[Federal Register Volume 69, Number 79 (Friday, April 23, 2004)]
[Notices]
[Pages 22320-22376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9276]



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Part V





Department of Housing and Urban Development





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Notice of Funding Availability for Fiscal Year (FY) 2004 Rural Housing 
and Economic Development Program; Notice

  Federal Register / Vol. 69, No. 79 / Friday, April 23, 2004 / 
Notices  

[[Page 22320]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4932-N-01]


Notice of Funding Availability for Fiscal Year (FY) 2004 Rural 
Housing and Economic Development Program

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Notice of funding availability (NOFA).

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Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Community Planning and Development, Office of Rural 
Housing and Economic Development.
    B. Funding Opportunity Title: Rural Housing and Economic 
Development (RHED) program.
    C. Announcement Type: Initial Announcement.
    D. Funding Opportunity Number: The Federal Register number is FR-
4932-N-01. The OMB approval number is 2506-0169.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): Rural 
Housing and Economic Development. The CDFA number is 14.250.
    F. DATES: Application Deadline: Applications are due May 24, 2004. 
Please see Section IV of this NOFA for application submission, 
delivery, and timely receipt requirements.
    G. Optional, Additional Overview Content Information:
    1. The purpose of the Rural Housing and Economic Development 
program is to build capacity at the state and local level for rural 
housing and economic development and to support innovative housing and 
economic development activities in rural areas. The funds made 
available under this program will be awarded competitively through a 
selection process conducted by HUD in accordance with the HUD Reform 
Act.

I. Funding Opportunity Description

A. Background

    There has been a growing national recognition of the need to 
enhance the capacity of local rural nonprofit organizations, community 
development corporations, federally recognized Indian tribes, state 
housing finance agencies (HFAs) and state economic development and 
community development agencies to expand the supply of affordable 
housing and to engage in economic development activities in rural 
areas. A number of resources are available from the federal government 
to address these problems, including programs of the United States 
Department of Agriculture (USDA), the Economic Development 
Administration (EDA), the Appalachian Regional Commission (ARC), the 
Department of Interior (for Indian tribes), and HUD. The Rural Housing 
and Economic Development program was developed to supplement these 
resources and to focus specifically on capacity building and promoting 
innovative approaches to housing and economic development in rural 
areas. In administering these funds, HUD encourages you to coordinate 
your activities with those supported by any of the agencies listed 
above.

B. Definitions

    1. Appalachia's Distressed Counties means those counties in 
Appalachia that the Appalachian Regional Commission (ARC) has 
determined to have unemployment and poverty rates that are 150 percent 
of the respective U.S. rates and a per capita income that is less than 
67 percent of the U.S. per capita income, and have counties with 200 
percent of the U.S. poverty rate and one other indicator, such as the 
percentage of overcrowded housing. Refer to http://www.arc.gov for a 
list of ARC distressed counties and more information.
    2. Colonia means any identifiable, rural community that:
    a. Is located in the state of Arizona, California, New Mexico, or 
Texas;
    b. Is within 150 miles of the border between the U.S. and Mexico; 
and
    c. Is determined to be a Colonia on the basis of objective need 
criteria, including a lack of potable water supply, lack of adequate 
sewage systems, and lack of decent, safe, sanitary, and accessible 
housing.
    3. Farm Worker means a farm employee of an owner, tenant, labor 
contractor, or other operator raising or harvesting agricultural or 
aquacultural commodities; or a worker in the employment of a farm 
operator, handling, planting, drying, packing, grading, storing, 
delivering to storage or market, or carrying to market agricultural or 
aquacultural commodities produced by the operator. Seasonal farm 
workers are those farm employees who typically do not have a constant 
year-round salary.
    4. Firm Commitment means an agreement by which an applicant's 
partner agrees to perform an activity specified in the application, and 
demonstrates the financial capacity to deliver the resources necessary 
to carry out the activity, and commits the resources to the activity, 
either in cash or through in-kind contributions. It is irrevocable, 
subject only to approval and receipt of a FY2004 Rural Housing and 
Economic Development grant. Each letter of commitment must include the 
organization's name and applicant's name, reference the Rural Housing 
and Economic Development program, and describe the proposed total level 
of commitment and responsibilities, expressed in dollar value for cash 
or in-kind contributions, as they relate to the proposed program. The 
commitment must be written on the letterhead of the participating 
organization, must be signed by an official of the organization legally 
able to make commitments on behalf of the organization, and must be 
dated no earlier than the date of publication of this NOFA. In 
documenting a firm commitment, the applicant's partner must:
    a. Specify the authority by which the commitment is made, the 
amount of the commitment, the proposed use of funds, and the 
relationship of the commitment to the proposed investment. If the 
committed activity is to be self-financed, the applicant's partner must 
demonstrate its financial capability through a corporate or personal 
financial statement or other appropriate means. If any portion of the 
activity is to be financed through a lending institution, the 
participant must provide evidence of the institution's commitment to 
fund the loan;
    b. Affirm that the firm commitment is contingent only upon the 
receipt of FY2004 Rural Housing and Economic Development funds and 
state a willingness on the part of the signatory to sign a legally 
binding agreement (conditioned upon HUD's environmental review and 
approval of a property where applicable) upon award of the grant.
    5. Federally Recognized Indian tribe means any tribal entity 
eligible to apply for funding and services from the Bureau of Indian 
Affairs by virtue of its status as an Indian tribe. The list of 
federally recognized Indian tribes can be found in the notice published 
by the Department of the Interior on December 5, 2003 (68 FR 68180) and 
is also available from HUD.
    6. Innovative Housing Activities means projects, techniques, 
methods, combinations of assistance, construction materials, energy 
efficiency improvements, or financing institutions or sources new to 
the eligible area or to its population. The innovative activities can 
also build upon and enhance a model that already exists.
    7. Local Rural Nonprofit Organization or Community Development 
Corporation means either of the following:

[[Page 22321]]

    a. Any private entity with tax-exempt status recognized by the 
Internal Revenue Service (IRS) which serves the eligible rural area 
identified in the application (including a local affiliate of a 
national organization that provides technical and capacity building 
assistance in rural areas); or
    b. Any public nonprofit entity such as a Council of Governments 
that will serve specific local nonprofit organizations in the eligible 
area.
    8. Lower Mississippi Delta Region means the eight-state, 240-
county/parish region defined by Congress in the Lower Mississippi Delta 
Development Act, Public Law 100-460. Refer to http://www.dra.gov for 
more information.
    9. Eligible Rural Area means one of the following:
    a. A non-urban place having fewer than 2,500 inhabitants (within or 
outside of metropolitan areas).
    b. A county with an urban population of 20,000 inhabitants or less.
    c. Territory, including its persons and housing units, in the rural 
portions of ``extended cities.'' The U.S. Census Bureau identifies the 
rural portions of extended cities.
    d. Open country that is not part of or associated with an urban 
area. The USDA describes ``open country'' as a site separated by open 
space from any adjacent densely populated urban area. Open space 
includes undeveloped land, agricultural land, or sparsely settled 
areas, but does not include physical barriers (such as rivers and 
canals), public parks, commercial and industrial developments, small 
areas reserved for recreational purposes, or open space set aside for 
future development.
    e. Any place with a population not in excess of 20,000 and not 
located in a Metropolitan Statistical Area.
    10. State Community and/or Economic Development Agency means any 
state agency that has promotion of economic development statewide or in 
a local community as its primary purpose.
    11. State Housing Finance Agency means any state agency created to 
assist local communities and housing providers with financing 
assistance for development of housing in rural areas, particularly for 
low- and moderate-income people.

II. Award Information

A. Amount Allocated

    1. Available Funds. Approximately $25 million in Fiscal Year (FY) 
2004 funding (plus any additional funds available through recapture) 
are being made available through this NOFA.
    2. Funding Categories and Maximum Award Amounts. HUD will award up 
to approximately $25 million on a competitive basis in the following, 
funding categories. Applicants must apply for funds in only one of the 
two categories: Category 1, Capacity Building, or Category 2, Support 
for Innovative Housing and Economic Development Activities.
    a. Category 1: Capacity Building. HUD will award up to 
approximately $10 million to applicants for capacity building 
activities. This amount will go directly to local rural nonprofit 
organizations or community development corporations or federally 
recognized Indian tribes to increase an organization's capacity to 
support innovative housing and economic development activities. The 
maximum amount awarded to a successful applicant in this category will 
be $150,000.
    b. Category 2: Support for Innovative Housing and Economic 
Development Activities. HUD will award up to approximately $15 million 
to federally recognized Indian tribes, state housing finance agencies 
(HFAs), state community and/or economic development agencies, local 
rural nonprofit organizations or community development corporations to 
support innovative housing and economic development activities in rural 
areas throughout the nation. The maximum amount awarded to a successful 
applicant in this category will be $400,000.

B. Grant Amount.

    In the event, you, the applicant, are awarded a grant that has been 
reduced (e.g., the application contained some activities that were 
ineligible or budget information did not support the request), you will 
be required to modify your project plans and application to conform to 
the terms of HUD's approval before execution of the grant agreement. 
HUD reserves the right to reduce or de-obligate the award if suitable 
modifications to the proposed project are not submitted by the awardee 
within 90 days of the request. Any modifications must be within the 
scope of the original application. HUD reserves the right to not make 
awards under this NOFA.

C. Grant Period.

    Recipients will have 36 months from the date of the executed grant 
agreement to complete all project activities.

D. Notification of Approval or Disapproval.

    HUD will notify you whether or not you have been selected for an 
award. If you are selected, HUD's notice to you concerning the amount 
of the grant award (based on the approved application) will constitute 
HUD's conditional approval, subject to negotiation and execution of a 
grant agreement by HUD.

III. Eligibility Information

A. Eligible Applicants

    Eligible applicants for the Rural Housing and Economic Development 
program are local rural nonprofit organizations and community 
development corporations, federally recognized Indian tribes, state 
housing finance agencies and state community and/or economic 
development agencies. Eligible applicants for each of the funding 
categories are as follows:
    1. For Capacity Building Funding. If you are a local rural 
nonprofit, including grassroots, faith-based and other community-based 
grassroots organization, community development corporation, or 
federally recognized Indian tribe, you are eligible for capacity 
building funding to carry out innovative housing and economic 
development activities that should lead to an applicant becoming self-
sustaining in the future.
    2. For Support for Innovative Housing and Economic Development 
Activities Funding. If you are a local rural nonprofit organizations, 
including grassroots, faith-based and other community-based grassroots 
organization, community development corporation, federally recognized 
Indian tribe, state HFA, or state economic development or community 
development agency, you may apply for funding to support innovative 
housing and economic development activities in rural areas.

B. Cost Sharing or Matching

    There is no match required under the Rural Housing and Economic 
Development program. Applicants that submit evidence of leveraging 
dollars under Rating Factor 4 ``Leveraging Resources'' will receive 
points according to the scale under that factor.

C. Other

    1. Eligible Activities. The following are examples of eligible 
activities under the Rural Housing and Economic Development program. 
These examples are illustrative and are not meant to limit the 
activities that you may propose in your application:
    a. For Capacity Building Funding. Capacity building for innovative 
Rural Housing and Economic Development involves the enhancement of 
existing organizations to carry out new functions

