[Federal Register Volume 69, Number 159 (Friday, October 8, 2004)]
[Notices]
[Pages 60478-60531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-22576]



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Part II





Department of Housing and Urban Development





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Notice of Funding Availability for the Community Development Block 
Grant Program for Indian Tribes and Alaska Native Villages; Fiscal Year 
2004; Notice

  Federal Register / Vol. 69, No. 195 / Friday, October 8, 2004 / 
Notices  

[[Page 60478]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4894-N-01]


Notice of Funding Availability for the Community Development 
Block Grant Program for Indian Tribes and Alaska Native Villages; 
Fiscal Year 2004

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

ACTION: Notice of funding availability (NOFA).

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Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of the Assistant Secretary for Public and Indian 
Housing, Office of Native American Programs.
    B. Funding Opportunity Title: Community Development Block Grant 
(ICDBG) Program for Indian Tribes and Alaska Native Villages.
    C. Announcement Type: Initial Announcement.
    D. Funding Opportunity Number: The Federal Register number for this 
NOFA is FR-4894-N-01. The OMB approval number for this program is 2577-
0191.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): The 
Catalog of Federal Assistance (CFDA) Number for the Indian Community 
Development Block Grant Program is 14.862.
    F. Dates: Application Deadline: The application due date is 
December 13, 2004.
    G. Optional, Additional Overview Content Information:
    1. Applicants for funding should carefully review the requirements 
identified in this NOFA. There is no separate application kit for this 
program in FY2004.
    2. The total approximate amount of funding available for the ICDBG 
Program for FY2004 is $71,575,200 plus FY2003 carry-over of $2,140,538 
for a total (approximately) of $73,715,738. Funds that are recaptured 
may also be used for grant awards under this NOFA.
    3. Eligible applicants are Indian tribes or tribal organizations on 
behalf of Indian tribes. Specific information on eligibility is located 
in section III.A. of this NOFA.

Full Text of Announcement

I. Funding Opportunity Description

    A. General: Title I of the Housing and Community Development Act of 
1974, which authorizes Community Development Block Grants, requires 
that grants for Indian tribes be awarded on a competitive basis in 
accordance with selection criteria contained in a regulation 
promulgated by the Secretary after notice and public comment. All grant 
funds awarded in accordance with this NOFA are subject to the 
requirements of 24 CFR part 1003. Applicants within an Area ONAP 
geographic jurisdiction compete only against each other for that Area 
ONAP allocation of funds.
    B. Program Description: The purpose of the ICDBG Program is the 
development of viable Indian and Alaska Native communities, including 
the creation of decent housing, suitable living environments, and 
economic opportunities primarily for persons with low- and moderate-
incomes as defined in 24 CFR 1003.4. The Office of Native American 
Programs (ONAP) in HUD's Office of Public and Indian Housing 
administers the program.
    All federally recognized Indian Tribes and Alaska Native Villages 
are eligible to participate in the ICDBG Program. Tribal organizations, 
as described in 24 CFR 1003.5, are also eligible applicants. Projects 
funded by the ICDBG Program must meet the primary objective, defined at 
24 CFR 1003.2, to principally benefit low- and moderate-income persons. 
Consistent with this objective, not less than 70 percent of the 
expenditures of each single-purpose grant shall be for activities which 
meet the regulatory criteria at 24 CFR 1003.208 for:
    1. Area Benefit Activities
    2. Limited Clientele Activities
    3. Housing Activities
    4. Job Creation or Retention Activities
    ICDBG funds may be used to improve housing stock, provide community 
facilities, improve infrastructure, and expand job opportunities by 
supporting the economic development of the communities, especially by 
nonprofit tribal organizations or local development corporations. ICDBG 
single-purpose grants are distributed as annual competitive grants, in 
response to this NOFA. Additional information on eligible activities 
can be found in section III.
    C. Definitions Used in This NOFA:
    1. Adopt. To approve by formal tribal resolution.
    2. Assure. As an applicant, you must state your compliance, or in 
the case of future actions, your intent to comply with a specific NOFA 
requirement.
    3. Document. To supply supporting written information and data in 
the application that satisfies the NOFA requirement. Documentation 
should clearly and concisely support your response to the rating 
factor.
    4. Entity Other Than Tribe. A distinction is made between the 
requirements for point award under Rating Factor 3 if a tribe or an 
entity other than the tribe will assume maintenance and related 
responsibilities for projects other than economic development and land 
acquisition to support new housing. Entities other than the tribe must 
have the following characteristics:
    (a) Must be legally distinct from the tribal government; (b) their 
assets and liabilities cannot be considered to be assets and 
liabilities of the tribal government; (c) claims against such entities 
cannot be made against the tribal government; and (d) must have 
governing boards, boards of directors, or groups or individuals similar 
in function and responsibility to such boards which are separate from 
the tribe's general council, tribal council, or business council, as 
applicable.
    5. Homeownership Assistance Programs. Tribes may apply for 
assistance to provide direct homeownership assistance to low- and 
moderate-income households to: (a) Subsidize interest rates and 
mortgage principal amounts for low- and moderate-income homebuyers; (b) 
finance the acquisition by low- and moderate-income homebuyers of 
housing that is occupied by the homebuyers; (c) acquire guarantees for 
mortgage financing obtained by low- and moderate-income homebuyers from 
private lenders (except that ICDBG funds may not be used to guarantee 
such mortgage financing directly, and grantees may not provide such 
guarantees directly); (d) provide up to 50 percent of any downpayment 
required from a low- and moderate-income homebuyer; or (e) pay 
reasonable closing costs (normally associated with the purchase of a 
home) incurred by a low-or moderate-income homebuyer.
    6. Leveraged Resources. Leveraged resources are resources that you 
will use in conjunction with ICDBG funds to achieve the objectives of 
the project. Leveraged resources include, but are not limited to: 
Tribal trust funds; loans from individuals or organizations; business 
investments; private foundations; State or Federal loans or guarantees; 
other grants; and non-cash contributions and donated services. (See 
Rating Factor 4 of this NOFA for documentation requirements for point 
award for leveraged resources.)
    7. Microenterprise Programs. Tribes may apply for assistance to 
operate programs to fund the development, expansion, and stabilization 
of microenterprises. Microenterprises are defined as commercial 
entities with five or fewer employees, including the

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owner. Microenterprise program activities may entail the following 
assistance to eligible businesses: (a) Providing credit, including, but 
not limited to, grants, loans, loan guarantees, and other forms of 
financial support for the establishment, stabilization, and expansion 
of microenterprises; (b) providing technical assistance, advice, and 
business support services to owners of microenterprises and persons 
developing microenterprises; and (c) providing general support, 
including, but not limited to, peer support programs, counseling, child 
care, transportation, and other similar services to owners of 
microenterprises and persons developing microenterprises.
    8. Operations and Maintenance (O&M) for Public Facilities and 
Improvements. While various items of cost will vary in importance and 
significance depending on the type of facility proposed, there are 
items of expense related to the operation of the physical plant which 
must be addressed in an O&M plan (tribe assumes responsibility) or in a 
letter of commitment (entity other than tribe will assume these 
responsibilities). These items include daily or other periodic 
maintenance activities; repairs such as replacing broken windows; 
capital improvements or replacement reserves for repairs such as 
replacing the roof; fire and liability insurance (may not be applicable 
to most types of infrastructure projects such as water and sewer 
lines); and security (may not be applicable to many types of 
infrastructure projects such as roads). Please note that while it is 
possible that the service provider may, in its agreement with a tribe, 
commit itself to cover certain or all facility O&M costs, as defined, 
these O&M costs do not include the program service provision costs 
related to the delivery of services (social, health, recreational, 
educational or other) which may be provided in a facility.
    9. Outcomes. The ultimate impact you hope to achieve with the 
proposed project. Outcomes should be quantifiable measures or 
indicators and identified in terms of the change in the community, 
lives, economic status, etc. Common outcomes could include increases in 
percent of housing units in standard condition, rates of homeownership, 
or rates of employment.
    10. Outputs. Outputs are the direct products of a program's 
activities. They are usually measured in terms of the volume of work 
accomplished, such as number of low-income households served, number of 
units constructed or rehabilitated, linear feet of curbs and gutters 
installed, or numbers of jobs created or retained. Outputs should be 
clear enough to allow HUD to monitor and assess your proposed project's 
progress if funded.
    11. Project Cost. The total cost to implement the project. Project 
cost includes both ICDBG and non-ICDBG funds and resources.
    12. Standard Housing/Standard Condition. Housing that meets the 
housing quality standards (HQS) adopted by the applicant. The HQS 
adopted by the applicant must be at least as stringent as the Section 8 
HQS contained in 24 CFR 982.401 (Section 8 Tenant-Based Assistance: 
Housing Choice Voucher Program) unless the ONAPs approve less stringent 
standards based on a determination that local conditions make the use 
of Section 8 HQS infeasible. You may submit, before the application due 
date, a request for the approval of standards less stringent than 
section 8 HQS. If you submit the request with your application, you 
should not assume automatic approval by the ONAPs. The adopted 
standards must provide for (a) a safe house, in physically sound 
condition with all systems performing their intended design functions; 
(b) a livable home environment and an energy efficient building and 
systems that incorporate energy conservation measures; and (c) an 
adequate space and privacy for all intended household members.
    13. Tribe. Please note: when used in this NOFA the word ``tribe'' 
means an Indian tribe, band, group or nation, including Alaska Indians, 
Aleuts, Eskimos, Alaska Native Villages, ANCSA Village Corporations, 
and ANCSA Regional Corporations.

II. Award Information

    A. Available Funds: The FY2004 appropriation for the ICDBG Program 
is $71,575,200. In addition, an FY2003 ICDBG carry-over of $2,140,538 
is available for distribution for a total of $73,715,738. Funds that 
are recaptured may also be used for grant awards under this NOFA.
    B. Allocations to Area ONAPs: The requirements for allocating funds 
to Area ONAPs responsible for program administration are found at 24 
CFR 1003.101. Following these requirements, based on an appropriation 
of $71,575,200 and FY2003 ICDBG carry-over of $2,140,538, the 
allocations for FY2004 are approximately as follows:

Eastern/Woodland.......................................      $ 8,279,282
Southern Plains........................................       15,894,094
Northern Plains........................................       10,455,318
Southwest..............................................       27,766,597
Northwest..............................................        3,603,106
Alaska.................................................        7,717,341
                                                        ----------------
  Total................................................      $73,715,738
 


III. Eligibility Information

    A. Eligible Applicants: Eligible applicants are Indian tribes or 
tribal organizations on behalf of Indian tribes. To apply for funding 
you must be eligible as an Indian tribe (or as a tribal organization), 
as required by 24 CFR 1003.5, by the application submission date.
    Tribal organizations are permitted to submit applications under 24 
CFR 1003.5(b) on behalf of eligible tribes when one or more eligible 
tribe(s) authorize the organization to do so under concurring 
resolutions. As is stated in this regulatory section, the tribal 
organization must itself be eligible under Title I of the Indian Self-
Determination and Education Assistance Act. The Bureau of Indian 
Affairs (BIA) or the Indian Health Service, as appropriate, must make a 
determination of such eligibility. This determination must be provided 
to the Area ONAP by the application submission date.
    If a tribe or tribal organization claims that it is a successor to 
an eligible entity, the Area ONAP must review the documentation to 
determine whether it is in fact the successor entity.
    Due to the unique structure of tribal entities eligible to submit 
ICDBG applications in Alaska, and as only one ICDBG application may be 
submitted for each area within the jurisdiction of an entity eligible 
under 24 CFR 1003.5, a tribal organization that submits an application 
for activities in the jurisdiction of one or more eligible tribes or 
villages must include a concurring resolution from each such tribe or 
village authorizing the submittal of the application. Each such 
resolution must also indicate that the tribe or village does not itself 
intend to submit an ICDBG application for that funding round. The 
hierarchy for funding priority continues to be the IRA Council, the 
Traditional Village Council, the ANCSA Village Corporation, and the 
ANCSA Regional Corporation.
    On December 5, 2003 (68 FR 68180), the BIA published a Federal 
Register notice entitled, ``Indian Entities Recognized and Eligible to 
Receive Services From the United States Bureau of Indian Affairs.'' 
This notice provides a listing of Indian Tribal Entities in Alaska 
found to be Indian tribes as the term is defined and used in 25 CFR 
part 83. Additionally, pursuant to Title I of the Indian Self-
Determination and

[[Page 60480]]

Education Assistance Act, ANCSA Village Corporations and Regional 
Corporations are also considered tribes and therefore eligible 
applicants for the ICDBG program.
    Any questions regarding eligibility determinations and related 
documentation requirements for entities in Alaska should be referred to 
the Alaska Area ONAP prior to the application submission date. (See 24 
CFR 1003.5 for a complete description of eligible applicants.)
    B. Cost Sharing or Matching: Cost sharing or matching is not 
required under this grant; however, applicants who leverage this grant 
with other funds receive points. See section V, (A)(2) Rating Factor 4.
    C. Other:
    1. Program and Project Specific Requirements:
    a. Low- and Moderate-Income Status for Rehabilitation Projects. All 
households that receive grant assistance under a housing rehabilitation 
project must be of low- and moderate-income status.
    b. Housing Rehabilitation Cost Limits. Grant funds spent on 
rehabilitation per house must fall within the following limits for each 
Area ONAP jurisdiction:

