[Federal Register Volume 69, Number 212 (Wednesday, November 3, 2004)]
[Notices]
[Pages 64136-64224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-24275]



[[Page 64135]]

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Part II





Department of Housing and Urban Development





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Notice of Funding Availability for Revitalization of Severely 
Distressed Public Housing; HOPE VI Revitalization Grants Fiscal Year 
2004; Notice

  Federal Register / Vol. 69, No. 212 / Wednesday, November 3, 2004 / 
Notices  

[[Page 64136]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4921-N-01]


Notice of Funding Availability for Revitalization of Severely 
Distressed Public Housing; HOPE VI Revitalization Grants Fiscal Year 
2004

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

ACTION: Notice of funding availability.

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    Overview Information:
    A. Federal Agency Name. Department of Housing and Urban 
Development, Office of Public and Indian Housing.
    B. Funding Opportunity Title. Revitalization of Severely Distressed 
Public Housing HOPE VI Revitalization Grants Fiscal Year 2004.
    C. Announcement Type. Initial announcement.
    D. Funding Opportunity Number. The Federal Register number for this 
NOFA is: FR-4921-N-01. The OMB approval number for this program is: 
2577-0208.
    E. Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA 
number for this NOFA is 14-866, ``Demolition and Revitalization of 
Severely Distressed Public Housing (HOPE VI).''
    F. Dates. 1. Application Due Date: The application due date shall 
be February 1, 2005. See the General Section of the SuperNOFA (69 FR 
26941) for application submission, delivery, and timely receipt 
requirements.
    2. Estimated Grant Award Date: The estimated award date will be 
approximately May 2, 2005.
    G. Optional, Additional Overview Content Information. 1. This NOFA 
announces the availability of approximately $120 million in FY2004 
funds for HOPE VI Revitalization Program grants, with approximately $20 
million additional for grant-related housing choice voucher (HCV) 
assistance.
    2. The maximum amount of each grant award is $20 million. It is 
anticipated that six grant awards will be made.
    3. Housing choice voucher assistance is available to successful 
applicants that receive the revitalization grant award. The dollar 
amount of HCV assistance is in addition to the $20 million maximum 
award amount.
    4. All public housing authorities (PHAs) with severely distressed 
public housing are eligible to apply. PHAs that manage only a HCV 
program, tribal PHAs and tribally-designated housing entities are not 
eligible.
    5. A match of five percent is required.
    6. Each applicant may submit only one HOPE VI revitalization 
application.
    7. Application materials may be obtained over the Internet from 
HUD's grants site: http://www.hud.gov/offices/adm/grants/otherhud.cfm. 
Technical corrections and frequently asked questions will also be 
posted on this Web site.
    8. HUD's general policy requirements apply to all HUD federal 
financial assistance NOFAs for Fiscal Year (FY) 2004. These policies 
cover those NOFAs issued under HUD's Super Notice of Funding 
Availability (SuperNOFA) (69 FR 26941) as well as those issued after 
the SuperNOFA is published in the Federal Register.

Full Text of Announcement

I. Funding Opportunity Description

    A. Program Description. In accordance with Section 24(a) of the 
United States Housing Act of 1937 (1937 Act) (42 U.S.C. 1437v), the 
purpose of HOPE VI revitalization grants is to assist PHAs to:
    1. Improve the living environment for public housing residents of 
severely distressed public housing projects through the demolition, 
rehabilitation, reconfiguration, or replacement of obsolete public 
housing projects (or portions thereof);
    2. Revitalize sites (including remaining public housing dwelling 
units) on which such public housing projects are located and contribute 
to the improvement of the surrounding neighborhood;
    3. Provide housing that will avoid or decrease the concentration of 
very low-income families; and
    4. Build sustainable communities.
    B. Authority. 1. The funding authority for HOPE VI revitalization 
grants under this HOPE VI NOFA is provided by the Consolidated 
Appropriations Act, 2004 (Pub. L. 108-199, approved January 23, 2004) 
under the heading ``Revitalization of Severely Distressed Public 
Housing (HOPE VI).''
    2. The program authority for the HOPE VI program is Section 24 of 
the 1937 Act, as amended by Section 402 of the HOPE VI Program 
Reauthorization and Small Community Mainstreet Rejuvenation and Housing 
Act of 2003 (Pub. L. 108-186, approved December 16, 2003).
    C. Definitions. 1. Developer. A developer is an entity contracted 
to develop (and possibly operate) a mixed finance development that 
includes public housing units, pursuant to 24 CFR part 941, subpart F. 
A developer most often has an ownership interest in the entity that is 
established to own and operate the replacement units (e.g., as the 
general partner of a limited partnership).
    2. Leverage. See Section III.C.4. and IV.B.6.c. of this NOFA for 
the meaning of leverage.
    3. Replacement Housing. Under this HOPE VI NOFA, a HOPE VI 
replacement housing unit shall be deemed to be any combination of 
public housing rental units, eligible homeownership units under Section 
24(d)(1)(J) of the 1937 Act, and HCV assistance that does not exceed 
the number of units demolished and disposed of at the targeted severely 
distressed public housing project.
    4. Severely Distressed. a. In accordance with Section 24(j)(2) of 
the 1937 Act, the term ``severely distressed public housing'' means a 
public housing project (or building in a project) that:
    (1) Requires major redesign, reconstruction, or redevelopment--or 
partial or total demolition--to correct serious deficiencies in the 
original design (including inappropriately high population density), 
deferred maintenance, physical deterioration or obsolescence of major 
systems, and other deficiencies in the physical plan of the project;
    (2) Is a significant contributing factor to the physical decline 
of, and disinvestment by public and private entities in, the 
surrounding neighborhood;
    (3) (a) Is occupied predominantly by families who are very low-
income families with children, have unemployed members, and are 
dependent on various forms of public assistance; (b) has high rates of 
vandalism and criminal activity (including drug-related criminal 
activity) in comparison to other housing in the area; or (c) is lacking 
in sufficient appropriate transportation, supportive services, economic 
opportunity, schools, civic and religious institutions, or public 
services, resulting in severe social distress in the project;
    (4) Cannot be revitalized through assistance under other programs, 
such as the Capital Fund and Operating Fund programs for public housing 
under the 1937 Act, or the programs under Sections 9 or 14 of the 1937 
Act (as in effect before the effective date under Section 503(a) of the 
Quality Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, 
approved October 21, 1998), because of cost constraints and inadequacy 
of available amounts; and
    (5) In the case of an individual building:
    (a) Is sufficiently separable from the remainder of the project of 
which the

[[Page 64137]]

building is part, such that the revitalization of the building is 
feasible; or
    (b) Was part of a project described in your application's response 
to Section V.A. of this NOFA that has been legally vacated or 
demolished, but for which HUD has not yet provided replacement housing 
assistance (other than tenant-based assistance). ``Replacement housing 
assistance'' are funds that have been furnished by HUD to perform major 
rehabilitation on, or reconstruction of, the public housing units that 
have been legally vacated or demolished.
    b. For the purposes of the ``severely distressed'' threshold 
requirement, Replacement Housing Factor funds will not be considered as 
``replacement housing assistance.''
    c. A severely distressed project that has been legally vacated or 
demolished (but for which HUD has not yet provided replacement housing 
assistance, other than tenant-based assistance) must have met the 
definition of physical distress not later than the day the demolition 
application approval letter was dated by HUD.
    D. Eligible Revitalization Activities. HOPE VI Revitalization 
grants may be used for activities to carry out revitalization programs 
for severely distressed public housing in accordance with Section 24(d) 
of the 1937 Act. Revitalization activities approved by HUD must be 
conducted in accordance with the requirements of this NOFA. The 
following is a list of eligible activities.
    1. Relocation. Relocation, including reasonable moving expenses, 
for residents displaced as a result of the revitalization of the 
project. See Sections III.C., IV.B. and V.A.6. of this NOFA for 
relocation requirements.
    2. Demolition. Demolition of dwelling units or nondwelling 
facilities, in whole or in part, although demolition is not a required 
element of a HOPE VI Revitalization Plan.
    3. Disposition. Disposition of a severely distressed public housing 
site, by sale or lease, in whole or in part, in accordance with Section 
18 of the 1937 Act and implementing regulations at 24 CFR part 970. A 
lease of one year or more that is not incident to the normal operation 
of a project is considered a disposition that is subject to Section 18 
of the 1937 Act.
    4. Rehabilitation and Physical Improvement. Rehabilitation and 
physical improvement of public housing and community facilities 
primarily intended to facilitate the delivery of community and 
supportive services for residents of the project and residents of off-
site replacement housing, in accordance with 24 CFR 968.112(b), (d), 
(e), and (g)-(o) and 24 CFR 968.130 and 968.135(b) and (d) or successor 
regulations, as applicable.
    5. Development. Development of public housing replacement units and 
other units (e.g., market-rate units), provided a need exists for such 
units and such development is performed with non-public housing funds.
    6. Homeownership Activities. Assistance involving the 
rehabilitation and development of homeownership units. Assistance may 
include:
    a. Downpayment or closing cost assistance;
    b. Second mortgages; or
    c. Construction or permanent financing for new construction, 
acquisition, or rehabilitation costs related to homeownership 
replacement units.
    7. Acquisition. Acquisition of rental units, land for the 
development of off-site replacement units, and land for economic 
development-related activities.
    8. Management Improvements. Necessary management improvements, 
including transitional security activities.
    9. Administration, Planning, Etc. Administration, planning, 
technical assistance, and other activities (including architectural and 
engineering work, program management, and reasonable legal fees) that 
are related to the implementation of the Revitalization Plan, as 
approved by HUD. See Cost Control Standards in Section IV.E. of this 
NOFA.
    10. Community and Supportive Services (CSS). a. The CSS component 
of the HOPE VI program encompasses all activities that are designed to 
promote upward mobility, self-sufficiency, and improved quality of life 
for the residents of the public housing project involved.
    b. CSS activities. CSS activities may include, but are not limited 
to:
    (1) Educational activities that promote learning and serve as the 
foundation for young people from infancy through high school 
graduation, helping them to succeed in academia and the professional 
world. Such activities, which include after-school programs, mentoring, 
and tutoring, must be created with strong partnerships with public and 
private educational institutions.
    (2) Adult educational activities, including remedial education, 
literacy training, tutoring for completion of secondary or 
postsecondary education, assistance in the attainment of certificates 
of high school equivalency, and English as a Second Language courses, 
as needed.
    (3) Readiness and retention activities, which frequently are key to 
securing private sector commitments to the provision of jobs.
    (4) Employment training activities that include results-based job 
training, preparation, counseling, development, placement, and follow-
up assistance after job placement.
    (5) Programs that provide entry-level, registered apprenticeships 
in construction, construction-related, maintenance, or other related 
activities. A registered apprenticeship program is a program that has 
been registered with either a State Apprenticeship Agency recognized by 
the Department of Labor's (DOL) Office of Apprenticeship Training, 
Employer and Labor Services (OATELS) or, if there is no recognized 
state agency, by OATELS. See also DOL regulations at 29 CFR part 29.
    (6) Life skills training on topics such as parenting, consumer 
education, and family budgeting.
    (7) Creation and operation of credit unions to serve residents, 
including capitalization and technical assistance to foster new credit 
unions on-site and to encourage existing community credit unions to 
expand their coverage to include on-site coverage.
    (8) Homeownership counseling that is scheduled to begin promptly 
after grant award so that, to the maximum extent possible, qualified 
residents will be ready to purchase new homeownership units when they 
are completed. The Family Self-Sufficiency program can also be used to 
promote homeownership, providing assistance with escrow accounts and 
counseling.
    (9) Coordinating with health care providers or providing on-site 
space for health clinics, doctors, wellness centers, dentists, etc. 
that will primarily serve the public housing residents. HOPE VI funds 
may not be used to provide direct medical care to residents.
    (10) Substance and alcohol abuse treatment and counseling.
    (11) Activities that address domestic violence treatment and 
prevention.
    (12) Child care services that provide sufficient hours of operation 
to facilitate parental access to education and job opportunities, serve 
appropriate age groups, and stimulate children to learn.
    (13) Transportation, as necessary, to enable all family members to 
participate in available CSS activities and to commute to their places 
of employment.
    (14) Entrepreneurship training and mentoring, with the goal of 
establishing resident-owned businesses.
    11. Leveraging. Leveraging other resources, including additional 
housing

[[Page 64138]]

resources, supportive services, job creation, and other economic 
development uses on or near the project that will benefit future 
residents of the site.
    12. SuperNOFA Reference. Section I, ``Funding Opportunity 
Description,'' of the Notice of HUD's Fiscal Year 2004 Notice of 
Funding Availability (NOFA) Policy Requirements and General Section to 
the Super NOFA for HUD's Discretionary Programs (SuperNOFA), Docket No. 
FR-4900-N-01, published in the Federal Register on May 14, 2004, is 
hereby incorporated by reference.

II. Award Information

    A. Availability of HOPE VI Funds.

------------------------------------------------------------------------
                                                         Funds available
                                                          for award in
                  Type of assistance                      this HOPE VI
                                                              NOFA
                                                          (approximate)
------------------------------------------------------------------------
Revitalization Grants.................................      $120,000,000
Housing Choice Voucher Assistance.....................        20,000,000
                                                       -----------------
    Total.............................................       140,000,000
------------------------------------------------------------------------

    1. Revitalization Grants. Approximately $120 million of the FY2004 
HOPE VI appropriation has been allocated to fund HOPE VI Revitalization 
grants and will be awarded in accordance with this NOFA. There will be 
approximately six awards.
    2. Housing Choice Voucher Assistance. Approximately $20 million of 
the HOPE VI appropriation will be allocated for Housing Choice Voucher 
(HCV) assistance. HCV assistance will be provided to HOPE VI 
Revitalization NOFA awardees. If $20 million is more than the amount 
necessary to fund the HOPE VI grantee's HCV needs, the remaining funds 
will be used for other eligible activities under Section 24 of the 1937 
Act.
    5. SuperNOFA Reference. Section II., ``Funding Available,'' of the 
SuperNOFA is hereby incorporated by reference.

III. Eligibility Information

    A. Eligible Applicants. 1. PHAs that have severely distressed 
housing in their inventory and are otherwise in conformance with the 
threshold requirements provided in Section III.C. of this NOFA. See 
Section IV.B.4. of this NOFA for threshold documentation requirements.
    2. Housing Choice Voucher Programs Only and Tribal Housing 
Agencies. PHAs that only administer HCV programs, e.g., Section 8, HCV, 
and tribal PHAs and tribally-designated housing entities, are not 
eligible to apply.
    3. Troubled Status. If HUD has designated your housing authority as 
troubled pursuant to Section 6(j)(2) of the 1937 Act, HUD will use 
documents and information available to it to determine whether you 
qualify as an eligible applicant. In accordance with Section 24(j) of 
the 1937 Act, the term ``applicant'' means:
    a. Any PHA that is not designated as ``troubled'' pursuant to 
Section 6(j)(2) of the 1937 Act; b. Any PHA for which a private housing 
management agent has been selected, or a receiver has been appointed, 
pursuant to Section 6(j)(3) of the 1937 Act; and c. Any PHA that is 
designated as ``troubled'' pursuant to Section 6(j)(2) of the 1937 Act 
and that:
    (1) Is designated as troubled principally for reasons that will not 
affect its capacity to carry out a revitalization program;
    (2) Is making substantial progress toward eliminating the 
deficiencies of the agency that resulted in its troubled status; or
    (3) Is otherwise determined by HUD to be capable of carrying out a 
revitalization program.
    B. Cost Sharing or Matching.
    1. Match Requirements.
    a. Revitalization Grant Match. HUD is required by the Quality 
Housing and Work Responsibility Act (42 U.S.C. 1437v(c)(1)(A)) to 
include the requirement for matching funds for all HOPE VI-related 
grants. You are required to have in place a match in the amount of 5 
percent of the requested grant amount in cash or in-kind donations. 
Applications that do not demonstrate the minimum 5 percent match will 
not be considered for funding.
    b. Additional Community and Supportive Services (CSS) Match.
    (1) In addition to the 5 percent revitalization grant match in 
Section a. above, you may be required to have in place a CSS match. 
Funds used for the Revitalization grant match cannot be used for the 
CSS match.
    (2) If you are selected for funding through this NOFA, you may use 
up to 15 percent of your grant for such activities. However, if you 
propose to use more than 5 percent of your HOPE VI grant for CSS 
activities, you must have in place funds from sources other than HOPE 
VI, that match the amount between 5 and 15 percent of the grant that 
you will use for CSS activities.
    c. In accordance with Section 24(c) of the Act, for purposes of 
calculating the amount of matching funds required by Sections a. and b. 
above, you may include amounts from public housing sources other than 
HOPE VI Revitalization (such as HOPE VI Demolition grants and Capital 
Funds may be included). In addition, other federal sources, any state 
or local government source, any private contributions, the value of 
donated material or buildings, the value of any lease on a building, 
the value of the time and services contributed by volunteers, and the 
value of any other in-kind services or administrative costs provided.
    d. Match donations must be firmly committed. ``Firmly committed'' 
means that the amount of match resources and their dedication to HOPE 
VI Revitalization activities must be explicit, in writing, and signed 
by a person authorized to make the commitment.
    e. You may propose to use your own non-public housing grant funds 
to meet the match requirement.
    f. Matching funds must be directly applicable to the revitalization 
of the site and the transformation of the lives of residents.
    g. The PHA's staff time is not an eligible cash or in-kind match.
    h. See Section IV.B.3 of this NOFA for match documentation 
requirements.
    C. Other.
    1. Thresholds. If you have not met a threshold, or have not 
included in the application the complete, correct, required 
documentation that demonstrates the threshold has been met, the 
application will not be rated or ranked and will be ineligible for 
funding. Threshold insufficiency cannot be cured after the application 
due date. See Section IV.B. of this NOFA for documentation 
requirements.
    a. One application. Each applicant may submit only one HOPE VI 
Revitalization application as described in this NOFA. If a single 
applicant submits more than one application, all applications will be 
disqualified and no application will be eligible for funding.
    b. Appropriateness of Proposal. In accordance with Section 24(e)(1) 
of the 1937 Act, each application must demonstrate the appropriateness 
of the proposal (revitalization plan) in the context of the local 
housing market relative to other alternatives. You must briefly discuss 
other possible alternatives to your proposal and explain why your plan 
is more appropriate. This is a statutory requirement and an application 
threshold. If you do not demonstrate the appropriateness of the 
proposal (revitalization plan) in the context of the local housing 
market relative to other alternatives, your application will not be 
rated or ranked and will be ineligible for funding. Examples of 
alternative proposals may include:

[[Page 64139]]

    (1) Rebuilding or rehabilitating an existing project or units at an 
off-site location that is in an isolated, non-residential, or otherwise 
inappropriate area;
    (2) Proposing a range of incomes, housing types (rental, 
homeownership, market-rate, public housing, townhouse, detached house, 
etc.), or costs which cannot be supported by a market analysis; or
    (3) Proposing to use the land in a manner that is contrary to the 
goals of your agency.
    c. Contiguous, Single, and Scattered-Site Projects. Except as 
provided in sections (1) and (2) below, each application must target 
one severely distressed public housing project (i.e., with one project 
number).
    (1) Contiguous Projects. Each application may request funds for 
more than one project if those projects are immediately adjacent to one 
another or within a quarter-mile of each other. If you include more 
than one project in your application, you must provide a map that 
clearly indicates that the projects are within a quarter-mile of each 
other. If HUD determines that they are not, your application will be 
ineligible for funding.
    (2) Scattered Site Projects. Your application may request funds to 
revitalize a scattered site public housing project. The sites targeted 
in an application proposing to revitalize scattered sites (regardless 
of whether the scattered sites are under multiple project numbers) must 
fall within an area with a one-mile radius. You may identify a larger 
site if you can show that all of the targeted scattered site units are 
located within the hard edges (e.g., major highways, railroad tracks, 
lakeshore, etc.) of a neighborhood. If you propose to revitalize a 
project that extends beyond a one-mile radius or is otherwise beyond 
the hard edges of a neighborhood, your application will not be rated or 
ranked and will be ineligible for funding.
    d. Desegregation Orders. You must be in full compliance with any 
desegregation or other court order and voluntary compliance agreements 
related to Fair Housing (e.g., Title VI of the Civil Rights Act of 
1964, the Fair Housing Act, and Section 504 of the Rehabilitation Act 
of 1973) that affects your public housing program and that is in effect 
on the date of application submission. If you are not in full 
compliance with any desegregation or other court orders, your 
application will be ineligible for funding.
    e. Non-Public Housing Funding for Non-Public Housing or Replacement 
Units. If the application demonstrates that you are planning to use 
public housing funds, which include HOPE VI funds, to develop: retail 
or commercial space; economic development space (community building, 
etc.); or housing units that are not Replacement Housing (See Section 
I.C. of this NOFA), your application will not be rated or ranked and 
will be ineligible for funding. See Section IV.B.4. for documentation 
requirements regarding this threshold.
    f. Open Inspector General Audits. (1) If you have an open Inspector 
General (IG) or Government Accountability Office (GAO) audit finding 
that has not been resolved to HUD's satisfaction before the due date of 
this NOFA, the application will not be rated or ranked and will be 
ineligible for funding.
    (2) HUD's decision regarding whether a charge, lawsuit, or a letter 
of findings has been satisfactorily resolved will be based on whether 
appropriate actions have been taken to address the findings.
    g. Performance of Existing HOPE VI Grantees. (1) The application 
will not be rated or ranked and will be ineligible for funding if you 
have an existing HOPE VI Revitalization grant, and
    (a) The grant development is delinquent due to actions or inactions 
that are not beyond the control of the grantee; and
    (b) The grantee is not making substantial progress toward 
eliminating the delinquency.
    (2) ``Delinquent'' means that resident relocation, unit demolition, 
unit construction, unit rehabilitation, unit occupancy, or unit re-
occupancy have not occurred in accordance with the grantee's current 
Revitalization Plan.
    (3) Reasons that are beyond the control of the grantee include, but 
are not limited to, the following:
    (a) Litigation;
    (b) Court Orders; and
    (c) Emergency and natural disasters.
    (4) HUD will use documents and information available to it to 
determine whether the grant is delinquent due to reasons that are 
beyond the control of the grantee and whether the grantee is making 
substantial progress toward eliminating the delinquency.
    h. Previously Funded Sites. You may submit a Revitalization 
application that targets a project that is being revitalized or 
replaced under an existing HOPE VI Revitalization grant. However, you 
may not apply for new HOPE VI Revitalization funds for units in that 
project that were funded by the existing HOPE VI Revitalization grant 
or other HUD funds which are used to achieve significant revitalization 
of units (as opposed to regular upkeep), even if those funds are 
inadequate to pay the costs to revitalize or replace all of the 
targeted units. For example, if a project has 700 units and you were 
awarded a HOPE VI Revitalization grant or other HUD public housing 
funds to address 300 of those units, you may submit an FY2004 HOPE VI 
Revitalization application to revitalize the remaining 400 units. You 
may not apply for funds to supplement work on the original 300 units. 
If you request funds to revitalize units or buildings that have been 
funded by an existing HOPE VI Revitalization grant or other HUD funds, 
your application will not be rated or ranked and will be ineligible for 
funding.
    i. Program Schedule. Your application must contain a program 
schedule that provides a feasible plan to meet the schedule 
requirements of Section VI.B.2. of this NOFA, with no impediments such 
as litigation that would prevent timely startup. The program schedule 
must indicate the date on which the development proposal, i.e., whether 
mixed-finance development, homeownership development, etc., for each 
phase of the revitalization plan will be submitted to HUD. For 
application evaluation only, you should assume the following award and 
post-award dates.