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or to perform existing functions more effectively. Permissible 
activities include, but are not limited to, the following:
    (1) Enhancement of existing functions or creation of new functions 
to provide affordable housing and economic development in rural areas;
    (2) Acquisition of additional space and support facilities;
    (3) Salaries for additional staff needed to conduct the work, 
including financial management specialists, and economic development 
specialists;
    (4) Training of staff in the areas of financial management, 
economic development financing, housing accessibility and visitability 
standards, fair housing issues, and complaint filing;
    (5) Development of business plans to help the organization become 
self-sustaining;
    (6) Development of Management Information Systems (MISs) and 
software to enable better and more accurate reporting of information to 
HUD and to other entities;
    (7) Development of feasibility studies and market studies;
    (8) Training in energy efficiency in construction for housing and 
commercial projects;
    (9) Housing counseling services, including fair housing counseling, 
information on budgeting, and information on credit and available 
federal programs;
    (10) Conducting conferences or meetings with other federal or state 
agencies to inform residents of programs, rights, and responsibilities 
associated with homebuying opportunities; and;
    (11) Arranging for technical assistance to conduct needs 
assessments, conduct asset inventories, and develop strategic plans.
    b. For Support of Innovative Housing and Economic Development 
Activities. This category is intended to support other costs for 
innovative housing and economic development activities. Permissible 
activities may include, but are not limited to the following:
    (1) Cost of using new or innovative construction, energy 
efficiency, or other techniques that will result in the design or 
construction of innovative housing and economic development projects;
    (2) Preparation of plans or of architectural or engineering 
drawings;
    (3) Preparation of legal documents, government paperwork, and 
applications necessary for construction of housing and economic 
development activities to occur in the jurisdiction;
    (4) Acquisition of land and buildings;
    (5) Demolition of property to permit construction or rehabilitation 
activities to occur;
    (6) Development of infrastructure to support the housing or 
economic development activities;
    (7) Purchase of construction materials;
    (8) Job training to support the activities of the organization;
    (9) Homeownership counseling, including fair housing counseling, 
credit counseling, budgeting, access to credit, and other federal 
assistance available;
    (10) Conducting conferences or meetings with other federal or state 
agencies to inform residents of programs, rights, and responsibilities 
associated with homebuying opportunities;
    (11) Development of feasibility studies and market studies;
    (12) Development of Management Information Systems (MISs) and 
software to enable better and more accurate reporting of information to 
HUD and to other entities;
    (13) Establishing Community Development Financial Institutions 
(CDFIs), lines of credit, revolving loan funds, microenterprises, and 
small business incubators; and
    (14) Provision of direct financial assistance to homeowners/
businesses/developers, etc. This can be in the form of default 
reserves, pooling/securitization mechanisms, loans, grants, funding 
existing individual development accounts or similar activities.
    2. Statutory and Regulatory Requirements. To be eligible for 
funding under HUD NOFAs issued during FY2004, you, the applicant, must 
meet all statutory and regulatory requirements applicable to this NOFA. 
If you need copies of the program regulations, they are available from 
the NOFA Information Center or through the http://www.grants.gov Web 
site. HUD may also eliminate ineligible activities from funding 
consideration and reduce funding amounts accordingly.
    3. General HUD Threshold Requirements.
    a. Ineligible Applicants. HUD will not consider an application from 
an ineligible applicant.
    b. Dun and Bradstreet Data Universal Numbering System (DUNS) Number 
Requirement. Beginning in FY2004, any applicant seeking funding 
directly from HUD or other federal agencies must obtain a DUNS number 
and include it in its SF 424 Application for Federal Assistance 
submission. Failure to provide a DUNS number will prevent you from 
obtaining an award. Individuals who would personally apply for federal 
financial assistance, apart from any governmental, business, or 
nonprofit organization they may represent, are excluded from the 
requirement to obtain a DUNS number. This is pursuant to Office of 
Management and Budget (OMB) Policy issued in the Federal Register on 
June 27, 2003 (68 FR 38402). HUD's regulation implementing the DUNS 
Number requirement for its programs was issued in the Federal Register 
on March 26, 2004 (69 FR 15671). A copy of the OMB Federal Register 
Notice and HUD's regulation implementing the DUNS number can be found 
on HUD's Web site at http://www.hud.gov/offices/adm/grants/duns.cfm. 
Failure to provide a DUNS number with the application submission will 
be treated as a technical deficiency of the application. If the DUNS 
number is not provided within the cure period (see section V.B.1.g., 
Corrections to Deficient Applications) the application will not be 
funded. The Grants.gov Web page at http://www.grants.gov/GetStarted 
provides step-by-step instructions for obtaining a DUNS number, as well 
as procedures for registering in the Central Contractor Registry and e-
Authentication. Registration in the Central Contractor Registry and 
receiving credentials from the Grants.gov E-Authentication provider are 
not necessary for submitting a paper copy application to HUD; only the 
DUNS number is required. Central contractor registration and e-
Authentication is required for submittal of electronic grant 
applications through the Grants.gov portal. For FY2004, HUD is 
maintaining its policy of accepting paper copies of the application. 
However, it is HUD's intent to move to electronic submission of all 
applications in FY2005.
    c. Compliance with Fair Housing and Civil Rights Laws.
    (1) Applicants must comply with all applicable fair housing and 
civil rights requirements in 24 CFR 5.105(a).
    (2) If you, the applicant:
    (a) Have been charged with an on-going systemic violation of the 
Fair Housing Act; or
    (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 findings identifying ongoing systemic 
noncompliance under Title VI of the Civil Rights Act of 1964, Section 
504 of the Rehabilitation Act of 1973, or Section 109 of the Housing 
and Community Development Act of 1974; and

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    (d) The charge, lawsuit or letter of findings referenced in subpart 
(a), (b) or (c) above has not been resolved to HUD's satisfaction 
before the application deadline, then you are ineligible and HUD will 
not rate or rank your application. HUD will determine if actions to 
resolve the charge, lawsuit, or letter of findings taken prior to the 
application deadline are sufficient to resolve the matter.
    (3) Examples of actions that normally would be considered 
sufficient to resolve the matter include, but are not limited to:
    (i) A voluntary compliance agreement signed by all parties in 
response to a letter of findings;
    (ii) A HUD-approved conciliation agreement signed by all parties;
    (iii) A consent order or consent decree; or
    (iv) An issuance of a judicial ruling or a HUD Administrative Law 
Judge's decision.
    d. Conducting Business In Accordance with Core Values and Ethical 
Standards. Entities subject to 24 CFR parts 84 and 85 (most nonprofit 
organizations and state, local, and tribal governments or government 
agencies or instrumentalities that receive federal awards of financial 
assistance) are required to develop and maintain a written code of 
conduct (see 24 CFR 84.42 and 85.36(b)(3)). Consistent with regulations 
governing specific programs, your code of conduct must prohibit real 
and apparent conflicts of interest that may arise among officers, 
employees, or agents; prohibit the solicitation and acceptance of gifts 
or gratuities by your officers, employees, and agents for their 
personal benefit in excess of minimal value; and, outline 
administrative and disciplinary actions available to remedy violations 
of such standards. If you are 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.
    e. Delinquent Federal Debts. Consistent with the purpose and intent 
of 31 U.S.C. 3720B and 28 U.S.C. 3201(e), no award of federal funds 
shall be made to an applicant that has an outstanding delinquent 
federal debt unless: (1) The delinquent account is paid in full; (2) a 
negotiated repayment schedule is established and the repayment schedule 
is not delinquent; or (3) other arrangements satisfactory to HUD are 
made prior to the deadline submission date.
    f. Pre-Award Accounting System Surveys. HUD may arrange for a pre-
award survey of the applicant's financial management system in cases 
where the selected applicant has no prior federal support, the program 
office has reason to question whether the applicant's financial 
management system meets federal financial management standards, or the 
applicant is considered a high risk based upon past performance or 
financial management findings. HUD will not disburse funds to any 
applicant that does not have a financial management system that meets 
federal standards. See Section VI.B for additional information on this 
topic.
    g. Name Check Review. Recommended applicants are subject to a name 
check review process. Name checks are intended to reveal matters that 
significantly reflect on the applicant's management and financial 
integrity or if any key individuals have been convicted or are 
presently facing criminal charges. If the name check reveals 
significant adverse findings that reflect on the business integrity or 
responsibility of the applicant or any key individual, HUD reserves the 
right to (1) deny funding or consider suspension/termination of an 
award immediately for cause; (2) require the removal of any key 
individual from association with management or implementation of the 
award; and (3) make appropriate provisions or revisions with respect to 
the method of payment or financial reporting requirements.
    h. False Statements. A false statement in an application is grounds 
for denial or termination of an award and grounds for possible 
punishment as provided in 18 U.S.C. 1001.
    i. Prohibition Against Lobbying Activities. You, the applicant, are 
subject to the provisions of Section 319 of Public Law 101-121 
(approved October 23, 1989) (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. In addition, you must disclose, using 
Standard Form-LLL ``Disclosure of Lobbying Activities,'' any funds, 
other than federally appropriated funds, that will be or have been used 
to influence federal employees, Members of Congress, and congressional 
staff regarding specific grants or contracts. Federally recognized 
Indian tribes and tribally designated housing entities (TDHEs) 
established by federally recognized Indian tribes as a result of the 
exercise of the tribe's sovereign power are excluded from coverage of 
the Byrd Amendment.
    j. Debarment and Suspension. In accordance with 24 CFR part 24, no 
award of federal funds may be made to applicants that are presently 
debarred or suspended, or proposed to be debarred or suspended, from 
doing business with the federal government. This requirement applies to 
all lower tier covered transactions and to all solicitations for lower 
tier covered transactions. The prohibition includes the following:
    (1) Having principals who, within the previous three years, have 
been convicted of or had a civil judgment rendered against them for 
commission of fraud or a criminal offense in connection with obtaining, 
attempting to obtain, or performing a public (federal, state or local) 
transaction, violation of federal or state anti-trust statutes or 
commission of embezzlement, theft, forgery, bribery, falsification or 
destruction of records, making false statements, or receiving stolen 
property; and
    (2) Charges or indictments by a governmental entity (federal, state 
or local) for commission of any of the above violations.
    4. Additional Non-discrimination and Other Requirements. You, the 
applicant, and your subrecipients must comply with:
    a. The Americans with Disabilities Act of 1990 (42 U.S.C. 1201 et 
seq.), the Age Discrimination Act of 1974 (42 U.S.C. 6101 et seq.), and 
Title IX of the Education Amendments Act of 1972 (20 U.S.C. 1681 et 
seq.).
    b. Affirmatively Furthering Fair Housing. Under Section 808(e)(5) 
of the Fair Housing Act, HUD is obliged to affirmatively further fair 
housing. HUD requires the same of its funding recipients. If you are a 
successful applicant, you will have a duty to affirmatively further 
fair housing opportunities for classes protected under the Fair Housing 
Act. Protected classes include race, color, national origin, religion, 
sex, disability, and familial status. Your application must include 
specific steps to:
    (1) Overcome the effects of impediments to fair housing choice that 
were identified in the jurisdiction's Analysis of Impediments (AI) to 
Fair Housing Choice;
    (2) Remedy discrimination in housing; or
    (3) Promote fair housing rights and fair housing choice.

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    Further, you, the applicant, have a duty to carry out the specific 
activities provided in your responses to the rating factors in this 
NOFA that address affirmatively furthering fair housing.
    c. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). Recipients of assistance under this NOFA must comply with 
Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. 
1701u (Economic Opportunities for Low- and Very Low-Income Persons in 
Connection with Assisted Projects) and the HUD regulations at 24 CFR 
part 135, including the reporting requirements at subpart E. Section 3 
requires recipients to ensure that, to the greatest extent feasible, 
training, employment, and other economic opportunities will be directed 
to low- and very-low income persons, particularly those who are 
recipients of government assistance for housing, and business concerns 
that provide economic opportunities to low- and very low-income 
persons.
    d. Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Woman-Owned Businesses. HUD is committed 
to ensuring that small businesses, small disadvantaged businesses, and 
woman-owned businesses participate fully in HUD's direct contracting 
and in contracting opportunities generated by HUD financial assistance. 
Too often, these businesses still experience difficulty accessing 
information and successfully bidding on federal contracts. State, 
local, and tribal governments are required by 24 CFR 85.36(e) and 
nonprofit recipients of assistance (grantees and subgrantees) by 24 CFR 
84.44(b) to take all necessary affirmative steps in contracting for the 
purchase of goods or services to assure that minority firms, women's 
business enterprises, and labor surplus area firms are used whenever 
possible, or as otherwise specified in this NOFA.
    e. Relocation. The relocation requirements of the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970, as amended, and the implementing government-wide regulation at 49 
CFR part 24 cover any person who moves permanently from real property 
or moves personal property from real property directly because of 
acquisition, rehabilitation, or demolition for an activity undertaken 
with HUD assistance. Some HUD program regulations also cover persons 
who are temporarily relocated. For example, 24 CFR 
570.606(b)(2)(i)(D)(1)-(3) provides guidance on temporary relocation 
for the CDBG program. You, the applicant should review the regulations 
for the Rural Housing and Economic Development program when planning 
your project.
    f. Executive Order 13166, Improving Access to Services for Persons 
With Limited English Proficiency (LEP). Executive Order 13166 seeks to 
improve access to federally assisted services, programs and benefits 
for individuals with limited English proficiency. Applicants obtaining 
an award from HUD must seek to provide access to program benefits and 
information to LEP individuals through translation and interpretive 
services in accordance with LEP Guidance published on December 19, 2003 
(68 FR 70967). For assistance and information regarding your LEP 
obligation, go to www.LEP.gov.
    g. Executive Order 13279, Equal Protection of the Laws for Faith-
Based and Community Organizations. HUD is committed to full 
implementation of Executive Order 13279. The Executive Order 
established fundamental principles and policymaking criteria to guide 
federal agencies in formulating and developing policies that have 
implications for faith-based and community organizations to ensure the 
equal protection for these organizations in social services programs 
receiving federal financial assistance. Consistent with this order, HUD 
has undertaken a review of all policies and regulations that have 
implications for faith-based and community organizations, and has 
established a policy priority to provide full and equal access to 
grassroots faith-based and other community-based organizations in HUD 
program implementation. Copies of the regulatory changes can be found 
at: http://www.hud.gov/grants/index.cfm.
    h. Accessible Technology. The Rehabilitation Act Amendments of 1998 
(the Act) applies to electronic information technology (EIT) used by 
HUD for transmitting, receiving, using, or storing information to carry 
out the responsibilities of any federal funds awarded. The Act's 
coverage includes, but is not limited to, computers (hardware, 
software, word-processing, email, and web pages), facsimile machines, 
copiers, and telephones. Consistent with the principles of the Act, HUD 
requires the same of its funding recipients. If you are a successful 
applicant, you will be required when developing, procuring, 
maintaining, or using EIT, to ensure that the EIT allows employees with 
disabilities and members of the public with disabilities to have access 
to and use of information and data that is comparable to the access and 
use of information and data by employees and members of the public who 
do not have disabilities. If these standards impose a hardship on a 
funding recipient, the recipient may provide an alternative means to 
allow the individual to have access to and use the information and 
data. However, no recipient will be required to provide information 
services to a person with disabilities at any location other than a 
location at which the information services is generally provided.
    i. Procurement of Recovered Materials. State agencies and agencies 
of a political subdivision of a state that are using assistance under a 
NOFA for procurement, and any person contracting with such an agency 
with respect to work performed under an assisted contract, must comply 
with the requirements of Section 6002 of the Solid Waste Disposal Act, 
as amended by the Resource Conservation and Recovery Act.
    In accordance with Section 6002, these agencies and persons must 
procure items designated in guidelines of the Environmental Protection 
Agency (EPA) 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.
    j. Participation in HUD-Sponsored Program Evaluation. As a 
condition of the receipt of financial assistance under this NOFA, all 
successful applicants will be required to cooperate with all HUD staff 
or contractors performing HUD-funded research or evaluation studies.
    k. Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects. Compliance with 
HUD regulations at 24 CFR 5.108 that implement Executive Order 13202 is 
a condition of receipt of assistance under this NOFA.
    l. Salary Limitation for Consultants. FY2004 funds may not be used 
to pay or to provide reimbursement for payment of the salary of a 
consultant, whether retained by the federal government or the grantee, 
at more than the daily equivalent of the rate paid for level IV of the 
Executive Schedule, unless specifically authorized by law.