Eastern/Woodlands.......................................         $35,000
Southern Plains.........................................          30,000
Northern Plains.........................................          45,000
Southwest...............................................          40,000
Northwest...............................................          40,000
Alaska..................................................          55,000
 

    c. Commitment to Housing for Land Acquisition to Support New 
Housing Projects. For land acquisition to support new housing projects, 
your application must include evidence of a financial commitment and an 
ability to construct at least 25 percent of the housing units to be 
built on the land proposed for acquisition. This evidence must consist 
of one (or more) of the following: a firm or conditional commitment to 
construct (or to finance the construction of) the units; documentation 
that an approvable application for the construction of these units has 
been submitted to a funding source or entity; or, documentation that 
these units are specifically identified in the Indian Housing Plan 
(IHP) (one-Year Financial Resources Narrative; Table 2, Financial 
Resources, Part I., Line 1E; and Table 2, Financial Resources, Part II) 
submitted by or on behalf of the applicant as an affordable housing 
resource with a commensurate commitment of Indian Housing Block Grant 
(IHBG) (also known as the Native American Housing Block Grant) (NAHBG) 
resources. If the IHP for the IHBG (also known as NAHBG) program year 
that coincides with the implementation of the ICDBG-proposed project 
has not been submitted, you must provide an assurance that when 
submitted, the IHP will specifically reference the proposed project.
    d. Health Care Facilities. If you propose a facility that would 
provide health care services funded by the Indian Health Service (IHS), 
you must assure that the facility meets all applicable IHS facility 
requirements. We recognize that tribes that are contracting services 
from the IHS may establish other facility standards. These tribes must 
assure that these standards are at least comparable to nationally 
accepted minimum standards.
    2. Application Screening: The Area ONAP will screen applications 
for single-purpose grants. The Area ONAP will reject an application 
that fails this screening and will return it unrated. The Area ONAP 
will accept your application if it meets all the criteria listed below 
in items a through f.
    a. Your application is received or submitted in accordance with the 
requirements set forth under Application and Submission Procedures in 
section IV of this NOFA;
    b. You are eligible;
    c. The proposed project is eligible;
    d. Your application contains substantially all the components 
specified in section IV. B. of this NOFA;
    e. Your application shows that at least 70 percent of the grant 
funds are to be used for activities that benefit low- and moderate-
income persons, in accordance with the requirements of 24 CFR 1003.208. 
For screening purposes only, HUD will use the 2000 Census data if the 
data you submitted does not meet this screening requirement; and
    f. Your application is for an amount that does not exceed the grant 
ceilings listed in section IV.E.3.
    3. Name Check Review: Applicants are subject to a name check review 
process. Name checks are intended to reveal matters that significantly 
reflect on the applicant's management and financial integrity, or if 
any key individuals have been convicted or are presently facing 
criminal charges. If the name check reveals significant adverse 
findings that reflect on the business integrity or responsibility of 
the recipient and key individual, HUD reserves the right to: (a) 
Require the removal of any key individual from association with 
management of and implementation of the award; and (b) make appropriate 
provisions or revisions with respect to the method of payment and 
financial reporting requirements.
    4. Delinquent Federal Debt: Consistent with the purpose and intent 
of 31 U.S.C. 3720B and 28 U.S.C. 3201(e), no award of federal funds 
shall be made to an applicant who has an outstanding delinquent federal 
debt until: (a) The delinquent account is paid in full; (b) a 
negotiated repayment schedule is established; or (c) other arrangements 
satisfactory to the Department of Housing and Urban Development are 
made prior to the deadline submission date.
    5. False Statements: False statements in an application are grounds 
for denial or termination of an award and grounds for possible 
punishment as provided in 18 U.S.C. 1001.
    6. DUN and Bradstreet Universal Numbering System (DUNS) Number 
Requirement: Beginning in Federal Fiscal Year 2004, any applicant 
seeking funding directly from HUD, or other Federal agencies, must 
obtain a DUNS number and include it in their SF424 Application for 
Federal Assistance submission. Failure to provide a DUNS number will 
prevent you from obtaining an award. This policy is pursuant to OMB 
Policy issued in the Federal Register on June 27, 2003 (68 FR 38402, 
June 27, 2003). 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 to the application. If the DUNS number is not 
provided within the cure period (see section V.B.9.a.), the application 
will not be funded.
    Organizations can receive a DUNS number at no cost by calling the 
dedicated toll-free DUNS number request line at 866-705-5711 or 
applying online at http://www.dunandbradstreet.com. Persons with speech 
or hearing impairments may access the above telephone number via TTY by 
calling the Federal Information Relay Service at (800) 877-8339. For 
faster service, HUD recommends using the telephone request line to 
obtain the DUNS number.
    7. Accessible Technology: The Rehabilitation Act Amendments of 1998 
apply to all electronic information technology (EIT) used by a grantee 
for transmitting, receiving, using, or storing information to carry out 
the responsibilities of any Federal grant awarded. The Act's coverage 
includes, but is not limited to, computers (hardware, software, word-
processing, e-mail, and Web pages), facsimile machines, copiers, and 
telephones. When developing, procuring, maintaining, or using EIT, 
funding recipients must ensure that the EIT

[[Page 60481]]

allows employees with disabilities and members of the public with 
disabilities to have access to and use of information and data that is 
comparable to the access and use of information and data by employees 
and members of the public who do not have disabilities. If these 
standards impose a hardship on a funding recipient, they may provide an 
alternative means to allow the individual to use the information and 
data. However, no grantee will be required to provide information 
services to a person with disabilities at any location other than one 
at which the information services is generally provided.
    8. Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses: HUD is committed 
to ensuring that small businesses, small disadvantaged businesses, and 
women-owned businesses participate fully in HUD's direct contracting 
and in contracting opportunities generated by HUD grant funds. Too 
often, these businesses still experience difficulty in 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 sub-grantees) by 24 
CFR 84.44(b), to take all necessary affirmative steps in contracting 
for purchase of goods or services to assure that minority firms, 
women's business enterprises, and labor surplus area firms are used 
when possible.
    9. Salary Limitation for Consultants: FY2004 funds may not be used 
to pay or to provide reimbursement for payment of the salary of a 
consultant at more than the daily equivalent of the rate paid for level 
IV of the Executive Schedule, unless specifically authorized by law.
    10. Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Toward Government Contractors' Labor Relations on 
Federal and Federally Funded Construction Projects: Compliance with HUD 
regulations in 24 CFR 5.108, which implements E.O. 13202, is a 
condition of receipt of assistance under this NOFA.
    11. Executive Order 13279, Equal Protection of the Laws for Faith-
Based and Community Organizations: HUD is committed to full 
implementation of Executive Order 13279 and has undertaken a review of 
all policies and regulations that have implications for faith-based and 
community organizations. Also, it has established a policy priority to 
provide full and equal access to grassroots faith-based and other 
community-based organizations in HUD program implementation. Applicants 
are urged to complete and return the ``Survey Ensuring Equal 
Opportunity for Applicants,'' included with other standard forms in 
appendix B. Your participation in the survey will help HUD measure its 
success providing equal access to its programs for all applicants.
    12. 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 interpretative 
services in languages other than English that are common in significant 
numbers in the community, in accordance with HUD LEP guidance published 
at 68 FR 70967-70980 on December 19, 2003 (http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2003/pdf/03-31267.pdf). Further guidance may be found at the LEP Web 
site at http://www.lep.gov.
    13. Conducting Business in Accordance With Core Values and Ethical 
Standards: Entities subject to 24 CFR part 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 section 85.36(b)(3)). Consistent with regulations 
governing specific programs, your code of conduct must: Prohibit real 
and apparent conflicts of interest that may arise among officers, 
employees, or agents; prohibit the solicitation and acceptance of gifts 
or gratuities by your officers, employees, and agents for their 
personal benefit in excess of minimal value; and outline administrative 
and disciplinary actions available to remedy violations of such 
standards. If awarded assistance under this NOFA, you will be required, 
prior to entering into an agreement with HUD, to submit a copy of your 
code of conduct and describe 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.
    14. Pre-Award Accounting System Surveys: HUD may arrange for a pre-
award survey of the applicant's financial management system in cases 
where the recommended applicant has no prior federal support, the 
program area has reason to question whether the applicant's financial 
management system meets Federal financial management standards, or the 
applicant is considered a high risk based upon past performance or 
financial management findings. HUD will not make an award to any 
applicant who does not have a financial management system that meets 
federal standards.

IV. Application and Submission Information

    A. Addresses to Request Application Package: All required 
information and application forms are contained in this NOFA. A 
separate application kit is not available this year. In response to 
concerns about how long it takes for the publication and dissemination 
of application kits, HUD has made an effort to improve the readability 
of the NOFA and publish all required forms and application submission 
information in the Federal Register. As a result of this effort, you 
will not have to wait for an application kit to begin to prepare your 
application for funding.
    A copy of the published NOFA and application forms for the ICDBG 
Program may be downloaded from the grants.gov Web site at http://www.grants.gov, ONAP's Web site at http://www.codetalk.fed.us/HUD_ONAP.html, or you may call HUD's NOFA Information Center at 800-HUD-
8929 or for the hearing impaired, call 800-HUD-2209.
    B. Content and Form of Application Submission:
    1. Application Information: To expedite the review of your 
application and ensure that your application is given a thorough and 
complete review of all responses to each of the components of the 
selection criteria, please indicate, on the first page of each project 
submission, the type of project(s) being proposed: Economic 
Development, Homeownership Assistance, Housing Rehabilitation, Land 
Acquisition to Support New Housing, Microenterprise Programs, New 
Housing Construction, or Public Facilities and Improvements. This will 
help to ensure that the appropriate project-specific thresholds and 
rating subfactors will be applied.
    In addition, please use separate tabs for each rating factor and 
rating subfactor. In order to be rated, make sure the response is 
beneath the appropriate heading. Keep the responses in the same order 
as the NOFA. Limit your narrative explanations to 200 words or less and 
provide the necessary

[[Page 60482]]

data such as a market analysis, a pro forma, housing survey data, etc., 
that support the response. Include all relevant material to a response 
under the same tab. Only include documentation that will clearly and 
concisely support your response to the rating criteria.
    HUD suggests that you do a preliminary rating for your project, 
providing a score according to the NOFA point system. This will show 
you how reviewers might score your project. Also, it will show you 
where the strengths and weaknesses of the application are located. This 
will help you determine where improvements can be made to your 
application prior to its submission.
    The published Federal Register document is the official document 
that HUD uses to evaluate applications. Therefore, if there is a 
discrepancy between any materials published by HUD in hard copy or on 
www.grants.gov, or on any HUD Web site, and the Federal Register 
publication of the NOFA, the information published in the NOFA Federal 
Register publication (including any corrections published in the 
Federal Register) prevails.
    2. Content of Application, Forms, Certifications, and Assurances: 
The applicant must respond in narrative form to all five of the rating 
factors listed in section V.A.2. of this NOFA. In addition, the 
applicant must submit all of the forms required in this section of the 
NOFA, along with other data listed below.
    a. Demographic data. You may submit data that are unpublished and 
not generally available in order to meet the requirements of this 
section. Your application must contain a statement that the following 
criteria have been met:
    (1) Generally available published data are substantially inaccurate 
or incomplete;
    (2) Data that you submit have been collected systematically and are 
statistically reliable;
    (3) Data are, to the greatest extent feasible, independently 
verifiable; and
    (4) Data differentiate between reservation and BIA service area 
populations, when applicable.
    b. Publication of Community Development Statement. You must prepare 
and publish or post the community development statement portion of your 
application according to the citizen participation requirements of 24 
CFR 1003.604.
    c. Application Submission. Your application must contain the items 
listed below.
    (1) Application for Federal Assistance (SF-424);
    (2) Applicant/Recipient Disclosure/Update Report (HUD-2880);
    (3) Acknowledgement of Application Receipt (HUD-2993).
    If the application has been submitted by a tribal organization as 
defined in 24 CFR 1003.5(b), on behalf of an Indian tribe, you must 
submit concurring resolutions from the Indian tribe stating that the 
tribal organization is applying on the tribe's behalf.
    The other required items are as follows:
    (4) Community Development Statement that includes:
    (a) Components that address the general threshold requirement and 
the relevant project-specific thresholds and rating factors;
    (b) A schedule for implementing the project (Form HUD-4125, 
Implementation Schedule); and
    (c) Cost information for each separate project, including specific 
activity costs, administration, planning, technical assistance, and 
total HUD share (Form HUD-4123, Cost Summary).
    (5) Certifications (Form HUD-4126);
    (6) A map showing project location, if appropriate;
    (7) If the proposed project will result in displacement or 
temporary relocation, a statement that identifies:
    (a) The number of persons (families, individuals, businesses, and 
nonprofit organizations) occupying the property on the date of the 
submission of the application (or date of initial site control, if 
later);
    (b) The number to be displaced or temporarily relocated;
    (c) The estimated cost of relocation payments and other services;
    (d) The source of funds for relocation; and
    (e) The organization that will carry out the relocation activities;
    (8) If applicable, evidence of the disclosure required by 24 CFR 
1003.606(e) regarding conflict of interest.
    (9) If applicable, the demographic data statement described in 
section IV.B.2.a. and section V.A.2., Rating Factor 2 of this NOFA. The 
data accompanying the statement must identify the total number of 
persons benefiting from the project and the total number of low- and 
moderate-income persons benefiting from the project. To be considered, 
supporting documentation must include all of the following: A sample 
copy of a completed survey form; an explanation of the methods used to 
collect the data; and a listing of incomes by household.
    (10) Optional submissions are:
    (a) Client Comments and Suggestions (HUD-2994);
    (b) Logic Model, HUD-96010;
    (c) SF 424, Supplemental Survey on Ensuring Equal Opportunity for 
Applicants.
    Copies of all application forms listed in this section are provided 
in appendix B of this NOFA.
    C. Submission Dates and Times:
    1. Application Due Date. Your completed application (one original 
and two copies) must be postmarked on or before 12 midnight, and be 
received by the designated Area Office of Native American Programs 
(ONAP) on or within 15 days of the application due date. HUD will not 
accept any applications sent electronically or by facsimile.
    D. Intergovernmental Review: Executive Order 12372, 
Intergovernmental Review of Federal Programs, was issued to foster 
intergovernmental partnership and strengthen federalism by relying on 
State and local processes for the coordination and review of Federal 
financial assistance and direct Federal development. HUD implementing 
regulations are published in 24 CFR part 52. The Order allows each 
state to designate an entity to perform a state review function. The 
official listing of State Points of Contact (SPOC) for this review 
process can be found at http://www.whitehouse.gov/omb/grants/spoc.html. 
Please note that Indian tribes are not subject to the intergovernmental 
review process.
    E. Funding Restrictions:
    1. Ineligible Activities: In general, any activity that is not 
authorized under the provisions of 24 CFR 1003.201-1003.206 is 
ineligible to be assisted with ICDBG grant funds. The regulations at 24 
CFR 1003.207 govern ineligible activities and should be referred to for 
details. The following guidance is provided in determining the 
eligibility of other activities frequently associated with ICDBG 
projects.
    a. Government Office Space. Buildings, or portions thereof, used 
predominantly for the general conduct of government, cannot be assisted 
with ICDBG funds. Those buildings include, but are not limited to, 
local government office buildings, courthouses, and other headquarters 
of government where the governing body meets regularly. Buildings that 
contain both governmental and nongovernmental services can be assisted 
as long as the ICDBG funds are used only for the nongovernmental 
sections. Examples of ineligible buildings are a building to house the 
community development division or a tribal administration

