block Grant (CDBG) funds for improvements to public 
infrastructure such as streets, water mains, etc. related to the 
revitalization effort. CDBG funds are awarded by HUD by formula to 
units of general local government and to states, which may then award a 
grant or loan to a PHA, a partnership, a non-profit organization, or 
other entity for revitalization activities, including loans to a 
project's for-profit partnership. More information about the CDBG 
Program can be found at www.hud.gov/offices/cpd/index.cfm.
    (b) The city, county, or State may provide HOME funds to be used in 
conjunction with HOPE VI funds. The Home Investment Partnership Program 
provides housing funds that are distributed from HUD to units of 
general local governments and states. Funds may be used for new 
construction, rehabilitation, acquisition of standard housing, 
assistance to homebuyers, and tenant-based rental assistance. Current 
legislation allows HOME funds to be used in conjunction with HOPE VI 
funds, but they may not be used in conjunction with Public Housing 
Capital Funds under section 9(d) of the 1937 Act. Information about the 
HOME Program can be found at: www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm.
    (5) Foundations.
    (6) Government Sponsored Enterprises such as the Federal Home Loan 
Bank, Fannie Mae, and Freddie Mac.
    (7) HUD and other Federal agencies.
    (8) Financial institutions, banks, or insurers.
    (9) Other private funders.
(F) Types of CSS Resources
    HUD seeks to fund mixed-finance developments that use HOPE VI funds 
to leverage the maximum amount of other resources to support CSS 
activities in order to ensure the successful transformation of the 
lives of residents and the sustainability of the revitalized public 
housing development. Leveraging scarce HOPE VI CSS funds with other 
funds and services is critical to the sustainability of CSS activities 
so that they will continue after the HOPE VI funds have been expended.
    Commitments of funding or in-kind services related to the provision 
of CSS activities may be counted as CSS resources and towards the 
calculation of CSS leverage. Types of resources that

[[Page 60194]]

may be counted include but are not limited to:
    (a) Materials;
    (b) A building;
    (c) A lease on a building;
    (d) Other infrastructure;
    (e) Time and services contributed by volunteers;
    (f) Staff salaries and benefits; and
    (g) Supplies.
    (h) See Section VIII(B) for other types of CSS resources.
    Note that wages projected to be paid to residents through jobs, or 
projected benefits (e.g., health/insurance/retirement benefits) related 
to those projected jobs, provided by CSS Partners will not be counted 
as leverage.
(G) Sources of CSS Resources
    In order to achieve quantifiable self-sufficiency results, you must 
form partnerships with organizations that are skilled in the delivery 
of services to residents of public housing and that can provide 
commitments of resources to support those services. You must actively 
enlist as partners other stakeholders who are vested in and can provide 
commitments of funds and in-kind services for the CSS portion of your 
revitalization effort. See Section VIII(C) for a list of the kinds of 
organizations, agencies, and other providers that may be used as 
sources of CSS resources.
(H) Rating Factor: Leveraging--16 Points Total
    (1) Development Leveraging--7 Points. For each commitment document, 
HUD will evaluate the strength of commitment and add the amounts that 
are acceptably documented. HUD will then calculate the ratio of the 
amount of HUD funds requested to the amount of funds that HUD deems 
acceptably documented. HUD will round figures to two decimal points, 
using standard rounding rules.
    (a) You will receive 7 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS 
or administration) to the dollar value of documented, committed 
development resources from other sources is 1:3 or higher.
    (b) You will receive 6 Points if the ratio is between 1:2.50 and 
1:2.99.
    (c) You will receive 5 Points if the ratio is between 1:2.0 and 
1:2.49.
    (d) You will receive 4 Points if the ratio is between 1:1.50 and 
1:1.99.
    (e) You will receive 3 Points if the ratio is between 1:1.0 and 
1:1.49.
    (f) You will receive 2 Points if the ratio is between 1:0.50 and 
1:0.99.
    (g) You will receive 1 Point if the ratio is between 1:0.25 to 
1:0.49.
    (h) You will receive 0 Points if the ratio is less than 1:0.25, or 
there is inadequate information in your application to rate this 
factor.
    (2) CSS Leveraging--Amount of CSS Leveraged Resources--5 Points. 
(a) You will receive 5 Points if the ratio of the amount of HOPE VI 
funds requested for CSS activities to the dollar value of documented, 
committed CSS resources leveraged from other sources is 1:4 or higher. 
If no HOPE VI funds are requested for CSS activities because all CSS 
funds will come from outside sources, all adequately-documented funds 
from such outside sources will be counted and you will receive 5 
Points.
    (b) You will receive 4 Points if the ratio is between 1:3.5 and 
1:3.99.
    (c) You will receive 3 Points if the ratio is between 1:3 and 
1:3.49.
    (d) You will receive 2 Points if the ratio is between 1:2.5 and 
1:2.99.
    (e) You will receive 1 Point if the ratio is between 1:2 and 
1:2.49.
    (f) You will receive 0 Points if the ratio is less than 1:2, or 
there is inadequate information in your application to rate this 
factor.
    (3) Anticipatory Resources Leveraging--2 Points. Anticipatory 
Resources relate to activities that have taken place in the past and 
that were conducted in direct relation to a HOPE VI Revitalization 
grant. In many cases, PHAs, cities, or other entities may have carried 
out revitalization activities (including demolition) in previous years 
in anticipation of your receipt of a HOPE VI Revitalization grant. 
These expenditures, if documented, may be counted as leveraged 
anticipatory resources. They cannot duplicate any other type of 
resource and cannot be counted towards match.
    (a) You will receive 2 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS 
or administration) to the amount of your documented anticipatory 
resources is 1:0.1 or higher.
    (b) You will receive 0 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS 
or administration) to the amount of your documented anticipatory 
resources is less than 1:0.1.
    (4) Collateral Investment Leveraging--2 Points. Collateral 
Investment includes physical redevelopment activities that are 
currently underway, or that have yet to begin but are projected to be 
completed before October 2008. It must be demonstrated that these 
activities will directly enhance the new HOPE VI community, but will 
occur whether or not a Revitalization grant is awarded and the public 
housing project is revitalized. This includes economic or other kinds 
of development activities that would have occurred with or without the 
anticipation of HOPE VI funds. These resources cannot duplicate any 
other type of resource and cannot be counted as match. The resources 
are subject to the same restrictions regarding documentation. 
Collateral investment resources are counted as leverage only and cannot 
be counted towards match. Examples of collateral investments include 
schools, libraries, subway or light rail stations, improved roads, day 
care facilities, and local medical facilities.
    (a) You will receive 2 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS 
or administration) to the amount of your documented collateral 
resources is 1:1.0 or higher.
    (b) You will receive 0 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS 
or administration) to the amount of your documented collateral 
resources is less than 1:1.0.

VII. Resident and Community Involvement

(A) Requirements and Thresholds
    (1) General. You are required to involve residents and the broader 
community in the planning, proposed implementation, and management of 
your Revitalization Plan. HUD will evaluate the nature, extent, and 
quality of the resident and community outreach and involvement you have 
achieved by the time your application is submitted, as well as your 
plans for continued and/or additional outreach and involvement.
    (2) Resident Training Session. You must conduct at least one 
training session for residents of the severely distressed project on 
the HOPE VI development process. HUD does not prescribe the content of 
this meeting.
    (3) Public Meetings.
    (a) You must conduct at least three public meetings with residents 
and the broader community, in order to involve them in a meaningful way 
in the process of developing the Revitalization Plan and preparing the 
application.
    (b) During the course of the three meetings, you must address the 
following issues listed below (i.e., all issues need not be addressed 
at each meeting):
    (i) The HOPE VI planning and implementation process;
    (ii) The proposed physical plan, including site and unit design, 
and

[[Page 60195]]

whether the unit design is in compliance with Fair Housing Act and UFAS 
standards;
    (iii) The extent of proposed demolition;
    (iv) Planned community and supportive service activities;
    (v) Other proposed revitalization activities;
    (vi) Relocation issues, including relocation planning, mobility 
counseling, and maintaining the HOPE VI community planning process 
during the demolition and reconstruction phases where temporary 
relocation is involved;
    (vii) Reoccupancy plans and policies, including site-based waiting 
lists; and
    (viii) Section 3 and employment opportunities to be created as a 
result of redevelopment activities.
    (4) All training sessions and meetings must be held in facilities 
that are accessible to persons with disabilities, provide services such 
as day care, transportation, and sign language interpreters as 
appropriate, and as practical and applicable, be conducted in English 
and the language(s) most appropriate for the community.
    (5) The training session and each of the public meetings must be 
held after the publication date of this NOFA in the Federal Register; 
any training sessions or public meetings held before the NOFA 
publication date will not be counted for the purposes of this 
competition.
    Threshold: In your application you must provide a signed 
certification that the above resident training session and public 
meetings were held and that the topics listed above were covered. The 
certification must include the dates of the training session and 
meetings. If, after the deficiency cure period, this certification is 
not properly included in your application, the application will be 
ineligible for funding.
(B) Rating Factor: Resident and Community Involvement--3 Points
    You will receive 1 Point for each of the following criteria met in 
your application, which are over and above the threshold requirements 
listed in Section (A) above.
    (1) You demonstrate that you have communicated regularly and 
significantly with affected residents and members of the surrounding 
community about the development of your Revitalization Plan by giving 
residents and community members information about your actions 
regarding the Revitalization Plan and providing a forum where residents 
and community members can contribute recommendations and opinions with 
regard to the development and implementation of the Revitalization 
Plan.
    (2) You describe your efforts, past and proposed, to make 
appropriate HUD communications about HOPE VI available (i.e., a copy of 
the NOFA, computer access to the HUD Web site, etc.).
    (3) You describe your plans to provide affected residents with 
reasonable training on the general principles of development, technical 
assistance, and capacity building so that they may participate 
meaningfully in the development and implementation process.

VIII. Community and Supportive Services

(A) CSS Program Requirements
    (1) Your CSS Team and Partners.
    (a) The term ``CSS Team'' refers to PHA staff members and/or any 
consultants who will have the responsibility to design, implement, and 
manage your CSS Program.
    (b) The term ``CSS Partners'' refers to the agencies and 
organizations that you will work with to provide supportive services 
for residents. A Partner could be a local service organization such as 
a Boys or Girls Club that donates its building and staff to the 
program, or an agency such as the local TANF agency that works with you 
to ensure that their services are coordinated and comprehensive.
    (2) Maximum CSS grant amount. Consistent with section 24(j)(3) of 
the 1937 Act, you may use an amount up to 15 percent of the total HOPE 
VI Grant to pay the costs of CSS activities. You may spend additional 
sums on CSS activities using donations, other HUD funds made available 
for that purpose, or other PHA funds. See Section VI(A) of this NOFA 
for CSS grant matching requirements.
    (3) CSS Endowment Trust. Consistent with section 24(d)(2) of the 
Act, you may deposit up to 15 percent of your HOPE VI grant (the 
maximum amount of the award allowable for CSS activities) into an 
Endowment Trust to provide CSS activities. In order to establish an 
Endowment Trust, you must first execute with HUD a HOPE VI Endowment 
Trust Addendum to the Grant Agreement. When reviewing your request to 
set up an Endowment Trust, HUD will take into consideration your 
ability to pay for current CSS activities with HOPE VI or other funds 
and the projected long-term sustainability of the Endowment Trust to 
carry out those activities.
    (4) Subgrant Agreements. You may enter into subgrant agreements 
with non-profit or State or local governments for the performance of 
CSS activities in accordance with your approved CSS work plan.
    (5) Neighborhood Networks. All FY 2003 Revitalization grantees will 
be required to establish Neighborhood Networks Centers. This program 
provides residents with on-site access to computer and training 
resources. HUD will make technical assistance available to each PHA 
where needed. Grantees may use HOPE VI funds to establish Neighborhood 
Networks. In addition, $5 million will be made available for 
Neighborhood Networks in accordance with Section II(C) of the General 
Section of this NOFA. More information on the requirements of the 
Neighborhood Networks Center Program is available on the Neighborhood 
Networks Web site at www.hud.gov/nnw/nnwindex.html.
    (6) CSS activities must be consistent with State and local welfare 
reform requirements and goals.
    (7) The objectives of your CSS Program must be results-oriented, 
with quantifiable goals and outcomes that can be used to measure 
progress and make changes in activities as necessary.
    (8) CSS activities must be of an appropriate scale, type, and 
variety to meet the needs of all residents (including adults, youth 
ages 16 to 21, and children) of the severely distressed project, 
including residents remaining on-site, residents who will relocate 
permanently to other PHA units or Housing Choice Voucher-assisted 
housing, residents who will relocate temporarily during the 
construction phase, and new residents of the revitalized units.
    (9) Non-public housing residents may also participate in CSS 
activities, as long as the primary participants in the activities are 
residents as described in Section (8) above.
    (10) Your CSS activities must be coordinated with the efforts of 
other service providers in your locality, including non-profit 
organizations, educational institutions, and State and local programs.
    (11) CSS activities must be well integrated with the physical 
development process, both in terms of timing and the provision of 
facilities to house on-site service and educational activities.
    (12) CSS programs and services must last for the life of the grant 
and must be carefully planned so that they will be sustainable after 
the HOPE VI grant period ends.
    (13) If selected, the Grantee is responsible for tracking and 
providing CSS programs and services to residents currently living on 
the targeted public