[[Page 22325]]

    m. OMB Circulars and Government-wide Regulations Applicable to 
Financial Assistance Programs. Depending on applicant type, specific 
OMB circulars listed below may apply. The policies, guidance, and 
requirements of OMB Circular A-87 (Cost Principles Applicable to 
Grants, Contracts and Other Agreements with State and Local 
Governments), OMB Circular A-21 (Cost Principles for Education 
Institutions), OMB Circular A-122 (Cost Principles for Non-Profit 
Organizations), OMB Circular A-133 (Audits of States, Local 
Governments, and Non-Profit Organizations), and the regulations at 24 
CFR part 84 (Grants and Agreements with Institutions of Higher 
Education, Hospitals, and other Non-Profit Organizations), and 24 CFR 
part 85 (Administrative Requirements for Grants and Cooperative 
Agreements to state, local, and federally recognized Indian tribal 
governments), may apply to the award, acceptance, and use of assistance 
under this NOFA, and to the remedies for non-compliance, except when 
inconsistent with the provisions of the Consolidated Appropriations 
Act, 2004 (Pub. L. 108-199, approved January 23, 2004), other federal 
statutes or regulations, or the provisions of this NOFA. Copies of the 
OMB Circulars may be obtained from EOP Publications, Room 2200, New 
Executive Office Building, Washington, DC 20503, telephone (202) 395-
3080 (this is not a toll-free number), toll-free from 800-877 8339 (TTY 
Federal Information Relay Service); or from the Web site, http://www.whitehouse.gov/omb/circulars/index.html.
    n. Environmental Requirements. If you become a recipient under this 
NOFA to assist physical development activities or property acquisition, 
you are generally prohibited from acquiring, rehabilitating, 
converting, demolishing, leasing, repairing or constructing property, 
or committing or expending HUD or non-HUD funds for these types of 
program activities, until HUD has completed an environmental review in 
accordance with 24 CFR part 50. See Section V.B.7 for additional 
information on this topic.
    Requirements regarding the Environmental Review of project sites 
proposed in your application for the Rural Housing and Economic 
Development program are found at Section V.B.1.e. of this NOFA.
    o. Conflicts of Interest. If you are a consultant or expert who is 
assisting HUD in rating and ranking applicants for funding under this 
NOFA, you are subject to 18 U.S.C. 208, the federal criminal conflict 
of interest statute, and the Standards of Ethical Conduct for Employees 
of the Executive Branch regulation published at 5 CFR part 2635. As a 
result, if you have assisted or plan to assist applicants with 
preparing applications for this NOFA, you may not serve on a selection 
panel and you may not serve as a technical advisor to HUD. All 
individuals involved in rating and ranking applications in response to 
HUD's FY2004 NOFAs, either published simultaneously with this NOFA or 
after the publication of this NOFA, including experts and consultants, 
must avoid conflicts of interest and the appearance of conflicts. 
Individuals involved in the rating and ranking of applications received 
under this NOFA must disclose to HUD's General Counsel or HUD's Ethics 
Law Division, if applicable, how the selection or non-selection of any 
applicant under this NOFA will affect the individual's financial 
interests, as provided in 18 U.S.C. 208, or how the application process 
involves a party with whom the individual has a covered relationship 
under 5 CFR 2635.502. The individual must disclose this information 
prior to participating in any matter regarding this NOFA. If you have 
questions regarding these provisions or if you have questions 
concerning a conflict of interest, you may call the Office of General 
Counsel, Ethics Law Division, at (202) 708-3815.
    p. Drug-Free Workplace. If you receive an award of funds from HUD, 
you are required to provide a drug-free workplace. Compliance with this 
requirement means that you will do the following:
    (1) Publish a statement notifying employees that it is unlawful to 
manufacture, distribute, dispense, possess, or use a controlled 
substance in the applicant's workplace and that such activities are 
prohibited. The notice must specify the actions that will be taken 
against the employee for violation of this prohibition. The statement 
must also notify employees as a condition of employment under the 
federal award that they are required to abide by the terms of the 
statement and that the employees must agree to notify the employer in 
writing of any violation of a criminal drug statute in the workplace no 
later than five calendar days after such violation.
    (2) Establish an on-going drug-free awareness program to inform 
employees about the following:
    (a) The dangers of drug abuse in the workplace;
    (b) The applicant's policy of maintaining a drug-free workplace; 
and
    (c) Any available drug counseling, rehabilitation, or employee 
maintenance programs; and
    (d) The penalties that may be imposed upon employees for drug abuse 
violations occurring in the workplace.
    (3) Notify the federal agency in writing within ten calendar days 
after receiving notice from an employee of a drug abuse conviction or 
otherwise receiving actual notice of a drug abuse conviction. The 
notification must be provided in writing to the Office of Departmental 
Grants Management and Oversight, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 3156, Washington, DC 20410-
3000, along with the following information:
    (a) The program title and award number for each HUD award covered; 
and
    (b) The HUD staff contact name, phone, and fax number.
    (4) Require that each employee engaged in the performance of the 
federally funded activity be given a copy of the drug-free workplace 
statement required in item (1) and notifying the employee that one of 
the following actions will be taken against the employee within 30 
calendar days of receiving notice of any drug abuse conviction:
    (a) Institution of a personnel action against the employee, up to 
and including termination, consistent with requirements of the 
Rehabilitation Act of 1973, as amended; or
    (b) Requiring the employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes 
by a federal, state, or local health, law enforcement, or other 
appropriate agency.
    5. Program-Specific Threshold Requirements.
    a. The application must receive a minimum rating score of 75 points 
to be considered for funding.
    b. HUD will only fund eligible applicants as defined in this NOFA 
under Section III.A.
    c. Applicants must serve an eligible rural area as defined in 
Section III. of this NOFA.
    d. Proposed activities must meet the objectives of the Rural 
Housing and Economic Development program.
    6. Program Requirements:
    a. Applicants must demonstrate that their activities will continue 
to serve populations that are in need and that beneficiaries will have 
a choice of innovative housing and economic development opportunities 
as a result of these activities.
    b. Environmental Review. Requirements regarding the Environmental 
Review of project sites proposed in your application for the Rural 
Housing and Economic

[[Page 22326]]

Development program are found at Section V.B.1.e, of this NOFA.
    c. Executive Order 13202. Requirements regarding construction 
projects proposed in your application for the Rural Housing and 
Economic Development program can be found in Section V.B.7. of this 
NOFA.
    7. Energy Star. The Department of Housing and Urban Development has 
adopted a wide-ranging energy action plan for improving energy 
efficiency in all program areas. As a first step in implementing the 
energy plan, HUD, the Environmental Protection Agency (EPA), and the 
Department of Energy (DoE) have signed a joint partnership to promote 
energy efficiency in HUD's affordable housing efforts and programs. The 
purpose of the Energy Star partnership is to promote energy efficiency 
in the affordable housing stock and to help protect the environment. 
Awardees constructing, rehabilitating, or maintaining housing or 
community facilities are encouraged to promote energy efficiency in 
design and operations. They are urged especially to purchase and use 
Energy Star labeled products. Awardees providing housing assistance or 
counseling services are encouraged to promote Energy Star to homebuyers 
and renters. Program activities may include developing Energy Star 
promotional and information materials, outreach to low- and moderate-
income renters and buyers on the benefits and savings when using Energy 
Star products and appliances, and promoting the designation of 
community buildings and homes as Energy Star compliant. For further 
information about Energy Star see http://www.energystar.gov or call 
888-STAR-YES (888-782-7937). Persons with hearing or speech impairments 
may access this number through TTY by calling 888-588-9920 or the toll-
free Federal Information Relay Service at 800-877-8339.

IV. Application and Submission Information

A. Address To Request Application Package

    This section describes how you may obtain application forms. Copies 
of the published Rural Housing and Economic Development NOFA and 
application forms may be downloaded from the Grants.gov Web site at 
http://www.grants.gov/Find or you may call HUD's NOFA Information 
Center at 800-HUD-8929. (This is not a toll-free number.) Persons with 
hearing or speech impairment may access this number through TTY by 
calling toll-free Federal Information Relay Service at 800-877-8339.
    1. Application Kit. An application kit for the Rural Housing and 
Economic Development program is not necessary for submitting an 
application in response to this announcement. This announcement 
contains all the information necessary for the submission of your 
application for the Rural Housing and Economic Development program. In 
response to concerns about the length of time it takes for the 
publication and dissemination of application kits, HUD has made an 
effort to improve the readability of our NOFAs and publish all required 
forms and formats for application submission in the Federal Register. 
As a result of this effort, you will not have to wait for an 
application kit to prepare your application for funding. HUD is 
continuing to streamline programs and application submission 
requirements and encourages the applicant community to offer additional 
suggestions. Please pay attention to the submission requirements and 
format for submission specified in this NOFA to ensure that you have 
submitted all required elements of your application.
    The published Federal Register document is the official document 
that HUD uses to evaluate applications. Therefore, if there is a 
discrepancy between any materials published by HUD in its Federal 
Register publications and other information provided in paper copy or 
on http://www.Grants.gov/Find, the Federal Register publication 
prevails. Please be sure to review your application submission against 
the requirements in the Federal Register file of the NOFA(s) for which 
you are interested in applying. Paper copies of these documents can be 
obtained from the NOFA Information Center by calling 800-HUD-8929. 
Persons with hearing or speech impairments may access this number 
through TTY by calling the toll-free 800-HUD-2209.
    2. Guidebook and Further Information. A guidebook to HUD programs 
titled ``Connecting with Communities: A User's Guide to HUD Programs 
and the FY2004 NOFA Process'' is available from the NOFA Information 
Center and HUD's Web site at http://www.hud.gov. The guidebook provides 
a brief description of all HUD programs, eligible applicants for the 
programs, and examples of how programs can work in combination to serve 
local community needs. To obtain a guidebook, or a paper copy of this 
notice, call the NOFA Information Center at 800-HUD-8929. Persons with 
hearing or speech impairments may access this number through TTY by 
calling the toll-free 800-HUD-2209.
    You may request general information, paper copies of this NOFA and 
HUD NOFA policy requirements, and applications from the NOFA 
Information Center (800-HUD-8929 or 800-HUD-2209 (TTY)) between the 
hours of 9 a.m. and 8 p.m. (Eastern time) Monday through Friday, except 
on federal holidays. When requesting information, please refer to the 
name of the program you are interested in. Be sure to provide your 
name, address (including ZIP Code), and telephone number (including 
area code). You can also obtain information on this NOFA and download 
application information for HUD programs issued via NOFA during FY2004 
through the http://www.Grants.gov Web site.

B. Content and Form of Application Submission

    1. Application Submission Requirements. Be sure to read and follow 
the application submission requirements carefully.
    a. Page Numbering. All pages of the application must be numbered 
sequentially. Your application must include an original and two copies 
of the items listed below.
    b. Application Items. Your application must contain the items 
listed in this section. These items include the HUD standard forms and 
non-standard certifications that can be found in the Appendices to this 
NOFA. The items are as follows:
    (1) A transmittal letter that must include the category under which 
you are applying, the dollar amount requested, the category under which 
you qualify for demographics of distress special factor under Rating 
Factor 2 ``Need and Extent of the Problem'', which of the five 
definitions of the term ``rural area'' set forth in Section III 
(I.B.9.) of this NOFA applies to the proposed service area, and 
accompanying documentation as indicated on the form.
    (2) Table of Contents.
    (3) A signed SF-424 (application form).
    (4) Assurances Non-Construction Programs (HUD-424B).
    (5) Disclosure of Lobbying Activities (SF-LLL).
    (6) Applicant/Recipient Disclosure/Update Report (HUD-2880).
    (7) Client Comments and Suggestions (HUD 2994) (Optional).
    (8) Survey on Ensuring Equal Opportunity for Applicants (HUD-
23004).