------------------------------------------------------------------------
              Milestone                               Date
------------------------------------------------------------------------
Grant Award..........................  April 1, 2005.
Grant Agreement Execution............  July 1, 2005.
HUD's written request for              August 1, 2005.
 Supplemental Submissions.
HUD's approval of Supplemental         September 1, 2005.
 Submissions.
------------------------------------------------------------------------

    If grant award takes place after October 1, 2004, the grantee's 
program schedule may be changed in the Supplemental Submissions to 
account for the period of time between October 1, 2004, and the actual 
date of grant award. If your application does not contain a program 
schedule, as described above, the application will not be rated or 
ranked and will be ineligible for funding.
    j. Separability. In accordance with Section 24(j)(2)(A)(v) of the 
1937 Act, if you propose to target only a portion of a project for 
revitalization, you must:
    (1) Demonstrate to HUD's satisfaction that the severely distressed 
public housing is sufficiently separable from the remainder of the 
project of which the building is part to make use of the building 
feasible for revitalization. Separations may include a road, berm, 
catch basin, or other recognized neighborhood distinction.
    (2) Demonstrate that the site plan and building designs of the 
revitalized

[[Page 64140]]

portion will provide defensible space for the occupants of the 
revitalized building(s) and that the properties that remain will not 
have a negative influence on the revitalized buildings(s), either 
physically or socially.
    (3) If your application does not demonstrate separability, your 
application will not be rated or ranked and will be ineligible for 
funding.
    k. Severe Distress of Target Project. The targeted public housing 
project or building in a project targeted by a HOPE VI Revitalization 
application must be severely distressed. See Section I.C. of this NOFA 
for the definition of ``severely distressed.'' If the targeted project 
or building is not severely distressed, your application will not be 
rated or ranked and will be ineligible for funding.
    l. Site Control. (1) If you propose to develop off-site housing in 
any phase of your proposed revitalization plan, you MUST provide 
evidence in your application that you (not your developer) have site 
control of the property(ies).
    (2) Site control may only be contingent upon:
    (a) The receipt of the HOPE VI grant;
    (b) Satisfactory compliance with the environmental review 
requirements of this NOFA; and
    (c) The site and neighborhood standards in Section III.C.4. of this 
NOFA.
    (3) If you demonstrate site control through an option to purchase, 
the option must extend for at least 180 days after the application due 
date.
    (4) If you propose to develop off-site housing and you do not 
provide acceptable evidence of site control, your ENTIRE application 
will not be rated or ranked and will be ineligible for funding.
    m. Zoning Approval. (1) If you are proposing to use off-site 
parcels of land for housing development or other uses that, until this 
point in time have been zoned for a purpose different than the one 
proposed in your revitalization plan, your application must include:
    (a) A certification from the appropriate local official documenting 
that all required zoning approvals have been secured for such parcels; 
or
    (b) The actual zoning approval document(s) for the parcel(s).
    (2) If you are proposing to use off-site parcels of land for 
housing development or other uses and those parcels are already zoned 
for your chosen use, your application must include a certification 
signed by the executive director stating that all current zoning allows 
all proposed HOPE VI activities.
    (3) For example, if you propose to develop housing on land that is 
currently zoned as parkland, you must provide evidence in the 
application that the zoning change has been secured to permit housing 
development. If you propose to keep the land as parkland, you must 
provide a certification in the application that the zoning is for 
parkland.
    (4) If zoning approval/certification is not properly included in 
your application, the application will not be rated or ranked and will 
be ineligible for funding.
    n. Requirements and Procedures Applicable to All Programs: (1) 
SuperNOFA References. The following subsections of Section III.C. of 
the SuperNOFA are hereby incorporated by reference:
    (a) Dun and Bradstreet Data Universal Numbering System (DUNS) 
Number Requirement;
    (b) Compliance with Fair Housing and Civil Rights Laws;
    (c) Conducting Business In Accordance with Core Values and Ethical 
Standards;
    (d) Delinquent Federal Debts;
    (e) Name Check Review;
    (f) False Statements;
    (g) Prohibition Against Lobbying Activities;
    (h) Debarment and Suspension.
    (i) Statutory and Regulatory Requirements; and
    (j) Ineligible Applicants.
    (2) Salary Limitation for Consultants. FY2004 funds may not be used 
to pay or to provide reimbursement for payment of the salary of a 
consultant whether retained by the federal government or the grantee at 
more than the daily equivalent of the rate paid for level IV of the 
Executive Schedule, unless specifically authorized by law.
    2. Thresholds--Applicant Certifications Covered by the Standard 
Form 424. By signing and submitting the Application for Federal 
Assistance, Standard Form 424, you are certifying to all of the 
thresholds listed in this section. A false statement in an application 
is grounds for denial or termination of an award and grounds for 
possible punishment as provided in 18 U.S.C. 1001, 1010, and 1012, and 
32 U.S.C. 3729 and 3802. See Section IV.B. of this NOFA for any 
documentation requirements related to these certifications. a. If you 
have not met a threshold on or before the application due date, or have 
not included in the application the complete, correct, required 
documentation that demonstrates the threshold has been met, the 
application will not rated or ranked and will be ineligible for 
funding. For these thresholds, insufficiency cannot be cured after the 
application due date. See Section IV.B. of this NOFA for documentation 
requirements.
    (1) Selection of Developer. You must certify that:
    (a) You have initiated an RFQ by the application due date for the 
competitive procurement of a developer for your first phase of 
construction, in accordance with 24 CFR 85.36 and 24 CFR 941.602(d) (as 
applicable). If you change developers after you are selected for 
funding, HUD reserves the right to rescind the grant; or
    (b) You will act as your own developer for the proposed project. If 
you change your plan and procure an outside developer after you are 
selected for funding, HUD reserves the right to rescind the grant.
    (2) Resident Involvement in Revitalization Program.
    You must certify that you have involved affected public housing 
residents at the beginning and during the planning process for the 
revitalization program, prior to submission of your application. If you 
have not included affected residents your application will not be rated 
or ranked and will be ineligible for funding. See Section III.C.4. of 
this NOFA for minimum training and meeting requirements and Section 
IV.B. of this NOFA for documentation requirements.
    b. Omission of any of the mandatory documentation listed in Section 
IV.B. of this NOFA is considered a Technical Deficiency and must be 
cured (corrected) within the cure period stated in Section IV.B. of the 
SuperNOFA. Applications that remain deficient after the cure period 
will not be rated or ranked and will be ineligible for funding.
    (1) Operation and Management Principles and Policies Certification. 
You must certify that you will implement the Operation and Management 
Principles and Policies stated in Section III.C.4.h. of this NOFA.
    (2) Relocation Plan Certification.
    (a) You must certify that the HOPE VI Relocation Plan has been 
completed and that it conforms to the Uniform Relocation Assistance and 
Real Property Acquisition Policies Act of 1970 (URA) requirements as 
described in Section V.A.6. of this NOFA.
    (b) If relocation was completed (i.e., the targeted public housing 
site is vacant) as of the application due date, rather than certifying 
that the HOPE VI Relocation Plan has been completed, you certify that 
the relocation was completed.

[[Page 64141]]

    (3) Resident Involvement in the Revitalization Program 
Certification. You must certify that resident training sessions and 
public meetings were held and that you involved affected public housing 
residents at the beginning and during the planning process for the 
revitalization program prior to submission of an application.
    (4) Standard Certifications. The last part of your application will 
be comprised of standard certifications common to many HUD programs. 
Required forms must be included in the HOPE VI application and will be 
available over the Internet at http://www.hud.gov/offices/adm/grants/otherhud.cfm.
    3. Thresholds--Third-Party Certifications. The following third-
party certifications must be included in your application. a. If you 
have not included in the application, on or before the application due 
date, the complete, correct, required documentation that demonstrates 
the threshold has been met, the application will not rated or ranked 
and will be either ineligible for funding or have its funding limited, 
based upon the threshold. For these thresholds, insufficiency regarding 
these thresholds cannot be cured after the application due date. See 
Section IV.B. of this NOFA for any documentation requirements related 
to these certifications.
    (1) Cost Control Standards. Your cost estimates must be certified 
to meet the cost control standards stated in Section IV.E. by an 
independent cost estimator, architect, engineer, contractor, or other 
qualified third party professional. If your costs are not certified, 
your application will not be rated or ranked and will be ineligible for 
funding.
    (2) Severely Distressed Certification. You must certify that the 
target project is severely distressed. In order to certify to severe 
physical distress, your application must include a certification that 
is signed by an engineer or architect licensed by a state licensing 
board. The license does not need to have been issued in the same state 
as the severely distressed project. The engineer or architect must 
include his or her license number and state of registration on the 
certification. The engineer or architect may not be an employee of the 
housing authority or the city. A Certification of Severe Physical 
Distress is provided on the Internet at http://www.hud.gov/offices/adm/grants/otherhud.cfm.
    b. Omission of any of the mandatory documentation listed in this 
section is considered a technical deficiency and must be cured 
(corrected) within the cure period stated in Section IV.B.4. of the 
SuperNOFA. Applications that remain deficient after the cure period 
will not be rated or ranked and will be ineligible for funding. See 
Section IV.B. of this NOFA for any documentation requirements related 
to these certifications.
    (1) Market-rate Housing: Market Assessment Certification. If you 
include market-rate housing, community facilities (if market-driven, 
e.g., a YMCA or a community facility that is primarily intended to 
facilitate the delivery of community and supportive services for 
residents of the targeted severely distressed public housing project 
and of off-site replacement housing does not need to be addressed in 
the market assessment letter), economic development, and retail 
structures in your Revitalization Plan, you must provide a 
certification by an independent, third party, credentialed market 
research firm, or professional that describes its assessment of the 
demand and associated pricing structure for the proposed residential 
units and any community facilities, economic development, and retail 
structures, based on the market and economic conditions of the project 
area.
    (2) HOPE VI Revitalization Applicant Certifications. You must 
include in your application a certification from the Chairman of your 
Board of Commissioners to the requirements listed in the HOPE VI 
Revitalization Applicant Certifications. This certification is provided 
on the Internet at http://www.hud.gov/offices/adm/grants/otherhud.cfm.
    4. Program Requirements.
     a. Demolition. (1) You may not carry out nor permit others to 
carry out the demolition of the project or any portion of the project 
until HUD approves, in writing, one of the following, and until HUD has 
also approved a Request for Release of Funds submitted in accordance 
with 24 CFR part 58 or, if HUD performs an environmental review under 
24 CFR part 50, until HUD has approved in writing the property for 
demolition following its environmental review.
    (a) Information in your HOPE VI Revitalization Application, along 
with Supplemental Submissions requested by HUD after the award of the 
grant. Section 24(g) of the 1937 Act provides that severely distressed 
public housing demolished pursuant to a Revitalization Plan is not 
required to be approved by a demolition application under Section 18 of 
the 1937 Act or regulations at 24 CFR part 970. If you do not receive a 
HOPE VI Revitalization grant, the information in your application will 
not be used to process a request for demolition;
    (b) A demolition application under Section 18 of the 1937 Act. 
While a Section 18 approval is not required by HOPE VI demolition, you 
will not have to wait for demolition approval through your supplemental 
submissions, as described in Section (a) above; or
    (c) A Section 202 Mandatory Conversion Plan, in compliance with 
regulations at 24 CFR part 971 and other applicable HUD requirements, 
if the project is subject to Mandatory Conversion (Section 202 of the 
Omnibus Consolidated Rescissions and Appropriations Act of 1996 Pub. L. 
104-134, approved on April 26, 1996). A Mandatory Conversion Plan 
concerns the removal of a public housing project from a PHA's 
inventory.
    b. Development. (1) For any standard (non-mixed finance) public 
housing development activity (whether on-site reconstruction or off-
site development), you must obtain HUD approval of a standard 
development proposal submitted under 24 CFR part 941 (or successor 
part).
    (2) For mixed-finance housing development, you must obtain HUD 
approval of a mixed finance proposal, submitted under 24 CFR part 941, 
subpart F (or successor part and subpart).
    (3) For new construction of community facilities primarily intended 
to facilitate the delivery of community and supportive services for 
residents of the project and residents of off-site replacement housing, 
you must comply with 24 CFR part 941 (or successor part). Information 
required for this activity must be included in either a standard or 
mixed finance development proposal, as applicable.
    c. Homeownership. (1) For homeownership replacement units developed 
under a Revitalization Plan, you must obtain HUD approval of a 
homeownership proposal. Your homeownership proposal must conform to 
either:
    (a) Section 24(d)(1)(J) of the 1937 Act; or
    (b) Section 32 of the 1937 Act (see 24 CFR part 906). Additional 
information on this option may be found at http://www.hud.gov/offices/pih/centers/sac/homeownership.
    (2) The homeownership proposal must be consistent with the 80 
percent of Area Median Income (AMI) limitations and any other 
applicable provisions under the 1937 Act. (HUD publishes AMI tables for 
each family size in each locality annually. The income limit tables can 
be found at http://www.huduser.org/datasets/il/il04/index.html.)

[[Page 64142]]

    d. Acquisition. (1) Acquisition Proposal. Before you undertake any 
acquisition activities with HOPE VI or other public housing funds, you 
must obtain HUD approval of an acquisition proposal that meets the 
requirements of 24 CFR 941.303.
    (2) Rental Units. For acquisition of rental units in existing or 
new apartment buildings, single family subdivisions, etc., with or 
without rehabilitation, for use as public housing replacement units, 
you must obtain HUD approval of a Development Proposal in accordance 
with 24 CFR 941.304 (conventional development) or 24 CFR 941.606 (mixed 
finance development).
    (2) Land for Off-Site Replacement Units. For acquisition of land 
for public housing or homeownership development, you must comply with 
24 CFR part 941 or successor part.
    (3) Land for Economic Development-Related Activities.
    (a) Acquisition of land for this purpose is eligible only if the 
economic development-related activities specifically promote the 
economic self-sufficiency of residents.
    (b) Limited infrastructure and site improvements associated with 
developing retail, commercial, or office facilities, such as rough 
grading and bringing utilities to (but not on) the site are eligible 
activities with prior HUD approval.
    e. Access to Services. For both on-site and any off-site units, 
your overall Revitalization Plan must result in increased access to 
municipal services, jobs, mentoring opportunities, transportation, and 
educational facilities; i.e., the physical plan and self-sufficiency 
strategy must be well-integrated and strong linkages must be 
established with the appropriate federal, state, and local agencies, 
nonprofit organizations, and the private sector to achieve such access.
    f. Building Standards. (1) Building Codes. All activities that 
include construction, rehabilitation, lead-based paint removal, and 
related activities must meet or exceed local building codes. You are 
encouraged to read the policy statement and final report of the HUD 
Review of Model Building Codes that identifies the variances between 
the design and construction requirements of the Fair Housing Act and 
several model building codes. That report can be found on the HUD Web 
site at http://www.hud.gov/fhe/modelcodes.
    (2) Deconstruction. HUD encourages you to design programs that 
incorporate sustainable construction and demolition practices, such as 
the dismantling or ``deconstruction'' of public housing units, 
recycling of demolition debris, and reusing of salvage materials in new 
construction. ``A Guide to Deconstruction'' can be found at http://www.hud.gov/deconstr.pdf.
    (3) Partnership for Advancing Technology in Housing (PATH). HUD 
encourages you to use PATH technologies in the construction and 
delivery of replacement housing. PATH is a voluntary initiative that 
seeks to accelerate the creation and widespread use of advanced 
technologies to radically improve the quality, durability, 
environmental performance, energy efficiency, and affordability of our 
Nation's housing.
    (a) PATH's goal is to achieve dramatic improvement in the quality 
of American housing by the year 2010. PATH encourages leaders from the 
home building, product manufacturing, insurance and financial 
industries, and representatives from federal agencies dealing with 
housing issues to work together to spur housing design and construction 
innovations. PATH will provide technical support in design and cost 
analysis of advanced technologies to be incorporated in project 
construction.
    (b) Applicants are encouraged to employ PATH technologies to exceed 
prevailing national building practices by:
    (i) Reducing costs;
    (ii) Improving durability;
    (iii) Increasing energy efficiency;
    (iv) Improving disaster resistance; and
    (v) Reducing environmental impact.
    (c) More information, the list of technologies, the latest PATH 
Newsletter, results from field demonstrations, and PATH projects can be 
found at http://www.pathnet.org.
    (4) Energy Efficiency. (a) New construction must comply with the 
latest HUD-adopted Model Energy Code issued by the Council of American 
Building Officials.
    (b) HUD encourages you to set higher standards for energy and water 
efficiency in HOPE VI new construction, which can achieve utility 
savings of 30 to 50 percent with minimal extra cost.
    (c) You are encouraged to negotiate with your local utility company 
to obtain a lower rate. Utility rates and tax laws vary widely 
throughout the country. In some areas, PHAs are exempt or partially 
exempt from utility rate taxes. Some PHAs have paid unnecessarily high 
utility rates because they were billed at an incorrect rate 
classification.
    (d) Local utility companies may be able to provide grant funds to 
assist in energy efficiency activities. States may also have programs 
that will assist in energy efficient building techniques.
    (e) You must use new technologies that will conserve energy and 
decrease operating costs where cost effective. Examples of such 
technologies include:
    (i) Geothermal heating and cooling;
    (ii) Placement of buildings and size of eaves that take advantage 
of the directions of the sun throughout the year;
    (iii) Photovoltaics (technologies that convert light into 
electrical power);
    (iv) Extra insulation;
    (v) Smart windows; and
    (vi) Energy Star appliances.
    (5) Universal Design. HUD encourages you to incorporate the 
principles of universal design in the construction or rehabilitation of 
housing, retail establishments, and community facilities, or when 
communicating with community residents at public meetings or events. 
Universal design is the design of products and environments to be 
usable by all people, to the greatest extent possible, without the need 
for adaptation or specialized design. The intent of universal design is 
to simplify life for everyone by making products, communications, and 
the built environment more usable by as many people as possible at 
little or no extra cost. Universal design benefits people of all ages 
and abilities. Examples include designing wider doorways, installing 
levers instead of doorknobs, and putting bathtub/shower grab bars in 
all units. Computers and telephones can also be set up in ways that 
enable as many residents as possible to use them. The Department has a 
publication that contains a number of ideas about how the principles of 
Universal Design can benefit persons with disabilities. To order a copy 
of Strategies for Providing Accessibility and Visitability for HOPE VI 
and Mixed Finance Homeownership, go to the publications and resource 
page of the HOPE VI Web site at http://www.huduser.org/publications/pubasst/strategies.html.
    (6) Energy Star. HUD has adopted a wide-ranging energy action plan 
for improving energy efficiency in all program areas. As a first step 
in implementing the energy plan, HUD, the Environmental Protection 
Agency (EPA), and the Department of Energy (DoE) have signed a joint 
partnership to promote energy efficiency in HUD's affordable housing 
efforts and programs. The purpose of the Energy Star partnership is to 
promote energy efficiency of the affordable housing stock, but also to 
help protect the environment. Applicants constructing, rehabilitating, 
or maintaining housing or community facilities are encouraged to

[[Page 64143]]

promote energy efficiency in design and operations. They are urged 
especially to purchase and use Energy Star-labeled products. Applicants 
providing housing assistance or counseling services are encouraged to 
promote Energy Star building by homebuyers and renters. Program 
activities can include developing Energy Star promotional and 
information materials, outreach to low- and moderate-income renters and 
buyers on the benefits and savings when using Energy Star products and 
appliances, and promoting the designation of community buildings and 
homes as Energy Star compliant. For further information about Energy 
Star, see http://www.energystar.gov or call 888-STAR-YES (888-782-
7937), or for the hearing-impaired, call 888-588-9920 TTY. See also the 
energy efficiency requirements in Section III.C.4. of this NOFA.
    (7) Lead-Based Paint. You must comply with lead-based paint 
evaluation and reduction requirements as provided for under the Lead-
Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et seq.). You 
also must comply with regulations at 24 CFR part 35, 24 CFR 965.701, 
and 24 CFR 968.110(k), as they may be amended or revised from time to 
time. Unless otherwise provided, you will be responsible for lead-based 
paint evaluation and reduction activities. The National Lead 
Information Hotline is 800-424-5323.
    g. Labor Standards. The following standards must be implemented as 
appropriate in regard to HOPE VI grants.
    (1) Labor Standards.
    (a) Davis-Bacon wage rates apply to development of any public 
housing rental units or homeownership units developed with HOPE VI 
grant funds and to demolition followed by construction on the site. 
Davis-Bacon rates are ``prevailing'' minimum wage rates set by the 
Secretary of Labor that all laborers and mechanics employed in the 
development, including rehabilitation other than routine maintenance of 
a public housing project must be paid, as set forth in a wage 
determination that the PHA must obtain prior to bidding on each 
construction contract. The wage determination and provisions requiring 
payment of these wage rates must be included in the construction 
contract;
    (b) HUD-determined wage rates apply to:
    (i) Operation (including nonroutine maintenance) of revitalized 
housing, and
    (ii) Demolition followed only by filling in the site and 
establishing a lawn.
    (2) Exclusions. Under Section 12(b) of the 1937 Act, wage rate 
requirements do not apply to individuals who:
    (a) Perform services for which they volunteered;
    (b) Do not receive compensation for those services or are paid 
expenses, reasonable benefits, or a nominal fee for the services;
    (c) Are not otherwise employed in the work involved (24 CFR part 
70).
    (3) If other federal programs are used in connection with your HOPE 
VI activities, labor standards requirements apply to the extent 
required by the other federal programs on portions of the project that 
are not subject to Davis-Bacon rates under the 1937 Act.
    h. Operation and Management Policies and Principles. (1) You and 
your procured property manager, if applicable, must comply (to the 
extent required) with the provisions of 24 CFR part 966 in planning for 
the implementation of the operation and management principles and 
policies described below.
    (a) Rewarding work and promoting family stability by promoting 
positive incentives such as income disregards and ceiling rents;
    (b) Instituting a system of local preferences adopted in response 
to local housing needs and priorities, e.g., preferences for victims of 
domestic violence, residency preferences, and disaster victims;
    (c) Encouraging self-sufficiency by including lease requirements 
that promote involvement in the resident association, performance of 
community service, participation in self-sufficiency activities, and 
transitioning from public housing;
    (d) Implementing site-based waiting lists for the redeveloped 
public housing and following project-based management principles;
    (e) Instituting strict applicant screening requirements such as 
credit checks, references, home visits, and criminal records checks;
    (f) Strictly enforcing lease and eviction provisions;
    (g) Improving the safety and security of residents through the 
implementation of defensible space principles and the installation of 
physical security systems such as surveillance equipment, control 
engineering systems, etc;
    (h) Enhancing ongoing efforts to eliminate drugs and crime from 
neighborhoods through collaborative efforts with federal, state, and 
local crime prevention programs and entities such as:
    (i) Local law enforcement agencies;
    (ii) Your local United States Attorney;
    (iii) The Weed and Seed Program, if the targeted project is located 
in a designated Weed and Seed area. Operation Weed and Seed is a multi-
agency strategy that ``weeds out'' violent crime, gang activity, drug 
use, and drug trafficking in targeted neighborhoods and then ``seeds'' 
the target area by restoring these neighborhoods through social and 
economic revitalization. Law enforcement activities constitute the 
``weed'' portion of the program. Revitalization, which includes 
prevention, intervention, and treatment services as well as 
neighborhood restoration, constitutes the ``seed'' element. For more 
information, see the Community and Safety and Conservation Web site at 
http://www.hud.gov/offices/pih/divisions/cscd/.
    i. Non-Fungibility for MTW PHAs. Funds awarded under this NOFA are 
not fungible under MTW agreements and must be accounted for separately, 
in accordance with the HOPE VI Revitalization Grant Agreement, the 
requirements in Section III.C.4.m. of the SuperNOFA, entitled, ``OMB 
Circulars and Government-wide Regulations Applicable to Financial 
Assistance Programs,'' and GAAP.
    j. Resident and Community Involvement. (1) General. You are 
required to involve the affected public housing residents, state and 
local governments, private service providers, financing agencies, and 
developers in the planning process, proposed implementation, and 
management of your Revitalization Plan. This involvement must be 
continuous from the beginning of the planning process through the 
implementation and management of the grant, if awarded.
    (2) Resident Training Session. You must conduct at least one 
training session for residents of the severely distressed project on 
the HOPE VI development process. HUD does not prescribe the content of 
this meeting.
    (3) Public Meetings. (a) You must conduct at least three public 
meetings with residents and the broader community, in order to involve 
them in a meaningful way in the process of developing the 
Revitalization Plan and preparing the application. One of these 
meetings must have taken place at the beginning of the planning 
process.
    (b) These three public meetings must take place on different days 
from each other and from the resident training session.
    (c) During the course of the three meetings, you must address the 
following issues listed below (i.e., all issues need not be addressed 
at each meeting):
    (i) The HOPE VI planning and implementation process;