[[Page 60196]]

housing site and residents already relocated from the site. It is 
imperative that case management services begin immediately so that 
residents who will be relocated have time to participate in and benefit 
from CSS activities before leaving the site; and that residents who 
have already been relocated are able to participate in and benefit from 
CSS activities.
(B) CSS Activities May Include, But Are Not Limited To
    (1) Educational activities that promote learning and serve as the 
foundation for young people from infancy through high school 
graduation, helping them to succeed in academia and the professional 
world. Such activities, which include after school programs, mentoring, 
and tutoring, must be created with strong partnerships with public and 
private educational institutions.
    (2) Adult educational activities, including remedial education, 
literacy training, tutoring for completion of secondary or post-
secondary education, assistance in the attainment of certificates of 
high school equivalency, and English as a Second Language courses, as 
needed.
    (3) Readiness and retention activities, which frequently are key to 
securing private sector commitments to the provision of jobs.
    (4) Employment training activities that include results-based job 
training, preparation, counseling, development, placement, and follow-
up assistance after job placement.
    (5) Programs that provide entry-level, registered apprenticeships 
in construction, construction-related, maintenance, or other related 
activities. A registered apprenticeship program is a program which has 
been registered with either a State Apprenticeship Agency recognized by 
the Department of Labor's (DOL) Office of Apprenticeship Training, 
Employer and Labor Services (OATELS) or, if there is no recognized 
State agency, by OATELS. See also DOL regulations at 29 CFR part 29.
    (6) Life skills training on topics such as parenting, consumer 
education, and family budgeting.
    (7) Creation and operation of credit unions to serve residents, 
including capitalization and technical assistance to foster new credit 
unions on-site and to encourage existing community credit unions to 
expand their coverage to include on-site coverage.
    (8) Homeownership counseling that is scheduled to begin promptly 
after grant award so that, to the maximum extent possible, qualified 
residents will be ready to purchase new homeownership units when they 
are completed. The Family Self-Sufficiency Program can also be used to 
promote homeownership, providing assistance with escrow accounts and 
counseling.
    (9) Coordinating with health care services providers or providing 
on-site space for a health clinic, doctors, a wellness center, 
dentists, etc. that will primarily serve the public housing residents. 
HOPE VI funds may not be used to provide direct medical care to 
residents.
    (10) Substance/alcohol abuse treatment and counseling.
    (11) Activities that address domestic violence treatment and 
prevention.
    (12) Child care services that provide sufficient hours of operation 
to facilitate parental access to education and job opportunities, serve 
appropriate age groups, and stimulate children to learn.
    (13) Transportation, as necessary, to enable all family members to 
participate in available CSS activities and/or to commute to their 
places of employment.
    (14) Entrepreneurship training and mentoring, with the goal of 
establishing resident-owned businesses.
(C) CSS Partnerships and Resources
    The following are the kinds of organizations and agencies that can 
provide you with in-kind, financial, and other types of resources 
necessary to carry out and sustain your CSS activities.
    (1) Local Boards of Education, public libraries, local community 
colleges, institutions of higher learning, non-profit or for-profit 
educational institutions, and public/private mentoring programs that 
will lead to new or improved educational facilities and improved 
educational achievement of young people in the revitalized development, 
from birth through higher education.
    (2) TANF agencies/welfare departments.
    (3) Job development organizations that link private sector or non-
profit employers with low-income prospective employees.
    (4) Workforce Development Agencies.
    (5) Organizations that provide residents with job readiness and 
retention training and support.
    (6) Economic development agencies such as the Small Business 
Administration, which provide entrepreneurial training and small 
business development centers.
    (7) National corporations, local businesses, and other large 
institutions such as hospitals that can commit to provide entry-level 
jobs. Employers may agree to train residents or commit to hire 
residents after they complete jobs preparedness or training programs 
that are provided by you, other partners, or the employer itself.
    (8) Programs that integrate employment training, education, and 
counseling, and where creative partnerships with local boards of 
education, State charter schools, TANF, foundations, and private 
funding sources have been or could be established, such as:
    (a) Youthbuild. HUD's Youthbuild Program provides grants to 
organizations that provide education and job training to young adults 
ages 16 to 24 who have dropped out of school. Participants spend half 
their time rehabilitating low-income housing and the other half in 
educational programs. Youthbuild provides a vehicle for achieving 
compliance with the objective of Section 3, as described in Section 
X(D)(2)(a) of this NOFA. More information on HUD's Youthbuild Program 
can be found at www.hud.gov/progdesc/youthb.cfm.
    (b) Step-Up, an apprenticeship-based employment and training 
program that provides career potential for low-income persons by 
enabling them to work on construction projects that have certain 
prevailing wage requirements. Step-Up encourages work by offering 
apprenticeships through which low-income participants earn wages while 
learning skills on the job, supplemented by classroom-related 
instruction. Step-Up can also contribute to a PHA's effort to meet the 
requirements of Section 3. More information can be found at 
www.hud.gov/progdesc/stepup.cfm.
    (9) Sources of capital such as foundations, banks, credit unions, 
and charitable, fraternal, and business organizations.
    (10) Non-profit organizations such as the Girl Scouts and the Urban 
League, both of which have Memoranda of Agreement (MOA) with HUD. 
Copies of these MOAs can be found on the Community and Supportive 
Services page of the HOPE VI Web site at www.hud.gov/hopevi.
    (11) Civil rights and fair housing organizations.
    (12) Local area agencies on aging.
    (13) Local agencies and organizations serving persons with 
disabilities.
    (14) Non-profit organizations such as grassroots faith-based and 
other community-based organizations. HUD encourages you to partner or 
subgrant with non-profit organizations, including grassroots faith-
based and other community-based organizations, to provide CSS 
activities. Such organizations have a strong history of providing vital 
community services such as job training, childcare,

[[Page 60197]]

relocation supportive services, youth programs, technology training, 
transportation, substance abuse programs, crime prevention, health 
services, assistance to the homeless and homelessness prevention, 
counseling individuals and families on fair housing rights, providing 
elderly housing opportunities, and homeownership and rental housing 
opportunities in the neighborhood of their choice. HUD believes that 
grassroots organizations, e.g. civic organizations, faith-communities, 
national and local self-help homeownership organizations, faith-based, 
and other community-based organizations should be more effectively 
used, and has placed a high priority on expanding opportunities for 
grassroots organizations to participate in developing solutions for 
their own neighborhoods. See HUD's Center for Faith-Based and Community 
Initiatives Web site at www.hud.gov/offices/fbci/index.cfm.
    (a) HUD will consider an organization a ``grassroots'' organization 
if it is headquartered in the local community to which it provides 
services; and
    (i) Has an annual social services budget of no more than $300,000. 
This cap includes only the portion of the organization's budget 
allocated to providing social services. It does not include other 
portions of the budget such as salaries and expenses; or
    (ii) Has six or fewer full-time equivalent employees.
    (b) Local affiliates of national organizations are not considered 
``grassroots.''
(D) Rating Factor: CSS Program--6 Points Total
    In your application you will describe your CSS plan, including any 
plans to implement a CSS Endowment Trust. Each of the following 
subfactors will be rated separately.
    (1) You will receive 2 Points if you demonstrate that you will be 
able to provide case management within 30 days from the date of grant 
award execution so that residents who will be relocated have time to 
participate and benefit from CSS activities before leaving the site.
    (2) You will receive 2 Points if you have proposed a high quality, 
results-oriented CSS program that is based on a comprehensive case 
management system and enables residents affected by the revitalization 
plan to access, at a minimum, basic elements of education, job 
training, and other services that will assist them in transforming 
their lives and becoming self-sufficient.
    (3) You will receive 1 Point if you provide letters from a variety 
of experienced organizations and service providers that represent 
strong relationships and commitments to participate in your CSS 
activities and accomplish your CSS goals of the program.
    (4) You will receive 1 Point if your CSS Program has been developed 
in response to a rigorous resident needs identification process and 
directly responds to the identified needs.

IX. Relocation

(A) Definition
    You must provide suitable, accessible, decent, safe, and sanitary 
housing for each family required to relocate as a result of 
revitalization activities under your Revitalization Plan. Any person 
(including individuals, partnerships, corporations or associations) who 
moves from real property or moves personal property from real property 
directly (1) because of a written notice to acquire real property in 
whole or in part, or (2) because of the acquisition of the real 
property, in whole or in part, for a HUD-assisted activity, is covered 
by Federal relocation statute and regulations. Specifically, this type 
of move is covered by the acquisition policies and procedures and the 
relocation requirements of the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (URA), and the implementing 
government-wide regulation at 49 CFR part 24, and CPD Notice 02-08, 
Guidance on the Applications of the URA and Real Property Acquisition 
Policies Act of 1970, as amended, in HOPE VI Projects. The relocation 
requirements of the URA and the government-wide regulations, as well as 
CPD Notice 02-08, cover any person who moves permanently from real 
property or moves personal property from real property directly because 
of acquisition, rehabilitation, or demolition for an activity 
undertaken with HUD assistance.
(B) Relocation Guidelines
    (1) The HOPE VI Relocation Plan is intended to ensure that PHAs 
adhere to the URA and that all residents who have been or will be 
temporarily or permanently relocated from the site are provided with 
CSS activities such as mobility counseling and direct assistance in 
locating housing.
    (2) You are encouraged to involve HUD-approved housing counseling 
agencies, including faith-based, non-profit and/or other organizations, 
and/or individuals in the community to which relocatees choose to move, 
in order to ease the transition and minimize the impact on the 
neighborhood. HUD will view favorably innovative programs such as 
community mentors, support groups, and the like.
    (3) If applicable, you are encouraged to work with surrounding 
jurisdictions to assure a smooth transition if residents choose to move 
from your jurisdiction to the surrounding area.
(C) Standard Relocation Requirements
    You must carry out relocation activities in compliance with a 
relocation plan that conforms to the following statutory and regulatory 
requirements, as applicable:
    (1) Relocation or temporary relocation carried out as a result of 
rehabilitation under an approved Revitalization Plan is subject to the 
URA, the URA regulations at 24 CFR part 24, and regulations at 24 CFR 
968.108 or successor part.
    (2) Relocation carried out as a result of acquisition under an 
approved Revitalization Plan is subject to the URA and regulations at 
24 CFR 941.207 or successor part.
    (3) Relocation carried out as a result of disposition under an 
approved Revitalization Plan is subject to Section 18 of the 1937 Act, 
as amended.
    (4) Relocation carried out as a result of demolition under an 
approved Revitalization plan is subject to the URA regulations at 24 
CFR part 24.
(D) Threshold: The HOPE VI Revitalization Relocation Plan.
    Each applicant must complete a HOPE VI Relocation Plan. In your 
application, you must submit a certification that the HOPE VI 
Relocation Plan has been completed and that it conforms to the URA 
requirements as described in Section IX(C) above. If relocation was 
completed as of the application deadline (i.e., the targeted public 
housing site is vacant), this threshold will be deemed to be satisfied. 
Rather than providing a certification that the HOPE VI Relocation Plan 
has been completed, a certification that the relocation was completed 
must be included in the application. This certification may be provided 
in the form of a letter.
(E) Rating Factor: Relocation--5 Points Total
    (1) You will receive 5 Points if you provide a certification that 
all of the residents of the targeted severely distressed public housing 
project have been relocated and tracked as of the HOPE VI 
Revitalization application due date. All residents must have been 
tracked in order to receive these 5 points. If you qualify for these 5 
Points,

