[Federal Register Volume 70, Number 61 (Thursday, March 31, 2005)]
[Notices]
[Pages 16554-16690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-6238]



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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 
2005; Notice

  Federal Register / Vol. 70, No. 61 / Thursday, March 31, 2005 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4982-N-01]


Notice of Funding Availability for Revitalization of Severely 
Distressed Public Housing HOPE VI Revitalization Grants Fiscal Year 
2005

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 2005.
    C. Announcement Type. Initial announcement.
    D. Funding Opportunity Number. The Federal Register number for this 
NOFA is: FR-4982-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 Submission Date: The application 
submission date shall be June 29, 2005. See the General Section for 
application submission and timely receipt requirements.
    2. Estimated Grant Award Date: The estimated award date will be 
approximately September 27, 2005.
    G. Optional, Additional Overview Content Information. 1. Available 
Funds. This NOFA announces the availability of approximately $110 
million in FY2005 funds for HOPE VI Revitalization Program grants, plus 
approximately $25 million additional for grantees' first-year, grant-
related housing choice voucher (HCV) assistance.
    2. Proposed Rescission of Funds. The public is hereby notified that 
although this NOFA announces the availability of FY 2005 HOPE VI Funds, 
the FY 2006 proposed budget includes the rescission of the FY 2005 HOPE 
VI Appropriation. Therefore, this NOFA may be cancelled at a later date 
and applications made under this NOFA may not be funded.
    3. The maximum amount of each grant award is $20 million. It is 
anticipated that six grant awards will be made.
    4. Housing choice voucher assistance is available to successful 
applicants that receive the revitalization grant awards. The dollar 
amount of HCV assistance is in addition to the $20 million maximum 
award amount and will be based upon resident relocation needs.
    5. All non-troubled public housing authorities (PHAs) with severely 
distressed public housing are eligible to apply. Troubled PHAs must 
have received HUD approval to be considered eligible to apply. PHAs 
that manage only a HCV program, tribal PHAs and tribally-designated 
housing entities are not eligible.
    6. A match of at least five percent is required.
    7. Each applicant may submit only one HOPE VI revitalization 
application.
    8. Application materials may be obtained from the Federal Register 
or over the Internet from http://www.grants.gov/FIND. Technical 
corrections will be published in the Federal Register. Both technical 
corrections and frequently asked questions will be posted on the 
grants.gov website.
    9. HUD's general policy requirements apply to all HUD Federal 
financial assistance NOFAs for Fiscal Year (FY) 2005. These policies 
cover those NOFAs issued under HUD's Super Notice of Funding 
Availability (SuperNOFA) General Section (70 FR 13576), published in 
the Federal Register on March 21, 2005, as well as those issued after 
the General Section 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, 2005 (Pub. L. 108-447, approved December 8, 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. Public Housing Project. A public housing project is a group of 
assisted housing units that has a single Project Number assigned by the 
Director of Public Housing of a HUD Field Office and has, or had (in 
the case of previously demolished units) housing units under an Annual 
Contributions Contract.
    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

[[Page 16555]]

(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 that currently forms a 
portion of the public housing project targeted by the application to 
this NOFA:
    (a) Is sufficiently separable from the remainder of the project of 
which the building is part, such that the revitalization of the 
building is feasible; or
    (b) Was part of the targeted public housing project 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'' is defined as 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. 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.
    5. Targeted Project. The targeted project is the current public 
housing project that will be revitalized with funding from this NOFA. 
The targeted project may include more than one public housing project 
or be a part of a public housing project. See Section III.C.1. of this 
NOFA for eligibility of multiple public housing projects and 
separability of a part of a public housing project.
    6. Temporary Relocation. There are no provisions for ``temporary 
relocation'' under the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act Of 1970 (URA). See Notice CPD 04-2, ``Guidance 
on the Application of the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act Of 1970 (URA), As Amended, in HOPE VI 
Projects,'' paragraph IV.A.2. for the definition of ``temporary 
relocation'' as it applies to HOPE VI projects. The Notice can be 
obtained through HUDClips at http://www.hudclips.org/.
    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.4. and V.A.6. of this NOFA for relocation 
requirements.
    2. Demolition. Demolition of dwelling units or non-dwelling 
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:
    a. Public housing; and
    b. Community facilities, provided that the community facilities are 
primarily intended to facilitate the delivery of community and 
supportive services for residents of the public housing 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:
    a. Public housing replacement units; and
    b. 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. Down payment or closing cost assistance;
    b. Hard or soft second mortgages; or
    c. Construction or permanent financing for new construction, 
acquisition, or rehabilitation costs related to homeownership 
replacement units.
    7. Acquisition. Acquisition of:
    a. Rental units and homeownership units;
    b. Land for the development of off-site replacement units and 
community facilities (provided that the community facilities are 
primarily intended to facilitate the delivery of community and 
supportive services for residents of the public housing project and 
residents of off-site replacement housing);
    c. Land for economic development-related activities, provided that 
such acquisition is performed with non-public housing funds.
    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.

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    (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) Training on topics such as parenting skills, consumer 
education, family budgeting, and credit management.
    (7) 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.
    (8) 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.
    (9) Substance and alcohol abuse treatment and counseling.
    (10) Activities that address domestic violence treatment and 
prevention.
    (11) 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.
    (12) Transportation, as necessary, to enable all family members to 
participate in available CSS activities and to commute to their places 
of employment.
    (13) Entrepreneurship training and mentoring, with the goal of 
establishing resident-owned businesses.
    11. Leveraging. Leveraging other resources, including additional 
housing resources, supportive services, job creation, and other 
economic development uses on or near the project that will benefit 
future residents of the site.
    12. General Section Reference. Section I, ``Funding Opportunity 
Description,'' of the Notice of HUD's Fiscal Year 2005 Notice of 
Funding Availability (NOFA) Policy Requirements and General Section to 
the Super NOFA for HUD's Discretionary Programs (General Section), 
Docket No. FR-4950-N-01, published in the Federal Register on March 21, 
2005, is hereby incorporated by reference.

II. Award Information

A. Availability of HOPE VI Funds

    1. Proposed Rescission of Funds. The public is hereby notified that 
although this NOFA announces the availability of FY 2005 HOPE VI Funds, 
the FY 2006 proposed budget includes the rescission of the FY 2005 HOPE 
VI Appropriation. Therefore, this NOFA may be cancelled at a later date 
and applications made under this NOFA may not be funded.

------------------------------------------------------------------------
                                                         Funds available
                                                          for award in
                  Type of assistance                      this HOPE VI
                                                              NOFA
                                                          (approximate)
------------------------------------------------------------------------
Revitalization Grants.................................      $110,000,000
Housing Choice Voucher Assistance.....................        25,000,000
                                                       -----------------
    Total.............................................       135,000,000
------------------------------------------------------------------------

    2. Revitalization Grants. Approximately $110 million of the FY2005 
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.
    3. 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. Housing Choice Voucher Assistance. Approximately $25 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 $25 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. Grant term. The period for completion shall not exceed 54 months 
from the date the NOFA award is executed by HUD.

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;
    (3) Has not been found to be in non-compliance with fair housing or 
other civil rights requirements; or
    (4) 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 1937 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 five 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 
accordance with the 1937 Act (42 U.S.C. 1437v(c)(1)(B)), 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 CSS 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.

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    c. No HOPE VI Funding in Match. 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 not include amounts from 
HOPE VI program funding, including HOPE VI Revitalization, HOPE VI 
Demolition, HOPE VI Neighborhood Networks or HOPE VI Main Street 
grants. You may include funding from other public housing sources 
(e.g., Capital Funds), other federal sources, any state or local 
government source and any private contributions. You may also include 
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. Firmly and Irrevocably Committed. (1) 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. See Section IV.F. of the General Section for 
instructions on how to electronically submit third party documents.
    (2) Match donations must be irrevocably committed. See Section 
VI.B.5.a. of this NOFA.
    e. Matching funds must be directly applicable to the revitalization 
of the targeted project and the transformation of the lives of 
residents.
    f. The PHA's staff time is not an eligible cash or in-kind match.
    g. See Section IV.B.3 of this NOFA for match documentation 
requirements.

C. Other

1. Thresholds
    If you have not met a threshold, or, when required by this NOFA, 
have not included in the application the complete, correct, required 
documentation that demonstrates the threshold has been met, the 
application will not be considered for funding. Threshold insufficiency 
cannot be cured after the application submission 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 discuss other 
possible alternatives in the local housing market and explain why the 
housing envisioned in the application 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 considered for funding. 
Examples of alternative proposals may include:
    (1) Rebuilding or rehabilitating an existing project or units at an 
off-site location that is in an isolated, non-residential, or otherwise 
inappropriate area;
    (2) Proposing a range of incomes, housing types (rental, 
homeownership, market-rate, public housing, townhouse, detached house, 
etc.), or costs which cannot be supported by a market analysis; or
    (3) Proposing to use the land in a manner that is contrary to the 
goals of your agency.
    (4) See Section IV.B.4.a. of this NOFA for documentation 
requirements.
    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.
    (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 not 
be considered 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 
considered for funding. See Section IV.B.4.b. of this NOFA for 
documentation requirements.
    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; or housing units that 
are not Replacement Housing (See Section I.C. of this NOFA), your 
application will not be considered for funding. See Section IV.B.4.c. 
for documentation requirements regarding this threshold.
    f. Open Inspector General Audits. (1) If you have an open Inspector 
General (IG) audit finding that has not been resolved to HUD's 
satisfaction before the submission date of this NOFA, the application 
will not be considered 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 considered 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;
    (c) Unforeseen environmental conditions; and
    (d) Emergency and natural disasters.
    (4) HUD will use documents and information available to it to 
determine

[[Page 16558]]

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 part of a project that is being revitalized or 
replaced under an existing HOPE VI Revitalization grant. 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. 
However, Replacement Housing Factor funds will not be considered as 
funds which are used to achieve significant revitalization of units. 
For example, if a project has 700 units and you were awarded a HOPE VI 
Revitalization grant or other HUD public housing funds to address 300 
of those units, you may submit an FY-2005 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 considered 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 for each phase 
of the revitalization plan will be submitted to HUD. A development 
proposal may by for a mixed-finance development, homeownership 
development, etc., will be submitted to HUD. If your application does 
not contain a program schedule, as described above, the application 
will not be considered for funding. See Section IV.B.4.d. of this NOFA 
for documentation requirements.
    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 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 considered for funding.
    k. Severe Distress of Targeted Project. The targeted public housing 
project must be severely distressed. See Section I.C. of this NOFA for 
the definition of ``severely distressed.'' If the targeted project is 
not severely distressed, your application will not be considered for 
funding. See Section IV.B.5.a. of this NOFA for documentation 
requirements.
    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.n.(1) 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 
submission 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 considered for funding.
    (5) See Section IV.B.4.e. of this NOFA for documentation 
requirements.
    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 the 
documentation described in Section IV.B.4.f. of this NOFA:
    (2) If zoning approval/certification is not properly included in 
your application, the application will not be considered for funding.
    n. Compliance with Fair Housing and Civil Rights Laws. (1) All 
applicants must comply with all applicable fair housing and civil 
rights requirements in 24 CFR 5.105(a), as applicable.
    (2) If you, the applicant:
    (a) Have been charged with an on-going systemic violation of the 
Fair Housing Act; or
    (b) Are a defendant in a Fair Housing Act lawsuit filed by the 
Department of Justice alleging an on-going pattern or practice of 
discrimination; or
    (c) Have received a letter of findings identifying ongoing systemic 
noncompliance under Title VI of the Civil Rights Act of 1964, Section 
504 of the Rehabilitation Act of 1973, or Section 109 of the Housing 
and Community Development Act of 1974; and
    (d) The charge, lawsuit or letter of findings referenced in subpart 
(a), (b) or (c) above has not been resolved to HUD's satisfaction 
before the application deadline, then the application will not be 
considered for funding. See Section III.C.2.c. of the General Section.
    o. Requirements and Procedures Applicable to All Programs:
    (1) General Section References. The following subsections of 
Section III.C. of the General Section 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. FY-2005 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
    a. 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.