[[Page 64144]]

    (ii) The proposed physical plan, including site and unit design, 
and whether the unit design is in compliance with Fair Housing Act and 
UFAS standards;
    (iii) The extent of proposed demolition;
    (iv) Planned community and supportive service activities;
    (v) Other proposed revitalization activities;
    (vi) Relocation issues, including relocation planning, mobility 
counseling, and maintaining the HOPE VI community planning process 
during the demolition and reconstruction phases where temporary 
relocation is involved;
    (vii) Reoccupancy plans and policies, including site-based waiting 
lists; and
    (viii) Section 3 and employment opportunities to be created as a 
result of redevelopment activities.
    (4) Accessibility. All training sessions and meetings must be held 
in facilities that are accessible to persons with disabilities, provide 
services such as day care, transportation, and sign language 
interpreters as appropriate, and as practical and applicable, be 
conducted in English and the language(s) most appropriate for the 
community.
    (5) Allowable Time Period for Training and Meetings.
    (a) At least one public meeting, which included representation from 
both the involved public housing residents and the community, must have 
been held at the beginning of the revitalization planning period;
    (b) At least one training session must have been held after the 
publication date of this NOFA in the Federal Register; and
    (c) The minimum of two more public meetings must have been held 
after the publication date of this NOFA in the Federal Register.
    (d) The above minimum number of trainings and meetings are required 
to meet the Resident Involvement threshold in Section III.C. of this 
NOFA. Additional meetings and trainings will be counted toward 
demonstration of continual inclusion of the residents and community in 
the rating factors.
    k. CSS Program Requirements. (1) Term Period. CSS programs and 
services must last for the life of the grant and must be carefully 
planned so that they will be sustainable after the HOPE VI grant period 
ends.
    (2) Allowed Funding Mechanisms:
    (a) Maximum CSS grant amount. Consistent with Section 24(j)(3) of 
the 1937 Act, you may use up to 15 percent of the total HOPE VI grant 
to pay the costs of CSS activities. See Section III.B.1. of this NOFA 
for CSS grant matching requirements. You may spend additional sums on 
CSS activities using donations, other HUD funds made available for that 
purpose (leverage), or other PHA funds.
    (b) CSS Endowment Trust. Consistent with Section 24(d)(2) of the 
1937 Act, you may deposit up to 15 percent of your HOPE VI grant (the 
maximum amount of the award allowable for CSS activities) into an 
endowment trust to provide CSS activities. In order to establish an 
endowment trust, you must first execute with HUD a HOPE VI Endowment 
Trust Addendum to the grant agreement. When reviewing your request to 
set up an endowment trust, HUD will take into consideration your 
ability to pay for current CSS activities with HOPE VI or other funds 
and the projected long-term sustainability of the endowment trust to 
carry out those activities.
    (3) CSS Team and Partners. (a) The term ``CSS Team'' refers to PHA 
staff members and any consultants who will have the responsibility to 
design, implement, and manage your CSS program.
    (b) The term ``CSS Partners'' refers to the agencies and 
organizations that you will work with to provide supportive services 
for residents. A partner could be a local service organization such as 
a Boys or Girls Club that donates its building and staff to the 
program, or an agency such as the local TANF agency that works with you 
to ensure that their services are coordinated and comprehensive.
    (c) Partner Agreements. There are several relationships that you 
may have with your partners:
    (i) Subgrant Agreements. You may enter into subgrant agreements 
with nonprofit organizations or state or local governments for the 
performance of CSS activities in accordance with your approved CSS work 
plan.
    (ii) Contracts. You may enter into a contract with for-profit 
businesses, nonprofit organizations, or state or local governments for 
the performance of CSS activities in accordance with your approved CSS 
work plan.
    (iii) Memoranda of Understanding (MOU). You may enter into an MOU 
with any entity that furnishes CSS services for the performance of 
activities in accordance with your approved CSS work plan. However, if 
money is to change hands, the MOU must be codified with a contract or 
subgrant.
    (iv) Informal Relationships. You may accept assistance from 
partners without prior documentation of your partner relationship. 
However, informal relationships do not lend themselves to planning and 
should definitely be codified with a contract or subgrant if money 
changes hands.
    (4) Tracking and Case Management. If selected, the grantee is 
responsible for tracking and providing CSS programs and services to 
residents currently living on the targeted public housing site and 
residents already relocated from the site. It is imperative that case 
management services begin immediately upon award so that residents who 
will be relocated have time to participate in and benefit from CSS 
activities before leaving the site, and that residents who have already 
been relocated are able to participate in and benefit from CSS 
activities.
    (5) CSS Strategy and Objectives Requirements (a) Transition to 
Housing Self-Sufficiency. One of HUD's major priorities is to assist 
public housing residents in their efforts to become financially self-
sufficient and less dependent upon direct government housing 
assistance. Your CSS program must include a well-defined, measurable 
endeavor that will enable public housing residents to transition to 
other affordable housing programs and to market housing. FSS and CSS 
activities that are designed to increase education and income levels 
are considered a part of this endeavor, as is the establishment of 
reasonable limits on the length of time any resident can reside in a 
public housing unit within a HOPE VI Revitalization Development.
    (b) Neighborhood Networks. All FY2004 Revitalization grantees will 
be required to establish Neighborhood Networks Centers (NCC). This 
program provides residents with on-site access to computer and training 
resources that create knowledge and experience with computers and the 
Internet as tools to increase access to CSS, job training, and the job 
market. Grantees may use HOPE VI funds to establish NCCs. More 
information on the requirements of the NCC program is available on the 
Neighborhood Networks Web site at http://www.hud.gov/nnw/nnwindex.html. 
There will not be a separate FY2004 funded NOFA for HOPE VI 
Neighborhood Networks programs.
    (c) Quantifiable Goals. The objectives of your CSS program must be 
results-oriented, with quantifiable goals and outcomes that can be used 
to measure progress and make changes in activities as necessary.
    (d) Appropriate Scale and Type.
    (i) CSS activities must be of an appropriate scale, type, and 
variety to meet the needs of all residents (including adults, seniors, 
youth ages 16 to 21, and children) of the severely

[[Page 64145]]

distressed project, including residents remaining on-site, residents 
who will relocate permanently to other PHA units or Housing Choice 
Voucher-assisted housing, residents who will relocate temporarily 
during the construction phase, and new residents of the revitalized 
units.
    (ii) Non-public housing residents may also participate in CSS 
activities, as long as the primary participants in the activities are 
residents as described in Section (i) above.
    (e) Coordination. (i) CSS activities must be consistent with state 
and local welfare reform requirements and goals.
    (ii) Your CSS activities must be coordinated with the efforts of 
other service providers in your locality, including nonprofit 
organizations, educational institutions, and state and local programs.
    (iii) CSS activities must be well-integrated with the physical 
development process, both in terms of timing and the provision of 
facilities to house on-site service and educational activities.
    (f) Your CSS program must provide appropriate community and 
supportive services to residents prior to any relocation.
    l. CSS Partnerships and Resources. The following are the kinds of 
organizations and agencies that can provide you with resources 
necessary to carry out and sustain your CSS activities. Note that in 
order to count as leverage, these funds must be newly generated. 
Existing and newly generated TANF cash benefits will not count as 
leverage. Newly generated non-cash services provided by TANF agencies 
will count as leverage.
    (1) Local Boards of Education, public libraries, local community 
colleges, institutions of higher learning, nonprofit or for-profit 
educational institutions, and public/private mentoring programs that 
will lead to new or improved educational facilities and improved 
educational achievement of young people in the revitalized development, 
from birth through higher education.
    (2) TANF agencies/welfare departments for TANF and non-TANF in-kind 
services, and non-TANF cash donations, e.g., donation of TANF agency 
staff. Note that TANF cash benfits themselves will not be counted as 
leverage.
    (3) Job development organizations that link private sector or 
nonprofit employers with low-income prospective employees.
    (4) Workforce Development Agencies.
    (5) Organizations that provide residents with job readiness and 
retention training and support.
    (6) Economic development agencies such as the Small Business 
Administration, which provide entrepreneurial training and small 
business development centers.
    (7) National corporations, local businesses, and other large 
institutions such as hospitals that can commit to provide entry-level 
jobs. Employers may agree to train residents or commit to hire 
residents after they complete jobs preparedness or training programs 
that are provided by you, other partners, or the employer itself.
    (8) Programs that integrate employment training, education, and 
counseling, and where creative partnerships with local boards of 
education, state charter schools, TANF agencies, foundations, and 
private funding sources have been or could be established, such as:
    (a) Youthbuild. HUD's Youthbuild program provides grants to 
organizations that provide education and job training to young adults 
ages 16 to 24 who have dropped out of school. Participants spend half 
their time rehabilitating low-income housing and the other half in 
educational programs. Youthbuild provides a vehicle for achieving 
compliance with the objective of Section 3, as described in Section 
III.C.4.c. of the SuperNOFA. More information on HUD's Youthbuild 
program can be found at http://www.hud.gov/progdesc/youthb.cfm.
    (b) Step-Up, an apprenticeship-based employment and training 
program that provides career potential for low-income persons by 
enabling them to work on construction projects that have certain 
prevailing wage requirements. Step-Up encourages work by offering 
apprenticeships through which low-income participants earn wages while 
learning skills on the job, supplemented by classroom-related 
instruction. Step-Up can also contribute to a PHA's effort to meet the 
requirements of Section 3. More information can be found at http://www.hud.gov/progdesc/stepup.cfm.
    (9) Sources of capital such as foundations, banks, credit unions, 
and charitable, fraternal, and business organizations.
    (10) Nonprofit organizations such as the Girl Scouts and the Urban 
League, both of which have Memoranda of Agreement (MOA) with HUD. 
Copies of these MOAs can be found on the Community and Supportive 
Services page of the HOPE VI Web site at http://www.hud.gov/hopevi.
    (11) Civil rights and fair housing organizations.
    (12) Local area agencies on aging.
    (13) Local agencies and organizations serving persons with 
disabilities.
    (14) Nonprofit organizations such as grassroots faith-based and 
other community-based organizations. HUD encourages you to partner or 
subgrant with nonprofit organizations, including grassroots faith-based 
and other community-based organizations, to provide CSS activities. 
Such organizations have a strong history of providing vital community 
services such as job training, childcare, relocation supportive 
services, youth programs, technology training, transportation, 
substance abuse programs, crime prevention, health services, assistance 
to the homeless and homelessness prevention, counseling individuals and 
families on fair housing rights, providing elderly housing 
opportunities, and homeownership and rental housing opportunities in 
the neighborhood of their choice. HUD believes that grassroots 
organizations, e.g., civic organizations, faith-communities, national 
and local self-help homeownership organizations, faith-based, and other 
community-based organizations should be more effectively used, and has 
placed a high priority on expanding opportunities for grassroots 
organizations to participate in developing solutions for their own 
neighborhoods. See HUD's Center for Faith-Based and Community 
Initiatives Web site at http://www.hud.gov/offices/fbci/index.cfm.
    (a) HUD will consider an organization a ``grassroots'' organization 
if it is headquartered in the local community to which it provides 
services; and
    (i) Has an annual social services budget of no more than $300,000. 
This cap includes only the portion of the organization's budget 
allocated to providing social services. It does not include other 
portions of the budget such as salaries and expenses; or
    (ii) Has six or fewer full-time equivalent employees.
    (b) Local affiliates of national organizations are not considered 
``grassroots.''
    m. Fair Housing and Equal Opportunity Requirements. (1) Site and 
Neighborhood Standards for Replacement Housing. You must comply with 
the Fair Housing Act and Title VI of the Civil Rights Act of 1964, and 
regulations thereunder. In determining the location of any replacement 
housing, you must comply with either the site and neighborhood 
standards regulations at 24 CFR 941.202 ((b)-(d)) or with the standards 
outlined in this NOFA. Because the objective of the HOPE VI program is 
to alleviate distressed conditions at the

[[Page 64146]]

development and in the surrounding neighborhood, replacement housing 
under HOPE VI that is located on the site of the existing development 
or in its surrounding neighborhood will not require independent 
approval by HUD under Site and Neighborhood Standards. The term 
``surrounding neighborhood'' means the neighborhood within a three-mile 
radius of the site of the existing development.
    (a) HOPE VI Goals Related to Site and Neighborhood Standards. You 
are expected to ensure that your revitalization plan will expand 
assisted housing opportunities in non-poor and non-minority 
neighborhoods and will accomplish substantial revitalization in the 
project and its surrounding neighborhood. You are also expected to 
ensure that eligible households of all races and ethnic groups will 
have equal and meaningful access to the housing.
    (b) Objectives in Selecting HUD-Assisted Sites. The fundamental 
goal of HUD's fair housing policy is to make full and free housing 
choice a reality. Housing choice requires that households of all races 
and ethnicity, or with disabilities, can freely decide the type of 
neighborhood where they wish to reside, that minority neighborhoods are 
no longer deprived of essential public and private resources, and that 
stable, racially-mixed neighborhoods are available as a meaningful 
choice for all. To make full and free housing choice a reality, sites 
for HUD-assisted housing investment should be selected so as to advance 
two complementary goals:
    (i) Expand assisted housing opportunities in non-minority 
neighborhoods, opening up choices throughout the metropolitan area for 
all assisted households; and
    (ii) Reinvest in minority neighborhoods, improving the quality and 
affordability of housing there to represent a real choice for assisted 
households.
    (c) Compliance with Fair Housing Act and Title VI of the Civil 
Rights Act of 1964. You must comply with the Fair Housing Act and Title 
VI of the Civil Rights Act of 1964, and implementing regulations in 
determining the location of any replacement housing.
    (d) Grantee Election of Requirements. You may, at your election, 
separately with regard to each site you propose comply with the 
development regulations regarding Site and Neighborhood Standards (24 
CFR 941.202 (b)-(d)), or with the Site and Neighborhood Standards 
contained in this Section.
    (e) Replacement housing located on site or in the surrounding 
neighborhood. Replacement housing under HOPE VI that is located on the 
site of the existing project or in its surrounding neighborhood will 
not require independent approval under Site and Neighborhood Standards, 
since HUD will consider the scope and impact of the proposed 
revitalization to alleviate severely distressed conditions at the 
public housing project and its surrounding neighborhood in assessing 
the application to be funded under this NOFA.
    (f) Off-Site Replacement Housing Located Outside of the Surrounding 
Neighborhood. Unless you demonstrate that there are already significant 
opportunities in the metropolitan area for assisted households to 
choose non-minority neighborhoods (or these opportunities are under 
development), HOPE VI replacement housing not covered by Section (e) 
above may not be located in an area of minority concentration (as 
defined in paragraph (g) below) without the prior approval of HUD. Such 
approval may be granted if you demonstrate to the satisfaction of HUD 
that:
    (i) You have made determined and good faith efforts, and found it 
impossible with the resources available, to acquire an appropriate 
site(s) in an area not of minority concentration; or
    (ii) The replacement housing, taking into consideration both the 
CSS activities or other revitalizing activities included in the 
Revitalization plan, and any other revitalization activities in 
operation or firmly planned, will contribute to the stabilization or 
improvement of the neighborhood in which it is located, by addressing 
any serious deficiencies in services, safety, economic opportunity, 
educational opportunity, and housing stock.
    (g) Area of Minority Concentration. The term ``area of minority 
concentration'' is any neighborhood in which:
    (i) The percentage of households in a particular racial or ethnic 
minority group is at least 20 points higher than the percentage of that 
minority group for the housing market area; i.e., the Metropolitan 
Statistical Area (MSA) in which the proposed housing is to be located; 
or
    (ii) The neighborhood's total percentage minority is at least 20 
points higher than the total percentage of all minorities for the MSA 
as a whole; or
    (iii) In the case of a metropolitan area, the neighborhood's total 
percentage of minority persons exceeds 50 percent of its population.
    (2) Housing and Services for Persons with Disabilities. (a) 
Accessibility Requirements. HOPE VI developments are subject to the 
accessibility requirements contained in several federal laws. All 
applicable laws must be read together and followed. PIH Notice 2003-31, 
available at http://www.hud.gov/offices/pih/publications/notices/, and 
subsequent updates, provides an overview of all pertinent laws and 
implementing regulations pertaining to HOPE VI. All HOPE VI multifamily 
housing projects, whether they involve new construction and 
rehabilitation, are subject to the Section 504 accessibility 
requirements described in 24 CFR part 8. See in particular, 24 CFR 
8.20-8.24. In addition, under the Fair Housing Act, all new 
construction of covered multifamily buildings must contain certain 
features of accessible and adaptable design. Units covered are all 
those in elevator buildings with four or more units and all ground 
floor units in buildings without elevators. The relevant accessibility 
requirements are provided in HUD's FHEO Web site at http://www.hud.gov/groups/fairhousing.cfm.
    (b) Specific Fair Housing requirements are:
    (i) The Fair Housing Act (42 U.S.C. 3601-19) and regulations at 24 
CFR part 100.
    (ii) The prohibitions against discrimination on the basis of 
disability, including requirements that multifamily housing projects 
comply with the Uniform Federal Accessibility Standards, and that you 
make reasonable accommodations to individuals with disabilities under 
Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and 
regulations at 24 CFR part 8.
    (iii) Title II of the Americans with Disabilities Act (42 U.S.C 
12101 et seq.) and its implementing regulations at 28 CFR part 35.
    (iv) The Architectural Barriers Act of 1968 (42 U.S.C. 4151) and 
the regulations at 24 CFR part 40.
    (c) Accessible Technology. The Rehabilitation Act Amendments of 
1998 apply to all electronic information technology (EIT) used by a 
grantee for transmitting, receiving, using, or storing information to 
carry out the responsibilities of any federal grant awarded. It 
includes, but is not limited to, computers (hardware, software, word 
processing, e-mail, and Web pages) facsimile machines, copiers, and 
telephones. When developing, procuring, maintaining, or using EIT, 
grantees must ensure that the EIT allows:
    (i) Employees with disabilities to have access to and use 
information and data that is comparable to the access and use of data 
by employees who do not have disabilities; and

[[Page 64147]]

    (ii) Members of the public with disabilities seeking information or 
service from a grantee must have access to and use of information and 
data that is comparable to the access and use of data by members of the 
public who do not have disabilities. If these standards impose an undue 
burden on a grantee, they may provide an alternative means to allow the 
individual to use the information and data. No grantee will be required 
to provide information services to a person with disabilities at any 
location other than the location at which the information services are 
generally provided.
    n. Relocation Requirements. (1) Requirements.
    (a) You must carry out relocation activities in compliance with a 
relocation plan that conforms to the following statutory and regulatory 
requirements, as applicable:
    (i) Relocation or temporary relocation carried out as a result of 
rehabilitation under an approved Revitalization plan is subject to the 
URA, the URA regulations at 24 CFR part 24, and regulations at 24 CFR 
968.108 or successor part.
    (ii) Relocation carried out as a result of acquisition under an 
approved Revitalization plan is subject to the URA and regulations at 
24 CFR 941.207 or successor part.
    (iii) Relocation carried out as a result of disposition under an 
approved Revitalization plan is subject to Section 18 of the 1937 Act, 
as amended.
    (iv) Relocation carried out as a result of demolition under an 
approved Revitalization plan is subject to the URA regulations at 24 
CFR part 24.
    (b) You must provide suitable, accessible, decent, safe, and 
sanitary housing for each family required to relocate as a result of 
revitalization activities under your Revitalization plan. Any person 
(including individuals, partnerships, corporations, or associations) 
who moves from real property or moves personal property from real 
property directly (1) because of a written notice to acquire real 
property in whole or in part, or (2) because of the acquisition of the 
real property, in whole or in part, for a HUD-assisted activity, is 
covered by federal relocation statute and regulations. Specifically, 
this type of move is covered by the acquisition policies and procedures 
and the relocation requirements of the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 1970 (URA), and the 
implementing government-wide regulation at 49 CFR part 24, and CPD 
Notice 02-08, Guidance on the Applications of the URA and Real Property 
Acquisition Policies Act of 1970, as amended, in HOPE VI Projects. The 
relocation requirements of the URA and the government-wide regulations, 
as well as CPD Notice 02-08, cover any person who moves permanently 
from real property or moves personal property from real property 
directly because of acquisition, rehabilitation, or demolition for an 
activity undertaken with HUD assistance.
    (2) Relocation Plan. Each applicant must complete a HOPE VI 
Relocation plan in accordance with the requirements stated in Section 
IV.B.6. of this NOFA.
    (a) The HOPE VI Relocation plan is intended to ensure that PHAs 
adhere to the URA and that all residents who have been or will be 
temporarily or permanently relocated from the site are provided with 
CSS activities such as mobility counseling and direct assistance in 
locating housing. Your HOPE VI Relocation plan must serve to minimize 
permanent displacement of current residents of the public housing site 
who wish to remain in or return to the revitalized community. Your HOPE 
VI Relocation plan must also furnish alternative permanent housing for 
current residents of the public housing site who do not wish to remain 
in or return to the revitalized community. Your CSS program must 
provide for the delivery of community and supportive services to 
residents prior to any relocation, temporary or permanent.
    (b) You are encouraged to involve HUD-approved housing counseling 
agencies, including faith-based, nonprofit and other organizations, and 
individuals in the community to which relocatees choose to move, in 
order to ease the transition and minimize the impact on the 
neighborhood. HUD will view favorably innovative programs such as 
community mentors, support groups, and the like.
    (c) If applicable, you are encouraged to work with surrounding 
jurisdictions to assure a smooth transition if residents choose to move 
from your jurisdiction to the surrounding area.
    o. Well-Functioning Communities. See Section V.A.8. of this NOFA 
for requirements that on-site, off-site and homeownership units create 
a well-functioning community.
    p. Soundness of Approach: Design and Evaluation. See Section V.A.9. 
of this NOFA for design and evaluation requirements.
    q. Internet Access. You must have access to the Internet and 
provide HUD with e-mail addresses of key staff and contact people.
    5. Number of Units. The number of units that you plan to develop 
should reflect your need for replacement units, the need and market 
demand for other affordable units and market units, and financial 
feasibility. The total number of units to be developed may be less 
than, or more than, the original number of public housing units in the 
targeted public housing project. HUD will review requests to revitalize 
projects with small numbers of units on an equal basis with those with 
large numbers of units.
    6. Environmental Requirements. a. HUD Approval. HUD notification 
that you have been selected to receive a HOPE VI grant constitutes only 
preliminary approval. Grant funds may not be released under this NOFA 
(except for activities that are excluded from environmental review 
under 24 CFR part 58 or 50) until the responsible entity, as defined in 
24 CFR 58.2(a)(7), completes an environmental review and you submit and 
obtain HUD approval of a request for release of funds and the 
responsible entity's environmental certification in accordance with 24 
CFR part 58 (or HUD has completed an environmental review under 24 CFR 
part 50 where HUD has determined to do the environmental review).
    b. Responsibility. If you are selected for funding and an 
environmental review has not been conducted on the targeted site, the 
responsible entity must assume the environmental review 
responsibilities for projects being funded by HOPE VI. If you object to 
the responsible entity conducting the environmental review, on the 
basis of performance, timing, or compatibility of objectives, HUD will 
review the facts and determine who will perform the environmental 
review. At any time, HUD may reject the use of a responsible entity to 
conduct the environmental review in a particular case on the basis of 
performance, timing, or compatibility of objectives, or in accordance 
with 24 CFR 58.77(d)(1). If a responsible entity objects to performing 
an environmental review, or if HUD determines that the responsible 
entity should not perform the environmental review, HUD may designate 
another responsible entity to conduct the review or may itself conduct 
the environmental review in accordance with the provisions of 24 CFR 
part 50. You must provide any documentation to the responsible entity 
(or HUD, where applicable) that is needed to perform the environmental 
review.
    c. Phase I and Phase II Environmental Site Assessments. If you are 
selected for funding, you must have a Phase I environmental site 
assessment completed in accordance with the ASTM Standards E 1527-00, 
as amended, for each affected site. A Phase