[[Page 22327]]

    (9) Program Outcome Logic Model (HUD-96010).
    (10) SF-424 Supplement Survey on Equal Opportunity for Applicants 
(optional submission).
    (11) A budget for all funds (federal and non-federal including HUD-
424CB and HUD 424-CBW).
    (12) Certification of Consistency with RC/EZ/EC Strategic Plan 
(HUD-2990), if applicable.
    (13) Certification of Consistency with the Consolidated Plan (HUD-
2991), if applicable.
    (14) Racial and Ethnic Data Reporting Form (HUD-27061).
    (15) Documentation of funds pledged in support of Rating Factor 4--
`` Leveraging Resources'' (which will not be counted in the 15-page 
limitation). Documentation must be in the form of a firm commitment as 
defined in Section I.B.4. of this NOFA.
    (16) The required certifications and assurances (signed, as 
appropriate, and attached as an Appendix).
    (17) Acknowledgment of the Application receipt form (HUD 2993) 
(submitted with application and returned to you as verification of 
timely receipt).
    (18) If you are a private nonprofit organization, a copy of your 
organization's IRS ruling providing tax-exempt status under section 501 
of the Internal Revenue Code of 1986, as amended.
    (19) Narrative response to Factors for Award.
    (a) A description of your organization and assignment of 
responsibilities for the work to be carried out under the grant (Rating 
Factor 1).
    (b) A description of the need and extent of the problem and 
populations to be served (Rating Factor 2).
    (c) A workplan that demonstrates your soundness of approach and the 
clear linkage between rural housing and economic development (Rating 
Factor 3). In addressing this submission requirement, you must:
    (i) Describe the activities you propose to undertake that address 
the needs, which have been identified, the linkage between rural 
housing and economic development, as well as the specific outcomes you 
expect to achieve.
    (ii) Include a management plan that identifies the specific actions 
you will take to complete the proposed activities on time and a budget 
in the format provided that explains the uses of both federal and non-
federal funds and the period of performance under the grant.
    (iii) Include a discussion of the process by which the work 
accomplished with the grant will be evaluated to determine if the 
objectives of the grant were met.
    (d) Identify the resources that will be leveraged by the amount of 
this grant's funding that you are requesting (Rating Factor 4). To 
receive the maximum number of points under Rating Factor 4 you must 
provide evidence of firm commitments.
    (e) You must describe the extent to which your program reflects a 
coordinated, community-based process of identifying needs and building 
a system to address these needs, providing program beneficiaries with 
outcomes that result in increased independence and empowerment, and the 
potential for your organization to become financially self-sustaining. 
You must also describe how your activities will achieve the program 
outcomes, as described in Rating Factor 5 (Achieving Results and 
Program Evaluation), namely, where applicable, the number of housing 
units constructed, the number of housing units rehabilitated, the 
number of jobs created, the number of jobs retained, the number of 
participants trained, the number of new businesses created and the 
number of existing businesses assisted, number of housing units 
rehabilitated that will be made available to low-to-moderate income 
participants, percentage change in earnings as a result of employment 
for those participants, the percent of trained participants who find a 
job, annual estimated savings for low-income families as a result of 
energy efficiency improvements (Rating Factor 5).
    (f) The total narrative response to all factors should not exceed 
15 pages and must be submitted on 8.5'' by 11'' paper, using a 12 point 
font, with lines double spaced and printed only on one side. Please 
note that, although submitting pages in excess of the page limit will 
not disqualify your application, HUD will not consider or review the 
information on any excess pages, which may result in a lower score or 
failure to meet a threshold.
    (20) Questionnaire for HUD's Initiative on Removal of Regulatory 
Barriers (HUD 27300).

C. Submission Dates and Times

    1. Applications for the Rural Housing and Economic Development 
program must be postmarked at or before midnight of the application due 
date and received in HUD headquarters on or within five days after the 
application due date.
    2. Applications received more than five days after the application 
due date will be deemed late and will not be considered.
    3. Only one application will be accepted from any given 
organization. If more than one application is received from an 
organization, the application that was received first in HUD's 
Processing and Control Unit will be considered for funding. Any 
subsequent application from that organization will be deemed 
ineligible.

----------------------------------------------------------------------------------------------------------------
            What to submit                 Required content     Required form or format       When to submit
----------------------------------------------------------------------------------------------------------------
Application..........................  .......................  .......................  May 24, 2004
    Transmittal Letter
    Application Form.................  .......................  SF-424.................
    Budget information...............  (per required form)....  HUD-CB.................
                                                                HUD-CBW................
    Rating Factors: Narrative........  Described in Section
                                        V.A. of this
                                        announcement.
    Assurances.......................  (per required form)....  HUD-424B...............
    Disclosure Update................  ......do...............  HUD-2880...............
    Disclosure of Lobby..............  ......do...............  SF-LLL.................
    Certification of RC/EZ...........  ......do...............  HUD-2990...............
    Certification of Consistency with  ......do...............  HUD 2991...............
     Consolidated Plan.
    Acknowledgement of Receipt.......  ......do...............  HUD-2993...............
    Comments and Suggestions.........  ......do...............  HUD-2994...............
    Survey on Ensuring Equal           ......do...............  HUD-23004..............
     Opportunity for Applicants.

[[Page 22328]]

 
    Racial and Ethnic Data Reporting   ......do...............  HUD-27061..............
     Form.
    Logic Model......................  ......do...............  HUD-96010..............
    Questionnaire for HUD's            ......do...............  HUD-27300..............
     Initiative on Removal of
     Regulatory Barriers.
----------------------------------------------------------------------------------------------------------------

D. Intergovernmental Agency Review

    Intergovernmental agency review is not required for this program.

E. Funding Restrictions

    1. Administrative Costs. Administrative costs for assistance under 
the Rural Housing and Economic Development program may not exceed 15 
percent of the total HUD Rural Housing and Economic Development grant 
award.
    2. Multiple Capacity Building Grants. If you have received two or 
more Rural Housing and Economic Development grants for capacity 
building since 1999, you are not eligible to apply under Category 1: 
Capacity Building.
    3. Ineligible Activities. RHED funds cannot be used for the 
following activities:
    a. Income payments to subsidize individuals or families;
    b. Political activities;
    c. General governmental expenses other than expenses related to the 
administrative cost of the grant; or
    d. Projects or activities intended for personal gain or private 
use.
    HUD reserves the right to reduce or deobligate the award if 
suitable modifications to the proposed project are not submitted by the 
awardee within 90 days of the request. Any modification must be within 
the scope of the original application. HUD reserves the right not to 
make awards under this NOFA.

F. Other Submission Requirements

    1. Address for Submitting Applications. Completed applications (one 
original and two complete copies) must be submitted to Processing and 
Control Unit, Room 7251, Office of Community Planning and Development, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410-7000, ATTN: Office of Rural Housing and Economic 
Development. When submitting your application, please include your 
name, mailing address (including ZIP Code), telephone number, and fax 
number (including area code).
    2. Delivery and Receipt Procedures. The following procedures apply 
to the delivery and receipt of applications in HUD Headquarters. Please 
read the following instructions carefully and completely, because 
failure to comply with these procedures may disqualify your 
application. HUD's delivery and receipt policies are:
    a. Hand deliveries will be permitted. However, if HUD staff are not 
available to accept your package or the courier service is not allowed 
to enter the building to deliver the package due to security or other 
reasons, the package will be determined not delivered and not accepted 
by HUD. In such instances, HUD recommends that you, the applicant, or 
your agent take your package to the nearest post office and follow the 
mailing instructions for postal service timely delivery. HUD will not 
take responsibility for ensuring that staff is available to take your 
package or breach security measures in order to accept an undeliverable 
package.
    b. HUD will not accept or consider any application sent by 
facsimile.
    c. HUD urges applicants sending packages by courier to the Robert 
C. Weaver Headquarters Building to use the following courier services, 
because these services have unescorted access to these buildings: DHL, 
Falcon Carrier, Federal Express (FedEx), and United Parcel Service 
(UPS). Packages may be mailed using the United States Postal Service. 
Mailed applications will be accepted as being timely submitted if they 
are received at the designated HUD location (including specified room 
number for receipt) within five days after the due date and show a 
postmark of being delivered to the postal facility for mailing by the 
application due date and time. If the Postal Service does not normally 
postmark large packages, the proof of timely submission shall be 
receipt of the application within five days after the due date at the 
designated HUD location and, upon request by an HUD official, proof of 
mailing using USPS Form 3817 (Certificate of Mailing) or a receipt from 
the Postal Service which contains the post office name, location, and 
date and time of mailing. For submission through the United States 
Postal Service, no other proof of timely submission will be accepted.
    d. Applications mailed to a location or office not designated for 
receipt of the application, which results in the designated office not 
receiving your application in accordance with the requirements for 
timely submission, will result in your application being considered 
late and will not receive funding consideration. HUD will not be 
responsible for directing packages to the appropriate office.
    Applicants should pay close attention to these submission and 
timely receipt instructions as it can make a difference in HUD 
accepting your application for funding consideration. Please remember 
that mail sent to federal facilities is screened prior to delivery, so 
please allow sufficient time for your package to be delivered. If an 
application is received late because of the processing time required 
for the screening, the application will not be considered for funding.
    3. Proof of Timely Submission. Proof of timely submission of an 
application is specified below.
    a. In the case of packages sent to HUD via a delivery service, 
other than the United States Postal Service, timely submission shall be 
evidenced via a delivery service receipt indicating that the 
application was delivered to a carrier service at least 24 hours prior 
to the application deadline, and, if applicable, that through no fault 
of the applicant, the delivery could not be made on or before the 
application due date. Couriers turned away from an HUD facility due to 
security issues will not be considered as meeting the requirement of 
``no fault of the applicant,'' because applicants have been advised 
that delivery delays can arise when using courier services, resulting 
in a late application submission.
    b. For packages submitted via the United States Postal Service, 
proof of timely submission shall be a postmark not later than the 
application due date or receipt not later than five days after the 
application due date at the designated HUD facility and, upon request 
by an HUD official, proof of mailing using USPS Form 3817 (Certificate 
of Mailing) or a receipt from the Post Office which contains the post 
office name, location and date and time of mailing. For submission 
through the United States Postal Service, no other proof of timely 
submission will be accepted. Applications not meeting the

[[Page 22329]]

timely submission requirements will not be considered for funding.
    4. Addresses. You, the applicant, must submit a complete 
application and the required number of copies to the location 
identified in this NOFA. When submitting your application, you must 
refer to the name of the program for which you are applying and include 
the correct room number to ensure that your application is properly 
directed. The address for deliveries to the Robert C. Weaver Federal 
Building is identified in this NOFA.
    Please be sure to include the NOFA name and room number on your 
submission package.
    5. Electronic Submission of Packages using Grants.gov. In FY2005, 
HUD intends to have applications submitted via the federal government's 
new electronic application portal called http://www.Grants.gov. 
Applicants are urged to become familiar with the Grants.gov site and to 
follow the steps under ``Get Started'' so that you will be prepared to 
apply on line for HUD and other federal agency programs.
    For FY2004, paper applications will be considered by HUD to be the 
official application submission. HUD urges all applicants to become 
familiar with the http://www.grants.gov site and register to receive 
funding opportunity notifications. The Grants.gov site provides 
instructions on how to get a DUNS number, as well as registration and 
e-authentication procedures. The Grants.gov site provides a help desk 
to address Grants.gov technology issues, and HUD will establish a help 
line to address questions on program issues. The Grants.gov help line 
is 800-518-Grants. Individuals who personally apply for federal 
financial assistance, apart from any business or nonprofit organization 
they may operate, are excluded from the requirement to obtain a DUNS 
number. You can find a copy of HUD's DUNS regulation at http://www.hud.gov/grants/index.cfm.