[[Page 16559]]

    b. Non-Curable Certifications. If you have not met a threshold on 
or before the application submission date, or have not included in the 
application the complete, correct, required documentation that 
demonstrates the threshold has been met, the application will not be 
considered for funding. For these thresholds, insufficiency cannot be 
cured after the application submission 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 submission 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) See Section IV.B.5.g. of this NOFA for documentation 
requirements.
    c. Curable Certifications. Omission of, or error in the signature 
of, any of the mandatory documentation (as listed in Section IV.B. of 
this NOFA) related to the items listed below is considered a Technical 
Deficiency and must be cured (corrected) within the cure period stated 
in Section V.B. of the General Section. Applications that remain 
deficient after the cure period ends will not be considered 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. of this NOFA. See 
Section IV.B.5.c. of this NOFA for documentation requirements.
    (2) Relocation Plan Certification.
    (a) You must certify that the HOPE VI Relocation Plan has been 
completed and:
    (i) That it conforms to the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (URA) requirements; and
    (ii) That it implements HOPE VI relocation goals, 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 submission date, rather than 
certifying that the HOPE VI Relocation Plan has been completed, you 
must certify that the relocation was completed in accordance with URA 
requirements.
    (c) See Section IV.B.5.d. of this NOFA for documentation 
requirements.
    (3) Resident Involvement in the Revitalization Program 
Certification. 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 in the planning process, your 
application will not be considered for funding. See Section III.C.4. of 
this NOFA for minimum training and meeting requirements and Section 
IV.B.5.e. of this NOFA for documentation requirements.
    (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/fundsavail.cfm. See Section IV.B.5.i. of this NOFA for documentation 
requirements.
3. Thresholds--Third-Party Certifications
    The following third-party certifications must be included in your 
application.
    a. Non-Curable. If you have not included in the application, on or 
before the application submission date, the complete, correct, required 
documentation that demonstrates the threshold has been met, the 
application will not be 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 submission 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. The certification must be made 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 considered for funding. See Section 
IV.B.5.h. of this NOFA for documentation requirements.
    (2) Severely Distressed Certification. Your application must 
include a certification that the targeted project is severely 
distressed. See Section IV.B.5.g. for documentation requirements.
    b. Curable. 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 V.B. of the 
General Section. Applications that remain deficient after the cure 
period will not be considered for funding. See Section IV.B. of this 
NOFA for any documentation requirements related to these 
certifications.
    (1) Market Assessment Certification for Market-Rate Housing. If you 
include market-rate housing, economic development, or 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, economic 
development or retail structures, based on the market and economic 
conditions of the project area. See Section IV.B.5.a. of this NOFA for 
documentation requirements.
    (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. See Section IV.B.5.b. of this 
NOFA for documentation requirements.
4. Program Requirements
    a. Demolition
    (1) You may not carry out nor permit others to carry out the 
demolition of the targeted project or any portion of the project until 
HUD approves, in writing, one of the following ((a)-(c)), and until HUD 
has also I) approved a Request for Release of Funds submitted in 
accordance with 24 CFR part 58, or, II) if HUD performs an 
environmental review under 24 CFR part 50, approved the property for 
demolition, in writing, following its environmental review.
    (a) Information regarding demolition 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 that is demolished pursuant to a 
Revitalization Plan is not required to be approved through 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

[[Page 16560]]

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 for HOPE VI related 
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 www.hud.gov/offices/pih/centers/sac/homeownership.
    (2) The homeownership proposal must be consistent with the Section 
8 Area Median Income (AMI) limitations (80 percent of AMI) 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/il05/index.html.)
    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).
    (3) 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.
    (4) 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. Leverage
    (1) You must actively enlist other stakeholders who are vested in 
and can provide significant financial assistance to your revitalization 
effort, both for physical development and CSS.
    (2) Types of Leverage Resources. HUD seeks to fund mixed-finance 
developments that use HOPE VI funds to leverage the maximum amount of 
other 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. There are four 
types of Leverage: Development, CSS, Anticipatory, and Collateral. 
Development and CSS leverage are program requirements and will be 
described here. Anticipatory and Collateral leverage are included only 
in the Leverage rating factor and are described in Section V.A.3. of 
this NOFA.
    (3) Development Leverage.
    (a) Development resources include:
    (i) Private mortgage-secured loans and other debt.
    (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/parish, 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

[[Page 16561]]

Housing Finance Agencies, a directory of which can be found at http://www.ncsha.org/ncsha/public/statehfadirectory/index.htm.
    (b) Sources of Development Leverage. Sources of Development 
Leverage may include:
    (i) Public, private, and nonprofit entities, including LIHTC 
purchasers;
    (ii) State and local housing finance agencies;
    (iii) Local governments;
    (iv) 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.
    (A) You are strongly urged to seek a pledge of Community 
Development Block Grant (CDBG) funds for improvements to public 
infrastructure such as streets, water mains, etc. related to the 
revitalization effort. CDBG funds are awarded by HUD by formula to 
units of general local government and to states, which may then award a 
grant or loan to a PHA, a partnership, a 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.
    (B) The city, county/parish, 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.
    (v) Foundations;
    (vi) Government Sponsored Enterprises such as the Federal Home Loan 
Bank, Fannie Mae, and Freddie Mac;
    (vii) HUD and other Federal agencies;
    (viii) Financial institutions, banks, or insurers; and
    (ix) Other private funders.
    (4) Community and Supportive Services Leverage.
    (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 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. See Section V.A.3. of this NOFA.
    (b) Types of CSS Leverage.
    Types of resources 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.
    (c) TANF cash benefits themselves will not be counted as leverage.
    (d) ONLY funds and in-kind services that will be newly generated 
for HOPE VI activities in this NOFA are considered CSS leverage.
    (5) Sources of CSS Leverage. 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.m. for a list of the kinds of organizations, agencies, and 
other providers that may be used as sources of CSS leverage.
    f. 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.
    g. 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 
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 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

[[Page 16562]]

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 
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.g.(4) above. See 
Section V.9.f. of this NOFA for the Energy Star Rating Factor.
    (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.
    h. 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, 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; and
    (c) Are not otherwise employed in the work involved (24 CFR part 
70).
    (3) If other federal programs are used in connection with your HOPE 
VI activities, labor standards requirements apply to the extent 
required by the other federal programs on portions of the project that 
are not subject to Davis-Bacon rates under the 1937 Act.
    i. Operation and Management Principles and Policies
    (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. Note 
that local preferences for public housing must comply with Fair Housing 
requirements at 24 CFR 960.206;
    (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 that follow project-based 
management principles for the

[[Page 16563]]

redeveloped public housing. Note that site-based waiting lists for 
public housing must comply with Fair Housing requirements at 24 CFR 
903.7(b)(2);
    (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/.
    j. Non-Fungibility for Moving To Work (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 OMB Circulars A-87, 
``Cost Principles Applicable to Grants, Contracts and Other Agreements 
with State and Local Governments,'' A-133, ``Audits of States, Local 
Governments, and Non-Profit Organizations'' and the regulations 24 CFR 
part 85, ``Administrative Requirements for Grants and Cooperative 
Agreements to State, Local, and Federally Recognized Indian Tribal 
Governments,'' and GAAP.
    k. 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 
issues listed below (i.e., all issues need not be addressed at each 
meeting):
    (i) The HOPE VI planning and implementation process;
    (ii) The proposed physical plan, including site and unit design, 
and whether the unit design is in compliance with Fair Housing Act and 
Uniform Federal Accessibility Standards (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, i.e., relocation for a reasonable period (less than one 
year), 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.
    l. 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 Sections 24(d)(1)(L) 
and 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, other Federal, state, local, PHA, or 
private-sector donations (leverage).
    (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

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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 Temporary Assistance for Needy Families (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 formalized 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 formalized and memorialized with a binding 
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. Family Self-Sufficiency (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 household that is not headed by an elderly or 
disabled person can reside in a public housing unit within a HOPE VI 
Revitalization Development.
    (b) Neighborhood Networks. All FY2005 Revitalization grantees will 
be required to establish Neighborhood Networks Centers (NNC) and to 
promote the inclusion of infrastructure that permits unit-based access 
to broadband internet connectivity in all new and replacement public 
housing units. 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 NNCs and to provide unit-based Internet connectivity. More 
information on the requirements of the NNC program is available on the 
Neighborhood Networks Web site at http://www.hud.gov/nnw/nnwindex.html. 
There will not be a separate FY-2005 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 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
    m. 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.
    (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.
    (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

[[Page 16565]]

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 
General Section. 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, each of which has a Memorandum 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.''
    n. 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 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 outside low-income areas and areas of 
minority concentration 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, Title VI of the Civil Rights 
Act of 1964, and Section 504 of the Rehabilitation Act of 1973. You 
must comply with the Fair Housing Act, Title VI of the Civil Rights Act 
of 1964, Section 504 of the Rehabilitation Act of 1973, 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

[[Page 16566]]

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 percentage 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;
    (ii) The neighborhood's total percentage of minority persons is at 
least 20 percentage 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 
Sec. Sec.  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
    (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.
    o. 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 
Uniform Relocation Assistance and Real Property Acquisition Policies 
Act of 1970 (URA), the URA regulations at 49 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 URA, and the implementing 
government-wide regulation at 49 CFR part 24, and Notice CPD 04-02, 
``Revision to Notice CPD 02-8, Guidance on the Application of the 
Uniform Relocation Assistance and Real Property Acquisition Policies 
Act of 1970 (URA), 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. 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

[[Page 16567]]

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.
    p. Well-Functioning Communities
    See Section V.A.8. of this NOFA for requirements that the unit mix 
of on-site, off-site and homeownership units create a well-functioning 
community.
    q. Soundness of Approach: Design
    HUD is seeking excellence in design. You must carefully select your 
architects and planners, and 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.
    You should 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.
    r. Internet Access
    You must have access to the Internet and provide HUD with email 
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 for other affordable units and the 
market demand for market units, along with 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 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

[[Page 16568]]

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 website is located at http://www.hud.gov/offices/cpd/energyenviron/environment/index.cfm.
7. General Section References
    The following sub-sections of Section III.C. of the General Section 
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. Obtaining the NOFA. Copies of this published NOFA and 
application forms for this program may be downloaded from the 
grants.gov Web site at http://www.grants.gov. If you have difficulty 
accessing the information you may call the grants.gov help line toll-
free at (800) 518-GRANTS or e-mailing <grants.gov">support@grants.gov>. Help line 
customer representatives will assist you in accessing the information. 
For general information, you can contact the NOFA Information Center at 
(800) HUD-8929. If you are hearing impaired, you may reach the NOFA 
Information Center through (800) HUD-2209 (TTY) (these are toll-free 
numbers).
    2. Federal Register. 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 by the 
above Web site, the Federal Register publication prevails. Please be 
sure to review your application submission against the requirements in 
the Federal Register file of the NOFA.
    3. 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.
    4. Corrections to the NOFA. Corrections to the NOFA will be posted 
to the grants.gov Web site, as described above. Any technical 
corrections will also be published in the Federal Register. As with the 
original NOFA, 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 by the above 
website, the Federal Register publication prevails. Applicants are 
responsible for monitoring these websites and the Federal Register 
during the application preparation period.