[[Page 64148]]

I assessment is required whether the environmental review is completed 
under 24 CFR part 50 or 24 CFR part 58. The results of the Phase I 
assessment must be included in the documents that must be provided to 
the responsible entity (or HUD) for the environmental review. If the 
Phase I assessment recognizes environmental concerns or if the results 
are inconclusive, a Phase II environmental site assessment will be 
required.
    d. Request for Release of Funds. You, and any participant in the 
development process, may not undertake any actions with respect to the 
project that are choice-limiting or could have environmentally adverse 
effects, including demolishing, acquiring, rehabilitating, converting, 
leasing, repairing, or constructing property proposed to be assisted 
under this NOFA, and you, and any participant in the development 
process, may not commit or expend HUD or local funds for these 
activities, until HUD has approved a Request for Release of Funds 
following a responsible entity's environmental review under 24 CFR part 
58, or until HUD has completed an environmental review and given 
approval for the action under 24 CFR part 50. In addition, you must 
carry out any mitigating/remedial measures required by the responsible 
entity (or HUD). If a remediation plan, where required, is not approved 
by HUD and a fully-funded contract with a qualified contractor licensed 
to perform the required type of remediation is not executed, HUD 
reserves the right to determine that the grant is in default.
    e. If the environmental review is completed before HUD approval of 
the HOPE VI Supplemental Submissions and you have submitted your 
Request for Release of Funds (RROF), the supplemental submissions 
approval letter shall state any conditions, modifications, 
prohibitions, etc. as a result of the environmental review, including 
the need for any further environmental review. You must carry out any 
mitigating/remedial measures required by HUD, or select an alternate 
eligible property, if permitted by HUD. If HUD does not approve the 
remediation plan and a fully funded contract with a qualified 
contractor licensed to perform the required type of remediation is not 
executed, HUD reserves the right to determine that the grant is in 
default.
    f. If the environmental review is not completed and you have not 
submitted the RROF before HUD approval of the supplemental submissions, 
the letter approving the supplemental submissions will instruct you and 
any participant in the revitalization process to refrain from 
undertaking, obligating, or expending funds on physical activities or 
other choice-limiting actions until HUD approves your RROF and the 
related certification of the responsible entity (or HUD has completed 
the environmental review). The supplemental submissions approval letter 
also will advise you that the approved supplemental submissions may be 
modified on the basis of the results of the environmental review.
    g. There must not be any environmental or public policy factors 
such as sewer moratoriums that would preclude development in the 
requested locality. You will certify to this when signing the HOPE VI 
Revitalization Grant Application Certifications.
    h. HUD's environmental Web site is located at http://www.hud.gov/offices/cpd/energyenviron/environment/index.cfm.
    7. SuperNOFA References. The following sub-sections of Section 
III.C. of the SuperNOFA are hereby incorporated by reference:
    (1) The Americans with Disabilities Act of 1990;
    (2) Affirmatively Furthering Fair Housing;
    (3) Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3);
    (4) Executive Order 13166, Improving Access to Services for Persons 
With Limited English Proficiency (LEP);
    (5) Accessible Technology;
    (6) Procurement of Recovered Materials;
    (7) Participation in HUD-Sponsored Program Evaluation;
    (8) Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects;
    (9) OMB Circulars and Government-wide Regulations Applicable to 
Financial Assistance Programs; and
    (10) Drug-Free Workplace.

IV. Application and Submission Information

    A. Addresses to Request Application Package. 1. This section 
describes how you may obtain application forms, additional information 
about the HUD program NOFAs, and technical assistance. Copies of the 
published NOFAs and application forms for HUD programs announced via 
NOFA may be downloaded from the Grants.gov Find website: http://www.grants.gov/Find, or by calling or sending an e-mail message to 
Lawrence Gnessin, Office of Public and Indian Housing at 202-401-8812, 
extension 2676, [email protected].
    a. Application Kits. There are no application kits for our programs 
this year. All the information you need to apply will be in the NOFA 
and available on the Internet. The published Federal Register document 
is the official document that HUD uses to evaluate applications. 
Therefore, if there is a discrepancy between any materials published by 
HUD in its Federal Register publications and other information provided 
in paper copy or on http://www.Grants.gov/Find, the Federal Register 
publication prevails. Please be sure to review your application 
submission against the requirements in the Federal Register file of the 
NOFA.
    b. Further Application Information. (1) The required HOPE VI 
Revitalization application documentation is listed in this NOFA. Some 
required forms, certifications, and other documents may be obtained via 
the Internet at http://www.hud.gov/offices/adm/grants/otherhud.cfm. 
This NOFA provides explicit, specific instructions as to the format and 
contents of your HOPE VI application. Your application must conform to 
the requirements of this NOFA and follow the format described in this 
NOFA.
    (2) The HOPE VI Revitalization application will be available 
through the Grants.gov Web site at http://www.grants.gov/Find and at 
HUD's grants site at http://www.hud.gov/offices/adm/grants/otherhud.cfm. It will not be made available in hardcopy form.
    (3) Technical corrections to the NOFA will be posted to the 
Grants.gov/Find and HUD's grants Web sites. Any technical corrections 
will also be published in the Federal Register. Applicants are 
responsible for monitoring these Web sites and the Federal Register 
during the application preparation period.
    B. Content and Form of Application Submission. 1. General.
    a. Signatures. Unless otherwise indicated, the Executive Director 
of the applicant PHA, or his or her designee, must sign each form or 
certification that is required to be submitted with the application, 
whether part of an attachment or a standard certification. Signatures 
need not be original in the duplicate Headquarters copy and the 
duplicate field office copy.
    b. Page Layout. (1) Double-space your narrative pages. Single-
spaced pages will be counted as two pages.
    (2) Use 8\1/2\x11-inch paper, one side only. Only the city map may 
be submitted on an 8\1/2\ by 14-inch sheet of

[[Page 64149]]

paper. Larger pages will be counted as two pages.
    (3) All margins should be approximately 1 inch. If any margin is 
smaller than \1/2\ inch the page will be counted as two pages.
    (4) Use 12-point font.
    (5) Any pages marked as sub-pages (e.g., with numbers and letters 
such as 75A, 75B, 75C), will be treated as separate pages.
    (6) If a section is not applicable, omit it; do not insert a page 
marked n/a.
    (7) Mark each Exhibit and Attachment with the appropriate tab 
listed in section IV.B.2. No material on the tab will be considered for 
review purposes, although pictures are allowed.
    (8) No more than one page of text may be placed on one sheet of 
paper; i.e., you may not shrink pages to get two or more on a page. 
Shrunken pages will be counted as multiple pages.
    (9) Do not format your narrative in columns. Pages with text in 
columns will be counted as two pages.
    (10) The applications (copy and original) should each be packaged 
in a three-ring binder.
    c. Page Count. (1) Narrative Exhibits.
    (a) The first part of your application will be comprised of 
narrative exhibits. Your narratives will respond to each rating factor 
in the NOFA and will also respond to threshold requirements. Among 
other things, your narratives must describe your overall planning 
activities, including but not limited to relocation, community, and 
supportive services, and development issues.
    (b) Each HOPE VI Revitalization application must contain no more 
than 100 pages of narrative exhibits. Any pages after the first 100 
pages of narrative exhibits will not be reviewed. Although submitting 
pages in excess of the page limitations will not disqualify an 
application, HUD will not consider the information on any excess pages, 
which may result in a lower score or failure of a threshold. Text 
submitted at the request of HUD to correct a technical deficiency will 
not be counted in the 100-page limit.
    (2) Attachments. (a) The second part of your application will be 
comprised of Attachments. These documents will also respond to the 
rating factors in the NOFA, as well as threshold and mandatory 
documentation requirements. They will include documents such as maps, 
photographs, letters of commitment, application data forms, various 
certifications unique to HOPE VI Revitalization, and other 
certifications.
    (b) Each HOPE VI Revitalization application must contain no more 
than 125 pages of attachments. Any pages after the first 125 pages of 
attachments will not be considered. Although submitting pages in excess 
of the page limit will not disqualify an application, HUD will not 
consider the information on any excess pages, which may result in a 
lower score or failure to meet a threshold.
    (3) Exceptions to page limits. The documents listed below 
constitute the only exceptions and are not counted in the page limits 
listed in Sections (1) and (2) above:
    (a) Additional pages submitted at the request of HUD in response to 
a technical deficiency.
    (b) Attachments that provide documentation of commitments from 
resource providers or CSS providers.
    (c) Attachments that provide documentation of site control and site 
acquisition in accordance with Section IV.B.4. of this NOFA.
    (d) Narratives and Attachments, as relevant, required to be 
submitted only by existing HOPE VI Revitalization grantees in 
accordance with Sections V.A.1. of this NOFA (Capacity).
    (e) Information required of MTW applicants only.
    2. Application Content. The following is a list of narrative 
exhibits and forms that are required as part of the application. 
Narrative exhibits and forms should be included in the application in 
the order listed below. Non-submission of these items may lower your 
rating score or make you ineligible for award under this NOFA. Review 
the threshold requirements in Section III.C. and mandatory 
documentation requirements in Section IV.B. of this NOFA to ascertain 
the affects of non-submission. HUD forms required by this NOFA can be 
obtained on the Internet at http://www.hud.gov/offices/adm/grants/otherhud.cfm.
    a. Narrative Exhibits.

(1) Acknowledgment of Application Receipt (form HUD-2993)
(2) Application for Federal Assistance, Standard Form SF-424
(3) HOPE VI Revitalization Application Checklist (form HUD-52800)
(4) Narrative Exhibit A: Summary Information
(5) Narrative Exhibit B: Capacity
(6) Narrative Exhibit C: Need
(7) Narrative Exhibit D: Resident and Community Involvement
(8) Narrative Exhibit E: Community and Supportive Services
(9) Narrative Exhibit F: Relocation
(10) Narrative Exhibit G: Fair Housing and Equal Opportunity
(11) Narrative Exhibit H: Well-Functioning Communities
(12) Narrative Exhibit I: Soundness of Approach

    b. Attachments.

(1) Attachments 1 through 7: HOPE VI Application Data Form, form HUD-
52860-A
(2) Attachment 8: HOPE VI Budget, form HUD-52825-A
(3) Attachment 9: TDC-Grant Limitations Worksheet, form HUD-52799
(4) Attachment 10: Extraordinary Site Costs Certification
(5) Attachment 11: Cost Control Standards Certification
(6) Attachment 12: City Map
(7) Attachment 13: Developer Certification
(8) Attachment 14: Property Management Policy Certification 
Documentation
(9) Attachment 15: Program Schedule
(10) Attachment 16: Certification of Severe Physical Distress
(11) Attachment 17: Photographs of the Severely Distressed Housing
(12) Attachment 18: Neighborhood Conditions
(13) Attachments 19 through 22: HOPE VI Revitalization Leverage 
Resources, form HUD-52797
(14) Attachment 23: HOPE VI Revitalization Resident Training & Public 
Meeting Certification, form HUD-52785
(15) Attachment 24: Commitments with CSS Providers
(16) Attachment 25: Relocation Plan Certification Documentation
(17) Attachment 26: Completed Relocation Certification Documentation
(18) Attachment 27: Documentation of Site Control for Off-Site Public 
Housing
(19) Attachment 28: Documentation of Site Control, Environmental, & 
Neighborhood Standards
(20) Attachment 29: Preliminary Market Assessment Letter
(21) Attachment 30: Zoning Approval Certification or Documentation
(22) Attachment 31: HOPE VI Revitalization Project Readiness 
Certification, form HUD-52787
(23) Attachment 32: Current Site Plan
(24) Attachment 33: Photographs of Architecture in the Surrounding 
Community
(25) Attachment 34: Conceptual Site Plan
(26) Attachment 35: Conceptual Building Elevations
(27) Attachment 36: Evaluation Commitment Letter(s)
(28) Attachment 37: Portions of the PHA Plan
(29) Attachment 38: Logic Model, form HUD-96010
(30) Attachment 39: America's Affordable Communities Initiative, form 
HUD-27300

[[Page 64150]]

(31) Attachment 40: HOPE VI Revitalization Application Certifications
(32) Attachment 41: Standard Forms and Certifications
    (a) Applicant Assurances and Certifications, form HUD-424-B,
    (b) Disclosure of Lobbying Activities, Standard Form LLL, as 
applicable
    (c) Applicant/Recipient Disclosure/Update Report, form HUD-2880,
    (d) Funding Application, Section 8 Tenant-Based Assistance Rental 
Certificate Program, Rental Voucher Program, form HUD-52515, if 
applicable.

    3. Match Commitment Letters/MOUs. If the commitment letter/MOU for 
any match funds/in-kind services is not included in the application and 
provided before the NOFA due date, the related match will not be 
considered. This is not a technical deficiency and cannot be corrected 
during the deficiency period. If the match is not met, the application 
will not be rated or ranked and will be ineligible for funding.
    4. Threshold Documentation.
    a. Appropriateness of Proposal. In accordance with Section 24(e)(1) 
of the 1937 Act, each application must demonstrate the appropriateness 
of the proposal in the context of the local housing market relative to 
other alternatives. You must briefly discuss other possible 
alternatives to your proposal and explain why your plan is more 
appropriate. This is a statutory requirement and an application 
threshold. Any deficiencies in your narrative may not be corrected 
after the application is submitted. For examples of alternative 
proposals, see the Appropriateness of Proposal Threshold in Section 
III.C.
    b. Contiguous Projects. If you include more than one project in 
your application, you must provide a map that clearly indicates that 
the projects are within a quarter-mile of each other.
    c. Cost Control Standards Certification. You must include a 
certification by an independent cost estimator, architect, engineer, 
contractor, or other qualified third party professional that your cost 
estimates meet the standards of Section IV.E. of this NOFA. The 
certifier cannot work for you.
    d. Need for HOPE VI Funding. In order to document that you need 
HOPE VI funding to complete your proposed revitalization effort, you 
must include in your application:
    (1) The portion of your PHA plan that lists the planned uses of 
your FY1999-2004 Capital Funds (including CGP and CIAP funds). Funds 
earmarked in the PHA plan for uses other than the revitalization 
proposed in this application will not be considered available; and
    (2) A table that states:
    (a) The amount of your total FY1999-2004 Capital Funds;
    (b) The amount of your total unobligated FY1999-2004 Capital Funds; 
and
    (c) The planned amounts and uses of unobligated funds earmarked in 
your PHA plan for purposes other than your application's proposed HOPE 
VI activities.
    (3) Applicants must ensure that their obligation and expenditure 
information was updated in LOCCS prior to the application deadline, 
except in the case of some moving to work applicants, which are not 
required to enter obligations into LOCCS in accordance with their MTW 
agreements.
    (3) For MTW PHAS that do not record capital funds obligations in 
LOCCS, you must provide a certification of your obligation rate in 
order to receive any points for the Need for HOPE VI Funding rating 
factor.
    e. Non-Public Housing Funding for Non-Public Housing or Replacement 
Units. Public housing funds must not be used to develop non-Replacement 
Housing Units. To demonstrate that non-public housing funds will be of 
a sufficient amount to develop non-Replacement Housing Units, 
Attachments 4 and 7 in the Application Data Form, form HUD-52860-A, 
must show that the ratio of leverage development funds to public 
housing funds meets or exceeds the ratio of non-Replacement Housing 
Units to Replacement Housing Units. For example, if Attachment 4 states 
that you plan to develop a total of 25 affordable and market-rate units 
plus a total of 50 public housing and Homeownership units, and 
Attachment 7 shows a total of $10 million in HOPE VI plus other public 
housing funds (CGP, CFP, etc.), you must show at least $5 million in 
leverage funds. That is, 25 units/50 units: $5 million/$10 million.
    f. Program Schedule. Your application must contain a program 
schedule that provides a feasible plan to meet the schedule 
requirements of Section VI.B.2. of this NOFA, with no impediments such 
as litigation that would prevent timely startup. The program schedule 
must indicate the date when the development proposal, i.e., whether 
mixed-finance development, homeownership development, etc., for each 
phase of the revitalization plan will be submitted to HUD. For 
application evaluation only, you should assume the following award and 
post-award dates.

------------------------------------------------------------------------
               Milestone                               Date
------------------------------------------------------------------------
Grant Award............................  April 1, 2005.
Grant Agreement Execution..............  July 1, 2005.
HUD's written request for Supplemental   August 1, 2005.
 Submissions.
HUD's approval of Supplemental           September 1, 2005.
 Submissions.
------------------------------------------------------------------------

    If grant award takes place after October 1, 2004, the grantee's 
program schedule may be changed in the supplemental submissions to 
account for the period of time between October 1, 2004, and the actual 
date of grant award.
    g. Selection of Developer. In order to be eligible for funding, you 
must provide a signed certification that:
    (1) You have initiated an RFQ by the application due date for the 
competitive procurement of a developer for your first phase of 
construction. It is not necessary to have executed a Master Development 
Agreement with the selected developer in order to meet the threshold; 
or,
    (2) You will act as your own developer for the proposed project.
    h. Site Control. If you propose to develop off-site housing in any 
phase of your proposed revitalization plan, you MUST provide evidence 
in your application that you (not your developer) have site control of 
the property(ies). Evidence may include an option to purchase the 
property, a sales agreement, a land swap, or a deed. Evidence may not 
include a letter from the Mayor or other official, letters of support 
from members of the appropriate municipal entities, or a resolution 
evidencing the PHA's intent to exercise its power of eminent domain. 
Evidence of site control may only be made contingent upon the receipt 
of the HOPE VI grant, satisfactory compliance with the environmental 
review requirements in accordance with this NOFA, and the site and 
neighborhood standards in Section III.C.4.m. of this NOFA. If you 
demonstrate site control through an option to purchase, the option must 
extend for at least 180 days after the application due date. If you 
propose to develop off-site housing and you do not provide acceptable 
site control, your entire application will be ineligible for funding.
    i. Zoning Approval.
    (a) If you are proposing to use off-site parcels of land for 
housing development or other uses that, until this point in time, have 
been zoned for a purpose