[[Page 60483]]

building. Your Area ONAP office should be consulted for projects of 
this nature.
    b. General Government Expenses. Except as authorized in the 
regulations or under OMB Circular A-87, expenses required to carry out 
the regular responsibilities of the unit of general local government 
are not eligible for assistance with ICDBG funds.
    c. Maintenance and Operation Expenses. In general, any expenses 
associated with repairing, operating, or maintaining public facilities 
and services are not eligible for assistance. Specific exceptions to 
this general rule are operating and maintenance expenses associated 
with public service activities [24 CFR 1003.201(e)], office space for 
program staff employed in carrying out the ICDBG program [24 CFR 
1003.206(a)(4)], and interim assistance [24 CFR 1003.201(f)]. For 
example, where a public service is being assisted with CDBG funds, the 
cost of operating and maintaining that portion of the facility in which 
the service is located is eligible as part of the public service. 
Examples of ineligible operating and maintenance expenses are routine 
and non-routine maintenance and repair of streets, parks, playgrounds, 
water and sewer facilities, neighborhood facilities, senior centers, 
centers for persons with disabilities, parking facilities, similar 
public facilities, payment of salaries for staff, utility costs, and 
similar expenses necessary for the operation of public works and 
facilities.
    d. New Housing Construction. The construction of new permanent 
residential structures and any program to subsidize or finance such new 
construction is ineligible unless carried out by a Community-Based 
Development Organization (CBDO) pursuant to 24 CFR 1003.204(a).
    e. Furnishings and Personal Property. In general, the purchase of 
equipment, fixtures, motor vehicles, furnishings, or other personal 
property that is not an integral structural fixture is ineligible. 
Exceptions include when such purchases are necessary for use in grant 
administration (24 CFR 1003.206); necessary and appropriate for use in 
a project carried out by a CBDO (24 CFR 1003.204); used in providing a 
public service (24 CFR 1003.201(e)); or used as firefighting equipment 
(24 CFR 1003.201(c)(1)(ii). However, ICDBG funds may be used to pay 
depreciation or use allowances (in accordance with OMB Circular A-87 or 
A-122 as applicable).
    f. Construction Tools and Equipment. The purchase of construction 
tools and equipment is generally ineligible. However, compensation for 
the use of such tools and equipment through leasing, depreciation, or 
use allowances pursuant to OMB Circulars A-87 and A-122, as applicable, 
for an otherwise eligible activity is an eligible use of ICDBG funds. 
Exceptions include construction tools and equipment purchased for use 
as part of a solid waste facility (24 CFR 1003.201(c)(1)(ii)) and 
construction tools only (not equipment) purchased for use in a housing 
rehabilitation project being administered by the recipient using the 
force account construction method (24 CFR 1003.202(b)(8)).
    g. Income Payments. In general, assistance shall not be used for 
income payments for housing or any other purpose. Income payments mean 
a series of subsistence-type grant payments made to an individual or 
family for items such as food, clothing, housing (rent or mortgage), or 
utilities, but excludes emergency payments made over a period of up to 
three months to the provider of such items or services on behalf of an 
individual or family. Examples of ineligible income payments include 
the payments for income maintenance and housing allowances.
    2. Grant Ceilings: The authority to establish grant ceilings is 
found at 24 CFR 1003.100(b)(1). Grant ceilings are established for 
FY2004 funding at the following levels:

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

    For the Southwest Area ONAP jurisdiction, the population used to 
determine ceiling amounts is the Native American population that 
resides on a reservation or rancheria. Please contact that office 
before submitting your application if you are unsure of the population 
level to use to determine the ceiling amount for your tribe or if you 
believe that the level used for previous years needs to be revised or 
corrected. The Southwest ONAP must approve any corrections or revisions 
to Native American population data before you submit your application.
    3. Program Related Threshold Requirements:
    a. Outstanding ICDBG Obligation. According to 24 CFR 1003.301(a), 
an applicant who has an outstanding ICDBG obligation to HUD that is in 
arrears, or one that has not agreed to a repayment schedule, will be 
disqualified from the competition.
    b. Compliance with Fair Housing and Civil Rights Laws. With the 
exception of federally recognized Indian tribes and their 
instrumentalities, all applicants and their subrecipients must comply 
with all Fair Housing and Civil Rights laws, statutes, regulations, and 
Executive Orders as enumerated in 24 CFR 5.105(a). If you are a 
federally recognized Indian tribe, you must comply with the 
nondiscrimination provisions enumerated at 24 CFR 1003.601, as 
applicable. If you, the applicant:
    (1) Have been charged with a systemic violation of the Fair Housing 
Act alleging ongoing discrimination; or
    (2) Are a defendant in a Fair Housing Act lawsuit filed by the 
Department of Justice alleging an ongoing pattern or practice of 
discrimination; or
    (3) Have received a letter of noncompliance findings identifying 
ongoing or 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 the 
charge, lawsuit, or letter of findings referenced above has not been 
resolved to HUD's satisfaction before the application deadline stated 
in this NOFA, you are ineligible and the

[[Page 60484]]

application will not be rated or ranked. HUD makes a determination of 
whether actions to resolve a charge, lawsuit, or letter of findings 
taken prior to the application deadline are sufficient to resolve the 
matter.
    Examples of actions that would normally be considered sufficient to 
resolve the matter include but are not limited to:
    (a) A voluntary compliance agreement signed by all parties in 
response to the letter of findings;
    (b) A HUD-approved conciliation agreement signed by all parties;
    (c) A consent order or consent decree; or
    (d) An issuance of a judicial ruling or a HUD Administrative Law 
Judge's decision.
    4. Project-Specific Threshold Requirements:
    a. Housing Rehabilitation Project Thresholds. In accordance with 24 
CFR 1003.302(a), for housing rehabilitation projects, you must adopt 
rehabilitation standards and rehabilitation policies before you submit 
an application. You must submit with the application evidence the 
policies or standards have been adopted in accordance with tribal law 
or practice. You must also provide an assurance that project funds will 
be used to rehabilitate HUD-assisted houses only when the tenant or 
homebuyer's payments are current or the tenant or homebuyer is current 
in a repayment agreement except in emergency situation. The ONAP 
Administrator on a case-by-case basis may approve exceptions to this 
requirement.
    b. Land Acquisition to Support New Housing Project Thresholds. No 
project-specific thresholds.
    c. New Housing Construction Project Thresholds.
    (1) In accordance with 24 CFR 1003.302(b), new housing construction 
can be implemented only when necessary through a Community Based 
Development Organization (CBDO). Eligible CBDOs are described in 24 CFR 
1003.204(c). You must provide documentation establishing that the 
entity implementing your new housing construction project qualifies as 
a CBDO.
    (2) In accordance with 24 CFR 1003.302, you must submit a current 
(in effect) tribal resolution adopting and identifying construction 
standards.
    (3) In accordance with 24 CFR 1003.302, you must also include in 
your application documentation that supports the following:
    (a) All households to be assisted under a new housing construction 
project must be of low- or moderate-income status;
    (b) No other housing is available in the immediate reservation area 
that is suitable for the households to be assisted;
    (c) No other sources including an IHBG can meet the needs of the 
household(s) to be served; and
    (d) Rehabilitation of the unit occupied by the household(s) to be 
assisted is not economically feasible, or the household(s) to be housed 
currently is in an overcrowded house (more than one household per 
house), or the household to be assisted has no current residence.
    d. Homeownership Assistance Project Thresholds. No project specific 
thresholds.
    e. Public Facilities and Improvements Project Thresholds. No 
project specific thresholds.
    f. Economic Development Project Thresholds. In accordance with 24 
CFR 1003.302, for economic development assistance projects, you must 
provide a financial analysis. The financial analysis must demonstrate 
that the project is financially feasible and the project has a 
reasonable chance of success. The analysis must also demonstrate the 
public benefit resulting from the ICDBG assistance. The more funds you 
request, the greater public benefit you must demonstrate. The analysis 
must also establish that to the extent practicable, reasonable 
financial support will be committed from non-federal sources prior to 
disbursement of federal funds; any grant amount provided will not 
substantially reduce the amount of non-federal financial support for 
the activity; not more than a reasonable rate of return on investment 
is provided to the owner; and that grant funds used for the project 
will be disbursed on a pro-rata basis with amounts from other sources.
    g. Microenterprise Program Thresholds. No project specific 
threshold.
    5. Public Service Projects: Because there is a statutory 15 percent 
cap on the amount of grant funds that may be used for public service 
activities, you may not receive a single-purpose grant solely to fund 
public service activities. Your application, however, may contain a 
public service component for up to 15 percent of the total grant. This 
component may be unrelated to the other project(s) included in your 
application. If your application does not receive full funding, we will 
reduce the public service allocation proportionately so that it 
comprises no more than 15 percent of the total grant award. In making 
such reductions, the feasibility of the proposed project will be taken 
into consideration. If a proportionate reduction of the public service 
allocation renders such a project infeasible, the project will not be 
funded. A complete description of Public Service Projects is located at 
24 CFR part 1003.201.
    6. Restrictions on Eligible Activities: Activities that are 
eligible for ICDBG funding are identified at 24 CFR part 1003, subpart 
C. Please note that although this subpart has not yet been revised to 
include the restrictions on activity eligibility that were added to 
section 105 of the CDBG statute by section 588 of the Quality Housing 
and Work Responsibility Act of 1998, these restrictions apply. 
Specifically, ICDBG funds may not be used to assist directly in the 
relocation of any industrial or commercial plant, facility, or 
operation, from one area to another, if the relocation is likely to 
result in a significant loss of employment in the labor market area 
from which the relocation occurs. Rating Factors 2 and 3 included under 
section V. specify many of the activities listed as eligible under part 
1003, subpart C. Those listed include new housing construction (in 
certain circumstances as described in Rating Factors 2 and 3 in section 
V.), housing rehabilitation, land acquisition to support new housing, 
homeownership assistance, public facilities and improvements, economic 
development, and microenterprise programs. However, the following 
eligible activities not clearly identified by the rating factors may be 
proposed and rated as described below. During the past few years, many 
tribes have experienced high incidences of mold growth in tribal homes 
and buildings. Renovation of affected buildings is eligible under 
housing rehabilitation or public facility improvement projects.
    For a complete description of eligible activities, please refer to 
24 CFR part 1003, subpart C.
    a. Acquisition of property. This activity can be proposed as Land 
to Support New Housing or as part of New Housing Construction, Public 
Facilities and Improvements, or Economic Development depending on the 
purpose of the land acquisition to support new construction.
    b. Assistance to Institutions of Higher Learning. If such entities 
have the capacity, they can help the ICDBG grantees to implement 
eligible projects.
    c. Assistance to Community Based Development Organizations (CBDOs). 
Grantees may provide assistance to these organizations to undertake 
activities related to neighborhood