[[Page 60198]]

you are not eligible for any additional Points described below.
    (2) You will receive 4 Points if you:
    (a) Provide a certification that all of the residents of the 
targeted severely distressed public housing project have been relocated 
but you were unable to track all residents, as of the HOPE VI 
Revitalization application due date. You must describe the efforts 
undertaken to track residents and reasons why all residents were not 
tracked; or
    (b) Describe in your application:
    (i) An effective plan to track residents who have been or will be 
relocated from the targeted project; and
    (ii) A comprehensive plan that will provide mobility counseling and 
direct assistance in locating housing to residents who choose Housing 
Choice Voucher assistance that will help them to fully understand the 
full range of housing opportunities available to them in neighborhoods 
throughout the jurisdiction and to find housing in non-poverty areas. 
You must provide a list of available units to persons with disabilities 
as required under 24 CFR 8.28(a)(3).
    (3) You will receive 2 Points if you meet only one of the factors 
described in Section (2)(b) above.
    (4) You will receive 0 Points if your application does not meet 
either of the factors described in Section (2)(b) above, or if there is 
inadequate information in the application to rate this factor.

X. Fair Housing and Equal Opportunity

(A) Housing and Services for Persons With Disabilities
    (1) Accessibility Requirements. HOPE VI developments are subject to 
the accessibility requirements contained in several Federal laws. All 
applicable laws must be read together and followed. PIH Notice 2002-1, 
available at http://www.hud.gov/offices/pih/publications/notices/02/pih2002-1.pdf, and subsequent updates, provides an overview of all 
pertinent laws and implementing regulations pertaining to HOPE VI. All 
HOPE VI multifamily housing projects, whether they involve new 
construction and/or rehabilitation, are subject to the section 504 
accessibility requirements described in 24 CFR part 8. See in 
particular, 24 CFR 8.20-8.24. In addition, under the Fair Housing Act, 
all new construction of covered multifamily buildings must contain 
certain features of accessible and adaptable design. Units covered are 
all those in elevator buildings with four or more units and all ground 
floor units in buildings without elevators. The relevant accessibility 
requirements are provided in HUD's FHEO Web site at www.hud.gov/groups/fairhousing.cfm.
    (2) Specific Fair Housing requirements are:
    (a) The Fair Housing Act (42 U.S.C. 3601-19) and regulations at 24 
CFR part 100.
    (b) The prohibitions against discrimination on the basis of 
disability, including requirements that multifamily housing projects 
comply with the Uniform Federal Accessibility Standards, and that you 
make reasonable accommodations to individuals with disabilities under 
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and 
regulations at 24 CFR part 8.
    (c) Title II of the Americans with Disabilities Act (42 U.S.C 12101 
et seq.) and its implementing regulations at 28 CFR part 35.
    (d) The Architectural Barriers Act of 1968 (42 U.S.C. 4151) and the 
regulations at 24 CFR part 40.
(B) Rating Factor: FHEO Disability Issues 4 Points Total
    (1) Accessibility--2 Points.
    (a) Over and above the accessibility requirements listed above, you 
will receive 2 Points if you describe a detailed plan to:
    (i) Provide accessibility in homeownership units (e.g., setting a 
goal of constructing a percentage of the homeownership units as 
accessible units for persons with mobility impairments; promising to 
work with prospective disabled buyers on modifications to be carried 
out at a buyer's request; exploring design alternatives that result in 
townhouses that are accessible to persons with disabilities);
    (ii) Provide one-bedroom accessible rental units for single 
individuals with disabilities;
    (iii) Provide for accessibility modifications, where necessary, to 
Housing Choice Voucher-assisted units of residents who relocate from 
the targeted project to private or other public housing due to 
revitalization activities. The Department has determined that the costs 
of such modifications are eligible costs under the HOPE VI program;
    (iv) Where playgrounds are planned, propose ways to make them 
accessible to children with disabilities, over and above statutory and 
regulatory requirements; and
    (v) Where possible, design units with accessible front entrances.
    (b) You will receive 1 Point if your application describes a 
detailed plan to implement some of the accessibility priorities stated 
above, explaining why and how you will implement the identified 
accessibility priorities. (c) You will receive 0 Points if you fail to 
provide a description that meets the specifications above, or if there 
is inadequate information in your application to rate this factor.
    (2) Universal Design--2 Points.
    (a) You will receive 2 Points if you specifically describe:
    (i) A plan to meet the adaptability standards adopted by HUD at 24 
CFR 8.3 that apply to those units not otherwise covered by the 
accessibility requirements. Adaptability is the ability of certain 
elements of a dwelling unit, such as kitchen counters, sinks, and grab 
bars, to be added to, raised, lowered, or otherwise altered, to 
accommodate the needs of persons with or without disabilities, or to 
accommodate the needs of persons with different types or degrees of 
disability. For example, the wiring for visible emergency alarms may be 
installed so that a unit can be made ready for occupancy by a hearing-
impaired person (For information on adaptability, see www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf); and
    (ii) A plan to meet the visitability standards recommended by HUD 
that apply to units not otherwise covered by the accessibility 
requirements. Visitability standards allow a person with mobility 
impairments access into the home, but do not require that all features 
be made accessible. A visitable home also serves persons without 
disabilities, such as a mother pushing a stroller or a person 
delivering a large appliance. See www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf for information on visitability. The two 
standards of visitability are:
    (i) At least one entrance at grade (no steps), approached by a 
sidewalk; and
    (ii) The entrance door and all interior passage doors are at least 
2 feet 10 inches wide, allowing 32 inches of clear passage space.
    (b) You will receive 0 Points if your application does not 
adequately describe plans for (i) and (ii) as specified above, or if 
there is inadequate information in your application to rate this 
factor.
(C) Fair Housing and Civil Rights Compliance
    (1) Threshold: Compliance with Fair Housing and Civil Rights Laws. 
HUD will not consider your application for funding unless it complies 
with the threshold requirement described in Section V(A) of the General 
Section of this NOFA.
    (2) Threshold: Desegregation Orders. HUD will not consider your 
application for funding unless it complies with the

[[Page 60199]]

threshold requirement described in Section V(B) of the General Section 
of this NOFA.
    (3) Site and Neighborhood Standards for Replacement Housing. You 
must comply with the Fair Housing Act and Title VI of the Civil Rights 
Act of 1964, and regulations thereunder. In determining the location of 
any replacement housing, you must comply with either the site and 
neighborhood standards regulations at 24 CFR 941.202 (b-d) or with the 
standards outlined below.
    (a) HOPE VI Goals Related to Site and Neighborhood Standards. You 
are expected to ensure that your revitalization plan will expand 
assisted housing opportunities in non-poor and non-minority 
neighborhoods and/or will accomplish substantial revitalization in the 
Project and its surrounding neighborhood. You are also expected to 
ensure that eligible households of all races and ethnic groups will 
have equal and meaningful access to the housing.
    (b) Objectives in Selecting HUD-Assisted Sites. The fundamental 
goal of HUD's fair housing policy is to make full and free housing 
choice a reality. Housing choice requires that households of all races 
and ethnicity, or with disabilities, can freely decide the type of 
neighborhood where they wish to reside, that minority neighborhoods are 
no longer deprived of essential public and private resources, and that 
stable, racially-mixed neighborhoods are available as a meaningful 
choice for all. To make full and free housing choice a reality, sites 
for HUD-assisted housing investment should be selected so as to advance 
two complementary goals:
    (i) Expand assisted housing opportunities in non-minority 
neighborhoods, opening up choices throughout the metropolitan area for 
all assisted households; and
    (ii) Reinvest in minority neighborhoods, improving the quality and 
affordability of housing there to represent a real choice for assisted 
households.
    (c) Compliance with Fair Housing Act and Title VI of the Civil 
Rights Act of 1964. You must comply with the Fair Housing Act and Title 
VI of the Civil Rights Act of 1964, and implementing regulations, in 
determining the location of any replacement housing.
    (d) Grantee's Election of Requirements. You may, at your election, 
separately with regard to each site you propose, comply with the 
development regulations regarding Site and Neighborhood Standards (24 
CFR 941.202 (b)-(d)), or with the Site and Neighborhood Standards 
contained in this Section.
    (e) Replacement housing located on site or in the surrounding 
neighborhood. Replacement housing under HOPE VI that is located on the 
site of the existing project or in its surrounding neighborhood will 
not require independent approval under Site and Neighborhood Standards, 
since HUD will consider the scope and impact of the proposed 
revitalization to alleviate severely distressed conditions at the 
public housing project and its surrounding neighborhood in assessing 
the application to be funded under this NOFA.
    (f) Off-Site Replacement Housing Located Outside of the Surrounding 
Neighborhood. Unless you demonstrate that there are already significant 
opportunities in the metropolitan area for assisted households to 
choose non-minority neighborhoods (or these opportunities are under 
development), HOPE VI replacement housing not covered by Section (e) 
above may not be located in an area of minority concentration (as 
defined in paragraph (g) below) without the prior approval of HUD. Such 
approval may be granted if you demonstrate to the satisfaction of HUD 
that:
    (i) You have made determined and good faith efforts, and found it 
impossible with the resources available, to acquire an appropriate 
site(s) in an area not of minority concentration, or
    (ii) The replacement housing, taking into consideration both the 
CSS activities or other revitalizing activities included in the 
Revitalization Plan, and any other revitalization activities in 
operation or firmly planned, will contribute to the stabilization or 
improvement of the neighborhood in which it is located, by addressing 
any serious deficits in services, safety, economic opportunity, 
educational opportunity, and housing stock.
    (g) Area of Minority Concentration. The term ``area of minority 
concentration'' is any neighborhood in which:
    (i) The percentage of households in a particular racial or ethnic 
minority group is at least 20 points higher than the percentage of that 
particular minority group for the housing market area; i.e., the 
Metropolitan Statistical Area (MSA) in which the proposed housing is to 
be located; or
    (ii) The neighborhood's total percentage minority is at least 20 
points higher than the total percentage of all minorities for the MSA 
as a whole; or.
    (iii) In the case of a metropolitan area, the neighborhood's total 
percentage of minority persons exceeds 50 percent of its population.
    (4) Affirmatively Furthering Fair Housing. Section 808(e)(5) of the 
Fair Housing Act requires HUD to affirmatively further fair housing. 
HUD requires the same of its grant recipients. If you are a successful 
applicant, you will have a duty to affirmatively further fair housing 
opportunities for classes protected under the Fair Housing Act. 
Protected classes are:
    (a) Race;
    (b) Color;
    (c) National origin;
    (d) Religion;
    (e) Sex;
    (f) Disability; and
    (g) Familial status.
(D) Rating Factor: Fair Housing and Section 3--3 Points Total
    (1) Fair Housing--2 Points.
    (a) You will receive 2 Points if your application specifically 
describes:
    (i) Your efforts to attract families from all segments of the 
population on a non-discriminatory basis and with a broad spectrum of 
incomes to the revitalized site through intensive affirmative marketing 
efforts and how these efforts contribute to the deconcentration of low-
income neighborhoods;
    (ii) Your efforts to target your marketing and outreach activities 
to those persons and groups least likely to know about these housing 
opportunities, in order to promote housing choice and opportunity 
throughout your jurisdiction and contribute to the deconcentration of 
both minority and low-income neighborhoods. In your application, you 
must describe how your outreach and marketing efforts will reach out to 
persons of different races and ethnic groups, families with or without 
children, persons with disabilities and able-bodied persons, and the 
elderly; and
    (iii) The specific steps you plan to take through your proposed 
activities to affirmatively further fair housing. These steps can 
include, but are not limited to:
    (A) Addressing impediments to fair housing choice relating to your 
operations;
    (B) Working with local jurisdictions to implement their initiatives 
to affirmatively further fair housing;
    (C) Implementing, in accordance with Departmental guidance, 
relocation plans that result in increased housing choice and 
opportunity for residents affected by HOPE VI revitalization activities 
funded under this NOFA;
    (D) Implementing admissions and occupancy policies that are 
nondiscriminatory and help reduce racial and national origin 
concentrations; and