[[Page 64151]]

different than the one proposed in your revitalization plan, your 
application must include:
    (i) a certification from the appropriate local official documenting 
that all required zoning approvals have been secured for such parcels; 
or,
    (ii) the actual zoning approval document for the parcel(s).
    (b) If you are proposing to use off-site parcels of land for 
housing development or other uses and those parcels are already zoned 
for your chosen use, your application must include a certification 
signed by the Executive Director stating that all zoning is correct.
    (c) For example, if you propose to develop housing on land that is 
currently zoned as parkland, you must provide evidence in the 
application that the zoning change has been secured to permit housing 
development. If you propose to keep the land as parkland, you must 
provide a certification in the application that the zoning is for 
parkland.
    5. Certification Thresholds Documentation. Omission of, or 
incorrect/improper signature on, any of the following documents is 
considered a technical deficiency and must be cured (corrected) within 
the cure period stated in Section IV.B. of the SuperNOFA. Applications 
that remain deficient after the cure period will not be rated or ranked 
and will be ineligible for funding.
    a. Market-rate Housing: Market Assessment Letter. (1) If you 
include market-rate housing, community facilities (if market-driven, 
e.g., a YMCA; a community facility that is primarily intended to 
facilitate the delivery of community and supportive services for 
residents of the targeted severely distressed public housing project 
and of off-site replacement housing does not need to be addressed in 
the market assessment letter), economic development and retail 
structures in your Revitalization plan, you must demonstrate that there 
is a demand for these market-rate housing units, community facilities, 
economic development and retail structures of the type, number, and 
size proposed in the location you have chosen.
    (2) In your application you must provide a preliminary market 
assessment letter prepared by an independent, third party, credentialed 
market research firm, or professional that describes its assessment of 
the demand and associated pricing structure for the proposed 
residential units and any community facilities, economic development, 
and retail structures, based on the market and economic conditions of 
the project area.
    (3) If, after the cure period, this letter is not included in your 
application, the application will not be rated or ranked and will be 
ineligible for funding.
    b. Operation and Management Principles and Policies Certification. 
You must certify that you will implement the Operation and Management 
Principles and Policies stated in Section III.C. of this NOFA. The 
certification should reference 24 CFR part 966 and should outline the 
requirements in Section III.C.4.h. If, after the deficiency cure 
period, this certification is not properly included in your 
application, the application will be ineligible for funding.
    c. Relocation Plan Certification. (1) You must certify that the 
HOPE VI Relocation plan has been completed and that it conforms to the 
URA requirements as described in Section V.A.6. of this NOFA.
    (2) If relocation was completed (i.e., the targeted public housing 
site is vacant) as of the application due date, rather than providing a 
certification that the HOPE VI Relocation plan has been completed, a 
certification that the relocation was completed must be included in the 
application. This certification may be provided in the form of a 
letter.
    (3) If, after the deficiency cure period, neither of these 
certifications is properly included in your application, the 
application will not be rated or ranked and will be ineligible for 
funding.
    d. Resident Involvement in the Revitalization Program 
Certification. You must submit a signed certification that resident 
training sessions and public meetings were held and that you involved 
affected public housing residents at the beginning and during the 
planning process for the revitalization program, prior to submission of 
an application. The certification must state that listed topics, as 
described in Section III.C.4. of this NOFA were covered, that one of 
the meetings took place at the beginning of the revitalization planning 
process, and that two of the meetings and one training session took 
place after the publication date of this NOFA in the Federal Register. 
The certification must include the dates of the training session and 
meetings. The certification must show that each of the public meetings 
and resident training took place on different days.
    e. Severely Distressed Certification. You must certify that the 
target project is severely distressed. See Section I.C. of this NOFA 
for the definition of ``severely distressed.'' In order to certify to 
severe physical distress, your application must include a certification 
that is signed by an engineer or architect licensed by a state 
licensing board. The license does not need to have been issued in the 
same state as the severely distressed project. The engineer or 
architect must include his or her license number and state of 
registration on the certification. The engineer or architect may not be 
an employee of the housing authority or the city. A Certification of 
Severe Physical Distress is provided on the Internet at http://www.grants.gov.
    f. Standard Forms and Certifications. (1) The last part of your 
application will be comprised of standard certifications common to many 
HUD programs. Required forms are included in the HOPE VI Application 
and will be available electronically on the grants.gov Web site.
    (2) These forms must be placed at the back of the application, 
except for the Application for Federal Assistance (SF-424) and the 
Acknowledgment of Application Receipt (HUD-2993). These two forms must 
be the first two pages of your application.
    g. TDC and Extraordinary Site Costs Certification. (1) An 
Extraordinary Site Costs Certification must be included in your 
application if such costs are included in the calculations you used to 
determine your requested award amount. If this certification is not 
included in the application on or before the end of the deficient 
application cure period, extraordinary site costs will not be allowed 
in the award amount.
    (2) The certification must be signed by a licensed engineer or 
architect who is not an employee of the housing authority or the city. 
The certification must include an engineer's or architect's license 
number and state of registration.
    6. Rating Factor Documentation. To receive points for certain 
rating factors, you must include specific documentation that is stated 
in this NOFA. When specific documentation is necessary, that 
documentation is stated in this section of the NOFA or is cross-
referenced here and is included with the related rating factors in 
Section V.A. of this NOFA.
    a. Documentation for Capacity. See Section V.A.1. of this NOFA for 
documentation requirements.
    b. Documentation for Need. (1) State the number of units that you 
currently have under ACC.
    (2) See Section V.A.2. of this NOFA for the subjects and items that 
you should include in your Rating Factor narrative.
    c. Documentation for Leverage Resources. In your application, you 
will enter basic information about each resource on the appropriate 
resource summary form: name of the organization

[[Page 64152]]

providing the resource, the dollar value of the resource, and its 
proposed use.
    (1) Basic Documentation Requirements. (a) For each resource you 
list, you must provide a commitment document, such as a letter, 
memorandum of understanding, agreement to participate, city council 
resolution, or other evidence of the resource to be committed, which 
may be subject to the receipt of a HOPE VI Revitalization grant. An 
official of the organization legally authorized to make commitments on 
behalf of the organization must sign the commitment document.
    (b) Each commitment document must include the dollar value and time 
duration of the commitment (e.g., $10,000 will be provided each year 
for four years for a total commitment of $40,000). The dollar value 
must be consistent with the amount entered on the resource summary 
form. On the form, you will also enter the page number of your 
application where the commitment document is located.
    (c) Endorsements or general letters of support from organizations 
or vendors alone will not count as resources and should not be included 
in the application or on a Resources Summary Form.
    (d) For CSS leverage resources, include only funds/in-kind services 
that will be newly generated for HOPE VI activities. If an existing 
service provider significantly increases the level of services provided 
at the site, the increased amount of funds may be counted, except for 
TANF cash benefits. HUD will not count any funds that have already been 
provided on a routine basis, such as TANF cash benefits and in-kind 
services that have been supporting ongoing CSS-type activities.
    (e) Even though an in-kind CSS contribution may count as a 
resource, it may not be appropriate to include on the sources and uses 
attachment. Each source on the sources and uses attachment must be 
matched by a specific and appropriate use. For example, donations of 
staff time may not be used to offset costs for infrastructure.
    (2) Types of Development Resources. (a) HUD seeks to fund mixed-
finance developments that use HOPE VI funds to leverage the maximum 
amount of other physical development funds, particularly from private 
sources, that will result in revitalized public housing, other types of 
assisted and market-rate housing, and private retail and economic 
development. Each resource may be used for only one leverage category: 
Development, CSS, Anticipatory, or Collateral, as described in Section 
V. A. of this NOFA. Any resource listed in more than one category will 
be disqualified from all categories. Types of resources that may be 
counted include:
    (i) Private mortgage-secured loans and other debt. Your application 
must include each loan's expected term maturity and sources of 
repayment.
    (A) Where there is both a construction loan and a permanent take-
out loan that will replace that construction loan, you must provide 
documentation of both, but only the value of the permanent loan will be 
counted as leverage.
    (B) For privately financed homeownership construction loans, 
acceptable documentation of construction loans will be considered as 
leverage. Documentation of permanent financing is not required.
    (C) If you have obtained a construction loan but not a permanent 
loan, the value of the acceptably documented construction loan will be 
counted as leverage.
    (ii) Insured loans.
    (iii) Donations and contributions.
    (iv) Housing trust funds.
    (v) Net sales proceeds from a homeownership project. Down payments 
from homebuyers will not be counted. Down payment assistance may be 
counted as a physical development resource if it is provided by a third 
party entity not related to the homebuyer.
    (vi) Funds committed to build private sector housing in direct 
connection with the HOPE VI Revitalization plan.
    (vii) Tax Increment Funding (TIF).
    (viii) Tax Exempt Bonds. Your application must include a 
description of the use and term.
    (ix) Other Public Housing Funds. Other public housing sources 
include HOPE VI Revitalization funds from other grants, HOPE VI 
Demolition funds, Capital Fund program funds, and proposals to use 
operating subsidy for debt service. These HUD public housing funds will 
not be counted for points under CSS, Development and Collateral 
leverage in this NOFA. However, they can be used as part of your 
revitalization plan. Other public housing sources, except for HOPE VI 
Revitalization funds, will be counted toward your leverage rating for 
anticipatory leverage and may be used toward your match requirement.
    (x) Other Federal Funds. Other federal sources may include non-
public housing funds provided by HUD.
    (xi) Sale of Land. The value of land may be included as a 
development resource only if this value is a sales proceed. Absent a 
sales transaction, the value of land may not be counted.
    (xii) Donations of Land. Donations of land may be counted as a 
development resource, only if the donating entity owns the land to be 
donated. Donating entities may include a city, county, church, 
community organization, etc. The application must include documentation 
of this ownership, signed by the appropriate authorizing official.
    (xiii) Low-Income Housing Tax Credits (LIHTC). Low-Income Tax 
Credits are authorized by Section 42 of the IRS Code which allows 
investors to receive a credit against federal tax owed in return for 
providing funds to developers to help build or renovate housing that 
will be rented only to lower-income households for a minimum period of 
15 years. There are two types of credits, both of which are available 
over a 10-year period: a nine percent credit on construction/rehab 
costs, and a four percent credit on acquisition costs and all 
development costs financed partially with below-market federal loans 
(e.g., tax exempt bonds). Tax credits are generally reserved annually 
through State Housing Finance Agencies, a directory of which can be 
found at http://www.ncsha.org/ncsha/public/statehfadirectory/index.htm. 
Only tax credits that have been reserved for the project will be 
counted as development leveraging.
    (A) If you propose to include LIHTC equity as a development 
resource for any phase of development, your application must include a 
LIHTC reservation letter from your state or local housing finance 
agency in order to have the tax credit amounts counted as development 
leveraging. This letter must constitute a firm commitment and can only 
be conditioned on the receipt of the HOPE VI grant. HUD acknowledges 
that, depending on the housing finance agency, documentation for four 
percent tax credits may be represented in the form of a tax-exempt bond 
award letter. Accordingly, it will be accepted for leverage scoring 
purposes under this section, if you demonstrate that this is the only 
available evidence of four percent tax credits, and assuming that this 
documentation clearly indicates that tax-exempt bonds have been 
committed to the project.
    (B) Only LIHTC commitments that have been secured as of the 
application deadline will be considered for the scoring under this 
section. LIHTC commitments that are not secured (i.e., documentation in 
the application does not demonstrate they have been reserved by the 
state or local housing

[[Page 64153]]

finance agency) will not be counted as leverage for scoring under this 
section.
    (3) Sources of Development Resources. You must actively enlist 
other stakeholders who are vested in and can provide significant 
financial assistance to your revitalization effort. Sources of 
resources that can be used for leveraging may include:
    (a) Public, private, and nonprofit entities, including LIHTC 
purchasers;
    (b) State and local housing finance agencies;
    (c) Local governments;
    (d) The city's housing and redevelopment agency or other comparable 
agency. HUD will consider this to be a separate entity with which you 
are partnering if your PHA is also a redevelopment agency or otherwise 
has citywide responsibilities.
    (i) You are strongly urged to seek a pledge of Community 
Development Block Grant (CDBG) funds for improvements to public 
infrastructure such as streets, water mains, etc. related to the 
revitalization effort. CDBG funds are awarded by HUD by formula to 
units of general local government and to states, which may then award a 
grant or loan to a PHA, a partnership, a nonprofit organization, or 
other entity for revitalization activities, including loans to a 
project's for-profit partnership. More information about the CDBG 
Program can be found at http://www.hud.gov/offices/cpd/index.cfm.
    (ii) The city, county, or state may provide HOME funds to be used 
in conjunction with HOPE VI funds. The Home Investment Partnership 
program provides housing funds that are distributed from HUD to units 
of general local governments and states. Funds may be used for new 
construction, rehabilitation, acquisition of standard housing, 
assistance to homebuyers, and tenant-based rental assistance. Current 
legislation allows HOME funds to be used in conjunction with HOPE VI 
funds, but they may not be used in conjunction with public housing 
capital funds under Section 9(d) of the 1937 Act. Information about the 
HOME program can be found at: http://www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm.
    (e) Foundations;
    (f) Government Sponsored Enterprises such as the Federal Home Loan 
Bank, Fannie Mae, and Freddie Mac;
    (g) HUD and other federal agencies;
    (h) Financial institutions, banks, or insurers; and
    (i) Other private funders.
    (4) Types of CSS Resources. (a) HUD seeks to fund mixed-finance 
developments that use HOPE VI funds to leverage the maximum amount of 
other resources to support CSS activities in order to ensure the 
successful transformation of the lives of residents and the 
sustainability of the revitalized public housing development. 
Leveraging scarce HOPE VI CSS funds with other funds and services is 
critical to the sustainability of CSS activities so that they will 
continue after the HOPE VI funds have been expended. Commitments of 
funding or in-kind services related to the provision of CSS activities 
may be counted as CSS resources and toward the calculation of CSS 
leverage. Note that you may include ONLY funds that will be newly 
generated for HOPE VI activities, per Section III.C.4.l. of this NOFA. 
Types of resources that may be counted include but are not limited to:
    (i) Materials;
    (ii) A building;
    (iii) A lease on a building;
    (iv) Other infrastructure;
    (v) Time and services contributed by volunteers;
    (vi) Staff salaries and benefits;
    (vii) Supplies; and
    (viii) Other types of CSS resources as described in Section 
III.C.4.l. of this NOFA.
    (b) Note that wages projected to be paid to residents through jobs, 
or projected benefits (e.g., health/insurance/retirement benefits) 
related to those projected jobs, provided by CSS partners will not be 
counted as leverage.
    (5) Sources of CSS Resources. In order to achieve quantifiable 
self-sufficiency results, you must form partnerships with organizations 
that are skilled in the delivery of services to residents of public 
housing and that can provide commitments of resources to support those 
services. You must actively enlist as partners other stakeholders who 
are vested in and can provide commitments of funds and in-kind services 
for the CSS portion of your revitalization effort. See Section 
III.C.4.k. and l. for a list of the kinds of organizations, agencies, 
and other providers that may be used as sources of CSS resources.
    d. Documentation for Resident Involvement. See Sections IV.B.5. and 
V.A.4. of this NOFA for documentation requirements.
    e. Documentation for CSS. See Sections III.C.4. and V.A.5. for 
documentation requirements.
    f. Documentation for Relocation. There is a program requirement 
that you must complete a HOPE VI Relocation plan.
    (1) In your application, you must certify that the HOPE VI 
Relocation plan has been completed and that it:
    (a) Conforms to the URA requirements as described in Section d. 
below;
    (b) Is designed to minimize permanent displacement of current 
residents of the public housing site who wish to remain in or return to 
the revitalized community, while furnishing alternative housing to 
current residents of the public housing site who do not wish to remain 
in or return to the revitalized community;
    (c) Gives existing residents priority for occupancy in planned 
public housing units, or for residents that can afford to live in other 
units, priority for those planned units and
    (d) In connection with your CSS program, provides for community and 
supportive services to residents prior to any relocation.
    (2) If relocation was completed as of the application deadline 
(i.e., the targeted public housing site is vacant), rather than 
providing a certification that the HOPE VI Relocation plan has been 
completed, a certification that the relocation was completed must be 
included in the application. This certification may be provided in the 
form of a letter.
    g. Documentation for Fair Housing and Equal Opportunity. See 
Sections III.C.4., IV.B. and V.A.7. for documentation requirements.
    h. Documentation for Well-Functioning Community. See Sections 
III.C.4., IV.B. and V.A.8. of this NOFA for documentation requirements.
    i. Documentation for Soundness of Approach. See Sections IV.B. and 
V.A.9. of this NOFA for documentation requirements.
    j. Documentation for Incentive Criteria on Regulatory Barrier 
Removal. You must include the completed form HUD-27300 in your 
application.
    6. Housing Choice Voucher (HCV) Assistance. (1) This NOFA will fund 
HCVs that are necessary to relocate HOPE VI affected public housing 
residents. In accordance with HUD Notice PIH 2004-4 (HA), Submission 
and Processing of Public Housing Agency (PHA) Applications for Housing 
Choice Vouchers for Relocation or Replacement Housing Related to 
Demolition or Disposition (Including HOPE VI), and Plans for Removal 
(Required/Voluntary Conversion Under Section 33 of the 1937 Act, As 
Amended, and Mandatory Conversion Under Section 202 of the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996) of Public 
Housing Units, you should determine the number of vouchers that it is 
eligible for, that are related to this HOPE VI Revitalization 
development.

[[Page 64154]]

    (2) You should submit the HCV application, in accordance with HUD 
Notice PIH 2004-4 (HA), for these HOPE VI related vouchers, as a part 
of the application.
    (a) If you are funded by this NOFA, the HCV application will be 
processed.
    (b) If you are not funded by this NOFA, the HCV application will 
not be processed.
    (3) The HCV request should be located with the Standard Forms and 
Certifications at the back of the application.
    (4) The notice can be obtained through the Internet at http://www.hudclips.org/cgi/index.cgi.
    (5) To assist HUD in estimating the overall cost of HCV assistance, 
you should include a copy of the Funding Application, Section 8 Tenant-
Based Assistance Rental Certificate Program, Rental Voucher Program, 
form HUD-52515, in your NOFA application.
    7. Further Application Instructions. For more detailed application 
instructions, you should read, ``HOPE VI Revitalization Application 
Instructions,'' available on the Grants.gov Web site.
    C. Submission Dates and Times.
    1. Application Submission Timeframes. a. Application Due Date. 
Revitalization grant applications are due at HUD Headquarters on 
February 1, 2005. See Sections IV.F. of this NOFA and the SuperNOFA for 
application, submission and timely receipt requirements.
    2. Form of Acceptance. HUD will consider an application as being 
accepted when it is delivered to the Office of Public Housing 
Investments, Room 4130, HUD Headquarters, 451 7th Street, SW., 
Washington, DC 20410. Upon delivery and acceptance, the Grant 
Administrator will manually add the application's PHA name, development 
name, time of receipt, and date of receipt to an application receipt 
log.
    3. Submission Address. See Section IV.F.1. of this NOFA for the 
application submission address.
    4. Field Office Copy. You must send one duplicate copy of your 
application to your HUD field office. The HUD field office copy of the 
application is due before 4 p.m. on the application due date. If the 
HUD field office receives an application on time, but the application 
is not received on time at Headquarters, it will not be considered.
    5. No Facsimiles or Videos. HUD will not accept for review and 
evaluation, or fund, any applications sent by facsimile (fax). However, 
facsimile corrections to technical deficiencies will be accepted, as 
described in Section V.B.4. of the SuperNOFA. Also, videos submitted as 
part of an application will not be viewed.
    6. Acknowledgement of Application Receipt. If you wish to receive 
acknowledgement of HUD's receipt of the application, the Acknowledgment 
of Application Receipt, form HUD-2993, should be included in the front 
of the application. After receipt, HUD will return the form to you.
    D. Intergovernmental Review. Executive Order 12372 was issued to 
foster intergovernmental partnership and strengthen federalism by 
relying on state and local processes for the coordination and review of 
federal financial assistance and direct federal development. The order 
allows each state to designate an entity to perform a state review 
function. The official listing of state points of contact (SPOC) for 
this review process can be found at: http://www.whitehouse.gov/omb/grants/spoc.html. States that are not listed on the Web site have 
chosen not to participate in the intergovernmental review process, and 
therefore do not have a SPOC. If you are located within one of those 
states, you may send applications directly to HUD. If your state has a 
SPOC, you should contact it to see if it is interested in reviewing 
your application prior to submission to HUD. Please make sure that you 
allow ample time for this review process when developing and submitting 
your application.
    E. Funding Restrictions.
    1. Statutory Time Limits. a. Required Obligation Date. Funds 
appropriated for the HOPE VI program for FY2004 must be obligated on or 
before September 30, 2005. Any funds that are not obligated by that 
date will be recaptured by the Treasury, and thereafter will not be 
available for obligation for any purpose.
    b. Required Expenditure Date. In accordance with 31 U.S.C. 1552, 
all FY2004 HOPE VI funds must be expended by September 30, 2010. Any 
funds that are not expended by that date will be cancelled and 
recaptured by the Treasury, and thereafter will not be available for 
obligation or expenditure for any purpose.
    2. Funding for Applications to this NOFA Only. HUD will not use any 
funds from this NOFA to fund any non-selected HOPE VI related 
applications submitted in previous years. Only applications submitted 
under this FY2004 NOFA will be considered for funding.
    3. Grant Amount Limitations. a. Requested Amount. The maximum 
amount you may request in your application for grant award is limited 
to $20 million or the sum of the amounts in Section IV.E.5. below, 
whichever is lower. HCV assistance is in addition to this amount.
    4. Ineligible Activities. a. You may not use HOPE VI Revitalization 
Grant funds to pay for any revitalization activities carried out on or 
before the date of the letter announcing the award of the HOPE VI 
Grant.
    b. Market-Rate Units. HOPE VI funds may not be used to develop 
market-rate units or affordable housing units that do not qualify as 
public housing or homeownership replacement units.
    c. Retail or Commercial Development. HOPE VI funds may not be used 
for hard construction costs related to, or for the purchase of 
equipment for, retail, commercial, or non-public housing office 
facilities.
    5. Total Development Cost (TDC). a. The ``TDC Limit'' (24 CFR 
941.306, Notice PIH 2004-6 (HA)) refers to the maximum amount of HUD 
funding that HUD will approve for development of specific public 
housing units in a given location. The TDC limit applies only to the 
costs of development of public housing that are paid directly with HUD 
public housing funds, including HOPE VI funds; a PHA may exceed the TDC 
limit using non-public housing funds such as CDBG, HOME, low-income 
housing tax credit equity, etc.
    b. The HUD TDC Cost Tables are issued for each calendar year for 
the building type and bedroom distribution for the public housing 
replacement units. Use the TDC limits in effect at the time this HOPE 
VI NOFA is published when making your TDC calculations. TDC definitions 
and limits in the final rule are summarized as follows:
    (1) The total cost of development, including relocation costs, is 
limited to the sum of:
    (a) HUD's TDC limits up to 100 percent of HUD's published TDC 
limits for the costs of demolition and new construction, multiplied by 
the number of HOPE VI public housing replacement units; or
    (b) Ninety percent of the TDC limits, multiplied by the number of 
public housing units after substantial rehabilitation and 
reconfiguration.
    (2) The TDC limit for a project is made up of the following 
components:
    (a) Housing Cost Cap (HCC): HUD's published limit on the use of 
public housing funds for the cost of constructing the public housing 
units, which includes unit hard costs, builder's overhead and profit, 
utilities from the street, finish landscaping, and a hard cost 
contingency. Estimates should take into consideration the Davis-Bacon 
wage rate and other requirements as described in ``Labor

[[Page 64155]]