[[Page 60485]]

revitalization, community economic development, or energy conservation.
    d. Clearance, Demolition. These activities can be proposed as part 
of Housing Rehabilitation, New Housing Construction, Public Facilities 
and Improvements, Economic Development, or Land to Support New Housing. 
Section 1003.201(d) states, ``Demolition of HUD-assisted housing units 
may be undertaken only with the prior approval of HUD.''
    e. Code Enforcement. This activity can be proposed as Housing 
Rehabilitation. The activity must comply with the requirements at 24 
CFR 1003.202.
    f. Comprehensive Planning. This activity is eligible, and can be 
proposed, as part of any otherwise-eligible project to the extent 
allowed by the 20 percent cap on the grant for planning and 
administration.
    g. Energy Efficiency. Associated activities can be proposed under 
Housing Rehabilitation or Public Facilities and Improvements depending 
upon the type of energy efficiency activity.
    h. Lead Based Paint Abatement and Evaluation. These activities can 
be proposed under Housing Rehabilitation.
    i. Non-Federal Share. ICDBG funds can be used as a match for any 
non-ICDBG funding to the extent allowed by such funding and the 
activity is eligible under 24 CFR part 1003, subpart C.
    j. Privately and Publicly Owned Commercial or Industrial Buildings 
(real property improvements). These activities can be proposed under 
Economic Development. Privately owned commercial rehabilitation is 
subject to the requirements at 24 CFR 1003.202.
    k. Privately Owned Utilities. Assistance to privately owned 
utilities can be proposed under Public Facilities and Improvements.
    l. Removal of Architectural Barriers. This includes removing 
barriers that restrict mobility and access for elderly and persons with 
disabilities. In addition, accommodation should be made for persons 
with all varieties of disabilities to enable them to benefit from these 
activities. This activity can be proposed under Housing Rehabilitation 
or Public Facilities and Improvements depending upon the type of 
structure where the barrier will be removed.
    F. Other Submission Requirements:
    1. Mailing and Receipt Procedures. The following procedures apply 
to the delivery and receipt of applications. Please read the following 
instructions carefully and completely as failure to comply with these 
procedures may disqualify your application. HUD's delivery and receipt 
policies are:
    a. Hand deliveries will be accepted in FY2004 until 5 p.m. local 
time at the Area ONAP designated for your jurisdiction in section 
IV.F.3. However, if HUD staff are not available to accept your package 
or the courier service, due to security or other reasons, is not 
allowed to enter the building to deliver the package, the package will 
be determined not delivered and not accepted by HUD. HUD will not 
accept responsibility for ensuring that staff is available to take your 
package and will not breach security measures in order to accept an 
undeliverable package. If the applicant experiences problems gaining 
entry to HUD's offices, the applicant is encouraged to take the 
application to the nearest post office and follow the mailing 
instructions for postal service timely delivery.
    b. Applications may be shipped using DHL, Falcon Carrier, Federal 
Express (FedEx), United Parcel Services (UPS), or the United States 
Postal Service. Please be aware that the United States Postal Service 
is no longer delivering large packages dropped in mailboxes, even 
though there may be sufficient postage. In order to have your 
application package delivered and not returned to sender, you must have 
the package accepted by a postal clerk at a post office counter. At the 
counter, you can proceed to obtain the necessary postage and the USPS 
Form 3817 or the receipt received from the post office showing the 
postal facility name, location and date and time of mailing, as noted 
below under Proof of Timely Submission. Be sure to obtain a receipt for 
applications submitted to delivery services or to the United States 
Postal Service.
    c. All mailed applications must be postmarked on or before midnight 
of their due date and received within 15 days of the due date.
    2. Proof of Timely Submission. In the case of a disputed submission 
for applications mailed by the United States Postal Service, the proof 
of timely submission to HUD field offices will be the Certificate of 
Mailing (USPS Form 3817). If the postal service does not normally 
postmark large packages, the proof of timely submission shall be 
received within 15 days at the designated Area Office, and upon request 
by a 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. If items are mailed from the post office 
using express mail delivery service, the express mail receipt will be 
acceptable if it indicates the date and time of mailing. In the case of 
disputed submissions for applications submitted to HUD via a delivery 
service other than the United States Postal Service, the documentary 
proof of timely submission will be the delivery service receipt 
indicating the application was submitted to the delivery service at 
least 24 hours prior to the application due date and, through no fault 
of the applicant, delivery could not be made on or before the 
application due date. If a courier attempting application delivery is 
turned away from a HUD facility due to security issues, this situation 
will not be considered as meeting the requirement of ``no fault of the 
applicant.'' Applicants have been advised that delivery issues can 
arise when use of courier services results in late application 
submission.
    Please remember that mail to federal facilities is screened prior 
to delivery, so please allow time for your package to be delivered. If 
you mail your application to the wrong location and the office 
designated for receipt in accordance with these submission requirements 
does not receive it, your application will be considered late and not 
be considered for funding. HUD will not be responsible for directing it 
to the appropriate office.
    3. Addresses for Submitting Applications. Submit the original 
signed application and two copies to the appropriate Area ONAP for your 
jurisdiction. A list identifying each Area ONAP jurisdiction is 
provided below. Please note that the Denver, Oklahoma, and Alaska 
offices have new addresses.

[[Page 60486]]



----------------------------------------------------------------------------------------------------------------
                                              send your application to this Area ONAP:  (Persons with hearing or
  If you are applying from this geographic    speech impairments may access the telephone numbers listed on this
              location then...                page via TTY (text telephone) by calling the Federal Relay Service
                                                         at 800-877-8339 (this is a toll-free number)
----------------------------------------------------------------------------------------------------------------
All States East of the Mississippi River,     Eastern/Woodlands Office of Native American Programs, Grants
 Plus Iowa and Minnesota.                      Management Division, 77 West Jackson Blvd., Room 2400, Chicago,
                                               IL 60604-3507, Telephone: (312) 886-4532, Ext. 2815 or 800-735-
                                               3239.
Louisiana, Kansas, Oklahoma, and Texas,       Southern Plains Office of Native American Programs, Grants
 except West Texas.                            Management Division, 301 NW., 6th Street, Suite 200, Oklahoma
                                               City, OK 73102, Telephone: (405) 609-8525.
Colorado, Montana, Nebraska, North Dakota,    Northern Plains Office of Native American Programs, Grants
 South Dakota, Utah, and Wyoming.              Management Division, UMB Plaza, 1670 Broadway, Denver, CO 80202-
                                               4801, Telephone: (303) 672-5465 or 888-814-2945.
Arizona, California, and Nevada.............  Southwest Office of Native American Programs, Grants Management
                                               Division, One North Central Avenue, Suite 600, Phoenix, AZ 85004-
                                               2361, Telephone: (602) 379-7220.
New Mexico and West Texas...................  Southwest Office of Native American Programs, Grants Management
                                               Division, 625 Silver Ave., SW., Suite 300, Albuquerque,
                                               NM 87102-3185, Telephone: (505) 346-6923.
Idaho, Oregon, and Washington...............  Northwest Office of Native American Programs, Grants Management
                                               Division, Federal Office Building, 909 First Avenue, Suite 300,
                                               Seattle, WA 98104-1000, Telephone: (206) 220-5270.
Alaska......................................  Alaska Office of Native American Programs, Grants Management
                                               Division, 3000 C. Street, Suite 401, Anchorage, AK 99503,
                                               Telephone: (907) 677-9800.
----------------------------------------------------------------------------------------------------------------

V. Application Review Information

    A. Criteria:
    1. Planning and Administrative Costs. Applicants must report 
project planning and administration costs on Form HUD-4123, Cost 
Summary. Planning and administrative costs cannot exceed 20 percent of 
the grant. The following criteria applies to planning and 
administrative costs:
    a. Planning and administrative activities may be funded only in 
conjunction with a physical development activity.
    b. If you are submitting an application for more than one project, 
costs must be broken down by project. Submit one Form HUD-4123 for each 
proposed project in addition to a consolidated Form HUD-4123 that 
includes costs for all proposed projects.
    c. Do not include project costs (i.e. architectural/engineering, 
environmental, technical assistance, staff/overhead costs) directly 
related to project.
    2. Rating Factors to Evaluate and Rate Applications. The factors 
for rating and ranking applications and the points for each factor are 
provided below. A maximum of 100 points may be awarded under Rating 
Factors 1 through 5. To be considered for funding, your application 
must receive a minimum of 15 points under rating factor 1 and an 
application score of 70 out of the possible total of 100, the maximum 
any project can receive. The following summarizes the points assigned 
to each rating factor and each rating subfactor and lists which rating 
subfactors apply to which project types. Please use this table to 
ensure that you are addressing the appropriate rating subfactor for 
your project.

----------------------------------------------------------------------------------------------------------------
          Rating factor                Rating  subfactor          Points                 Project type
----------------------------------------------------------------------------------------------------------------
1................................  Total....................              30  Minimum of 15 Points Required
                                   (1)(a)...................              10  All Project Types.
                                   (1)(b)...................         *5 or 7  All Project Types.
                                   (1)(c)...................         *3 or 8  All Project Types.
                                   (1)(d)...................         *2 or 5  All Project Types.
                                   (2)(a)...................         *2 or 0  All Project Types.
                                   (2)(b)...................         *2 or 0  All Project Types.
                                   (2)(c)...................         *2 or 0  All Project Types.
                                   (2)(d)...................         *2 or 0  All Project Types.
                                   (2)(e)...................         *2 or 0  All Project Types.
2................................  Total....................              20
                                   1........................               5  All Project Types.
                                   (2)(a)...................              15  Public Facilities and Improvements
                                                                               and Economic.
                                   (2)(b)...................              15  New Housing Construction, Housing
                                                                               Rehabilitation, Land Acquisition
                                                                               to Support New Housing, and
                                                                               Homeownership Assistance
                                                                               Projects.
                                   (2)(c)...................              15  Microenterprise Programs.
3................................  Total....................              35
                                   (1)......................              14  All Project Types.
                                   (2)......................               5  All Project Types.
                                   (3)......................               1  By Project Type.
                                   (4)(a)...................              15  Public Facilities and
                                                                               Improvements.
                                   (4)(b)...................              15  New Housing Construction, Housing
                                                                               Rehabilitation, and Homeownership
                                                                               Assistance Programs.
                                   (4)(c)...................              15  Economic Development.
                                   (4)(d)...................              15  Microenterprise Programs.
                                   (4)(e)...................              15  Land Acquisition to Support New
                                                                               Housing.
4................................  Total....................              10  All Project Types.
5................................  Total....................               5  All Project Types.
                                  ----------------------------

[[Page 60487]]

 
    Total........................  .........................             100  Minimum of 70 Points Required
----------------------------------------------------------------------------------------------------------------
* The first number listed indicates the maximum number of points available to current ICDBG grantees under this
  subfactor. The second number indicates the maximum number of points available to new applicants.

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

    This factor addresses the extent to which you have the 
organizational resources necessary to successfully implement the 
proposed activities in accordance with your implementation schedule. If 
applicable, past performance in administering previous ICDBG grants 
will be taken into consideration. You must address the existence or 
availability of these resources for the specific type of activity for 
which you are applying. You must receive a minimum of 15 points under 
this factor for your proposed activity to be eligible for funding. 
Under this factor, HUD will not rate any projects further that do not 
receive a minimum of 15 points. Please note: If your application is 
funded, you will be required to submit an annual status and evaluation 
report which will describe the status of completed activities and any 
remaining work to be done (see section VI.C. Reporting). For this 
factor, the implementation schedule and the Logic Model, Form HUD 
96010, you submit will also be measured against actual progress if you 
are funded.
    (1) (20 points for current ICDBG grantees) (30 points for new 
applicants) Managerial, Technical, and Administrative Capability.
    Your application must include documentation demonstrating that you 
possess or can obtain managerial, technical, and administrative 
capability necessary to carry out the proposed project. Your 
application must address who will administer the project and how you 
plan to handle the technical aspects of executing it in accordance with 
your implementation schedule.
    (a) (10 points) Managerial and Technical Staff.
    The extent to which your application describes the roles and 
responsibilities and the knowledge and experience of your overall 
proposed project director and staff, including the day-to-day program 
manager, consultants, and contractors in planning, managing, and 
implementing projects in accordance with the implementation schedule 
for which funding is being requested. Experience will be judged in 
terms of recent, relevant, and successful experience of your staff to 
undertake eligible program activities. In rating this factor, HUD will 
consider experience within the last 5 years to be recent; experience 
pertaining to the specific activities being proposed to be relevant; 
and experience producing specific accomplishments to be successful. The 
more recent the experience and the more experience your own staff 
members who work on the project have in successfully conducting and 
completing similar activities, the greater the number of points you 
will receive for this rating factor.
    (10 Points). The applicant has adequately described the roles and 
responsibilities and the knowledge and experience of its overall 
project director and staff, including the day-to-day program manager, 
consultants, and contractors in planning, managing, and implementing 
projects for which funding is being requested. Staff experience as 
described in the application is recent (within 5 years), relevant 
(pertains to the specific activities being proposed) and successful 
(has produced specific accomplishments).
    (5 Points). The applicant has adequately described the roles and 
responsibilities and the knowledge and experience of its overall 
project director and staff, including the day-to-day program manager, 
consultants, and contractors in planning, managing and implementing 
projects for which funding is being requested. However, one of the 
following applies: staff experience as described in the application is 
not recent (not within 5 years), is not relevant (does not pertain to 
the specific activities being proposed), or is not successful (did not 
produce specific accomplishments).
    (0 Points). The applicant has not adequately described the roles 
and responsibilities and the knowledge and experience of its overall 
project director and staff, including the day-to-day program manager, 
consultants, and contractors in planning, managing, and implementing 
projects for which funding is being requested or more than one of the 
following applies: staff experience as described in the application is 
not recent (not within 5 years), is not relevant (does not pertain to 
the specific activity being proposed), or is not successful (did not 
produce specific accomplishments).
    (b) (5 points for current ICDBG grantees) (7 points for new 
applicants) Project Implementation Plan and Program Evaluation.
    The extent to which your project implementation plan identifies the 
specific tasks and timelines that you and your partner contractors and 
subgrantees will undertake to complete your proposed project on time 
and within budget. The Project Implementation Schedule, Form HUD-4125, 
may serve as the required schedule, provided that it is sufficiently 
detailed to demonstrate that you have clearly thought out your project 
implementation.
    The extent to which your project identifies, measures, and 
evaluates the specific benchmarks, outputs, outcomes, and goals of your 
project that enhance community viability. The Logic Model, Form HUD-
96010, may serve as the format to address this information.
    (5 points for current ICDBG grantees) (7 points for new 
applicants). The applicant submitted a project implementation plan that 
clearly specifies project tasks and timelines. The documentation 
identifies the steps in place to make adjustments to the work plan if 
tasks are not completed within established time frames. The applicant 
submitted clear project benchmarks, outputs, outcomes, and targets and 
identified objectively quantifiable program measures and evaluation 
processes.
    (3 points for current ICDBG grantees) (4 points for new 
applicants). The applicant submitted a project implementation plan that 
specifies project tasks and timelines. The applicant submitted project 
benchmarks, outputs, outcomes, and targets for each, but did not 
clearly identify objectively quantifiable program measures and 
evaluation processes.
    (0 points for current ICDBG grantees or new applicants). The 
applicant submitted a project implementation schedule that does not 
address all project tasks and timelines associated with the project. 
Project benchmarks, outputs, outcomes, and goals were not submitted, or 
if submitted, did not address either the quantifiable program measures 
and the evaluation process.
    (c) (3 points for current ICDBG grantees) (8 points for new 
applicants) Financial Management.