B. Content and Form of Application Submission

1. General
    a. Electronic Signature. Applications submitted through grants.gov 
constitute submission as electronically signed applications. The 
registration and e-authentication process establishes the Authorized 
Organization Representative (AOR). When you submit the application 
through Grants.gov, the name of your authorized organization 
representative on file will be inserted into the signature line of the 
application. Applicants must register the individual who is able to 
make legally binding commitments for the applicant organization as the 
Authorized Organization Representative (AOR).
    b. Manual Signatures. If your organization is granted a waiver to 
the electronic application submission requirement, you should follow 
the following instructions regarding manual 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.
    c. Manual Page Layout. If you are granted a waiver to the 
electronic submission requirement:
    (1) Double-space your narrative pages. Single-spaced pages will be 
counted as two pages;
    (2) Use 8\1/2\ x 11-inch paper, one side only. Only the city map 
may be submitted on an 8 \1/2\ by 14-inch sheet of 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, Times New Roman 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. and in the Submission Instructions. 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; and
    (10) The applications (copy and original) should each be packaged 
in a three-ring binder.

[[Page 16569]]

    d. Manual Page Count. If you are granted a waiver to the electronic 
submission requirement:
    (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.
    e. Electronic Format. (1) Exhibits. Exhibits are as listed in 
Section IV.B.2.a. of this NOFA. Each Exhibit should be contained in a 
separate file and section of the application. Each file should contain 
one title page.
    (a) Exhibit Title Pages. HUD will use title pages as tabs when it 
downloads and prints the application. Provided the information on the 
title page is limited to the list in Section (b) below, the title pages 
will not be counted when HUD determines the length of each Exhibit, or 
the overall length of the Exhibits.
    (i) Each title page should only contain:
    (A) The name of the Exhibit, as described in Section IV.B.2.a. of 
this NOFA, e.g., ``Narrative Exhibit A: Summary Information';
    (B) The name of the applicant; and
    (C) The name of the file that contains the Exhibit.
    (b) Exhibit File Names and Types.
    (i) All Exhibit files in the application must be contained in one 
Exhibit ZIP file.
    (ii) Each file within the ZIP file must be formatted so it can be 
read by MS Word 2000 (.DOC).
    (iii) Each file name must include the information below, in the 
order stated:
    (A) Short version of applicant's name, e.g., town, city, county/
parish, etc., and state; and
    (B) The word ``Exhibit'' and the Exhibit letter (A through I), as 
listed in Section IV.B.2.a. of this NOFA;
    (C) An example of an Exhibit file name is, ``Atlanta GA Exhibit 
A.''
    (2) Attachments. Attachments are as listed in Section IV.B.2.b. of 
this NOFA. Each Attachment should be contained in a separate file and 
section of the application. Each Attachment that is not a HUD Form 
should contain one title page.
    (a) Attachment Title Pages. HUD will use title pages as tabs if it 
downloads and prints the application. Provided the information on the 
title page is limited to the list in Section (b) below, the title pages 
will not be counted when HUD determines the length of each Attachment, 
or the overall length of the Attachments. HUD forms do not require 
title pages.
    (i) Each title page should only contain:
    (A) The name of the Attachment, as described in Section IV.B.2.b. 
of this NOFA, e.g., ``Attachment 10: Extraordinary Site Costs 
Certification';
    (B) The name of the applicant; and
    (C) The name of the file that contains the Attachment.
    (b) Attachment File Names and Types.
    (i) All Attachments that are not listed separately on grants.gov 
and are formatted as PureEdge forms, e.g., SF-424, must be contained in 
one Attachment ZIP file.
    (ii) Each file within the ZIP file must be formatted so it can be 
read by MS Excel (.XLS) or Adobe Acrobat (.PDF).
    (A) Attachments that are downloaded from grants.gov in MS Excel 
format may be submitted in Excel format.
    (B) Attachments that are downloaded from grants.gov in text format, 
e.g., certifications, should be submitted in Adobe Acrobat (PDF) 
format.
    (C) Third-party documents, e.g., leverage commitment letters, 
pictures, etc., should be submitted in Adobe Acrobat (PDF) format.
    (iii) Each file name must include the information below, in the 
order stated:
    (A) Short version of applicant's name, e.g., town, city, county/
parish, etc., and state; and
    (B) The word ``Attachment'' and the Attachment number (1 through 
41), as listed in Section IV.B.2.b. of this NOFA;
    (C) An example of an Exhibit file name is, ``Atlanta GA Attachment 
1''.
    (3) Maximum Length of Application.
    (i) Page Definition and Format.
    (A) For Exhibits, a ``page'' contains a maximum of 23 double-spaced 
lines. The length of each line must be a maximum of 6\1/2\ inches. This 
is the equivalent of formatting to be printed on 8\1/2\'' x 11'' paper, 
with one inch top, bottom, left and right margins. The font must be 12-
point Times New Roman. Each page must be numbered.
    (B) For Attachments, an applicant formatted text page is defined as 
in (A) above. Third-party documents converted into PDF format must not 
be shrunk to fit more than one original page on each application page. 
Pages of HUD Forms and certification formats furnished by HUD are as 
numbered by HUD.
    (C) The maximum total length of the Exhibits and of the Attachments 
is as stated in Section IV.B.1.d. above.
    d. See Section IV.F. of the General Section for instructions on how 
to electronically submit third-party and large documents (i.e., 
documents 8\1/2\ by 14-inch, etc.).
2. Application Content
    The following is a list of narrative exhibits and attachments that 
are required as part of the application. 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.

[[Page 16570]]

of this NOFA 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 Grants.gov. 
Applicants that are granted a waiver to the electronic submission 
requirement must include the narrative exhibits and attachments in the 
application in the order listed below.
a. Narrative Exhibits
    (1) Acknowledgment of Application Receipt, form HUD-2993 (applies 
only if you are granted a waiver to the electronic submission 
requirement)
    (2) Application for Federal Assistance, Standard Form SF-424
    (3) HOPE VI Revitalization Application Table of Contents
    (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 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
    (31) Attachment 40: HOPE VI Revitalization Application 
Certifications
    (32) Attachment 41: Standard Forms and Certifications
    (a) Disclosure of Lobbying Activities, Standard Form LLL, as 
applicable
    (b) Applicant/Recipient Disclosure/Update Report, form HUD-2880,
    (c) Funding Application, Section 8 Tenant-Based Assistance Rental 
Certificate Program, Rental Voucher Program, form HUD-52515, if 
applicable.
3. Match Documentation
    If the commitment document for any match funds/in-kind services is 
not included in the application and provided before the NOFA submission 
date, the related match will not be considered. Depending upon the 
specific Memorandum of Understanding (MOU), the MOU alone may not 
firmly and irrevocably commit Match funds, e.g., the MOU states that a 
donation agreement may be discussed in the future. If the MOU does 
firmly and irrevocably commit funds, the MOU language that does so 
should be highlighted or mentioned in the application. To ensure 
inclusion of Match funds, MOUs should be accompanied by commitment 
letters or contracts. 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 considered 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, Single, and Scattered-Site 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. See Section III.C.1.c of this NOFA for more information.
    c. Non-Public Housing Funding for Non-Public Housing or Replacement 
Units. Public Housing funds must only be used to develop Replacement 
Housing Units. You must demonstrate that you have sufficient non-Public 
Housing Leverage funds to develop all housing units that do not qualify 
as Replacement Housing. See Section I.C.3. of this NOFA for the 
definition of Replacement Housing.
    d. Program Schedule. Your application must contain a program 
schedule that provides a feasible plan to meet the schedule 
requirements of Section VI.B. 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 public 
housing development, 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.

[[Page 16571]]



------------------------------------------------------------------------
             Milestone                              Date
------------------------------------------------------------------------
Grant Award.......................  April 1, 2006.
Grant Agreement Execution.........  July 1, 2006.
HUD's written request for           August 1, 2006.
 Supplemental Submissions.
HUD's approval of Supplemental      September 1, 2006.
 Submissions.
------------------------------------------------------------------------

    If grant award takes place after April 1, 2006, the grantee's 
program schedule may be changed in the supplemental submissions to 
account for the period of time between April 1, 2006, and the actual 
date of grant award.
    e. 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.n.(1) of this NOFA.
    f. 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 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 V.B. of the 
General Section. Applications that remain deficient after the cure 
period will not be considered for funding.
a. Market-Rate Housing: Market Assessment Letter
    (1) If you include market-rate housing, community facilities (if 
market-driven, 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, e.g., a YMCA), 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 considered for funding.
b. HOPE VI Revitalization Applicant Certifications
    The Chairman of your Board of Commissioners must certify to the 
requirements listed in the HOPE VI Revitalization Applicant 
Certifications. A suggested format for this certification is provided 
on the Internet at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
c. 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.i. If, after the deficiency 
cure period, this certification is not properly included in your 
application, the application will not be considered for funding.
d. Relocation Plan Certification
    You must certify that the HOPE VI Relocation plan has been 
completed and that it conforms to the URA requirements, and that it 
implements the goals stated in V.A.6. of this NOFA.
    (a) You must certify that the HOPE VI Relocation Plan has been 
completed and:
    (i) That it conforms to the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (URA) requirements as 
described in Sections III.C.4. of this NOFA; and
    (ii) That it implements HOPE VI relocation goals, 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 submission date, rather than 
certifying that the HOPE VI Relocation Plan has been completed, you 
must certify that the relocation was completed in accordance with URA 
requirements.
    (c) If, after the deficiency cure period, this certification is not 
properly included in your application, the application will not be 
considered for funding.
e. 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

[[Page 16572]]