Standards'', Section III.C.4.g. of this NOFA.
    (b) Community Renewal (CR): The balance of funds remaining within 
the project's TDC limit after the housing construction costs described 
in (i) above are subtracted from the TDC limit. This is the amount of 
public housing funds available to pay for PHA administration, planning, 
infrastructure and other site improvements, community and economic 
development facilities, acquisition, relocation, demolition, and 
remediation of units to be replaced on site, and all other development 
costs.
    (3) CSS. You may request an amount not to exceed 15 percent of the 
total HOPE VI grant to pay the costs of CSS activities, as described in 
Section III.C.4.k.(2) of this NOFA. These costs are in addition to, 
i.e., excluded from, the TDC calculation above.
    (4) Demolition and Site Remediation Costs of Unreplaced On-site 
Units. You may request an amount necessary for demolition and site 
remediation costs of units that will not be replaced on-site. This cost 
is in addition to (i.e., excluded from) the TDC calculation above.
    (5) Extraordinary Site Costs. (a) You may request a reasonable 
amount to pay extraordinary site costs, which are construction costs 
related to unusual pre-existing site conditions that are incurred, or 
anticipated to be incurred. If such costs are significantly greater 
than those typically required for similar construction, are verified by 
an independent, certified engineer or architect (See Section IV.B. for 
documentation requirements.), and are approved by HUD, they may be 
excluded from the TDC calculation above. Extraordinary site costs may 
be incurred in the remediation and demolition of existing property, as 
well as in the development of new and rehabilitated units. Examples of 
such costs include, but are not limited to: Abatement of extraordinary 
environmental site hazards; removal or replacement of extensive 
underground utility systems; extensive rock and soil removal and 
replacement; removal of hazardous underground tanks; work to address 
unusual site conditions such as slopes, terraces, water catchments, 
lakes, etc.; and work to address flood plain and other environmental 
remediation issues. Costs to abate asbestos and lead-based paint from 
structures are normal demolition costs. Extraordinary measures to 
remove lead-based paint that has leached into the soil would constitute 
an extraordinary site cost.
    (b) Extraordinary site costs must be justified and verified by a 
licensed engineer or architect who is not an employee of the housing 
authority or the city. The engineer or architect must provide his or 
her license number and state of registration. If this certification is 
not included in the application after the cure period described in 
Section IV.B.4. of the SuperNOFA, extraordinary site costs will not be 
allowed in the award amount. In this case, the amount of the 
extraordinary site costs included in the application will be subtracted 
from the grant amount.
    6. Cost Control Standards. a. Your projected hard development costs 
must be realistic, developed through the use of technically competent 
methodologies, including cost estimating services, and comparable to 
industry standards for the kind of construction to be performed in the 
proposed geographic area.
    b. Your cost estimates must represent an economically viable 
preliminary plan for designing, planning, and carrying out your 
proposed activities in accordance with local costs of labor, materials, 
and services.
    c. Your projected soft costs must be reasonable and comparable to 
industry standards. Upon award, soft costs will be subject to HUD's 
``Safe Harbor'' cost control standards. For rental units, these safe 
harbors provide specific limitations on such costs as developer's fees 
(between 9 and 12 percent), PHA administration/consultant cost (no more 
than 3 to 6 percent of the total project budget), contractor's fee (6 
percent), overhead (2 percent), and general conditions (6 percent). 
HUD's Cost Control and Safe Harbor Standards can be found on the 
Grants.gov Web site.
    d. If you are eligible for funding, HUD will delete any unallowable 
items from your budget and may reduce your grant accordingly.
    7. Withdrawal of Grant Amounts. In accordance with Section 24(i) of 
the 1937 Act, if a grantee does not proceed within a reasonable 
timeframe, as described in Section VI.B.2. of this NOFA, HUD shall 
withdraw any unobligated grant amounts. HUD shall redistribute any 
withdrawn amounts to one or more other applicants eligible for HOPE VI 
assistance or to one or more other entities capable of proceeding 
expeditiously in the same locality in carrying out the Revitalization 
plan of the original grantee.
    F. Other Submission Requirements.
    1. Address for Submitting Applications. Send the original and one 
copy of your completed application to Mr. Milan Ozdinec, Deputy 
Assistant Secretary for Public Housing Investments, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Room 4130, 
Washington, DC 20410-5000. Please make sure that you note the room 
number. The correct room number is very important in ensuring that your 
application is properly accepted and not misdirected.
    2. Wrong Address. Applications mailed to the wrong location or 
office designated for receipt of the application, which result in the 
designated office not receiving your application in accordance with the 
requirements for timely submission, will result in your application 
being considered late and will not receive funding consideration. HUD 
will not be responsible for directing packages to the appropriate 
office(s).
    3. Delivery and Receipt Procedures. ``Delivery and Receipt 
Procedures'' in Section IV.F. of the SuperNOFA applies, with the 
following exception:
    a. Applications sent to HUD through the United States Postal 
Service (USPS) will be considered late and ineligible to receive 
funding if not received on or before the application due date, 
regardless of the postmark date.
    4. Proof of Timely Submission. ``Proof of Timely Submission `` in 
Section IV.F. of the SuperNOFA applies, with the following exception:
    a. Proof of timely submission for all applications, regardless of 
whether they are delivered through USPS, overnight mail service, 
courier service or hand-carried, shall be the date and time recorded by 
the Grant Administrator in the application receipt log. See Section 
IV.C.2. of this NOFA for information on the application receipt log.
    5. SuperNOFA References. The following sub-sections of Section IV. 
of the SuperNOFA are hereby incorporated by reference:
    (1) Addresses to Request Application Package;
    (2) Application Kits;
    (3) Guidebook and Further Information; and
    (5) Addresses.

V. Application Review Information

    A. Criteria.
    1. Rating Factor: Capacity--25 Points Total.
    a. The term ``your Team'' includes PHA staff who will be involved 
in HOPE VI grant administration, and any alternative management entity 
that will manage the revitalization process, be responsible for meeting 
construction time tables, and obligating amounts in a timely manner. 
This includes any developer partners, program managers, property 
managers, subcontractors, consultants, attorneys, financial 
consultants, and other entities or individuals identified and proposed 
to carry out program activities.

[[Page 64156]]

    b. Development Capacity.
    (1) Capacity of developer--6 points
    (a) You will receive 6 points if your application demonstrates 
that:
    (i) Your developer or other team members have extensive, recent 
(within the last five years), and successful experience in planning, 
implementing, and managing physical development, financing, leveraging, 
and partnership activities that are comparable in character, scale, and 
complexity to your proposed revitalization activities;
    (ii) Your developer or other team members have extensive, recent 
(within the last five years), and successful experience in planning, 
implementing, and managing Capital Fund program projects.
    (iii) You propose development using low-income tax credits, and 
you, your developer, or other team members have relevant tax credit 
experience; and
    (iv) If homeownership, rent-to-own, cooperative ownership, or other 
major development components are proposed, you, your developer, or 
other team members have relevant, successful experience in development, 
sales, or conversion activities.
    (b) You will receive 4 points if your developer or other team 
members have some but not extensive experience in the factors described 
above.
    (c) You will receive 0 points if your developer or other team 
members do not have the experience described and the application does 
not demonstrate that it has the capacity to carry out your 
Revitalization plan. You will also receive 0 points if your application 
does not address this factor to an extent that makes HUD's rating of 
this factor possible.
    c. Development Capacity of Applicant--6 points.
    (1) You will receive 6 points if your application demonstrates 
that:
    (i) You have identified potential gaps in your current staffing in 
relation to development activities, and you have plans to fill such 
gaps, internally or externally, in a timely manner in order to 
implement successfully your Revitalization plan;
    (ii) You have demonstrated that physical development activities 
will proceed as promptly as possible following grant award, and you 
will be able to begin significant construction within 18 months of the 
award of the grant.
    (iii) Your program schedule indicates the date on which the 
development proposal, i.e., whether mixed-finance development, 
homeownership development, etc., for each phase of the revitalization 
plan will be submitted to HUD. For application evaluation only, you 
should assume the following award and post-award dates.

------------------------------------------------------------------------
               Milestone                               Date
------------------------------------------------------------------------
Grant Award............................  April 1, 2005.
Grant Agreement Execution..............  July 1, 2005.
HUD's written request for Supplemental   August 1, 2005.
 Submissions.
HUD's approval of Supplemental           September 1, 2005.
 Submissions.
------------------------------------------------------------------------

    If grant award takes place after October 1, 2004, the grantee's 
program schedule may be changed in the Supplemental Submissions to 
account for the period of time between October 1, 2004, and the actual 
date of grant award; and
    (iv) Your management experience and previous experience with 
development activities, including the dollar amount and timeframe for 
completion of the project(s), is sufficient to show that you have 
experience in overseeing affordable housing development, whether it be 
in-house or implemented by a private entity.
    (2) You will receive 4 points if your application demonstrates that 
you have had experience in managing affordable housing development in 
accordance with the factors above, but your experience has not been 
extensive, and your project(s) were completed within the timeframe 
originally established for the project.
    (3) You will receive 1 point if your application demonstrates that 
you have had experience in managing affordable housing development in 
accordance with the factors above, but your experience has not been 
extensive, and your project(s) were not completed within the timeframe 
originally established for the project.
    (4) You will receive 0 points if your application does not 
demonstrate any experience in managing development activities, or if 
your application does not address this factor to an extent that makes 
HUD's rating of this factor possible.
    d. Capacity of Existing HOPE VI Revitalization Grantees. (1) This 
Section applies only to applicants that have received HOPE VI 
Revitalization grants for fiscal years 1993-2001. If an applicant has 
more than one HOPE VI Revitalization grant, each will be rated 
separately, not averaged, and the highest deduction will be made. 
Applicants with HOPE VI Revitalization grants only from FY2002 or 
FY2003, or no existing HOPE VI Revitalization grants are not subject to 
this section.
    (2) As indicated in the following tables, up to 5 points will be 
deducted if a grantee has failed to achieve adequate progress in 
relation to cumulative public housing rental unit production. 
Production achievement numbers will be taken from the quarterly 
reporting system for the quarter most recently completed at the time 
the NOFA is published in the Federal Register.

------------------------------------------------------------------------
                                                                 Points
     Percent of public housing unit production completed        deducted
------------------------------------------------------------------------
Grants Awarded in FY1993-1997:
  Less than 100..............................................          5
Grants Awarded in FY1998:
  90-100.....................................................          0
  80-89......................................................          1
  75-79......................................................          2
  70-74......................................................          3
  65-69......................................................          4
  Less than 65...............................................          5
Grants Awarded in FY1999:
  80-100.....................................................          0
  70-79......................................................          1
  60-69......................................................          2
  50-59......................................................          3
  40-49......................................................          4
  Less than 40...............................................          5
Grants Awarded in FY2000:
  60-100.....................................................          0
  50-59......................................................          1
  40-49......................................................          2
  30-39......................................................          3
  20-29......................................................          4
  Less than 20...............................................          5
Grants Awarded in FY2001:
  25-100.....................................................          0
  20-24......................................................          1
  15-19......................................................          2
  10-14......................................................          3
  5-9........................................................          4
  Less than 5................................................          5
------------------------------------------------------------------------

    e. CSS Program Capacity--3 points. See Sections I.D.10., and 
III.C.4.k and l, of this NOFA for detailed information on CSS 
activities.
    (1) You will receive 2 points if your application demonstrates one 
of the following. If you fail to demonstrate one of the following, you 
will receive 0 points:
    (a) If you propose to carry out your CSS plan in-house and you have 
recent, quantifiable, successful experience in planning, implementing, 
and managing the types of CSS activities proposed in your application, 
or
    (b) If you propose that a member(s) of your team will carry out 
your CSS plan, that this procured team member(s) has the qualifications 
and demonstrated experience to plan, implement, manage, and coordinate 
the types of activities proposed, and that you have a plan for promptly 
hiring staff or procuring a team member to do so.
    (2) You will receive 1 point if your application demonstrates that:
    (a) You have an existing HOPE VI grant and your current CSS team 
will be

[[Page 64157]]

adequate to implement a new program, including new or changing 
programs, without weakening your existing team.
    (b) You do not have an existing HOPE VI Revitalization grant and 
you demonstrate how your proposed CSS team will be adequate to 
implement a new program, including new or changing services, without 
weakening your existing staffing structure.
    f. Property Management Capacity--5 points. (1) Property management 
activities may be the responsibility of the PHA or another member of 
the team, which may include a separate entity that you have procured or 
will procure to carry out property management activities. In your 
application you will describe the number of units and the condition of 
the units currently managed by you or your property manager, your 
annual budget for those activities, and any awards or recognition that 
you or your property manager have received.
    (2) Past Property Management Experience--3 points. (a) You will 
receive 3 points if your application demonstrates that you or your 
property manager currently have extensive knowledge and recent (within 
the last five years), successful experience in property management of 
the housing types included in your revitalization plan. This may 
include market-rate rental housing, public housing, and other 
affordable housing, including rental units developed with low-income 
housing tax credit assistance. If your Revitalization plan includes 
cooperatively-owned housing, rent-to-own units, or other types of 
managed housing, in order to receive the points for this factor, you 
must demonstrate recent, successful experience in the management of 
such housing by the relevant member(s) of your team.
    (b) You will receive 1 point if your application demonstrates that 
you or your property manager have some but not extensive experience of 
the kind required for your Revitalization plan.
    (c) You will receive 0 points if your application does not 
demonstrate that you or your property manager have the experience to 
manage your proposed plan, or if your application does not address this 
factor to an extent that makes HUD's rating of this factor possible.
    (2) Property Management Plan--2 points. (a) You will receive 2 
points if your application demonstrates that you or your property 
manager have the goals and plans necessary to administer the following 
elements of a property management plan:

(i) Property maintenance
(ii) Rent collection
(iii) PIC 50058 reporting
(iv) Site-based management experience
(v) Tenant grievances
(vi) Evictions
(vii) Occupancy rate
(viii) Unit turnaround
(ix) Preventive maintenance
(x) Work order completion
(xi) Project-based budgeting
(xii) Management of Homeownership and rent-to-own programs
(xiii) Energy Audits
(xiv) Utility/Energy Incentives

    (b) You will receive 0 points if your application does not 
demonstrate that you or your property manager have the goals and plans 
necessary to administer the above elements of a property management 
plan.
    g. PHA Plan--1 point. (1) You will receive 1 point if your 
application demonstrates that you have incorporated the revitalization 
plan described in your application into your most recent PHA plan 
(whether approved by HUD or pending approval). In order to qualify as 
``incorporated'' under this factor, your PHA plan must indicate the 
intent to pursue a HOPE VI Revitalization grant and the public housing 
development for which it is targeted.
    (2) You will receive 0 points if you have not incorporated the 
revitalization plan described in your application into your PHA plan, 
or if your application does not address this factor to an extent that 
makes HUD's rating of this factor possible.
    h. Public Housing Assessment System (PHAS)--2 points. (1) If you 
have been rated as a High Performer for your most recent PHAS review, 
you will receive 2 points.
    (2) If you have been rated as a Standard Performer for your most 
recent PHAS review, you will receive 1 point.
    (3) If you have been rated as a Troubled Performer that is either 
Troubled in One Area or Overall Troubled, you will receive 0 points.
    i. Section 8 Management Assessment Program (SEMAP)--2 points. (1) 
If you have been rated as a High Performer for your most recent SEMAP 
rating, you will receive 2 points.
    (2) If you have been rated as Standard for your most recent SEMAP 
rating, you will receive 1 point.
    (3) If you have been rated as Troubled for your most recent SEMAP 
rating, you will receive 0 points.
    2. Rating Factor: Need--24 Points Total.
    a. Need for Revitalization: Severe Physical Distress of the Public 
Housing Development--10 Points. (1) HUD will evaluate the extent of the 
severe physical distress of the targeted public housing development. If 
the targeted units have already been demolished, HUD will evaluate your 
description of the extent of the severe physical distress of the site 
as of the day the demolition application was approved by HUD. You will 
receive points for the following separate subfactors, as indicated.
    (a) You will receive 2 points if your application demonstrates that 
there are major deficiencies in the project's infrastructure, roofs, 
electrical, plumbing, heating and cooling, mechanical systems, 
settlement, and other deficiencies in Housing Quality Standards.
    (b) You will receive 2 points if your application demonstrates that 
there are poor soil conditions, inadequate drainage, deteriorated 
laterals and sewers, and inappropriate topography.
    (c) You will receive 3 points if your application demonstrates that 
the project has at least three of the following major design 
deficiencies, including:
    (i) Inappropriately high population density, room, and unit size 
and configurations;
    (ii) Isolation;
    (iii) Indefensible space;
    (iv) Significant utility expenses caused by energy conservation 
deficiencies that may be documented by an energy audit; and
    (v) Inaccessibility for persons with disabilities with regard to 
individual units, entranceways, and common areas.
    (d) You will receive 3 points if your application demonstrates that 
there are (or were, if the site is already demolished) levels of 
unmitigated lead-based paint, PCBs, mold, and asbestos that make the 
site or a portion of the site and its housing structures unsuitable for 
residential use.
    b. Need for Revitalization: Impact of the Severely Distressed Site 
on the Surrounding Neighborhood--3 Points. (1) HUD will evaluate the 
extent to which the severely distressed public housing project is a 
significant contributing factor to the physical decline of, and 
disinvestment by, public and private entities in the surrounding 
neighborhood. In making this determination, HUD will evaluate your 
narrative, crime statistics, photographs or renderings, socio-economic 
data, trends in property values, evidence of property deterioration and 
abandonment, evidence of underutilization of surrounding properties, 
and indications of neighborhood disinvestment.
    (2) You will receive 3 Points if your application demonstrates that 
the project has a significant impact on the

[[Page 64158]]

surrounding neighborhood, as documented by each item listed above.
    (3) You will receive 2 Points if your application demonstrates that 
the project has a moderate impact on the neighborhood, and only some of 
the items listed above are adequately documented.
    (4) You will receive 0 Points if your application does not 
demonstrate that the project has an impact on the surrounding 
neighborhood, or if your application does not address this factor to an 
extent that makes HUD's rating of this factor possible.
    c. Need for HOPE VI Funding--8 Points. (1) HUD will evaluate the 
extent to which you could undertake the proposed revitalization 
activities without a HOPE VI grant. Large amounts of available Capital 
Funds indicate that the revitalization could be carried out without a 
HOPE VI grant. Available Capital Funds are defined as non-obligated 
funds that have not been earmarked for other purposes in your PHA Plan. 
To determine the amount of FY1999-2004 Capital Fund Program (including 
CIAP and CGP) funds currently available that could be used to carry out 
the proposed revitalization activities, HUD will employ data from LOCCS 
available at the time of the grant application due date and information 
from the portions of the PHA Plan that you have submitted as part of 
your application. Funds earmarked in the PHA Plan for uses other than 
the revitalization proposed in this application will not be considered 
available. See Section IV.B. of this NOFA for documentation 
requirements.
    (2) You will receive 8 Points if your available Capital Funds 
balance is up to 20 percent of the amount of HOPE VI funds requested.
    (3) You will receive 6 Points if your available balance is 21-45 
percent of the amount of HOPE VI funds requested.
    (4) You will receive 4 Points if your available balance is 46-70 
percent of the amount of HOPE VI funds requested.
    (5) You will receive 2 Points if your available balance is 71-90 
percent of the amount of HOPE VI funds requested.
    (6) You will receive 0 Points if your available balance is more 
than 90 percent of the amount of HOPE VI funds requested.
    c. Need for Affordable Accessible Housing in the Community--3 
Points. (1) Your application must demonstrate the need for other 
housing available and affordable to families receiving tenant-based 
assistance under section 8 (HCV), as described below and must be the 
most recent information available at the time of the application 
deadline.
    (2) For purposes of this factor, the need for affordable housing in 
the community will be measured by Housing Choice Voucher program 
utilization rates and public housing occupancy rates, excluding the 
public housing site targeted for revitalization. In figuring the 
Housing Choice Voucher utilization rate, provide the percentage of 
units under lease out of the total authorized. In figuring the public 
housing occupancy rate, provide the percentage of units occupied out of 
the total in your public housing inventory, not including the targeted 
public housing site. You should base your calculation on the federal 
public housing units you manage. You may not exclude units in your 
public housing inventory that are being reserved for relocation needs 
related to other HOPE VI Revitalization grant(s); or units in your 
public housing inventory that are being held vacant for uses related to 
a Section 504 voluntary compliance agreement. If you are a non-MTW 
site, you must use information consistent with the Section Eight 
Management Assessment Program (SEMAP) and/or the Public Housing 
Assessment System (PHAS) submissions. If you are an MTW site, and do 
not report into SEMAP and/or PHAS, you must demonstrate your 
utilization and/or occupancy rate using similar methods and information 
sources in order to earn points under this rating factor.
    (3) You will receive 3 Points if your application demonstrates 
that:
    (a) The utilization rate of your Housing Choice Voucher program is 
97 percent or higher; or
    (b) The occupancy rate of your public housing inventory is 97 
percent or higher.
    (4) You will receive 2 Points if your application demonstrates 
that:
    (a) The utilization rate of your Housing Choice Voucher program is 
between 95 and 96 percent; or,
    (b) The occupancy rate of your public housing inventory is between 
95 and 96 percent.
    (5) You will receive 1 Point if your application demonstrates that:
    (a) The utilization rate of your Housing Choice Voucher program is 
between 93 and 94 percent; or
    (b) The occupancy rate of your public housing inventory is between 
93 and 94 percent.
    (6) You will receive 0 Points if your application demonstrates 
that:
    (a) The utilization rate of your Housing Choice Voucher program is 
less than 93 percent; or
    (b) The occupancy rate of your public housing inventory is less 
than 93 percent.
    3. Rating Factor: Leveraging--16 Points Total.
    a. Leverage. Although related to match, leverage is strictly a 
rating factor. Leverage consists of firm commitments of funds and other 
resources. HUD will rate your application based on the amount of funds 
and other resources that will be leveraged by the HOPE VI grant as a 
percentage of the amount of HOPE VI funds requested. If leverage 
sources and amounts are not documented in accordance with Sections 
III.C.4.l. and IV.B.5. of this NOFA, they will not be counted toward 
your leverage amounts.
    b. Development Leveraging--7 Points. For each commitment document, 
HUD will evaluate the strength of commitment and add the amounts that 
are acceptably documented. HUD will then calculate the ratio of the 
amount of HUD funds requested to the amount of funds that HUD deems 
acceptably documented. HUD will round figures to two decimal points, 
using standard rounding rules.
    (1) You will receive 7 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS, 
administration or relocation) to the dollar value of documented, 
committed development resources from other sources is 1:3 or higher.
    (2) You will receive 6 Points if the ratio is between 1:2.50 and 
1:2.99.
    (3) You will receive 5 Points if the ratio is between 1:2.0 and 
1:2.49.
    (4) You will receive 4 Points if the ratio is between 1:1.50 and 
1:1.99.
    (5) You will receive 3 Points if the ratio is between 1:1.0 and 
1:1.49.
    (6) You will receive 2 Points if the ratio is between 1:0.50 and 
1:0.99.
    (7) You will receive 1 Point if the ratio is between 1:0.25 to 
1:0.49.
    (8) You will receive 0 Points if the ratio is less than 1:0.25, or 
if your application does not address this factor to an extent that 
makes HUD's rating of this factor possible.
    c. CSS Leveraging--5 Points. (1) You will receive 5 Points if the 
ratio of the amount of HOPE VI funds requested for CSS activities to 
the dollar value of documented, committed CSS resources leveraged from 
other sources is 1:2 or higher. If no HOPE VI funds are requested for 
CSS activities because all CSS funds will come from outside sources, 
all adequately-documented funds from such outside sources will be 
counted and you will receive 5 Points.
    (2) You will receive 4 Points if the ratio is between 1:1.75 and 
1:1.99.
    (3) You will receive 3 Points if the ratio is between 1:1.5 and 
1:745.