V. Application Review Information:

A. Criteria

    The following Rating Factors will be used to review, evaluate, and 
rate your application.
1. Rating Factor 1--Capacity of the Applicant and Relevant 
Organizational Experience (25 Points)
    This rating factor addresses the extent to which you have the 
organizational resources necessary to successfully implement your 
proposed work plan, as further described in Rating Factor 3, within the 
36-month award period.
    a. Rating standards applicable to individual funding categories. 
The two funding categories have different objectives. Accordingly, in 
addition to the generally applicable rating standard discussed above, 
the different standards discussed below will be used to judge the 
experience and qualifications of the applicants for each of the two 
funding categories. HUD fully supports emerging organizations that 
desire to develop internal capacity. Therefore, the following 
categories will be evaluated:
    (1) For Capacity Building applications (25 points). Team members, 
composition, experience, organizational structure, and management 
capacity. Your response to this sub-factor should clearly state the 
need that your organization will address with the requested assistance. 
In addition, you should describe how the enhanced capacity realized 
through the assistance will fulfill that need. HUD will evaluate the 
experience (including its recentness and relevancy) of your project 
director, core staff, and any outside consultant, contractor, 
subrecipient, or project partner as it relates to innovative housing 
and economic development and to the implementation of the activities in 
your workplan. HUD also will assess the services that consultants or 
other parties will provide to fill gaps in your staffing structure to 
enable you to carry out the proposed workplan; the experience of your 
project director in managing projects of similar size, scope, and 
dollar amount; the lines of authority and procedures that you have in 
place for ensuring that workplan goals and objectives are being met, 
that consultants and other project partners are performing as planned, 
and that beneficiaries are being adequately served. In responding to 
this sub-factor, please indicate how the capacity building assistance 
will strengthen or otherwise affect your organization's current housing 
or economic development program portfolio or, if you are a new grantee, 
how the capacity assistance will ensure that you can carry out your 
proposed activities. In judging your response to this factor, HUD will 
only consider work experience gained within the last three years. When 
responding, please be sure to provide the dates, job titles and 
relevancy of the past experience to work to be undertaken by the 
employee or contractor under your Rural Housing and Economic 
Development program application. The more recent, relevant, and 
successful the experience of your team members is in relationship to 
the workplan activities, the greater the number of points you will 
receive.
    (2) For Support for Innovative Rural Housing and Economic 
Development Activities applications:
    (a) Team members, composition, and experience (10 points). HUD will 
evaluate the experience (including its recentness and relevancy) of 
your project director, core staff, and any outside consultant, 
contractor, subrecipient, or project partner as it relates to 
innovative housing and economic development and to the implementation 
of the activities in your workplan. HUD also will assess the services 
that consultants or other parties will provide to fill gaps in your 
staffing structure to enable you to carry out the proposed workplan; 
the experience of your project director in managing projects of similar 
size, scope, and dollar amount; the lines of authority and procedures 
that you have in place for ensuring that workplan goals and objectives 
are being met, that consultants and other project partners are 
performing as planned, and that beneficiaries are being adequately 
served. In judging your response to this factor, HUD will only consider 
work experience gained within the last seven years. When responding, 
please be sure to provide the dates, job titles and relevancy of the 
past experience to work to be undertaken by the employee or contractor 
under your proposed Rural Housing and Economic Development award. The 
more recent, relevant, and successful the experience of your team 
members are in relationship to the workplan activities, the greater the 
number of points that you will receive.
    (b) Organizational structure and management capacity (5 points). 
HUD will evaluate the extent to which you can demonstrate your 
organization's ability to manage a workforce composed of full-time or 
part-time staff, as well as any consultant staff, and your ability to 
work with community-based groups or organizations in resolving issues 
related to affordable housing and economic development. In evaluating 
this subfactor, HUD will take into account your experience in working 
with community-based organizations to design and implement programs 
that address the identified housing and economic development issues. 
The more recent, relevant, and successful the experience of your 
organization and any participating entity, the greater the number of 
points you will receive.
    (c) Experience with performance-based funding requirements (10 
points). HUD will evaluate your performance in any previous grant 
program undertaken with HUD funds or other federal, state, local, or 
nonprofit or for-profit organization funds. In assessing points for 
this sub-factor, HUD reserves the right to take into account your past 
performance in meeting performance

[[Page 22330]]

and reporting goals for any previous HUD award, in particular whether 
the program achieved its outcomes. HUD will deduct one point for each 
of the following activities related to previous HUD grant programs for 
which unsatisfactory performance has been verified: (1) Mismanagement 
of funds, including the inability to account for funds appropriately; 
(2) untimely use of funds received either from HUD or other federal, 
state, or local programs; and (3) significant and consistent failure to 
measure performance outcomes. Among the specific outcomes to be 
measured are the increases in program accomplishments as a result of 
capacity building assistance and the increase in organizational 
resources as a result of assistance.
    b. Past Rural Housing and Economic Development program performance. 
The past performance of previously awarded Rural Housing and Economic 
Development grantees will be taken into consideration when evaluating 
Rating Factor 1 ``Capacity of the Applicant and Relevant Organizational 
Experience.'' Applicants who have been awarded Rural Housing and 
Economic Development program funds prior to FY2004 should indicate 
fiscal year and funding amount. HUD local field offices may be 
consulted to verify information submitted by the applicant as a part of 
the review of applications.
2. Rating Factor 2--Need and Extent of the Problem (20 Points)
    The Rural Housing and Economic Development program is designed to 
address the problems of rural poverty, inadequate housing and lack of 
economic opportunity. This factor addresses the extent to which there 
is a need for funding the proposed activities based on levels of 
distress and the urgency of meeting the need/distress in the 
applicant's target area. In responding to this factor, applications 
will be evaluated on the extent to which the level of need for the 
proposed activity and the urgency in meeting the need are documented 
and compared to target area and national data.
    a. In applying this factor, HUD will compare the current levels of 
need in the area (i.e., Census Tract(s) or Block Group(s)) immediately 
surrounding the project site or the target area to be served by the 
proposed project and the national levels of need. This means that an 
application that provides data that show levels of need in the project 
area expressed as a percent greater than the national average will be 
rated higher under this factor. Notwithstanding the above, an applicant 
proposing a project to be located outside the target area could still 
receive points under Rating Factor 2, if a clear rationale is provided 
linking the proposed project location and the benefits to be derived by 
persons living in distressed parts of the applicant's target area.
    b. Applicants should provide data that address indicators of need 
as follows:
    (1) Poverty Rate (5 points)--Data should be provided in both 
absolute and percentage form (i.e., whole numbers and percents) for the 
target area(s). An application that compares the local poverty rate in 
the following manner to the national average at the time of submission 
will receive points under this section as follows:
    (a) Less than the national average = 0 points;
    (b) Equal to but less than twice the national average = 1 point;
    (c) Twice but less than three times the national average = 3 
points;
    (d) Three or more times the national average = 5 points.
    (2) Unemployment (5 points)--for the target area:
    (a) Less than the national average = 0 points;
    (b) Equal to but less than twice the national average = 1 point;
    (c) Twice but less than three times the national average = 2 
points;
    (d) Three but less than four times the national average = 3 points;
    (e) Four but less than five times the national average = 4 points;
    (f) Five or more times the national average = 5 points.
    (3) Other indicators of social or economic decline that best 
capture the applicant's local situation (5 points).
    (a) Data that could be provided under this section are information 
on the community's stagnant or falling tax base, including recent 
commercial or industrial closings; housing conditions, such as the 
number and percentage of substandard or overcrowded units; rent burden 
(defined as average housing cost divided by average income) for the 
target area; local crime statistics, falling property values, etc. To 
the extent that the applicant's statewide or local Consolidated Plan, 
its Analysis of Impediments to Fair Housing Choice (AI), or its anti-
poverty strategy identify the level of distress in the community and 
the neighborhood in which the project is to be carried out, references 
to such documents should be included in preparing the response to this 
factor.
    (b) In rating applications under this factor, HUD reserves the 
right to consider sources of available objective data other than or in 
addition to those provided by applicants, and to compare such data to 
those provided by applicants for the project site. These may include 
U.S. Census data.
    (c) HUD requires use of sound, verifiable, and reliable data (e.g., 
U.S. Census data, state statistical reports, university studies/
reports, or Home Mortgage Disclosure Act or Community Reinvestment Act 
databases) to support distress levels cited in each application. See 
http://www.ffiec.gov/webcensus/ffieccensus.htm. A source for all 
information along with the publication or origination date must also be 
provided.
    (d) Updated Census data are available for the following indicators:
    (i) Unemployment rate--estimated monthly for counties, with a two-
month lag;
    (ii) Population--estimated for incorporated places and counties, 
through 2000;
    (iii) Poverty rate--through 2000.
    (4) Demographics of Distress--Special Factors (5 points). Because 
HUD is concerned with meeting the needs of certain underserved areas, 
you will be awarded a total of five points if you are located in or 
propose to serve one or more of the following populations, or if your 
application demonstrates that 100 percent of the beneficiaries 
supported by Rural Housing and Economic Development funds are in one or 
more of the following populations. You must also specifically identify 
how each population will be served and that the proposed service area 
meets the definition of ``eligible rural area'' in Section I of this 
NOFA:
    (a) Areas with very small populations in non-urban areas (2,500 
population or less);
    (b) Seasonal farm workers;
    (c) Federally recognized Indian tribes;
    (d) Colonias;
    (e) Appalachia's Distressed Counties; or
    (f) The Lower Mississippi Delta Region (8 states and 240 counties/
parishes).
    For these underserved areas, you should ensure that the populations 
that you serve and the documentation that you provide are consistent 
with the information described in the above paragraphs under this 
rating factor.
3. Rating Factor 3--Soundness of Approach (20 Points)
    This factor addresses the overall quality of your proposed 
workplan, taking into account the project and the activities proposed 
to be undertaken; the cost-effectiveness of your proposed program; and 
the linkages between identified needs, the purposes of this program, 
and your proposed activities and tasks. In addition, this factor

[[Page 22331]]

addresses your ability to ensure that a clear linkage exists between 
innovative rural housing and economic development. In assessing cost-
effectiveness, HUD will take into account your staffing levels; 
beneficiaries to be served; and your timetable for the achievement of 
program outcomes, the delivery of products and reports, and any 
anticipated outcome or product. You will receive a greater number of 
points if your workplan is consistent with the purpose of the Rural 
Housing and Economic Development program, your program goals, and the 
resources provided.
    a. Management Plan (13 points). A clearly defined management plan 
should be submitted that identifies each of the projects and activities 
you will carry out to further the objectives of this program; describes 
the linkage between rural housing and economic development activities; 
and addresses the needs identified in Factor 2, including needs that 
previously were identified in a statewide or local Analysis of 
Impediments to Fair Housing Choice (AI) or Consolidated Plan. The 
populations that were described in Rating Factor 2 for the purpose of 
documenting need should be the same populations that will receive the 
primary benefit of the activities, both immediately and over the long 
term. The benefits should be affirmatively marketed to those 
populations least likely to apply for and receive these benefits 
without such marketing. Your timetable should address the measurable 
goals and objectives to be achieved through the proposed activities; 
the method you will use for evaluating and monitoring program progress 
with respect to those activities; and the method you will use to ensure 
that the activities will be completed on time and within your proposed 
budget estimates. Your management plan should also include the budget 
for your program, broken out by line item. Documented projected cost 
estimates from outside sources are also required. Applicants should 
submit their workplan on a spreadsheet showing each project to be 
undertaken and the tasks (to the extent necessary or appropriate) in 
your workplan to implement the project with your associated budget 
estimate for each activity/task. Your workplan should provide the 
rationale for your proposed activities and assumptions used in 
determining your project timeline and budget estimates. Failure to 
provide your rationale may result in your application receiving fewer 
points for lack of clarity in the proposed management plan.
    This subfactor should include information that indicates the extent 
to which you have coordinated your activities with other known 
organizations (e.g., through letters of participation or coordination) 
that are not directly participating in your proposed work activities, 
but with which you share common goals and objectives and that are 
working toward meeting these objectives in a holistic and comprehensive 
manner. The goal of this coordination is to ensure that programs do not 
operate in isolation. Additionally, your application should demonstrate 
the extent to which your program has the potential to be financially 
self-sustaining by decreasing dependence on Rural Housing and Economic 
Development funding and relying more on state, local, and private 
funding. The goal of sustainability is to ensure that the activities 
proposed in your application can be continued after your grant award is 
complete.
    b. Policy Priorities (7 Points). Policy priorities are further 
outlined in Section V.B.3. below. You should document the extent to 
which HUD's policy priorities are furthered by the proposed activities. 
Applicants that include activities that can result in the achievement 
of these departmental policy priorities will receive higher rating 
points in evaluating their application for funding. Six departmental 
policy priorities are listed below. When policy priorities are 
included, describe in brief detail how those activities will be carried 
out.
    The point values for policy priorities are as follows:
    (1) Providing increased homeownership and rental opportunities for 
low- and moderate-income persons, persons with disabilities, the 
elderly, minorities, and families with limited English proficiency = 1 
point;
    (2) Improving our Nation's communities = 1 point;
    (3) Encouraging accessible design features = 1 point;
    (4) Providing full and equal access to grassroots faith-based and 
other community-based organizations in HUD program implementation = 1 
point;
    (5) Ending chronic homelessness within ten years = 1 point and;
    (6) Removal of barriers to affordable housing = up to 2 points.
4. Rating Factor 4--Leveraging Resources (10 Points)
    This factor addresses the extent to which applicants for either of 
the two funding categories have obtained firm commitments of financial 
or in-kind resources from other federal, state, local, and private 
sources. For every Rural Housing and Economic Development program 
dollar anticipated, you should provide the specific amount of dollars 
leveraged. In assigning points for this criterion, HUD will consider 
the level of outside resources obtained in the form of cash or in-kind 
goods or services that support activities proposed in your application. 
HUD will award a greater number of points based upon a comparison of 
the extent of leveraged funds with the requested Rural Housing and 
Economic Development award. This criterion is applicable to both 
funding categories under this NOFA. The level of outside resources for 
which commitments are obtained will be evaluated based on their 
importance to the total program. Your application must provide evidence 
of leveraging in the form of letters of firm commitment from any 
entity, including your own organization, which will be providing 
matching funds to the project. Each commitment described in the 
narrative of this factor must be in accordance with the definition of 
``firm commitment,'' as defined in this NOFA. The commitment letter 
must be on letterhead of the participating organization, must be signed 
by an official of the organization legally able to make commitments on 
behalf of the organization, and must not be dated earlier than the date 
this NOFA is published.
    Points for this factor will be awarded based on the satisfactory 
provisions of evidence of leveraging and financial sustainability, as 
described above, and the ratio of leveraged funds to requested HUD 
Rural Housing and Economic Development funds as follows:
    a. 50% or more of requested HUD Rural Housing and Economic 
Development funds = 10 points;
    b. 49-40% of requested HUD Rural Housing and Economic Development 
funds = 8 points;
    c. 39-30% of requested HUD Rural Housing and Economic Development 
funds = 6 points;
    d. 29-20% of requested HUD Rural Housing and Economic Development 
funds = 4 points;
    e. 19-9% of requested HUD Rural Housing and Economic Development 
funds = 2 points;
    f. Less than 9% of HUD requested Rural Housing and Economic 
Development funds = 0 points.
5. Rating Factor 5--Achieving Results and Program Evaluation (25 
Points)
    This factor emphasizes HUD's commitment to ensuring that applicants 
keep promises made in their application