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. 
If, after the deficiency cure period, this certification is not 
properly included in your application, the application will not be 
considered for funding.
f. 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 format for a Certification of Severe Physical Distress is provided on 
the Internet at http://www.grants.gov.
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 required application 
submission 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. 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.
i. 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 website.
    (2) For applicants who are granted a waiver to the electronic 
application process, 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.
j. 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. Include information on capacity in Exhibits 
B and E. HUD will obtain information on Capital Fund Program 
availability internally. However, you must include information from 
your PHA Plan on Capital Fund Program funds that are planned for other 
uses. HUD will also obtain information on your scores for the Public 
Housing Assessment System (PHAS) and Section 8 Management Assessment 
Program (SEMAP) internally.
    b. Documentation for Need.
    (1) State the number of units that you currently have under ACC.
    (2) See Sections V.A.2. and IV.B.7.c. of this NOFA for the subjects 
and items that you should include in your Rating Factor narrative.
    (3) In order to document that you need HOPE VI funding to complete 
your proposed revitalization effort, you must include in your 
application:
    (a) The portion of your PHA plan that lists each year's planned 
uses of your FY 2000-2005 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
    (b) A table that states:
    (i) The amount of your total FY 2000-2005 Capital Funds;
    (ii) The amount of your total unobligated FY 2000-2005 Capital 
Funds; and
    (iii) The planned amounts and uses of unobligated funds earmarked 
in your PHA plan for purposes other than your application's proposed 
HOPE VI activities.
    (4) 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.
    (5) 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.
    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 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 that demonstrates firm and irrevocable commitments, such as a 
letter, memorandum of understanding (See (i) below.), 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. If the commitment document is not included in the 
application and provided before the NOFA submission date, the related 
leverage will not be considered. An official of the organization 
legally authorized to make commitments on behalf of the organization 
must sign the commitment document.
    (i) Memoranda of Understanding (MOUs). Depending upon the specific 
MOU, the MOU alone may not firmly and irrevocably commit Leverage 
funds, e.g., the MOU states that a donation agreement may be discussed 
in the future. If the MOU does firmly and irrevocably commit funds, the 
MOU language that does so should be highlighted or mentioned in the 
application. To ensure inclusion of Leverage funds, MOUs may be 
accompanied by commitment letters or contracts. This is not a technical 
deficiency and cannot be corrected during the deficiency period. See 
Section VI.B.5.a. of this NOFA.

[[Page 16573]]

    (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. For electronic application submission, you will also need to 
identify, in the documentation Attachment section of the application, 
whether the document was submitted to HUD:
    (i) As a scanned PDF document submitted through grants.gov 
(preferred); or
    (ii) as an electronic facsimile. See Section IV.F. of this NOFA.
    (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) LIHTC Documentation. 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 Section V.A.3. of this 
NOFA, 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.
    (3) Private mortgage-secured loans and other debt.
    (a) Your application must include each loan's expected term 
maturity and sources of repayment.
    d. Documentation for Resident Involvement. See Sections IV.B.5.e. 
and V.A.4. of this NOFA for documentation requirements.
    e. Documentation for CSS. Include CSS capacity information in 
Exhibit B, CSS Leverage in the Attachments and CSS program information 
in Exhibit E. See Sections III.C.4.l. and m. for program requirements 
and V.A.5. for CSS program Rating Factors. Note the importance of 
Housing Self-Sufficiency.
    f. Documentation for Relocation. There is a program requirement 
that you must complete a HOPE VI Relocation plan. The Relocation Plan 
should be in accordance with HUD Community Planning and Development's 
CPD Notice 04-02, which is an extension of Notice 02-08.
    (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 
III.C.4.;
    (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 submission 
date (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., and V.A.7. for documentation requirements.
    h. Documentation for Well-Functioning Community. See Sections 
III.C.4., and V.A.8. of this NOFA for documentation requirements. 
Include a summary of unit data that relates to need for affordable 
housing. Include information relating the Rating Factors to your 
Physical Plan, as described in Exhibit A.
    i. Documentation for Soundness of Approach. See Section 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. You must answer the questions in either Part A or Part B 
of the form, but not both.
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.
    (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) For applicants who are granted a waiver to the electronic 
application process, 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.

[[Page 16574]]

7. Further Documentation Guidance on Narrative Exhibits and Specific 
Attachments
    a. Exhibit A. Verify that you have included information relating to 
the following:
    (1) Executive Summary. Provide an Executive Summary, not to exceed 
three pages. Describe your Revitalization Plan, as clearly and 
thoroughly as possible. Do not argue for the need for the HOPE VI 
grant, but explain what you would do if you received a grant. Briefly 
describe why the targeted project is severely distressed, provide the 
number of units, and indicate how many of the units are occupied. 
Describe specific plans for the revitalization of the site. Include 
income mix, basic features (such as restoration of streets), and any 
mixed use or non-housing components. If you are proposing off site 
replacement housing, provide the number and type of units and describe 
the off site locations. Describe any homeownership components included 
in your Plan, including numbers of units. Briefly summarize your plans 
for community and supportive services. State the amount of HOPE VI 
funds you are requesting, and list the other major funding sources you 
will use for your mixed-finance development. Identify whether you have 
procured a developer or whether you will act as your own developer.
    (2) Physical Plan. Describe your planned physical revitalization 
activities:
    (a) Rehabilitation of severely distressed public housing units;
    (b) Development of public housing replacement rental housing, both 
on-site and off-site;
    (c) Indicate whether you plan to use PATH technologies and Energy 
Star in the construction of replacement housing;
    (d) Market rate housing units;
    (e) Units to be financed with low-income housing tax credits;
    (f) Replacement homeownership assistance for displaced public 
housing residents or other public housing-eligible low-income families. 
Also describe any market-rate homeownership units planned, sources and 
uses of funds. Describe the relationship between the HOPE VI activities 
and costs and the development of homeownership units, both public 
housing and market rate. If you are selected for funding, you will be 
required to submit a Homeownership Proposal (homeownership term sheet);
    (g) Rehabilitation or new construction of community facilities 
primarily intended to facilitate the delivery of community and 
supportive services for residents of the targeted development and 
residents of off-site replacement housing. Describe the type and amount 
of such space and how the facilities will be used in CSS program 
delivery or other activities;
    (h) Land acquisition, and infrastructure and site improvements. 
Note that HOPE VI grant funds may not be used to pay hard development 
costs or to buy equipment for retail or commercial facilities;
    (3) Hazard Reduction. For units to be rehabilitated or demolished, 
describe the extent of any required abatement of environmentally 
hazardous materials such as asbestos.
    (4) Demolition. Describe your plans for demolition, including the 
buildings (dwelling and non-dwelling units) proposed to be demolished, 
the purpose of the demolition, and the use of the site after 
demolition. If the proposed demolition was previously approved as a 
Section 18 demolition application, state the date the Section 18 
demolition application was submitted to HUD and the date it was 
approved by HUD. Indicate whether you plan to implement the concept of 
Deconstruction.
    (5) Disposition. Describe the extent of any planned disposition of 
any portion of the site. Cite the number of units or acreage to be 
disposed, the method of disposition (sale, lease, trade), and the 
status of any disposition application made to HUD.
    (6) Site Improvements. Describe any proposed on-site improvements, 
including infrastructure requirements, changes in streets, etc. 
Describe all public improvements needed to ensure the viability of the 
proposed project with a narrative description of the sources of funds 
available to carry out such improvements.
    (7) Site Conditions. Describe the conditions of the site to be used 
for replacement housing. Listing all potential contamination or danger 
sources (e.g. smells, fire heat, explosion and noise) that might be 
hazardous or cause discomfort to residents, PHA personnel, or 
construction workers. List potential danger sources, including 
commercial and industrial facilities, brownfields and other sites with 
potentially contaminated soil, commercial airports and military 
airfields. Note any facilities and/or activities within one mile of the 
proposed site.
    (8) Separability. If applicable, address the separability of the 
revitalized building(s) within the targeted project.
    (9) Proximity. If applicable, describe how two contiguous projects 
or scattered sites meet the NOFA requirements.
    b. Exhibit B. Verify that you have included information relating to 
the following:
    (1) PHAS, Maintenance, and SEMAP.
    (2) Development Capacity of Developer.
    (3) Development Capacity of Applicant.
    (4) Capacity of Existing HOPE VI Revitalization Grantees. This 
rating factor applies only to PHAs with existing HOPE VI Revitalization 
grants from fiscal years 1993-2002. Production achievement numbers will 
be taken from the HOPE VI Quarterly Progress Reports for the quarter 
ending December 31, 2004.
    (5) CSS Program Capacity.
    (6) Property Management Capacity.
    (7) PHA Plan.
    c. Exhibit C. Verify that you have included information relating to 
the following:
    (1) Need for Revitalization: Severe Physical Distress of the Public 
Housing Site.
    (2) Need for Revitalization: Impact of the Severely Distressed Site 
on the Surrounding Neighborhood.
    (3) Need for HOPE VI Funding (Obligation of Capital Funds). If you 
are a Moving to Work participant and are not required to enter 
obligations into LOCCS, provide a certification of your obligation rate 
of your FY 2000-2005 Capital Funds. If you are not a participant in 
MTW, you must provide information on your Capital Funds. The portion of 
the PHA Plan that lists the planned uses of your FY 2000-2005 Capital 
Funds should included in the application.
    (4) Previously-Funded Sites.
    (5) Need for Affordable, Accessible Housing in the Community.
    d. Exhibit D. Verify that you have included information relating to 
the following:
    (1) Resident and Community Involvement. Discuss your communications 
about your development plan and HUD communications with residents, 
community members, and other interested parties. Include the resident 
training attachment.
    e. Exhibit E. Verify that you have included information relating to 
the following: Endowment Trust. If you plan to place CSS funds in an 
Endowment Trust, state the dollar amount and percentage of the entire 
grant that you plan to place in the Trust.
    (1) Case Management and Needs Identification;
    (2) Transition to Housing Self-Sufficiency and Housing Self-
Sufficiency Time Frame;

[[Page 16575]]