[[Page 60200]]

    (E) Initiating other steps to remedy discrimination in housing and 
promote fair housing rights and fair housing choice.
    (b) You will receive 1 Point if you address all of the above issues 
only in a general way.
    (c) You will receive 0 Points if you do not address all of the 
above issues, or if there is insufficient information to rate this 
factor.
    (2) Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3)--1 Point.
    (a) HOPE VI grantees must comply with section 3 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701u) (Economic Opportunities 
for Low- and Very Low-Income Persons in Connection with assisted 
Projects) and its implementing regulations at 24 CFR part 135. 
Information about Section 3 can be found at HUD's section 3 Web site at 
www.hud.gov/fhe/sec3over.html.
    (b) You will receive 1 Point if you describe a feasible plan to 
implement Section 3 that not only meets the minimum requirements 
described in Section (a) above but also exceeds those requirements. 
Your plan must include your goals by age group, types of jobs and other 
opportunities to be provided, and plans for tracking and evaluation. 
Section 3 firms must be in place quickly so that residents are trained 
in time to take advantage of employment opportunities such as jobs and 
other contractual opportunities in the pre-development, demolition, and 
construction phases of the revitalization. Your section 3 plan must 
demonstrate that you will, to the greatest extent feasible, direct 
training, employment and other economic opportunities to:
    (i) Low- and very low-income persons, particularly those who are 
recipients of government assistance for housing, and
    (ii) Business concerns which provide economic opportunities to low- 
and very low-income persons.
    (c) You will receive 0 Points if your plan to implement Section 3 
does not meet the standards listed in Section (b) above, or if there is 
inadequate information in your application to rate this factor.

XI. Well-Functioning Communities--8 Points Total

(A) Rating Factor: On-Site Housing--3 Points
    Your proposed unit mix must be designed to achieve a well 
functioning community on the revitalized site. While it is up to you to 
determine the unit mix that is appropriate for your site, it is 
essential that this unit mix include a sufficient amount of public 
housing rental units. Reducing concentration in this context does not 
necessarily mean reducing density of housing units; a well-functioning, 
mixed-income housing community may actually have a higher density of 
units, but with a unit mix appropriate for the site's market 
conditions. For purposes of this section, ``public housing rental 
units'' mean rental units under the ACC. Homeownership units and lease-
purchase units would not be counted. Units sold under section 32 are 
not considered as public housing rental units for this section.
    (1) You will receive 3 Points if your application describes a unit 
mix that is more than 35 percent or more public housing rental units.
    (2) You will receive 2 Points if your application describes a unit 
mix that is between 25 and 34 percent public housing rental units.
    (3) You will receive 1 Point if your application describes a unit 
mix that is between 15 and 24 percent public housing rental units.
    (4) You will receive 0 Points if your application describes a unit 
mix that is 14 percent or less, or if there is inadequate information 
in your application to rate this factor.
(B) Off-Site Housing--1 Point
    (1) Although not required, you are encouraged to consider 
development of replacement housing in locations other than the original 
severely distressed site (i.e., off-site housing). Locating off-site 
housing in neighborhoods with low levels of poverty and/or low 
concentrations of minorities will provide maximized housing 
alternatives for low-income residents who are currently on-site and 
assist the goal of creating desegregated, mixed-income communities. The 
effect on-site will be to assist in the deconcentration of low-income 
residents and increase the number of replacement units.
    (2) Although it is acknowledged that off-site housing is not 
appropriate in some communities, if you do not propose to include off-
site housing in your Revitalization Plan, you are not eligible to 
receive this Point.
    (3) If you propose an off-site housing component in your 
application, you must be sure to include that component when you 
discuss other components (e.g. on-site housing, homeownership housing, 
etc.). Throughout your application, your unit counts and other 
numerical data must take into account the off-site component.
    (4) Threshold: If you propose to develop off-site housing in any 
phase of your proposed revitalization plan, you MUST provide evidence 
in your application that you (not your developer) have site control of 
the property(ies). Evidence may include an option to purchase the 
property, a sales agreement, a land swap, or a deed. Evidence may not 
include a letter from the Mayor or other official, letters of support 
from members of the appropriate municipal entities, or a resolution 
evidencing the PHA's intent to exercise its power of eminent domain. 
Evidence of site control may only be made contingent upon the receipt 
of the HOPE VI grant, satisfactory compliance with the environmental 
review requirements in accordance with Section XVII of this NOFA, and 
the site and neighborhood standards in Section X(C)(3) of this NOFA. If 
you demonstrate site control through an option to purchase, the option 
must extend for at least 180 days after the application due date. If 
you propose to develop off-site housing and you do not provide 
acceptable site control, your entire application will be ineligible for 
funding.
    (5) Rating factor. You will receive 1 Point if you propose to 
develop an off-site housing component(s) and document that: you have 
site control of the property(ies), that the site(s) meets all 
environmental review requirements, and that the site(s) meets site and 
neighborhood standards, in accordance with (4) above.
(C) Threshold: Market Rate Housing
    If you include market rate housing in your Revitalization Plan, you 
must demonstrate that there is a demand for the housing units of the 
type, number, and size proposed in the location you have chosen. In 
your application you must provide a preliminary market assessment 
letter prepared by an independent, third party, credentialed market 
research firm, or professional that describes its assessment of the 
demand and associated pricing structure for the proposed residential 
units and any community facilities, economic development, and retail 
structures, based on the market and economic conditions of the project 
area. If, after the cure period, this letter is not included in your 
application, it will be ineligible for funding.
(D) Rating Factor: Homeownership Housing--4 Points
    The Department has placed the highest priority on increasing 
homeownership opportunities for low- and moderate-income persons, 
persons with disabilities, the elderly, minorities, and families where 
English may be a

[[Page 60201]]

second language. Too often these individuals and families are shut out 
of the housing market through no fault of their own. HUD encourages 
applicants to work aggressively to open up the realm of homeownership.
    (1) Your application will receive 4 Points if you propose and 
describe a feasible, well-defined plan for homeownership. In your 
application, you will describe all of the following:
    (a) The purpose of your homeownership program;
    (b) The number of units planned and their location(s);
    (c) A description and justification of the families that will be 
targeted for the program;
    (d) The proposed source of your construction and permanent 
financing of the units; and
    (e) A description of the homeownership counseling you will provide 
to prospective families, including such subjects as the homeownership 
process, housing in non-impacted areas, credit repair, budgeting, and 
home maintenance.
    (2) You will receive 2 Points for this factor if you address in 
your description some but not all of the items listed under (1).
    (3) You will receive 0 Points for this factor if you do not propose 
to include homeownership units in your Revitalization Plan, your 
proposed program is not feasible and/or well defined, or there is 
inadequate information in your application to rate this factor.
(E) Threshold: Zoning Approval
    If you are proposing to use off-site parcels of land for housing 
development or other uses that are currently zoned for a purpose 
different than the one proposed in your revitalization plan, your 
application must include a certification from the appropriate local 
official documenting that all required zoning approvals have been 
secured for such parcels, and/or the actual zoning approval document 
for the parcel(s). For example, if you propose to develop housing on 
land that is currently zoned as parkland or industrial land, you must 
provide evidence in the application that the zoning change has been 
secured to permit housing development.

XII. Soundness of Approach

(A) Threshold: Appropriateness of Proposal
    In accordance with section 24(e)(1) of the 1937 Act, each 
application must demonstrate the appropriateness of the proposal in the 
context of the local housing market relative to other alternatives. You 
must briefly discuss other possible alternatives to your proposal and 
explain why your plan is more appropriate. This is a statutory 
requirement and an application threshold. Any deficiencies in your 
narrative may not be corrected after the application is submitted. 
Examples of alternative proposals may include:
    (1) Rebuilding or rehabilitating an existing project or units at an 
off-site location that is in an isolated, non-residential, or otherwise 
inappropriate area;
    (2) Proposing a range of incomes, housing types (rental, 
homeownership, market rate, public housing, townhouse, detached house, 
etc.), or costs which cannot be supported by a market analysis; and/or
    (3) Proposing to use the land in a manner that is contrary to the 
goals of your agency.
(B) Rating factor: Overall Quality of Plan--19 Points Total
    (1) Quality and Consistency of the Application--2 Points.
    Your application may receive between 0 and 2 points for its 
demonstration of quality and consistency. The information and 
strategies described in your application must be well organized, 
coherent, and internally consistent. Numbers and statistics in your 
narratives must be consistent with the information provided in the 
attachments. Also, the physical and CSS aspects of the application must 
be compatible and coordinated with each other. Pay particular attention 
to the data provided for:

--Types and numbers of units;
--Budgets;
--Other financial estimates, including sources and uses; and
--Numbers of residents affected.

    (a) You will receive 2 points if your application demonstrates a 
high level of quality and consistency;
    (b) You will receive 1 point if your application demonstrates a 
moderate level of quality and consistency;
    (c) You will receive 0 points if your application fails to 
demonstrate an acceptable level of quality and consistency;
    (2) Appropriateness and Feasibility of the Plan--2 Points. (a) You 
will receive 2 points if your Revitalization Plan demonstrates:
    (i) Appropriateness and suitability, in the context of the 
community, market conditions, and other revitalization options, in 
accordance with XII(A);
    (ii) Marketability, in the context of local conditions;
    (iii) Financial feasibility, as demonstrated in the financial 
structure(s) proposed in the application.
    (b) You will receive 1 Point if your application only moderately 
demonstrates the criteria of (2)(a)(i)-(iii) above.
    (c) You will receive 0 Points if your application does not 
demonstrate the criteria of (2)(a)(i)-(iii) above.
    (3) Neighborhood Impact and Sustainability of the Plan--2 Points. 
(a) You will receive 2 Points if your Revitalization Plan, including 
plans for retail, office, other economic development activities, as 
appropriate, will:
    (i) Result in a revitalized site that will enhance the neighborhood 
in which the project is located;
    (ii) Spur outside investment into the surrounding community;
    (iii) Enhance economic opportunities for residents; and
    (iv) Remove an impediment to continued redevelopment or start a 
community-wide revitalization process.
    (b) You will receive 1 Point if your application demonstrates that 
your Revitalization Plan will have only a moderate effect on activities 
in the surrounding community, as described in (a)(i)-(iv) above.
    (c) You will receive 0 Points if your application does not 
demonstrate that your Revitalization Plan will have an effect on the 
surrounding community, as described in (a)(i)-(iv) above, or if there 
is inadequate information in your application to rate this factor.
    (4) Project Readiness--7 Points. HUD places top priority on 
projects that will be able to commence immediately after grant award. 
You will receive the following points for each applicable subfactor 
certified in your application.
    (a) You will receive 2 Points if the targeted severely distressed 
public housing project is completely vacant.
    (b) You will receive 2 Points if the targeted severely distressed 
public housing site is cleared.
    (c) You will receive 1 Point if a Master Development Agreement has 
been developed and is ready to submit to HUD.
    (d) You will receive 1 Point if your preliminary site design is 
complete.
    (e) You will receive 1 Point if you have held 5 or more public 
planning sessions leading to resident acceptance of the Plan.
    (5) Design--3 Points. HUD is seeking excellence in design. We urge 
you to carefully select your architects and/or planners, and to enlist 
local affiliates of national architectural and planning organizations 
such as the American Institute of Architects, the American