[[Page 22332]]

and assesses their performance to ensure that rigorous and useful 
performance measures are used and goals are met. Achieving results 
means you, the applicant, have clearly identified the benefits or 
outcomes of your program. Outcomes are ultimate project end goals. 
Benchmarks or outputs are interim activities or products that lead to 
the ultimate achievement of your goals. Program evaluation requires 
that you, the applicant, identify program outcomes, interim products or 
benchmarks, and performance indicators that will allow you to measure 
your performance. Performance indicators should be objectively 
quantifiable and measure actual achievements against anticipated 
achievements. Your evaluation plan should identify what you are going 
to measure, how you are going to measure it, and the steps you have in 
place to make adjustments to your work plan if performance targets are 
not met within established time frames.
    Applicants must also complete the ``Logic Model'' HUD Form (HUD-
96010) included in the appendix to this NOFA and submit the completed 
form with their application. This rating factor reflects HUD's goal to 
embrace high standards of ethics, management, and accountability. HUD 
will hold a training broadcast via satellite for potential applicants 
to learn more about Rating Factor 5. For more information about the 
date and time of the broadcast, consult the HUD Web site at http://www.hud.gov/grants/index.cfm.
    Program outcomes for the Rural Housing and Economic Development 
program must include where applicable:
    a. Number of housing units constructed;
    b. Number of housing units rehabilitated that will be made 
available to low-to-moderate-income participants;
    c. Number of jobs created;
    d. Percentage change in earnings as a result of employment for 
those participants;
    e. Number of participants trained;
    f. Percent of participants trained who find a job;
    g. Number of new businesses created;
    h. Number of existing businesses assisted; and
    i. Annual estimated savings for low-income families as a result of 
energy efficiency improvements.
    j. Increase in program accomplishments as a result of capacity 
building assistance (e.g., number of employees hired or retained, 
efficiency or effectiveness of services provided); and
    k. Increase in organizational resources as a result of assistance 
(e.g., dollars leveraged).
6. RC/EZ/EC Bonus Points (2 points)
    HUD will award two bonus points to all applications that include 
documentation stating that the proposed eligible activities/projects 
will be located in and serve federally designated Rural Renewal 
Communities, Rural Empowerment Zones, or Rural Enterprise Communities 
(Rural EZs/ECs). A listing of federally designated Rural RCs, EZs, and 
ECs is available on the Internet at http://www.hud.gov/grants/index.cfm.
    This notice contains a certification that must be completed for the 
applicant to be considered for Rural EZ/EC bonus points.

B. Review and Selection Process

1. Application Selection Process
    a. Rating and Ranking
    (1) General. To review and rate applications, HUD may establish 
panels which may include outside experts or consultants to obtain 
certain expertise and outside points of view, including views from 
other federal agencies.
    (2) Rating. All applicants for funding will be evaluated against 
applicable criteria. In evaluating applications for funding, HUD will 
take into account an applicant's past performance in managing funds, 
including the ability to account for funds appropriately; its timely 
use of funds received either from HUD or other federal, state or local 
programs; its success in meeting performance targets for completion of 
activities; and the number of persons to be served or targeted for 
assistance. HUD may use information relating to these items based on 
information at hand or available from public sources such as 
newspapers, Inspector General or Government Accounting Office reports 
or findings, hotline complaints that have been found to have merit, or 
other such sources of information. In evaluating past performance, HUD 
will deduct points from rating scores as specified under Rating Factor 
1, Capacity of the Applicant and Relevant Organizational Experience.
    (3) Ranking. Applicants will be ranked separately within each of 
the two funding categories. Applicants will be selected for funding in 
accordance with their rank order in each category. An application must 
receive a minimum score of 75 points to be eligible for funding. If two 
or more applications are rated fundable and have the same score, but 
there are insufficient funds to fund all of them, the application(s) 
with the highest score for Rating Factor 2 (Need and Extent of the 
Problem) will be selected. If applications still have the same score, 
the highest score in the following factors will be selected 
sequentially until one highest score can be determined: Rating Factor 3 
(Soundness of Approach), Rating Factor 1 (Capacity and Experience), 
Rating Factor 5 (Achieving Results and Program Evaluation), and Rating 
Factor 4 (Leveraging Resources).
    b. Initial screening. During the period immediately following the 
application deadline, HUD will screen each application to determine 
eligibility. Applications will be rejected, if they do not meet the 
Threshold Requirements described in Section III.C.3. of this NOFA.
    (1) Are submitted by ineligible applicants;
    (2) Do not serve an eligible rural area as defined in Section III 
of this NOFA;
    (3) Do not meet the objectives of the Rural Housing and Economic 
Development program; or
    (4) Propose a project for which the majority of the activities are 
ineligible.
    c. Rating Factors for Award Used to Evaluate and Rate Applications. 
The factors for rating and ranking applicants and the maximum points 
for each factor are provided above. The maximum number of points for 
this program is 102. This includes 100 points for all five rating 
factors and two Rural EZ/EC bonus points, as described above
    d. Forms, Certifications and Assurances. Applicants are required to 
submit signed copies of the standard forms, certifications and 
assurances included in the appendices of this NOFA signed by the 
managing officer of your organization.
    e. Environmental Review. Each application constitutes an assurance 
that the applicant agrees to assist HUD in complying with the 
provisions set forth in 24 CFR part 50. Selection for award does not 
constitute approval of any proposed site. Following selection for 
award, HUD will perform an environmental review of activities proposed 
for assistance under this part, in accordance with 24 CFR part 50. The 
results of the environmental review may require that proposed 
activities be modified or that proposed sites be rejected. Applicants 
are particularly cautioned not to undertake or commit HUD funds for 
acquisition or development of proposed properties (including 
establishing lines of credit that permit financing of such activities 
or making commitments for loans that would finance such activities from 
a revolving loan fund capitalized by funds under this NOFA) prior to 
HUD

[[Page 22333]]

approval of specific properties or areas. Each application constitutes 
an assurance that you, the applicant, will assist HUD in complying with 
part 50; will supply HUD with all available relevant information to 
perform an environmental review for each proposed property; will carry 
out mitigating measures required by HUD or select alternate property; 
and will not acquire, rehabilitate, convert, demolish, lease, repair, 
or construct property, or commit or expend HUD or local funds for these 
program activities with respect to any eligible property until HUD 
approval of the property is received. In supplying HUD with 
environmental information, grantees must use the guidance provided in 
Notice CPD-99-01, entitled ``Field Environmental Processing for HUD 
Colonias Initiative (HCI) grants,'' issued January 27, 1999. HUD's 
funding commitment is contingent upon HUD's site approval following an 
environmental review.
    f. Adjustments to Funding.
    (1) HUD will not fund any portion of your application that is not 
eligible for funding under the Rural Housing and Economic Development 
program statutory or regulatory requirements, does not meet the 
requirements of this NOFA, or is duplicative of other funded programs 
or activities from prior year awards or other selected applicants. Only 
the eligible non-duplicative portions of your application may be 
funded.
    (2) HUD reserves the right to utilize this year's funding to 
correct errors in the prior year's selection process prior to the 
rating and ranking of this year's applications. Additionally, HUD 
reserves the right to reallocate funds between categories to achieve 
the maximum allocation of funds in both categories.
    (3) If after all eligible applicants have been selected for funding 
in Category 1 and funds remain, the remaining funds will be allocated 
to Category 2 to fund additional eligible applications in that 
category. If a balance of funds remains, HUD reserves the right to 
utilize those funds toward the following year's awards.
    (4) In the event HUD commits an error that, when corrected, would 
result in selection of an otherwise eligible applicant during the 
funding round of a NOFA, HUD may select that applicant when sufficient 
funds become available.
    (5) Performance and Compliance Actions of Funding Recipients. HUD 
will measure and address the performance and compliance actions of 
funding recipients in accordance with the applicable standards and 
sanctions of the Rural Housing and Economic Development program.
    g. Corrections to Deficient Applications. After the application due 
date, HUD may not, consistent with its regulations in 24 CFR part 4, 
subpart B, consider any unsolicited information you, the applicant, may 
want to provide. HUD may contact you, however, to clarify an item in 
your application or to correct technical deficiencies. You should note, 
however, that HUD may not seek clarification of items or responses that 
improve the substantive quality of your response to any eligibility or 
selection factor.
    Examples of curable (correctable) technical deficiencies include 
inconsistencies in the funding request, a failure to submit the proper 
certifications or failure to submit an application that contains an 
original signature by an authorized official. In each case, HUD will 
notify you in writing of a technical deficiency. HUD will notify 
applicants by facsimile or by USPS, return receipt requested. 
Clarifications or corrections of technical deficiencies in accordance 
with the information requested by HUD must be submitted within five 
calendar days after the date you receive HUD notification. (If the due 
date falls on a Saturday, Sunday, or federal holiday, your correction 
must be received by HUD on the next day that is not a Saturday, Sunday 
or federal holiday). The determination of when you received the 
deficiency letter will be based on the confirmation of the facsimile 
transmission, return receipt, or postal tracking information, as 
appropriate. If the deficiency is not corrected within this time 
period, HUD will reject the application as incomplete and it will not 
be considered for funding.
2. HUD's Strategic Goals
    Implementing HUD's Strategic Framework and Demonstrating Results. 
HUD is committed to ensuring that programs result in the achievement of 
HUD's strategic mission. To support this effort, grant applications 
submitted for HUD programs will be rated on how well they tie proposed 
outcomes to HUD's policy priorities and annual goals and objectives and 
on the quality of the applicant's proposed evaluation and monitoring 
plan. HUD's Strategic Framework establishes the following goals and 
objectives for the Department:
    a. Increase Homeownership Opportunities
    (1) Expand national homeownership opportunities.
    (2) Increase minority homeownership.
    (3) Make the home buying process less complicated and less 
expensive.
    (4) Fight practices that permit predatory lending.
    (5) Help HUD-assisted renters become homeowners.
    (6) Keep existing homeowners from losing their homes.
    b. Promote Decent Affordable Housing
    (1) Expand access to affordable rental housing.
    (2) Improve the physical quality and management accountability of 
public and assisted housing.
    (3) Increase housing opportunities for the elderly and persons with 
disabilities.
    (4) Help HUD-assisted renters make progress toward self-
sufficiency.
    c. Strengthen Communities
    (1) Improve economic conditions in distressed communities.
    (2) Make communities more livable.
    (3) End chronic homelessness.
    (4) Mitigate housing conditions that threaten health.
    d. Ensure Equal Opportunity in Housing
    (1) Resolve discrimination complaints on a timely basis.
    (2) Promote public awareness of Fair Housing laws.
    (3) Improve housing accessibility for persons with disabilities.
    e. Embrace High Standards of Ethics, Management, and Accountability
    (1) Rebuild HUD's human capital and further diversify its 
workforce.
    (2) Improve HUD's management, internal controls, and systems and 
resolve audit issues.
    (3) Improve accountability, service delivery, and customer service 
of HUD and our partners.
    (4) Ensure program compliance.
    f. Promote Participation of Grassroots Faith-Based and Other 
Community-Based Organizations
    (1) Reduce regulatory barriers to participation by grassroots 
faith-based and other community-based organizations.
    (2) Conduct outreach to inform potential partners of HUD 
opportunities.
    (3) Expand technical assistance resources deployed to grassroots 
faith-based and other community-based organizations.
    (4) Encourage partnerships between grassroots faith-based and other 
community-based organizations and HUD's traditional grantees.
    You can find out about HUD's Strategic Framework and Annual 
Performance Plans at http://www.hud.gov/offices/cfo/reports/cforept.cfm.
3. Policy Priorities
    HUD encourages applicants to undertake specific activities that 
will