[[Page 60488]]

    This subfactor evaluates the extent to which your application 
describes how your financial management systems will facilitate 
effective fiscal control over your proposed project and meet the 
requirements of 24 CFR part 85 and 24 CFR part 1003. You must also 
describe how you will apply your financial management systems to the 
specific project for which you are applying. The application must 
include a tribal resolution or other written document signed by the 
appropriate entity according to tribal practices that adopts your 
financial management and internal control policies and procedures. The 
application will also be rated on the seriousness and significance of 
the findings related to your financial management system identified in 
your current audit. If you are required to have an audit but do not 
have a current audit, you must submit a letter from your Independent 
Public Accountant that is dated within the past 12 months stating that 
your financial management system complies with all applicable 
regulatory requirements. If you are not required to have an audit, you 
will automatically receive points for this portion of the subfactor. 
For purposes of this subfactor, a current audit is one which has been 
submitted to the Federal Audit Clearinghouse within 9 months of the end 
of the applicant's last fiscal year, or 30 days after receipt of the 
audit report from the auditor, whichever comes first.
    (3 points for current ICDBG grantees) (8 points for new 
applicants). The applicant clearly described how it will apply its 
financial management systems to the proposed project. A tribal 
resolution or other written document signed by the appropriate entity 
according to tribal practices adopting financial management or internal 
control policies and procedures were included with the application. The 
applicant's current audit does not contain any serious or significant 
findings related to its financial management system, or if there is no 
current audit, the applicant submitted a letter from its Independent 
Public Accountant stating that its financial management system complies 
with all applicable regulatory requirements.
    (2 points for current ICDBG grantees) (4 points for new 
applicants). The applicant's current audit does not contain any serious 
or significant findings related to its financial management system, or 
if there is no current audit, the applicant submitted a letter from its 
Independent Public Accountant stating that its financial management 
system complies with all applicable regulatory requirements. The 
applicant did not describe how it would apply its financial management 
systems to the proposed project, or it did not submit a tribal 
resolution or other written document adopting financial management or 
internal control policies and procedures. For purposes of this 
subfactor, a current audit is one which has been submitted to the 
Federal Audit Clearinghouse within 9 months of the end of the 
applicant's last fiscal year, or 30 days after receipt of the audit 
report from the auditor, whichever comes first.
    (1 point for current ICDBG grantees) (2 points for new applicants). 
The applicant's current audit does not contain any serious or 
significant findings related to its financial management system, or if 
there is no current audit, the applicant submitted a letter from its 
Independent Public Accountant stating that its financial management 
system complies with all applicable regulatory requirements. The 
applicant did not describe how it would apply its financial management 
systems to the proposed project, and it did not submit a tribal 
resolution or other written document adopting financial management or 
internal control policies and procedures.
    (0 points for current ICDBG grantees or new applicants). The 
applicant's current audit included serious or significant findings 
related to its financial management systems or if there is no current 
audit, the applicant did not submit a letter from its Independent 
Public Accountant stating its financial management systems comply with 
all regulatory requirements. No tribal resolution or other written 
document adopting financial management or internal control policies and 
procedures were submitted with the application, and the applicant did 
not describe how it would apply its financial management systems to the 
proposed project.
    (d) (2 points for current ICDBG grantees) (5 points for new 
applicants) Procurement and Contract Management.
    This subfactor evaluates the extent to which your application 
describes how your procurement and contract management policies and 
procedures will facilitate effective procurement and contract control 
over your proposed project and meet the requirements of 24 CFR part 85 
and 24 CFR part 1003. You must also describe how you will apply your 
procurement and contract management systems to the specific project for 
which you are applying. The application must include a tribal 
resolution or other written document signed by the appropriate entity 
according to tribal practices that adopts your procurement and contract 
management policies and procedures. The application will also be rated 
on the seriousness of the findings related to procurement and contract 
management identified in your current financial audit. If you are 
required to have an audit but do not have a current audit, you must 
submit a letter from your Independent Public Accountant stating that 
your procurement and contract management system complies with all 
applicable regulatory requirements. If you are not required to have an 
audit, you will automatically receive points for this portion of the 
subfactor.
    (2 points for current ICDBG grantees) (5 points for new 
applicants). The applicant clearly described how its procurement and 
contract management policies and procedures will facilitate effective 
procurement and contract control over the proposed project, and meet 
the requirements of 24 CFR part 85 and 24 CFR part 1003. A tribal 
resolution or other written document signed by the appropriate entity 
according to tribal practices adopting procurement and contract 
management policies and procedures were included with the application. 
The applicant's current audit does not contain any serious or 
significant findings related to its procurement and contract management 
system, or if there is no current audit, the applicant submitted a 
letter from its Independent Public Accountant stating that its 
procurement and contract management system complies with all applicable 
regulatory requirements.
    (1 point for current ICDBG grantees) (4 points for new applicants). 
The applicant's current audit does not contain any serious or 
significant findings related to its procurement or contract management 
system, or if there is no current audit, the applicant submitted a 
letter from its Independent Public Accountant stating that its 
procurement and contract management system complies with all applicable 
regulatory requirements. The applicant did not describe how it would 
apply its procurement and contract management systems to the proposed 
project, or it did not submit a tribal resolution or other written 
document adopting procurement and contract management policies and 
procedures.
    (0 points for current ICDBG grantees or new applicants). The 
applicant's current audit included serious or significant findings 
related to its procurement and contract management systems or if there 
is no current audit, it did not submit a letter from its Independent 
Public Accountant stating its procurement and contract management 
systems comply with all regulatory requirements. No tribal

[[Page 60489]]

resolution or other written document adopting procurement or contract 
management policies and procedures were submitted with the application, 
and the applicant did not describe how it would apply its procurement 
and contract management systems to the proposed project.
    (2) (10 points for current ICDBG grantees) (0 points for new 
applicants) Past Performance.
    HUD will evaluate your experience in producing timely products and 
reports in any previous grant programs undertaken with HUD funds for 
the following performance measures. HUD reserves the right to take into 
account your past performance in meeting performance and reporting 
goals on any previous HUD awards.
    (a) (2 points for current ICDBG grantees) (0 points for new 
applicants). You have had satisfactory progress in meeting the 
timeframes established in the HUD-approved Implementation Schedule for 
the ICDBG Program.
    (2 points). The applicant has made satisfactory progress in meeting 
the timeframes established in the implementation schedule, or was 
behind schedule, but has an approved revised implementation schedule 
that was submitted prior to application deadline.
    (0 points). The applicant has not made satisfactory progress 
meeting timeframes in the most recently approved implementation 
schedule.
    (b) (2 points for current ICDBG grantees) (0 points for new 
applicants).
    (2 points). The applicant has submitted both the Annual Status and 
Evaluation Reports and Federal Cash Transaction Reports for ICDBG 
programs in a timely manner.
    (1 point). The applicant has submitted either the Federal Cash 
Transaction Reports or the Annual Status and Evaluation Reports for 
ICDBG programs in a timely manner.
    (0 points). The applicant has not submitted either of the required 
reports in a timely manner.
    (c) (2 points for current ICDBG grantees) (0 points for new 
applicants). You have submitted close-out documents to HUD in a timely 
manner. Close-out documents are required for the ICDBG Program within 
90 days of the date it is determined that the criteria for close-out at 
24 CFR 1003.508 have been met.
    (2 points). The applicant submitted close-out documents to HUD in 
accordance with the timeframe and criteria at Sec.  1003.508.
    (0 points). The applicant has not submitted close-out documents to 
HUD as required by Sec.  1003.508.
    (d) (2 points for current ICDBG grantees) (0 points for new 
applicants). You have submitted annual audits in a timely fashion in 
accordance with the ICDBG requirements and OMB Circular A-133 and its 
compliance supplements.
    (2 points). The applicant has submitted annual audits in accordance 
with ICDBG requirements and OMB Circular A-133 and its compliance 
supplements, or if the applicant has not been required to submit an 
audit, it will receive 2 points.
    (0 points). The applicant has not submitted annual audits in 
accordance with ICDBG requirements and OMB Circular A-133 and its 
compliance supplements.
    (e) (2 points for current ICDBG grantees) (0 points for new 
applicants). You have resolved in a timely manner ICDBG monitoring 
findings and controlled audit findings or there are no findings in 
current reports.
    (2 points). The applicant resolved open ICDBG monitoring findings 
and controlled audit findings in a timely manner. If there were no open 
audit or ICDBG monitoring findings (current grantees only), the 
applicant will receive 2 points.
    (0 points). The applicant has not resolved open ICDBG monitoring 
findings and controlled audit findings in a timely manner.

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

    This factor addresses the extent to which there is a need for the 
proposed project to address a documented problem among the intended 
beneficiaries.
    (1) (up to 5 points). Your application includes quantitative 
documentation demonstrating that the proposed project meets an 
essential community development need by providing outcomes that are 
critical to the viability of the community.
    (2) (15 points). Your project benefits the neediest segment of the 
population, in accordance with the ICDBG program's primary objective 
defined at 24 CFR 1003.2. The criteria for this subfactor vary 
according to the type of project for which you are applying. Please 
note that you may submit data that are unpublished and not generally 
available in order to meet the requirements of this section. However, 
to do so, you must submit a demographic data statement along with 
supporting documentation as described in section IV.B.2.a. For 
documenting persons employed by the project, you do not need to submit 
a demographic data statement and corresponding documentation. However, 
you do need to submit information that describes the nature of the jobs 
created or retained. Such information includes but is not limited to 
proposed job descriptions, salaries, and the number of full-time 
equivalent positions. If you believe jobs will be retained as a result 
of the ICDBG project, include information that show clearly and 
objectively, that jobs will be lost without the ICDBG project. Jobs 
that are retained only for the period of the grant will not count under 
this rating factor.
    (a) Public Facilities and Improvements and Economic Development 
Projects. The proposed activities benefit the neediest segment of the 
population, as identified below. For economic development projects, you 
may consider beneficiaries of the project as persons served by the 
project and persons employed by the project, and jobs created or 
retained by the project.
    (15 points). 85 percent or more of the beneficiaries are low-or 
moderate-income.
    (10 points). At least 75 percent but less than 85 percent of the 
beneficiaries are low-or moderate-income.
    (5 points). At least 55 percent but less than 75 percent of the 
beneficiaries are low-or moderate-income.
    (0 points) Less than 55 percent of the beneficiaries are low-or 
moderate-income.
    (b) New Housing Construction, Housing Rehabilitation, Land 
Acquisition to Support New Housing, and Homeownership Assistance 
Projects. The need for the proposed project is determined by utilizing 
data from the tribe's 2004 IHBG formula information. The ratio is based 
on the dollars allocated to a tribe under the IHBG Program for need 
divided by the sum of the number of AIAN households in the following 
categories:

-- Annual income less than 30 percent of median income;
-- Annual income between 30 percent and 50 percent of median income;
-- Annual income between 50 percent and 80 percent of median income;
-- Overcrowded or without kitchen or plumbing;
-- Housing cost burden greater than 50 percent of annual income;
-- Housing shortage (Number of low-income AIAN households less total 
number of NAHASDA and Formula Current Assisted Stock).