[[Page 60202]]

Society of Landscape Architects, the American Planning Association, the 
Congress for the New Urbanism, and/or the department of architecture at 
a local college or university to assist you in assessing qualifications 
of design professionals and/or participating on a selection panel that 
results in the procurement of excellent design services.
    HUD encourages you to select a design team that is committed to a 
process in which residents, including young people and seniors, the 
broader community, and other stakeholders participate in designing the 
new community.
    Your proposed site plan, new units, and other buildings must be 
designed to be compatible with and enrich the surrounding neighborhood. 
Local architecture and design elements and amenities should be 
incorporated into the new or rehabilitated homes so that the 
revitalized sites and structures will blend into the broader community 
and appeal to the market segments for which they are intended. Housing, 
community facilities, and economic development space must be well 
integrated. You must select members of your Team who have the ability 
to meet these requirements.
    (a) You will receive 3 Points if your proposed site plan, new 
dwelling units, and buildings demonstrate that:
    (i) You have proposed a site plan that is compact, pedestrian-
friendly, with an interconnected network of streets and public open 
space;
    (ii) Your proposed housing, community facilities, and economic 
development facilities are thoroughly integrated into the community 
through the use of local architectural tradition, building scale, 
grouping of buildings, and design elements; and
    (iii) Your plan proposes appropriate enhancements of the natural 
environment.
    (b) You will receive 1 Point if your proposed site plan, new 
dwelling units, and buildings demonstrate design that adequately 
addresses the elements above.
    (c) You will receive 0 Points if your proposed design is 
perfunctory or otherwise does not address the above elements. You will 
also receive 0 Points if there is inadequate information in the 
application to rate this factor.
    (6) Evaluation--3 Points. You are encouraged to work with your 
local university(ies), other institutions of learning, foundations, 
and/or others to evaluate the performance and impact of their HOPE VI 
Revitalization Plan over the life of the grant. The proposed 
methodology must measure success against goals you set at the outset of 
your revitalization activities. Evaluators must establish baselines and 
provide ongoing interim reports that will allow you to make changes as 
necessary as your project proceeds. Where possible, you are encouraged 
to form partnerships with Historically Black Colleges and Universities 
(HBCUs); Hispanic-Serving Institutions (HSIs); Community Outreach 
Partnership Centers (COPCs); the Alaskan Native/Native Hawaiian 
Institution Assisting Communities Program (as appropriate); and others 
in HUD's University Partnerships Program.
    (a) You will receive 3 Points if your application includes a 
letter(s) from an institution(s) of higher learning, foundations, or 
other organization that specializes in research and evaluation that 
provides a commitment to work with you to evaluate your program and 
describes its proposed approach to carry out the evaluation if your 
application is selected for funding. The letter must provide the extent 
of the commitment and involvement, the extent to which you and the 
local institution of higher learning will cooperate, and the proposed 
approach. The commitment letter must address all of the following areas 
for evaluation:
    (i) The impact of your HOPE VI effort on the lives of the 
residents;
    (ii) The nature and extent of economic development generated in the 
community;
    (iii) The effect of the revitalization effort on the surrounding 
community, including spillover revitalization activities, property 
values, etc.; and
    (iv) Your success at integrating the physical and CSS aspects of 
your strategy.
    (b) You will receive 0 Points if your application does not include 
a commitment letter that conforms to the specifications in paragraph 
(b) above.

XIII. Application Requirements

(A) Application Components
    (1) Narrative Exhibits. (a) The first part of your application will 
be comprised of narrative exhibits. Your narratives will respond to 
each rating factor in the NOFA and will also respond to threshold 
requirements. Among other things, your narratives must describe your 
overall planning activities, including but not limited to relocation, 
community and supportive services, and development issues.
    (b) Each HOPE VI Revitalization application must contain no more 
than 100 pages of narrative exhibits. Any pages after the first 100 
pages of narrative exhibits will not be reviewed. Although submitting 
pages in excess of the page limitations will not disqualify an 
application, HUD will not consider the information on any excess pages, 
which may result in a lower score or failure of a threshold. Text 
submitted at the request of HUD to correct a technical deficiency will 
not be counted in the 100 page limit.
    (2) Attachments. (a) The second part of your application will be 
comprised of Attachments. These documents will also respond to the 
rating factors in the NOFA, as well as threshold requirements. They 
will include documents such as maps, photographs, letters of 
commitment, application data forms, and various certifications unique 
to HOPE VI Revitalization.
    (b) Each HOPE VI Revitalization application must contain no more 
than 125 pages of attachments. Any pages after the first 125 pages of 
attachments will not be considered. Although submitting pages in excess 
of the page limit will not disqualify an application, HUD will not 
consider the information on any excess pages, which may result in a 
lower score or failure to meet a threshold.
    (3) Exceptions to Page Limits. The documents listed below 
constitute the only exceptions and are not counted in the page limits 
listed in Sections (1)(b) and (2)(b) above:
    (a) Additional pages submitted at the request of HUD in response to 
a technical deficiency.
    (b) Attachments that provide documentation of commitments from 
resource providers or CSS providers.
    (c) Attachments that provide documentation of site control and site 
acquisition in accordance with Section XI(B)(4) and (5).
    (d) Narratives and Attachments, as relevant, required to be 
submitted only by existing HOPE VI Revitalization Grantees in 
accordance with Sections IV(A)(3) and IV(B)(2) of this NOFA (Capacity).
    (e) Information required of MTW applicants only.
    (4) Standard Forms and Certifications. The last part of your 
application will be comprised of standard certifications common to many 
HUD programs. Required forms are included in the HOPE VI Application 
and will be available electronically on the Web sites listed in Section 
III(D)(2) in the General Section of this NOFA. If you are requesting 
Housing Choice Voucher assistance as described in Section III(E) in the 
General Section of this NOFA, it must be placed in this Standard Forms 
and Certifications Section of your HOPE VI application. These forms 
must be placed at the back of the application, except for the 
Application for Federal Assistance (SF-

[[Page 60203]]

424) and the Acknowledgment of Application Receipt (HUD-2993), must be 
the first two pages of your application.
(B) Application Format
    To speed the processing of your application, you are asked to 
follow these instructions when preparing your application:
    (1) Double space your narrative pages. Single spaced pages will be 
counted as two pages.
    (2) Use 8\1/2\ x 11 inch paper, one side only. Only the City map 
may be submitted on an 8\1/2\ by 14 sheet of paper. Larger pages will 
be counted as two pages.
    (3) All margins should be 1 inch, but no smaller than \1/2\ inch.
    (4) Use at least an 11 Point font.
    (5) Any pages marked with numbers and letters (e.g., 75A, 75B, 75C) 
will be treated as separate pages.
    (6) If a Section is not applicable, omit it; do not insert a page 
marked n/a.
    (7) Mark each Exhibit and Attachment with an appropriate tab. No 
material on the tab will be considered for review purposes, although 
pictures are allowed.
    (8) No more than one page of text may be placed on one sheet of 
paper; i.e., you may not shrink pages to get two or more on a page.
    (9) Do not format your narrative in columns. Pages with text in 
columns will be counted as two pages.
    (10) The applications (copy and original) should be packaged in a 
3-ring binder.
(C) Signatures
    Unless otherwise indicated, the Executive Director of the applicant 
PHA, or his or her designate, must sign each form or certification, 
whether part of an Attachment or a Standard Certification. Signatures 
need not be original in the copy.

XIV. Revitalization Application Selection Process

(A) Revitalization Grant Application Evaluation
    (1) HUD's selection process is designed to ensure that HOPE VI 
Revitalization grants are awarded to eligible PHAs with the most 
meritorious applications.
    (2) HUD will only rate HOPE VI Revitalization applications that 
have met the thresholds described in this HOPE VI NOFA.
(B) Threshold and Completeness Review
    (1) Application Screening. HUD will screen each application to 
determine if it meets the threshold criteria listed in Section II of 
this NOFA.
    (2) HUD will consider the information you submit by the application 
due date. After the application due date, HUD may not, consistent with 
its regulations in 24 CFR part 4, subpart B, consider any unsolicited 
information that you or any third party may want to provide.
    (3) In order not to unreasonably exclude applications from being 
rated and ranked, HUD may contact applicants to ensure proper 
completion of the application on a uniform basis for all applicants. 
After your application has been screened, HUD may contact you to 
clarify an item in your application or to give you an opportunity to 
correct a technical deficiency. HUD may not seek clarification of items 
or responses that would improve the substantive quality of your 
response to any rating factor. Examples of curable technical 
deficiencies include your failure to include a required certification 
or sign a document. If HUD identifies a technical deficiency, it will 
notify you by fax of the clarification or deficiency. You must submit 
information to cure the deficiency to HUD within 14 calendar days from 
the date of HUD notification. (If the due date falls on a Saturday, 
Sunday, or Federal holiday, your correction must be received by HUD on 
the following business day.) 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.
    (4) In order to evaluate Thresholds, HUD may also use internal 
information sources that will provide information regarding audit 
findings, the status of existing HOPE VI Revitalization grants 
obligation of Capital Funds, and other pertinent information. HUD will 
not consider external sources such as newspaper articles and letters to 
evaluate applications unless they are submitted in your application.
    (5) Applications that do not meet every threshold will be deemed 
ineligible for funding and will not be rated.
(C) Preliminary Rating and Ranking
    (1) Rating.
    (a) HUD will preliminarily rate each eligible application, SOLELY 
on the basis of the rating factors described in this HOPE VI NOFA.
    (b) When rating applications, HUD reviewers will not use any 
information included in any HOPE VI application submitted in a prior 
year.
    (c) HUD will assign a preliminary score for each rating factor and 
a preliminary total score for each eligible application.
    (d) The maximum number of Points for each Revitalization 
application is 108.
    (2) Ranking.
    (a) After preliminary review, applications will be ranked in score 
order.
    (b) Applications will be deemed ``competitive'' if they have a 
preliminary score of 85 or above.
    (c) Applications that do not have a preliminary score of at least 
85 will not receive a final score and will not be eligible for funding.
(D) Final Panel Review
    (1) A Final Review Panel made up of HUD staff will:
    (a) Assess each competitive application, as defined in Section 
XIV(C) above;
    (b) Assign the final score; and
    (c) Recommend for selection the most highly-rated competitive 
applications, subject to the amount of available funding, in accordance 
with the allocation of funds described in Section II of the General 
Section of this NOFA.
    (2) HUD reserves the right to make reductions in funding to delete 
ineligible items, with the exception of the prohibition to request 
funds for units that do not meet the requirements of replacement 
housing, in accordance with Section III(D)(8) of this NOFA.
    (3) In accordance with the FY 2003 HOPE VI appropriation, HUD may 
not use HOPE VI funds to grant competitive advantage in awards to 
settle litigation or pay judgments.
(E) Tie Scores
    If two or more applications have the same score and there are 
insufficient funds to select all of them, HUD will select for funding 
the application(s) with the highest score for Rating Factor XII, 
Overall Quality of the Plan. If a tie still remains, HUD will select 
for funding the application(s) with the highest score for Capacity, 
Rating Factor IV. HUD will select further tied applications with the 
highest score for Need, Rating Factor V.
(F) Transfer to Demolition Grants
    If funds remain after all eligible HOPE VI Revitalization grant 
applications are funded and the amount remaining is inadequate to 
feasibly fund the next eligible Revitalization application, HUD 
reserves the right to:
    (1) Reallocate unused funds to fund or supplement the next eligible 
HOPE VI Demolition grant application(s);
    (2) Reallocate unused funds to the amount available for Housing 
Choice Voucher assistance, if necessary; and/or
    (3) Carry over unused funds to the next fiscal year.