[[Page 22334]]

assist the Department in implementing its policy priorities and that 
help the Department achieve its goals for FY2004 and beyond, when the 
majority of funding recipients will be reporting programmatic results 
and achievements. Applicants that include work activities that 
specifically address one or more of these policy priorities will 
receive higher rating scores than applicants that do not address these 
HUD priorities. Above, this NOFA specifies which priorities relate to 
this program and how many points will be awarded for addressing those 
priorities.
    Listed below are HUD's FY2004 policy priorities:
    a. Providing Increased Homeownership and Rental Opportunities for 
Low- and Moderate-Income Persons, Persons with Disabilities, the 
Elderly, Minorities, and Families with Limited English Proficiency. Too 
often, these individuals and families are shut out of the housing 
market through no fault of their own. Developers of housing, housing 
counseling agencies, and other organizations engaged in the housing 
industry must work aggressively to open up the realm of homeownership 
and rental opportunities to low- and moderate-income persons, persons 
with disabilities, the elderly, minorities, and families with limited 
English proficiency. Many of these families are anxious to have a home 
of their own, but are not aware of the programs and assistance that are 
available. Applicants are encouraged to address the housing, housing 
counseling, and other related supportive service needs of these 
individuals and coordinate their proposed activities with funding 
available through HUD's affordable housing programs and home loan 
programs.
    Proposed activities support strategic goals a, b, and d.
    b. Improving our Nation's Communities. HUD wants to improve the 
quality of life for those living in distressed communities. Applicants 
are encouraged to include activities which:
    (1) Bring private capital into distressed communities;
    (a) Finance business investment to grow new businesses;
    (b) Maintain and expand existing businesses;
    (c) Create a pool of funds for new small and minority-owned 
businesses; and
    (d) Create decent jobs for low-income persons.
    (2) Improve the environmental health and safety of families living 
in public and privately-owned housing by including activities which:
    (a) Coordinate lead hazard reduction programs with weatherization 
activities funded by state and local governments, and the federal 
government; and
    (b) Reduce or eliminate health related hazards in the home caused 
by toxic agents such as molds and other allergens, carbon monoxide, and 
other hazardous agents and conditions.
    (3) Make communities more livable by:
    (a) Providing public and social services; and
    (b) Improving infrastructure and community facilities.
    Activities support strategic goals b, c, and d.
    c. Encouraging Accessible Design Features. As described in Section 
III.C.3.c., applicants must comply with applicable civil rights laws 
including the Fair Housing Act, Section 504 of the Rehabilitation Act 
of 1973, and the Americans with Disabilities Act. These laws and the 
regulations implementing them provide for nondiscrimination based on 
disability and require housing and other facilities to incorporate 
certain features intended to provide for their use and enjoyment by 
persons with disabilities. HUD is encouraging applicants to add 
accessible design features beyond those required under civil rights 
laws and regulations. These features would eliminate many other 
barriers limiting the access of persons with disabilities to housing 
and other facilities. Copies of the Uniform Federal Accessibility 
Standards (UFAS) are available from the NOFA Information Center (800-
HUD-8929 or 800-HUD-2209 (TTY)) and also from the Office of Fair 
Housing and Equal Opportunity, Department of Housing and Urban 
Development, Room 5230, 451 Seventh Street, SW., Washington, DC 20410-
2000, 202-755-5404 or toll-free 800-877-8339 (TTY Federal Information 
Relay Service).
    Accessible design features are intended to promote visitability and 
incorporate features of universal design as described below:
    (1) Visitability in New Construction and Substantial 
Rehabilitation. Applicants are encouraged to incorporate visitability 
standards where feasible in new construction and substantial 
rehabilitation projects. Visitability standards allow a person with 
mobility impairments access into the home, but do not require that all 
features be made accessible. Visitability means that there is at least 
one entrance at grade (no steps) approached by an accessible route such 
as a sidewalk and that the entrance door and all interior passage doors 
are at least 2 feet 10 inches wide, allowing 32 inches of clear passage 
space. A visitable home also serves persons without disabilities, such 
as a mother pushing a stroller or a person delivering a large 
appliance. More information about visitability is available at http://www.concretechange.org.
    Activities support strategic goals b, c, and d.
    (2) Universal Design. Applicants are encouraged to incorporate 
universal design in the construction or rehabilitation of housing, 
retail establishments, and community facilities funded with HUD 
assistance. Universal design is the design of products and environments 
to be usable by all people to the greatest extent possible, without the 
need for adaptation or specialized design. The intent of universal 
design is to simplify life for everyone by making products, 
communications, and the built environment more usable by as many people 
as possible at little or no extra cost. Universal design benefits 
people of all ages and abilities. In addition to any applicable 
required accessibility features under Section 504 of the Rehabilitation 
Act of 1973 or the design and construction requirements of the Fair 
Housing Act, the Department encourages applicants to incorporate the 
principles of universal design when developing housing, community 
facilities, and electronic communication mechanisms or when 
communicating with community residents at public meetings or events.
    HUD believes that by creating housing that is accessible to all, it 
can increase the supply of affordable housing for all, regardless of 
ability or age. Likewise, creating places where people work, train, and 
interact that are useable and open to all residents increases 
opportunities for economic and personal self-sufficiency. More 
information on universal design is available from the Center for 
Universal Design, at http://www.design.ncsu.edu:8120/cud/, or the 
Resource Center on Accessible Housing and Universal Design, at http://www.abledata.com/Site_2/accessib.htm.
    Activities support strategic goals a, b, c, and d.
    d. Providing Full and Equal Access to Grassroots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation.
    (1) HUD encourages nonprofit organizations, including grassroots 
faith-based and other community-based organizations, to participate in 
the vast array of programs for which funding is available through HUD's 
programs. HUD also encourages states, units of local government, 
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and other organizations to partner with grassroots organizations, e.g., 
civic organizations, faith-communities, and grassroots faith-based and 
other community-based organizations, that have not been effectively 
utilized. These grassroots organizations have a strong history of 
providing vital community services, such as assisting the homeless and 
preventing homelessness, counseling individuals and families on fair 
housing rights, providing elderly housing opportunities, developing 
first-time homeownership programs, increasing homeownership and rental 
housing opportunities in neighborhoods of choice, developing affordable 
and accessible housing in neighborhoods across the country, creating 
economic development programs, and supporting the residents of public 
housing facilities. HUD wants to make its programs more effective, 
efficient, and accessible by expanding opportunities for grassroots 
organizations to participate in developing solutions for their own 
neighborhoods. Additionally, HUD encourages applicants to include these 
grassroots faith-based and other community-based organizations in their 
workplans. Potential applicants, their partners, and their participants 
must review the individual FY2004 HUD program announcements to 
determine whether they are eligible to apply for funding directly or 
whether they must establish a working relationship with an eligible 
applicant in order to participate in a HUD funding opportunity. 
Grassroots faith-based and other community-based organizations, and 
applicants who currently or propose to partner, fund, subgrant, or 
subcontract with grassroots organizations (including grassroots faith-
based or other community-based nonprofit organizations eligible under 
applicable program regulations) in conducting their work programs will 
receive higher rating points as specified in rating factor 3 above.
    (2) Definition of Grassroots Organizations:
    (a) HUD will consider an organization a ``grassroots organization'' 
if the organization is headquartered in the local community to which it 
provides services; and,
    (i) Has a social services budget of $300,000 or less, or
    (ii) Has six or fewer full-time equivalent employees.
    (b) Local affiliates of national organizations are not considered 
``grassroots organizations.'' Local affiliates of national 
organizations are encouraged, however, to partner with grassroots 
organizations, and must demonstrate that they are currently working 
with a grassroots organization (e.g., by having a faith community or 
civic organization, or other charitable organization provide 
volunteers).
    (c) The cap provided in paragraph (2)(a)(i) above includes only 
that portion of an organization's budget allocated to providing social 
services. It does not include other portions of the budget such as 
salaries and expenses not directly expended in the provision of social 
services.
    Activities support strategic goal f.
    e. Participation of Minority-Serving Institutions in HUD Programs. 
Pursuant to Executive Orders 13256, ``President's Board of Advisors on 
Historically Black Colleges and Universities,'' 13230, ``President's 
Advisory Commission on Educational Excellence for Hispanic Americans,'' 
13216, ``Increasing Participation of Asian Americans and Pacific 
Islanders in Federal Programs,'' and 13270, ``Tribal Colleges and 
Universities,'' HUD is strongly committed to broadening the 
participation of Minority-Serving Institutions (MSIs) in its programs. 
HUD is interested in increasing the participation of MSIs in order to 
advance the development of human potential, strengthen the nation's 
capacity to provide high quality education, and increase opportunities 
for MSIs to participate and benefit from federal financial assistance 
programs. HUD encourages all applicants and recipients to include 
meaningful participation of MSIs in their work programs. A listing of 
MSIs can be found on the Department of Education Web site at http://www.ed.gov/about/offices/list/ocr/edlite-minorityinst.html or HUD's Web 
site at http://www.hud.gov/grants/index.cfm.
    Activities support strategic goals c and d.
    f. Ending Chronic Homelessness within 10 Years. President Bush has 
set a national goal to end chronic homelessness within 10 years. 
Secretary Alphonso Jackson has embraced this goal and has pledged that 
HUD's grant programs will be used to support the President's goal and 
more adequately meet the needs of chronically homeless individuals. A 
person experiencing chronic homelessness is defined as an unaccompanied 
individual with a disabling condition who has been continuously 
homeless for a year or more or has experienced four or more episodes of 
homelessness over the last three years. Applicants are encouraged to 
target assistance to chronically homeless persons by undertaking 
activities that will result in:
    (1) Creation of affordable group homes or rental housing units;
    (2) Establishment of a set-aside of units of affordable housing for 
the chronically homeless;
    (3) Establishment of substance abuse treatment programs targeted to 
the homeless population;
    (4) Establishment of job training programs that will provide 
opportunities for economic self-sufficiency;
    (5) Establishment of counseling programs that assist homeless 
persons in finding housing, financial management, anger management, and 
building interpersonal relationships;
    (6) Provision of supportive services, such as health care 
assistance that will permit homeless individuals to become productive 
members of society;
    (7) Provision of service coordinators or one-stop assistance 
centers that will ensure that chronically homeless persons have access 
to a variety of social services.
    Applicants who are developing programs to meet the goals set in 
this policy priority should be mindful of the requirements of the 
regulations implementing Section 504 of the Rehabilitation Act of 1973, 
in particular, 24 CFR 8.4(b)(1)(iv), 8.4(c)(1), and 8.4(d).
    Activities support strategic goals b and c.
    g. Removal of Regulatory Barriers to Affordable Housing. HUD is 
seeking input into how it can more effectively work with the public and 
private sectors to remove regulatory barriers to affordable housing. 
The notice addresses how HUD will evaluate the effectiveness of state 
and local government efforts to remove regulatory barriers to 
affordable housing.
    Increasing the affordablity of rental and homeownership housing 
continues to be a high priority of the Department. Over the last 15 
years, there has been increased recognition that unnecessary, 
duplicative, excessive, or discriminatory public processes often 
significantly increase the cost of housing development and 
rehabilitation. Often referred to as ``regulatory barriers to 
affordable housing,'' many public statutes, ordinances, regulatory 
requirements, or processes and procedures significantly impede the 
development or availability of affordable housing without providing a 
commensurate or demonstrable health or safety benefit. ``Affordable 
housing'' is decent quality housing that low-, moderate-, and middle-
income families can afford to buy or rent without spending more than 30 
percent of their income; spending more than 30 percent of income on 
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families to sacrifice other necessities of life.
    Addressing these barriers to housing affordability is a necessary 
component of any overall national housing policy. However, addressing 
such barriers must be viewed as a complement to, not a substitute for, 
other efforts to meet affordable housing needs. For many families, 
federal, state and local subsidies are fundamental tools for meeting 
these affordable needs. In many instances, however, other sometimes 
well-intentioned public policies work at cross-purposes with subsidy 
programs by imposing significant constraints. From zoning that keeps 
out affordable housing, especially multifamily housing, to other 
regulations and requirements that unnecessarily raise the costs of 
construction, the need to address this issue is clear. For example, 
affordable rehabilitation is often constrained by outmoded building 
codes that require excessive renovation. Barrier removal will not only 
make it easier to find and get approval for affordable housing sites, 
but it will also allow available subsidies to go further in meeting 
these needs. For housing for moderate-income families often referred to 
as ``work force'' housing, barrier removal can be the most essential 
component of meeting housing needs.
    Under this policy priority, higher rating points are available to 
(1) governmental applicants that are able to demonstrate successful 
efforts in removing regulatory barriers to affordable housing, and (2) 
nongovernmental applicants that are associated with jurisdictions that 
have undertaken successful efforts in removing barriers. To obtain the 
policy priority points for efforts to successfully remove regulatory 
barriers, applicants must complete form HUD-27300, ``Questionnaire for 
HUD's Initiative on Removal of Regulatory Barriers.'' A copy of HUD's 
Notice entitled ``America's Affordable Communities Initiative, HUD's 
Initiative on Removal of Regulatory Barriers: Announcement of Incentive 
Criteria on Barrier Removal in HUD's FY2004 Competitive Funding 
Allocations'' can be found on HUD's Web site at http://www.hud.gov/grants/index.cfm.
    Local jurisdictions and counties with land use and building 
regulatory authority applying for funding, as well as housing 
authorities, nonprofit organizations, and other qualified applicants 
applying for funding for a project located in these jurisdictions, are 
invited to answer the 20 questions in PART A of form HUD-27300. For 
those applications in which regulating authority is split between 
jurisdictions (e.g., county and town) the applicant should answer the 
question for that jurisdiction that has regulatory authority over the 
issue at question. An applicant that scores at least five in Column 2 
will receive one point in the NOFA evaluation. An applicant that scores 
10 or more in Column 2 will receive two points in the evaluation.
    State agencies or departments applying for funding, as well as 
housing authorities, nonprofit organizations and other qualified 
applicants applying for funds for projects located in unincorporated 
areas or areas otherwise not covered in Part A are invited to answer 
the 15 questions in PART B. Under Part B an applicant that scores at 
least four in Column 2 will receive one point in the NOFA evaluation. 
Under Part B an applicant that scores eight or greater will receive two 
points in the respective evaluation. Applicants that propose to provide 
services in multiple jurisdictions may choose to address the questions 
in either PART A or Part B for that jurisdiction in which the 
preponderance of services will be performed if an award is made. In no 
case will an applicant receive for this policy priority more than two 
points for barrier removal activities. An applicant that is a tribe or 
tribally designated housing entity (TDHE) may choose to complete either 
PART A or PART B based upon a determination by the tribe or TDHE as to 
whether the tribe's or the TDHE's association with the local 
jurisdiction or the state would be more advantageous to its 
application.