    This ratio is computed for each tribe and contained in appendix A 
of this NOFA.
    (15 points). The dollar amount for the Indian tribe is $390 to $699 
or the tribe's total FY2004 IHBG amount was $100,000 or less and 
appendix A of this

[[Page 60490]]

NOFA does not indicate that the Indian tribe has no AIAN households 
experiencing income or housing problems.
    (10 points). The dollar amount for the Indian tribe is $700 to 
$1,199.
    (5 points). The dollar amount for the Indian tribe is $1,200 to 
$1,999.
    (0 points). The dollar amount for the Indian tribe is $2,000 or 
higher, or appendix A of this NOFA indicates that the Indian tribe has 
no AIAN households experiencing income or housing problems.
    (c) Microenterprise Programs.
    A microenterprise is a business that has five or fewer employees, 
one or more of whom owns the enterprise. The owner(s) of the 
microenterprise must be low-or moderate-income and the majority of the 
jobs created or retained will be for low-or moderate-income persons. To 
evaluate need, the nature of the jobs created or retained will be 
evaluated. The owners of the microenterprises are low- and moderate-
income and:
    (15 points). All employees are low-or moderate-income.
    (10 points). At least 75 percent but less than 100 percent of the 
employees are low-or moderate-income.
    (5 points). At least 50 percent but less than 75 percent of the 
employees are low-or moderate-income.
    (0 points). Less than 50 percent of the employees are low- and 
moderate-income.

Rating Factor 3: Soundness of Approach (35 Points)

    This factor addresses the quality and anticipated effectiveness of 
your proposed project's outcomes in enhancing community viability and 
in meeting the needs you have identified in Rating Factor 2, as well as 
the commitment to sustain your proposed project. The populations that 
were described in demographics that documented need should be the same 
populations that will receive the primary benefit of the proposed 
project.
    (1) (14 points). Description of and Rationale for Proposed Project.
    (14 points). The proposed project is a viable and cost-effective 
approach to address the needs outlined under Rating Factor 2 of your 
application. The proposed project is described in detail and indicates 
why you believe the proposed project will be most effective in 
addressing the identified need. The proposed outcomes for the project 
clearly describe how the community's viability will be enhanced, 
including selection of measures listed in Rating Factor 5. The 
application includes a description of the size, type, and location of 
the project and a rationale for project design. The application must 
also include anticipated cost savings due to innovative program design 
and construction methods. For land acquisition to support new housing 
projects, you must establish that there is a reasonable ratio between 
the number of net usable acres to be acquired and the number of low- 
and moderate-income households to benefit from the project.
    (9 points). The proposed project is a viable and cost-effective 
approach to address the needs outlined under Rating Factor 2 of the 
application. The project is described in detail and indicates why you 
believe the project will be most effective in addressing the identified 
need. Proposed outcomes that will enhance the community's viability are 
included. The application includes a description of the size, type and 
location of the project as well as a rationale for project design. For 
land acquisition to support new housing projects, the applicant has 
established that there is a reasonable ratio between the number of net 
usable acres to be acquired and the number of low- and moderate-income 
households to benefit from this project.
    (5 points). The proposed project is a viable and cost-effective 
approach to address the needs outlined under Rating Factor 2 of the 
application. The project is described and indicates why you believe it 
will be most effective in addressing the identified need. Proposed 
outcomes are included but do not describe how the project will enhance 
community viability. The application includes a description of the 
size, type, and location of the project. For land acquisition to 
support new housing projects, the applicant has established that there 
is a reasonable ratio between the number of net usable acres to be 
acquired and the number of low- and moderate-income households to 
benefit from the project.
    (0 points). The proposed project is not a viable and cost-effective 
approach to address the needs outlined under Rating Factor 2 of the 
application. The proposed project is not described in detail with an 
indication of why the applicant believes the project will be most 
effective in addressing the identified need. Proposed outcomes 
describing how the project will enhance community viability are not 
included. For land acquisition to support new housing projects, the 
applicant has not established that there is a reasonable ratio between 
the number of net usable acres to be acquired and the number of low- 
and moderate-income households to benefit from the project.
    (2) (5 points). Budget and Cost Estimates.
    The quality, thoroughness, and reasonableness of the proposed 
project budget are documented. Cost estimates must be broken down by 
line item for each proposed activity, including planning and 
administration costs, and documented. You must submit documentation 
listing the qualifications of the person who prepared the cost 
estimate.
    (3) (1 point). HUD Policy Priorities.
    Your application addresses the goals for ``Improving Our Nation's 
Communities,'' one of HUD's 2004 Policy Priorities, as described in 
section V.B.12.b. of the NOFA.
    (4) (15 points). Commitment to Sustain Activities.
    Your application demonstrates your commitment to your community's 
viability by sustaining your proposed activities. The information 
provided is sufficient to determine that the project will proceed 
effectively.
    The criteria for this subfactor vary according to the type of 
project for which you are applying.
    (a) Public Facilities and Improvement Projects.
    (15 points). If a tribe assumes operation and maintenance 
responsibilities for the public facilities and improvements, a tribal 
resolution is included in the application that adopts the operation and 
maintenance plan and commits the necessary funds to provide for these 
responsibilities. In addition, the operation and maintenance plan is 
included in the application and addresses maintenance, repairs, 
insurance, and replacement reserves and includes a cost breakdown for 
annual expenses. If an entity other than the tribe commits to pay for 
operation and maintenance for the public facilities, a letter of 
commitment from the entity is included in the application that 
identifies the maintenance responsibilities and, if applicable, 
responsibilities for operations the entity will assume as well as 
necessary funds to provide for those responsibilities. Submission of 
the operation and maintenance plan is not required when an entity other 
than the tribe assumes operation and maintenance responsibilities. For 
public facility buildings only, a tribal resolution or letter of 
commitment is included in the application that identifies the source 
of, and commits the necessary amount of, operating funds for any 
recreation, social, or other services to be provided. In addition, 
letters of commitment from service providers are included that address 
both operating expenses and space needs.

[[Page 60491]]

    (10 points). If a tribe assumes operation and maintenance 
responsibilities for the public facilities and improvements, a tribal 
resolution is included in the application that adopts the operation and 
maintenance plan and commits the necessary funds to provide for these 
responsibilities. In addition, the operation and maintenance plan is 
included in the application and addresses most of the above items 
(maintenance, repairs, insurance, and replacement reserves) but does 
not include a satisfactory cost breakdown for annual expenses. If an 
entity other than the tribe commits to pay for operation and 
maintenance for the public facilities and maintenance, a letter of 
commitment from the entity is included in the application. The letter 
identifies the maintenance responsibilities and, if applicable, 
responsibilities for operations the entity will assume, but does not 
include information committing the necessary funds to provide for those 
responsibilities. Submission of the operation and maintenance plan is 
not required when an entity other than the tribe assumes operation and 
maintenance responsibilities. For public facility buildings only, a 
tribal resolution or letter of commitment is included in the 
application that identifies the source of, and commits the necessary 
amount of, operating funds for any recreation, social, or other 
services to be provided. In addition, letters of commitment from 
service providers are included that address both operating expenses and 
space needs. Information provided is sufficient to determine that the 
project will proceed effectively.
    (5 points). If a tribe assumes operation and maintenance 
responsibilities for the public facilities and improvements, a tribal 
resolution is included in the application that adopts the operation and 
maintenance plan and commits the necessary funds to provide for those 
responsibilities, or the operation and maintenance plan is included in 
the application and addresses most of the above items (maintenance, 
repairs, insurance, and replacement reserves). If an entity other than 
the tribe commits to pay for operation and maintenance for the public 
facilities and maintenance, the maintenance provider is identified and, 
if applicable, details the responsibilities for operations the entity 
will assume; however, no letter of commitment is included. For public 
facility buildings only, no tribal resolution or letter of commitment 
is included in the application that identifies the source of, and 
commits the necessary amount of, operating funds for any recreation, 
social, or other services to be provided. However, letters of 
commitment to provide services are included but do not address 
operating expenses and space needs. Information provided is sufficient 
to determine that the project will proceed effectively.
    (0 points). None of the above criteria is met.
    (b) New Housing Construction, Housing Rehabilitation, and 
Homeownership Assistance Projects.
    (15 points). The ongoing maintenance responsibilities are clearly 
identified for the tribe and the participants, as applicable. Any 
participant maintenance responsibilities are included on a statement to 
be signed by the participant as a condition of receiving grant 
assistance. In addition, the statement to be used is included in the 
application. If the tribe or another entity is assuming maintenance 
responsibilities, then the applicant must submit either a tribal 
resolution or letter of commitment to that effect.
    (10 points). Maintenance responsibilities are identified, but 
lacking in detail, and the above statement (if applicable) to be signed 
by the participant, or the tribal resolution or letter of commitment 
regarding maintenance responsibilities is submitted.
    (5 points). Tribal maintenance responsibilities are identified but 
participant responsibilities are either not addressed or do not exist, 
or there is no tribal resolution or letter of commitment or statement 
signed by the participant.
    (0 points). None of the above criteria is met.
    (c) Economic Development Projects.
    You must include information or documentation that addresses or 
provides all of the following in the application: a description of the 
organizational system and capacity of the entity that will operate the 
business; documents which show that formal provisions exist for 
separation of government functions from business operating decisions, 
an operating plan for the project, the feasibility and market analysis 
of the proposed business activity, and the financial viability of the 
project.
    Appropriate documents to include in the application to address 
these items include:
    (i) Articles of incorporation, by-laws, and resumes of key 
management positions and board members for the entity that will operate 
the business.
    (ii) Business operating plan.
    (iii) Market study no more than two years old and which has been 
conducted by an independent entity.
    (iv) Feasibility study no more than two years old which indicates 
how the proposed business will capture a fair share of the market, and 
which has been conducted by an independent entity.
    (v) Detailed cost summary for the development of the project.
    (vi) Five-year operating or cash flow financial projections.
    (vii) For the expansion of an existing business, copies of 
financial statements for the most recent three years (or the life of 
the business, if less than three years).
    The submitted documentation will be evaluated to determine the 
project's financial chance for success. The following information must 
be addressed to meet this requirement:
    (i) Does the business plan seem thorough and does the 
organizational structure have quality control and responsibilities 
built in?
    (ii) Does the business plan or market analysis indicate that a 
substantial market share is likely within five years?
    (iii) Do the costs appear to be reasonable given projected income 
and information about inputs?
    (iv) Does the business plan or cash flow analysis indicate that 
cash flow will be positive within the first year?
    (v) Is the financial statement clean with no indications of concern 
by the auditor?
    (15 points). All above documents applicable to the proposed project 
are included in your application and provide evidence that the 
project's chance for financial success is excellent.
    (8 points). All or most of the above documents applicable to the 
proposed project are included and provide evidence that the project's 
chance for financial success is reasonable.
    (0 points). Neither of the above criteria is met.
    (d) Microenterprise Programs.
    You must include the following information or documentation in the 
application that addresses or provides a description of how your 
microenterprise program will operate. Appropriate information to 
include in the application to address program operations includes:
    (i) Program description. A description of your microenterprise 
program including the types of assistance offered to microenterprise 
applicants and the types of entities eligible to apply for such 
assistance.
    (ii) Processes for selecting applicants. A description of your 
processes for analyzing microenterprise applicants' business plans, 
market studies, and

[[Page 60492]]

financial feasibility. For credit programs, you must describe your 
process for determining the loan terms (i.e. interest rate, maximum 
loan amount, duration, loan servicing provisions) to be offered to 
individual microenterprise applicants.
    (15 points). All of the above information or documentation 
applicable to the proposed project are thoroughly addressed in the 
application and the chances for success are excellent.
    (8 points). All or most of the above information or documentation 
applicable to the proposed project are addressed in the application and 
the chances for success are reasonable.
    (0 points). Neither of the above criteria is met.
    (e) Land Acquisition Projects to Support New Housing.
    Submissions must include the results of a preliminary investigation 
conducted by a qualified independent entity demonstrating that the 
proposed site has suitable soil conditions for housing and related 
infrastructure, has potable drinking water accessible for a reasonable 
cost, has access to utilities, vehicular access, drainage, nearby 
social and community services, and has no known environmental problems.
    (15 points). The submissions include all of the above-mentioned 
items and all necessary infrastructure is in place.
    (8 points). The submissions demonstrate that the proposed site(s) 
is/are suitable for housing but that not all necessary infrastructure 
is in place. A detailed description of resources to be used and a 
detailed implementation schedule for development of all necessary 
infrastructure demonstrates that such infrastructure, as needed for 
proposed housing development, will be developed in time for such 
development, but no later than two years after site purchase.
    (0 points) Neither of the above criteria is met.