[[Page 60204]]

XV. Post Award Activities

    (A) Notification of Funding Decisions. The HUD Reform Act prohibits 
HUD from notifying you as to whether or not you have been selected to 
receive a Revitalization grant until it has announced all HOPE VI 
Revitalization grant recipients. If your Revitalization application has 
been found to be ineligible or if it did not receive enough Points to 
be funded, you will not be notified until the successful applicants 
have been notified. HUD will provide written notification to all HOPE 
VI applicants, whether or not they have been selected for funding.
    (B) Applicant Debriefing. Each applicant will be provided a copy of 
the total score their application received, including the score 
received for each rating factor.
    (C) Environmental Review. HUD notification that you have been 
selected to receive a HOPE VI grant constitutes only preliminary 
approval. Grant funds may not be released until the responsible entity 
completes an environmental review and you submit and obtain HUD 
approval of a request for release of funds and the responsible entity's 
environmental certification in accordance with Section XVII of this 
NOFA.
    (D) Revitalization Grant Agreement. When you are selected to 
receive a Revitalization grant, HUD will send you a HOPE VI 
Revitalization Grant Agreement, which constitutes the contract between 
you and HUD to carry out and fund public housing revitalization 
activities. Both you and HUD will sign the cover sheet of the Grant 
Agreement. It is effective on the date of HUD's signature. The Grant 
Agreement differs from year to year. Past Revitalization Grant 
Agreements can be found on the HOPE VI Web site at www.hud.gov/hopevi.
    (E) HOPE VI Endowment Trust Addendum to the Grant Agreement. This 
document must be executed between the Grantee and HUD in order for the 
Grantee to use CSS funds in accordance with Section VIII(A)(3) of this 
NOFA.
    (F) Revitalization Plan. After HUD conducts a post-award review of 
your application and makes a visit to the site, you will be required to 
submit components of your Revitalization Plan to HUD, as provided in 
the HOPE VI Revitalization Grant Agreement. These components include, 
but are not limited to:
    (1) Supplemental Submissions, including a HOPE VI Program Budget;
    (2) A Community and Supportive Services work plan, in accordance 
with guidance provided by HUD;
    (3) A standard or mixed-finance development proposal, as 
applicable;
    (4) A demolition and/or disposition application, as applicable; and
    (5) A homeownership proposal, as applicable.

XVI. Revitalization Grant Implementation Requirements

    (A) General Section Requirements. See the General Section of this 
NOFA for other Grant Implementation and Additional Governmental 
Requirements that you must implement.
    (B) Quarterly Report. If you are selected for funding, you must 
submit a Quarterly Report to HUD.
    (1) HUD will provide training and technical assistance on the 
filing and submitting of Quarterly Reports.
    (2) Filing of Quarterly Reports is mandatory for all Grantees, and 
failure to do so within the required time frame will result in 
suspension of grant funds until the report is filed and approved by 
HUD.
    (3) Grantees will be held to the milestones that are reported on 
the Quarterly Report Administrative and Compliance Checkpoints Report, 
as approved by HUD.
    (4) Grantees must also report obligations and expenditures in 
LOCCS, or its successor system, on a quarterly basis.
    (C) Timeliness of Construction. Grantees must proceed within a 
reasonable time frame, as indicated below. In determining 
reasonableness of such time frame, HUD will take into consideration 
those delays caused by factors beyond your control. These timeframes 
must be reflected in the form of a program schedule, in accordance with 
the threshold requirement at Section IV(C).
    (1) Grantees must submit Supplemental Submissions within 90 days 
from the date of HUD's written request.
    (2) Grantees must submit CSS work plans within 90 days from the 
execution of the Grant Agreement.
    (3) All other required components of the Revitalization Plan and 
any other submissions not mentioned above must be submitted in 
accordance with the Quarterly Report Administrative and Compliance 
Checkpoints Report, as approved by HUD.
    (4) Grantees must start construction within 12 months from the date 
of HUD's approval of the Supplemental Submissions as requested by HUD 
after grant award. This time period may not exceed 18 months from the 
date the Grant Agreement is executed.
    (5) Grantees must submit the development proposal for the first 
phase of construction within 12 months of grant award. The program 
schedule must indicate the date on which the development proposal for 
each phase of the revitalization plan will be submitted to HUD.
    (6) The closing of the first phase must take place within 15 months 
of grant award.
    (7) Grantees must complete construction within 48 months from the 
date of HUD's approval of your Supplemental Submissions. This time 
period for completion may not exceed 54 months from the date the Grant 
Agreement is executed.
    (8) In accordance with section 24(i) of the 1937 Act, if a Grantee 
does not proceed within a reasonable time frame, as described in 
Sections (B)(1) through (7) above, HUD shall withdraw any unobligated 
grant amounts. HUD shall redistribute any withdrawn amounts to one or 
more other applicants eligible for HOPE VI assistance or to one or more 
other entities capable of proceeding expeditiously in the same locality 
in carrying out the Revitalization Plan of the original Grantee.
    (9) 31 U.S.C. 1552. In accordance with this statute, all FY 2003 
HOPE VI funds must be expended by September 30, 2009. Any funds that 
are not expended by that date will be cancelled and recaptured by the 
Treasury, and thereafter will not be available for obligation or 
expenditure for any purpose.
    (D) Building Standards. (1) Building Codes. All activities that 
include construction, rehabilitation, lead-based paint removal, and 
related activities must meet or exceed local building codes. You are 
encouraged to read the policy statement and Final Report of the HUD 
Review of Model Building Codes that identifies the variances between 
the design and construction requirements of the Fair Housing Act and 
several model building codes. That report can be found on the HUD Web 
site at www.hud.gov/fhe/modelcodes.
    (2) Deconstruction. HUD encourages you to design programs that 
incorporate sustainable construction and demolition practices, such as 
the dismantling or ``deconstruction'' of public housing units, 
recycling demolition debris, and reusing salvage materials in new 
construction. ``A Guide to Deconstruction'' can be found at 
www.hud.gov/deconstr.pdf.
    (3) PATH. HUD encourages you to use PATH technologies in the 
construction and delivery of replacement housing. PATH (Partnership for 
Advancing Technology in Housing) is a voluntary initiative that seeks 
to accelerate the creation and widespread use of

[[Page 60205]]

advanced technologies to radically improve the quality, durability, 
environmental performance, energy efficiency, and affordability of our 
Nation's housing.
    (a) PATH's goal is to achieve dramatic improvement in the quality 
of American housing by the year 2010. PATH encourages leaders from the 
home building, product manufacturing, insurance and financial 
industries, and representatives from federal agencies dealing with 
housing issues to work together to spur housing design and construction 
innovations. PATH will provide technical support in design and cost 
analysis of advanced technologies to be incorporated in project 
construction.
    (b) Applicants are encouraged to employ PATH technologies to exceed 
prevailing national building practices by:
    (i) Reducing costs;
    (ii) Improving durability;
    (iii) Increasing energy efficiency;
    (iv) Improving disaster resistance; and
    (v) Reducing environmental impact.
    (c) More information, the list of technologies, latest PATH 
Newsletter, results from field demonstrations, and PATH projects can be 
found at www.pathnet.org.
    (4) Energy Efficiency.
    (a) New construction must comply with the latest HUD-adopted Model 
Energy Code issued by the Council of American Building Officials.
    (b) HUD encourages you to set higher standards for energy and water 
efficiency in HOPE VI new construction, which can achieve utility 
savings of 30 to 50 percent with minimal extra cost.
    (c) You are encouraged to negotiate with your local utility company 
to obtain a lower rate. Utility rates and tax laws vary widely 
throughout the country. In some areas, PHAs are exempt or partially 
exempt from utility rate taxes. Some PHAs have paid unnecessarily high 
utility rates because they were billed at an incorrect rate 
classification.
    (d) Local utility companies may be able to provide grant funds to 
assist in energy efficiency activities. States may also have programs 
that will assist in energy efficient building techniques.
    (e) You must use new technologies that will conserve energy and 
decrease operating costs where cost effective. Examples of such 
technologies include:
    (i) Geothermal heating and cooling;
    (ii) Placement of buildings and size of eaves that take advantage 
of the directions of the sun throughout the year;
    (iii) Photovoltaics (technologies that convert light into 
electrical power);
    (iv) Extra insulation;
    (v) Smart windows; and
    (vi) Energy Star appliances.
    (f) HUD's Energy Web site is located at http://www.hudstage.hud.gov/offices/cpd/energyenviron/energy/index.cfm
    (E) 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. It 
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, 
grantees must ensure that the EIT allows:
    (1) Employees with disabilities to have access to and use 
information and data that is comparable to the access and use of data 
by employees who do not have disabilities; and
    (2) Members of the public with disabilities seeking information or 
service from a grantee must have access to and use of information and 
data that is comparable to the access and use of data by members of the 
public who do not have disabilities. If these standards impose an undue 
burden on a grantee, they may provide an alternative means to allow the 
individual to use the information and data. 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 are 
generally provided.

XVII. Environmental Requirements

    (A) Environmental Review. (1) Environmental Review Requirements for 
the HOPE VI Program. Please see Section VII of the General Section of 
the NOFA for environmental review requirements for HOPE VI Grants.
    (2) Additional Environmental Review Requirements for HOPE VI 
Revitalization Grants. (a) If the environmental review is completed 
before HUD approval of the HOPE VI Supplemental Submissions and you 
have submitted your Request for Release of Funds (RROF), the 
Supplemental Submissions approval letter shall state any conditions, 
modifications, prohibitions, etc. as a result of the environmental 
review, including the need for any further environmental review. You 
must carry out any mitigating/remedial measures required by HUD, or 
select an alternate eligible property, if permitted by HUD. If HUD does 
not approve the remediation plan and a fully funded contract with a 
qualified contractor licensed to perform the required type of 
remediation is not executed, HUD reserves the right to determine that 
the grant is in default.
    (b) If the environmental review is not completed and/or you have 
not submitted the RROF before HUD approval of the Supplemental 
Submissions, the letter approving the Supplemental Submissions will 
instruct you to refrain from undertaking, obligating, or expending 
funds on physical activities or other choice-limiting actions, until 
HUD approves your RROF and the related certification of the responsible 
entity (or HUD has completed the environmental review). The 
Supplemental Submissions approval letter also will advise you that the 
approved Supplemental Submissions may be modified on the basis of the 
results of the environmental review.
    (B) There must not be any environmental or public policy factors 
such as sewer moratoriums that would preclude development in the 
requested locality. Applicants will certify to this when signing the 
HOPE VI Revitalization Grant Application Certifications.
    (C) 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:
    (1) 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
    (2) 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.
    (D) 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.