[[Page 64159]]

    (4) You will receive 2 Points if the ratio is between 1:25 and 
1:49.
    (5) You will receive 1 Point if the ratio is between 1:1 and 
1:1.249.
    (6) You will receive 0 Points if the ratio is less than 1:1, or if 
your application does not address this factor to an extent that makes 
HUD's rating of this factor possible.
    d. Anticipatory Resources Leveraging--2 Points.
    Anticipatory Resources relate to activities that have taken place 
in the past and that were conducted in direct relation to a HOPE VI 
Revitalization grant. In many cases, PHAs, cities, or other entities 
may have carried out revitalization activities (including demolition) 
in previous years in anticipation of your receipt of a HOPE VI 
Revitalization grant. These expenditures, if documented, may be counted 
as leveraged anticipatory resources. They cannot duplicate any other 
type of resource and cannot be counted towards match. Public Housing 
funds other than HOPE VI Revitalization, e.g., HOPE VI Demolition grant 
funds, HOPE VI Neighborhood Networks grant funds, Capital Fund Program, 
may be included, and will be counted, toward your Anticipatory 
Resources rating below.
    (1) You will receive 2 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities, not including CSS 
or administration) to the amount of your documented anticipatory 
resources is 1:0.1 or higher. Your requested amount for CSS is shown in 
Budget Line Item 1408 of form HUD-52825-A, HOPE VI Budget and your 
requested amount for administration is shown in Budget Line Item 1410 
of form HUD-52825-A.
    (2) You will receive 0 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities, not including CSS 
or administration to the amount of your documented anticipatory 
resources is less than 1:0.1.
    e. Collateral Investment Leveraging--2 Points. Collateral 
investment includes physical redevelopment activities that are 
currently underway, or that have yet to begin but are projected to be 
completed before October 2009. In order for a leverage source to be 
counted as collateral investment, your application must demonstrate 
that the related activities will directly enhance the new HOPE VI 
community, but will occur whether or not a Revitalization grant is 
awarded to you and the public housing project is revitalized. This 
includes economic or other kinds of development activities that would 
have occurred with or without the anticipation of HOPE VI funds. These 
resources cannot duplicate any other type of resource and cannot be 
counted as match. Examples of collateral investments include local 
schools, libraries, subways, light rail stations, improved roads, day 
care facilities, and medical facilities.
    (1) You will receive 2 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS 
or administration) to the amount of your documented collateral 
resources is 1:1.0 or higher.
    (2) You will receive 0 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS 
or administration) to the amount of your documented collateral 
resources is less than 1:1.0.
    4. Rating Factor: Resident and Community Involvement--3 Points 
Total.
    a. HUD will evaluate the nature, extent, and quality of the 
resident and community outreach and involvement you have achieved by 
the time your application is submitted, as well as your plans for 
continued and additional outreach and involvement beyond the minimum 
threshold requirements. See Section III.C. of this NOFA for Resident 
and Community Involvement requirements.
    b. Resident and Community Involvement--3 Points. You will receive 1 
Point for each of the following criteria met in your application, which 
are over and above the threshold requirements listed in Section 
III.C.4. of this NOFA.
    (1) Your application demonstrates that you have communicated 
regularly and significantly with affected residents, state and local 
governments, private service providers, financing entities, developers, 
and other members of the surrounding community about the development of 
your Revitalization plan by giving residents and community members 
information about your actions regarding the Revitalization plan and 
providing a forum where residents and community members can contribute 
recommendations and opinions with regard to the development and 
implementation of the Revitalization plan.
    (2) Your application demonstrates your efforts, past and proposed, 
to make appropriate HUD communications about HOPE VI available (i.e., a 
copy of the NOFA, computer access to the HUD Web site, etc.).
    (3) Your application demonstrates your plans to provide affected 
residents with reasonable training on the general principles of 
development, technical assistance, and capacity building so that they 
may participate meaningfully in the development and implementation 
process.
    5. Rating Factor: Community and Supportive Services--10 Points 
Total.
    a. CSS Program Requirements. See Section III.C.4. for CSS program 
requirements. In your application, you will describe your CSS plan, 
including any plans to implement a CSS Endowment Trust. Each of the 
following subfactors will be rated separately.
    b. Case Management--2 points. You will receive 2 Points if your 
application demonstrates that you will be able to provide case 
management within 30 days from the date of grant award execution so 
that residents who will be relocated have time to participate and 
benefit from CSS activities before leaving the site.
    c. Needs Identification--1 point. You will receive 1 Point if your 
CSS Program has been developed in response to a rigorous resident needs 
identification process and directly responds to the identified needs.
    d. Transition to Housing Self-Sufficiency--4 points. You will 
receive up to 4 Points if you address the methods you will use to 
assist public housing residents in their efforts to transition to other 
affordable and market-rate housing, i.e., to gain ``housing self-
sufficiency.''
    (1) You will receive up to 4 Points if your application 
demonstrates that your CSS Program includes and addresses all four of 
the below items. Your CSS Program:
    (a) Provides measurable outcomes for this endeavor;
    (b) Relates your other CSS and FSS activities and efforts to the 
transition of public housing residents to housing self-sufficiency;
    (c) Specifically addresses the community partners, faith-based 
organizations, etc. that will join you in the endeavor; and
    (d) Establishes reasonable limits on the length of time any 
resident can reside in a public housing unit within a HOPE VI 
Revitalization Development.
    (2) You will receive up to 2 Points if your CSS Program includes 
and addresses two of four of the above items (a) through (d).
    (3) You will receive 0 Points if your CSS Program includes and 
addresses less than two of the above items (a) through (d).
    e. Partner Commitments--1 point. You will receive 1 Point if you 
provide letters from a variety of experienced organizations and service 
providers that represent strong relationships and commitments to 
participate in your CSS

[[Page 64160]]

activities and accomplish your CSS goals of the program.
    f. Quality and Results Orientation--2 points. You will receive 2 
Points if you have proposed a high quality, results-oriented CSS 
program that is based on a comprehensive case management system and 
enables residents affected by the revitalization plan to access, at a 
minimum, basic elements of education, job training, and other services 
that will assist them in transforming their lives and becoming self-
sufficient.
    6. Rating Factor: Relocation--5 Points Total. See Sections III.C.4. 
and IV.B. of this NOFA for Relocation and Relocation Plan requirements.
    a. You will receive 5 Points for this Factor if: (1) Your 
Relocation plan:
    (a) Includes a description of specific activities that have (or 
will) minimize permanent displacement of residents of the units that 
will be rehabilitated or demolished in the targeted public housing 
site, provided that those residents wish to remain in or return to the 
revitalized community;
    (b) Includes a description of specific activities that will give 
existing residents priority over other families for future occupancy of 
public housing units in completed HOPE VI Revitalization Development 
projects, or, for existing residents that can afford to live in non-
public housing HOPE VI units, priority for future occupancy of those 
planned units; and
    (c) contains a description of specific CSS activities that will be 
provided to residents prior to any relocation.
    (2) You provide a certification that all of the residents of the 
targeted severely distressed public housing project have been relocated 
and tracked as of the HOPE VI Revitalization application due date;
    b. You will receive 4 Points for this Factor if: (1) Your 
Relocation Plan:
    (a) minimizes permanent displacement of current residents of the 
public housing site who wish to remain in or return to the revitalized 
community and you provide general information on the method you will 
use to promote this;
    (b) contains general information about the amount of CSS that will 
be provided to residents prior to any relocation; and
    (c) gives existing residents priority for occupancy of planned 
public housing units, or for residents that can afford to live in other 
HOPE VI units, priority for those planned units and includes general 
information on the method you will use to provide this; and
    (2) You: (a) Provide a certification that all of the residents of 
the targeted severely distressed public housing project have been 
relocated but you were unable to track all residents, as of the HOPE VI 
Revitalization application due date. You must describe the efforts 
undertaken to track residents and reasons why all residents were not 
tracked; or
    (b) Describe in your application: (i) An effective plan to track 
residents who have been or will be relocated from the targeted project; 
and
    (ii) A comprehensive plan that will provide mobility counseling and 
direct assistance in locating housing to residents who choose Housing 
Choice Voucher assistance that will help them to fully understand the 
full range of housing opportunities available to them in neighborhoods 
throughout the jurisdiction and to find housing in non-poverty areas. 
You must provide a list of available units to persons with disabilities 
as required under 24 CFR 8.28(a)(3);
    c. You will receive 2 Points if: (1) You meet only one of the 
factors described in Section b. above and only state that your plan 
will minimize permanent relocation and give housing priority to current 
residents.
    d. You will receive 0 Points if: (a) Your application:
    (i) Does not meet either of the factors described in Section 
(2)(a)(ii) above;
    (ii) Does not include minimization of permanent displacement; or
    (iii) Does not give priority for occupancy in completed HOPE VI 
Revitalization developments to current residents; or
    (b) Your application does not address this factor to an extent that 
makes HUD's rating of this factor possible.
    7. Rating Factor: Fair Housing and Equal Opportunity--7 Points 
Total.
    a. FHEO Disability Issues--4 Points Total. (1) Accessibility--2 
Points.
    (a) Over and above the accessibility requirements listed in Section 
III.C. of this NOFA, you will receive 2 Points if your application 
demonstrates that you have a detailed plan to:
    (i) Provide accessibility in homeownership units (e.g., setting a 
goal of constructing a percentage of the homeownership units as 
accessible units for persons with mobility impairments; promising to 
work with prospective disabled buyers on modifications to be carried 
out at a buyer's request; exploring design alternatives that result in 
townhouses that are accessible to persons with disabilities);
    (ii) Provide one-bedroom accessible rental units for single 
individuals with disabilities;
    (iii) Provide for accessibility modifications, where necessary, to 
Housing Choice Voucher-assisted units of residents who relocate from 
the targeted project to private or other public housing due to 
revitalization activities. The Department has determined that the costs 
of such modifications are eligible costs under the HOPE VI program;
    (iv) Where playgrounds are planned, propose ways to make them 
accessible to children with disabilities, over and above statutory and 
regulatory requirements; and
    (v) Where possible, design units with accessible front entrances.
    (b) You will receive 1 Point if your application demonstrates that 
you have a detailed plan to implement from one to four of the 
accessibility priorities stated above, explaining why and how you will 
implement the identified accessibility priorities.
    (c) You will receive 0 Points if your application does not 
demonstrate that you have a detailed plan that meets the specifications 
above, or if your application does not address this factor to an extent 
that makes HUD's rating of this factor possible.
    (2) Universal Design--2 Points. (a) You will receive 2 Points if 
your application demonstrates that you have a specific plan to meet:
    (i) The adaptability standards adopted by HUD at 24 CFR 8.3 that 
apply to those units not otherwise covered by the accessibility 
requirements. Adaptability is the ability of certain elements of a 
dwelling unit, such as kitchen counters, sinks, and grab bars, to be 
added to, raised, lowered, or otherwise altered, to accommodate the 
needs of persons with or without disabilities, or to accommodate the 
needs of persons with different types or degrees of disability. For 
example, the wiring for visible emergency alarms may be installed so 
that a unit can be made ready for occupancy by a hearing-impaired 
person (For information on adaptability, see http://www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf); and
    (ii) The visitability standards recommended by HUD that apply to 
units not otherwise covered by the accessibility requirements. 
Visitability standards allow a person with mobility impairments access 
into the home, but do not require that all features be made accessible. 
A visitable home also serves persons without disabilities, such as a 
mother pushing a stroller or a person delivering a large appliance. See 
http://www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf for 
information on visitability. The two standards of visitability are:
    (A) At least one entrance at grade (no steps), approached by a 
sidewalk; and

[[Page 64161]]

    (B) The entrance door and all interior passage doors are at least 2 
feet 10 inches wide, allowing 32 inches of clear passage space.
    (b) You will receive 0 Points if your application does not 
demonstrate that you have specific plans to implement both (i) and (ii) 
as specified above, or if your application does not address this factor 
to an extent that makes HUD's rating of this factor possible.
    b. Fair Housing and Section 3--3 Points Total. (1) Fair Housing--2 
Points.
    (a) You will receive 2 Points if your application demonstrates 
that:
    (i) You have made and will make specific efforts to attract 
families from all segments of the population on a non-discriminatory 
basis and with a broad spectrum of incomes to the revitalized site 
through intensive affirmative marketing efforts and how these efforts 
contribute to the deconcentration of low-income neighborhoods;
    (ii) You have made and will make specific efforts to target your 
marketing and outreach activities to those persons and groups least 
likely to know about these housing opportunities, in order to promote 
housing choice and opportunity throughout your jurisdiction and 
contribute to the deconcentration of both minority and low-income 
neighborhoods. In your application, you must describe how your outreach 
and marketing efforts will reach out to persons of different races and 
ethnic groups, families with or without children, persons with 
disabilities and able-bodied persons, and the elderly; and
    (iii) The specific steps you plan to take through your proposed 
activities to affirmatively further fair housing. These steps can 
include, but are not limited to:
    (A) Addressing impediments to fair housing choice relating to your 
operations;
    (B) Working with local jurisdictions to implement their initiatives 
to affirmatively further fair housing;
    (C) Implementing, in accordance with Departmental guidance, 
relocation plans that result in increased housing choice and 
opportunity for residents affected by HOPE VI revitalization activities 
funded under this NOFA;
    (D) Implementing admissions and occupancy policies that are 
nondiscriminatory and help reduce racial and national origin 
concentrations; and
    (E) Initiating other steps to remedy discrimination in housing and 
promote fair housing rights and fair housing choice.
    (b) You will receive 1 Point if you address all of the above issues 
only in a general way.
    (c) You will receive 0 Points if you do not address all of the 
above issues, or if your application does not address this factor to an 
extent that makes HUD's rating of this factor possible.
    (2) Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3)--1 Point.
    (a) HOPE VI grantees must comply with Section 3 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701u) (Economic Opportunities 
for Low- and Very Low-Income Persons in Connection with assisted 
Projects) and its implementing regulations at 24 CFR part 135. 
Information about Section 3 can be found at HUD's Section 3 Web site at 
http://www.hud.gov/fhe/sec3over.html.
    (b) You will receive 1 Point if your application demonstrates that 
you have a feasible plan to implement Section 3 that not only meets the 
minimum requirements described in Section (a) above but also exceeds 
those requirements. Your plan must include your goals by age group, 
types of jobs and other opportunities to be provided, and plans for 
tracking and evaluation. Section 3 firms must be in place quickly so 
that residents are trained in time to take advantage of employment 
opportunities such as jobs and other contractual opportunities in the 
pre-development, demolition, and construction phases of the 
revitalization. Your Section 3 plan must demonstrate that you will, to 
the greatest extent feasible, direct training, employment, and other 
economic opportunities to:
    (i) Low- and very low-income persons, particularly those who are 
recipients of government assistance for housing, and
    (ii) Business concerns which provide economic opportunities to low- 
and very low-income persons.
    (b) You will receive 0 Points if your plan to implement Section 3 
does not meet the standards listed in Section (b) above, or if your 
application does not address this factor to an extent that makes HUD's 
rating of this factor possible.
    8. Rating Factor: Well-Functioning Communities--8 Points Total.
    a. Affordable Housing. (1) Housing Definitions. For the purposes of 
this rating section, housing units are defined differently than in PIH 
housing programs, as follows:
    (a) ``project-based affordable housing units'' are defined as 
housing units where there are affordable-housing use restrictions, 
e.g., public housing, project-based Section 8 (HCV), LIHTC units, HOME 
units, etc.
    (b) ``public housing rental units'' are defined as rental units 
that will be subject to the ACC.
    (c) Homeownership units and lease-purchase units are not considered 
as public housing.
    (d) Units sold under Section 32 are not considered as public 
housing.
    (2) Unit Mix and Need for Affordable Housing--3 Points. (a) Your 
proposed unit mix should sustain or create more project-based 
affordable housing units that will be available to persons eligible for 
public housing in markets where the plan shows there is demand for the 
maintenance or creation of such units. While it is up to you to 
determine the unit mix that is appropriate for your site, it is 
essential that this unit mix include a sufficient amount of public 
housing rental units and other project-based affordable units. To the 
extent that the local market shows there is a demand for it, applicants 
are encouraged to create additional project-based affordable housing 
units to be made available for persons eligible for public housing.
    (b) No Need for Additional Affordable Housing.
    (i) You will receive 1 Point for this factor if your application 
demonstrates that:
    (A) The utilization rate of your Housing Choice Voucher program is 
less than 95 percent; or
    (B) The occupancy rate of your public housing inventory is less 
than 95 percent.
    (c) Need for Additional Affordable Housing.
    (i) For this factor, HUD considers you in need of project-based 
affordable housing if:
    (A) The utilization rate of your Housing Choice Voucher program is 
95 percent or more; or
    (B) The occupancy rate of your public housing inventory is 95 
percent or more.
    (ii) The percentages below are defined as the number of planned 
project-based affordable units divided by the number of public housing 
units that the targeted project contained on the application due date;
    (iii) You will receive 3 Points if your application demonstrates 
that the number of project-based affordable units in your plan is 125 
percent of the number of public housing units that the targeted project 
contained on the application due date;
    (iv) You will receive 2 Points if your application demonstrates 
that the number of project-based affordable units in your plan is 110 
percent of the number of public housing units that the targeted project 
contained on the application due date

[[Page 64162]]

    (v) You will receive 1 Point if your application demonstrates that 
the number of project-based affordable units in your plan is 100 
percent of the number of public housing units that the targeted project 
contained on the application due date.
    (vi) You will receive 0 Points if your application demonstrates 
that the number of project-based affordable units in your plan is less 
than the number of public housing units that the targeted project 
contained on the application due date or if your application does not 
address this factor to an extent that makes HUD's rating of this factor 
possible.
    b. Off-Site Housing. (1) Factor Background.
    (a) Although not required, you are encouraged to consider 
development of replacement housing in locations other than the original 
severely distressed site (i.e., off-site housing). Locating off-site 
housing in neighborhoods with low levels of poverty and low 
concentrations of minorities will provide maximized housing 
alternatives for low-income residents who are currently on-site and 
assist the goal of creating desegregated, mixed-income communities. The 
effect on-site will be to assist in the deconcentration of low-income 
residents and increase the number of replacement units.
    (b) Although it is acknowledged that off-site housing is not 
appropriate in some communities, if you do not propose to include off-
site housing in your Revitalization plan, you are not eligible to 
receive this point.
    (c) If you propose an off-site housing component in your 
application, you must be sure to include that component when you 
discuss other components (e.g. on-site housing, homeownership housing, 
etc.). Throughout your application, your unit counts and other 
numerical data must take into account the off-site component.
    (2) Off-Site Housing--1 Point. You will receive 1 Point if you 
propose to develop an off-site housing component(s) and document that: 
you have site control of the property(ies), that the site(s) meets all 
environmental review requirements, and that the site(s) meets site and 
neighborhood standards, in accordance with Section III.C.4.m(1) of this 
NOFA.
    c. Homeownership Housing--4 Points. The Department has placed the 
highest priority on increasing homeownership opportunities for low- and 
moderate-income persons, persons with disabilities, the elderly, 
minorities, and families where English may be a second language. Too 
often these individuals and families are shut out of the housing market 
through no fault of their own. HUD encourages applicants to work 
aggressively to open up the realm of homeownership.
    (1) Your application will receive 4 Points if your application 
demonstrates that your Revitalization plan includes homeownership and 
that you have a feasible, well-defined plan for homeownership. In order 
to demonstrate this, your application should include descriptions of 
the following:
    (a) The purpose of your homeownership program;
    (b) The number of units planned and their location(s);
    (c) A description and justification of the families that will be 
targeted for the program;
    (d) The proposed source of your construction and permanent 
financing of the units; and
    (e) A description of the homeownership counseling you or a HUD-
approved housing counseling agency will provide to prospective 
families, including such subjects as the homeownership process, housing 
in non-impacted areas, credit repair, budgeting, and home maintenance.
    (2) You will receive 2 Points for this factor if you address in 
your description from one to four of the items listed under (1).
    (3) You will receive 0 Points for this factor if you do not propose 
to include homeownership units in your Revitalization plan, your 
proposed program is not feasible and well defined, or if your 
application does not address this factor to an extent that makes HUD's 
rating of this factor possible.
    9. Rating Factor: Soundness of Approach--25 Points Total.
    a. Quality and Consistency of the Application--2 Points. (1) The 
information and strategies described in your application must be well 
organized, coherent, and internally consistent. Numbers and statistics 
in your narratives must be consistent with the information provided in 
the attachments. Also, the physical and CSS aspects of the application 
must be compatible and coordinated with each other. Pay particular 
attention to the data provided for:
    (a) Types and numbers of units;
    (b) Budgets;
    (c) Other financial estimates, including sources and uses; and
    (d) Numbers of residents affected.
    (2) You will receive 2 points if your application demonstrates a 
high level of quality and consistency;
    (3) You will receive 1 point if your application has a high level 
of quality, but contains minor internal discrepancies;
    (4) You will receive 0 points if your application fails to 
demonstrate an acceptable level of quality and consistency;
    b. Appropriateness and Feasibility of the Plan--5 Points. (1) You 
will receive 5 points if your application demonstrates that your 
Revitalization plan is:
    (a) Appropriate and suitable, in the context of the community and 
other revitalization options, in accordance with the Appropriateness of 
Proposal threshold in Section III.C. of this NOFA;
    (b) Marketable, in the context of local conditions;
    (c) Financially feasible, as demonstrated in the financial 
structure(s) proposed in the application.
    (2) You will receive 3 points if your application only moderately 
demonstrates the criteria of (1)(a)-(c) above.
    (3) You will receive 0 Points if your application does not 
demonstrate the criteria of (1)(a)-(c) above.
    c. Neighborhood Impact and Sustainability of the Plan--5 Points. 
(1) You will receive 5 Points if your application demonstrates your 
Revitalization plan, including plans for retail, office, other economic 
development activities, as appropriate, will:
    (a) Result in a revitalized site that will enhance the neighborhood 
in which the project is located;
    (b) Spur outside investment into the surrounding community;
    (c) Enhance economic opportunities for residents; and
    (d) Remove an impediment to continued redevelopment or start a 
community-wide revitalization process.
    (2) You will receive 3 Points if your application demonstrates that 
your Revitalization plan will have only a moderate effect on activities 
in the surrounding community, as described in (a)(i)-(iv) above.
    (3) You will receive 0 Points if your application does not 
demonstrate that your Revitalization plan will have an effect on the 
surrounding community, as described in (a)(i)-(iv) above, or if your 
application does not address this factor to an extent that makes HUD's 
rating of this factor possible.
    d. Project Readiness--7 Points. HUD places top priority on projects 
that will be able to commence immediately after grant award. You will 
receive the following points for each applicable subfactor certified in 
your application.
    (1) You will receive 2 Points if the targeted severely distressed 
public housing site is completely vacant, i.e., all residents have been 
relocated.