Rating Factor 4: Leveraging Resources (10 Points)

    HUD believes that ICDBG funds can be used more effectively to 
benefit a larger number of Native American and Alaska Native persons 
and communities if projects are developed that use tribal resources and 
resources from other entities in conjunction with ICDBG funds. To 
encourage this, we will award points based on the percentage of non-
ICDBG resources provided relative to project costs as follows:

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

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

Rating Factor 5: Comprehensiveness and Coordination (5 Points)

    This factor addresses the extent to which your project planning and 
proposed implementation reflect a coordinated, community-based process 
of identifying and addressing needs

[[Page 60493]]

including assisting beneficiaries and the program to achieve self-
sufficiency and sustainability. Please note that the Logic Model, HUD 
Form 96010, is not required for Rating Factor 5 under the ICDBG 
Program. However, applicants may use this form to address program 
evaluation requirements under Rating Factor 1(1)b. of this NOFA, and 
measurable outputs and outcomes in section (2) of this factor.
    (1) (Up to 2 points). The application addresses the extent to which 
you have coordinated your proposed ICDBG activities with other 
organizations and tribal departments that are not directly 
participating in your proposed work activities (not project partners 
such as those listed under Rating Factor 4: Leveraging), but with which 
you share common goals and objectives and are working toward meeting 
these objectives in a holistic and comprehensive manner. For example, 
your project is consistent with and, to the extent possible, identified 
in the IHP (One-Year Financial Resources Narrative; Table 2, Financial 
Resources, part I, Line 1E; and Table 2, Financial Resources, part II) 
submitted by you or on your behalf for the IHBG Program. If the IHP for 
the IHBG program year that coincides with the implementation of the 
ICDBG-proposed project has not been submitted, you must provide an 
assurance that when submitted, the IHP will specifically reference the 
proposed project.
    (2) (Up to 3 points). Your proposed project will have measurable 
outputs and outcomes that will enhance community viability.
    Outputs must include, where applicable:
     Number of houses rehabilitated;
     Number of jobs created or obtained;
     Square feet for any public facility;
     Number of education or job training opportunities 
provided;
     Number of homeownership units constructed or financed;
     Number of businesses assisted (including number that are 
minority or Native American);
     Number of families proposed to be assisted with a drug-
elimination program, or with a program to reduce or eliminate health-
related hazards.
    Outcomes must include, where appropriate:
     Reduction in the number of families living in substandard 
housing;
     Increased income resulting from employment generated by 
project;
     Increased quality of life due to services provided by the 
public facility;
     Increased economic self-sufficiency of recipients of 
program beneficiaries;
     Increase in homeownership rates;
     Reduction of drug-related crime or health-related hazards.
    B. Reviews and Selection Process:
    1. Application Selection Process. You must meet all of the 
applicable threshold requirements listed in section IV.E.3. and 4. Your 
application must meet all screening for acceptance requirements and all 
identified applicant and project-specific thresholds. HUD will review 
each application and assign points in accordance with the selection 
factors described in this section.
    2. Threshold Compliance. The Area ONAP will review each application 
that passes the screening process to ensure that each applicant and 
each proposed project meets the applicant threshold requirements set 
forth in 24 CFR 1003.301(a) and the project-specific threshold 
requirements set forth in 24 CFR 1003.302 and section IV.E.3 and 4 of 
this NOFA.
    3. Past Performance. An applicant's past performance is evaluated 
under Rating Factor 1, Capacity of the Applicant. Applicants are 
encouraged to address all performance-related criteria prior to 
submission of an application. In order to meet the minimum point 
requirements outlined in this NOFA, an applicant must score a minimum 
of 15 points under Rating Factor 1.
    4. Rating Panels. The Area ONAP office for your jurisdiction, as 
listed in section IV.F.3., will rate applications. Rating panels may be 
used only for the summary review, after the application is rated, as 
discussed in section V.B.5. below.
    5. Rating. The Area ONAP will review and rate each project that 
meets the acceptance criteria and threshold requirements. After the 
applications are rated, a summary review of all applications will be 
conducted to ensure consistency in the application rating. The summary 
review will be performed by either the Grants Management Director (or 
designee) or by a panel composed of up to three staff members.
    The total points for all rating factors are 100. A maximum of 100 
points may be awarded under Rating Factors 1 through 5.
    6. Minimum Points. To be considered for funding, your application 
must receive a minimum of 15 points under Rating Factor 1 and an 
application score of 70 out of the possible total of 100.
    7. Ranking. All projects will be ranked against each other 
according to the point totals they receive, regardless of the type of 
project or component under which the points were awarded. Projects will 
be selected for funding based on the final ranking to the extent that 
funds are available. The Area ONAP will determine individual grant 
amounts in a manner consistent with the considerations set forth in 24 
CFR 1003.100(b)(2). Specifically, the Area ONAP may approve a grant 
amount less than the amount requested. In doing so, the Area ONAP may 
take into account the size of the applicant, the level of demand, the 
scale of the activity proposed relative to need and operational 
capacity, the number of persons to be served, the amount of funds 
required to achieve project objectives, and the reasonableness of the 
project costs. If the Area ONAP determines that there are not enough 
funds available to fund a project as proposed by the applicant, it may 
decline to fund that project and may fund the next highest-ranking 
project or projects for which adequate funds are available. In rank 
order, the Area ONAP may select additional projects for funding if one 
of the higher-ranking projects is not funded or if additional funds 
become available.
    8. Tiebreakers. When rating results in a tie among projects and 
insufficient resources remain to fund all tied projects, the Area ONAP 
will approve projects that can be fully funded over those that cannot 
be fully funded. When that does not resolve the tie, the Area ONAP will 
use the following factors in the order listed to resolve the tie:
    (a) The applicant that has not received an ICDBG over the longest 
period of time.
    (b) The applicant with the fewest active ICDBGs.
    (c) The project that would benefit the highest percentage of low- 
and moderate-income persons.
    9. Technical Deficiencies and Pre-award Requirements.
    a. Technical Deficiencies: If there are technical deficiencies in 
successful applications, you must satisfactorily address these 
deficiencies before HUD can make a grant award. After the application 
due date, HUD may not, consistent with its regulations in 24 CFR part 
4, subpart B, consider any unsolicited information you, the applicant, 
may want to provide. HUD may contact you to clarify an item in your 
application or to correct technical deficiencies. HUD may not seek 
clarification of items or responses that improve the substantive 
quality of your response to any rating factors. In order to not exclude 
applications from being rated and ranked, HUD may contact applicants to 
ensure proper completion of the application and will do so on a uniform 
basis for all applicants. Examples of curable (correctable) technical 
deficiencies include failure to

[[Page 60494]]

submit the proper certifications or failure to submit an application 
signed by an authorized official. In each case, HUD will notify 
applicants by facsimile or by USPS, return receipt requested. 
Clarifications or corrections of technical deficiencies in accordance 
with the information provided by HUD must be submitted within 14 
calendar days of the date of receipt of the HUD notification. (If the 
due date falls on a Saturday, Sunday, or federal holiday, your 
correction must be received by HUD on the next day that is not a 
Saturday, Sunday, or federal holiday). If the technical deficiency is 
not corrected within this time period, HUD will reject the application 
as incomplete and it will not be considered for funding.
    b. Pre-award Requirements: Before a grant agreement can be 
executed, successful applicants may be required to provide supporting 
documentation concerning the management, maintenance, operation, or 
financing of proposed projects. Such documentation may include 
additional specifications on the scope, magnitude, timing, or method of 
implementing the project, or information to verify the commitment of 
other resources required to complete, operate, or maintain the proposed 
project. Applicants will be provided 30 calendar days to respond to 
these requirements. No extensions will be provided. If you do not 
respond within the time period or you make an insufficient response, 
the Area ONAP will determine that you have not met the requirements and 
will withdraw the grant offer. You may not substitute new projects for 
those originally proposed in your application and any new information 
will not affect your project's rating and ranking. In accordance with 
the provisions of this NOFA, the Area ONAP will award grant amounts 
that had been allocated for applicants unable to meet pre-award 
requirements.
    10. Error and Appeals. Judgments made within the provisions of this 
NOFA and the program regulations (24 CFR part 1003) are not subject to 
claims of error. You may bring arithmetic errors in the rating and 
ranking of applications to the attention of the Area ONAPs within 30 
days of being informed of your score. If an arithmetic error was made 
in the application review and rating process that, when corrected, 
would result in the award of sufficient points to warrant the funding 
of an otherwise approvable project, the Area ONAPs may fund that 
project in the next funding round without further competition.
    11. HUD's Strategic Goals. Implementing HUD's Strategic Framework 
and Demonstrating Results. HUD is committed to ensuring that programs 
result in the achievement of HUD's strategic mission. To support this 
effort, grant applications submitted for HUD programs will be rated on 
how well they tie proposed outcomes to HUD's policy priorities and 
annual goals and objectives, and the quality of proposed evaluation and 
monitoring plans. HUD's Strategic Framework establishes the following 
goals and objectives for the Department:
    a. Increase homeownership opportunities:
    (1) Expand national homeownership opportunities.
    (2) Increase minority homeownership.
    (3) Make the homebuying 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.
    12. HUD Policy Priorities. HUD encourages applicants to undertake 
specific activities that will assist the Department in implementing its 
policy priorities and which help the Department achieve its goals for 
FY2005, when the majority of funding recipients will be reporting 
programmatic results and achievements. ICDBG applicants that include 
work activities which specifically address Policy Priority b (Improving 
Our Nation's Communities) will receive one point for addressing this 
Priority under section V.B 2., Rating Factor 3, Soundness of Approach.
    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 often must work aggressively to open up the realm of 
homeownership and rental opportunities to low- and moderate-income 
persons, persons with disabilities, the elderly, minorities, or persons 
with limited English proficiency. Many of these families are anxious to 
have a home of their own but are not aware of the programs and 
assistance that is available. Applicants are encouraged to address the 
housing, housing counseling, and other related supportive services 
needs of these individuals and coordinate their proposed activities 
with funding available through HUD's affordable housing programs and 
home loan programs. Proposed activities support strategic goals a, b 
and c.
    b. Improving our Nation's Communities. HUD wants to improve the 
quality of life for those living in distressed communities. Applicants 
are encouraged to include activities which:
    (1) Bring private capital into distressed communities to:

[[Page 60495]]

    (a) Finance business investments to grow new businesses;
    (b) Maintain and expand existing businesses;
    (c) Create a pool of funds for new small and minority-owned 
businesses;
    (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;
    (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 including activities which:
    (a) Provide public and social services;
    (b) Improve infrastructure and community facilities.
    These activities support Strategic Goals b, c, and d.
    c. Encouraging Accessible Design Features. As described in section 
VI.B.1.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 
regulations implementing them, provide for nondiscrimination based on 
disability and require housing and other facilities to incorporate 
certain features intended to provide for their use and enjoyment by 
persons with disabilities. HUD is encouraging applicants to add 
accessible design features beyond those required under civil rights 
laws and regulations. These features would eliminate many other 
barriers limiting the access of persons with disabilities to housing 
and other facilities. Copies of the Uniform Federal Accessibility 
Standards (UFAS) are available from the SuperNOFA Information Center 
(1-800-HUD-8929 or 1-800-HUD-2209 (TTY)) and also from the Office of 
Fair Housing and Equal Opportunity, U.S. Department of Housing and 
Urban Development, Room 5230, 451 Seventh Street, SW., Washington, DC 
20410; 202-755-5404 or 1-800-877-8399 (TTY Federal Information Relay 
Service).
    Accessible design features are intended to promote visitability and 
incorporate features of universal design as described below:
    (1) Visitability in New Construction and Substantial 
Rehabilitation. In areas where other accessibility requirements do not 
apply, 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/.
    These 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 which are useable and open to all residents increases 
opportunities for economic and personal self-sufficiency. More 
information on universal design is available from the Center for 
Universal Design, at http://www.ncsu.edu/www/ncsu/design/sod5/cud/ or 
the Resource Center on Accessible Housing and Universal Design, at 
http://www.abledata.com/Site_2/accessib.htm.
    These 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 this 
NOFA and the SuperNOFA. HUD also encourages states, units of local 
government, universities, colleges, and other organizations to partner 
with grassroots organizations, e.g., civic organizations, faith-
communities, and grassroots faith-based and other community-based 
organizations that have not been effectively utilized. These grassroots 
organizations have a strong history of providing vital community 
services such as assisting the homeless and preventing homelessness, 
counseling individuals and families on fair housing rights, providing 
elderly housing opportunities, developing first-time homeownership 
programs, increasing homeownership and rental housing opportunities in 
neighborhoods of choice, developing affordable and accessible housing 
in neighborhoods across the country, creating economic development 
programs, and supporting the residents of public housing facilities. 
HUD wants to make its programs more effective, efficient, and 
accessible by expanding opportunities for grassroots organizations to 
participate in developing solutions for their own neighborhoods. 
Additionally, HUD encourages applicants to include these grassroots 
faith-based and other community-based organizations in their workplans. 
Applicants, their partners, and participants must review the ICDBG NOFA 
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 if specified in the NOFA.
    (2) Definition of Grassroots Organizations.
    (a) HUD will consider an organization a ``grassroots organization'' 
if it is headquartered in the local community to which it provides 
services; and,

[[Page 60496]]

    (i) has a social services budget of $300,000 or less, or
    (ii) has six or fewer full-time equivalent employees.
    (b) Local affiliates of national organizations are not considered 
``grassroots.'' Local affiliates of national organizations are 
encouraged, however, to partner with grassroots organizations but must 
demonstrate that they are currently working with a grassroots 
organization (e.g., having a faith-community or civic organization, or 
other charitable organization provide volunteers).
    (c) The cap provided in paragraph (2)(a)(i) above includes only 
that portion of an organization's budget allocated to providing social 
services. It does not include other portions of the budget such as 
salaries and expenses not directly expended in the provision of social 
services.
    These 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 in 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-as-vi.html 
or HUD's Web site at http://www.hud.gov.
    These activities support Strategic Goals c and d.
    f. Ending Chronic Homelessness within Ten Years. President Bush has 
set a national goal to end chronic homelessness within ten years. HUD 
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) Establishing a set-aside of units of affordable housing for the 
chronically homeless;
    (3) Substance abuse treatment programs targeted to the homeless 
population;
    (4) Job training programs that will provide opportunities for 
economic self-sufficiency;
    (5) Counseling programs that assist homeless persons in finding 
housing, learning financial management and anger management, and 
building interpersonal relationships;
    (6) 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;
    (8) Applicants that are developing programs to meet this goal 
should be mindful of the requirements implementing section 404 of the 
Rehabilitation Act of 1973, in particular, 24 CFR 8.4(b)(1)(iv), 
8.4(c)(1), and 8.4(d).
    These activities support Strategic Goals b and c.
    13. 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 their respective programs.