    (3) Partner Commitments;
    (4) Quality and Results Orientation.
    f. Exhibit F. Verify that you have included information relating to 
the following:
    (1) Housing Choice Voucher Needs. State the number of Housing 
Choice Vouchers that will be required for relocation if this HOPE VI 
application is approved, both in total and the number needed for FY 
2005. Indicate the number of units and the bedroom breakout. As 
applicable, include a Housing Choice Voucher application to the 
application.
    (2) Relocation Plan. For additional guidance on developing a 
relocation plan, refer to CPD Notice 04-02 (``Guidance on the 
Application of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (URA), as amended, in HOPE VI 
Projects'').
    g. Exhibit G. Verify that you have included information relating to 
the following:
    (1) Accessibility;
    (2) Universal Design;
    (3) Fair Housing; and
    (4) Section 3.
    h. Exhibit H. Verify that you have included information relating to 
the following:
    (1) Unit Mix and Need for Affordable Housing;
    (2) Off-Site Housing; and
    (3) Homeownership Housing.
    i. Exhibit I. Verify that you have included information relating to 
the following:
    (1) Appropriateness of Proposal;
    (2) Appropriateness and Feasibility of the Plan;
    (3) Neighborhood Impact and Sustainability of the Plan;
    (4) Design;
    (5) Energy Star; and
    (6) Evaluation.
    j. Attachments 1 through 7. (1) These attachments are required in 
all applications. See the instructions for filling out the HOPE VI 
Application Data Forms, Appendix 1, at the end of this NOFA.
    k. Attachment 8 (1) This attachment is required in all 
applications. In addition to the instructions included in the HOPE VI 
Budget form, general guidance on preparing a HOPE VI budget can be 
found on the Grant Administration page of the HOPE VI web site, http://www.hud.gov/offices/pih/programs/ph/hope6.
    l. Attachment 9.
    (1) Form HUD-52799, ``TDC/Grant Limitations Worksheet''. This 
attachment is required in all applications. The Excel workbook will 
assist you in determining your TDC limits required in Section IV.B.5.j.
    m. Attachment 10. (1) Extraordinary Site Costs Certification. This 
attachment is applicable only if you request funds to pay for 
extraordinary site costs, outside the TDC limits.
    n. Attachment 11. (1) Cost Certification. This attachment is 
required in all applications.
    o. Attachment 12. (1) City Map. This attachment is required in all 
applications. Provide a to-scale city map that clearly identifies the 
following in the context of existing city streets, the central business 
district, other key city sites, and census tracts:
    (a) The existing development;
    (b) Replacement neighborhoods, if available;
    (c) Off-site properties to be acquired, if any;
    (d) The location of the Federally-designated Empowerment Zone or 
Enterprise Community (if applicable); and
    (e) Other useful information to place the project in the context of 
the city, county, or municipality and other revitalization activity 
underway or planned.
    (2) If you request funds for more than one project or for scattered 
site housing, the map must clearly show that the application meets the 
NOFA's site and unit requirements. If you have received a waiver to the 
electronic submission requirement, this map may be submitted on 8\1/
2\'' by 14'' paper.
    p. Attachment 13. (1) This attachment is required in all 
applications. The Developer Certification may be in the form of a 
letter.
    q. Attachment 14. (1) This attachment is required in all 
applications. The Property Management Certification may be in the form 
of a letter.
    r. Attachment 15. (1) Program Schedule. This attachment is required 
in all applications. Your program schedule MUST contain all timeframe 
requirements listed in the NOFA. Further, the program schedule MUST 
indicate the date on which the development proposal for EACH phase of 
the revitalization plan will be submitted to HUD.
    s. Attachment 16. (1) Certification of Severe Physical Distress. 
This attachment is required in all applications. In accordance with the 
NOFA, an engineer or architect must complete this certification. No 
backup documentation is required for this certification.
    t. Attachment 17. (1) Photographs of the Severely Distressed 
Housing. This attachment is required in all applications. Submit 
photographs of the targeted severely distressed public housing that 
illustrate the extent of physical distress.
    u. Attachment 18. (1) Neighborhood Conditions. This attachment is 
required in all applications. Documentation may include 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 other 
indications of neighborhood distress and/or disinvestment.
    v. Attachments 19 through 22. (1) These attachments are included in 
form HUD 52797, ``HOPE VI Revitalization Leverage Resources'' and are 
required in all applications.
    (2) Physical Development Resources. For each resource entered, you 
must submit backup documentation in Attachment 19.
    (3) CSS Resources. For each resource entered, submit backup 
documentation in Attachment 20.
    (4) Anticipatory Resources. For each resource entered, submit 
backup documentation in Attachment 21.
    (5) Collateral Resources. For each resource entered, submit backup 
documentation in Attachment 22.
    w. Attachment 23. (1) Form HUD-52785, ``Resident Training and 
Public Meeting Certification.'' This attachment is required in all 
applications. This form is available from Grants.gov.
    x. Attachment 24. (1) Commitments with CSS Providers. This 
attachment is required in all applications. Provide letters from CSS 
providers that have made commitments to participate in your CSS 
activities if you are awarded a HOPE VI Revitalization grant under the 
NOFA.
    y. Attachment 25. (1) HOPE VI Revitalization Relocation Plan 
Certification. Submit a certification that you have completed a HOPE VI 
Relocation Plan in conformance with the URA. This certification may be 
in the form of a letter. Refer to CPD Notice 04-02 for additional 
guidance, including a template.
    z. Attachment 26. (1) Completed Relocation Certification. If you 
have completed your relocation on or before the application submission 
date, include this attachment. This certification may be in the form of 
a letter.
    aa. Attachment 27. (1) Documentation of Site Control for Off-Site 
Public Housing. This is applicable if your plan includes off-site 
housing or other development. Provide evidence of site control for off-
site rental replacement units and acquired, or to be acquired, land.

[[Page 16576]]

    bb. Attachment 28. (1) Documentation of Environmental, and Site & 
Neighborhood Standards. This is applicable if your plan includes off-
site housing or other off-site development. Provide a certification 
that the site(s) acquired for off-site public housing meet 
environmental and site and neighborhood standards, as provided in the 
NOFA. This certification may be in the form of a letter.
    cc. Attachment 29. (1) Preliminary Market Assessment Letter. This 
is applicable if you include market rate housing in your application.
    dd. Attachment 30. (1) Certification of Zoning Approval or 
Documentation. This is applicable if your application includes off-site 
housing or other development. This attachment may be a certification or 
backup documentation.
    ee. Attachment 31. (1) Form HUD-52787, ``HOPE VI Revitalization 
Project Readiness Certification''. This attachment is required in all 
applications. This form is available from grants.gov and allows you to 
certify to several thresholds.
    ff. Attachment 32. (1) Current Site Plan. This attachment is 
required in all applications. The Site Plan shows the targeted public 
housing site's various buildings and identifies which buildings are to 
be rehabilitated, demolished, or disposed of. Demolished buildings 
should be shown and labeled as such.
    gg. Attachment 33. (1) Photographs of Architecture in the 
Surrounding Community. This attachment is required in all applications. 
Provide photographs to demonstrate that your plan conforms to the 
Design requirements of the NOFA.
    hh. Attachment 34. (1) Conceptual Site Plan. This attachment is 
required in all applications. The Conceptual Site Plan indicates where 
your plan's proposed construction and rehabilitation activities will 
take place and any planned acquisition of adjacent property and/or 
buildings.
    ii. Attachment 35. (1) Conceptual Building Elevations. This 
attachment is required in all applications. Include building elevation 
drawings for the various types of your proposed housing.
    jj. Attachment 36. (1) Evaluation Commitment Letter(s). This 
attachment is required in all applications. Provide the commitment 
letter(s) for your CSS program evaluation. The letter should contain 
enough information for HUD to compare the commitment to the evaluation 
described in Exhibit I.
    kk. Attachment 37. (1) Portions of the PHA or MTW Plan. This 
attachment is required, and should be included in all applications. The 
portion of the PHA Plan that you include should support your narrative 
in Exhibit B and cover planned uses of Capital Fund Program funding and 
inclusion of the targeted project's revitalization.
    ll. Attachment 38. (1) Form HUD-96010, ``Logic Model.'' This 
attachment is required in all applications. This form is available from 
Grants.gov. Fill in the planning information requested, Columns 1-5. 
Columns 6-9 will be filled out during and at the end of the grant term. 
(See Section VI.C.2. for post award reporting instructions.)
    mm. Attachment 39. (1) Form HUD-27300, ``America's Affordable 
Communities Initiative.'' This attachment is required in all 
applications. This form is available from Grants.gov.
    nn. Attachment 40. (1) HOPE VI Revitalization Applicant 
Certification. This attachment is required in all applications. This 
form is available from Grants.gov.
    (2) Note that these certifications (4 page document) must be signed 
by the Chairman of the Board of the PHA, NOT the Executive Director.
    oo. Attachment 41. (1) Standard Forms and Certifications. These 
documents include:
    (a) Disclosure of Lobbying Activities (SF-LLL), as applicable
    (b) Form HUD-2880, ``Applicant/Recipient Disclosure/Update 
Report.'' This form is available from Grants.gov.
    (c) Form HUD-52515, ``Funding Application, Section 8 Tenant-Based 
Assistance, Rental Certificate Program, Rental Voucher Program.'' This 
form is available from Grants.gov. It is applicable only if you are 
requesting Housing Choice Vouchers that are related to your proposed 
plan.

C. Submission Dates and Times

1. Application Submission Timeframes
    a. Application Submission Date. Revitalization grant applications 
are to be submitted to HUD on June 29, 2005 through Grants.gov or, in 
the case of applicants that have been granted a wavier to the 
electronic submission requirement, through the United States Postal 
Service (USPS) or an overnight mail service. See Sections IV.F. of this 
NOFA and the General Section for application, submission and timely 
receipt requirements.
2. Electronic Required Submission Date and Form of Acceptance
    All applications must be received by Grants.gov by 11:59:59 p.m. 
Eastern time on June 29, 2005.
    Proof of timely submission is automatically recorded by Grants.gov. 
An electronic time stamp is generated within the system when the 
application has been successfully received. The applicant will receive 
an acknowledgement of receipt and a tracking number from Grants.gov 
with the successful transmission of their application. Applicants 
should print this receipt and save it, along with facsimile receipts 
for information provided by facsimile, as proof of timely submission. 
When HUD successfully retrieves the application from Grants.gov, HUD 
will provide an electronic acknowledgment of receipt to the e-mail 
address provided on the SF-424. Proof of Timely submission shall be the 
date and time that Grants.gov receives your application submittal and 
the date HUD receives those portions of your application submitted by 
facsimile. All facsimile transmissions must be received by the 
application submission date and time.
    Applications received by Grants.gov, after the established 
submission deadline for the program will be considered late and will 
not be considered for funding by HUD. Similarly, applications will be 
considered late if information submitted by facsimile as part of the 
application has not received by HUD by the established submission 
deadline. Please take into account the transmission time required for 
submitting your application via the Internet and the time required to 
electronically fax any related documents. HUD suggests that applicants 
submit their applications during the operating hours of the Grants.gov 
Support Desk, so that if there are questions concerning transmission, 
operators will be available to walk you through the process. Submitting 
your application during the Support Desk hours will also ensure that 
you have sufficient time for the application to complete its 
transmission prior to the application deadline.
    Applicants using dial-up connections should be aware that 
transmission should take some time before Grants.gov receives it. 
Grants.gov will provide either an error or a successfully received 
transmission message. The Grants.gov Support desk reports that some 
applicants abort the transmission because they think that nothing is 
occurring during the transmission process. Please be patient and give 
the system time to process the application. Uploading and transmitting 
many files particularly electronic forms with associated XML schemas 
will take some time to be processed.