[[Page 64163]]

    (2) You will receive 2 Points if the targeted severely distressed 
public housing site is cleared, i.e., all buildings are demolished, or 
your Revitalization plan only includes rehabilitation and no demolition 
of public housing units..
    (3) You will receive 1 Point if a Master Development Agreement 
(MDA) has been developed and is ready to submit to HUD. However, in 
cases where the PHA (not an affiliate/subsidiary/instrumentality) will 
act as its own developer for all components of the Revitalization plan, 
then an MDA is not needed and the one point will be awarded 
automatically.
    (4) You will receive 1 Point if your preliminary site design is 
complete.
    (5) You will receive 1 Point if you have held five (5) or more 
public planning sessions leading to resident acceptance of the plan.
    e. Design--3 Points. HUD is seeking excellence in design. We urge 
you to carefully select your architects and planners, and to enlist 
local affiliates of national architectural and planning organizations 
such as the American Institute of Architects, the American Society of 
Landscape Architects, the American Planning Association, the Congress 
for the New Urbanism, and the department of architecture at a local 
college or university to assist you in assessing qualifications of 
design professionals or participating on a selection panel that results 
in the procurement of excellent design services.
    HUD encourages you to select a design team that is committed to a 
process in which residents, including young people and seniors, the 
broader community, and other stakeholders participate in designing the 
new community.
    Your proposed site plan, new units, and other buildings must be 
designed to be compatible with and enrich the surrounding neighborhood. 
Local architecture and design elements and amenities should be 
incorporated into the new or rehabilitated homes so that the 
revitalized sites and structures will blend into the broader community 
and appeal to the market segments for which they are intended. Housing, 
community facilities, and economic development space must be well 
integrated. You must select members of your team who have the ability 
to meet these requirements.
    (1) You will receive 3 Points if your proposed site plan, new 
dwelling units, and buildings demonstrate that:
    (a) You have proposed a site plan that is compact, pedestrian-
friendly, with an interconnected network of streets and public open 
space;
    (b) Your proposed housing, community facilities, and economic 
development facilities are thoroughly integrated into the community 
through the use of local architectural tradition, building scale, 
grouping of buildings, and design elements; and
    (c) Your plan proposes appropriate enhancements of the natural 
environment.
    (2) You will receive 1 Point if your proposed site plan, new 
dwelling units, and buildings demonstrate design that adequately 
addresses one or two, but not all three of the elements above.
    (3) You will receive 0 Points if your proposed design is 
perfunctory or otherwise does not address the above elements. You will 
also receive 0 Points if your application does not address this factor 
to an extent that makes HUD's rating of this factor possible.
    f. Evaluation--3 Points. You are encouraged to work with your local 
university(ies), other institutions of learning, foundations, or others 
to evaluate the performance and impact of their HOPE VI Revitalization 
plan over the life of the grant. The proposed methodology must measure 
success against goals you set at the outset of your revitalization 
activities. Evaluators must establish baselines and provide ongoing 
interim reports that will allow you to make changes as necessary as 
your project proceeds. Where possible, you are encouraged to form 
partnerships with Historically Black Colleges and Universities (HBCUs); 
Hispanic-Serving Institutions (HSIs); Community Outreach Partnership 
Centers (COPCs); the Alaskan Native/Native Hawaiian Institution 
Assisting Communities Program (as appropriate); and others in HUD's 
University Partnerships Program.
    (1) You will receive 3 Points if your application includes a 
letter(s) from an institution(s) of higher learning, foundations, or 
other organization that specializes in research and evaluation that 
provides a commitment to work with you to evaluate your program and 
describes its proposed approach to carry out the evaluation if your 
application is selected for funding. The letter must provide the extent 
of the commitment and involvement, the extent to which you and the 
local institution of higher learning will cooperate, and the proposed 
approach. The commitment letter must address all of the following areas 
for evaluation:
    (a) The impact of your HOPE VI effort on the lives of the 
residents;
    (b) The nature and extent of economic development generated in the 
community;
    (c) The effect of the revitalization effort on the surrounding 
community, including spillover revitalization activities, property 
values, etc.; and
    (d) Your success at integrating the physical and CSS aspects of 
your strategy.
    (2) You will receive 0 Points if your application does not include 
a commitment letter that conforms to the specifications in paragraph 
(b) above.
    10. Rating Factor: Incentive Criteria on Regulatory Barrier 
Removal--2 Points Total.
    a. Description. (1) HUD's Notice, America's Affordable Communities 
Initiative, HUD's Initiative on Removal of Regulatory Barriers: 
Announcement of Incentive Criteria on Barrier Removal in HUD's FY 2004 
Competitive Funding Allocations, Federal Register Docket Number FR-
4882-N-03, published on March 22, 2004, provides that most HUD 
competitive NOFAs will include an incentive for local and state 
governments to decrease their regulatory barriers to the development of 
affordable housing.
    (2) Form HUD-27300 contains questions that describe your local and 
state governments' efforts to decrease regulatory barriers.
    b. Scoring. (1) If you are considered a local unit of government 
with land use and building regulatory authority, an agency or 
department of a local unit of government, a nonprofit organization, or 
other qualified applicant applying for funding for a project located in 
the local unit of government's jurisdiction, you are invited to answer 
the 20 questions in PART A of form HUD-27300. For those applications in 
which regulatory authority is split between jurisdictions (e.g., county 
and town) the applicant should answer the question for that 
jurisdiction that has regulatory authority over the issue at question.
    (a) If you check Column 2 for five to ten questions from PART A, 
you will receive 1 point in the NOFA evaluation.
    (b) If you check Column 2 for eleven or more questions from PART A, 
you will receive 2 points in the NOFA evaluation.
    (2) If you are considered a state government, or an agency or 
department of a state government, applying for funding for a project 
located in the state government's jurisdiction, or areas otherwise not 
covered in Part A, you are invited to answer the 15 questions in PART 
B.
    (a) If you check Column 2 for four to seven questions from PART B, 
you will receive one point in the NOFA evaluation.
    (b) If you check Column 2 for eight or more questions from PART B, 
you will receive two points in the NOFA evaluation.

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    (3) Applicants that will be providing services in multiple 
jurisdictions may choose to address the questions in either PART A or 
PART B for that jurisdiction in which the preponderance of services 
will be performed if an award is made.
    (4) In no case will an applicant receive for this policy priority 
greater than two points for barrier removal activities.
    B. Reviews and Selection Process. HUD's selection process is 
designed to ensure that grants are awarded to eligible PHAs with the 
most meritorious applications. HUD will consider the information you 
submit by the application due date. After the application due date, HUD 
may not, consistent with its regulations in 24 CFR part 4, subpart B, 
consider any unsolicited information that you or any third party may 
want to provide.
    1. Application Screening. a. HUD will screen each application to 
determine if:
    (1) it meets the threshold criteria listed in Section III.C. of 
this NOFA; and
    (2) it is deficient, i.e., contains any Technical Deficiencies.
    b. See Section III.C. of this NOFA for case-by-case information 
regarding thresholds and technical deficiencies. See Section IV.B. of 
this NOFA for documentation requirements that will support threshold 
compliance and will avoid technical deficiencies.
    c. Corrections to Deficient Applications. The subsection entitled, 
``Corrections to Deficient Applications,'' in Section V.B.4. of the 
SuperNOFA applies. This sub-section describes the Technical 
Deficiencies cure period.
    d. Applications that will not be rated or ranked. HUD will not rate 
or rank applications that are deficient at the end of the cure period 
stated in Section V.B. of the SuperNOFA or have not met the thresholds 
described in Section III.C. of this NOFA. Such applications will not be 
eligible for funding.
    2. Preliminary Rating and Ranking.
    a. Rating. (1) HUD staff will preliminarily rate each eligible 
application, SOLELY on the basis of the rating factors described in 
Section V.A of this NOFA.
    (2) When rating applications, HUD reviewers will not use any 
information included in any HOPE VI application submitted in a prior 
year.
    (3) HUD will assign a preliminary score for each rating factor and 
a preliminary total score for each eligible application.
    (4) The maximum number of points for each application is 125.
    b. Ranking. (1) After preliminary review, applications will be 
ranked in score order.
    3. Final Panel Review. a. A Final Review Panel made up of HUD staff 
will:
    (1) Review the Preliminary Rating and Ranking documentation to:
    (a) Ensure that any inconsistencies between preliminary reviewers 
have been identified and rectified; and
    (b) Ensure that the Preliminary Rating and Ranking documentation 
accurately reflects the contents of the application.
    (2) Assign a final score to each application; and
    (3) Recommend for selection the most highly rated applications, 
subject to the amount of available funding, in accordance with the 
allocation of funds described in Section II of this NOFA.
    4. HUD reserves the right to make reductions in funding for any 
ineligible items included in an applicant's proposed budget.
    5. In accordance with the FY2003 HOPE VI appropriation, HUD may not 
use HOPE VI funds to grant competitive advantage in awards to settle 
litigation or pay judgments.
    6. Tie Scores. If two or more applications have the same score and 
there are insufficient funds to select all of them, HUD will select for 
funding the application(s) with the highest score for the Soundness of 
Approach Rating Factor. If a tie remains, HUD will select for funding 
the application(s) with the highest score for the Capacity Rating 
Factor. HUD will select further tied applications with the highest 
score for the Need Rating Factor.
    7. Remaining Funds. a. HUD reserves the right to reallocate 
remaining funds from this NOFA to other eligible activities under 
Section 24 of the Act.
    (1) If the total amount of funds requested by all applications 
found eligible for funding under Section V.B. of this NOFA is less than 
the amount of funds available from this NOFA, all eligible applications 
will be funded and those funds in excess of the total requested amount 
will be considered remaining funds.
    (2) If the total amount of funds requested by all applications 
found eligible for funding under Section V.B. of this NOFA is greater 
than the amount of funds available from this NOFA, eligible 
applications will be funded until the amount of non-awarded funds is 
less than the amount required to feasibly fund the next eligible 
application. In this case, the funds that have not been awarded will be 
considered remaining funds.
    8. The following sub-sections of Section V. of the SuperNOFA are 
hereby incorporated by reference:
    a. HUD's Strategic Goals;
    b. Policy Priorities;
    c. Threshold Compliance;
    d. Corrections to Deficient Applications;
    e. Rating; and
    f. Ranking.

VI. Award Administration Information

    A. Award Notices.
    1. Initial Announcement. The HUD Reform Act prohibits HUD from 
notifying you as to whether or not you have been selected to receive a 
grant until it has announced all grant recipients. If your application 
has been found to be ineligible or if it did not receive enough Points 
to be funded, you will not be notified until the successful applicants 
have been notified. HUD will provide written notification to all 
applicants, whether or not they have been selected for funding.
    2. Authorizing Document. The notice of award signed by the 
Assistant Secretary for Public and Indian Housing (grants officer) is 
the authorizing document. This notice will be delivered by fax and the 
U.S. Postal Service.
    3. Revitalization Grant Agreement. When you are selected to receive 
a Revitalization grant, HUD will send you a HOPE VI Revitalization 
Grant Agreement, which constitutes the contract between you and HUD to 
carry out and fund public housing revitalization activities. Both you 
and HUD will sign the cover sheet of the grant agreement. It is 
effective on the date of HUD's signature. The grant agreement differs 
from year to year. Past Revitalization Grant Agreements can be found on 
the HOPE VI Web site at http://www.hud.gov/hopevi.
    4. Applicant Debriefing. Upon request, HUD will provide an 
applicant a copy of the total score received by their application and 
the score received for each rating factor.
    5. SuperNOFA References. The following sub-section of Section VI.A. 
of the SuperNOFA is hereby incorporated by reference: a. Adjustments to 
Funding.
    B. Administrative and National Policy Requirements.
    1. Grant term. The time period for completion shall not exceed 54 
months from the date the NOFA award is executed.
    2. Timeliness of Development Activity. Grantees must proceed within 
a reasonable timeframe, as indicated below. In determining 
reasonableness of such timeframe, HUD will take into consideration 
those delays caused by factors beyond your control. These timeframes 
must be reflected in the form of a program schedule, in accordance with 
the threshold requirement at Section V.A.

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    a. Grantees must submit Supplemental Submissions within 90 days 
from the date of HUD's written request.
    b. Grantees must submit CSS work plans within 90 days from the 
execution of the grant agreement.
    c. All other required components of the Revitalization plan and any 
other submissions not mentioned above must be submitted in accordance 
with the Quarterly Report Administrative and Compliance Checkpoints 
Report, as approved by HUD.
    d. Grantees must start construction within 12 months from the date 
of HUD's approval of the Supplemental Submissions as requested by HUD 
after grant award. This time period may not exceed 18 months from the 
date the grant agreement is executed.
    e. Grantees must submit the development proposal (i.e., whether 
mixed-finance development, homeownership development, etc.) for the 
first phase of construction within 12 months of grant award. The 
program schedule must indicate the date on which the development 
proposal for each phase of the revitalization plan will be submitted to 
HUD.
    f. The closing of the first phase must take place within 15 months 
of grant award. For this purpose, ``closing'' means all financial and 
legal arrangements have been executed and actual activities 
(construction, etc.) are ready to commence.
    g. Grantees must complete construction within 48 months from the 
date of HUD's approval of your Supplemental Submissions. This time 
period for completion may not exceed 54 months from the date the grant 
agreement is executed.
    3. HOPE VI Endowment Trust Addendum to the Grant Agreement. This 
document must be executed between the grantee and HUD in order for the 
grantee to use CSS funds in accordance with Section III.C.4.k.(2) of 
this NOFA.
    4. Revitalization Plan. After HUD conducts a post-award review of 
your application and makes a visit to the site, you will be required to 
submit components of your Revitalization plan to HUD, as provided in 
the HOPE VI Revitalization Grant Agreement. These components include, 
but are not limited to:
    a. Supplemental Submissions, including a HOPE VI Program Budget;
    b. A Community and Supportive Services work plan, in accordance 
with guidance provided by HUD;
    c. A standard or mixed-finance development proposal, as applicable;
    d. A demolition and disposition application, as applicable; and
    e. A homeownership proposal, as applicable.
    5. Management Agreement. HOPE VI Revitalization grantees will be 
required to develop Management Agreements that describe their operation 
and management principles and policies for their public housing units.
    6. Match. a. Grantees will be required to show evidence that 
matching resources were actually received and used for their intended 
purposes through quarterly reports as the project proceeds. Sources of 
matching funds may be substituted after grant award, as long as the 
dollar requirement is met.
    b. Grantees must pursue and enforce any commitment (including 
commitments for services) obtained from any public or private entity 
for any contribution or commitment to the project or surrounding area 
that was part of the match amount.
    7. LOCCS Requirements. The grantee must record all obligations and 
expenditures in LOCCS.
    8. Conflict of Interest in Grant Activities. a. Prohibition. In 
addition to the conflict of interest requirements in 24 CFR part 85, no 
person who is an employee, agent, consultant, officer, or elected or 
appointed official of a grantee and who exercises or has exercised any 
functions or responsibilities with respect to activities assisted under 
a HOPE VI grant, or who is in a position to participate in a decision-
making process or gain inside information with regard to such 
activities, may obtain a financial interest or benefit from the 
activity, or have an interest in any contract, subcontract, or 
agreement with respect thereto, or the proceeds thereunder, either for 
himself or herself or for those with whom he or she has family or 
business ties, during his or her tenure or for one year thereafter.
    b. HUD-Approved Exception. (1) Standard. HUD may grant an exception 
to the prohibition in Section (1) above on a case-by-case basis when it 
determines that such an exception will serve to further the purposes of 
HOPE VI and its effective and efficient administration.
    (2) Procedure. HUD will consider granting an exception only after 
the grantee has provided a disclosure of the nature of the conflict, 
accompanied by:
    (a) An assurance that there has been public disclosure of the 
conflict;
    (b) A description of how the public disclosure was made; and
    (c) An opinion of the grantee's attorney that the interest for 
which the exception is sought does not violate state or local laws.
    (d) Consideration of Relevant Factors. In determining whether to 
grant a requested exception under Section (b) above, HUD will consider 
the cumulative effect of the following factors, where applicable:
    (A) Whether the exception would provide a significant cost benefit 
or an essential degree of expertise to the Revitalization plan and 
demolition activities that would otherwise not be available;
    (B) Whether an opportunity was provided for open competitive 
bidding or negotiation;
    (C) Whether the person affected is a member of a group or class 
intended to be the beneficiaries of the Revitalization plan and 
Demolition plan and the exception will permit such person to receive 
generally the same interests or benefits as are being made available or 
provided to the group or class;
    (D) Whether the affected person has withdrawn from his or her 
functions or responsibilities, or the decision making process, with 
respect to the specific activity in question;
    (E) Whether the interest or benefit was present before the affected 
person was in a position as described in Section (iii) above;
    (F) Whether undue hardship will result either to the grantee or the 
person affected when weighed against the public interest served by 
avoiding the prohibited conflict; and
    (G) Any other relevant considerations.
    9. Flood Insurance. In accordance with the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128), your application may not 
propose to provide financial assistance for acquisition or construction 
(including rehabilitation) of properties located in an area identified 
by the Federal Emergency Management Agency (FEMA) as having special 
flood hazards, unless:
    a. The community in which the area is situated is participating in 
the National Flood Insurance program (see 44 CFR parts 59 through 79), 
or less than one year has passed since FEMA notification regarding such 
hazards; and
    b. Where the community is participating in the National Flood 
Insurance Program, flood insurance is obtained as a condition of 
execution of a grant agreement.
    10. Coastal Barrier Resources Act. In accordance with the Coastal 
Barrier Resources Act (16 U.S.C. 3501), your application may not target 
properties in the Coastal Barrier Resources System.
    11. Final Audit. Grantees are required to obtain a complete final 
closeout audit of the grant's financial statements by a certified 
public accountant (CPA), in accordance with generally accepted

[[Page 64166]]

government audit standards. A written report of the audit must be 
forwarded to HUD within 60 days of issuance. Grant recipients must 
comply with the requirements of 24 CFR part 84 or 24 CFR part 85 as 
stated in OMB Circulars A-110, A-87, and A-122, as applicable.
    12. Policy Requirements. a. OMB Circulars and Administrative 
Requirements. You must comply with the following administrative 
requirements related to the expenditure of federal funds. OMB circulars 
can be found at http://www.whitehouse.gov/omb/circulars/index.html. 
Copies of the OMB circulars may be obtained from EOP Publications, Room 
2200, New Executive Office Building, Washington, DC 20503; telephone 
(202) 395-7332 (this is not a toll-free number). The Code of Federal 
Regulations can be found at http://www.access.gpo.gov/nara/cfr/index.html.
    (1) Administrative requirements applicable to PHAs are:
    (a) 24 CFR part 85 (Administrative Requirements for Grants and 
Cooperative Agreements to State, Local, and Federally Recognized Indian 
Tribal Governments), as modified by 24 CFR 941 or successor part, 
subpart F, relating to the procurement of partners in mixed finance 
developments.
    (b) OMB Circular A-87 (Cost Principles for State, Local, and Indian 
Tribal Governments);
    (c) 24 CFR 85.26 (audit requirements).
    (2) Administrative requirements applicable to nonprofit 
organizations are:
    (a) 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Nonprofit Organizations);
    (b) OMB Circular A-122 (Cost Principles for Nonprofit 
Organizations);
    (c) 24 CFR 84.26 (audit requirements).
    (3) Administrative requirements applicable to for profit 
organizations are:
    (a) 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Nonprofit Organizations);
    (b) 48 CFR part 31 (contract cost principles and procedures);
    (c) 24 CFR 84.26 (audit requirements).
    C. Reporting.
    1. Quarterly Report. a. If you are selected for funding, you must 
submit a quarterly report to HUD.
    (1) HUD will provide training and technical assistance on the 
filing and submitting of quarterly reports.
    (2) Filing of quarterly reports is mandatory for all grantees, and 
failure to do so within the required timeframe will result in 
suspension of grant funds until the report is filed and approved by 
HUD.
    (3) Grantees will be held to the milestones that are reported on 
the Quarterly Report Administrative and Compliance Checkpoints Report, 
as approved by HUD.
    (4) Grantees must also report obligations and expenditures in 
LOCCS, or its successor system, on a quarterly basis.
    2. Logic Model Reporting. a. The reporting shall include submission 
of a completed Logic Model indicating results achieved against the 
proposed output goal(s) and proposed outcome(s) which you stated in 
your approved application and agreed upon with HUD. The submission of 
the Logic Model and required information should be in accord with the 
reporting timeframes as identified in your grant agreement.
    b. As a condition of the receipt of financial assistance under a 
HUD Program NOFA, all successful applicants will be required to 
cooperate with all HUD staff or contractors performing HUD-funded 
research and evaluation studies.
    3. Final Report. The grantees shall submit a final report, which 
will include a financial report and a narrative evaluating overall 
performance against its HOPE VI Revitalization plan. Grantees shall use 
quantifiable data to measure performance against goals and objectives 
outlined in its application. The financial report shall contain a 
summary of all expenditures made from the beginning of the grant 
agreement to the end of the grant agreement and shall include any 
unexpended balances. The final narrative and financial report shall be 
due to HUD 90 days after either the full expenditure of funds, or when 
the grant term expires, whichever comes first.

VII. Agency Contacts

    A. Technical Assistance. 1. Before the application due date, HUD 
staff will be available to provide you with general guidance and 
technical assistance. However, HUD staff is not permitted to assist in 
preparing your application. If you have a question or need a 
clarification, you may call, fax, or write Mr. Milan Ozdinec, Deputy 
Assistant Secretary for Public Housing Investments, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Room 4130, 
Washington, DC 20410-5000; telephone (202) 401-8812; fax (202) 401-2370 
(these are not toll-free numbers). Persons with hearing or speech 
challenges may access these telephone numbers through a text telephone 
(TTY) by calling the toll-free Federal Information Relay Service at 
(800) 877-8339.
    2. Frequently Asked Questions. Before the application due date, 
frequently asked questions (FAQ) on the NOFA will be posted to HUD's 
grants Web site at http://www.hud.gov/offices/adm/grants/otherhud.cfm.
    B. Technical Corrections to the NOFA. 1. Technical corrections to 
this NOFA will be posted to the Grants.gov/Find Web site and to http://www.hud.gov/offices/adm/grants/otherhud.cfm.
    2. Any technical corrections will also be published in the Federal 
Register.
    3. You are responsible for monitoring these sites during the 
application preparation period.
    C. General Information. General information about HUD's H6 program 
can be found on the Internet at http://www.hud.gov/offices/pih/programs/ph/hope6/.

VIII. Other Information

    A. Waivers. Any HOPE VI-funded activities at public housing 
projects are subject to statutory requirements applicable to public 
housing projects under the 1937 Act, other statutes, and the annual 
contributions contract (ACC). Within such restrictions, HUD seeks 
innovative solutions to the long-standing problems of severely 
distressed public housing projects. You may request, for the 
revitalized project, a waiver of HUD regulations, subject to statutory 
limitations and a finding of good cause under 24 CFR 5.110 if the 
waiver will permit you to undertake measures that enhance the long-term 
viability of a project revitalized under this program. HUD will assess 
each request to determine whether good cause is established to grant 
the waiver.
    B. Environmental Impact. A Finding of No Significant Impact with 
respect to the environment has been made for this notice in accordance 
with HUD regulations at 24 CFR part 50 that implement Section 102(2)(C) 
of the National Environmental Policy Act of 1969 (42 U.S.C. 4332). The 
Finding of No Significant Impact is available for public inspection 
between 8 a.m. and 5 p.m. in the Office of the General Counsel, 
Regulations Division, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410-0500.
    C. SuperNOFA References. The following sub-sections of Section 
VIII. of the SuperNOFA are hereby incorporated by reference:
    1. Executive Order 13132, Federalism;
    2. Public Access, Documentation and Disclosure;
    4. Section 103 of the HUD Reform Act;

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    5. The FY 2004 HUD NOFA Process and Future HUD Funding Processes; 
and
    6. Sense of Congress.
    D. Paperwork Reduction Act Statement. The information collection 
requirements contained in this document have been approved by the 
Office of Management and Budget (OMB), under the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB Control Number 2577-
0208. In accordance with the Paperwork Reduction Act, HUD may not 
conduct or sponsor, and an person is not required to respond to, a 
collection of information unless the collection displays a currently 
valid OMB control number. Public reporting burden for the collection of 
information is estimated to average 68 hours per annum per respondent 
for the application and grant administration. This includes the time 
for collecting, reviewing, and reporting the data for the application, 
quarterly reports and final report. 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 25, 2004.
Michael Liu,
Assistant Secretary for Public and Indian Housing.
BILLING CODE 4210-33-P

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[FR Doc. 04-24275 Filed 11-2-04; 8:45 am]
BILLING CODE 4210-33-C