VI. Award Administration Information

    A. Anticipated Announcement and Award Dates. Awards are expected to 
be announced by May 20, 2005. Once a congressional release date has 
been obtained, a grant award letter, a grant agreement, and other forms 
and certifications will be mailed to the recipient for signature and 
return to the Area ONAP.
    As soon as rating and ranking are completed and it has been 
determined that the applicant has complied with any pre-award 
requirements (see section V.B.9.b. of this NOFA), the grant will be 
awarded. The grant agreement, which is signed by HUD and the recipient, 
establishes the conditions by which both the Area ONAP and the 
recipient must abide during the life of the grant. All grants are 
conditioned upon the completion of all environmental obligations and 
approval of release of funds by the Area ONAP in accordance with the 
requirements of 24 CFR part 58. HUD may impose other grant conditions 
if additional actions or approvals are required before the use of 
funds.
    B. Administrative and National Policy Requirements.
    1. Statutory and Regulatory Requirements.
    a. Environmental Requirements. As required by 24 CFR 1003.605, 
ICDBG grantees must perform environmental reviews of ICDBG activities 
in accordance with 24 CFR part 58 (as amended September 29, 2003). 
Grantees and other participants in the development process may not 
commit or expend any ICDBG or nonfederal funds on project activities 
(other than those listed in 24 CFR 58.22(f), 58.34 or 58.35(b)) until 
HUD has approved a Request for Release of Funds and environmental 
certification submitted by the grantee. The expenditure or commitment 
of ICDBG or nonfederal funds for such activities prior to HUD approval 
may result in the denial of assistance for the project or activities 
under consideration.
    b. Indian Preference. HUD has determined that the ICDBG program is 
subject to section 7(b) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450e(b)). The provisions and requirements for 
implementing this section are in 24 CFR 1003.510.
    c. Anti-discrimination Provisions. Under the authority of section 
107(e)(2) of the CDBG statute, HUD waived the requirement that 
recipients comply with the anti-discrimination provisions in section 
109 of the CDBG statute with respect to race, color, and national 
origin. You must comply with the other prohibitions against 
discrimination in section 109 (HUD's regulations for section 109 are in 
24 CFR part 6) and with the Indian Civil Rights Act.
    d. Conflict of Interest. In addition to the conflict of interest 
requirements with respect to procurement transactions found in 24 CFR 
85.36 and 84.42, as applicable, the provisions of 24 CFR 1003.606 apply 
to such activities as the provision of assistance by the recipient or 
sub-recipients to businesses, individuals, and other private entities 
under eligible activities that authorize such assistance.
    e. Economic Opportunities for Low- and Very Low-Income Persons 
(Section

[[Page 60497]]

3). Section 3 requirements apply to the ICDBG Program, but as stated in 
24 CFR 135.3(c), the procedures and requirements of 24 CFR part 135 
apply to the maximum extent consistent with, but not in derogation of, 
compliance with Indian Preference.
    2. OMB Circulars and Government-wide Regulations Applicable to 
Financial Assistance Programs. The policies, guidance, and requirements 
of OMB Circular A-87, Cost Principles Applicable to Grants, Contracts 
and other Agreements with State and Local Governments; and OMB Circular 
A-122, Cost Principles for Nonprofit Organizations; and OMB Circular A-
133, Audits of State and Local Governments, and Nonprofit 
Organizations; and the regulations at 24 CFR part 85, Administrative 
Requirements for Grants and Cooperative Agreements to State, Local and 
Federally Recognized Indian Tribal Governments apply to the award, 
acceptance, and use of assistance under the ICDBG program and to the 
remedies for noncompliance, except when inconsistent with the 
provisions of the Consolidated Appropriations Act, 2004 (Public Law 
108-199, approved January 23, 2004) or the ICDBG program regulations at 
24 CFR part 1003. Copies of the OMB Circulars may be obtained from EOP 
publications. Room 22000, New Executive Office Building, Washington, DC 
20503, telephone (202) 395-3080 (this is not a toll-free number) or 
(800) 877-8339 (TTY Federal Information Relay Service). Information may 
also be obtained from the OMB Web site at http://www.whitehouse.gov/omb/circulars/index.html.
    C. Reporting.
    1. Post Award Reporting Requirements.
    a. Quarterly Financial Reports. Grant recipients must submit 
quarterly to the Area ONAP a SF-272, Federal Cash Transaction Report. 
The report accounts for funds received and disbursed by the recipient.
    b. Annual Status and Evaluation Report. Recipients are required to 
submit this report in narrative form annually. The report is due 45 
days after the end of the federal fiscal year and at the time of grant 
close-out. The report must include:
    (1) The narrative part must address the progress made in completing 
approved activities and include a list of work remaining, along with a 
revised implementation schedule if necessary. This should include 
progress on any outputs or outcomes specified in Rating Factor 5;
    (2) A breakdown of funds spent on each major project activity or 
category; and
    (3) If the project has been completed, an evaluation of the 
effectiveness of the project in meeting the community development needs 
of the grantee, as well as the final outputs and outcomes.
    c. Minority Business Enterprise Report. Recipients must submit this 
report on contract and subcontract activity during the first half of 
the fiscal year by April 10 and by October 10 for the second half of 
the fiscal year.
    d. A close-out report must be submitted by the recipient within 90 
days of completion of grant activities. The report consists of the 
final Financial Status Report (forms SF 269 or 269A), the final Status 
and Evaluation Report, and the Close-Out Agreement.
    More information regarding these requirements may be found at 24 
CFR 1003.506 and 1003.508.

VII. Agency Contact(s) (Required)

    A. General Questions. You should direct general program questions 
to the Area ONAP serving your area or to Barbara Gallegos, Denver 
Program Office of Native American Programs, Office of Public and Indian 
Housing, Department of Housing and Urban Development, 1999 Broadway, 
Suite 3390, Denver, CO 80202; telephone 800-561-5913. Persons with 
speech or hearing impairments may call HUD's TTY number 202-708-0770, 
or 1-800-877-8339 (the Federal Information Relay Service TTY). Other 
than the ``800'' numbers, these numbers are not toll-free.
    B. Technical Assistance. Before the application due date, HUD staff 
will be available to provide you with general guidance and technical 
assistance about this NOFA. However, HUD staff is not permitted to 
assist in preparing your application. Following selection of 
applicants, but before awards are made, HUD staff are available to 
assist in clarifying or confirming information that is a prerequisite 
to the offer of an award.

VIII. Other Information

    A. Authority. The authority for this program is Title I of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.), 
the Consolidated Appropriations Act of 2004 (Pub.L. 108-199, approved 
January 23, 2004), and the program regulations in 24 CFR part 1003.
    B. NOFA Training. Training for potential applicants on the NOFA 
requirements will be provided by the Area ONAPs prior to the 
application deadline. Applicants should contact the Area ONAP for their 
jurisdiction as identified in section IV.C. 4. of this NOFA.
    C. Section 102 of HUD Reform Act, Applicant Debriefing, 
Documentation, and Public Access Requirements. Section 102 of the 
Department of Housing and Urban Development Reform Act of 1989 (42 
U.S.C. 3545) (HUD Reform Act) and the regulations codified in 24 CFR 
part 4, subpart A, contain a number of provisions that are designed to 
ensure greater accountability and integrity in the provision of certain 
types of assistance administered by HUD. On January 14, 1992, HUD 
published a notice that also provides information on the implementation 
of section 102 (57 FR 1942). The documentation, public access, and 
disclosure requirements of section 102 apply to assistance awarded 
under this NOFA.
    1. Documentation, Public Access, and Disclosure Requirements. HUD 
will ensure that documentation and other information regarding each 
application submitted pursuant to this NOFA are sufficient to indicate 
the basis upon which assistance was provided or denied. This material, 
including any letters of support, will be made available for public 
inspection for a five-year period beginning not less than 30 days after 
the award of the assistance. Material will be made available in 
accordance with the Freedom of Information Act (5 U.S.C. 552) and HUD's 
implementing regulations (24 CFR part 15).
    2. HUD Form 2880. HUD will make available to the public for five 
years all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this NOFA. Update reports (also reported on HUD Form 
2880) will be made available along with the applicant disclosure 
reports, but in no case for a period of less than three years. All 
reports, both applicant disclosures and updates, will be made available 
in accordance with the Freedom of Information Act (5 U.S.C. 552) and 
HUD's implementing regulations (24 CFR part 5).
    3. Publication of Recipients of HUD Funding. HUD's regulations at 
24 CFR part 4 provide that HUD will publish a notice in the Federal 
Register to notify the public of all decisions made by the Department 
to provide:
    a. Assistance subject to section 102(a) of the HUD Reform Act; and
    b. Assistance provided through grants or cooperative agreements on 
a discretionary (non-formula, non-demand) basis, but that is not 
provided on the basis of a competition.
    4. Debriefing. Beginning 30 days after the awards for assistance 
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announced and for at least 120 days after awards for assistance are 
announced publicly, HUD will provide a debriefing to any applicant 
requesting one on their application. All debriefing requests must be 
made in writing or by e-mail by the authorized official whose signature 
appears on the SF-424 form or by his or her successor in office, and 
submitted to the Area Office you submitted your application to. 
Information provided during a debriefing will include, at a minimum, 
the final score you received for each rating factor, final evaluator 
comments for each rating factor, and the final assessment indicating 
the basis upon which assistance was provided or denied.
    D. Section 103 of the HUD Reform Act. HUD's regulations 
implementing section 103 of the Department of Housing and Urban 
Development Reform Act of 1989 (42 U.S.C. 3537a), codified in 24 CFR 
part 4, subpart B, Sec.  4.26(2)(c) et seq. and Sec.  4.28 apply to 
this funding competition. The regulations continue to apply until the 
announcement of the selection of successful applicants. HUD employees 
involved in the review of applications and in the making of funding 
decisions are limited by the regulations from providing advance 
information to any person (other than an authorized employee of HUD) 
concerning funding decisions or from otherwise giving any applicant an 
unfair competitive advantage. Persons who apply for assistance in this 
competition should confine their inquiries to the subject areas 
permitted under 24 CFR part 4. Applicants or employees who have ethics-
related questions should contact the HUD Ethics Law Division at 202-
708-3815. (This is not a toll-free number.) HUD employees who have 
specific program questions should contact the appropriate field office 
counsel or Headquarters counsel for the program to which the question 
pertains.
    E. Federal E-Grants Information. 1. Streamlining Federal Financial 
Assistance. The Federal Financial Assistance Management Improvement Act 
of 1999 (Public Law 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, which will provide ``one-stop shopping'' for 
funding opportunities for all Federal programs, 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 that 
further streamline the application process, making it easier for you, 
our customers, to apply for funding.
    The first segment of the Grants.gov Initiative focuses on allowing 
the public to easily FIND funding opportunities and then APPLY via 
Grants.gov. Funding decisions would 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. It is also placing copies of the electronic application on http://www.Grants.gov/Apply. Applicants should note that the URL for the 
grants.gov/Apply site is case sensitive, so please carefully copy the 
URL provided in this Notice to avoid message errors.
    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 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.
    F. Paperwork Reduction Act Statement. The information collection 
requirements in this NOFA 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 2577-0191. 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 the collection displays a valid OMB control number. 
Public reporting burden for the collection of information is estimated 
to average 43 hours per annum for the application and grant 
administration. This includes the time for collecting, reviewing, and 
reporting the data. The information will be used for grantee selection 
and monitoring the administration of funds. Response to this request 
for information is required in order to receive the benefits to be 
derived.

    Dated: October 1, 2004.
Michael Liu,
Assistant Secretary for Public and Indian Housing.

Appendix A:

    Data to Determine Need for Factor 2 (for Applicants for New 
Housing Construction, Housing Rehabilitation, Land Acquisition to 
Support New Housing, and Homeownership Assistance Projects) For 
applicants submitting applications for New Housing Construction, 
Housing Rehabilitation, Land Acquisition to Support New Housing, and 
Homeownership Acquisition Projects: The need for the proposed 
project for Factor 2 is determined by utilizing data from the 
tribe's 2004 IHBG formula information. The data is contained in 
appendix A. Should you disagree with this information, please 
consult the IHBG formula customer service center at 800-410-8808 for 
the process for challenging IHBG formula data. Persons with hearing 
and speech impairments should call 800-505-5908 (TTY).
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[FR Doc. 04-22576 Filed 10-4-04; 2:15 pm]
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