[[Page 16577]]

3. Submission Date, Address, Delivery Requirements and Acceptance for 
Applicants That Have Received Waivers That Allow Submission of a Paper 
Copy Application
    The following applies ONLY if you are granted a waiver to the 
electronic application submission requirements.
    a. Method of Delivery. Applicants granted a wavier to the 
electronic submission requirement must use the United States Postal 
Service (USPS) or overnight mail service (which provide written receipt 
of delivery date) to submit their applications to HUD. Hand-carried and 
courier delivered applications will not be accepted.
    b. Submission Date and Time. Applications must be received by 4 pm 
on June 29, 2005. Applications will be considered late and ineligible 
to receive funding if not received on or before the application 
submission date and time, regardless of the postmark date.
    c. 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.
    d. 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 Seventh Street, SW., 
Washington, DC 20410-5000. 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.
    e. Wrong Address. Applications mailed to the wrong location or 
office designated for receipt of the application, which result in the 
designated office not receiving the application in accordance with the 
requirements for timely submission, will result in the application 
being considered late. Late applications will not receive funding 
consideration. HUD will not be responsible for directing packages to 
the appropriate office(s).
    f. 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 submission 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.
    g. No Facsimiles or Videos. With the exception of third party 
documents submitted via electronic facsimile (See Section IV.F. of the 
General Section), 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 General Section. Also, videos submitted as part 
of an application will not be viewed.
    h. Proof of timely submission. Proof of timely submission for all 
applications, regardless of whether they are delivered through USPS or 
overnight mail services 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.
    i. 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 website 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 FY-2005 must be obligated on or before September 30, 2006. 
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 FY-2005 HOPE VI funds must be expended by September 30, 2011. Any 
funds that are not expended by that date will be placed in an expired 
account, and will be available only for the purposes of liquidating 
obligations properly chargeable to that account prior to its expiration 
and of making legitimate obligation adjustments.
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 FY-2005 NOFA will be considered for 
funding.
3. Grant Amount Limitations
    a. Requested Amount. See Section II of this NOFA for details.
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), or 
extending Notice) 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.

[[Page 16578]]

TDC definitions and limits in the final rule are summarized as follows:
    (1) The total cost of development, which includes relocation costs, 
is limited to the sum of:
    (a) Up to 100 percent of HUD's published TDC limits for the costs 
of demolition and new construction, multiplied by the number of HOPE VI 
public housing replacement units; and
    (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 Standards'', 
Section III.C.4.h. 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 (a) 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.l. 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 General Section, 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 HUD's HOPE 
VI 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

    This section provides the application submission and receipt 
instructions for HUD program applications. Please read the following 
instructions carefully and completely, as failure to comply with these 
procedures may disqualify your application.
    1. Electronic Delivery. HUD requires applicants to submit their 
applications electronically through http://www.grants.gov. HUD will not 
accept or consider any applications that have been submitted through 
any other method, unless a waiver is granted.
    2. Electronic Signature. Applications submitted through grants.gov 
constitute submission as electronically signed applications. The 
registration and e-authentication process establishes the Authorized 
Organization Representative. When you submit the application through 
Grants.gov, the name of your authorized organization representative on 
file will be inserted into the signature line of the application. 
Applicants must register the individual who is able to make legally 
binding commitments for the applicant organization as the Authorized 
Organization Representative.
    3. Instructions. Instructions on how to submit an electronic 
application to HUD via Grants.gov:
    a. Applying using Grants.gov. Grants.gov has a full set of 
instructions on how to apply for funds on its Web site at http://www.grants.gov/CompleteApplication. The following provides simple 
guidance on what you will find on the http://www.grants.gov/Apply site. 
Applicants are encouraged to read through the page entitled, ``Complete 
Application Package'' before getting started. Grants.gov allows 
applicants to download the application

[[Page 16579]]

package, instructions and forms that are incorporated in the 
instructions, and work off line. In addition to forms that are part of 
the application instructions, there will be a series of electronic 
forms that are provided utilizing a PureEdge reader. The PureEdge 
Reader is available free for download from the Grants.gov/Get Started 
site. The PureEdge Reader allows applicants to read the electronic 
files in a form format so that they will look like any other Standard 
or HUD form. The PureEdge forms have content sensitive help. To use 
this feature you will need to click on the icon at the top of the page 
that features an arrow with a question mark. This engages the content 
sensitive help for each field you will need to complete on the 
electronic form. The PureEdge forms can be downloaded and saved on your 
hard drive, network drive(s), or CDs. Because of the size of the 
application, HUD recommends downloading the application to your 
computer hard drive.
    The instructions include this NOFA and any required forms that have 
not been converted into PureEdge forms. The instructions will also 
include a checklist to ensure that you are provided all the required 
information for submitting your application. Please review the 
checklist in the program section to ensure that your application 
contains all the required materials.
    4. Submission of Third Party Letters, Certifications or Narrative 
Statements. In addition to forms, many of the NOFAs require the 
submission of other documentation such as third party letters, 
certifications, or program narrative statements. This section discusses 
how you should submit this additional information electronically as 
part of your application:
    (1) Narrative Statements to the Factors for Award. If you are 
required to submit narrative statements, you should submit them as an 
electronic file in ASCII text format. Each response to a Factor for 
Award should be developed as a separate file labeled with the 
appropriate factor name, e.g. Factor 1 Capacity and submitted as part 
of your electronic application.
    (2) Third Party Letters, Certifications Requiring Signatures, and 
Other Documentation. Applicants required to submit documentation from 
organizations providing matching or leveraging funds; documentation of 
501(c)(3) status or incorporation papers; documents that support the 
need for the program or Memoranda of Understanding (MOUs) have the 
following two options:
    (a) Scanning Documents to Create Electronic Files. Third party 
documentation can be scanned and saved as separate electronic files. 
Electronic files must be labeled so the reader will know what the file 
contains. Match or leveraging letters can be scanned into a single 
folder or the applicant can create a separate file for each scanned 
letter and label them accordingly. All scanned files should be placed 
together in a zipped folder and then attached to the application 
package submitted to grants.gov as part of the application submission; 
or
    (b) Electronic Facsimile Required Documentation. Applicants that do 
not have scanning equipment available, may submit the required 
documentation to HUD via facsimile (fax). The electronic facsimile 
method may only be used to submit attachments that are part of your 
electronic application. HUD will not accept entire applications via 
fax. Applications submitted entirely via fax will be disqualified.
    To submit documents using the electronic facsimile method, 
applicants must use form HUD-96011, Facsimile Transmittal, which is a 
cover page for the faxed materials. The form HUD-96011 is an electronic 
form and is part of the applicant's downloaded electronic application 
obtained from www.grants.gov. Applicants must fax their information to 
the following fax number: 800-HUD-1010. Each document must be faxed as 
a separate submission to avoid fax transmission problems. When faxing 
several documents, applicants must use the Form HUD-96011 as the cover 
for each document (e.g. Letter of Matching or Leveraging funds, 
Memorandum of Understanding, Certification of Consistency with the 
Consolidated Plan, etc.).
    Your facsimile machine should provide you with a record of whether 
your transmission was received by HUD. If you get a negative response 
or a transmission error, you should resubmit the document until you 
confirm that HUD has received your transmission. HUD will not 
acknowledge that a facsimile was received successfully. HUD will 
electronically receive the facsimile, read it with an optical character 
reader and attach it to the application submitted via Grants.gov 
electronic facsimile transmissions may be sent at any time before the 
application submission date. HUD will store the information and attach 
it to the electronic application when HUD receives it from Grants.gov.
    (c) Submissions using other File Formats. If you are required to 
submit files in formats such as CAD (Computer Aided Design) files of 
architectural drawings and blueprints, or pictures, you should attach 
these as electronic files as part of the zipped folder and submit them 
with your application transmission.
    5. Customer Support. The grants.gov website provides customer 
support via (800) 518-GRANTS (this is a toll-free number) or through e-
mail at grants.gov">support@grants.gov. The customer support center is open from 7 
a.m. to 9 p.m. Eastern time, Monday through Friday, except federal 
holidays, to address grants.gov technology issues. For technical 
assistance to program related questions, contact the number listed in 
Section VII of this NOFA.
    6. Waiver of Electronic Submission Requirement. HUD will only 
accept electronic applications submitted through www.grants.gov unless 
the applicant has received a waiver from the Department. HUD 
regulations at 24 CFR 5.110, permit waivers of regulatory requirements 
to be granted for cause. If you are unable to submit your application 
electronically, you may, in writing, request a waiver from this 
requirement. Your waiver request must state the basis for the request 
and explain why electronic submission is not possible. The basis for 
waivers for cause may include but are not limited to: (a) Lack of 
available internet access in the geographic location in which the 
applicant is located or, (b) the physical disability of the applicant 
prevents the applicant from accessing or responding to the electronic 
application.
    The waiver request should also include an e-mail and/or name and 
mailing address where responses can be directed. Applicants must submit 
waiver requests to the Assistant Secretary for Public and Indian 
Housing, who is responsible for the program under which you are seeking 
funding. To ensure time for processing, the waiver request must be 
submitted to HUD in writing at least thirty days prior to the 
application submission date.
    To avoid a delay in the process, waiver requests should be sent by 
United States Postal Service Express Mail. You, the applicant should 
retain a receipt for the mailing showing the date submitted to the 
Postal Service. HUD will acknowledge receipt of the waiver request by 
e-mail, if an e-mail address is provided, or by United States Postal 
Service Express Mail or other means available. HUD will not make 
determinations or respond to waiver requests via the telephone. Each 
waiver request will be reviewed and a determination made to the 
applicant, indicating whether or not the waiver has been granted. In 
the event a waiver is granted, the submission date for the mailed 
application delivery shall not be

[[Page 16580]]

later than the submission date for electronic applications. Applicants 
receiving a waiver will be expected to follow the submission 
instructions immediately below.
    a. Submission Instructions for Applicants Receiving a Waiver to 
Electronic Submission. Applicants receiving a waiver of the electronic 
submission requirements must submit their complete applications in 
paper copy as follows:
    (1) Submission Using the United States Postal Service. HUD will no 
longer accept hand deliveries of applications. Applicants who receive a 
waiver and are therefore allowed to submit paper applications must 
submit them via the United States Postal Service using Express Mail or 
an overnight mail service (which provides a written record of delivery 
date).
    7. Timely Receipt Requirements and Proof of Timely Submission.
    a. Electronic Submission. All applications must be received by 
http://www.grants.gov by 11:59:59 p.m. Eastern time on the established 
submission date for this NOFA.
    Proof of timely submission is automatically recorded by Grants.gov. 
An electronic time stamp is generated within the system when the 
application is successfully received by Grants.gov. The applicant will 
receive an acknowledgement of receipt and a tracking number from 
grants.gov with the successful transmission of their application. 
Applicants should print this receipt and save it, along with facsimile 
receipts for information provided by facsimile, as proof of timely 
submission. When HUD successfully retrieves the application from 
Grants.gov, HUD will provide an electronic acknowledgment of receipt to 
the e-mail address provided on the SF 424. Proof of Timely submission 
shall be the date and time that grants.gov receives your application 
submittal and the date HUD receives those portions of your application 
submitted by facsimile. All facsimile transmissions must be received by 
the application submission date and time.
    Applications received by Grants.gov, after the established 
submission date for the program will be considered late and will not be 
considered for funding by HUD. Similarly, applications will be 
considered late if information submitted by facsimile as part of the 
application is not received by HUD by the established submission date. 
Please take into account the transmission time required for submitting 
your application via the Internet and the time required to submit any 
related documents via electronic facsimile. HUD suggests that 
applicants submit their applications during the operating hours of the 
grants.gov Support Desk, so that if there are questions concerning 
transmission, operators will be available to walk you through the 
process. Submitting your application during the Support Desk hours will 
also ensure that you have sufficient time for the application to 
complete its transmission prior to the application deadline.
    Applicants using dial-up connections should be aware that 
transmission should take some time before grants.gov receives it. 
Grants.gov will provide either an error or a successfully received 
transmission message. The grants.gov Support desk reports that some 
applicants abort the transmission because they think that nothing is 
occurring during the transmission process. Please be patient and give 
the system time to process the application. Uploading and transmitting 
many files, particularly electronic forms with associated XML schemas, 
will take some time to be processed.
    b. Late applications. Late applications, whether received 
electronically or in hard copy will not receive funding consideration. 
HUD will not be responsible for directing or forwarding applications to 
the appropriate location. Applicants should pay close attention to 
these submission and timely receipt instructions as they can make a 
difference in whether HUD will accept your application for funding 
consideration.
    c. No Facsimiles of Entire Application. HUD will not accept fax 
transmissions from applicants who receive a waiver to submit a paper 
copy application. Paper applications must be complete and submitted in 
their entirety, via the USPS Express Mail.
    a. 5. General Section References. The following sub-sections of 
Section IV. of the General Section 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--27 Points Total
    a. Your Team. 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.
    b. Development Team Capacity--6 points
    (1) You will receive up to 6 points if your application 
demonstrates that:
    (a) Your developer or other team members have extensive, recent 
(within the last five years), and successful experience in planning, 
implementing, and managing physical development, financing, leveraging, 
and partnership activities that are comparable in character, scale, and 
complexity to your proposed revitalization activities;
    (b) 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.
    (c) You propose development using low-income tax credits, and you, 
your developer, or other team members have relevant tax credit 
experience; and
    (d) 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.
    (2) You will receive up to 4 points if your developer or other team 
members have some but not extensive experience in the factors described 
above.
    (3) You will receive zero 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 up to 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.