    Note: Upon completion of all NOFA evaluations, grant selections, 
and awards, it is HUD's intent to add relevant data obtained from 
this evaluative factor to the database on state and local regulatory 
reform actions maintained at the Regulatory Barrier Clearinghouse 
Web site at http://www.huduser.org/rbc/ used by states, localities, 
and housing providers to identify regulatory barriers and learn of 
exemplary local efforts at regulatory reform.

    Form HUD-27300 can be found in the appendix to this NOFA. A limited 
number of questions on form HUD-27300 expressly request the applicant 
to provide brief documentation with its response. Other questions 
require that for each affirmative statement made, the applicant must 
supply a reference, URL, or brief statement indicating where the back-
up information may be found and a point of contact, including a 
telephone number or e-mail address. Applicants are encouraged to read 
the March 22, 2004, Federal Register notice (69 FR 13450) to obtain a 
more complete understanding of this policy priority and how it can 
impact their score. HUD also will be providing a satellite broadcast on 
this subject as part of its NOFA training. The NOFA webcast schedule 
can be found on HUD's Web site at: http://www.hud.gov/grants/index.cfm.
    Activities support strategic goals a and b.

C. Anticipated Announcement and Award Dates

    June 1, 2004.

VI. Award Administration Information

A. Award Notices

    1. Award Notice. Successful Rural Housing and Economic Development 
program applicants will be notified of grant award and will receive 
post-award instructions by mail.
    2. Applicant Debriefing. For a period of at least 120 days, 
beginning 30 days after the awards for assistance are publicly 
announced, HUD will provide to a requesting applicant a debriefing 
related to its application. All debriefing requests must be made in the 
form of a letter and mailed by the authorized official whose signature 
appears on the SF-424 or his or her successor in office and submitted 
to the person or organization identified as the Contact under the 
section entitled ``VII. Agency Contact(s)'' in this NOFA. Information 
provided during a debriefing will include, at a minimum, the final 
score you received for each rating factor, final evaluator comments for 
each rating factor, and the final assessment indicating the basis upon 
which assistance was provided or denied.
    Any applicant may obtain a debriefing of its application. 
Applicants requesting a debriefing must mail a letter of request to 
Jackie L. Williams, Ph.D., Director, Office of Rural Housing and 
Economic Development, 451 Seventh Street, SW., Room 7137, Washington, 
DC 20410-7000.
    3. Negotiation. After HUD has rated and ranked all applications and 
made selections, HUD may require that a selected applicant participate 
in negotiations to determine the specific terms of the funding 
agreement and budget. In cases where HUD cannot successfully conclude 
negotiations with a selected applicant or a selected applicant fails to 
provide HUD with requested information, an award will not be made to 
that applicant. In such an instance, HUD may offer an award and proceed 
with negotiations with the next highest-ranking applicant.

B. Administrative and National Policy Requirements

    1. Lead-Based Paint Hazard Control. All property assisted under the 
Rural

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Housing and Economic Development program is covered by the Lead-Based 
Paint Poisoning Prevention Act (42 U.S.C. 4821-4846) and HUD's 
implementing regulations at 24 CFR part 35.
    2. Audit Requirements. Any grantee that expends $500,000 or more in 
federal financial assistance in a single year (this can be program year 
or fiscal year) must meet the audit requirements established in 24 CFR 
parts 84 and 85 in accordance with OMB A-133.
    3. Participation in HUD-sponsored Program Evaluation. As a 
condition of receipt of award under this NOFA, you will be required to 
cooperative with HUD staff or contractors performing HUD-funded 
research and evaluation studies relating to the work conducted under 
the award.
    4. Accounting System Requirements. The Rural Housing and Economic 
Development program requires that successful applicants have in place 
an accounting system that meets the policies, guidance, and 
requirements described in the following applicable OMB Circulars and 
Code of Federal Regulations:
    a. OMB Circular A-87 (Cost Principles Applicable to Grants, 
Contracts and Other Agreements with State and Local Governments);
    b. OMB Circular A-122 (Cost Principles for Non-Profit 
Organizations);
    c. OMB Circular A-133 (Audits of States, Local Governments, and 
Non-Profit Organizations);
    d. 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Non-Profit Organizations); and
    e. 24 CFR part 85 (Administrative Requirements for Grants and 
Cooperative Agreements to State, Local, and Federally recognized Indian 
tribal governments).

C. Reporting

    Reporting documents apply to the award, acceptance and use of 
assistance under the Rural Housing and Economic Development program and 
to the remedies for noncompliance, except when inconsistent with the 
provisions of the Consolidated Appropriations Act, 2004, other federal 
statutes, or the provisions of this NOFA.
    For each reporting period, as part of your required report to HUD, 
you must include a completed Logic Model (Form HUD 96010), which 
identifies output and outcome achievements.

VII. Agency Contact(s)

    Further Information and Technical Assistance: For information 
concerning the HUD Rural Housing and Economic Development program, 
contact Ms. Holly A. Kelly, Economic Development Program Specialist, or 
Ms. Linda L. Streets, Community Development Specialist, Office of Rural 
Housing and Economic Development, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Room 7137, Washington, DC 20410-7000; telephone 202-708-
2290 (this is not a toll-free number). Persons with speech or hearing 
impairments may access this number via TTY by calling the toll-free 
Federal Information Relay Service at 800-877-8339.
    Prior to the application deadline, Ms. Kelly or Ms. Streets will be 
available at the number above to provide general guidance and 
clarification of the NOFA, but not guidance in actually preparing your 
application. Following selection, but prior to award, HUD staff will be 
available to assist in clarifying or confirming information that is a 
prerequisite to the offer of an award by HUD.

VIII. Other Information

1. Satellite Broadcast

    HUD will hold an information webcast via satellite for potential 
applicants to learn more about the program and preparation of an 
application. For more information about the date and time of this 
webcast, consult the HUD Web site at http://www.hud.gov.

2. The Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2506-0169. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor and a person is not 
required to respond to a collection of information, unless it displays 
a currently valid OMB control number. Public reporting burden for the 
collection of information is estimated to average 100 hours per annum 
per respondent for the application and grant administration. This 
includes the time for collecting, reviewing and reporting the data for 
the application, semi-annual reports, and final report. The information 
will be used for grantee selection and monitoring the administration of 
funds.

3. Grants.gov and Public Law 106-107 Streamlining Activities

    The Federal Financial Assistance Management Improvement Act of 1999 
(Pub. L. 106-107) directs each federal agency to develop and implement 
a plan that, among other things, streamlines and simplifies the 
application, administrative, and reporting procedures for federal 
financial assistance programs administered by the agency. This law also 
requires the Director of the Office of Management and Budget (OMB) to 
direct, coordinate, and assist federal agencies in establishing (1) a 
common application and reporting system, and (2) an interagency process 
for addressing ways to streamline and simplify federal financial 
assistance application and administrative procedures and reporting 
requirements for program applicants.
    HUD is working with the 26 federal grant-making agencies on 
President George W. Bush's Grants.gov ``FIND and APPLY'' Initiative. 
This initiative is an effort by federal agencies to develop a common 
electronic application and reporting system for federal financial 
assistance. This system will provide ``one-stop shopping'' for funding 
opportunities for all federal programs. This system is being developed 
in response to public and government concerns that it is difficult for 
organizations to know all the funding available from the federal 
government and how to apply for funding. It also is an effort by the 
federal government to develop common application requirements and 
further streamlining the application process, making it easier for you, 
HUD's customers, to apply for funding.
    The first segment of the initiative focuses on allowing the public 
to easily FIND funding opportunities and then APPLY via Grants.gov. 
Funding decisions will still be under the control of the federal agency 
sponsoring the program funding opportunity. In FY2004, HUD is posting 
all of its funding notices on http://www.Grants.gov/FIND with links to 
HUD's Web site for copies of the NOFA sections and fillable forms which 
applicants can download and complete for submission of paper copy 
applications. During FY2004 HUD applicants will be able to continue to 
submit paper copies of their application to HUD for funding 
consideration and, in fact, the paper copy will be the official copy to 
submit to the Department. To find out more about Grants.gov, please go 
to its Web site and look at the Tutorials and Getting Started 
information. It is HUD's intent to move to a fully electronic 
application system in FY2005, so an early test of this feature would 
benefit both the applicant community and HUD.

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4. Executive Orders and Congressional Intent

    a. Executive Order 13132, Federalism. Executive Order 13132 
prohibits, to the extent practicable and permitted by law, an agency 
from promulgating policies that have federalism implications and either 
impose substantial direct compliance costs on state and local 
governments and are not required by statute, or preempt state law, 
unless the relevant requirements of section 6 of the executive order 
are met. This 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.
    b. Sense of Congress. It is the sense of Congress, as published in 
Division G of the Consolidated Appropriations Act, 2004 (Public Law 
108-199, approved January 23, 2004) that, to the greatest extent 
practicable, all equipment and products purchased with funds made 
available in the Consolidated Appropriations Act, 2004, should be 
American-made.

5. Public Access, Documentation, and Disclosure

    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:
    a. Documentation, public access, and disclosure requirements. HUD 
will ensure that documentation and other information regarding each 
application submitted pursuant to this NOFA are sufficient to indicate 
the basis upon which assistance was provided or denied. This material, 
including any letters of support, will be made available for public 
inspection for a five-year period beginning not less than 30 days after 
the award of the assistance. Material will be made available in 
accordance with the Freedom of Information Act (5 U.S.C. 552) and HUD's 
implementing regulations (24 CFR part 15).
    b. Form HUD-2880. HUD will also make available to the public for 
five years all applicant disclosure reports (Form HUD-2880) submitted 
in connection with this NOFA. Update reports (also reported on Form 
HUD-2880) will be made available along with the applicant disclosure 
reports, but in no case for a period of less than three years. All 
reports, both applicant disclosures and updates, will be made available 
in accordance with the Freedom of Information Act (5 U.S.C. 552) and 
HUD's implementing regulations (24 CFR part 5).
    c. Publication of Recipients of HUD Funding. HUD's regulations at 
24 CFR part 4 provide that HUD will publish a notice in the Federal 
Register to notify the public of all decisions made by the Department 
to provide:
    (1) Assistance subject to Section 102(a) of the HUD Reform Act; and
    (2) Assistance provided through grants or cooperative agreements on 
a discretionary (non-formula, non-demand) basis, but that is not 
provided on the basis of a competition.

6. 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 at 24 CFR 4.26(c) and 4.28, apply to this funding competition. 
The regulations continue to apply until the announcement of the 
selection of successful applicants. HUD employees involved in the 
review of applications and in the making of funding decisions are 
prohibited by the regulations from providing advance information to any 
person (other than an authorized employee of HUD) concerning funding 
decisions or otherwise giving any applicant an unfair competitive 
advantage. Persons who apply for assistance should confine their 
inquiries to the subject areas permitted under 24 CFR part 4.
    Applicants or employees who have ethics-related questions should 
contact HUD's Ethics Law Division at 202-708-3815. (This is not a toll-
free number.) The TTY number for persons with hearing or speech 
impairment is 800-877-8339. HUD employees who have specific program 
questions should contact the appropriate field office counsel or 
Headquarters counsel for the Rural Housing and Economic Development 
program.

7. The FY2004 HUD NOFA Process and Future HUD Funding Processes

    Each year, HUD strives to improve its NOFA process. The FY2004 
NOFAs have been revised based upon comments received during the FY2003 
funding process. HUD continues to welcome comments and feedback from 
applicants and other members of the public on how HUD may further 
improve its competitive funding process. In FY2004, as part of Public 
Law 106-107 streamlining efforts and the interagency eGrants 
Initiative, HUD is making considerable changes to the format and 
presentation of its funding notices. HUD is continually striving to 
ensure effective communication with our program funding recipients and 
potential funding recipients. HUD has been posting pertinent documents 
related to these efforts on its Web site. HUD encourages you to visit 
our Web site on an ongoing basis to keep abreast of the latest 
developments. The Web site address for information on the Grants.gov 
Initiative is http://www.hud.gov/offices/adm/grants/egrants/egrants.cfm. Information on Grant streamlining activities can be found 
at http://www.hud.gov/offices/adm/grants/pl-106107/pl106-107.cfm.

    Dated: April 19, 2004.
Roy A. Bernardi,
Assistant Secretary for Community Planning and Development.

    The Appendix of Forms for the Rural Housing and Economic 
Development NOFA follows:
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[FR Doc. 04-9276 Filed 4-20-04; 3:46 pm]
BILLING CODE 4210-29-C