Appendix AHOPE VI Revitalization Grant Applicant Certifications

    Acting on behalf of the Board of Commissioners of the Housing 
Authority listed below, as its Chairman, I approve the submission of 
the HOPE VI Revitalization application, of which this document is a 
part, and make the following certifications to and

[[Page 60206]]

agreements with the Department of Housing and Urban Development 
(HUD) in connection with the application and implementation thereof:
    1. The public housing project or building in a project targeted 
in this HOPE VI Revitalization grant application meets the 
definition of severe distress in accordance with section 24(j)(2) of 
the United States Housing Act of 1937 (``1937 Act'').
    2. The PHA has not received assistance from the Federal 
government, State, or unit of local government, or any agency or 
instrumentality, for the specific activities for which funding is 
requested in the HOPE VI Revitalization application.
    3. The PHA does not have any litigation pending which would 
preclude timely startup of activities.
    4. The PHA is in full compliance with any desegregation or other 
court order related to Fair Housing (e.g., Title VI of the Civil 
Rights Act of 1964, the Fair Housing Act, and section 504 of the 
Rehabilitation Act of 1973) that affects the PHA's public housing 
program and that is in effect on the date of application submission.
    5. The PHA has returned any excess advances received during 
development or modernization, or amounts determined by HUD to 
constitute excess financing based on a HUD-approved Actual 
Development Cost Certificate (ADCC) or Actual Modernization Cost 
Certificate (AMCC), or that HUD has approved a payback plan.
    6. There are no environmental factors, such as sewer 
moratoriums, precluding development in the requested locality.
    7. In accordance with the Flood Disaster Protection Act of 1973 
(42 U.S.C. 4001-4128), the property targeted for acquisition or 
construction (including rehabilitation) is not 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.
    8. The application does not target properties in the Coastal 
Barrier Resources System, in accordance with the Coastal Barrier 
Resources Act (16 U.S.C. 3501).
    If selected for HOPE VI Revitalization funding:
    9. The PHA will comply with all policies, procedures, and 
requirements prescribed by HUD for the HOPE VI Program, including 
the implementation of HOPE VI revitalization activities, in a 
timely, efficient, and economical manner.
    10. The PHA will not receive assistance from the federal 
government, state, or unit of local government, or any agency or 
instrumentality, for the specific activities funded by the HOPE VI 
Revitalization grant. The PHA has established controls to ensure 
that any activity funded by the HOPE VI Revitalization grant is not 
also funded by any other HUD program, thereby preventing duplicate 
funding of any activity.
    11. The PHA will not provide to any development more assistance 
under the HOPE VI Revitalization grant than is necessary to provide 
affordable housing after taking into account other governmental 
assistance provided.
    12. The PHA will supplement the aggregate amount of the HOPE VI 
Revitalization grant with funds from sources other than HOPE VI in 
an amount not less than 5 percent of the amount of the HOPE VI 
grant.
    13. In addition to supplemental amounts provided in accordance 
with Certification 12 above, if the PHA uses more than 5 percent of 
the HOPE VI grant for the community and supportive services 
component, it will provide supplemental funds from sources other 
than HOPE VI, dollar for dollar, for the amount over 5 percent of 
the grant used for the community and supportive services component.
    14. Disposition activity under the grant will be conducted in 
accordance with section 18 of the 1937 Act.
    15. The PHA will carry out acquisition of land, or acquisition 
of off-site units with or without rehabilitation to be used as 
public housing, in accordance with 24 CFR part 941, or successor 
part.
    16. The PHA will carry out major rehabilitation and other 
physical improvements of housing and non-dwelling facilities in 
accordance with 24 CFR 968.11 2(b), (d), (e), and (g)-(o), 24 CFR 
968.130, and 24 CFR 968.135(b) and (d) or successor part.
    17. The PHA will carry out construction of public housing rental 
replacement housing, both on-site and off-site, and community 
facilities, in accordance with 24 CFR part 941 or successor part, 
including mixed-finance development in accordance with subpart F.
    18. The PHA will carry out replacement homeownership activities 
in conformance with the requirements of section 24(d)(1)(J), which 
may include a homeownership proposal under section 32 of the 1937 
Act, the income limitations, and other applicable homeownership 
requirements of the 1937 Act.
    19. The PHA will administer and operate public housing rental 
units in accordance with all requirements applicable to public 
housing, including the 1937 Act, HUD's implementing regulations 
thereunder, the ACC, the Mixed-Finance ACC Amendment (if 
applicable), and all other applicable Federal statutory, Executive 
Order, and regulatory requirements as such requirements may be 
amended from time to time.
    20. The PHA will comply with:
    (a) The Fair Housing Act (42 U.S.C. 3601-19) and regulations at 
24 CFR part 100;
    (b) The prohibitions against discrimination on the basis of 
disability under section 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794) and regulations at 24 CFR part 8);
    (c) Title II of the Americans with Disabilities Act (42 U.S.C 
12101 et seq.) and its implementing regulations at 28 CFR part 36;
    (d) The Architectural Barriers Act of 1968, as amended (42 
U.S.C. 4151) and regulations at 24 CFR part 40).
    (e) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) 
and regulations at 24 CFR part 1.
    (f) Executive Order 11063, issued November 20, 1962.
    (g) The Age Discrimination Act of 1975 and the regulations at 24 
CFR part 146.
    21. The PHA will comply with regulations at 24 CFR 85.36(e) 
which require recipients of assistance (grantees and subgrantees) to 
take all necessary affirmative steps in contracting for purchase of 
goods or services to assure that small businesses, small 
disadvantaged businesses, minority firms, women's business 
enterprises, and labor surplus area firms are used when possible.
    22. The PHA will comply with the requirements of section 3 of 
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) 
(Employment Opportunities for Lower Income Persons in Connection 
with Assisted Projects) and its implementing regulation at 24 CFR 
part 135, including the reporting requirements of subpart E.
    23. The PHA will comply with Davis-Bacon or HUD-determined 
prevailing wage rate requirements to the extent required under 
section 12 of the 1937 Act.
    24. As applicable, the PHA will comply with the relocation 
assistance and real property acquisition requirements of the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970 and government-wide implementing regulations at 49 CFR part 24; 
relocation regulations at 24 CFR 968.108 or successor regulation 
(rehabilitation, temporary relocation); 24 CFR 941.207 or successor 
regulation (acquisition); section 18 of the 1937 Act as amended 
(disposition); and CPD Notice 02-08.
    25. The PHA will comply with all HOPE VI requirements for 
reporting and providing access to records.
    26. The PHA will comply with the Lead-Based Paint Poisoning 
Prevention Act (42 U.S.C. 4821, et seq.) and is subject to 24 CFR 
part 35 and 24 CFR 965.701, as they may be amended from time to 
time, and section 968.110(k) or successor regulation.
    27. The PHA will comply with the policies, guidelines, and 
requirements of OMB Circular A-87 (Cost Principles Applicable to 
Grants, Contracts, and Other Agreements with State and Local 
Governments).
    28. The PHA will comply with 24 CFR part 85 (Administrative 
Requirements for Grants and Cooperative Agreements to State, Local 
and Federally Recognized Indian Tribal Governments), as modified by 
24 CFR 941 or successor part, subpart F, relating to the procurement 
of partners in mixed finance developments.
    29. The PHA will keep records in accordance with 24 CFR 85.20 
that facilitate an effective audit to determine compliance with 
program requirements, and comply with the audit requirements of 24 
CFR 85.26.
    30. The PHA will start construction within 12 months from the 
date of HUD's approval of the Supplemental Submissions as requested 
by HUD after grant award. This time period may not exceed 18 months 
from the date the Grant Agreement is executed.
    31. The PHA will submit the development proposal for the first 
phase of construction within 12 months of grant award.

[[Page 60207]]

    32. The PHA will complete construction within 48 months from the 
date of HUD's approval of the Supplemental Submissions. This time 
period for completion may not exceed 54 months from the date the 
Grant Agreement is executed.
    33. All activities that include construction, rehabilitation, 
lead-based paint removal, and related activities will meet or exceed 
local building codes. New construction will comply with the latest 
HUD-adopted Model Energy Code issued by the Council of American 
Building Officials.

HOPE VI Demolition Grants Section

    The Demolition Grants Section of the HOPE VI NOFA contains 
information that applies to the HOPE VI Demolition Program. Unless 
otherwise noted, citations refer to the HOPE VI Demolition Grants 
Section.

I. Application Thresholds

    (A) Each required element of a HOPE VI Demolition grant application 
is a threshold requirement. Your application will not be eligible for 
funding unless each requirement listed in this NOFA is included in your 
application. HUD will give you the opportunity to submit any missing 
information up to the application deadline date, as provided in Section 
III(B) of the General Section.

II. Eligible Demolition Activities

    (A) Relocation for residents displaced as a result of the 
demolition of the project. This includes reasonable moving expenses as 
well as mobility counseling and other services to help displaced 
residents relocate. See Section V of this NOFA for relocation 
requirements.
    (B) Demolition of dwelling units in buildings, in whole or in part, 
including the abatement of environmentally hazardous materials such as 
asbestos, in accordance with section 18 of the 1937 Act as amended.
    (C) Demolition of nondwelling structures, if such demolition is 
directly related to the demolition of severely distressed dwelling 
units to be demolished with funds from the HOPE VI Demolition Grant.
    (D) Restoration of the site to a ``greenfield,'' a clean site by 
removing all demolished materials, filling in the site, and 
establishing a lawn. No additional improvements, such as constructing 
new curbs and gutters, installing playground equipment, installing 
permanent fences, or planting gardens, may be paid for with HOPE VI 
Demolition grant funds.
    (E) In the case of partial demolition of a site, minimal site 
restoration after demolition and subsequent site improvements to 
benefit the remaining portion of the project in order to provide 
project accessibility or to make the site more marketable.
    (F) Reasonable costs for administration, planning, technical 
assistance, and fees and costs that are deemed to be incremental costs 
of carrying out the demolition as specifically approved by HUD.

III. Application and Grant Limitations

    (A) Application Limitations. (1) You may submit up to ten HOPE VI 
Demolition grant applications that target a total of no more than 2,500 
severely distressed public housing units.
    (2) You may target units in only one public housing project (i.e., 
units that have the same project number) per application.
    (3) You may submit more than one application targeting units in a 
single housing project.
    (4) You may target as many or as few units per application as you 
wish, up to the overall 2,500 unit maximum.
    (B) Grant Limitations. (1) Demolition. You may request up to $6,000 
per unit for demolition and other eligible related costs. Demolition of 
streets, sidewalks, curbs, gutters, and driveways; removal of 
underground storage tanks and sewer lines; capping of utilities; 
restoration of the site; abatement of environmentally hazardous 
materials; and costs for administration, planning, technical 
assistance, fees, and permits are to be included in this figure.
    (2) Relocation. You may request up to $3,000 in relocation costs 
for each unit that is occupied as of the date you submit your HOPE VI 
Demolition grant application.
    (3) Nondwelling Structures.
    (a) You may request reasonable amounts to pay for the demolition of 
significant nondwelling structures related to the demolition of 
dwelling units. These costs must be included as part of an application 
for funding of demolition of public housing units; you may not apply 
for them separately. Examples of such structures include community 
centers, heating plants, playgrounds, and management offices. These 
facilities must be under the Annual Contributions Contract.
    (b) Such costs must be justified and verified by an engineer or 
architect licensed by his or her State licensing board who is not an 
employee of the housing authority or the city. The engineer or 
architect must provide his or her license number and State of 
registration. A Nondwelling Structures Cost Certification is included 
in the HOPE VI Demolition Grant Application.
    (C) HUD recognizes that the HOPE VI grant may not cover the total 
costs of relocation, abatement, demolition, and site restoration in all 
cases and that you may have to provide additional funding from other 
sources.
    (D) You may not use HOPE VI Demolition Grant funds to pay for any 
demolition or related activities carried out before the date of the 
letter announcing the award of the HOPE VI Demolition Grant.

IV. Statutory Requirements

    (A) Severe Distress. In accordance with Section IV of the General 
Section of this NOFA, the targeted public housing project or building 
in a project must be severely distressed.
    (1) Demonstration of Severe Distress. Units will be considered 
severely distressed if:
    (a) They are included in a HUD-approved Section 202 Mandatory 
Conversion Plan. The Section 202 Conversion Plan must be approved by 
HUD on or before the HOPE VI Demolition grant application due date;
    (b)(i) They are included in a Section 202 Mandatory Conversion Plan 
that you have submitted to HUD on or before the HOPE VI Demolition 
grant application deadline date, or
    (ii) They are, in HUD's sole determination under section 537(c) of 
QHWRA, subject to the removal requirements of 24 CFR part 971 and can 
be expected to be demolished in accordance with the time schedule 
required by Section VII(B) of this NOFA; or
    (c) They are included in a HUD-approved application for demolition 
that was developed in accordance with section 18 of the 1937 Act, as 
amended (``section 18 demolition application'').
    (B) Separability. In accordance with section 24(j)(2)(A)(v) of the 
1937 Act, if you propose to target only individual buildings of a 
project for demolition, you must:
    (1) Demonstrate to HUD's satisfaction that the severely distressed 
public housing is sufficiently separated from the remainder of the 
project of which the building is part to make demolition of the 
building feasible, and
    (2) Demonstrate that the plan for the demolished portion will 
provide defensible space for the occupants of the remaining 
building(s). Separations may include a road, berm, catch basin, or 
other recognized neighborhood distinction.
    (C) Appropriateness of Proposal. In accordance with section 
24(e)(1) of the 1937 Act, each application must demonstrate the 
appropriateness of the proposal in the context of the local housing 
market relative to other alternatives. You must briefly discuss other 
possible alternatives to your

[[Page 60208]]

proposal, and explain why your plan is more appropriate.