[[Page 16581]]

    (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 award and post-award dates in Section IV.B.4.d. of 
this NOFA; 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 up to 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 up to 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 1993-2002. 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 FY2003 or 
FY2004, 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 FY 1993-1998:
  Less than 100 Percent......................................          5
Grants Awarded in FY 1999:
  90-100 Percent.............................................          0
  80-89 Percent..............................................          1
  75-79 Percent..............................................          2
  70-74 Percent..............................................          3
  65-69 Percent..............................................          4
  Less than 65 Percent.......................................          5
Grants Awarded in FY 2000:
  80-100 Percent.............................................          0
  70-79 Percent..............................................          1
  60-69 Percent..............................................          2
  50-59 Percent..............................................          3
  40-49 Percent..............................................          4
  Less than 40 Percent.......................................          5
Grants Awarded in FY 2001:
  60-100.....................................................          0
  50-59 Percent..............................................          1
  40-49 Percent..............................................          2
  30-39 Percent..............................................          3
  20-29 Percent..............................................          4
  Less than 20 Percent.......................................          5
Grants Awarded in FY 2002:
  25-100 Percent.............................................          0
  20-24 Percent..............................................          1
  15-19 Percent..............................................          2
  10-14 Percent..............................................          3
  5-9 Percent................................................          4
  Less than 5 Percent........................................          5
------------------------------------------------------------------------

    e. CSS Program Capacity--3 points.
    See Sections I.D.10., and III.C.4.l. and m., 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 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 up to 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 has 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.
    (3) Property Management Plan--2 points.
    (a) You will receive up to 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

[[Page 16582]]

    (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 or MTW 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 or MTW Annual plan (whether 
approved by HUD or pending approval). In order to qualify as 
``incorporated'' under this factor, your PHA or MTW 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 or MTW 
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 an Overall High Performer for your 
most recent PHAS review as of the application submission date, you will 
receive 2 points.
    (2) If you have been rated as an Overall Standard Performer for 
your most recent PHAS review as of the application submission date, 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 as of the application 
submission date, you will receive 0 points.
    (4) For this rating factor, MTW PHA applicants will be rated on 
their compliance with their MTW Agreements.
    (a) If you are in compliance with your MTW Agreement, you will 
receive 2 points.
    (b) If you are not in compliance with your MTW Agreement, you will 
receive zero points.
    i. Regular Maintenance--2 points.
    (1) Unless the targeted project is vacant, your normal practice 
should be to continue regular maintenance. HUD will measure your most 
recent PHAS physical inspection Prevalence Report scores for the 
maintenance defects that are included in the ``TOP 20'' and compare it 
to your previous Prevalence Report scores for the same maintenance 
defects.
    (2) Vacant Targeted Project. You will receive 2 points if your 
application demonstrates that, on the application submission date, the 
targeted project was vacant.
    (3) Occupied Targeted Project.
    (a) You will receive 2 points if your Prevalence Report score for 
the above ``TOP 20'' maintenance defects has improved.
    (b) You will receive 0 points if your Prevalence Report score for 
the above ``TOP 20'' maintenance defects has not improved.
    (4) MTW PHA. For this rating factor, MTW PHA applicants will be 
rated on their compliance with their MTW Agreements.
    (a) If you are in compliance with your MTW Agreement, you will 
receive 2 points.
    (b) If you are not in compliance with your MTW Agreement, you will 
receive zero points.
    j. Section 8 Management Assessment Program (SEMAP)--2 points.
    (1) If you have been rated as a High Performer for your most recent 
SEMAP rating as of the application submission date, you will receive 2 
points.
    (2) If you have been rated as Standard for your most recent SEMAP 
rating as of the application submission date, you will receive 1 point.
    (3) If you have been rated as Troubled for your most recent SEMAP 
rating as of the application submission date, you will receive zero 
points.
    (4) For this rating factor, MTW PHA applicants will be rated on 
their compliance with their MTW Agreements.
    (a) If you are in compliance with your MTW Agreement, you will 
receive 2 points.
    (b) If you are not in compliance with your MTW Agreement, you will 
receive zero points.
2. Rating Factor: Need--24 Points Total
    a. 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 up to 3 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 up to 3 points if your application 
demonstrates that there are poor soil conditions, inadequate drainage, 
deteriorated laterals and sewers, and inappropriate topography.
    (c) You will receive up to 4 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 (less than 5 percent of the units are accessible), 
entranceways, and common areas.
    b. 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 up to 3 Points if your application 
demonstrates that the project has a significant impact on the 
surrounding neighborhood, as documented by each item listed above.
    (3) You will receive up to 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

[[Page 16583]]

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 FY 2000-
2005 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 submission 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 to 90 
percent of the amount of HOPE VI funds requested.
    (6) You will receive zero Points if your available balance is more 
than 90 percent of the amount of HOPE VI funds requested.
    d. 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 or public housing occupancy rates, whichever of the 
two reflects the most need. In figuring the Housing Choice Voucher 
utilization rate, determine and provide the percentage of HCV units out 
of the total number authorized or the percentage of HCV funds expended 
out of the total amount authorized, whichever percentage is higher. In 
figuring the public housing occupancy rate, provide the percentage of 
units occupied out of the total in your federal public housing 
inventory, excluding the targeted public housing site. You should base 
your calculation only 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 
the higher of:
    (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.
    (c) HUD will use the higher of the two rates to determine your 
score.
    (4) You will receive 2 Points if your application demonstrates that 
the higher of:
    (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.
    (c) HUD will use the higher of the two rates to determine your 
score.
    (5) You will receive 1 Point if your application demonstrates that 
the higher of:
    (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.
    (c) HUD will use the higher of the two rates to determine your 
score.
    (6) You will receive 0 Points if both the utilization rate of your 
Housing Choice Voucher program and the occupancy rate of your public 
housing inventory are 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. There are four 
types of Leverage: Development and CSS, as described in ``Program 
Requirements,'' Section III.C.4.e. of this NOFA, and Anticipatory, and 
Collateral as described in this rating factor. Each resource may be 
used for only one leverage category. Any resource listed in more than 
one category will be disqualified from all categories. If leverage 
sources and amounts are not documented in accordance with Sections 
III.C.4. and IV.B.6.c. of this NOFA, they will not be counted toward 
your leverage amounts. In determining Leverage ratios, HUD will include 
as Leverage the match amounts that are required by Section III.B. of 
this NOFA.
    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. See 
Section IV.B.6. of this NOFA for documentation requirements.
    (1) LIHTC. Only LIHTC commitments that have been secured as of the 
application submission date 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 finance agency) will not be 
counted as leverage for scoring under this section. Only tax credits 
that have been reserved specifically for revitalization performed 
through this NOFA will be counted as development leverage.
    (2) Private mortgage-secured loans and other debt.
    (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.
    (3) You will receive 7 Points if the ratio of the amount of HOPE VI 
funds

[[Page 16584]]

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.
    (4) You will receive 6 Points if the ratio is between 1:2.50 and 
1:2.99
    (5) You will receive 5 Points if the ratio is between 1:2.0 and 
1:2.49.
    (6) You will receive 4 Points if the ratio is between 1:1.50 and 
1:1.99.
    (7) You will receive 3 Points if the ratio is between 1:1.0 and 
1:1.49.
    (8) You will receive 2 Points if the ratio is between 1:0.50 and 
1:0.99.
    (9) You will receive one Point if the ratio is between 1:0.25 to 
1:0.49.
    (10) 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) Note that in order to count as leverage, CSS contributions 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.
    (2) 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. 
Note that wages projected to be paid to residents through jobs, or 
projected benefits (e.g., health/insurance/retirement benefits) related 
to projected resources to be provided by CSS partners are not sources 
of leverage. 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.
    (3) You will receive 4 Points if the ratio is between 1:1.75 and 
1:1.99.
    (4) You will receive 3 Points if the ratio is between 1:1.5 and 
1:1.749.
    (5) You will receive 2 Points if the ratio is between 1:1.25 and 
1:1.49.
    (6) You will receive one Point if the ratio is between 1:1 and 
1:1.249.
    (7) 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. For Anticipatory Resources ratios, ``HOPE VI 
funds requested for physical development activities'' is defined as 
your total requested amount of funds minus your requested CSS, 
administration amounts, and relocation. HUD will presume that your 
combined CSS, administration and relocation amounts are the total of 
Budget Line Items 1408 (excluding non-CSS Management Improvements), 
1410, and 1495 on the form HUD-52825-A, ``HOPE VI Budget'' that is 
included in your application.
    (1) You will receive 2 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities to the amount of 
your documented anticipatory resources is 1:0.1 or higher.
    (2) You will receive 0 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities, 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 1, 2010. 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 one 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 to 
affected residents and other interested parties, e.g., 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.