V. Relocation

    (A) General. You must provide suitable, accessible, decent, safe, 
and sanitary housing for each family required to relocate as a result 
of demolition activities. CPD Notice 02-08, entitled ``Guidance on the 
Application of the Uniform Relocation Assistance and Real Property 
Acquisition Act of 1970 (URA), as Amended, in HOPE VI Projects,'' 
outlines the URA requirements and describes the framework for operating 
its relocation assistance activities connected with HOPE VI 
revitalization and demolition activities. Applicants should use this 
document as a guide for formulating and implementing their HOPE VI 
Relocation Plans.
    (B) Standard Relocation Requirements. You must carry out relocation 
activities in compliance with a relocation plan that conforms to the 
following statutory and regulatory requirements, as applicable:
    (1) Relocation as a result of demolition approved by a section 18 
demolition application is subject to section 18 of the 1937 Act.
    (2) Relocation as a result of demolition approved as part of a 
Section 202 Mandatory Conversion Plan is subject to the URA.
    (C) Relocation Guidelines. (1) Each applicant requesting funds for 
relocation must first complete, as a condition for receipt of HOPE VI 
Demolition Grant funds, a HOPE VI Relocation Plan. You are encouraged 
to involve HUD-approved housing counseling agencies, including faith-
based, non-profit and/or other organizations and/or individuals in the 
community to which relocatees choose to move, in order to ease the 
transition and minimize the impact on the neighborhood. If applicable, 
you are encouraged to work with surrounding jurisdictions to assure a 
smooth transition if residents choose to move from your jurisdiction to 
the surrounding area.
    (2) No relocation costs incurred before the award of the HOPE VI 
Grant may be reimbursed.

VI. HOPE VI Demolition Grant Application Selection Process

    (A) HOPE VI Demolition Grant Funding Categories. HUD will select 
HOPE VI Demolition grant applications on a first-come, first-served 
basis, by an application's Priority Group and Ordinal. HOPE VI 
Demolition grant applications are not rated.
    (1) Eligible Units. Severely distressed public housing units to be 
demolished with HOPE VI Demolition grant funds must meet one of the 
criteria in the description of priority groups below. Units identified 
for demolition in a previously awarded HOPE VI Revitalization grant are 
not eligible to apply for HOPE VI Demolition funding under this NOFA.
    (2) Priority Groups. You must identify each HOPE VI Demolition 
grant application by its appropriate Priority Group, as described 
below. Each application must target units of a single Priority Group; 
e.g., do not include Priority Group 1 units in the same application as 
Priority Group 2 units.
    (a) Priority Group 1. Priority Group 1 applications target units 
included in an approved Section 202 Mandatory Conversion Plan. The 
Section 202 Conversion Plan must be approved by HUD on or before the 
HOPE VI Demolition grant application due date.
    (b) Priority Group 2.
    (i) Priority Group 2 applications:
    a. Target units included in a Section 202 Mandatory Conversion Plan 
that you have submitted to HUD on or before the HOPE VI Demolition 
grant application deadline date, or
    b. Target units that, in HUD's sole determination under section 
537(c) of QHWRA, are subject to the removal requirements of 24 CFR part 
971 and can be expected to be demolished in accordance with the time 
schedule required by Section VII(B) of this NOFA.
    (ii) If you submit a HOPE VI Demolition grant application for units 
that are targeted in a Section 202 Mandatory Conversion Plan that was 
submitted under 24 CFR part 971 but not yet approved (Priority Group 
2), and HUD subsequently approves the Conversion Plan before the HOPE 
VI Demolition grant application deadline date, you may revise your 
application and it will be reclassified as Priority Group 1. HUD will 
change the original Ordinal to the Ordinal corresponding to the date 
that the revision was received.
    (iii) If you submit a Section 202 Mandatory Conversion Plan but HUD 
determines that the targeted project does not qualify for conversion 
under 24 CFR part 971, your HOPE VI Demolition grant application will 
not be eligible for funding. If you intend to submit a Priority 1 or 2 
application, discuss the project with your Field Office to ensure that 
it qualifies under the standards of 24 CFR part 971.
    (c) Priority Group 3. Priority Group 3 applications target units 
that are included in a HUD-approved application for demolition that was 
developed in accordance with section 18 of the 1937 Act, as amended 
(``section 18 demolition application'').
    (i) HUD must approve your section 18 demolition application on or 
before the HOPE VI Demolition grant application deadline. You are 
advised that in order to allow for sufficient time for a new section 18 
demolition application to be processed, you should submit your section 
18 demolition application to HUD's Special Applications Center (SAC) no 
later than November 10, 2003. If your section 18 demolition application 
does not meet the statutory requirements of section 18, including the 
requirement for HUD Field Office approval of the Interim or PHA Plan as 
required by 24 CFR part 903, HUD will not approve the section 18 
demolition application and your HOPE VI Demolition grant application 
will not be eligible for funding.
    (ii) If you have submitted a section 18 demolition application to 
the HUD Special Applications Center but it has not yet been approved by 
HUD when you submit your HOPE VI Demolition grant application, your 
HOPE VI application will not be considered complete and you will not 
receive a final Ordinal unless and until your section 18 demolition 
application is approved on or before the HOPE VI Demolition Grant 
Application deadline.
    (iii) If your section 18 demolition application is approved by HUD 
on February 17, 2004, or February 18, 2004, only, you are not required 
to submit your approval letter to HUD, and HUD will deem the approval 
letter to have been submitted in the application. In such a case, if 
your application is otherwise complete, your Ordinal will be the date 
that HUD approves your section 18 demolition application.
    (iv) If HUD has previously approved your section 18 demolition 
application but HUD later rescinded the approval, your section 18 
demolition application will not be considered approved by HUD, and your 
HOPE VI Demolition grant application will not be eligible for funding.
    (B) Ordinals. Upon receipt, HUD will assign each HOPE VI Demolition 
grant application an Ordinal (i.e., ranking number) that reflects the 
date HUD Headquarters received the application. Ordinals correspond to 
business days, starting with the date HUD receives the first Demolition 
grant application and ending on the HOPE VI Demolition grant 
application deadline date. HUD will consider all applications received 
on the same date as received at the same time on that date, and those 
applications will all be assigned the same Ordinal.

[[Page 60209]]

    (C) Demolition Screening. (1) HUD will screen the application to 
ensure that it meets each HOPE VI threshold criterion listed in this 
NOFA.
    (2) If HUD determines that an application is not eligible (e.g., 
the applicant is not a PHA, the units have already been demolished, 
etc.), HUD will not consider the application further and will notify 
the applicant that the application has been rejected.
    (3) If HUD determines that an applicant is eligible but the 
application is incomplete, within approximately five business days of 
receipt of the application, HUD will contact the applicant in writing 
by fax (followed with a hard copy by mail) to request the missing 
information. Applicants whose applications HUD receives on the same 
date, and who have missing items, will be notified by HUD of their 
missing items on the same day to ensure that all applicants have the 
same number of days to provide the missing information.


    Please Note: This provision means that the nearer to the 
deadline date you submit your application, the less time you will 
have to correct any deficiencies, and if HUD receives your 
application on the deadline date and there is a deficiency, that 
application will not be eligible for funding. You are advised to 
submit your application as soon as possible, in the event that HUD 
identifies a deficiency that you need to correct.


    (4) If HUD determines that the information you submit in response 
to a notification of deficiency is correct and completes the 
application, HUD will add to the application's Ordinal the number of 
business days between notification of the deficiency and curing of the 
deficiency.
    (5) If HUD determines that the information submitted does not make 
the application complete, HUD will notify you of the remaining 
deficiency. You will have the opportunity to submit information in 
response to notifications of deficiency until the HOPE VI Demolition 
grant application due date.
    (6) If you do not submit the requested information by the HOPE VI 
Demolition grant deadline date, your application will be ineligible for 
funding.
    (7) If a deficiency is cured on the same day the deficiency letter 
is sent, the application will add one Ordinal.
    (D) Funding. HUD will award HOPE VI Demolition grants in the 
following order, based on fund availability.
    (1) HUD will fund Priority Group 1 applications by Ordinal.
    (2) If funds remain after HUD has funded all eligible Priority 
Group 1 applications, HUD will fund Priority Group 2 applications by 
Ordinal.
    (3) If funds remain after HUD has funded all eligible Priority 
Group 2 applications, HUD will fund Priority Group 3 applications by 
Ordinal.
    (4) At any stage, if there is more than one application with next 
Ordinal to be funded and there are insufficient funds to fund all of 
them, HUD will conduct a lottery among those applications to determine 
which application(s) will be funded.
    (5) HUD reserves the right to partially fund the next eligible 
application if insufficient funds remain to fund the entire amount 
requested, and HUD determines that the funds available are adequate to 
carry out some significant demolition activities.
    (6) If funds remain after all eligible HOPE VI Demolition grant 
applications have been funded or if the amount remaining is inadequate 
to feasibly fund the next eligible Demolition grant application, HUD 
reserves the right to:
    (a) Reallocate unused funds to fund or supplement the next eligible 
HOPE VI Revitalization application(s), in rank order, or
    (b) Carry over unused funds to the next fiscal year.
    (E) Notification of Funding Decisions. Because the HOPE VI 
Demolition grants are awarded on a first-come, first-served basis, HUD 
reserves the right either to award funds to Priority Group 1 
applications as soon as they are determined to be eligible for funding, 
or announce all awards after the HOPE VI Demolition grant application 
deadline date has passed. HUD will notify ineligible applicants of 
their ineligibility immediately after that determination has been made. 
HUD will provide written notification to all HOPE VI applicants, 
whether or not they have been selected for funding.

VII. Post Award Requirements

    (A) Demolition Grant Agreement. When you are selected to receive a 
Demolition grant, HUD will send you a HOPE VI Demolition Grant 
Agreement, which constitutes the contract between you and HUD to carry 
out and fund public housing demolition activities. Both you and HUD 
will sign the cover sheet of the Grant Agreement. You must sign the 
Grant Agreement within 90 days of receiving it. Failure to sign the 
Grant Agreement within 90 days may cause the Department to withdraw its 
award of funds. It is effective on the date of HUD's signature.
    (B) Timeliness of Demolition. Grantees must proceed within a 
reasonable timeframe, as indicated below. HUD will take into 
consideration delays caused by factors beyond your control when 
enforcing this requirement or as otherwise approved by HUD to 
accommodate reasonable relocation and demolition schedules.
    (1) You must begin the proposed demolition within six months of the 
date of Grant Agreement execution.
    (2) You must complete the proposed demolition within two years of 
the date of Grant Agreement execution.
    (3) In accordance with section 24(i) of the 1937 Act, if you do not 
proceed within a reasonable timeframe, in the determination of HUD, HUD 
shall withdraw any grant amounts that you have not obligated. HUD shall 
redistribute any withdrawn amounts to one or more other applicants 
eligible for HOPE VI assistance or to one or more other entities 
capable of proceeding expeditiously in the same locality in carrying 
out the activities of the original Grantee.
BILLING CODE 4210-33-P

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[FR Doc. 03-26476 Filed 10-16-03; 12:46 pm]
BILLING CODE 4210-33-C