[[Page 16585]]

5. Rating Factor: Community and Supportive Services--13 Points Total
    a. CSS Program Requirements. See Section III.C.4.l. and m. 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 one 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--5 points. You will 
receive up to 5 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 5 Points if your application 
demonstrates that your CSS Program includes and addresses all three 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; and
    (c) Specifically addresses the grassroots, community-based and 
faith-based organizations, etc. that will join you in the endeavor.
    (2) You will receive up to 2 Points if your CSS Program includes 
and addresses at least two of the above three items (a) through (c) 
above.
    (3) You will receive 0 Points if your CSS Program includes and 
addresses less than two of the above items (a) through (c) above.
    e. Housing Self-Sufficiency Time Frame--2 points. (1) You will 
receive 2 points if you demonstrate that you plan to move HOPE VI 
public housing families not headed by an elderly or disabled person to 
other public housing if they have not attained housing self-
sufficiency, i.e., do not have the ability to transition out of public 
housing, within five (5) years after the date that they occupied their 
units.
    (2) You will receive 1 point if you demonstrate that you plan to 
move HOPE VI public housing families not headed by an elderly or 
disabled person to other public housing if they have not attained 
housing self-sufficiency, i.e., do not have the ability to transition 
out of public housing, within ten (10) years after the date that they 
occupied their units.
    (3) You will receive 0 points if you do not demonstrate that you 
plan to move HOPE VI public housing families not headed by an elderly 
or disabled person to other public housing if they have not attained 
housing self-sufficiency, i.e., do not have the ability to transition 
out of public housing, within at least ten (10) years after they have 
occupied their units.
    f. Partner Commitments--1 point. You will receive one Point if you 
provide letters from a variety of experienced organizations and service 
providers that represent strong relationships and commitments to 
participate in your CSS activities and accomplish your CSS goals of the 
program.
    g. 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. of this NOFA for Relocation and Relocation 
Plan requirements. For all applicants, whether you have completed, or 
have yet to complete, relocation of all residents of the targeted 
project, your HOPE VI Relocation Plan must include the three goals set 
out in Section 24 of the 1937 Act, as described in Sections a.(1)(a), 
(b) and (c) below. a. You will receive up to 5 Points for this Factor 
if:
    (1) Your Relocation plan:
    (a) Includes a description of specific activities that have 
minimized, 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;
    b. You will receive up to 4 Points for this Factor if: Your 
Relocation Plan complies with only two of the goals in (a) through (c) 
above.
    c. You will receive up to 2 Points for this Factor if: Your 
Relocation Plan complies with only one of the requirements in (a) 
through (c) above.
    d. You will receive 0 Points for this Factor if: (1) Your 
Relocation Plan does not comply with any of the requirements in (a) 
through (c) above; or (2) 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--5 Points Total
    a. FHEO Disability Issues--3 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 accessible units for all eligible populations ranging 
from one-bedroom units for non-elderly single persons with disabilities 
through units in all bedroom sizes to be provided.;
    (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

[[Page 16586]]

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--1 Point.
    (a) You will receive 1 Point 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
    (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 Affirmative Marketing--1 Point Total. (1) Fair 
Housing--1 Point.
    (a) You will receive one 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 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.
    c. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3)--1 Point. (1) 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.
    (2) 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 (1) 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:
    (a) Low- and very low-income persons, particularly those who are 
recipients of government assistance for housing, and
    (b) Business concerns which provide economic opportunities to low- 
and very low-income persons.
    (3) You will receive 0 Points if your plan to implement Section 3 
does not meet the standards listed in Section (1) 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--Up to 3 Points
    (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 on-
site and off-site housing units where there are affordable-housing use 
restrictions on the unit, e.g., public housing, project-based HCV 
(Section 8) units, LIHTC units, HOME units, affordable homeownership 
units, etc.
    (b) ``public housing'' is defined as rental units that will be 
subject to the ACC.
    (2) Unit Mix and Need for Affordable Housing.
    (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

[[Page 16587]]

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) For purposes of this factor, HUD will determine whether you 
need project-based affordable housing by using your Housing Choice 
Voucher program utilization rate or public housing occupancy rate, 
whichever of the two reflects the least need. In figuring the Housing 
Choice Voucher utilization rate, determine and provide the percentage 
of HCV units out of the total number authorized or the percentage of 
HCV funds expended out of the total amount authorized, whichever 
percentage is higher. In figuring the public housing occupancy rate, 
provide the percentage of units occupied out of the total in your 
federal public housing inventory, excluding the units in the targeted 
project. You should base your calculation only 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) Scoring when there will be No Need for More Affordable Housing 
after the Targeted Project is Demolished--1 Point.
    (a) You will receive 1 Point for this factor if your application 
demonstrates that either:
    (i) The utilization rate of your Housing Choice Voucher program is 
less than 95 percent; or
    (ii) The occupancy rate of your public housing inventory is less 
than 95 percent.
    (iii) If either (a) or (b) above is less than 95 percent, the other 
percentage will be disregarded.
    (4) Scoring when there will be Need for More Affordable Housing 
after the Targeted Project is Demolished--up to 3 Points.
    (a) For this factor, HUD considers you in need of project-based 
affordable housing if both:
    (i) The utilization rate of your Housing Choice Voucher program is 
95 percent or more; and
    (ii) The occupancy rate of your public housing inventory is 95 
percent or more.
    (iii) If either (i) or (ii) above are less than 95 percent, you do 
not need affordable housing. You qualify for (3) above, not this 
section (4).
    (b) 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 submission 
date;
    (c) You will receive 3 Points if your application demonstrates that 
the number of project-based affordable units in your plan is 125 
percent or more of the number of public housing units that the targeted 
project contained on the application submission date;
    (iv) You will receive 2 Points if your application demonstrates 
that the number of project-based affordable units in your plan is 110 
to 124 percent of the number of public housing units that the targeted 
project contained on the application submission date
    (v) You will receive 1 Point if your application demonstrates that 
the number of project-based affordable units in your plan is 100 to 109 
percent of the number of public housing units that the targeted project 
contained on the application submission 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 submission 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 Point
    (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) Scoring.
    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.n.(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

[[Page 16588]]

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--26 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:
    (a) Is 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) Is marketable, in the context of local conditions;
    (c) Is financially feasible, as demonstrated in the financial 
structure(s) proposed in the application; and
    (d) Fulfills the needs that your application demonstrated for 
Rating Factor 2.
    (2) You will receive 3 points if your application only moderately 
demonstrates the criteria of (1)(a)-(d) above.
    (3) You will receive zero Points if your application does not 
demonstrate the criteria of (1)(a)-(d) above.
    c. Neighborhood Impact and Sustainability of the Plan--5 Points
    (1) You will receive up to 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 up to 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) 
through (d) 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) through (d) 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.
    (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
    (1) You will receive up to 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 one 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 in (1) above.
    (3) You will receive 0 Points if your proposed design is 
perfunctory or otherwise does not address the elements in (1) above. 
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. Energy Star--1 Point
    (1) Promotion of Energy Star compliance is a HOPE VI Revitalization 
program requirement. See Section III.C.4.g. of this NOFA.
    (2) You will receive 1 Point if your application demonstrates that 
you will:
    (a) Use Energy Star labeled products;
    (b) Promote Energy Star design of replacement units; and
    (c) Include Energy Star in homeownership counseling.
    (2) You will receive 0 Points if your application does not 
demonstrate that you will perform (a) through (c) above.
    g. 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

[[Page 16589]]

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 zero 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/
parish 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.
    (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.
    (5) Applicants must submit the required information to receive 
points for this policy priority.

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 submission 
date. After the application submission 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--Cure Period. The 
subsection entitled, ``Corrections to Deficient Applications,'' in 
Section V.B.4. of the General Section is incorporated by reference and 
applies to this NOFA. 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 General Section 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 129.
    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 FY2005 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.

[[Page 16590]]

7. Remaining Funds
    a. HUD reserves the right to reallocate remaining funds from this 
NOFA to other eligible activities under Section 24 of the 1937 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 General Section 
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. Award Letter. The notice of award letter is signed by the 
Assistant Secretary for Public and Indian Housing (grants officer) and 
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, form HUD-
1044. It is effective on the date of HUD's signature, which is the 
second 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. General Section References. The following sub-section of Section 
VI.A. of the General Section is hereby incorporated by reference: a. 
Adjustments to Funding.

B. Administrative and National Policy Requirements

    1. 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 III.C.1.i. of this NOFA and the 
Rating Factor requirement at Section V.A.1.c. of this NOFA.
    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.
    2. 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.l. of this 
NOFA.
    3. 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.
4. 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.
5. Match
    a. Irrevocably Committed Match Donations and Leverage Resources. 
After award, during review of grantee mixed-finance, development or 
homeownership proposals, HUD will evaluate the irrevocable nature of 
Match and Leverage resources. During its evaluation, HUD will assess 
the conditions precedent to the availability of the funds to the 
grantee. HUD will assess the availability of the participating 
party(ies)'s financing, the amount and source of financing committed to 
the proposal by the participating party(ies), and the irrevocability of 
those funds. HUD may require an opinion of the PHA's and the owner 
entity's counsel (or other party designated by HUD) attesting that 
counsel has examined the availability of the participating party(ies)'s 
financing, and the amount and source of financing committed to the 
proposal by the participating party(ies), and has determined that such 
financing has been

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irrevocably committed by the participating party(ies) for use in 
carrying out the proposal, and that such commitment is in the amount 
required under the terms of the proposal.
    b. Evidence of Use. 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.
    c. Grantee Enforcement. 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.
6. LOCCS Requirements
    The grantee must record all obligations and expenditures in LOCCS.
7. 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 (C) 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.
8. 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.
9. 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.
10. Final Audit
    Grantees are required to obtain a complete final closeout audit of 
the grant's financial statements by a certified public accountant 
(CPA), in accordance with generally accepted government audit 
standards. A written report of the audit must be forwarded to HUD 
within 60 days of issuance. Grant recipients must comply with the 
requirements of 24 CFR part 84 or 24 CFR part 85 as stated in OMB 
Circulars A-110, A-87, and A-122, as applicable.
11. 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.

[[Page 16592]]

    (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. The goals and outcomes that you include in the Logic Model 
should reflect your major activities and accomplishments under the 
grant. For example, you would include unit construction, demolition, 
etc. from the ``bricks-and-mortar'' portion of the grant. As another 
example, for the CSS portion of the grant, you may include the number 
of jobs created or the number of families that have reached self-
sufficiency, but you would not include information on specific job 
training and self-sufficiency courses.
    c. 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
    a. 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.
    b. Racial and Ethnic Data. HUD requires that funded recipients 
collect racial and ethnic beneficiary data. It has adopted the Office 
of Management and Budget's Standards for the Collection of Racial and 
Ethnic Data. In view of these requirements, you should use form HUD-
27061, Racial and Ethnic Data Reporting Form (instructions for its 
use), found on www.HUDClips.org, a comparable program form, or a 
comparable electronic data system for this purpose.
    c. 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 submission 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 or send an email message the Office of Public Housing 
Investments, attention: Lawrence Gnessin, at 202-401-8812, extension 
2676, <[email protected]> or attention: Leigh van Rij, at 202-
401-8812, extension 5788, <[email protected]> (these are not 
toll-free numbers). You may also 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 and General HOPE VI Information. 
Before the application submission 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.
    3. You may obtain general information about HUD's HOPE VI programs 
from HUD's HOPE VI website: http://www.hud.gov/offices/pih/programs/ph/hope6/.

B. Technical Corrections to the NOFA

    1. Technical corrections to this NOFA will be posted to the 
Grants.gov website.
    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.

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. General Section References. The following sub-sections of 
Section VIII. of the General Section are hereby incorporated by 
reference:
    1. Executive Order 13132, Federalism;
    2. Public Access, Documentation and Disclosure;
    4. Section 103 of the HUD Reform Act;
    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

[[Page 16593]]

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: March 24, 2005.
Michael Liu,
Assistant Secretary for Public and Indian Housing.
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[FR Doc. 05-6238 Filed 3-30-05; 8:45 am]
BILLING CODE 4210-33-C